Revenues from Contracts

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues from Contracts

Revenues from Contracts

Disaggregated Revenue - We disaggregate our revenues into two categories: (i) software and related services; and (ii) engineered products and related services. Software and related services revenues are primarily derived from our Application Software and Network Software & Systems reportable segments. Engineered products and related services revenues are derived from all of our reportable segments except Application Software and comprise substantially all of the revenues generated in our Measurement & Analytical Solutions and Process Technologies reportable segments. See details in the table below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Software and related services	$	889.8	$	655.5	$	1,754.3	$	1,324.0
Engineered products and related services	697.8		649.5		1,361.9		1,331.7
Net revenues	$	1,587.6	$	1,305.0	$	3,116.2	$	2,655.7

Remaining performance obligations - Remaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes unexercised contract options. As of June 30, 2021, the aggregate amount of

the transaction price allocated to remaining performance obligations was $4,574.5. We expect to recognize revenue on approximately 58% of our remaining performance obligations over the next 12 months (“Backlog”), with the remainder to be recognized thereafter.

Contract balances

Balance Sheet Account	June 30, 2021		December 31, 2020		Change
Unbilled receivables	$	275.3	$	241.7	$	33.6
Contract liabilities - current (1)	(1,018.2)		(1,012.0)		(6.2)
Deferred revenue - non-current (2)	(71.5)		(43.1)		(28.4)
Net contract assets/(liabilities)	$	(814.4)	$	(813.4)	$	(1.0)

(1) Consists of “Deferred revenue,” and billings in-excess of revenues (“BIE”). BIE is reported in “Other accrued liabilities” in our Condensed Consolidated Balance Sheets.

(2) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets.

The change in our net contract assets/(liabilities) from December 31, 2020 to June 30, 2021 was due primarily to the timing of payments and invoicing relating to Software-as-a-Service (“SaaS”) and post contract support (“PCS”) renewals, partially offset by the increase in unbilled receivables associated with timing of invoicing in our project-based businesses, most notably our Transcore business.

Most of the Company’s project-based contracts where the input method of revenue recognition is utilized are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Often this results in billing occurring after revenue recognition resulting in contract assets. The Company records contract liabilities when cash payments are received or due in advance of the Company’s performance relating primarily to SaaS and PCS renewals. Revenue recognized from the contract liability balance on December 31, 2020 and 2019 was $272.1 and $211.5 for the three months ended June 30, 2021 and 2020, respectively, and $731.2 and $535.0 for the six months ended June 30, 2021 and 2020, respectively.

In order to determine revenues recognized in the period from contract liabilities, we allocate revenue to the individual deferred revenue or billings in-excess of revenues balance outstanding at the beginning of the year until the revenue exceeds that balance.