Disaggregation of Revenue

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Deferred CommissionsSales 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 $23.6 million and $21.9 million as of March 31, 2019, and December 31, 2018, respectively. Amortization expense was $3.8 million for the three months ended March 31, 2019, and $3.5 million for the three months ended March 31, 2018. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses for the current portion and non-current other assets for the long-term portion 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 (in thousands):

For the three months ended March 31, 2019
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	16,910	$	4,883	$	21,793
Subscriptions	—		67,275		67,275
Software services	—		48,443		48,443
Maintenance	—		100,152		100,152
Appraisal services	—		5,214		5,214
Hardware and other	4,189		—		4,189
Total	$	21,099	$	225,967	$	247,066

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

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 (in thousands):

For the three months ended March 31, 2019
	Enterprise Software		Appraisal and Tax		Corporate			Totals
Recurring revenues	$	158,654	$	8,773	$	—		$	167,427
Non-recurring revenues	65,168		14,474		(3		)	79,639
Intercompany	3,553		—		(3,553		)	—
Total revenues	$	227,375	$	23,247	$	(3,556	)	$	247,066

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

Deferred Revenue and Performance Obligations

Total deferred revenue, including long-term, by segment is as follows (in thousands):

	March 31, 2019		December 31, 2018
Enterprise Software	$	298,184	$	327,521
Appraisal and Tax	21,589		20,018
Corporate	569		3,397
Totals	$	320,342	$	350,936

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

	March 31, 2019
Balance, beginning of period December 31, 2018	$	350,936
Deferral of revenue	167,975
Recognition of deferred revenue	(198,569		)
Balance, end of period	$	320,342

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate amount of transaction price allocated to the remaining performance obligations represents 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, 2019, was $1.3 billion, of which we expect to recognize approximately 50% as revenue over the next 12 months and the remainder thereafter.