Deferred revenues

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Deferred revenues

Deferred revenues

We record deferred revenues when cash payments are received or due in advance of the fulfillment of our associated performance obligations. The opening balance of deferred revenues as of January 1, 2020 and the ending balance as of March 31, 2020, were $1.4 billion and $1.1 billion, respectively, including our current and non-current balances. For the three months ended March 31, 2020, the additions to our deferred revenues balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenues balance were primarily due to the recognition of revenues upon fulfillment of our performance obligations, both of which were in the ordinary course of business. During the three months ended March 31, 2020 and March 31, 2019, $0.8 billion and $0.9 billion of revenues, respectively, were recognized that were included in the deferred revenues balance at the beginning of the period.

As of March 31, 2020, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations is $2.3 billion, which includes our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.2 billion over the next 12 months, $0.4 billion in the subsequent 12-month period, and the remainder thereafter. This balance does not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee.