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Deferred Revenue
9 Months Ended
Sep. 30, 2022
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 85% of the Company’s deferred revenue balance of $12.4 million as of September 30, 2022 will be recognized over the next 12 months.
The following table provides changes in the deferred revenue balance for the three and nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Beginning balance$11,527 $11,403 $10,825 $11,237 
Add: Payments received5,738 3,880 14,755 13,226 
Less: Revenue from current period sales(487)(2,576)(4,569)(4,851)
Less: Revenue recognized from beginning balance(4,377)(2,027)(8,610)(8,932)
Ending balance$12,401 $10,680 $12,401 $10,680 
Costs for extended service contracts were $1.4 million and $4.6 million for the three and nine months ended September 30, 2022, respectively, and were $2.1 million and $6.3 million for the three and nine months ended September 30, 2021, respectively.