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Revenue Recognition | 12 Months Ended
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Dec. 31, 2021
Revenue From Contract With Customer [Abstract] |
Revenue Recognition | Note 2. Revenue Recognition Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of December 31, 2021:
|  | 2022 |  |  | 2023 |  |  | Beyond 2023 |  |  | Total |
| (In thousands) |
Performance obligations |  | $ | 163,584 |  |  | $ | 1,752 |  |  | $ | 1,319 |  |  | $ | 166,655 |
Contract Costs Costs to fulfill a contract are capitalized when they relate directly to an existing contract or specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations and are recoverable. These costs include direct cost incurred at inception of a contract which enables the fulfillment of the performance obligation and totaled $3.8 million and $2.9 million as of December 31, 2021 and 2020, respectively. There was no impairment of capitalized contract costs in the fiscal years of 2021, 2020 and 2019. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in Sales and marketing and General and administrative expenses. If the incremental direct costs of obtaining a contract, which consist of sales commissions, relate to a service recognized over a period longer than one year, costs are deferred and amortized in line with the related services over the period of benefit. Deferred commissions are classified as non-current based on the original amortization period of over one year. As of December 31, 2021 and 2020, there were no deferred commissions. Contract Balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the consolidated balance sheets. Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer. The following table reflects the contract balances:
|  | Balance Sheet Location |  | December 31, 2021 |  |  | December 31, 2020 |
|  |  |  | (In thousands) |
Accounts receivable, net |  | Accounts receivable, net |  | $ | 261,158 |  |  | $ | 337,052 |
Contract liabilities - current |  | Deferred revenue |  | $ | 16,500 |  |  | $ | 13,458 |
Contract liabilities - non-current |  | Other non-current liabilities |  | $ | 3,100 |  |  | $ | 3,165 |
The difference in the balances of the Company’s contract assets and liabilities as of December 31, 2021 and 2020 primarily results from the timing difference between the Company’s performance and the customer’s payment. During the years ended December 31, 2021, 2020 and 2019, $31.9 million, $25.0 million and $14.5 million, respectively, of revenue were deferred due to unsatisfied performance obligations for service contracts and undelivered product commitments, $28.9 million, $16.9 million and $17.9 million, respectively, of revenue were recognized for the satisfaction of performance obligations, and $13.6 million, $6.5 million and $9.9 million, respectively, of this recognized revenue were included in the contract liability balance at the beginning of the period, respectively. There were no significant changes in estimates during the periods that would affect the contract balances. Disaggregation of Revenue In the following table, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific (“APAC”). The table also includes reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in two segments: Connected Home, and Small and Medium Business (“SMB”). Sales and usage-based taxes are excluded from net revenue.
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | Connected Home |  |  | SMB |  |  | Total |  |  | Connected Home |  |  | SMB |  |  | Total |  |  | Connected Home |  |  | SMB |  |  | Total |
|  | (In thousands) |
Geographic regions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 651,936 |  |  | $ | 134,390 |  |  | $ | 786,326 |  |  | $ | 788,402 |  |  | $ | 109,569 |  |  | $ | 897,971 |  |  | $ | 529,982 |  |  | $ | 123,024 |  |  | $ | 653,006 |
EMEA |  |  | 112,368 |  |  |  | 117,461 |  |  |  | 229,829 |  |  |  | 129,929 |  |  |  | 91,736 |  |  |  | 221,665 |  |  |  | 91,586 |  |  |  | 108,513 |  |  |  | 200,099 |
APAC |  |  | 89,168 |  |  |  | 62,750 |  |  |  | 151,918 |  |  |  | 89,214 |  |  |  | 46,352 |  |  |  | 135,566 |  |  |  | 89,823 |  |  |  | 55,835 |  |  |  | 145,658 |
Total |  | $ | 853,472 |  |  | $ | 314,601 |  |  | $ | 1,168,073 |  |  | $ | 1,007,545 |  |  | $ | 247,657 |  |  | $ | 1,255,202 |  |  | $ | 711,391 |  |  | $ | 287,372 |  |  | $ | 998,763 |
Sales channels: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service provider |  | $ | 129,052 |  |  | $ | 2,481 |  |  | $ | 131,533 |  |  | $ | 192,714 |  |  | $ | 3,150 |  |  | $ | 195,864 |  |  | $ | 128,852 |  |  | $ | 4,465 |  |  | $ | 133,317 |
Non-service provider |  |  | 724,420 |  |  |  | 312,120 |  |  |  | 1,036,540 |  |  |  | 814,831 |  |  |  | 244,507 |  |  |  | 1,059,338 |  |  |  | 582,539 |  |  |  | 282,907 |  |  |  | 865,446 |
Total |  | $ | 853,472 |  |  | $ | 314,601 |  |  | $ | 1,168,073 |  |  | $ | 1,007,545 |  |  | $ | 247,657 |  |  | $ | 1,255,202 |  |  | $ | 711,391 |  |  | $ | 287,372 |  |  | $ | 998,763 |

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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=123351226&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=123351226&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=123351226&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=123351226&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=123351226&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=123351226&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=123351226&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=123351226&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=123351226&loc=SL49130554-203045 + Details
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