Contract Assets and Liabilities

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Contract Assets and Liabilities

5. Contract Assets and Liabilities

The components of contract assets and contract liabilities consisted of the following:

	June 30,		December 31,
	2022		2021
	(in thousands)
Contract assets - current
Unbilled revenue	$	5,091	$	788
Contract assets	411		890
Total contract assets - current	$	5,502	$	1,678
Contract liabilities - current
Deferred revenue - short-term	$	4,260	$	11,082
Other contract liabilities	671		184
Total contract liabilities - current	$	4,931	$	11,266
Contract liabilities - long-term	$	—	$	—
Deferred revenue - long-term	—		568
Total contract liabilities - long-term	$	—	$	568

Deferred revenue and other contract liabilities are reported as contract liabilities in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities include payments received and billings made in advance of the satisfaction of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. Contract assets include (i) unbilled revenue, which is the amount of revenue recognized in excess of the amount billed to customers, where the rights to payment are not just subject to the passage of time; and (ii) costs incurred to fulfill contract obligations. Other contract assets and other contract liabilities primarily relate to contract commissions on customer contracts.

Changes in short-term and long-term contract assets and contract liabilities for the six months ended June 30, 2022 were as follows:

	Contract Assets		Contract Liabilities
	(in thousands)
Balance on January 1, 2022	$	1,678	$	11,834
Billings or revenue recognized that was included in the beginning balance	(788)		(9,153)
Changes in contract assets or contract liabilities, net of reclassification to receivables	5,091		(756)
Cumulative catch-up adjustment arising from changes in estimates to complete	—		2,163
Cumulative catch-up adjustment arising from contract modification	—		356
Changes in costs to fulfill and amortization of commission costs	(479)		—
Changes in contract commission costs	—		487
Balance on June 30, 2022	$	5,502	$	4,931