The following is a description of the principal activities from which revenue is generated by reportable segment:

Network Solutions Segment - Includes hardware and software products that enable a digital future which support the Company's Subscriber, Access & Aggregation, and Optical Networking Solutions.

Services & Support Segment - Includes network design, implementation, maintenance and cloud-hosted services supporting the Company's Subscriber, Access & Aggregation, and Optical Networking Solutions.

In addition to the Company's reportable segments, revenue is also reported for the following three categories – Subscriber Solutions, Access & Aggregation Solutions and Optical Networking Solutions.

Prior to the Business Combination with Adtran Networks on July 15, 2022, ADTRAN reported revenue across the following three categories: (1) Access & Aggregation, (2) Subscriber Solutions & Experience and (3) Traditional & Other Products. Following the Business Combination with Adtran Networks, we have recast these revenues such that ADTRAN’s former Access & Aggregation revenue is combined with a portion of the applicable Adtran Networks solutions to create Access & Aggregation Solutions, ADTRAN’s former Subscriber Solutions & Experience revenue is combined with a portion of the applicable Adtran Networks solutions to create Subscriber Solutions, and the revenue from Traditional & Other products is now included in the applicable Access & Aggregation Solutions or Subscriber Solutions category. Optical Networking Solutions is a new revenue category added to represent a meaningful portion of Adtran Networks' portfolio.

Our Subscriber Solutions portfolio is used by Service Providers to terminate their access services infrastructure at the customer premises while providing an immersive and interactive experience for residential, business and wholesale subscribers. This revenue category includes hardware- and software-based products and services. These solutions include fiber termination solutions for residential, business and wholesale subscribers, Wi-Fi access solutions for residential and business subscribers, Ethernet switching and network edge virtualization solutions for business subscribers, and cloud software solutions covering a mix of subscriber types.

Our Access & Aggregation Solutions are solutions that are used by communications Service Providers to connect residential subscribers, business subscribers and mobile radio networks to the Service Providers’ metro network, primarily through fiber-based connectivity. This revenue category includes hardware- and software-based products and services. Our solutions within this category are a mix of fiber access and aggregation platforms, precision network synchronization and timing solutions, and access orchestration solutions that ensure highly reliable and efficient network performance.

Our Optical Networking Solutions are used by communications Service Providers, internet content providers and large-scale enterprises to securely interconnect metro and regional networks over fiber. This revenue category includes hardware- and software-based products and services. Our solutions within this category include open optical terminals, open line systems, optical subsystems and modules, network infrastructure assurance systems, and automation platforms that are used to build high-scale, secure and assured optical networks.

The following tables disaggregate revenue by reportable segment and revenue category. Prior year amounts presented below have been reclassified to conform to the current period revenue category presentation:


	Three Months Ended
	June 30, 2023						June 30, 2022
(In thousands)	Network Solutions		Services & Support		Total		Network Solutions		Services & Support		Total
Optical Networking Solutions	$	120,221	$	22,775	$	142,996	$	—	$	—	$	—
Access & Aggregation Solutions		89,263		13,454		102,717		80,821		11,467		92,288
Subscriber Solutions		73,518		8,147		81,665		75,171		4,579		79,750
Total	$	283,002	$	44,376	$	327,378	$	155,992	$	16,046	$	172,038


	Six Months Ended
	June 30, 2023						June 30, 2022
(In thousands)	Network Solutions		Services & Support		Total		Network Solutions		Services & Support		Total
Optical Networking Solutions	$	247,798	$	42,954	$	290,752	$	—	$	—	$	—
Access & Aggregation Solutions		173,817		25,720		199,537		166,805		23,279		190,084
Subscriber Solutions		143,805		17,196		161,001		127,561		8,911		136,472
Total	$	565,420	$	85,870	$	651,290	$	294,366	$	32,190	$	326,556

The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of June 30, 2023 and December 31, 2022 related to contractual maintenance agreements, contractual SaaS and subscription services, and hardware contracts that exceed one year in duration amounted to $369.3 million and $277.2 million, respectively. As of June 30, 2023, approximately 46.5% is expected to be recognized over the next 12 months and the remainder recognized thereafter. The majority of the Company's remaining performance obligations as of June 30, 2023 are related to contracts or orders that have an original expected duration of one year or less, for which the Company is electing to utilize the practical expedient available within the guidance, and are excluded from the transaction price related to these future obligations. The Company will generally satisfy the remaining performance obligations as we transfer control of the products ordered or services to our customers, excluding maintenance services, which are satisfied over time.

