Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Deferred Revenue and Customer Deposits

Deferred revenue and customer deposits as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands):

	September 30, 2020		December 31, 2019
Deferred revenue	$	150,144	$	168,223
Deferred incentive revenue	6,900		7,397
Customer deposits	42,019		39,101
Deferred revenue and customer deposits	$	199,063	$	214,721

Deferred revenue activity during the three and nine months ended September 30, 2020 and 2019 consisted of the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
			As Restated				As Restated
Beginning balance	$	162,186	$	157,986	$	168,223	$	140,130
Additions	166,398		190,168		463,652		497,665
Revenue recognized	(178,440)		(198,792)		(481,731)		(488,433)
Ending balance	$	150,144	$	149,362	$	150,144	$	149,362

Deferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as of the end of the period. The significant component of deferred revenue at the end of the period consists of performance obligations relating to the provision of maintenance services under current contracts and future renewal periods. These obligations provide customers with material rights over a period that we estimate will be largely commensurate with the period of their expected use of the associated Energy Server. As a result, we expect to recognize these amounts as revenue over a period of up to 21 years, predominantly on a cost-to-cost basis that reflects the cost of providing these services. Deferred revenue also includes performance obligations relating to product acceptance and installation. A significant amount of this deferred revenue is reflected as additions and revenue recognized in the same period and we expect to recognize all amounts within a year. The three and nine months ended September 30, 2020 included $14.2 million of previously deferred revenue that was recognized as revenue in the quarter that was not associated with acceptances or service in the quarter. This was a one-time recognition of deferred revenue related to a specific contract that changed scope.

Revenue by source

We disaggregate revenue from contracts with customers into four revenue categories: (i) product, (ii) installation, (iii) services, and (iv) electricity (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
			As Restated				As Restated
Revenue from contracts with customers:
Product revenue	$	131,076	$	163,902	$	346,832	$	398,909
Installation revenue	26,603		21,102		73,060		46,397
Services revenue	26,141		23,665		77,496		70,158
Electricity revenue	—		—		—		10,840
Total revenue from contract with customers	183,819		208,669		497,388		526,304
Revenue from contracts accounted for as leases:
Electricity revenue	16,485		15,638		47,472		45,330
Total revenue	$	200,305	$	224,307	$	544,860	$	571,634