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Contract Balances | 9 Months Ended
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Sep. 30, 2018
Contract With Customer Asset And Liability [Abstract] |
Contract Balances | (4) Contract Balances The Company invoices its customers in accordance with billing schedules established in each contract. The Company’s rights to consideration from customers are presented separately in the Company’s Consolidated Balance Sheets depending on whether those rights are conditional or unconditional. The Company presents unconditional rights to consideration from customers within “Accounts receivable, net” in its Consolidated Balance Sheets. All of the Company’s contracts are generally non-cancellable and/or non-refundable and therefore an unconditional right generally exists when the customer is billed or amounts are billable per the contract. Accounts receivable (in thousands) consisted of the following, as of:
|  | September 30, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
|  |  |  |  |  | (as adjusted) |
Billed and billable |  | $ | 114,483 |  |  | $ | 169,554 |
Less: allowance for doubtful accounts |  |  | (3,722 | ) |  |  | (4,190 | )
Accounts receivable, net |  | $ | 110,761 |  |  | $ | 165,364 |
The Company maintains an allowance for doubtful accounts which represents its best estimate of probable losses inherent in the accounts receivable balances. The Company evaluates specific accounts when it becomes aware that a customer may not be able to meet its financial obligations due to deterioration of its liquidity or financial viability, credit ratings, or bankruptcy. In addition, the Company periodically adjusts this allowance based on its review and assessment of the aging of receivables. For the three and nine months ended September 30, 2018 and 2017, the Company’s bad debt expense and write-offs (reversals) totaled $0.1 million and $1.1 million, and $(0.1) million and $1.7 million, respectively. In contrast, rights to consideration that are subject to a condition other than the passage of time are considered contract assets and presented within “Prepaid expenses and other current assets” in the Consolidated Balance Sheets since the rights to consideration are expected to become unconditional and transfer to accounts receivable within one year. Contract assets generally consist of accrued sales and usage-based royalty revenue. In these arrangements, consideration is not billed or billable until the royalty reporting is received, generally in the subsequent quarter, at which time the contract asset will transfer to accounts receivable and a true-up adjustment will be recorded to revenue. During the three and nine months ended September 30, 2018 and 2017, there were no significant impairments to the Company’s contract assets, nor were there any significant changes in the timing of the Company’s contract assets being reclassified to accounts receivable. Contract assets included in “Prepaid expenses and other current assets” in the Consolidated Balance Sheets consisted of $0.4 million and $1.2 million in accrued sales and usage-based royalty revenue, as of September 30, 2018 and December 31, 2017, respectively. Contract liabilities are amounts received or due from customers in advance of the Company transferring the products or services to the customer. Revenue is subsequently recognized in the period(s) in which control of the products or services are transferred to the customer. The Company’s contract liabilities are presented as either current or non-current “Deferred revenues and advance payments” in the Consolidated Balance Sheets, depending on whether the products or services are expected to be transferred to the customer within the next year. Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of:
|  | September 30, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
|  |  |  |  |  | (as adjusted) |
Current: |  |  |  |  |  |  |  |
Deferred product licenses revenue |  | $ | 584 |  |  | $ | 3,760 |
Deferred subscription services revenue |  |  | 11,736 |  |  |  | 17,324 |
Deferred product support revenue |  |  | 131,185 |  |  |  | 168,185 |
Deferred other services revenue |  |  | 7,538 |  |  |  | 9,465 |
Total current deferred revenue and advance payments |  | $ | 151,043 |  |  | $ | 198,734 |
Non-current: |  |  |  |  |  |  |  |
Deferred product licenses revenue |  | $ | 730 |  |  | $ | 820 |
Deferred subscription services revenue |  |  | 0 |  |  |  | 126 |
Deferred product support revenue |  |  | 3,701 |  |  |  | 4,826 |
Deferred other services revenue |  |  | 492 |  |  |  | 628 |
Total non-current deferred revenue and advance payments |  | $ | 4,923 |  |  | $ | 6,400 |
During the three and nine months ended September 30, 2018 and 2017, the Company recognized revenues of $39.2 million and $170.6 million, and $40.4 million and $170.9 million, respectively, from amounts included in the total current deferred revenue and advance payments balances at the beginning of the respective year. For the three and nine months ended September 30, 2018 and 2017, there were no significant changes in the timing of revenue recognition on the Company’s deferred balances. As of September 30, 2018, the Company had an aggregate transaction price of $156.0 million allocated to unsatisfied performance obligations related to product support, subscription services, other services, and product licenses contracts. The Company expects to recognize $151.0 million within the next year and $4.9 million thereafter.

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- Definition Disclosure of contract with customer asset and liability. + References No definition available. + Details
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- References No definition available. + Details
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