REVENUES

The Company’s revenues by product line were as follows (in thousands):

	Three Months Ended March 31,
	2018		2017
Residential
Data	$	118,487	$	90,201
Video		88,757		72,454
Voice		10,671		9,867
Business services		37,691		26,968
Advertising sales		5,241		5,622
Other		4,914		2,322
Total revenues	$	265,761	$	207,434

Fees imposed on the Company by various governmental authorities are passed through monthly to the Company’s customers and are periodically remitted to authorities. These fees were

$4.1

million and

$3.5

million for the

three

months ended

March 31, 2018

and

2017,

respectively, and were reported in residential data, video and voice revenues on a gross basis with a corresponding operating expense because the Company is acting as a principal.

Other is comprised primarily of customer late charges, activation fees and reconnect fees.

A significant portion of our revenue is derived from customers who

may

cancel their subscriptions at any time without penalty. As such, the amount of revenue related to unsatisfied performance obligations is

not

necessarily indicative of the future revenue to be recognized from our existing customers. Revenue from customers with a contractually specified term and non-cancelable service period will be recognized over the term of the underlying contract, which generally ranges from

one

five

years.

Contract Liabilities

Timing of revenue recognition

may

differ from the timing of invoicing to customers. Residential and business services customers are invoiced for subscription services in advance of the service period. Deferred revenue liabilities, or contract liabilities, are recorded when the Company collects payments in advance of performing the services.

Current deferred revenue liabilities consisting primarily of refundable customer prepayments were

$17.8

million and

$15.0

million as of

March 31, 2018

and

December 31, 2017.

Long-term deferred revenue liabilities consisting primarily of installation charges or up-front fees from business services customers, were

$2.2

million and

$3.1

million as of

March 31, 2018

and

December 31, 2017,

respectively, and were included in other liabilities in the condensed consolidated balance sheet.

Contract Costs

The Company recognizes an asset for incremental costs of obtaining a contract with a customer. Accordingly, deferred commissions paid to obtain residential customers are recognized using a portfolio approach over a calculated average customer life. Deferred commissions were included in prepaid and other current assets and other assets in the condensed consolidated balance sheet and totaled

$7.7

million and

$7.5

million as of

March 31, 2018

and

December 31, 2017,

respectively. Approximately

$2.8

million of currently deferred commissions are expected to be amortized to selling, general and administrative expenses over the next

months.

Significant Judgments

The Company often provides multiple services to a customer. Provision of customer premise equipment, installation services, and additional service tiers

may

have a significant level of integration and interdependency with the subscription of data, video, voice, or connectivity services provided. Judgment is required to determine whether provision of customer premise equipment, installation services, and additional service tiers are considered distinct and accounted for separately, or

not

distinct and accounted for together with the subscription services.

The transaction price for a bundle of residential services is frequently less than the sum of the standalone selling prices of each individual service. The Company allocates these bundled services amongst the services to which the discount relates based on the relative standalone selling prices of those services. Standalone selling prices of the Company’s residential data and video services are directly observable, while standalone selling prices for the Company’s residential voice services are estimated using the adjusted market assessment approach which relies upon information from peers and competitors who sell residential voice services individually.

The Company also incurs incremental internal costs to acquire residential and business customers, such as commission costs, and

third

party costs to service specific contracts. These costs are capitalized as contract assets and amortized over the applicable period. For commissions, the amortization period is the average customer tenure. Amortized commission expense was

$0.8

million and

$0.7

million for the

three

months ended

March 31, 2018

and

2017,

respectively, and was included in selling, general and administrative expenses within the condensed consolidated statements of operations and comprehensive income.