XML 51 R12.htm IDEA: XBRL DOCUMENT v3.20.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contract Balances
The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract assets, current; contract assets, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands):
Accounts receivable, netContract assets, currentContract assets, non-currentDeferred revenue, currentDeferred revenue, non-current
Beginning balances as of January 1, 2020$689,134 $10,033 $31,521 $76,193 $46,555 
Closing balances as of December 31, 2020676,738 13,534 54,050 101,258 71,242 
Increase/(decrease)$(12,396)$3,501 $22,529 $25,065 $24,687 
Beginning balances as of January 1, 2019$630,119 $9,778 $16,396 $73,143 $46,641 
Closing balances as of December 31, 2019689,134 10,033 31,521 76,193 46,555 
Increase/(decrease)$59,015 $255 $15,125 $3,050 $(86)

The difference between the opening and closing balances of the Company's accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of the Company's performance obligation and the customer's payment, as well as business combinations closed during the years ended December 31, 2020 and 2019. The amounts of revenue recognized during the years ended December 31, 2020, 2019 and 2018 from the opening deferred revenue balance were $87.0 million, $87.3 million and $81.8 million, respectively. For the years ended December 31, 2020, 2019 and 2018, no impairment loss related to contract balances was recognized in the consolidated statement of operations.
Contract Costs
The ending balances of net capitalized contract costs as of December 31, 2020 and 2019 were $268.0 million and $229.2 million, respectively, which were included in other assets in the consolidated balance sheet. $85.4 million, $72.9 million, and $73.1 million of contract costs were amortized during years ended December 31, 2020, 2019, and 2018, respectively, which were included in sales and marketing expense in the consolidated statement of operations.
Remaining performance obligations
As of December 31, 2020, approximately $8.4 billion of total revenues, including deferred installation revenues are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months. While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power, service fees from xScaleTM data centers, which are calculated based on future events or actual costs incurred in the future, or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where the Company is considered the lessor.