CONTRACT ASSETS AND DEFERRED REVENUE

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

CONTRACT ASSETS AND DEFERRED REVENUE

CONTRACT ASSETS AND DEFERRED REVENUE

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)	September 30, 2022		December 31, 2021
Contract assets	$	5,378	$	8,101
Deferred revenue	$	76,563	$	78,167

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

Revenue recognized during the three months ended September 30, 2022 and October 1, 2021, that was included in the deferred revenue balances at December 31, 2021 and 2020 was $7.9 million and $8.2 million, respectively. Revenue recognized during the nine months ended September 30, 2022 and October 1, 2021, that was included in the deferred revenue balances at December 31, 2021 and 2020, was $42.7 million and $47.3 million, respectively.

Remaining performance obligations represent contracted revenues that had not yet been recognized and future revenue recognition is expected. The aggregate balance of the Company’s remaining performance obligations as of September 30, 2022 was $504.3 million, of which approximately 81% is expected to be recognized as revenue over the next 12 months and the remainder thereafter.

Refer to Note 11, “Segment Information” for disaggregated revenue information.