Revenue, remaining performance obligation, amount

[Table of Contents](#i2c45b01857824b67a12ec5acf3b2e95b_7)2. Revenue from Contracts with CustomersCapitalized Contract Acquisition CostsThe table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the three months ended December 31, 2021 and 2020 (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three months endedDecember 31, |
|  |  | 2021 |  | 2020 |
| Balance, beginning of period |  | $ | 77,836  |  |  | $ | 70,396  |  |
| Additional capitalized contract acquisition costs |  | 10,512  |  |  | 9,725  |  |
| Amortization of capitalized contract acquisition costs |  | (9,414) |  |  | (8,152) |  |
| Balance, end of period |  | $ | 78,934  |  |  | $ | 71,969  |  |

Amortization of capitalized contract acquisition costs was $9.4 million and $8.2 million for the three months ended December 31, 2021 and 2020, respectively, and is recorded in Sales and Marketing expense in the accompanying consolidated income statements. There was no impairment of any capitalized contract acquisition costs during any period presented.Contract BalancesTiming may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to the Company's contracts with customers. Liabilities are recorded for amounts that the Company has the unconditional right to transfer goods and services under contracts with customers. These liabilities are classified as current and non-current deferred revenue.The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the three months ended December 31, 2021 and 2020 (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three months endedDecember 31, |
|  |  | 2021 |  | 2020 |
| Balance, beginning of period |  | $ | 1,489,842  |  |  | $ | 1,272,632  |  |
| Amounts added but not recognized as revenues |  | 441,591  |  |  | 421,918  |  |
| Deferred revenue acquired through acquisition of businesses |  | 10,591  |  |  | —  |  |
| Revenues recognized related to the opening balance of deferred revenue |  | (365,525) |  |  | (335,725) |  |
| Balance, end of period |  | $ | 1,576,499  |  |  | $ | 1,358,825  |  |

Remaining Performance ObligationsRemaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. As of December 31, 2021, the total non-cancelable remaining performance obligations under the Company's contracts with customers was approximately $1.6 billion and the Company expects to recognize revenues on approximately 65.9% of these remaining performance obligations over the next 12 months, 21.1% in year two, and the remaining balance thereafter.See Note 13, Segment Information, for disaggregated revenue by significant customer and geographic region, as well as disaggregated product revenue by systems and software.3. Fair Value MeasurementsIn accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Company determines fair value using a fair value hierarchy that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances and expands disclosure about fair value measurements.Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date, essentially the exit price.10
