XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Deferred Revenue and Performance Obligations | 6 Months Ended
--- | ---
Jun. 30, 2018
Revenue from Contract with Customer [Abstract] |
Disaggregation of Revenue/Deferred Revenue and Performance Obligations | Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three to seven years. Deferred commissions were $21.2 million and $19.3 million (as adjusted) as of June 30, 2018, and December 31, 2017, respectively. Amortization expense was $3.7 million and $7.1 million for the three and six months ended June 30, 2018, respectively and $2.7 million and $5.3 million for the three and six months ended June 30, 2017(as adjusted), respectively. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses in the accompanying condensed consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. Disaggregation of Revenue The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Timing of Revenue Recognition Timing of revenue recognition by revenue category during the period is as follows:
For the three months ended June 30, 2018 |  |  |  |  |  |
|  | Products and services transferred at a point in time |  | Products and services transferred over time |  | Total
Revenues |  |  |  |  |  |
Software licenses and royalties |  | $ | 17,260 |  |  | $ | 5,140 |  |  | $ | 22,400 |
Subscriptions |  | — |  |  | 53,009 |  |  | 53,009 |
Software services |  | — |  |  | 50,674 |  |  | 50,674 |
Maintenance |  | — |  |  | 96,076 |  |  | 96,076 |
Appraisal services |  | — |  |  | 5,532 |  |  | 5,532 |
Hardware and other |  | 8,369 |  |  | — |  |  | 8,369 |
Total |  | $ | 25,629 |  |  | $ | 210,431 |  |  | $ | 236,060 |
For the six months ended June 30, 2018 |  |  |  |  |  |
|  | Products and services transferred at a point in time |  | Products and services transferred over time |  | Total
Revenues |  |  |  |  |  |
Software licenses and royalties |  | $ | 36,323 |  |  | $ | 8,853 |  |  | $ | 45,176 |
Subscriptions |  | — |  |  | 102,037 |  |  | 102,037 |
Software services |  | — |  |  | 96,613 |  |  | 96,613 |
Maintenance |  | — |  |  | 189,973 |  |  | 189,973 |
Appraisal services |  | — |  |  | 10,926 |  |  | 10,926 |
Hardware and other |  | 12,509 |  |  | — |  |  | 12,509 |
Total |  | $ | 48,832 |  |  | $ | 408,402 |  |  | $ | 457,234 |
For the three months ended June 30, 2017 |  |  |  |  |  |
As Adjusted |  | Products and services transferred at a point in time |  | Products and services transferred over time |  | Total
Revenues |  |  |  |  |  |
Software licenses and royalties |  | $ | 16,135 |  |  | $ | 3,171 |  |  | $ | 19,306 |
Subscriptions |  | — |  |  | 40,517 |  |  | 40,517 |
Software services |  | — |  |  | 45,860 |  |  | 45,860 |
Maintenance |  | — |  |  | 88,811 |  |  | 88,811 |
Appraisal services |  | — |  |  | 6,366 |  |  | 6,366 |
Hardware and other |  | 7,903 |  |  | — |  |  | 7,903 |
Total |  | $ | 24,038 |  |  | $ | 184,725 |  |  | $ | 208,763 |
For the six months ended June 30, 2017 |  |  |  |  |  |
As Adjusted |  | Products and services transferred at a point in time |  | Products and services transferred over time |  | Total
Revenues |  |  |  |  |  |
Software licenses and royalties |  | $ | 33,250 |  |  | $ | 7,814 |  |  | $ | 41,064 |
Subscriptions |  | — |  |  | 80,379 |  |  | 80,379 |
Software services |  | — |  |  | 88,356 |  |  | 88,356 |
Maintenance |  | — |  |  | 175,118 |  |  | 175,118 |
Appraisal services |  | — |  |  | 12,978 |  |  | 12,978 |
