Quarterly report pursuant to Section 13 or 15(d)

Deferred Revenue

Deferred Revenue

9 Months Ended

Dec. 31, 2016

13. Deferred Revenue

As of March 31, 2016 the balance of deferred revenue was $4.4 million and the change in balance attributed to FPP contracts increased $0.6 million and the change in deposits decreased $0.4 million. Changes in deferred revenue during the nine months ended December 31, 2016 are as follows (in thousands):


FPP Balance, beginning of the period	$	2,929
FPP Billings		10,268
FPP Revenue recognized		(9,697)
Balance attributed to FPP contracts		3,500
Deposits		1,080
Deferred revenue balance, end of the period	$	4,580

Deferred revenue attributed to Comprehensive Factory Protection Plan (“FPP”) contracts represents the unearned portion of the billed agreements. FPP agreements are generally paid quarterly in advance with revenue recognized on a straight line basis over the contract period. Deposits are primarily non-refundable cash payments from distributors for orders to be delivered in the future.

- Definition

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

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