Revenue from Contracts with Customers

9 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Capitalized Contract Acquisition Costs

The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the nine months ended June 30, 2020 (in thousands):


Balances, September 30, 2019	$	59,446
Additional capitalized contract acquisition costs deferred	31,759
Amortization of capitalized contract acquisition costs	(24,768)
Balances, June 30, 2020	$	66,437

Amortization of capitalized contract acquisition costs was $7.8 million and $6.9 million for the three months ended June 30, 2020 and 2019, respectively, and $24.8 million and $21.3 million for the nine months ended June 30, 2020 and 2019, respectively, and is recorded in Sales and Marketing expense in the accompanying consolidated income statements. There was no impairment of any capitalized contract acquisition costs during any period presented.

Contract Balances

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to the Company's contracts with customers. The Company records assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected, in addition to contracts that have started, but not yet been fully billed. These assets are recorded as contract assets rather than receivables when receipt of the consideration is conditional on something other than the passage of time. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current deferred revenue.

The table below shows significant movements in contract assets (current and noncurrent) for the nine months ended June 30, 2020 (in thousands):


Balances, September 30, 2019	$	132,492
Revenue recognized during period but not yet billed	22,213
Contract asset additions	80,243
Contract assets acquired through the purchase of Shape	6,045
Contract assets reclassified to accounts receivable	(62,523)
Balances, June 30, 2020	$	178,470

As of June 30, 2020, contract assets that are expected to be reclassified to receivables within the next 12 months are included in other current assets, with those expected to be transferred to receivables in more than 12 months included in other assets. There were no impairments of contract assets during the nine months ended June 30, 2020 and 2019.

The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the nine months ended June 30, 2020 (in thousands):


Balances, September 30, 2019	$	1,198,116
Amounts billed but not recognized as revenues	740,050
Amounts acquired through the purchase of Shape	39,000
Revenues recognized related to the opening balance of deferred revenue	(702,114)
Balances, June 30, 2020	$	1,275,052

The Company's contract assets and liabilities are reported in a net position on a contract by contract basis at the end of each reporting period.

Remaining Performance Obligations

Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. As of June 30, 2020, the total non-cancelable remaining performance obligations under the Company's contracts with customers was approximately $1.3 billion and the Company expects to recognize revenues on approximately 69.7% of these remaining performance obligations over the next 12 months, 18.9% in year two, and the remaining balance thereafter.

See Note 12, Segment Information, for disaggregated revenue by significant customer and geographic region.