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Net Sales
 3 Months Ended
Mar. 31, 2024
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

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

(In Thousands)

 

Net sales:

 

 

 

 

 

 

AN & Nitric Acid

 

$

48,435

 

 

$

58,272

 

Urea ammonium nitrate (UAN)

 

 

41,192

 

 

 

46,590

 

Ammonia

 

 

39,530

 

 

 

63,415

 

Other

 

 

9,047

 

 

 

12,687

 

Total net sales

 

$

138,204

 

 

$

180,964

 

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 34 months at March 31, 2024.

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 product shipments. We had approximately $2.4 million and $1.0 million of contract liabilities as of March 31, 2024 and December 31, 2023, respectively. For the three months ended March 31, 2024 and 2023, revenues of $0.1 million and $0.6 million, respectively, were recognized and included in the balances as of December 31, 2023 and 2022. Our contract assets consists of unconditional rights to payment from our customers, which are reflected as accounts receivable in our condensed consolidated balance sheets.

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 March 31, 2024, 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 $72.6 million, of which approximately 65% of this amount relates to 2024 through 2026, approximately 19% relates to 2027 through 2028, with the remainder thereafter.