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Revenue Recognition | 3 Months Ended
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Mar. 31, 2020
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. Disaggregation of Revenue The Company’s operations are comprised of the Acceptance segment, the Fintech segment and the Payments segment. Additional information regarding the Company’s business segments is included in Note 22. The tables below present the Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The Company’s disaggregation of revenue for the three months ended March 31, 2019 has been restated to reflect the Segment Realignment. The majority of the Company’s revenue is earned domestically, with revenue generated outside the United States comprising approximately 13% and 6% of total revenue for the three months ended March 31, 2020 and 2019, respectively.
(In millions) | Reportable Segments
Three Months Ended March 31, 2020 | Acceptance |  | Fintech |  | Payments |  | Corporate and Other |  | Total
Type of Revenue |  |  |  |  |  |  |  |  |
Processing | $ | 1,183 |  |  | $ | 351 |  |  | $ | 1,090 |  |  | $ | 25 |  |  | $ | 2,649 |
Hardware, print and card production | 193 |  |  | 12 |  |  | 192 |  |  | — |  |  | 397 |
Professional services | 3 |  |  | 112 |  |  | 57 |  |  | 1 |  |  | 173 |
Software maintenance | — |  |  | 141 |  |  | 1 |  |  | 2 |  |  | 144 |
License and termination fees | 6 |  |  | 46 |  |  | 22 |  |  | — |  |  | 74 |
Output solutions postage | — |  |  | — |  |  | — |  |  | 236 |  |  | 236 |
Other | 16 |  |  | 56 |  |  | 24 |  |  | — |  |  | 96 |
Total Revenue | $ | 1,401 |  |  | $ | 718 |  |  | $ | 1,386 |  |  | $ | 264 |  |  | $ | 3,769 |
(In millions) | Reportable Segments
Three Months Ended March 31, 2019 | Fintech |  | Payments |  | Corporate and Other |  | Total
Type of Revenue |  |  |  |  |  |  |
Processing | $ | 342 |  |  | $ | 511 |  |  | $ | 43 |  |  | $ | 896 |
Hardware, print and card production | 12 |  |  | 75 |  |  | — |  |  | 87 |
Professional services | 113 |  |  | 23 |  |  | 2 |  |  | 138 |
Software maintenance | 143 |  |  | 1 |  |  | 4 |  |  | 148 |
License and termination fees | 60 |  |  | 13 |  |  | — |  |  | 73 |
Output solutions postage | — |  |  | — |  |  | 77 |  |  | 77 |
Other | 55 |  |  | 28 |  |  | — |  |  | 83 |
Total Revenue | $ | 725 |  |  | $ | 651 |  |  | $ | 126 |  |  | $ | 1,502 |
Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers.
(In millions) | March 31, 2020 |  | December 31, 2019
Contract assets | $ | 385 |  |  | $ | 382 |
Contract liabilities | 660 |  |  | 647 |
Contract assets, reported within other long-term assets in the consolidated balance sheets, primarily result from revenue being recognized where payment is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $168 million of revenue during the three months ended March 31, 2020 that was included in the contract liability balance at the beginning of the period. Transaction Price Allocated to Remaining Performance Obligations The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at March 31, 2020:
(In millions) |
Year ending December 31, |
Remainder of 2020 | $ | 1,451 |
2021 | 1,641 |
2022 | 1,262 |
2023 | 954 |
Thereafter | 1,830 |
The Company applies the optional exemption under ASC Topic 606 (“ASC 606”) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions under ASC 606 and does not disclose information for variable consideration that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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