Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue:

	Three Months Ended						Six Months Ended
(in thousands, except percentages)	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Revenue:
Lease licenses	$	113,209		$	100,004		$	158,083		$	169,260
Perpetual licenses	56,132			70,495			99,088			124,283
Software licenses	169,341			170,499			257,171			293,543
Maintenance	203,179			185,118			403,667			366,579
Service	13,141			13,018			29,808			25,643
Maintenance and service	216,320			198,136			433,475			392,222
Total revenue	$	385,661		$	368,635		$	690,646		$	685,765
Direct revenue, as a percentage of total revenue	78.1		%	79.7		%	76.2		%	75.4		%
Indirect revenue, as a percentage of total revenue	21.9		%	20.3		%	23.8		%	24.6		%

Our software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract.

Deferred Revenue

Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer 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 six months ended June 30, 2020 and 2019 were as follows:

(in thousands)	2020		2019
Beginning balance – January 1	$	365,274	$	343,174
Acquired deferred revenue	1,405		3,266
Deferral of revenue	661,790		675,209
Recognition of revenue	(690,646)		(685,765)
Currency translation	(1,635)		(500)
Ending balance – June 30	$	336,188	$	335,384

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents installment billings for periods beyond the current quarterly billing cycle. Revenue recognized during the six months ended June 30, 2020 and 2019 included amounts in deferred revenue and backlog at the beginning of the period of $343.9 million and $305.3 million, respectively.

Total revenue allocated to remaining performance obligations as of June 30, 2020 will be recognized as revenue as follows:

(in thousands)
Next 12 months	$	552,093
Months 13-24	179,925
Months 25-36	69,539
Thereafter	44,913
Total revenue allocated to remaining performance obligations	$	846,470