Receivables, Contract Liabilities and Performance Obligations

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Receivables, Contract Liabilities and Performance Obligations

The following table provides information about receivables and contract liabilities as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Current receivables, which are included in “Accounts receivable, net”	$	3,072,096	$	3,272,371
Non-current receivables, which are included in “Other assets”	237,018		161,837
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	109,342		102,057

Changes in the contract liabilities balances during the nine months ended September 30, 2023 are as follows (in thousands):


	Increase (Decrease)
	Contract Liabilities
Balances at December 31, 2022	$	102,057
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(56,429)
Cash received in advance and not recognized as revenue	63,714
Balances at September 30, 2023	$	109,342

During the nine months ended September 30, 2022, the Company recognized revenue of $67,984,000 related to its contract liabilities.

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2023 that are expected to be recognized in the future (in thousands):


	Services
Remainder of 2023	$	34,034
2024	56,893
2025	21,173
2026 and thereafter	10,205
Total remaining performance obligations	$	122,305

With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above. Amounts not included in the table above have an average original expected duration of nine months. Additionally, for our time and material services contracts, whereby we have the right to consideration from a client in an amount that corresponds directly with the value to the client of our performance completed to date, we recognized revenue in the amount to which we have a right to invoice as of September 30, 2023 and do not disclose information about related remaining performance obligations in the table above. Our time and material contracts have an average expected duration of 23 months.

The majority of our backlog historically has been and continues to be open cancellable purchase orders. We do not believe that backlog as of any particular date is predictive of future results, therefore we do not include performance obligations under open cancellable purchase orders, which do not qualify for revenue recognition, in the table above.