Revenues from Contracts

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenues from Contracts

Revenues from Contracts

Disaggregated Revenue – We disaggregate our revenues by reportable segment into four categories: (i) recurring revenue comprised of Software-as-a-Service (“SaaS”) licenses and software maintenance; (ii) reoccurring revenue comprised of transactional and volume-based fees related to software licenses; (iii) non-recurring revenue comprised of term and perpetual software licenses, professional services associated with software products and hardware sold with our software licenses; and (iv) product revenue. See details in the table below:

	Three months ended September 30, 2023								Three months ended September 30, 2022
Revenue stream	Application Software		Network Software		Technology Enabled Products		Total		Application Software		Network Software		Technology Enabled Products		Total
Software related
Recurring	$	630.9	$	262.8	$	4.3	$	898.0	$	471.1	$	247.5	$	3.2	$	721.8
Reoccurring	33.4		66.0		—		99.4		30.0		62.0		—		92.0
Non-recurring	139.1		35.3		0.3		174.7		142.9		37.1		0.3		180.3
Total Software Revenue	803.4		364.1		4.6		1,172.1		644.0		346.6		3.5		994.1
Product Revenue	—		—		391.3		391.3		—		—		356.2		356.2
Total Revenue	$	803.4	$	364.1	$	395.9	$	1,563.4	$	644.0	$	346.6	$	359.7	$	1,350.3

	Nine months ended September 30, 2023								Nine months ended September 30, 2022
Revenue stream	Application Software		Network Software		Technology Enabled Products		Total		Application Software		Network Software		Technology Enabled Products		Total
Software related
Recurring	$	1,798.7	$	777.0	$	12.3	$	2,588.0	$	1,390.5	$	729.2	$	8.6	$	2,128.3
Reoccurring	103.1		195.9		—		299.0		90.3		184.5		—		274.8
Non-recurring	433.3		103.8		1.1		538.2		418.9		114.3		0.9		534.1
Total Software Revenue	2,335.1		1,076.7		13.4		3,425.2		1,899.7		1,028.0		9.5		2,937.2
Product Revenue	—		—		1,139.1		1,139.1		—		—		1,003.7		1,003.7
Total Revenue	$	2,335.1	$	1,076.7	$	1,152.5	$	4,564.3	$	1,899.7	$	1,028.0	$	1,013.2	$	3,940.9

Remaining performance obligations – Remaining performance obligations represent the transaction price of firm orders for which work has not been performed and exclude unexercised contract options. As of September 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,321.4. We expect to recognize revenues of $2,913.7, or approximately 67% of our remaining performance obligations over the next 12 months (“Backlog”), with the remainder to be recognized thereafter.

Contract balances

Balance sheet account	September 30, 2023		December 31, 2022		Change
Unbilled receivables	$	112.1	$	91.5	$	20.6
Deferred revenue – current	(1,496.7)		(1,370.7)		(126.0)
Deferred revenue – non-current (1)	(127.6)		(111.5)		(16.1)
Net contract assets/(liabilities)	$	(1,512.2)	$	(1,390.7)	$	(121.5)

(1) 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, 2022 to September 30, 2023 was due primarily to net contract liabilities associated with the acquisitions completed during 2023, most notably Syntellis with approximately $80, and the timing of payments and invoicing relating to SaaS and post contract support (“PCS”) contracts, driven predominantly by the renewal cycle of our Frontline business which primarily occurs in the third quarter.

The Company records deferred revenue 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 deferred revenue balance on December 31, 2022 and 2021 was $206.1 and $181.5 for the three months ended September 30, 2023 and 2022, respectively, and $1,192.7 and $958.2 for the nine months ended September 30, 2023 and 2022, respectively. In order to determine revenues recognized in the period, we allocate revenue to the individual deferred revenue balance outstanding at the beginning of the year until the revenue exceeds that balance.

The current and non-current portions of deferred commissions are included in “Other current assets” and “Other assets,” respectively, in our Condensed Consolidated Balance Sheets. At September 30, 2023 and December 31, 2022, we had $66.1 and $64.8 of total deferred commissions, respectively.