Hardware and other |  | 10,597 |  |  | — |  |  | 10,597 |
Total |  | $ | 43,847 |  |  | $ | 364,645 |  |  | $ | 408,492 |
Recurring Revenue The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of three to five years, providing a significant source of recurring revenues on an annual basis. Non-recurring revenues are derived for all other revenue categories. Recurring revenues and non-recurring revenues recognized during the period are as follows:
For the three months ended June 30, 2018 |  |  |  |  |  |  |  |
|  | Enterprise Software |  | Appraisal and Tax |  | Corporate |  | Totals
Recurring revenues |  | $ | 140,432 |  |  | $ | 8,653 |  |  | $ | — |  |  | $ | 149,085 |
Non-recurring revenues |  | 68,717 |  |  | 13,646 |  |  | 4,612 |  |  | 86,975 |
Intercompany |  | 3,086 |  |  | — |  |  | (3,086 | ) |  | — |
Total revenues |  | $ | 212,235 |  |  | $ | 22,299 |  |  | $ | 1,526 |  |  | $ | 236,060 |
For the six months ended June 30, 2018 |  |  |  |  |  |  |  |
|  | Enterprise Software |  | Appraisal and Tax |  | Corporate |  | Totals
Recurring revenues |  | $ | 274,930 |  |  | $ | 17,080 |  |  | $ | — |  |  | $ | 292,010 |
Non-recurring revenues |  | 133,495 |  |  | 26,779 |  |  | 4,950 |  |  | 165,224 |
Intercompany |  | 6,322 |  |  | — |  |  | (6,322 | ) |  | — |
Total revenues |  | $ | 414,747 |  |  | $ | 43,859 |  |  | $ | (1,372 | ) |  | $ | 457,234 |
For the three months ended June 30, 2017 |  |  |  |  |  |  |  |
As Adjusted |  | Enterprise Software |  | Appraisal and Tax |  | Corporate |  | Totals
Recurring revenues |  | $ | 122,327 |  |  | $ | 7,001 |  |  | $ | — |  |  | $ | 129,328 |
Non-recurring revenues |  | 62,016 |  |  | 12,795 |  |  | 4,624 |  |  | 79,435 |
Intercompany |  | 2,486 |  |  | — |  |  | (2,486 | ) |  | — |
Total revenues |  | $ | 186,829 |  |  | $ | 19,796 |  |  | $ | 2,138 |  |  | $ | 208,763 |
For the six months ended June 30, 2017 |  |  |  |  |  |  |  |
As Adjusted |  | Enterprise Software |  | Appraisal and Tax |  | Corporate |  | Totals
Recurring revenues |  | $ | 242,014 |  |  | $ | 13,483 |  |  | $ | — |  |  | $ | 255,497 |
Non-recurring revenues |  | 122,964 |  |  | 25,407 |  |  | 4,624 |  |  | 152,995 |
Intercompany |  | 4,649 |  |  | — |  |  | (4,649 | ) |  | — |
Total revenues |  | $ | 369,627 |  |  | $ | 38,890 |  |  | $ | (25 | ) |  | $ | 408,492 |
Deferred Revenue and Performance Obligations Total deferred revenue, including long-term, by segment is as follows:
|  | June 30, 2018 |  | December 31, 2017
|  |  |  | As Adjusted
Enterprise Software |  | $ | 299,332 |  |  | $ | 277,198 |
Appraisal and Tax |  | 15,199 |  |  | 20,387 |
Corporate |  | 2,338 |  |  | 2,302 |
Totals |  | $ | 316,869 |  |  | $ | 299,887 |
The opening balance of total deferred revenue, including long-term, was $290.1 million (as adjusted) as of January 1, 2017. Changes in total deferred revenue, including long-term, were as follows:
|  | June 30, 2018
Balance, beginning of period December 31, 2017 (As Adjusted) |  | $ | 299,887 |
Deferral of revenue |  | 414,396 |
Recognition of deferred revenue |  | (397,414 | )
Balance, end of period |  | $ | 316,869 |
Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations represent contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of June 30, 2018 was $1.2 billion, of which we expect to recognize approximately 51% as revenue over the next 12 months and the remainder thereafter.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration