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Revenue from Contracts with Customers | 9 Months Ended
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Oct. 02, 2021
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows: •Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions; and •Services include revenue from customer support, software- and cloud-based maintenance, extended warranty subscriptions, professional services, training and managed services. The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands):
|  | Three Months Ended |  | Nine Months Ended
|  | October 2, 2021 |  | September 26, 2020 |  | October 2, 2021 |  | September 26, 2020
United States |  | $ | 136,312 |  |  |  | $ | 129,205 |  |  |  | $ | 414,246 |  |  |  | $ | 326,063 |  |
Americas ex U.S. |  |  | 11,800 |  |  |  |  | 7,032 |  |  |  |  | 37,660 |  |  |  |  | 18,969 |  |
Europe |  |  | 19,443 |  |  |  |  | 9,183 |  |  |  |  | 32,701 |  |  |  |  | 15,414 |  |
Middle East & Africa |  |  | 3,905 |  |  |  |  | 4,537 |  |  |  |  | 16,165 |  |  |  |  | 9,171 |  |
Asia Pacific |  |  | 771 |  |  |  |  | 551 |  |  |  |  | 2,203 |  |  |  |  | 1,596 |  |
|  | $ | 172,231 |  |  |  | $ | 150,508 |  |  |  | $ | 502,975 |  |  |  | $ | 371,213 |  |
Contract Asset The primary contract asset is revenue recognized on professional services contracts where the services are transferred to the customer over time, which has yet to be billed, and is classified within accounts receivable. Amounts are billed in accordance with the agreed-upon contractual terms. The balance as of December 31, 2020 was $2.3 million of which $0.3 million remained in the Company’s Condensed Consolidated Balance Sheet as of October 2, 2021. The closing balance as of October 2, 2021 was $1.2 million of which the Company expects to bill 55% of the balance during the remainder of 2020. The decrease in the contract asset was driven by billings for past services and a reduction in expected cash collections on ongoing projects partially offset by additional unbilled work performed during the three months ended October 2, 2021. Contract Liability Deferred revenue consisted of the following (in thousands):
|  | October 2, 2021 |  | December 31, 2020
Current: |  |  |  |
Products and services |  | $ | 19,465 |  |  | $ | 14,651 |
Extended warranty |  | 4,752 |  |  | 4,538 |
|  | 24,217 |  |  | 19,189 |
Long-term: |  |  |  |
Products and services |  | 2,639 |  |  | 1,879 |
Extended warranty |  | 18,929 |  |  | 18,025 |
|  | 21,568 |  |  | 19,904 |
|  | $ | 45,785 |  |  | $ | 39,093 |
The increase in the deferred revenue balance for the three and nine months ended October 2, 2021 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations offset by $8.6 million and $17.1 million of revenue recognized that was included in the deferred revenue balance at the beginning of each period, respectively. Revenue allocated to remaining performance obligations represents contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This amount was $105.0 million as of October 2, 2021, and the Company expects to recognize 34% of such revenue over the next 12 months and the remainder thereafter. Contract Costs The Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year. As of October 2, 2021, the unamortized balance of deferred commissions was $4.0 million. For the three and nine months ended October 2, 2021, the amount of amortization was $0.4 million and $0.7 million, respectively. There was no impairment loss in relation to the costs capitalized. Concentration of Customer Risk One customer, our only greater-than-10%-of-revenue customer, represented 10% of the Company’s total revenue for the three months ended October 2, 2021. No customer accounted for more than 10% of the Company’s total revenue for the nine months ended October 2, 2021. Another customer, Lumen Technologies, Inc. (formerly CenturyLink, Inc.), our only greater-than-10%-of-revenue customer, represented 12% and 14% of total revenue for three and nine months ended September 26, 2020, respectively. No customer represented more than 10% of the Company’s accounts receivable as of October 2, 2021 or December 31, 2020.

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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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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