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.

		December 31,			June 30,
Description of Contract Related Balance	Financial Statement Classification	2020			2020
Contract assets – current:
Unbilled receivables	Accounts receivable, net	$	79,282		$	61,888
Costs to obtain – short-term	Prepaid expenses and other current assets		3,692			3,492
Contract assets – noncurrent:
Unbilled receivables	Accounts receivable, long-term		11,248			9,629
Costs to obtain – long-term	Other long-term assets		8,658			7,708
Contract liabilities – current:
Deferred revenue and other contract liabilities – short-term	Other accrued expenses and current liabilities		(68,773	)		(57,082	)
Contract liabilities – noncurrent:
Deferred revenue and other contract liabilities – long-term	Other long-term liabilities		(6,585	)		(6,507	)
Net contract assets (liabilities)		$	27,522		$	19,128

During the three and six months ended December 31, 2020, we recognized $19.4 million and $52.9 million of revenue, respectively, compared with $12.1 million and $38.7 million of revenue for the three and six months ended December 31, 2019, respectively, that was included in a previously recorded contract liability as of the beginning of the period.