Contract Assets and Deferred Revenue

6 Months Ended

Jul. 02, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

CONTRACT ASSETS AND DEFERRED REVENUEContract Balances. Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer.

Contract assets and deferred revenue consisted of the following:

	As of
(in thousands)	July 2, 2021		December 31, 2020
Contract assets	$	13,920	$	9,800
Deferred revenue	$	78,950	$	63,533

Contract assets and Deferred revenue (long-term) are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities,” respectively, on the Condensed Consolidated Balance Sheets.

During the three months ended July 2, 2021 and June 26, 2020, the Company recognized revenue of $8.6 million and $8.7 million, respectively, that was included in the deferred revenue balance at the beginning of each fiscal year. During the six months ended July 2, 2021 and June 26, 2020, the Company recognized revenue of $39.2 million and $26.7 million, respectively, that was included in the deferred revenue balance at the beginning of each fiscal year.

In July 2019, Comcast elected enterprise license pricing for the Company’s CableOS® software under certain existing commercial agreements between the Company and Comcast (the “CableOS software license agreement”), which also includes maintenance and support services, and material rights. As of July 2, 2021, the aggregate amount of the transaction price under this agreement allocated to the remaining performance obligations is $57.9 million, and the Company will recognize this revenue as the related performance obligations are delivered over the next 24 months.

Refer to Note 9, “Segment Information” for disaggregated revenue information.