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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The consolidated financial statements include all the Company's direct and indirect wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of normal and recurring adjustments) necessary to fairly present the consolidated financial position and the results of operations, changes in stockholders' equity and cash flows of the Company as of the dates and for the interim periods presented. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2019, including the notes thereto, set forth in the Company’s 2019 Annual Report on Form 10-K.
Use of estimates Use of estimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2020.
Recently issued accounting pronouncements
Recently issued accounting pronouncements

Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other
receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. On January 1, 2020, the Company adopted the standard and all the related amendments, using a modified retrospective approach. The adoption of the standard resulted in a cumulative-effect adjustment to retained earnings of approximately $0.3 million. The adoption of the standard did not have a significant impact on the Company’s consolidated earnings or cash flows.
Revenue recognition
Revenue recognition

The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to receive in exchange for those goods or services.  

Disaggregation of Revenue

The Company currently earns revenues from three main sources: (i) transaction-based fees, which consist of interactive government services (“IGS”), driver history records (“DHR”) and other transaction-based revenues, (ii) development services and (iii) fixed-fee services.

The following table summarizes, by reportable and operating segment, the principal activities from which the Company generates revenue for the three months ended June 30 (in thousands):

2020State EnterprisePaymentsAll OtherConsolidated
Total
IGS$50,055  $—  $—  $50,055  
DHR20,607  —  —  20,607  
Other—  9,713  4,838  14,551  
Total transaction-based70,662  9,713  4,838  85,213  
Development services5,904  —  —  5,904  
Fixed-fee services1,238  —  1,234  2,472  
Total revenues$77,804  $9,713  $6,072  $93,589  
2019State EnterprisePaymentsAll OtherConsolidated
Total
IGS$47,595  $—  $—  $47,595  
DHR23,396  —  —  23,396  
Other—  9,884  5,996  15,880  
Total transaction-based70,991  9,884  5,996  86,871  
Development services2,642  —  —  2,642  
Fixed-fee services1,238  —  815  2,053  
Total revenues$74,871  $9,884  $6,811  $91,566  
The following table summarizes, by reportable and operating segment, the principal activities from which the Company generates revenue for the six months ended June 30 (in thousands):


2020State EnterprisePaymentsAll OtherConsolidated
Total
IGS$98,243  $—  $—  $98,243  
DHR43,456  —  —  43,456  
Other—  19,729  10,304  30,033  
Total transaction-based141,699  19,729  10,304  171,732  
Development services8,041  —  —  8,041  
Fixed-fee services2,475  —  2,460  4,935  
Total revenues$152,215  $19,729  $12,764  $184,708  
2019State EnterprisePaymentsAll OtherConsolidated
Total
IGS$90,347  $—  $—  $90,347  
DHR47,081  —  —  47,081  
Other—  19,237  11,529  30,766  
Total transaction-based137,428  19,237  11,529  168,194  
Development services4,821  —  —  4,821  
Fixed-fee services2,475  —  1,257  3,732  
Total revenues$144,724  $19,237  $12,786  $176,747  

Transaction-based Revenues

Under the majority of contracts with its government partners, the Company agrees to provide continuous access to digital government services that allow consumers to complete secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report, in exchange for transaction-based fees. The Company satisfies its performance obligation by providing access to applications over the contractual term and by processing transactions as they are initiated by consumers. The performance obligation is satisfied when the Company provides the access and it is used by the consumer.

Development Services Revenues

The Company earns development services revenues primarily under contracts to provide software development and other time and materials services to its government partners. These contracts are generally not longer than one year in duration. For services provided under development contracts, the performance obligation is either satisfied over time or at a point in time upon customer acceptance.

Under its development services contracts, the Company typically does not have significant future performance obligations that extend beyond one year. As of June 30, 2020, the total transaction price allocated to unsatisfied performance obligations was approximately $6.7 million.

Fixed-fee Services Revenues

Fixed-fee services revenues primarily consist of revenues from providing recurring fixed fee digital government services to the Company’s government partner in Indiana and other contracts for software-as-a-service (“SaaS”) subscription-based services in the Company's software & services businesses. As of June 30, 2020, the Company’s Indiana contract had unsatisfied performance obligations for one month. The total transaction price allocated to the unsatisfied performance obligation is not significant.

The subscription-based service contracts in the Company's software & services businesses are a fixed-fee single performance obligation to provide government partners continuous access to digital services. As of June 30, 2020, the unsatisfied
performance obligations related to these contracts was $18.8 million, which will be recognized over the term of such contracts, generally 1 - 5 years.

Unearned Revenues

Unearned revenues at June 30, 2020 and December 31, 2019 were approximately $4.6 million and $3.8 million, respectively. The change in the deferred revenue balance for the six months ended June 30, 2020 is primarily driven by $5.2 million of cash payments received or due in advance of satisfying the Company's performance obligations, offset by $4.4 million of revenues recognized that were previously included in deferred revenue.

Trade accounts receivable

The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, and its relationship with, and the expected future economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. The Company’s allowance for doubtful accounts at June 30, 2020 and December 31, 2019 was approximately $1.8 million and $1.2 million, respectively.