Revenue Recognition

3 Months Ended

Apr. 02, 2023

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
	April 2, 2023		April 3, 2022
Americas	$	80,442	$	126,658
Europe	59,842		62,792
Greater China	33,172		48,406
Other Asia	27,668		44,551
	$	201,124	$	282,407

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

	Three-months Ended
	April 2, 2023		April 3, 2022
Standard products and services	$	190,783	$	257,880
Application-specific customer solutions	10,341		24,527
	$	201,124	$	282,407

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 $20,219,000 and $14,578,000 as of April 2, 2023 and December 31, 2022, 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 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.

The following table summarizes the allowance for credit losses activity for the three-month period ended April 2, 2023 (in thousands):

Balance as of December 31, 2022	$	730
Increases to the allowance for credit losses	350
Write-offs, net of recoveries	(78)
Foreign exchange rate changes	(1)
Balance as of April 2, 2023	$	1,001

The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended April 2, 2023 (in thousands):

Balance as of December 31, 2022	$	40,787
Deferral of revenue billed in the current period, net of recognition	34,786
Recognition of revenue deferred in prior period	(8,578)
Returned customer deposit	(9,205)
Foreign exchange rate changes	15
Balance as of April 2, 2023	$	57,805

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.