Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to the Company’s customers. The Company records contract assets when revenue is recognized prior to invoicing, and a contract liability when revenue is recognized subsequent to invoicing.

The contract assets are primarily related to the Company’s fixed fee IP licensing arrangements and rights to consideration for performance obligations delivered but not billed as of September 30, 2020. The contract assets are transferred to receivables when the billing occurs.

The Company’s contract balances were as follows:


	As of
(In thousands)	September 30, 2020		December 31, 2019
Unbilled receivables	$	401,745	$	528,069
Deferred revenue	$	14,950	$	11,947

During the nine months ended September 30, 2020, the Company recognized $8.5 million of revenue that was included in the contract balances as of December 31, 2019.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but unsatisfied performance obligations were approximately $24.3 million as of September 30, 2020, which the Company primarily expects to recognize over the next 2 years.