Contract assets and contract liabilities

9 Months Ended

Sep. 30, 2020

Contract assets and contract liabilities

Contract assets and contract liabilities

5. Contract assets and contract liabilities

The opening and closing balances of our contract asset, net and contract liability, net balances from contracts with customers for the nine months ended September 30, 2020 were as follows:

	Contract		Contract
	Assets, Net		Liabilities, Net
Balance at December 31, 2019	$	967	$	227,889
Balance at September 30, 2020		760		230,770
Change	$	(207)	$	2,881

The current and non-current portions of our contract assets, net are included within prepaid expenses and other current assets and other assets, respectively, and current and non-current portions of our contract liabilities, net are included within deferred revenue and deferred revenue, net of current portion, respectively, in our condensed consolidated balance sheets. Contract assets, net is generated from our carrier, multifamily and wholesale Wi-Fi contracts and the change in the contract assets, net balance includes activity related to amounts invoiced offset by revenue recognized from performance obligations satisfied in the current reporting period.

Contract liabilities are recorded when fees are collected, or we have an unconditional right to consideration (a receivable) in advance of delivery of goods or services. The change in contract liabilities, net balance is related to customer activity associated with each of our product offerings including the receipt of cash payments and the satisfaction of our performance obligations. Revenues for the three and nine months ended September 30, 2020 include the following:

	Three Months Ended		Nine Months Ended
	September 30, 2020		September 30, 2020
Amounts included in the beginning of period contract liability balance	$	19,020	$	65,126
Amounts associated with performance obligations satisfied in previous periods		(100)		(81)

As of September 30, 2020, the aggregate amount of the transaction price allocated to remaining service performance obligations for our DAS contracts was $217,354. We expect to recognize this revenue as service is provided over the remaining contract term. As of September 30, 2020, our DAS contracts have a remaining duration of less than one year to approximately fourteen years.

Certain of our wholesale Wi-Fi contracts include variable consideration based on usage. This variable consideration has been excluded from the disclosure of remaining performance obligations. As of September 30, 2020, the aggregate amount of the transaction price allocated to remaining service performance obligations for certain of our wholesale Wi-Fi contracts with guaranteed minimum consideration was $8,746. We expect to recognize this revenue as service is provided over the remaining contract term. As of September 30, 2020, our wholesale Wi-Fi contracts have a remaining duration of less than one year to approximately fourteen years.

Information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less have been excluded from the above, which primarily consists of network installations for our multifamily customers and monthly service contracts.