Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

2. Revenue Recognition

Disaggregation of revenue

The following table provides information about disaggregated revenue by primary geographical market and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands):

	Three Months Ended June 30, 2019								Three Months Ended June 30, 2018
	Third-Party Software		Proprietary Software		Professional Engineering Service		Total		Third-Party Software		Proprietary Software		Professional Engineering Service		Total
Primary geographical markets:
North America	$	9,785	$	240	$	2,014	$	12,039	$	16,281	$	265	$	1,633	$	18,179
Europe		520		10		168		698		702		5		182		889
Asia		1,379		8		56		1,443		9		11		115		135
Total	$	11,684	$	258	$	2,238	$	14,180	$	16,992	$	281	$	1,930	$	19,203

	Six Months Ended June 30, 2019								Six Months Ended June 30, 2018
	Third-Party Software		Proprietary Software		Professional Engineering Service		Total		Third-Party Software		Proprietary Software		Professional Engineering Service		Total
Primary geographical markets:
North America	$	22,512	$	484	$	3,571	$	26,567	$	31,400	$	1,948	$	4,120	$	37,468
Europe		840		16		303		1,159		1,295		105		428		1,828
Asia		1,433		9		108		1,550		361		23		201		585
Total	$	24,785	$	509	$	3,982	$	29,276	$	33,056	$	2,076	$	4,749	$	39,881

Contract balances

We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance obligations not yet invoiced and deferred contract acquisition costs, which are amortized over time as the associated revenue is recognized. Contract liabilities, presented as deferred revenue on our condensed consolidated balance sheets, include payments received in advance of performance under the contract and are realized when the associated revenue is recognized. We had no asset impairment charges related to contract assets for each of the three and six months ended June 30, 2019 and 2018.

Significant changes in the contract assets and the deferred revenue balances during the six months ended June 30, 2019 were as follows (in thousands):

	Six Months Ended June 30, 2019
	Contract Assets		Deferred Revenue
Revenue recognized that was included in deferred revenue at December 31, 2018	$	—	$	984
Transferred to receivables from contract assets recognized at December 31, 2018		302		—

Contract acquisition costs

We capitalize contract acquisition costs for contracts with a life exceeding one year, as is more common with our DataV software bookings. Amortization of contract acquisition costs was $7,000 and $80,000 for the three months ended June 30, 2019 and 2018, respectively, and was $7,000 and $86,000 for the six months ended June 30, 2019 and 2018, respectively. There were no asset impairment charges for contract acquisition costs for any of the periods noted above.

Transaction price allocated to the remaining performance obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period (in thousands). The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of June 30, 2019:

	Remainder of 2019		2020		2021		2022
Third-party software	$	24	$	14	$	—	$	—
Proprietary software		1,375		2,036		2,107		274
Professional engineering services		—		—		—		—

Practical expedients and exemptions

We apply a practical expedient and fully expense contract acquisition costs, such as sales commissions, as incurred because the amortization period is less than one year. We record these costs within selling, general and administrative expenses.