Disaggregation of Revenue

9 Months Ended

Sep. 30, 2020

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 $31.3 million and $29.8 million as of September 30, 2020, and December 31, 2019, respectively. Amortization expense was $4.2 million and $11.7 million for the three and nine months ended September 30, 2020, respectively, and $4.4 million and $12.3 million for the three and nine months ended September 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 September 30, 2020
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	16,777	$	3,160	$	19,937
Subscriptions	—		89,290		89,290
Software services	—		47,946		47,946
Maintenance	—		117,979		117,979
Appraisal services	—		5,394		5,394
Hardware and other	5,200		—		5,200
Total	$	21,977	$	263,769	$	285,746

For the three months ended September 30, 2019
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	21,362	$	4,017	$	25,379
Subscriptions	—		75,272		75,272
Software services	—		54,997		54,997
Maintenance	—		109,833		109,833
Appraisal services	—		6,008		6,008
Hardware and other	3,911		—		3,911
Total	$	25,273	$	250,127	$	275,400

For the nine months ended September 30, 2020
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	47,311	$	8,388	$	55,699
Subscriptions	—		256,651		256,651
Software services	—		143,733		143,733
Maintenance	—		349,104		349,104
Appraisal services	—		15,853		15,853
Hardware and other	12,338		—		12,338
Total	$	59,649	$	773,729	$	833,378

For the nine months ended September 30, 2019
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	54,074	$	13,773	$	67,847
Subscriptions			216,022		216,022
Software services	—		160,841		160,841
Maintenance	—		316,674		316,674
Appraisal services	—		17,455		17,455
Hardware and other	18,751		—		18,751
Total	$	72,825	$	724,765	$	797,590

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 September 30, 2020
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	191,242	$	16,026	$	—	$	207,268
Non-recurring revenues	65,569		12,909		—		78,478
Intercompany	5,128		38		(5,166)		—
Total revenues	$	261,939	$	28,973	$	(5,166)	$	285,746

For the three months ended September 30, 2019
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	171,352	$	13,753	$	—	$	185,105
Non-recurring revenues	71,593		18,716		(14)		90,295
Intercompany	3,995		34		(4,029)		—
Total revenues	$	246,940	$	32,503	$	(4,043)	$	275,400

For the nine months ended September 30, 2020
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	559,191	$	46,563	$	—	$	605,754
Non-recurring revenues	187,142		40,480		2		227,624
Intercompany	13,662		58		(13,720)		—
Total revenues	$	759,995	$	87,101	$	(13,718)	$	833,378

For the nine months ended September 30, 2019
	Enterprise Software		Appraisal and Tax		Corporate		Totals
Recurring revenues	$	492,822	$	39,874	$	—	$	532,696
Non-recurring revenues	205,153		53,605		6,136		264,894
Intercompany	11,055		187		(11,242)		—
Total revenues	$	709,030	$	93,666	$	(5,106)	$	797,590

Deferred Revenue and Performance Obligations

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

	September 30, 2020		December 31, 2019
Enterprise Software	$	410,796	$	375,838
Appraisal and Tax	23,764		35,487
Corporate	2,062		1,369
Totals	$	436,622	$	412,694

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

	Nine months ended September 30, 2020
Balance as of December 31, 2019	$	412,694
Deferral of revenue	798,656
Recognition of deferred revenue	(774,728)
Balance as of September 30, 2020	$	436,622

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 September 30, 2020, was $1.55 billion, of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter.