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Net Sales
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Net Sales

8. Net Sales

Disaggregated Net Sales

We primarily derive our revenues from the sales of various chemical products. The Company’s net sales disaggregation is consistent with other financial information utilized or provided outside of our condensed consolidated financial statements. With our continued focus on optimizing our commercial strategy and product mix going forward we will report revenue by product as opposed to the end market. Accordingly, this approach is reflected in disaggregated net sales, mirroring how the Company manages its net sales by product through contracts with customers.

The following table presents our net sales disaggregated by our principal product types:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

AN & Nitric Acid

 

$

69,561

 

 

$

96,142

 

 

$

127,833

 

 

$

167,942

 

Urea ammonium nitrate (UAN)

 

 

40,905

 

 

 

76,986

 

 

 

87,495

 

 

 

133,555

 

Ammonia

 

 

39,612

 

 

 

89,444

 

 

 

103,027

 

 

 

148,786

 

Other

 

 

15,767

 

 

 

22,231

 

 

 

28,454

 

 

 

33,501

 

Total net sales

 

$

165,845

 

 

$

284,803

 

 

$

346,809

 

 

$

483,784

 

Other Information

Although most of our contracts have an original expected duration of one year or less, for our contracts with a duration greater than one year at contract inception, the average remaining expected duration was approximately 29 months at June 30, 2023.

Liabilities associated with contracts with customers (contract liabilities) primarily relate to deferred revenue and customer deposits associated with cash payments received in advance from customers for volume shortfall charges and product shipments. We had approximately $0.7 million and $2.0 million of contract liabilities as of June 30, 2023 and December 31, 2022, respectively. For the three and six months ended June 30, 2023, revenues of $3.2 million and $1.5 million, respectively, were recognized and included in the balance at the beginning of the respective period. For the three and six months ended June 30, 2022, revenues of $1.5 million and $1.4 million, respectively, were recognized and included in the balance at the beginning of the respective period.

For most of our contracts with customers, the transaction price from the inception of a contract is constrained to a short period of time (generally one month) as these contracts contain terms with variable consideration related to both price and quantity. At June 30, 2023, we have remaining performance obligations with certain customer contracts, excluding contracts with original durations of less than one year and for service contracts for which we have elected the practical expedient for consideration recognized in revenue as invoiced. The remaining performance obligations totals approximately $84.3 million, of which approximately 56% of this amount relates to 2023 through 2025, approximately 28% relates to 2026 through 2027, with the remainder thereafter.