Deferred Commission

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

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 commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three to seven years. Deferred commissions were $21.2 million and $19.3 million (as adjusted) as of June 30, 2018, and December 31, 2017, respectively. Amortization expense was $3.7 million and $7.1 million for the three and six months ended June 30, 2018, respectively and $2.7 million and $5.3 million for the three and six months ended June 30, 2017(as adjusted), respectively. There were no indicators of impairment 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 June 30, 2018
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	17,260	$	5,140	$	22,400
Subscriptions	—		53,009		53,009
Software services	—		50,674		50,674
Maintenance	—		96,076		96,076
Appraisal services	—		5,532		5,532
Hardware and other	8,369		—		8,369
Total	$	25,629	$	210,431	$	236,060



For the six months ended June 30, 2018
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	36,323	$	8,853	$	45,176
Subscriptions	—		102,037		102,037
Software services	—		96,613		96,613
Maintenance	—		189,973		189,973
Appraisal services	—		10,926		10,926
Hardware and other	12,509		—		12,509
Total	$	48,832	$	408,402	$	457,234



For the three months ended June 30, 2017
As Adjusted	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	16,135	$	3,171	$	19,306
Subscriptions	—		40,517		40,517
Software services	—		45,860		45,860
Maintenance	—		88,811		88,811
Appraisal services	—		6,366		6,366
Hardware and other	7,903		—		7,903
Total	$	24,038	$	184,725	$	208,763



For the six months ended June 30, 2017
As Adjusted	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	33,250	$	7,814	$	41,064
Subscriptions	—		80,379		80,379
Software services	—		88,356		88,356
Maintenance	—		175,118		175,118
Appraisal services	—		12,978		12,978
Hardware and other	10,597		—		10,597
Total	$	43,847	$	364,645	$	408,492

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 June 30, 2018
	Enterprise Software		Appraisal and Tax		Corporate			Totals

Recurring revenues	$	140,432	$	8,653	$	—		$	149,085
Non-recurring revenues	68,717		13,646		4,612			86,975
Intercompany	3,086		—		(3,086		)	—
Total revenues	$	212,235	$	22,299	$	1,526		$	236,060



For the six months ended June 30, 2018
	Enterprise Software		Appraisal and Tax		Corporate			Totals

Recurring revenues	$	274,930	$	17,080	$	—		$	292,010
Non-recurring revenues	133,495		26,779		4,950			165,224
Intercompany	6,322		—		(6,322		)	—
Total revenues	$	414,747	$	43,859	$	(1,372	)	$	457,234



For the three months ended June 30, 2017
As Adjusted	Enterprise Software		Appraisal and Tax		Corporate			Totals

Recurring revenues	$	122,327	$	7,001	$	—		$	129,328
Non-recurring revenues	62,016		12,795		4,624			79,435
Intercompany	2,486		—		(2,486		)	—
Total revenues	$	186,829	$	19,796	$	2,138		$	208,763



For the six months ended June 30, 2017
As Adjusted	Enterprise Software		Appraisal and Tax		Corporate			Totals

Recurring revenues	$	242,014	$	13,483	$	—		$	255,497
Non-recurring revenues	122,964		25,407		4,624			152,995
Intercompany	4,649		—		(4,649		)	—
Total revenues	$	369,627	$	38,890	$	(25	)	$	408,492

Deferred Revenue and Performance Obligations

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



	June 30, 2018		December 31, 2017
			As Adjusted
Enterprise Software	$	299,332	$	277,198
Appraisal and Tax	15,199		20,387
Corporate	2,338		2,302
Totals	$	316,869	$	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:



	June 30, 2018
Balance, beginning of period December 31, 2017 (As Adjusted)	$	299,887
Deferral of revenue	414,396
Recognition of deferred revenue	(397,414		)
Balance, end of period	$	316,869

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 June 30, 2018 was $1.2 billion, of which we expect to recognize approximately 51% as revenue over the next 12 months and the remainder thereafter.