Quarterly report pursuant to Section 13 or 15(d)

Contract Assets and Liabilities

v3.22.2
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