Revenue, remaining performance obligation

[Table of Contents](#i77b271276a234b51923cb690f1158463_7)  
Prepaid expenses and other current assets consist of the following (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | September 30,2022 |  | December 31,2021 |
| Value added tax receivables |  | $ | 132,070  |  |  | $ | 93,610  |  |
| Prepaid expenses |  | 50,567  |  |  | 70,218  |  |
| Other current assets |  | 46,646  |  |  | 31,477  |  |
| Total prepaid expenses and other current assets |  | $ | 229,283  |  |  | $ | 195,305  |  |

  
Accrued liabilities consist of the following (in thousands): 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | September 30,2022 |  | December 31,2021 |
| Accrued payroll and benefits |  | $ | 137,754  |  |  | $ | 288,355  |  |
| Accrued expenses |  | 66,859  |  |  | 67,169  |  |
| Accrued sales and marketing expenses |  | 35,661  |  |  | 41,387  |  |
| Current operating lease liabilities |  | 24,173  |  |  | 22,719  |  |
| Accrued property, plant and equipment |  | 22,648  |  |  | 46,561  |  |
| Accrued professional fees |  | 21,260  |  |  | 31,457  |  |
|  |  |  |  |  |
| Other accrued liabilities |  | 75,263  |  |  | 109,667  |  |
| Total accrued liabilities |  | $ | 383,618  |  |  | $ | 607,315  |  |

  
 Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Nine Months EndedSeptember 30, |
|   |  | 2022 |  | 2021 |
| Balance at beginning of period |  | $ | 16,169  |  |  | $ | 12,615  |  |
| Charged to cost of net revenues |  | 11,359  |  |  | 13,400  |  |
| Actual warranty expenditures |  | (11,109) |  |  | (11,040) |  |
| Balance at end of period |  | $ | 16,419  |  |  | $ | 14,975  |  |

  
Deferred revenues consist of the following (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | September 30,2022 |  | December 31,2021 |
| Deferred revenues - current |  | $ | 1,286,867  |  |  | $ | 1,152,870  |  |
| Deferred revenues - long-term 1 |  | $ | 152,070  |  |  | $ | 136,684  |  |

  
1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet  
During the three months ended September 30, 2022 and 2021, we recognized $890.3 million and $1,015.9 million of net revenues, respectively, of which $156.5 million and $122.2 million was included in the deferred revenues balance at December 31, 2021 and 2020, respectively.  
During the nine months ended September 30, 2022 and 2021, we recognized $2,833.1 million and $2,921.5 million of net revenues, respectively, of which $519.8 million and $382.4 million was included in the deferred revenues balance at December 31, 2021 and 2020, respectively.  
Our unfulfilled performance obligations, including deferred revenues and backlog, as of September 30, 2022 were $1,442.5 million. These performance obligations are expected to be fulfilled over six months to five years.  
Note 4. Goodwill and Intangible Assets   
During the three months ended September 30, 2022, we completed an immaterial business combination which increased goodwill and existing technology intangible assets.15
