Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes revenue:



	Three Months Ended
(in thousands)	March 31, 2019		March 31, 2018
Revenue:
Lease licenses	$	69,256	$	48,772
Perpetual licenses	53,788		61,274
Software licenses	123,044		110,046
Maintenance	181,461		163,896
Service	12,625		8,931
Maintenance and service	194,086		172,827
Total revenue	$	317,130	$	282,873

The Company’s software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract. The Company derived 29.5% and 23.5% of its total revenue through the indirect sales channel for the three months ended March 31, 2019 and 2018, respectively.

Deferred Revenue

Deferred revenue consists of billings made or payments received in advance of revenue recognition from software license and maintenance agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant.

The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the three months ended March 31, 2019 and 2018 were as follows:



(in thousands)	2019			2018
Beginning balance – January 1	$	343,174		$	299,730
Acquired deferred revenue	2,349			—
Deferral of revenue	318,279			307,978
Recognition of revenue	(317,130		)	(282,873		)
Currency translation	(2,396		)	4,559
Ending balance – March 31	$	344,276		$	329,394

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, and includes both deferred revenue and backlog. The Company's backlog represents installment billings for periods beyond the current quarterly billing cycle and customer orders received but not processed. Revenue recognized during the three months ended March 31, 2019 and 2018 included amounts in deferred revenue and backlog at the beginning of the period of $172.6 million and $145.8 million, respectively. Total revenue allocated to remaining performance obligations as of March 31, 2019 will be recognized as revenue as follows:



(in thousands)
Next 12 months	$	477,092
Months 13-24	119,694
Months 25-36	44,061
Thereafter	31,801
Total revenue allocated to remaining performance obligations	$	672,648