General form of registration statement for all companies including face-amount certificate companies

Contract Assets and Liabilities

v3.21.2
Contract Assets and Liabilities
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Contract Assets And Liabilities [Abstract]    
Contract Assets and Liabilities
6.
Contract Assets and Liabilities
The components of contract assets and contract liabilities consisted of the following:​​​​​​​
    
September 30,
2021
     
December 31,
2020
  
    
(in thousands)
  
Contract assets - current
      
Unbilled revenue
    $ 649    $ 749
Other contract assets
      1,664      3,047
  
 
 
     
 
 
  
Total contract assets - current
    $ 2,313    $ 3,796
  
 
 
     
 
 
  
Contract liabilities - current
      
Deferred revenue - short-term
    $ 14,199    $ 14,030
Other contract liabilities
      254      507
  
 
 
     
 
 
  
Total contract liabilities - current
    $ 14,453    $ 14,537
  
 
 
     
 
 
  
Contract liabilities - long-term
    $ —      $ —  
Deferred revenue - long-term
      683      2,559
  
 
 
     
 
 
  
Total contract liabilities - long-term
    $ 683    $ 2,559
  
 
 
     
 
 
  
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 reported as of January 1, 2021 were as follows:
 
 
  
Contract
Assets
 
  
Contract
Liabilities
 
 
  
(in thousands)
 
Balance as of January 1, 2021
  
$
3,796
  
  
$
17,096
  
Reclassification of the beginning contract liabilities to revenue
  
 
—  
 
  
 
(8,375
) 
Cash payments in advance of revenue recognition
  
 
—  
 
  
 
8,268
  
Reclassification of the beginning contract assets to receivables
  
 
(740
) 
  
 
—  
 
Cumulative
catch-up
adjustment arising from changes in estimates of transaction price
  
 
—  
 
  
 
(1,663
) 
Changes of contract costs
  
 
(743
) 
  
 
(190
) 
 
  
 
 
 
  
 
 
 
Balance as of September 30, 2021
  
$
2,313
  
  
$
15,136
  
 
  
 
 
 
  
 
 
 
5.
Contract Assets and Liabilities
The components of contract assets and contract liabilities consist of the following:
 
    
December 31,
  
    
2020
     
2019
  
    
(in thousands)
  
Contract assets - current
                  
Unbilled revenue
    $ 749      $ —    
Contract assets
      3,047        —    
    
 
 
     
 
 
  
Total contract assets - current
    $ 3,796      $ —    
    
 
 
     
 
 
  
Contract liabilities - current
                  
Deferred revenue - short-term
    $ 14,030      $ 7,952  
Contract liabilities
      507        —    
    
 
 
     
 
 
  
Total contract liabilities - current
    $ 14,537      $ 7,952  
    
 
 
     
 
 
  
Contract liabilities - long-term
                  
Deferred revenue - long-term
      2,559        —    
    
 
 
     
 
 
  
Total contract liabilities - long-term
    $ 2,559      $ —    
    
 
 
     
 
 
  
Contract Liabilities
Contract liabilities are recorded as deferred revenue and contract cost liabilities on the accompanying consolidated balance sheets and include payments received in advance of performance obligations under the
contract and are realized when the associated revenue is recognized under the contract. Changes in short-term contract liabilities as of January 1, 2020 were as follows:​​​​​​​
 
Balance on January 1, 2020
      8,166  
Revenue recognized
      (14,656 ) 
Increase due to billings
      21,027  
    
 
 
  
Balance on December 31, 2020
    $ 14,537  
    
 
 
  
​​​​​​​
All of the $8.2 million short-term contract liabilities balance outstanding as of January 1, 2020 was recognized by December 31, 2020. The December 31, 2020 contract liabilities balance of $14.5 million will be earned as services and products are transferred to the customers, and the entire balance is expected to be earned within the next twelve months.