Revenue Recognition

9 Months Ended

Sep. 27, 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				Nine-months Ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Americas	$	86,482	$	64,983	$	215,696	$	207,161
Europe	60,189		61,092		144,758		180,251
Greater China	77,292		30,624		135,593		89,256
Other Asia	27,110		26,626		91,358		79,188
	$	251,073	$	183,325	$	587,405	$	555,856

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

	Three-months Ended				Nine-months Ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Standard products and services	$	174,797	$	139,887	$	486,458	$	473,610
Application-specific customer solutions	76,276		43,438		100,947		82,246
	$	251,073	$	183,325	$	587,405	$	555,856

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 $12,708,000 and $3,963,000 as of September 27, 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 $0 and $600,000 for the three-month and nine-month periods ended September 27, 2020, respectively. The Company recorded credit losses on accounts receivable of $125,000 and $215,000 for the three-month and nine-month periods ended September 29, 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 nine-month period ended September 27, 2020 (in thousands):

Balance as of December 31, 2019	$	530
Increases to the allowance for credit losses	600
Write-offs	(217)
Balance as of September 27, 2020	$	913

The following table summarizes the deferred revenue and customer deposits activity for the nine-month period ended September 27, 2020 (in thousands):

Balance as of December 31, 2019	$	14,432
Increases to deferred revenue and customer deposits	93,830
Recognition of revenue	(75,023)
Foreign exchange rate changes	478
Balance as of September 27, 2020	$	33,717

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.