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Deferred Revenue and Other Contract Liabilities | 6 Months Ended
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Jun. 29, 2019
Revenue Recognition and Deferred Revenue [Abstract] |
Deferred Revenue and Other Contract Liabilities | 13. Deferred Revenue and Other Contract Liabilities Deferred revenue and other contract liabilities consist of the following (in thousands):
| June 29, 2019 |  | December 29, 2018
Deferred revenue(1) | $ | 13,825 |  |  | $ | 10,883 |
Accrued rebates and incentives | 7,054 |  |  | 6,282 |
Accrued customer reimbursements(2) | 4,515 |  |  | 16,194 |
Other contract-related liabilities | 606 |  |  | 432 |
Total deferred revenue and other contract-related liabilities | 26,000 |  |  | 33,791 |
Less: Non-current portion of deferred revenue | (126 | ) |  | (685 | )
Deferred revenue and other contract-related liabilities - current | $ | 25,874 |  |  | $ | 33,106 |
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(1) | In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded a reduction to deferred revenue of approximately $1.1 million due to the acceleration of revenue as a result of the reclassification of certain embedded leases within the Company’s deferred equipment agreements with its customers from operating to sales-type leases. See “Recently Adopted Accounting Pronouncements” to these condensed consolidated financial statements for additional information related to the Company’s adoption of ASC 842.
(2) | In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded a reduction to accrued customer reimbursements of approximately $12.3 million related to the derecognition of liabilities and leased equipment assets related to certain OEM equipment reimbursements. See “Recently Adopted Accounting Pronouncements” to these condensed consolidated financial statements for additional information related to the Company’s adoption of ASC 842.
Deferred revenue relates to contracted amounts that have been invoiced to customers for which remaining performance obligations must be completed before the Company can recognize the revenue. These amounts primarily relate to undelivered equipment, sensors and services under deferred equipment agreements, extended warranty agreements and NRE service agreements. Changes in deferred revenue for the six months ended June 29, 2019 were as follows:
| Six Months Ended June 29, 2019
Deferred revenue, beginning of the period | $ | 10,883 |
Revenue deferred during the period | 5,780 |
Recognition of revenue deferred in prior periods | (2,838 | )
Deferred revenue, end of the period | $ | 13,825 |
Expected revenue from remaining contractual performance obligations (Unrecognized Contract Revenue) includes deferred revenue, as well as other amounts that will be invoiced and recognized as revenue in future periods, when the Company completes its performance obligations. While Unrecognized Contract Revenue is similar in concept to backlog, Unrecognized Contract Revenue excludes revenue allocable to monitoring-related equipment that is effectively leased to hospitals under deferred equipment agreements and other contractual obligations for which neither party has performed. The following table summarizes the Company’s estimated Unrecognized Contract Revenue as of June 29, 2019 and the future periods within which the Company expects to recognize such revenue.
| Expected Future Revenue By Period (in thousands)
| Less than 1 year |  | Between 1-3 years |  | Between 3-5 years |  | More than 5 years |  | Total
Unrecognized Contract Revenue | $ | 211,727 |  |  | $ | 278,572 |  |  | $ | 121,698 |  |  | $ | 27,316 |  |  | $ | 639,313 |
The estimated timing of this revenue is based, in part, on management’s estimates and assumptions about when its performance obligations will be completed. As a result, the actual timing of this revenue in future periods may vary, possibly materially, from those reflected in this table.

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- Definition The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 430 -URI http://asc.fasb.org/topic&trid=2122452 + Details
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