Deferred Revenue

3 Months Ended

Mar. 29, 2020

Revenue from Contract with Customer [Abstract]

Deferred revenue consists of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Deferred revenue primarily consists of prepaid services and customer billings in advance of revenues being recognized from the Company's subscription contracts.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods and services for which customer purchase orders have been accepted and that are scheduled or in the process of being scheduled for shipment.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 29, 2020:



	1 year		2 years		Greater than 2 years		Total
	(In thousands)
Performance obligations	$	59,916	$	10,258	$	3,120	$	73,294

The majority of the performance obligation classified as greater than one year pertains to revenue deferral from prepaid services.

For the three months ended March 29, 2020 and March 31, 2019, $8.6 million and $9.2 million of revenue was deferred due to unsatisfied performance obligations, primarily relating to over time service revenue, and $14.9 million and $11.5 million of revenue was recognized for the satisfaction of performance obligations over time, respectively. $8.7 million and $8.6 million of this recognized revenue was included in the contract liability balance at the beginning of the period. There were no significant changes in estimates during the period that would affect the contract balances.

Disaggregation of Revenue

The Company conducts business across three geographic regions: Americas, EMEA, and APAC. Sales and usage-based taxes are excluded from revenue. Refer to Note 14, Segment and Geographic Information, for revenue by geography.