Table of Contents ENPHASE ENERGY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Contract Balances Receivables, and contract assets and contract liabilities from contracts with customers, are as follows: December 31, December 31, 2023 2022 (In thousands) Receivables $ 445,959 $ 440,896 Short-term contract assets (Prepaid expenses and other assets) 40,241 32,130 Long-term contract assets (Other assets) 124,190 100,991 Short-term contract liabilities (Deferred revenues, current) 118,300 90,747 Long-term contract liabilities (Deferred revenues, non-current) 369,172 281,613 The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include deferred product costs and commissions associated with the deferred revenue and will be amortized along with the associated revenue. The Company had no asset impairment charges related to contract assets for the year ended December 31, 2023. Significant changes in the balances of contract assets (prepaid expenses and other assets) as of December 31, 2023 are as follows (in thousands): Contract Assets Contract Assets, beginning of period $ 133,121 Amount recognized (38,011) Increased due to shipments 69,321 Contract Assets, end of period $ 164,431 Contract liabilities are recorded as deferred revenue on the accompanying consolidated balance sheets and include payments received in advance of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. Significant changes in the balances of contract liabilities (deferred revenues) as of December 31, 2023 are as follows (in thousands): Contract Liabilities Contract Liabilities, beginning of period $ 372,360 Revenue recognized (109,687) Increased due to billings 224,799 Contract Liabilities, end of period $ 487,472 Enphase Energy, Inc. | 2023 Form 10-K | 84