SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Performance Obligations

The Company’s typical performance obligations are:

Performance Obligation

How Standalone Selling Price is Typically Determined

When Performance Obligation is Typically Satisfied

When Payment is Typically Due

Perpetual license

Residual approach

Upon transfer of control to the client, defined when the client can use and benefit from the license (point in time)

Effective date of the license

Term license

Residual approach

Upon transfer of control to the client, defined when the client can use and benefit from the license (point in time)

Annually, or more frequently, over the term of the license

Maintenance

Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1)

Ratably over the term of the maintenance (over time)

Annually, or more frequently, over the term of the maintenance

Pega Cloud

Residual approach

Ratably over the term of the service (over time)

Annually, or more frequently, over the term of the service

Consulting
- time and materials

Observable hourly rate for time and materials-based services in similar geographies for similar contract sizes

Based on hours incurred to date

Monthly

Consulting
- fixed price

Observable hourly rate for time and materials-based services in similar geographies for similar contract sizes multiplied by estimated hours for the project

Based on hours incurred as a percentage of total estimated hours

As contract milestones are achieved

(1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client.

Expected future revenue on existing contracts:


	December 31, 2020
(Dollars in thousands)	Perpetual license		Term license		Maintenance		Pega Cloud		Consulting		Total
1 year or less	$	11,514	$	105,920	$	227,803	$	248,223	$	19,226	$	612,686	57	%
1-2 years	395		7,962		54,509		193,064		346		256,276		24	%
2-3 years	—		4,928		28,320		104,542		851		138,641		13	%
Greater than 3 years	—		4		19,283		44,308		1,189		64,784		6	%
	$	11,909	$	118,814	$	329,915	$	590,137	$	21,612	$	1,072,387	100	%


	December 31, 2019
(Dollars in thousands)	Perpetual license		Term license		Maintenance		Pega Cloud		Consulting		Total
1 year or less	$	2,305	$	97,826	$	206,882	$	165,571	$	20,798	$	493,382	58	%
1-2 years	2,179		12,014		30,291		128,109		1,439		174,032		21	%
2-3 years	—		3,132		17,844		84,788		132		105,896		13	%
Greater than 3 years	—		3,861		13,277		43,702		1,993		62,833		8	%
	$	4,484	$	116,833	$	268,294	$	422,170	$	24,362	$	836,143	100	%