The following table provides information about receivables, contract assets and unearned revenue from contracts with customers:


	As of		As of
(In thousands)	June 30, 2023		December 31, 2022
Accounts receivable, net	$	239,565	$	279,435
Contract assets(1)	$	1,153	$	1,852
Unearned revenue	$	48,030	$	41,193
Non-current unearned revenue	$	24,111	$	19,239

The Company is party to a receivables purchase agreement with a third-party financial institution (the “Factor”), which accelerates receivable collection and helps to better manage cash flow. Total accounts receivables sold for the six months ended June 30, 2023 and the twelve months ended December 31, 2022, totaled $14.7 million and $14.9 million, respectively, of which $1.2 million was retained by the Factor in the reserve account. The balance in the reserve account is included in other assets on the Condensed Consolidated Balance Sheets. As of June 30, 2023 and December 31, 2022, the Company had an allowance for credit losses related to factored accounts receivable totaling less than $0.1 million. The cost of the receivables purchase agreement is included in interest expense in the Condensed Consolidated Statements of (Loss) Income and totaled $0.3 million and $0.6 million for the three and six months ended June 30, 2023, respectively.

Of the outstanding unearned revenue balances as of December 31, 2022, $24.8 million and $50.5 million was recognized as revenue during the three and six months ended June 30, 2023, respectively. Of the $17.7 million of outstanding unearned revenue balances as of December 31, 2021, $4.1 million and $9.5 million was recognized as revenue during the three and six months ended June 30, 2022, respectively.

The Company records accounts receivable in the normal course of business as products are shipped or services are performed and invoiced, but payment has not yet been remitted by the customer. Accounts receivable balances are considered past due when payment has not been received by the date indicated on the relevant invoice or based on agreed upon terms between the customer and the Company.

As of June 30, 2023 and December 31, 2022, the Company’s outstanding accounts receivable balance was $239.6 million and $279.4 million, respectively. The Company assessed the need for an allowance for credit losses related to its outstanding accounts receivable using the historical loss-rate method as well as assessing asset-specific risks. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition, credit rating by geographic location, as provided by a third party and/or by customer, if needed, and the overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its accounts receivable balance, assessing the specific country risk rating and overall economics of that particular country. If elevated risk existed, or customer specific risk indicated the accounts receivable balance was at risk, the Company further analyzed the need for an allowance related to specific accounts receivable balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would require further review and analysis by the Company.

The allowance for credit losses was $26 thousand and $49 thousand as of June 30, 2023 and December 31, 2022, respectively, related to accounts receivable.

The Company records contract assets when it has recognized revenue but has not yet billed the customer. As of June 30, 2023 and December 31, 2022, the Company’s outstanding contract asset balance was $1.2 million and $1.9 million, respectively, which is included in other receivables on the Consolidated Balance Sheets. The Company assessed the need for an allowance for credit losses related to its outstanding contract assets using the historical loss-rate method as well as asset-specific risks. The Company’s historical losses related to contract assets receivable have been immaterial as evidenced by historical write-offs due to collectability. Asset-specific risk included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay once invoiced, such as the customer’s financial condition, credit rating by geographic location as provided by a third party and/or by customer, if needed, and the overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its contract asset balance, assessing the specific country risk rating and the overall economics of that particular country. If elevated risk existed, or customer specific risk indicated the contract balance was at risk, the Company further analyzed the need for an allowance related to specific customer balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would be subject to further review and analysis by the Company.

No allowance for credit losses was recorded for the three months ended June 30, 2023 and 2022 related to contract assets.