v3.22.2.2
Revenue from Contracts with Customers
 9 Months Ended
Oct. 01, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows:
•Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions; and
•Services include revenue from customer support, software- and cloud-based maintenance, extended warranty subscriptions, professional services, training and managed services.
The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands):
Three Months EndedNine Months Ended
October 1, 2022October 2, 2021October 1, 2022October 2, 2021
United States$215,857 $136,312 $565,420 $414,246 
Americas ex U.S.11,557 11,800 31,236 37,660 
Europe7,178 19,443 16,705 32,701 
Middle East & Africa1,223 3,905 8,940 16,165 
Asia Pacific519 771 1,023 2,203 
$236,334 $172,231 $623,324 $502,975 
Contract Asset
The primary contract asset is revenue recognized on professional services contracts where the services are transferred to the customer over time, which has yet to be billed, and is classified within accounts receivable. Amounts are billed in accordance with the agreed-upon contractual terms. The balance as of December 31, 2021 was $1.7 million of which $0.3 million remained in the Company’s Condensed Consolidated Balance Sheet as of October 1, 2022. The closing balance as of October 1, 2022 was $2.0 million of which the Company expects to bill 26% of the balance during the remainder of 2022. The contract asset balance may fluctuate depending on the timing of professional services contracts with the Company's customers.
Contract Liability
Deferred revenue consisted of the following (in thousands):
October 1,
2022		December 31,
2021
Current:
Products and services$28,713 $22,586 
Extended warranty4,974 4,892 
33,687 27,478 
Long-term:
Products and services6,477 3,137 
Extended warranty18,442 18,879 
24,919 22,016 
$58,606 $49,494 
The increase in the deferred revenue balance for the three and nine months ended October 1, 2022 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations offset by $13.0 million and $23.2 million of revenue recognized that was included in the deferred revenue balance at the beginning of each period, respectively.

Revenue allocated to remaining performance obligations (“RPOs”) represents contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but excludes variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment. RPOs were $173.1 million as of October 1, 2022, and the Company expects to recognize as revenue 35% of this amount over the next 12 months and the remainder thereafter.
Contract Costs
The Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year. As of October 1, 2022 and December 31, 2021, the unamortized balance of deferred commissions was $8.5 million and $7.4 million, respectively. For the three and nine months ended October 1, 2022, the amount of amortization was $1.0 million and $2.6 million, respectively, compared to $0.4 million and $0.7 million for the three and nine months ended October 2, 2021, respectively. There was no impairment loss in relation to the costs capitalized for either period.
Concentration of Customer Risk
No customer accounted for more than 10% of the Company’s total revenue for the three or nine months ended October 1, 2022. One customer represented 10% of the Company’s total revenue for the three months ended October 2, 2021. No customer accounted for more than 10% of the Company’s total revenue for the nine months ended October 2, 2021.
No customer represented more than 10% of the Company’s accounts receivable as of October 1, 2022. One customer represented 12% of the Company’s accounts receivable as of December 31, 2021.