Deferred Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Deferred Revenue

DEFERRED REVENUE

The Company records deferred revenue when revenue is to be recognized subsequent to invoicing. For extended service contracts, the Company generally invoices customers at the beginning of the extended service contract term. The Company’s extended service contracts typically have one to three-year terms. Deferred revenue also includes payments for training. Approximately 86% of the Company’s deferred revenue balance of $10.8 million as of December 31, 2021, will be recognized over the next 12 months.

The following table provides changes in the deferred contract revenue balance for the years ended December 31, 2021 and 2020 (in thousands):

	December 31,
	2021		2020
Balance at beginning of year	$	11,237	$	14,222
Add: Payments received	17,139		14,131
Less: Revenue recognized from current period sales	(7,006)		(6,337)
Less: Revenue recognized from beginning balance	(10,545)		(10,779)
Balance at end of year	$	10,825	$	11,237

Costs for extended service contracts were $8.3 million, $8.2 million and $9.3 million, respectively, for the years ended December 31, 2021, 2020 and 2019.