Revenue Recognition

6 Months Ended

Jun. 28, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):

	Three-months Ended				Six-months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Americas	$	68,966	$	77,408	$	129,214	$	142,178
Europe	35,987		59,620		84,569		119,158
Greater China	31,898		35,816		58,301		58,632
Other Asia	32,246		26,203		64,248		52,563
	$	169,097	$	199,047	$	336,332	$	372,531

The following table summarizes disaggregated revenue information by revenue type (in thousands):

	Three-months Ended				Six-months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Standard products and services	$	158,807	$	173,368	$	311,662	$	334,420
Application-specific customer solutions	10,290		25,679		24,670		38,111
	$	169,097	$	199,047	$	336,332	$	372,531

Costs to Fulfill a Contract

Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $10,888,000 and $3,963,000 as of June 28, 2020 and December 31, 2019, respectively.

Accounts Receivable, Contract Assets, and Contract Liabilities

Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains an allowance against its accounts receivable for potential credit losses. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition.

On January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments,” using the modified-retrospective approach, which requires the Company to apply the standard on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the guidance is effective. The Company did not record an adjustment to retained earnings as this ASU did not have a material impact on the Company's consolidated allowance for credit losses.

The Company recorded credit losses on accounts receivable of $300,000 and $600,000 for the three-month and six-month periods ended June 28, 2020, respectively. The Company recorded credit losses on accounts receivable of $90,000 for the three-month and six-month periods ended June 30, 2019. The Company's estimate of expected credit losses takes into account the deteriorating global economic conditions from the COVID-19 pandemic.

The following table summarizes the allowance for credit losses activity for the six-month period ended June 28, 2020 (in thousands):

Balance as of December 31, 2019	$	530
Increases to the allowance for credit losses	600
Write-offs	(186)
Foreign exchange rate changes	1
Balance as of June 28, 2020	$	945

The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended June 28, 2020 (in thousands):

Balance as of December 31, 2019	$	14,432
Increases to deferred revenue and customer deposits	57,904
Recognition of revenue	(25,493)
Foreign exchange rate changes	(105)
Balance as of June 28, 2020	$	46,738

As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year.