CONTRACT ASSETS AND DEFERRED REVENUE |
6 Months Ended | ||||||||||||||||||||||||||||||
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Jul. 03, 2026 | |||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||
| CONTRACT ASSETS AND DEFERRED REVENUE | NOTE 4: CONTRACT ASSETS AND DEFERRED REVENUE Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Contract assets and deferred revenue consisted of the following:
Contract assets and the non-current portion of deferred revenue are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities,” respectively, on the condensed consolidated balance sheets. Revenue recognized during the three months ended July 3, 2026 and June 27, 2025 that was included within the deferred revenue balance at January 1, 2026 and January 1, 2025, was $6.1 million and $6.3 million, respectively. Revenue recognized during the six months ended July 3, 2026 and June 27, 2025 that was included within the deferred revenue balance at January 1, 2026 and January 1, 2025, was $22.6 million and $11.6 million, respectively. Remaining performance obligations represent contracted revenues that have not yet been recognized and include deferred revenue and unbilled amounts that will be recognized as revenue in the future. The aggregate balance of the Company’s remaining performance obligations as of July 3, 2026 was $587.6 million, 73% of which is expected to be recognized as revenue over the next 12 months and the remainder thereafter. Refer to Note 11, “Segment Information” for disaggregated revenue information. |
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