CONTRACT ASSETS AND DEFERRED REVENUE

3 Months Ended

Mar. 29, 2024

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)	March 29, 2024		December 31, 2023
Contract assets	$	4,380	$	4,772
Deferred revenue	$	64,694	$	59,705

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.

The amount of revenues recognized during the three months ended March 29, 2024 and March 31, 2023 that were included in the opening deferred revenue balance as of January 1, 2024 and 2023, respectively, were $16.3 million and $21.2 million.

Remaining performance obligations represent contracted revenues that have not yet been recognized and include deferred revenue and unbilled amounts that will be recognized as revenue in the future. The aggregate balance of the Company’s remaining performance obligations as of March 29, 2024 was $677.8 million, 54% of which 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.