DISAGGREGATION OF REVENUE

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

DISAGGREGATION OF REVENUE

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 year ended December 31, 2021	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues:
Software licenses and royalties	$	62,847	$	11,605	$	74,452
Subscriptions	—		784,435		784,435
Software services	—		209,391		209,391
Maintenance	—		474,287		474,287
Appraisal services	—		27,788		27,788
Hardware and other	21,934		—		21,934
Total	$	84,781	$	1,507,506	$	1,592,287

For the year ended December 31, 2020	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues:
Software licenses and royalties	$	62,029	$	11,135	$	73,164
Subscriptions	—		350,648		350,648
Software services	—		186,409		186,409
Maintenance	—		467,513		467,513
Appraisal services	—		21,127		21,127
Hardware and other	17,802		—		17,802
Total	$	79,831	$	1,036,832	$	1,116,663

For the year ended December 31, 2019	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues:
Software licenses and royalties	$	84,900	$	15,305	$	100,205
Subscriptions	—		296,352		296,352
Software services	—		213,061		213,061
Maintenance	—		430,318		430,318
Appraisal services	—		23,479		23,479
Hardware and other	23,012		—		23,012
Total	$	107,912	$	978,515	$	1,086,427

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. Non-recurring revenues are derived from all other revenue categories.

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

For the year ended December 31, 2021	Enterprise Software		Appraisal and Tax		NIC		Corporate		Totals
Recurring revenues	$	845,219	$	68,250	$	345,252	$	—	$	1,258,721
Non-recurring revenues	253,933		52,941		23,665		3,027		333,566
Intercompany	22,921		67		—		(22,988)		—
Total revenues	$	1,122,073	$	121,258	$	368,917	$	(19,961)	$	1,592,287

For the year ended December 31, 2020	Enterprise Software		Appraisal and Tax		NIC		Corporate		Totals
Recurring revenues	$	755,508	$	62,652	$	—	$	—	$	818,160
Non-recurring revenues	246,390		52,102		—		11		298,503
Intercompany	19,061		70		—		(19,131)		—
Total revenues	$	1,020,959	$	114,824	$	—	$	(19,120)	$	1,116,663

For the year ended December 31, 2019	Enterprise Software		Appraisal and Tax		NIC		Corporate		Totals
Recurring revenues	$	672,804	$	53,866	$	—	$	—	$	726,670
Non-recurring revenues	287,225		66,276		—		6,256		359,757
Intercompany	15,290		206		—		(15,496)		—
Total revenues	$	975,319	$	120,348	$	—	$	(9,240)	$	1,086,427

DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS

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

	December 31, 2021		December 31, 2020
Enterprise Software	$	462,010	$	422,742
Appraisal and Tax	35,528		36,945
NIC	11,215		—
Corporate	1,814		1,691
Totals	$	510,567	$	461,378

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

	2021
Balance at beginning of year	$	461,378
Deferral of revenue	1,177,744
Recognition of deferred revenue	(1,128,555)
Balance at end of year	$	510,567

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 December 31, 2021 was $1.80 billion, of which we expect to recognize approximately 47% as revenue over the next 12 months and the remainder thereafter.

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 generally three to seven years. Deferred commissions were $38.1 million and $32.3 million as of December 31, 2021 and 2020, respectively. Amortization expense was $13.4 million, $11.9 million, and $11.5 million for the twelve months ended December 31, 2021, 2020, and 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 in the accompanying consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income.