Disaggregation of Revenue

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue/Deferred Revenue and Performance Obligations

Deferred Commissions

Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three to seven years. Deferred commissions were $20.2 million and $19.3 million as of March 31, 2018, and December 31, 2017, respectively. Amortization expense was $3.5 million and $2.6 million for the three months ended March 31, 2018, and 2017, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses in the accompanying condensed consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.

Disaggregation of Revenue

The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows.

Timing of Revenue Recognition

Timing of revenue recognition by revenue category during the period is as follows:

For the three months ended March 31, 2018
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	19,063	$	3,713	$	22,776
Subscriptions	—		49,028		49,028
Software services	—		45,939		45,939
Maintenance	—		93,897		93,897
Appraisal services	—		5,394		5,394
Hardware and other	4,140		—		4,140
Total	$	23,203	$	197,971	$	221,174

For the three months ended March 31, 2017
As Adjusted	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	17,115	$	4,643	$	21,758
Subscriptions	—		39,862		39,862
Software services	—		42,496		42,496
Maintenance	—		86,307		86,307
Appraisal services	—		6,612		6,612
Hardware and other	2,694		—		2,694
Total	$	19,809	$	179,920	$	199,729

Recurring Revenue

The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one to 10 years, but are typically contracted for initial periods of three to five years, providing a significant source of recurring revenues on an annual basis. Non-recurring revenues are derived for all other revenue categories.

Recurring revenues and non-recurring revenues recognized during the period are as follows:

For the three months ended March 31, 2018
	Enterprise Software		Appraisal and Tax		Corporate			Totals
Recurring revenues	$	134,496	$	8,429	$	—		$	142,925
Non-recurring revenues	64,775		13,134		340			78,249
Intercompany	3,237		—		(3,237		)	—
Total revenues	$	202,508	$	21,563	$	(2,897	)	$	221,174

For the three months ended March 31, 2017
As Adjusted	Enterprise Software		Appraisal and Tax		Corporate			Totals
Recurring revenues	$	119,687	$	6,482	$	—		$	126,169
Non-recurring revenues	60,949		12,611		—			73,560
Intercompany	2,163		—		(2,163		)	—
Total revenues	$	182,799	$	19,093	$	(2,163	)	$	199,729

Deferred Revenue and Performance Obligations

Total deferred revenue, including long-term, by segment is as follows:

	March 31, 2018		December 31, 2017
			(As Adjusted)
Enterprise Software	$	249,104	$	277,198
Appraisal and Tax	17,497		20,387
Corporate	$	2,172	$	2,302
Totals	268,773		299,887

The opening balance of total deferred revenue, including long-term, was $290.1 million (as adjusted) as of January 1, 2017.

Changes in total deferred revenue, including long-term, were as follows:

	March 31, 2018
Balance, beginning of period December 31, 2017 (As Adjusted).	$	299,887
Deferral of revenue	160,881
Recognition of deferred revenue	(191,995		)
Balance, end of period	$	268,773

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate amount of transaction price allocated to the remaining performance obligations represent contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of March 31, 2018 was $1.2 billion, of which we expect to recognize approximately 50% as revenue over the next 12 months and the remainder thereafter.