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Revenue
6 Months Ended
Jul. 03, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Wafer Services Contract
In March 2022, we signed a new contract with a significant wafer services customer. Under the contract, orders are non-cancellable and we have an enforceable right to complete the orders and to payment for any finished or in-process wafers plus a reasonable margin. The wafers produced for that customer are highly customized and have no alternative use to us. Control of these wafers is deemed to transfer to the customer over time during the fabrication process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. Consequently, the transaction price is recognized as revenue over time based on actual costs incurred in the fabrication process to date relative to total expected costs to produce all wafers beginning in March 2022. The contract terms and pricing is applicable to all in-process and future wafers. We recorded revenue of $8,230 in the first six months of 2022 to account for recognition of wafer services activities in process at the date the contract was signed.
Disaggregated Revenue
The following table discloses revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers:
Three Months Ended July 3, 2022
Topic 606 Revenue
Point-in-TimeOver TimeLease RevenueTotal Revenue
Wafer Services$3,519 $14,065 $— $17,584 
Advanced Technology Services
T&M— 20,000 — 20,000 
Fixed Price— 8,656 — 8,656 
Other— — 1,167 1,167 
Total Advanced Technology Services— 28,656 1,167 29,823 
Total revenue$3,519 $42,721 $1,167 $47,407 
 Three Months Ended July 4, 2021
Topic 606 Revenue
 Point-in-TimeOver TimeLease RevenueTotal Revenue
Wafer Services$14,312 $— $— $14,312 
Advanced Technology Services
T&M— 10,692 — 10,692 
Fixed Price— 15,018 — 15,018 
Other— — 1,167 1,167 
Total Advanced Technology Services— 25,710 1,167 26,877 
Total revenue$14,312 $25,710 $1,167 $41,189 
Six Months Ended July 3, 2022
Topic 606 Revenue
Point-in-TimeOver TimeLease RevenueTotal Revenue
Wafer Services$16,724 $22,406 $— $39,130 
Advanced Technology Services
T&M— 38,908 — 38,908 
Fixed Price— 15,156 — 15,156 
Other— — 2,334 2,334 
Total Advanced Technology Services— 54,064 2,334 56,398 
Total revenue$16,724 $76,470 $2,334 $95,528 
Six Months Ended July 4, 2021
Topic 606 Revenue
Point-in-TimeOver TimeLease RevenueTotal Revenue
Wafer Services$24,331 $— $— $24,331 
Advanced Technology Services
T&M— 21,484 — 21,484 
Fixed Price— 41,141 — 41,141 
Other— — 2,334 2,334 
Total Advanced Technology Services— 62,625 2,334 64,959 
Total revenue$24,331 $62,625 $2,334 $89,290 
The following table discloses revenue by country as determined based on customer address:
Three Months EndedSix Months Ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
United States$38,550 $36,612 $80,908 $80,233 
United Kingdom1,443 2,367 3,224 4,453 
Canada1,864 1,547 3,534 3,156 
All others5,550 663 7,862 1,448 
$47,407 $41,189 $95,528 $89,290 
Deferred Contract Costs
We recognized amortization of deferred contract costs in our condensed consolidated statements of operations totaling $399 and $426 for the three months ended July 3, 2022 and July 4, 2021, respectively, and $594 and $977 for the six months ended July 3, 2022 and July 4, 2021, respectively.
Contract Assets
Contract assets are $26,005 and $16,303 at July 3, 2022 and January 2, 2022, respectively, and are included in accounts receivable, net in our condensed consolidated balance sheets. The contract assets balance at July 3, 2022 includes the impact from the new wafer services contract described above, in which we recorded revenue and contract assets of $8,230 for in-process wafers.
Contract Liabilities
The contract liabilities and other significant components of deferred revenue are as follows:
 July 3, 2022January 2, 2022
Contract
Liabilities
Deferred
Lease Revenue
Total
Deferred Revenue
Contract
Liabilities
Deferred
Lease Revenue
Total
Deferred Revenue
Current$19,673 $4,666 $24,339 $16,141 $4,667 $20,808 
Long-term70,448 8,944 79,392 76,816 11,278 88,094 
Total$90,121 $13,610 $103,731 $92,957 $15,945 $108,902 
The decrease in contract liabilities from January 2, 2022 to July 3, 2022 was primarily the result of completion of specific performance obligations for our customers. Approximately 8% of our total contract liabilities at January 2, 2022 were recognized in revenue in the first six months of 2022. Approximately 20% of our total contract liabilities at January 3, 2021 were recognized in revenue in the first six months of 2021.
Remaining Performance Obligations
As of July 3, 2022, we had approximately $88,521 of transaction price allocated to remaining performance obligations that are unsatisfied (or partially satisfied) on contracts with an original expected duration of one year or more, which are primarily related to Advanced Technology Services contracts. We expect to recognize those remaining performance obligations as follows:
Within one year$18,074 
From one to two years16,483 
From two to three years11,394 
After three years42,570 
Total$88,521 
We do not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. Further, we do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less.