Contract Balances

3 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

8.	Contract Balances

Contract assets are primarily comprised of unbilled receivables in which revenue has been recognized but our right to consideration is conditional on factors other than the passage of time. Contract assets exclude billed and billable receivables.

The incremental costs of obtaining a contract (e.g. sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins. These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance. Contract assets are not stated above their net realizable value.

Contract liabilities are primarily comprised of advance payments in which consideration is received in advance of satisfying a performance obligation. The advance payment is subsequently recognized into revenue as the performance obligation is satisfied.

Net contract assets (liabilities) consisted of the following (in thousands):

		September 30,			June 30,
Description of Contract Related Balance	Financial Statement Classification	2019			2019
Contract assets – current:
Unbilled receivables	Accounts receivable, net	$	103,860		$	90,073
Costs to obtain – short-term	Prepaid expenses and other current assets		2,786			2,685
Contract assets – noncurrent:
Unbilled receivables	Accounts receivable, long-term		7,730			7,381
Costs to obtain – long-term	Other long-term assets		5,927			5,353
Contract liabilities – current:
Deferred revenue and other contract liabilities – short-term	Other accrued expenses and current liabilities		(71,216	)		(55,667	)
Contract liabilities – noncurrent:
Deferred revenue and other contract liabilities – long-term	Other long-term liabilities		(7,247	)		(7,445	)
Net contract assets (liabilities)		$	41,840		$	42,380

During the three months ended September 30, 2019 and 2018, we recognized $25.7 million and $17.1 million of revenue, respectively, that was included in a previously recorded contract liability as of the beginning of the period.