Revenue

Disaggregation of Revenue

In the following tables, revenue is disaggregated by primary geographical market, type of revenue, and recurring nature of revenue recognized. The tables also include a reconciliation of the disaggregated revenue with the Company’s reportable segments.

For the three months ended September 30, 2018 (in millions):



	Reportable Segments
					Corporate
	IFS		GFS		and Other		Total
Primary Geographical Markets:
North America	$	1,046	$	456	$	66	$	1,568
All others	44		460		12		516
Total	$	1,090	$	916	$	78	$	2,084

Type of Revenue:
Processing and services	$	879	$	509	$	69	$	1,457
License and software related	92		255		—		347
Professional services	40		151		2		193
Hardware and other	79		1		7		87
Total	$	1,090	$	916	$	78	$	2,084

Recurring Nature of Revenue Recognition:
Recurring fees	$	959	$	663	$	69	$	1,691
Non-recurring fees	131		253		9		393
Total	$	1,090	$	916	$	78	$	2,084

For the nine months ended September 30, 2018 (in millions):



	Reportable Segments
					Corporate
	IFS		GFS		and Other		Total
Primary Geographical Markets:
North America	$	3,143	$	1,343	$	201	$	4,687
All others	132		1,399		38		1,569
Total	$	3,275	$	2,742	$	239	$	6,256

Type of Revenue:
Processing and services	$	2,711	$	1,566	$	217	$	4,494
License and software related	269		730		1		1,000
Professional services	120		438		6		564
Hardware and other	175		8		15		198
Total	$	3,275	$	2,742	$	239	$	6,256

Recurring Nature of Revenue Recognition:
Recurring fees	$	2,901	$	2,042	$	218	$	5,161
Non-recurring fees	374		700		21		1,095
Total	$	3,275	$	2,742	$	239	$	6,256

For the three months ended September 30, 2017 (in millions):



	Reportable Segments
	As Adjusted
					Corporate
	IFS		GFS		and Other		Total
Primary Geographical Markets:
North America	$	997	$	464	$	70	$	1,531
All others	41		511		13		565
Total	$	1,038	$	975	$	83	$	2,096

Type of Revenue:
Processing and services	$	852	$	545	$	76	$	1,473
License and software related	94		232		1		327
Professional services	41		197		2		240
Hardware and other	51		1		4		56
Total	$	1,038	$	975	$	83	$	2,096

Recurring Nature of Revenue Recognition:
Recurring fees	$	911	$	703	$	77	$	1,691
Non-recurring fees	127		272		6		405
Total	$	1,038	$	975	$	83	$	2,096

For the nine months ended September 30, 2017 (in millions):



	Reportable Segments
	As Adjusted
					Corporate
	IFS		GFS		and Other		Total
Primary Geographical Markets:
North America	$	3,044	$	1,473	$	238	$	4,755
All others	118		1,591		38		1,747
Total	$	3,162	$	3,064	$	276	$	6,502

Type of Revenue:
Processing and services	$	2,586	$	1,645	$	243	$	4,474
License and software related	289		680		14		983
Professional services	146		733		10		889
Hardware and other	141		6		9		156
Total	$	3,162	$	3,064	$	276	$	6,502

Recurring Nature of Revenue Recognition:
Recurring fees	$	2,763	$	2,112	$	251	$	5,126
Non-recurring fees	399		952		25		1,376
Total	$	3,162	$	3,064	$	276	$	6,502

Contract Balances

The following table provides information about trade receivables, contract assets, and deferred revenue from contracts with customers (in millions).



	As of
	September 30,		December 31,
	2018		2017
			As adjusted

Trade receivables	$	1,398	$	1,624
Contract assets (current)	115		108
Contract assets (non-current), included in other noncurrent assets	96		118
Deferred revenue (current)	692		776
Deferred revenue (non-current)	61		106

The payment terms and conditions in our customer contracts may vary. In some cases, customers pay in advance of our delivery of solutions or services; in other cases, payment is due as services are performed or in arrears following the delivery of the solutions or services. Differences in timing between revenue recognition and invoicing result in accrued trade receivables, contract assets, or deferred revenue on our Condensed Consolidated Balance Sheets (Unaudited). Receivables are accrued when revenue is recognized prior to invoicing but the right to payment is unconditional (i.e., only the passage of time is required). This occurs most commonly when software term licenses recognized at a point in time are paid for periodically over the license term. Contract assets result when amounts allocated to distinct performance obligations are recognized when or as control of a solution or service is transferred to the customer but invoicing is contingent on performance of other performance obligations or on completion of contractual milestones. Contract assets are transferred to receivables when the rights become unconditional, typically upon invoicing of the related performance obligations in the contract or upon achieving the requisite project milestone. Deferred revenue results from customer payments in advance of our satisfaction of the associated performance obligation(s) and relates primarily to prepaid maintenance or other recurring services. Deferred revenue is relieved as revenue is recognized. Contract assets and deferred revenue are reported on a contract-by-contract basis at the end of each reporting period. Changes in the contract assets and deferred revenue balances during the nine months ended September 30, 2018 were not materially impacted by any factors other than those described above.

The Company recognized revenue of $178 million and $185 million during the three months and $629 million and $598 million during the nine months ended September 30, 2018 and 2017, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

During the three and nine months ended September 30, 2018 and 2017, amounts recognized from performance obligations satisfied (or partially satisfied) in prior periods were insignificant.

Transaction Price Allocated to the Remaining Performance Obligations

As of September 30, 2018, approximately $19.5 billion of revenue is estimated to be recognized in the future from the Company’s remaining unfulfilled performance obligations, which are primarily comprised of recurring account- and volume-based processing services. This excludes the amount of anticipated recurring renewals not yet contractually obligated. The Company expects to recognize approximately 35% of our remaining performance obligations over the next 12 months, approximately another 25% over the next 13 to 24 months, and the balance thereafter.