Revenue Recognition

3 Months Ended

Mar. 26, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Capitalization of Costs to Obtain a Contract

The ending balances of the Company's capitalized costs to obtain a contract as of March 26, 2022 and December 25, 2021 were not material.

Disaggregation of Revenue

The following table presents the Company's revenue disaggregated by geography, based on the shipping address of the customer (in thousands):

	Three Months Ended
	March 26, 2022		March 27, 2021
United States	$	170,185	$	157,649
Other Americas	20,911		19,531
Europe, Middle East and Africa	108,611		114,908
Asia Pacific	39,167		38,819
Total revenue	$	338,874	$	330,907

The Company sells its products directly to customers who are predominantly service providers and to channel partners that sell on its behalf.

The following table presents the Company's revenue disaggregated by sales channel (in thousands):

	Three Months Ended
	March 26, 2022		March 27, 2021
Direct	$	260,892	$	271,301
Indirect	77,982		59,606
Total revenue	$	338,874	$	330,907

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	March 26, 2022		December 25, 2021
Assets (Liabilities)
Accounts receivable, net	$	276,056	$	358,954
Contract assets	$	58,612	$	49,052
Deferred revenue	$	(159,703)	$	(168,909)

Revenue recognized for the three-months ended March 26, 2022 that was included in the deferred revenue balance at the beginning of the reporting period was $44.9 million. Revenue recognized for the three-months ended March 27, 2021 that was included in the deferred revenue balance at the beginning of the reporting period was $31.3 million. Changes in the contract asset and liability balances during the three-month periods ended March 26, 2022 and March 27, 2021 were not materially impacted by other factors.

Transaction Price Allocated to the Remaining Performance Obligation

The Company’s remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially satisfied, consisting of deferred revenue and backlog. The Company’s backlog represents purchase orders received from customers for future product shipments and services. The Company’s backlog is subject to future events that could cause the amount or timing of the related revenue to change, and, in certain cases, may be canceled without penalty. Orders in backlog may be fulfilled several quarters following receipt or may relate to multi-year support service obligations.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) pursuant to contracts that are not subject to cancellation without penalty at the end of the reporting period (in thousands):

	Remainder of 2022		2023		2024		2025		2026		Thereafter		Total
Revenue expected to be recognized in the future as of March 26, 2022	$	661,174	$	119,111	$	26,998	$	7,052	$	3,673	$	3,522	$	821,530