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REVENUE RECOGNITION | 9 Months Ended
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Sep. 30, 2019
Revenue From Contract With Customer [Abstract] |
REVENUE RECOGNITION |
18. | REVENUE RECOGNITION:
The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer. The rights and benefits to the Company’s OLED technology are conveyed to the customer through technology license agreements and material supply agreements. The Company believes that the licenses and materials sold under these combined agreements are not distinct from each other for financial reporting purposes and as such, are accounted for as a single performance obligation. Accordingly, total contract consideration, including material, license and royalty fees, is estimated and recognized over the contract term based on material units sold at the estimated per unit fee over the life of the contract. Various estimates are relied upon to recognize revenue. The Company estimates total material units to be purchased by its customers over the contract term based on historical trends, industry estimates and its forecast process. Additionally, management estimates the total sales-based royalties based on the estimated net sales revenue of its customers over the contract term. Management is using the expected value method to estimate the material per unit fee. For the three months ended September 30, 2019 and 2018, the Company recorded 97% and 96% of its revenue from sales of materials and 3% and 4% from the providing of services through Adesis, respectively. For the nine months ended September 30, 2019 and 2018, the Company recorded 97% and 95% of its revenue from sales of materials and 3% and 5% from the providing of services through Adesis, respectively. Contract Balances The following table provides information about assets and liabilities associated with our contracts from customers (in thousands):
|  | As of September 30, 2019 |
Accounts receivable |  | $ | 65,774 |
Short-term unbilled receivables |  |  | 467 |
Long-term unbilled receivables |  |  | 6,899 |
Short-term deferred revenue |  |  | 91,188 |
Long-term deferred revenue |  |  | 50,495 |
Short-term and long-term unbilled receivables are classified as other current assets and other assets, respectively, on the Consolidated Balance Sheet. The deferred revenue balance at September 30, 2019 will be recognized as materials are shipped to customers over the remaining contract periods. The significant customer contracts (individually representing greater than 10% of revenue) expire in 2022. As of September 30, 2019, the Company had $11.3 million of backlog associated with committed purchase orders from its customers for phosphorescent emitter material. These orders are anticipated to be fulfilled within the next 90 days. Significant changes in the unbilled receivables and deferred liabilities balances during the period are as follows (in thousands):
|  | Nine Months Ended September 30, 2019 |
|  | Unbilled Receivables Increase (Decrease) |  |  | Deferred Revenue (Increase) Decrease |
Balance at December 31, 2018 |  | $ | 1,020 |  |  | $ | (122,567 | )
Revenue recognized that was previously included in deferred revenue |  |  | — |  |  |  | 94,044 |
Increases due to cash received |  |  | — |  |  |  | (113,849 | )
Cumulative catch-up adjustment arising from changes in estimates of transaction price |  |  | — |  |  |  | 689 |
Unbilled receivables recognized |  |  | 7,571 |  |  |  | — |
Transferred to receivables from unbilled receivables |  |  | (1,225 | ) |  |  | — |
Net change |  |  | 6,346 |  |  |  | (19,116 | )
Balance at September 30, 2019 |  | $ | 7,366 |  |  | $ | (141,683 | )

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- References No definition available. + Details
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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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