CONTRACT BALANCES

12 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

NOTE 12. CONTRACT BALANCES

Contract assets are primarily comprised of conditional unbilled receivables in which revenue has been recognized but an invoice has not yet been issued to the customer as of the balance sheet date. Contract assets exclude billed and billable receivables and are not stated above their net realizable value.

Contract liabilities are primarily comprised of advance payments in which consideration is received in advance of satisfying a performance obligation.

Net contract assets (liabilities) consisted of the following (in thousands):

Description of Contract Related Balance	Financial Statement Classification	June 30, 2019			July 1, 2018 (1)
Contract assets – current:
Unbilled receivables	Accounts receivable, net	$	90,073		$	72,511
Costs to obtain – short-term	Prepaid expenses and other current assets		2,685			2,342
Contract assets – noncurrent:
Unbilled receivables	Accounts receivable, long-term		7,381			8,620
Costs to obtain – long-term	Other long-term assets		5,353			3,923
Contract liabilities – current:
Deferred revenue and other contract liabilities	Other accrued expenses and current liabilities		(55,667	)		(43,940	)
Contract liabilities – noncurrent:
Deferred revenue and other contract liabilities	Other long-term liabilities		(7,445	)		(4,740	)
Net contract assets (liabilities)		$	42,380		$	38,716

(1)

Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method.

During FY2019, we recognized $35.5 million that was included in a previously recorded contract liability as of the beginning of the period.