Annual report pursuant to Section 13 and 15(d)

Contract Assets and Liabilities

v3.23.1
Contract Assets and Liabilities
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Contract Assets and Liabilities
6. Contract Assets and Liabilities
The components of contract assets and contract liabilities consisted of the following:
December 31, December 31,
2022 2021
(in thousands)
Contract assets - current
Unbilled revenue $ 5,706  $ 788 
Contract assets —  890 
Total contract assets - current $ 5,706  $ 1,678 
Contract assets - long-term
Unbilled revenue - long-term $ 1,287  $ — 
Contract assets - long-term 681  — 
Total contract assets - long-term(1)
$ 1,968  $ — 
Contract liabilities - current
Deferred revenue - short-term $ 6,783  $ 11,082 
Other contract liabilities - short-term —  184 
Total contract liabilities - current $ 6,783  $ 11,266 
Deferred revenue - long-term —  568 
Other contract liabilities - long-term 109  — 
Total contract liabilities - long-term $ 109  $ 568 
(1) Total contract assets - long term is included in other assets in the consolidated balance sheets.
Deferred revenue and other contract liabilities are reported as contract liabilities in the accompanying 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 year ended December 31, 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) (10,576)
Changes in contract assets or contract liabilities, net of reclassification to receivables 6,992  2,317 
Cumulative catch-up adjustment arising from changes in estimates to complete —  2,778 
Cumulative catch-up adjustment arising from contract modification —  614 
Changes in costs to fulfill and amortization of commission costs (208) — 
Changes in contract commission costs —  (75)
Balance on December 31, 2022 $ 7,674  $ 6,892