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Contract liabilities (non-current and current)
12 Months Ended
Dec. 31, 2020
Contract Liabilities [Abstract]  
Contract liabilities (non-current and current)

22

Contract liabilities (non-current and current)

Contract liabilities as at December 31, 2020 and 2019 consist of the following:

 

 

 

31/12/20

 

 

31/12/19

 

Advance payments from customers

 

 

14,318

 

 

 

11,821

 

Deferred income from licensing of Natuzzi’s trademarks

 

 

6,726

 

 

 

7,108

 

Deferred revenue for Natuzzi Display System

 

 

2,613

 

 

 

3,369

 

Deferred revenue for Service-Type Warranty

 

 

526

 

 

 

805

 

Total contract liabilities

 

 

24,183

 

 

 

23,103

 

Less current portion

 

 

(16,150

)

 

 

(14,014

)

Non-current portion

 

 

8,033

 

 

 

9,089

 

 

“Advance payments from customers” are related to considerations received by the Group upon sale of the Group’s products, and before their delivery to end customers.

“Deferred income from licensing Natuzzi’s trademarks” refers to the deferral of revenue deriving from licensing Natuzzi’s Trademarks, to the former subsidiary Natuzzi Trading Shanghai, as part of the transaction with Kuka previously described in note 11. Such revenue, in the amount of 6,726 (net of the elimination of intercompany profit on the transaction), has been deferred over the useful life (20 years) of the licensed trademarks.

“Deferred revenue for Natuzzi Display System” refers to the deferral of revenue deriving from the sale of store fittings to retailers, which are used to set up their stores (“Natuzzi Display System” – NDS). Such revenue is recognised over time based on the length of the distribution contract signed with the retailer (usually five years).

“Deferred revenue for Service-Type Warranty” refers to the deferral of revenue deriving from the sale of a service-type warranty to end customers, which is recognised over time based on the contractual length of the insurance period (five years).

The amount of revenue recognised for the years ended December 31, 2020, 2019 and 2018 that was included in the opening contract liabilities balance amounts to 14,014, 12,165 and 12,973, respectively.