Deferred Revenues

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Deferred Revenues

5. Deferred Revenues

We record deferred revenues when cash payments are received or due in advance of the fulfillment of our associated performance obligations. The aggregate of the current and non-current balances of deferred revenues as of March 31, 2023 and December 31, 2022, were $1.7 billion and $2.1 billion, respectively. For the three months ended March 31, 2023, the additions to our deferred revenues balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenues balance were primarily due to the recognition of revenues upon fulfillment of our performance obligations, which were in the ordinary course of business. During the three months ended March 31, 2023 and March 31, 2022, $1.3 billion and $0.7 billion, respectively, of revenues were recognized that were included in the deferred revenues balance at the beginning of the period.

As of March 31, 2023, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations was $1.8 billion, which included our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.8 billion over the next 12 months. This balance did not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee or any estimated amounts of variable consideration that are subject to constraint in accordance with the revenue accounting standard.