Revenues

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenues

Note 18: Revenues

A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:

	2018
	Net contract liabilities, less contract assets
	(in thousands)
Beginning balance, January 1	$	59,808
Changes due to business combination	36,936
Revenues recognized from beginning contract liability	(32,821		)
Increases due to amounts collected or due	282,016
Revenues recognized from current period increases	(241,510		)
Other	(2,299		)
Ending balance, December 31	$	102,130

On January 1, 2018, total contract assets were $11.3 million and total contract liabilities were $71.1 million. On December 31, 2018, total contract assets were $34.3 million and total contract liabilities were $136.5 million. The contract assets primarily relate to contracts that include a retention clause and allocations related to contracts with multiple performance obligations. The contract liabilities primarily relate to deferred revenue, such as extended warranty and maintenance cost, and allocations related to contracts with multiple performance obligations. During the three months ended December 31, 2018, revenue recognized of $1.1 million was related to amounts that was included as a contract liability at January 1, 2018.

Transaction price allocated to the remaining performance obligations

Total transaction price allocated to remaining performance obligations represent committed but undelivered products and services for contracts and purchase orders at period end. Twelve-month remaining performance obligations represent the portion of total transaction price allocated to remaining performance obligations that we estimate will be recognized as revenue over the next 12 months. Total transaction price allocated to remaining performance obligations is not a complete measure of our future revenues as we also receive orders where the customer may have legal termination rights but are not likely to terminate.

Total transaction price allocated to remaining performance obligations related to contracts is approximately $1.2 billion for the next twelve months and approximately $885 million for periods longer than 12 months. The total remaining performance obligations is comprised of product and service components. The service component relates primarily to maintenance agreements for which customers pay a full year's maintenance in advance, and service revenues are generally recognized over the service period. Total transaction price allocated to remaining performance obligations also includes our extended warranty contracts, for which revenue is recognized over the warranty period, and hardware, which is recognized as units are delivered. The estimate of when remaining performance obligations will be recognized requires significant judgment.

Cost to obtain a contract and cost to fulfill a contract with a customer

Cost to obtain a contract and costs to fulfill a contract were capitalized and amortized using a systematic rational approached to align with the transfer of control of underlying contracts with customers. While amounts were capitalized, amounts are not material for disclosure.

Disaggregation of revenue

Refer to "Note 16: Segment Information" and the Consolidated Statements of Operations for disclosure regarding the disaggregation of revenue into categories which depict how revenue and cash flows are affected by economic factors. Specifically, our operating segments and geographical regions as disclosed, and categories for products, which include hardware and software and services as presented.

Impacts on financial statements

Under the modified retrospective transition method, we are required to provide additional disclosures during 2018 of the amount by which each financial statement line item is affected in the current reporting period, as compared with the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. The cumulative impact of adoption of ASC 606 and ASC 340-40 on our Consolidated Balance Sheets was a net decrease to accumulated deficit of $10.9 million as of January 1, 2018.

The effect of ASC 606 and Subtopic ASC 340-40 on our Consolidated Statements of Operations for the year ended December 31, 2018 was total revenue would have been $25.9 million lower under ASC 605. The difference in total revenue reflects the timing of revenue recognition due to the treatment of software license revenue under ASC 606 and other performance obligations that were satisfied but the right to consideration is conditional. The impact of the adoption was not material to the other lines in the Consolidated Statements of Operations.

The effects of ASC 606 and Subtopic ASC 340-40 on our Consolidated Balance Sheets as of December 31, 2018 were an impact to other current assets, unearned revenue, and accumulated deficit. Under ASC 605 other current assets would have been lower by $21.0 million. The difference in other current assets reflects the timing of satisfying performance obligations prior to invoicing, but the right to consideration is conditional. Total unearned revenue would have been higher by $22.2 million, of which, $8.9 million would have been classified as current. The difference in unearned revenue reflects the timing of revenue recognition related to certain of our customer contracts. The cumulative impact of ASC 606 as of December 31, 2018 was a net decrease to our accumulated deficit of $36.7 million.