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REVENUE AND MAJOR CUSTOMERS
 3 Months Ended
Jul. 03, 2021
REVENUE AND MAJOR CUSTOMERS [Abstract]  
REVENUE AND MAJOR CUSTOMERS REVENUE AND MAJOR CUSTOMERS
The Company designs, builds, and markets collaboration solutions which combine legendary audio expertise and powerful video and conferencing capabilities to create endpoints that power meaningful human connections and provide solutions that make life easier when they work together and with our partner's services.

The Company’s major product categories are Headsets, Video, Voice, and Services. Headsets include wired and wireless communication headsets; Voice includes open SIP and native ecosystem desktop phones as well as conference room phones; Video includes video conferencing solutions and peripherals, such as cameras, speakers, and microphones. The broad portfolio of Services include video interoperability, hardware and support for our solutions and hardware devices, as well as professional, hosted, and managed services that are grounded in our deep expertise aimed at helping customers achieve their goals for collaboration. The Company's cloud management and analytics software enables IT administrators to configure and update firmware, monitor device usage, troubleshoot, and gain a deep understanding of user behavior. All of the Company's solutions are designed to integrate seamlessly with the platform and services of our customers choice in a wide range of Unified Communications & Collaboration ("UC&C"), Unified Communication as a Service ("UCaaS"), and Video as a Service ("VaaS") environments. The Company's RealPresence collaboration solutions range from infrastructure to endpoints and allow people to connect and collaborate globally, naturally, and seamlessly.

Product revenue is largely comprised of sales of hardware devices, peripherals, and platform software licenses used in communication and collaboration in offices and contact centers, with mobile devices, cordless phones, and computers. Services revenue primarily includes support on hardware devices, professional, hosted and managed services, and solutions to the Company's customers.

The following table disaggregates revenues by major product category for the three months ended July 3, 2021 and June 27, 2020:
Three Months Ended
(in thousands)July 3, 2021June 27, 2020
Net revenues
Headsets172,194 174,750 
   Voice61,298 45,821 
   Video137,711 70,887 
   Services59,969 64,262 
Total net revenues$431,172 $355,720 

For reporting purposes, revenue is attributed to each geographic region based on the location of the customer. Other than the U.S., no country accounted for 10% or more of the Company's total net revenues for the three months ended July 3, 2021 and June 27, 2020.

The following table presents total net revenues by geography:
Three Months Ended
(in thousands)July 3, 2021June 27, 2020
Net product revenues
U.S.$175,970 $144,289 
Europe, Middle East, and Africa111,460 77,618 
Asia Pacific58,270 45,431 
Americas, excluding U.S.25,503 24,120 
Total international net product revenues195,233 147,169 
Total net product revenues$371,203 $291,458 
Net service revenues
U.S.$22,758 $23,992 
Europe, Middle East, and Africa14,661 16,488 
Asia Pacific18,488 18,833 
Americas, excluding U.S.4,062 4,949 
Total international net service revenues37,211 40,270 
Total net service revenues$59,969 $64,262 
Total net revenues$431,172 $355,720 

Deferred revenue is primarily comprised of non-cancelable maintenance support performance obligations on hardware devices which are typically billed in advance and recognized ratably over the contract term as the services are delivered. As of July 3, 2021, the Company's deferred revenue balance was $207.6 million. As of April 3, 2021, the Company's deferred revenue balance was $213.8 million. During the three months ended July 3, 2021, the Company recognized $47.6 million in total net revenues that were recorded in deferred revenue at the beginning of the period.

The table below represents aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of July 3, 2021:
July 3, 2021
(in millions)CurrentNoncurrentTotal
Unsatisfied (or partially unsatisfied) performance obligations$136.4 $71.2 $207.6 

Sales, value add, and other taxes collected concurrently with revenue producing activities are excluded from revenue.
The Company's indirect channel model includes both a two-tiered distribution structure, where the Company sells to distributors that subsequently sell to resellers, and a one-tiered structure where the Company sells directly to resellers. For these arrangements, transfer of control begins at the time access to the Company's services is made available to the end customer and entitlements have been contractually established, provided all other criteria for revenue recognition are met.

Commercial distributors and retailers represent the Company's largest sources of net revenues. Sales through its distribution and retail channels are made primarily under agreements allowing for rights of return and include various sales incentive programs, such as back end rebates, discounts, marketing development funds, price protection, and other sales incentives. The Company has an established sales history for these arrangements and the Company records the estimated reserves at the inception of the contract as a reflection of the reduced transaction price. Customer sales returns are estimated based on historical data, relevant current data, and the monitoring of inventory build-up in the distribution channel. Revenue reserves represent a reasonable estimation made by management and are subject to significant judgment. Estimated reserves may differ from actual returns or incentives provided, due to unforeseen customer return or claim patterns or changes in circumstances. For certain customer contracts which have historically demonstrated variability, the Company has considered the likelihood of being under-reserved and has considered a constraint accordingly. Provisions for sales returns are presented within accrued liabilities in the Company's condensed consolidated balance sheets. Provisions for promotions, rebates, and other sales incentives are presented as a reduction of accounts receivable unless there is no identifiable right offset, in which case they are presented within accrued liabilities on its condensed consolidated balance sheets. See Note 5, Details of Certain Balance Sheet Accounts, for additional details.

For certain arrangements, the Company pays commissions, bonuses and taxes associated with obtaining the contracts. The Company capitalizes such costs if they are deemed to be incremental and recoverable. The Company has elected to use the practical expedient to record the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Determining the amortization period of costs related to obtaining a contract involves judgment. Capitalized commissions and related expenses on hardware sales and services recognized at a point in time generally have an amortization period of less than one year. Maintenance-related performance obligations generally have an amortization period greater than one year when considering renewals. Capitalized commissions are amortized to selling, general, and administrative expense on a straight-line basis. The capitalized amount of incremental and recoverable costs of obtaining contracts with a related amortization period greater than one year are was not material as of and for the three months ended July 3, 2021.