Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Information About Contract Balances

The following table provides information about our contract balances with customers, including amounts for certain embedded leases.



	As of
	March 31, 2019			December 31, 2018
	(In thousands)
Trade accounts receivable:
Sales and services	$	164,310		$	154,415
Leasing	7,776			7,990
Total	172,086			162,405
Contract assets	58,500			55,295
Allowance for doubtful accounts	(14,028		)	(16,604		)
Total trade accounts receivable and contract assets, net	$	216,558		$	201,096

Trade accounts receivable - DISH Network:
Sales and services	$	17,252		$	12,274
Leasing	2,258			1,926
Total trade accounts receivable - DISH Network, net	$	19,510		$	14,200

Contract liabilities:
Current	$	90,180		$	72,284
Noncurrent	10,778			10,133
Total contract liabilities	$	100,958		$	82,417

For the three months ended March 31, 2019, we recognized revenue of $39 million that was previously included in the contract liability balance at December 31, 2018.

Our bad debt expense was $4 million and $5 million for the three months ended March 31, 2019 and 2018, respectively.

Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2019, the remaining performance obligations for our customer contracts with original expected durations of more than one year was $1.1 billion. We expect to recognize approximately 36% of our remaining performance obligations of these contracts as revenue in the next twelve months. This amount excludes agreements with consumer customers in our Hughes segment and our leasing arrangements.

Disaggregation of Revenue

In the following tables, revenue is disaggregated by segment, primary geographic market, nature of the products and services and transactions with major customers. See Note 4 for additional information about revenue associated with leases.

Geographic Information

The following table disaggregates revenue from customer contracts attributed to our North America (the U.S and its territories, Mexico and Canada), South and Central America and other foreign locations as well as by segment, based on the location where the goods or services are provided. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, and the Middle East.



	Hughes		ESS		Corporate and Other			Consolidated Total
	(In thousands)
For the three months ended March 31, 2019
North America	$	367,829	$	81,084	$	4,661		$	453,574
South and Central America	26,863		—		—			26,863
All other	50,645		175		(175		)	50,645
Total revenue	$	445,337	$	81,259	$	4,486		$	531,082

For the three months ended March 31, 2018
North America	$	336,020	$	96,578	$	4,396		$	436,994
South and Central America	24,488		—		—			24,488
All other	40,310		175		(175		)	40,310
Total revenue	$	400,818	$	96,753	$	4,221		$	501,792

Nature of Products and Services

The following table disaggregates revenue based on the nature of products and services and by segment.



	Hughes		ESS		Corporate and Other		Consolidated Total
	(In thousands)
For the three months ended March 31, 2019
Equipment	$	25,960	$	—	$	—	$	25,960
Services	380,783		3,740		1,736		386,259
Design, development and construction services	25,066		—		—		25,066
Revenue from sales and services	431,809		3,740		1,736		437,285
Lease revenue	13,528		77,519		2,750		93,797
Total revenue	$	445,337	$	81,259	$	4,486	$	531,082

For the three months ended March 31, 2018
Equipment	$	26,771	$	—	$	—	$	26,771
Services	313,961		7,403		1,475		322,839
Design, development and construction services	16,176		—		—		16,176
Revenue from sales and services	356,908		7,403		1,475		365,786
Lease revenue	43,910		89,350		2,746		136,006
Total revenue	$	400,818	$	96,753	$	4,221	$	501,792

Effective January 1, 2019, we report revenue from leases of Hughes consumer broadband equipment as services revenue due to our election to not separate lease and non-lease components in consumer broadband service contracts in connection with our adoption of ASC 842 (see Note 2).