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Revenues | 9 Months Ended
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Sep. 30, 2019
Revenue Recognition [Abstract] |
Revenues | Revenues Revenue Recognition The Company earns revenues from sales of its medication and supply dispensing automation systems, along with consumables and related services, which are sold in the healthcare industry, its principal market. The Company’s customer arrangements typically include one or more of the following performance obligations: Products. Software-enabled equipment that manages and regulates the storage and dispensing of pharmaceuticals, consumable blister cards and packaging equipment and other medical supplies. Software. Additional software applications that enable incremental functionality of the Company’s equipment or services. Installation. Installation of equipment as integrated systems at customer sites. Post-installation technical support. Phone support, on-site service, parts, and access to unspecified software updates and enhancements, if and when available. Professional services. Other customer services, such as training and consulting. A portion of the Company’s sales are made to customers who are members of Group Purchasing Organizations (“GPOs”). GPOs are often owned fully or in part by the Company’s customers, and the Company pays fees to the GPO on completed contracts. The Company considers these fees consideration paid to customers and records them as reductions to revenue. Fees to GPOs were $2.8 million and $2.2 million for the three months ended September 30, 2019 and 2018, respectively, and $7.6 million and $6.2 million for the nine months ended September 30, 2019 and 2018, respectively. Disaggregation of Revenues The following table summarizes the Company’s product revenues disaggregated by revenue type for the three and nine months ended September 30, 2019 and 2018:
| Three months ended September 30, |  | Nine months ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In thousands)
Hardware and software | $ | 144,305 |  |  | $ | 125,733 |  |  | $ | 399,548 |  |  | $ | 345,215 |
Consumables | 19,875 |  |  | 19,848 |  |  | 60,378 |  |  | 58,956 |
Other | 4,308 |  |  | 4,128 |  |  | 12,551 |  |  | 10,833 |
Total product revenues | $ | 168,488 |  |  | $ | 149,709 |  |  | $ | 472,477 |  |  | $ | 415,004 |
The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location, for the three and nine months ended September 30, 2019 and 2018:
| Three months ended September 30, |  | Nine months ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In thousands)
United States | $ | 206,709 |  |  | $ | 180,635 |  |  | $ | 582,540 |  |  | $ | 502,481 |
Rest of world (1) | 22,096 |  |  | 23,632 |  |  | 66,195 |  |  | 73,078 |
Total revenues | $ | 228,805 |  |  | $ | 204,267 |  |  | $ | 648,735 |  |  | $ | 575,559 |
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(1) | No individual country represented more than 10% of the respective totals.
Contract Assets and Contract Liabilities The following table reflects the Company’s contract assets and contract liabilities:
| September 30, 2019 |  | December 31, 2018
| (In thousands)
Short-term unbilled receivables - included in accounts receivable and unbilled receivables | $ | 15,524 |  |  | $ | 9,191 |
Long-term unbilled receivables - included in other long-term assets | 12,794 |  |  | 16,481 |
Total contract assets | $ | 28,318 |  |  | $ | 25,672 |
Short-term deferred revenues, net | $ | 88,205 |  |  | $ | 81,835 |
Long-term deferred revenues | 7,979 |  |  | 10,582 |
Total contract liabilities | $ | 96,184 |  |  | $ | 92,417 |
The portion of the transaction price allocated to the Company’s unsatisfied performance obligations for which invoicing has occurred is recorded as deferred revenues. Short-term deferred revenues of $88.2 million and $81.8 million include deferred revenues from product sales and service contracts, net of deferred cost of sales, of $14.3 million and $11.1 million as of September 30, 2019 and December 31, 2018, respectively. The short-term deferred revenues from product sales relate to delivered and invoiced products, pending installation and acceptance, expected to occur within the next twelve months. During the three and nine months ended September 30, 2019, the Company recognized revenues of $4.8 million and $69.8 million that were included in the corresponding gross short-term deferred revenues balance of $92.9 million as of December 31, 2018. Long-term deferred revenues include deferred revenues from service contracts of $8.0 million and $10.6 million as of September 30, 2019 and December 31, 2018, respectively. Remaining performance obligations primarily relate to maintenance contracts and are recognized ratably over the remaining term of the contract, generally not more than five years. Significant Customers There were no customers that accounted for more than 10% of the Company’s total revenues for the three and nine months ended September 30, 2019 and 2018. Also, there were no customers that accounted for more than 10% of the Company’s accounts receivable as of September 30, 2019 and December 31, 2018.

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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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