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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 Our revenue consists of product and service revenue. Product revenue is generated by sales of our FortiGate products and other hardware and software solutions. Service revenue relates to sales of our FortiGuard security subscription, FortiCare technical support services and other services. Disaggregation of Revenue The following table presents our revenue disaggregated by major product and service lines (in millions):
| Three Months Ended
| March 31, 2020 |  | March 31, 2019
Product | $ | 192.3 |  |  | $ | 162.7 |
Service: |  |  |
Security subscription | 211.4 |  |  | 169.6 |
Technical support and other | 173.2 |  |  | 140.3 |
Total service revenue | 384.6 |  |  | 309.9 |
Total revenue | $ | 576.9 |  |  | $ | 472.6 |
Deferred Revenue During the three months ended March 31, 2020 and March 31, 2019, we recognized $348.9 million and $288.6 million in service revenue that was included in the deferred revenue balance as of December 31, 2019 and December 31, 2018, respectively. Transaction Price Allocated to the Remaining Performance Obligations As of March 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $2.23 billion, which was substantially comprised of deferred security subscription and technical support services revenue. We expect to recognize approximately $1.23 billion as revenue over the next 12 months and the remainder thereafter. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. On January 1, 2020, we adopted Topic 326, which provides guidance on how to measure credit losses on financial instruments, including accounts receivable. Prior to our adoption of Topic 326, our accounts receivable balance was reduced by an allowance for doubtful accounts that we determined based on our assessment of the collectability of customer accounts. Under Topic 326, our accounts receivable balance is reduced by an allowance for credit losses. We measure expected credit losses of accounts receivable on a collective (pool) basis, aggregating accounts receivable that are either current or no more than 60 days past due, and aggregating accounts receivable that are more than 60 days past due. We apply a credit-loss percentage to each of the pools that is based on our historical credit losses. We review whether each of our significant accounts receivable that is more than 60 days past due continues to exhibit similar risk characteristics with the other accounts receivable in the pool. If we determine that it does not, we evaluate it for expected credit losses on an individual basis. The COVID-19 pandemic and the recent economic downturn prompted us to perform additional credit reviews of our existing customers, including obtaining recent credit reports and reviewing their latest available statements of financial position. After performing our additional reviews, we determined that, while there may be delays in our collections, the risk of credit loss on our trade accounts receivable as of March 31, 2020 was expected to be consistent with prior periods and that our methodology for estimating credit losses was appropriate. The allowance for credit losses was $1.1 million as of March 31, 2020, and the allowance for doubtful accounts was $1.2 million as of December 31, 2019. Provisions, write-offs and recoveries were not material during the three months ended March 31, 2020. Deferred Contract Costs Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. The amortization of deferred contract costs is included in sales and marketing expense in our condensed consolidated statements of income. Amortization of deferred contract costs during the three months ended March 31, 2020 and March 31, 2019 were $31.3 million and $25.1 million, respectively.

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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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