Receivables, Contract Liabilities and Performance Obligations

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Receivables, Contract Liabilities and Performance Obligations

Receivables, Contract Liabilities and Performance Obligations

Contract Balances

The following table provides information about receivables and contract liabilities as of December 31, 2022 and 2021 (in thousands):

	December 31,
	2022		2021
Current receivables, which are included in “Accounts receivable, net”	$	3,272,371	$	2,936,732
Non-current receivables, which are included in “Other assets”	161,837		147,139
Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities”	$	102,057	$	116,067

Significant changes in the contract liabilities balances during the year ended December 31, 2022 are as follows (in thousands):

	Increase (Decrease)
Balances at December 31, 2020	$	107,158
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	$	(77,622)
Cash received in advance and not recognized as revenue	$	86,531
Balances at December 31, 2021	$	116,067
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(77,334)
Cash received in advance and not recognized as revenue	63,324
Balances at December 31, 2022	$	102,057

Transaction price allocated to the remaining performance obligations

The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2022 that are expected to be recognized in the future (in thousands):

	Services
2023	$	109,824
2024	31,351
2025	14,519
2026 and thereafter	6,509
Total remaining performance obligations	$	162,203

With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, remaining performance obligations that have original expected durations of one year or less are not included in the table above.  Amounts not included in the table above have an average original expected duration of nine months. Additionally, for our time and material services contracts, whereby we have the right to consideration from a client in an amount that corresponds directly with the value to the client of our performance completed to date, we recognized revenue in the amount to which we have a right to invoice as of December 31, 2022 and do not disclose information about related remaining performance obligations in the table above. Our open time and material contracts at December 31, 2022, have an average expected duration of 23 months.

The majority of our product backlog historically has been and continues to be open cancellable purchase orders. We do not believe that backlog as of any particular date is predictive of future results, therefore we do not include performance obligations under open cancellable purchase orders, which do not qualify for revenue recognition as of December 31, 2022, in the table above.

Assets recognized for costs of obtaining a contract with a customer

Sales commissions are the only significant incremental costs incurred to obtain contracts with our clients. The majority of our contracts are completed within a one-year performance period, and for contracts with a specified term of one year or less, we recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. We record sales commissions on contracts with performance periods that exceed one year as an asset and amortize the asset to expense over the related contract performance period. As of December 31, 2022 and 2021, the related asset balance was $13,478,732 and $20,549,000, respectively. The expense is expected to be recognized over the next 36 months.