Deferred Revenue and Performance Obligations

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Performance Obligations

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 $30.2 million and $29.8 million as of June 30, 2020, and December 31, 2019, respectively. Amortization expense was $3.6 million and $7.5 million for the three and six months ended June 30, 2020, respectively, and $4.1 million and $7.9 million for the three and six months ended June 30, 2019, 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 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:

For the three months ended June 30, 2020
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	14,468	$	2,557	$	17,025
Subscriptions	—		85,638		85,638
Software services	—		43,654		43,654
Maintenance	—		116,760		116,760
Appraisal services	—		4,696		4,696
Hardware and other	3,318		—		3,318
Total	$	17,786	$	253,305	$	271,091

For the three months ended June 30, 2019
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	15,802	$	4,873	$	20,675
Subscriptions	—		73,475		73,475
Software services	—		57,401		57,401
Maintenance	—		106,689		106,689
Appraisal services	—		6,233		6,233
Hardware and other	10,651		—		10,651
Total	$	26,453	$	248,671	$	275,124

For the six months ended June 30, 2020
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	30,534	$	5,228	$	35,762
Subscriptions	—		167,361		167,361
Software services	—		95,787		95,787
Maintenance	—		231,125		231,125
Appraisal services	—		10,459		10,459
Hardware and other	7,138		—		7,138
Total	$	37,672	$	509,960	$	547,632

For the six months ended June 30, 2019
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	32,712	$	9,756	$	42,468
Subscriptions	—		140,750		140,750
Software services	—		105,844		105,844
Maintenance	—		206,841		206,841
Appraisal services	—		11,447		11,447
Hardware and other	14,840		—		14,840
Total	$	47,552	$	474,638	$	522,190

Recurring Revenue

The majority of our revenue is comprised of revenues from maintenance and subscriptions, which we consider to be recurring revenue. 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. We consider all other revenue categories to be non-recurring revenues.

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

For the three months ended June 30, 2020
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	186,464	$	15,934	$	—	$	202,398
Non-recurring revenues	56,882		11,811		—		68,693
Intercompany	4,533		2		(4,535)		—
Total revenues	$	247,879	$	27,747	$	(4,535)	$	271,091

For the three months ended June 30, 2019
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	167,027	$	13,137	$	—	$	180,164
Non-recurring revenues	70,452		18,355		6,153		94,960
Intercompany	3,576		84		(3,660)		—
Total revenues	$	241,055	$	31,576	$	2,493	$	275,124

For the six months ended June 30, 2020
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	367,949	$	30,537	$	—	$	398,486
Non-recurring revenues	121,573		27,571		2		149,146
Intercompany	8,534		20		(8,554)		—
Total revenues	$	498,056	$	58,128	$	(8,552)	$	547,632

For the six months ended June 30, 2019
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	321,470	$	26,121	$	—	$	347,591
Non-recurring revenues	133,560		34,889		6,150		174,599
Intercompany	7,060		153		(7,213)		—
Total revenues	$	462,090	$	61,163	$	(1,063)	$	522,190

Deferred Revenue and Performance Obligations

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

	June 30, 2020		December 31, 2019
Enterprise Software	$	396,405	$	375,838
Appraisal and Tax	25,437		35,487
Corporate	1,362		1,369
Totals	$	423,204	$	412,694

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

	Six months ended June 30, 2020
Balance as of December 31, 2019	$	412,694
Deferral of revenue	508,126
Recognition of deferred revenue	(497,616)
Balance as of June 30, 2020	$	423,204

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 June 30, 2020, was $1.54 billion, of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter.