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Revenue Recognition
 9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

5.

Revenue Recognition

Remaining performance obligations

As of September 30, 2020, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations was approximately $66.2 million. Approximately $1.9 million represents future equipment revenue that is expected to be recognized within the next year. The remaining $64.3 million primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contract. We have excluded from this amount consideration from contracts that have an original duration of one year or less.

Disaggregation of revenue

The following table presents our revenue disaggregated by category (in thousands):

 

 

 

For the Three Months

 

 

For the Nine Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Connectivity

 

$

52,607

 

 

$

54,698

 

 

$

153,029

 

 

$

161,559

 

Entertainment and other

 

717

 

 

651

 

 

 

2,054

 

 

 

1,759

 

Total service revenue

 

$

53,324

 

 

$

55,349

 

 

$

155,083

 

 

$

163,318

 

Equipment revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATG

 

$

10,785

 

 

$

20,099

 

 

$

27,285

 

 

$

43,778

 

Satellite

 

 

2,176

 

 

 

5,292

 

 

 

9,068

 

 

 

14,336

 

Other

 

240

 

 

600

 

 

648

 

 

 

1,698

 

Total equipment revenue

 

$

13,201

 

 

$

25,991

 

 

$

37,001

 

 

$

59,812

 

Customer type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft owner/operator

 

$

53,324

 

 

$

55,349

 

 

$

155,083

 

 

$

163,318

 

OEM and aftermarket dealer

 

 

13,201

 

 

 

25,991

 

 

 

37,001

 

 

 

59,812

 

Total revenue

 

$

66,525

 

 

$

81,340

 

 

$

192,084

 

 

$

223,130

 

 

Contract balances

Our current and non-current deferred revenue balances totaled $2.5 million and $2.2 million as of September 30, 2020 and December 31, 2019, respectively. Deferred revenue includes, among other things, equipment and subscription connectivity products.

Our current and non-current contract asset balances totaled $10.4 million and $3.1 million as of September 30, 2020 and December 31, 2019, respectively. The contract asset balance as of September 30, 2020 was net of allowances of $0.3 million. See Note 10, “Composition of Certain Reserves and Allowances,” for additional information regarding allowances. Contract assets represent the aggregate amount of revenue recognized in excess of billings primarily for certain promotional sales programs.