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Incremental Costs to Obtain a Contract with a Customer
9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Incremental Costs to Obtain a Contract with a Customer Incremental Costs to Obtain a Contract with a Customer
The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of September 30, 2022 and December 31, 2021 (in thousands):

September 30,
2022
December 31,
2021
Deferred costs included in prepaid expenses and other current assets$34,619 $43,562 
Deferred costs included in other assets24,949 30,436 
Total deferred costs$59,568 $73,998 

The following table summarizes additional information related to incremental costs to obtain a contract with a customer for the three and nine months ended September 30, 2022 and 2021 (in thousands):

 For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2022202120222021
Amortization expense related to deferred costs
$12,498 $14,901 $40,670 $43,304 
Incremental costs capitalized
9,733 13,164 30,486 36,957 

Amortization expense related to deferred costs is primarily included in sales and marketing expense in the condensed consolidated statements of income.
Revenue from Contracts with Customers
The Company sells its solutions through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue by geography included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 (in thousands):

For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2022202120222021
U.S.$461,087 $448,792 $1,419,248 $1,361,525 
International420,809 411,541 1,269,627 1,194,340 
Total revenue$881,896 $860,333 $2,688,875 $2,555,865 

The Company reports its revenue in three solution categories: security, delivery and compute. Prior to January 1, 2022, revenue by solution was reported by product group: Security Technology Group and Edge Technology Group. Revenue from security solutions was previously presented as Security Technology Group revenue and revenue from delivery and compute solutions was previously presented as Edge Technology Group revenue. The periods presented prior to January 1, 2022 have been revised to reflect this new presentation. Security includes solutions that are designed to protect business online by keeping infrastructure, websites, applications and users safe. Delivery includes solutions that are designed to enable business online, including media delivery and web performance. Compute includes cloud computing, edge applications, cloud optimization and storage. The following table summarizes revenue by solution category included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 (in thousands):

For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2022202120222021
Security$379,509 $334,649 $1,141,740 $969,996 
Delivery393,248 462,068 1,254,074 1,402,476 
Compute109,139 63,616 293,061 183,393 
Total revenue$881,896 $860,333 $2,688,875 $2,555,865 

Most security, delivery and compute services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly usage commitments that expire each period. Any usage over a given commitment is recognized in the period in which the units are served. A small percentage of the Company's contracts are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation.

During the nine months ended September 30, 2022 and 2021, the Company recognized $95.9 million and $72.2 million of revenue that was included in deferred revenue as of December 31, 2021 and 2020, respectively.

As of September 30, 2022, the aggregate amount of remaining performance obligations from contracts with customers was $3.2 billion. The Company expects to recognize approximately 65% of its remaining performance obligations as revenue over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. Revenue recognized during each of the nine months ended September 30, 2022 and 2021, related to performance obligations satisfied in previous periods was not material.