REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregated Revenue

The Company provides information, analytics and online marketplaces to the commercial real estate industry and related professionals. The revenues by operating segment and type of service consist of the following (in thousands):



	Year Ended December 31,
	2019						2018
	North America		International		Total		North America		International		Total
Information and analytics
CoStar Suite	$	590,222	$	27,576	$	617,798	$	519,661	$	25,534	$	545,195
Information services	76,950		11,496		88,446		58,708		8,916		67,624
Online marketplaces
Multifamily	490,631		—		490,631		405,795		—		405,795
Commercial property and land	202,264		580		202,844		173,137		81		173,218
Total revenues	$	1,360,067	$	39,652	$	1,399,719	$	1,157,301	$	34,531	$	1,191,832

Deferred Revenue

Changes in deferred revenue for the period were as follows (in thousands):



Balance at December 31, 2018	$	51,459
Revenue recognized in the current period from the amounts in the beginning balance	(49,937		)
New deferrals, net of amounts recognized in the current period	68,814
Effects of foreign currency	284
Balance at December 31, 2019 ⁽¹⁾	$	70,620
__________________________

⁽¹⁾Deferred revenue was comprised of $67 million of current liabilities and $3 million of noncurrent liabilities classified within lease and other long-term liabilities on the Company’s consolidated balance sheet as of December 31, 2019. The balance includes $11 million of net new deferrals recognized in connection with business acquisitions made in 2019. See Note 4 for details.

Contract Assets

The Company had contract assets of $4 million and $2 million as of December 31, 2019 and December 31, 2018, respectively; which are generated when contractual billing schedules differ from revenue recognition timing. Contract assets represent a conditional right to consideration for satisfied performance obligations that becomes a receivable when the conditions are satisfied. Current contract assets are included in prepaid expenses and other current assets and non-current contract assets are included in deposits and other assets on the Company's consolidated balance sheets.

Commissions

Commissions expense is included in selling and marketing expense in the Company's consolidated statements of operations. The Company determined that no deferred commissions were impaired as of December 31, 2019. Commissions expense activity as of December 31, 2019 and December 31, 2018 was as follows (in thousands):



	Year Ended December 31,
	2019			2018
Commissions incurred	$	87,043		$	72,899
Commissions capitalized in the current period	(66,688		)	(53,497		)
Amortization of deferred commissions costs	53,421			48,313
Total commissions expense	$	73,776		$	67,715

Refer to Note 2 for the Company's policy on accounting for commissions.

Unsatisfied Performance Obligations

Remaining contract consideration for which revenue had not been recognized due to unsatisfied performance obligations was approximately $257 million at December 31, 2019, which the Company expects to recognize over the next five years. This amount does not include contract consideration for contracts with a duration of one year or less.