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Contract assets and contract liabilities
9 Months Ended
Sep. 30, 2018
Contract assets and contract liabilities  
Contract assets and contract liabilities

 

7. Contract assets and contract liabilities

 

The opening and closing balances of our contract asset, net, contract liability, net, and receivables balances from contracts with customers for the nine months ended September 30, 2018 are as follows:

 

 

 

Contract
assets, net

 

Contract
liabilities, net

 

Balance at January 1, 2018

 

$

798

 

$

204,472

 

Balance at September 30, 2018

 

911

 

206,736

 

 

 

 

 

 

 

Change

 

$

113

 

$

2,264

 

 

 

 

 

 

 

 

 

 

The current and non-current portions of our contract assets, net are included within prepaid expenses and other current assets and other assets, respectively, and current and non-current portions of our contract liabilities, net are included within deferred revenue and deferred revenue, net of current portion, respectively, in our condensed consolidated balance sheets. Contract assets, net are generated from our multifamily and wholesale Wi-Fi contracts and the change in the contract assets, net balance includes activity related to amounts acquired from the Elauwit acquisition and amounts invoiced offset by revenue recognized from performance obligations satisfied in the current reporting period.

 

Contract liabilities are recorded when fees are collected or we have an unconditional right to consideration (a receivable) in advance of delivery of goods or services. The change in contract liabilities, net balance is related to amounts acquired from the Elauwit acquisition and customer activity associated with each of our product offerings including the receipt of cash payments and the satisfaction of our performance obligations. Revenues for the three and nine months ended September 30, 2018 include the following:

 

 

 

Three Months
Ended
September 30, 2018

 

Nine Months Ended
September 30, 2018

 

Amounts included in the beginning of period contract liability balance

 

$

16,572

 

$

66,864

 

Amounts associated with performance obligations satisfied in previous periods

 

67

 

257

 

 

As of September 30, 2018, the aggregate amount of the transaction price allocated to remaining service performance obligations for our DAS contracts was $191,458. We expect to recognize this revenue as service is provided over the remaining contract term. As of September 30, 2018, our DAS contracts have a remaining duration of less than one year to sixteen years.

 

Certain of our wholesale Wi-Fi contracts include variable consideration based on usage. This variable consideration has been excluded from the disclosure of remaining performance obligations. As of September 30, 2018, the aggregate amount of the transaction price allocated to remaining service performance obligations for certain of our wholesale Wi-Fi contracts with guaranteed minimum consideration was $9,439. We expect to recognize this revenue as service is provided over the remaining contract term. As of September 30, 2018, our wholesale Wi-Fi contracts have a remaining duration of less than one year to sixteen years.

 

Information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less have been excluded from the above, which primarily consists of network installations for our multifamily customers and monthly service contracts.