XML 22 R11.htm IDEA: XBRL DOCUMENT v3.20.2
REVENUE
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
For the quarter ended June 30, 2020 and 2019, we recognized non-lease revenue from maintenance services of $238 million and $236 million, respectively, included in lease & related maintenance and rental revenues. We recognized $478 million and $475 million for the six months ended June 30, 2020 and 2019, respectively.
Disaggregation of Revenue

The following tables disaggregate our revenue recognized by primary geographical market by our FMS, SCS and DTS reportable business segments, as well as by industry for SCS. Refer to Note 19, "Segment Reporting," for the disaggregation of our revenue by major products/service lines.

Primary Geographical Markets
Three months ended June 30, 2020
FMSSCSDTSEliminationsTotal
(In thousands)
United States$1,081,448  $441,332  $293,944  $(112,925) $1,703,799  
Canada60,480  40,288  —  (3,232) 97,536  
Europe56,249  —  —  —  56,249  
Mexico—  37,698  —  —  37,698  
Total Revenues$1,198,177  $519,318  $293,944  $(116,157) $1,895,282  
Three months ended June 30, 2019
FMSSCSDTSEliminationsTotal
(In thousands)
United States$1,238,631  $539,623  $362,244  $(152,010) $1,988,488  
Canada76,390  53,545  —  (5,462) 124,473  
Europe75,889  —  —  —  75,889  
Mexico—  56,143  —  —  56,143  
Singapore—  —  —  —  —  
Total Revenues$1,390,910  $649,311  $362,244  $(157,472) $2,244,993  
Six months ended June 30, 2020
FMSSCSDTSEliminationsTotal
(In thousands)
United States$2,278,969  $963,857  $628,832  $(250,220) $3,621,438  
Canada131,245  93,840  —  (8,203) 216,882  
Europe128,200  —  —  —  128,200  
Mexico—  90,068  —  —  90,068  
Total Revenues$2,538,414  $1,147,765  $628,832  $(258,423) $4,056,588  
Six months ended June 30, 2019
FMSSCSDTSEliminationsTotal
(In thousands)
United States$2,437,574  $1,069,016  $711,865  $(303,173) $3,915,282  
Canada150,404  103,253  —  (10,863) 242,794  
Europe154,531  —  —  —  154,531  
Mexico—  109,420  —  —  109,420  
Singapore—  3,293  —  —  3,293  
Total Revenues$2,742,509  $1,284,982  $711,865  $(314,036) $4,425,320  

Industry

Our SCS business segment included revenue from the below industries:
Three months ended June 30,Six months ended June 30,
2020201920202019
(In thousands)
Automotive$147,749  $261,288  $397,674  $514,967  
Technology and healthcare84,766  110,054  175,899  223,723  
Consumer package goods and retail236,499  225,582  466,431  442,679  
Industrial and other50,304  52,387  107,761  103,613  
Total SCS Revenues$519,318  $649,311  $1,147,765  $1,284,982  

Contract Balances

We record a receivable related to revenue recognized when we have an unconditional right to invoice. Refer to Note 4 for further information regarding our receivables.
Our contract liabilities consist of deferred revenue, which relates to payments received in advance of performance under the contract. Changes in contract liabilities are due to the collection of cash or the satisfaction of our performance obligation under the contract. Deferred revenue related to the maintenance services component of our ChoiceLease product line was $594 million and $587 million as of June 30, 2020 and December 31, 2019, respectively. Revenue recognized during the six months ended June 30, 2020 was $103 million for the amounts recorded as deferred revenue at the beginning of the year. In addition, we deferred consideration of $117 million during the six months ended June 30, 2020, which was received in advance of performance resulting in an increase in deferred revenue.

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”). Contracted not recognized revenue includes deferred revenue and amounts for full service ChoiceLease maintenance revenue that will be recognized as revenue in future periods as we provide maintenance services to our customers. Contracted not recognized revenue excludes variable consideration as it is not included in the transaction price consideration allocated at contract inception, as well as revenues from our lease component of our ChoiceLease product and commercial rental product. Contracted not recognized revenue was $2.8 billion as of June 30, 2020. As a practical expedient, we do not disclose information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less, and we do not disclose information about remaining performance obligations when we have the right to invoice the customer and the revenue recognized corresponds directly with the value to the customer of our performance completed to date, such as our SCS and DTS contracts.

Costs to Obtain and Fulfill a Contract

We capitalize incremental sales commissions paid as a result of obtaining ChoiceLease, SCS and DTS service contracts as contract costs. Capitalized sales commissions were $94 million and $105 million as of June 30, 2020 and December 31, 2019, respectively. Capitalized sales commissions include initial direct costs of our leases of $49 million and $55 million as of June 30, 2020 and December 31, 2019, respectively, related to incremental sales commissions paid to our sales force as a result of obtaining ChoiceLease contracts. Capitalized sales commissions are presented in “Sales-type leases and other assets” in our Condensed Consolidated Balance Sheets.
For both the quarters ended June 30, 2020 and 2019, sales commission expense was $11 million. For both the six months ended June 30, 2020 and 2019, sales commission expense was $22 million.