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Receivables, Contract Liabilities and Performance Obligations

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Receivables, Contract Liabilities and Performance Obligations

Contract Balances

The following table provides information about receivables and contract liabilities as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025		December 31, 2024
Current receivables, which are included in “Accounts receivable, net”	$	4,608,997	$	4,172,104
Contract assets, net	64,488		81,980
Long-term accounts receivable	816,939		845,943
Long-term contract assets, net	69,055		86,953
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	117,004		109,615

Significant changes in the gross contract assets balances during the three months ended March 31, 2025 are as follows (in thousands):


	Contract Assets
Balances at December 31, 2024	$	178,438

Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional	(31,540)
Contract assets recognized, net of reclassification to receivables	4,073
Balances at March 31, 2025	$	150,971

Contract assets consist of amounts the Company is entitled to for the resale of third-party consumption-based services, prior to payment becoming unconditional. In these transactions, the Company invoices clients for the gross amount of consideration it is responsible to collect, including amounts ultimately passed on to the third-party service providers. As of March 31, 2025, contract assets, net of allowances, were $133,543,000.

Gross contract assets by our internal risk ratings as of March 31, 2025 are summarized as follows (in thousands):


	Contract Assets
Low risk	$	33,889
Moderate risk	70,707
High risk	46,375
Total contract assets	$	150,971

Changes in the contract liabilities balances during the three months ended March 31, 2025 are as follows (in thousands):


	Contract Liabilities
Balances at December 31, 2024	$	109,615
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(32,528)
Cash received in advance and not recognized as revenue	39,917
Balances at March 31, 2025	$	117,004

During the three months ended March 31, 2024, the Company recognized revenue of $37,570,000 related to its contract liabilities.

Transaction price allocated to the remaining performance obligations

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2025 that are expected to be recognized in the future (in thousands):


	Services
Remainder of 2025	$	104,853
2026	62,369
2027	39,778
2028 and thereafter	45,241
Total remaining performance obligations	$	252,241

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, the 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 seven 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 March 31, 2025 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 31 months.