Contract Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]

Contract assets and liabilities

The following table shows the opening and closing balances of contract assets and contract liabilities from contracts with customers (dollars in thousands):

	June 30, 2020		December 31, 2019		$ Change		% Change
Contract assets, net (1)	$	12,125	$	—	$	12,125	NM
Contract liabilities, net (2)	$	6,310	$	6,592	$	(282)	(4)	%

__________

NM indicates that the percentage change is not meaningful or is greater than 100%.

(1)At June 30, 2020, approximately $0.8 million of this contract asset amount is classified as current and is included in Prepaid expenses and other current assets in the Company’s Condensed Consolidated Balance Sheets. The remaining amount is classified as noncurrent and is included in Other assets. The net increase in contract assets during the six months ended June 30, 2020 was primarily due to the Company’s estimated consideration for the sale of certain intellectual property rights.

(2)At both June 30, 2020 and December 31, 2019, approximately $1.4 million of these contract liability amounts are classified as current and are included in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets. The remaining amounts are classified as noncurrent and are included in Other liabilities. The decrease to contract liabilities was due to approximately $0.3 million in revenue recognized during the period.