Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table presents our revenue disaggregated by platform (in thousands):

	Year Ended December 31,
	2019		2018		2017(1)
Online game:
Mobile	$	981,178	$	590,436	$	564,629
Other(2)		66,059		80,441		100,964
Online game total	$	1,047,237	$	670,877	$	665,593
Advertising and other:
Mobile		266,556		225,085		174,867
Other(2)		7,866		11,246		20,930
Advertising and other total	$	274,422	$	236,331	$	195,797
Total revenue	$	1,321,659	$	907,208	$	861,390

^{(1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606.}

^{(2) Includes web revenue for online game and web advertising revenue and other revenue for advertising and other.}

The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands):

	Year Ended December 31,
	2019		2018		2017(1)
United States	$	826,556	$	593,973	$	567,315
All other countries(2)		495,103		313,235		294,075
Total revenue	$	1,321,659	$	907,208	$	861,390

^{(1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606.}

^{(2) No foreign country exceeded 10% of our total revenue for any periods presented.}

Consumable virtual items accounted for 26%, 43% and 44% of online game revenue in the years ended December 31, 2019, 2018 and 2017, respectively. Durable virtual items accounted for 74%, 57% and 56% of online game revenue in the years ended December 31, 2019, 2018 and 2017, respectively. The estimated weighted average life of durable virtual items was nine months for both the years ended December 31, 2019 and 2018, and eight months during the year ended December 31, 2017.

During the year ended December 31, 2019, there was no significant impact from discontinued games or from changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods.

During the year ended December 31, 2018, we recognized $0.9 million of online game revenue and income from operations from games that have been discontinued as there is no further performance obligation, which did not impact our reported earnings per share. Further, there were no changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods for the year ended December 31, 2018.

During the year ended December 31, 2017, we recognized $1.3 million of online game revenue and income from operations from changes in our estimated average playing period of payers, which was the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. This change in estimate did not impact our reported earnings per share. Further, there were no discontinued games that required adjusting the recognition period of deferred revenue generated in prior periods for the year ended December 31, 2017.

Contract Balances

We receive payments from our customers based on the payment terms established in our contracts. Payments for online game revenue are required at time of purchase, are non-refundable and relate to non-cancellable contracts that specify our performance obligations. Such payments are initially recorded to deferred revenue and are recognized into revenue as we satisfy our performance obligations. Further, payments made by our players are collected by payment processors and remitted to us generally within 30 days. Our right to the payments collected on our behalf are unconditional and therefore recorded as accounts receivable, net of the associated payment processing fees.

Payments for advertising arrangements are due based on the contractually stated payment terms. The contract terms generally require payment within 30 to 60 days subsequent to the end of the month. Our right to payment from the customer is unconditional and therefore recorded as accounts receivable.  

During the year ended December 31, 2019, we recognized all of the revenue that was included in the $191.3 million current deferred revenue balance as of December 31, 2018.

The increase in accounts receivable, net during the year ended December 31, 2019 was primarily driven by sales on account during the period exceeding cash collections of current period and previously due amounts, which includes contribution from Small Giant Games Oy (“Small Giant”). The increase in deferred revenue during the year ended December 31, 2019 was primarily driven by the sale of virtual items during the period exceeding revenue recognized from the satisfaction of our performance obligations, which includes the contribution from Small Giant.

Unsatisfied Performance Obligations

Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less.