Revenue Recognition

6 Months Ended

Jul. 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				Six-months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Americas	$	82,297	$	91,551	$	162,911	$	218,210
Europe	56,860		61,840		116,702		124,631
Greater China	72,351		78,616		105,351		127,021
Other Asia	31,004		42,621		58,672		87,173
	$	242,512	$	274,628	$	443,636	$	557,035

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

	Three-months Ended				Six-months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Standard products and services	$	194,944	$	221,474	$	385,727	$	479,354
Application-specific customer solutions	47,568		53,154		57,909		77,681
	$	242,512	$	274,628	$	443,636	$	557,035

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 $18,951,000 and $14,578,000 as of July 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 six-month period ended July 2, 2023 (in thousands):

Balance as of December 31, 2022	$	730
Increases to the allowance for credit losses	350
Write-offs, net of recoveries	(477)
Foreign exchange rate changes	(1)
Balance as of July 2, 2023	$	602

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

Balance as of December 31, 2022	$	40,787
Deferral of revenue billed in the current period, net of recognition	26,719
Recognition of revenue deferred in prior period	(14,154)
Returned customer deposit	(9,205)
Foreign exchange rate changes	(708)
Balance as of July 2, 2023	$	43,439

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.