|9 Months Ended|
Dec. 31, 2017
13. Deferred Revenue
As of December 31, 2017 the balance of deferred revenue was approximately $5.2 million compared to $5.0 million as of March 31, 2017. This overall increase in the balance of deferred revenue of $0.2 million during the nine months ended December 31 2017 was comprised of an increase in deferred revenue attributable to deposits of $0.3 million, offset by a decrease in deferred revenue attributable to Comprehensive Factory Protection Plan (“FPP”) contracts of $0.1 million. Changes in deferred revenue during the nine months ended December 31, 2017 are as follows (in thousands):
Deferred revenue attributed to 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.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef