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REVENUE | 3 Months Ended
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Mar. 31, 2019
Revenue from Contract with Customer [Abstract] |
REVENUE | REVENUE Disaggregation of Revenue The following tables disaggregate our revenue by primary geographical market, major product/service lines, and industry. During 2019, we adopted Topic 842 and have retrospectively adjusted 2018 for the impact of this new standard. Primary Geographical Markets
| Three months ended March 31, 2019
| FMS |  | DTS |  | SCS |  | Eliminations |  | Total
| (In thousands)
United States | $ | 1,198,943 |  |  | 349,621 |  |  | 529,393 |  |  | (151,163 | ) |  | 1,926,794 |
Canada | 74,014 |  |  | — |  |  | 49,708 |  |  | (5,401 | ) |  | 118,321 |
Europe | 78,642 |  |  | — |  |  | — |  |  | — |  |  | 78,642 |
Mexico | — |  |  | — |  |  | 53,277 |  |  | — |  |  | 53,277 |
Singapore | — |  |  | — |  |  | 3,293 |  |  | — |  |  | 3,293 |
Total revenue | $ | 1,351,599 |  |  | 349,621 |  |  | 635,671 |  |  | (156,564 | ) |  | 2,180,327 |
| Three months ended March 31, 2018
| FMS |  | DTS |  | SCS |  | Eliminations |  | Total
| (In thousands)
United States (1) | 1,085,446 |  |  | 298,970 |  |  | 401,883 |  |  | (127,716 | ) |  | 1,658,583 |
Canada | 74,808 |  |  | — |  |  | 43,093 |  |  | (4,806 | ) |  | 113,095 |
Europe | 82,796 |  |  | — |  |  | — |  |  | — |  |  | 82,796 |
Mexico (1) | — |  |  | — |  |  | 44,032 |  |  | — |  |  | 44,032 |
Singapore | — |  |  | — |  |  | 5,699 |  |  | — |  |  | 5,699 |
Total revenue | 1,243,050 |  |  | 298,970 |  |  | 494,707 |  |  | (132,522 | ) |  | 1,904,205 |
———————————— (1) 2018 SCS total revenue amounts for the United States and Mexico include reclassifications to conform to the current period presentation. Major Products/Service Lines
| Three months ended March 31, 2019
| FMS |  | DTS |  | SCS |  | Eliminations |  | Total
| (In thousands)
ChoiceLease | $ | 748,579 |  |  | — |  |  | — |  |  | (68,191 | ) |  | 680,388 |
SelectCare | 135,779 |  |  | — |  |  | — |  |  | (12,250 | ) |  | 123,529 |
Commercial rental | 236,148 |  |  | — |  |  | — |  |  | (16,977 | ) |  | 219,171 |
Fuel | 207,866 |  |  | — |  |  | — |  |  | (59,146 | ) |  | 148,720 |
Other | 23,227 |  |  | — |  |  | — |  |  | — |  |  | 23,227 |
DTS | — |  |  | 349,621 |  |  | — |  |  | — |  |  | 349,621 |
SCS | — |  |  | — |  |  | 635,671 |  |  | — |  |  | 635,671 |
Total revenue | $ | 1,351,599 |  |  | 349,621 |  |  | 635,671 |  |  | (156,564 | ) |  | 2,180,327 |
| Three months ended March 31, 2018
| FMS |  | DTS |  | SCS |  | Eliminations |  | Total
| (In thousands)
ChoiceLease | 690,902 |  |  | — |  |  | — |  |  | (60,377 | ) |  | 630,525 |
SelectCare | 121,873 |  |  | — |  |  | — |  |  | (9,344 | ) |  | 112,529 |
Commercial rental | 204,530 |  |  | — |  |  | — |  |  | (10,064 | ) |  | 194,466 |
Fuel | 203,807 |  |  | — |  |  | — |  |  | (52,737 | ) |  | 151,070 |
Other | 21,938 |  |  | — |  |  | — |  |  | — |  |  | 21,938 |
DTS | — |  |  | 298,970 |  |  | — |  |  | — |  |  | 298,970 |
SCS | — |  |  | — |  |  | 494,707 |  |  | — |  |  | 494,707 |
Total revenue | 1,243,050 |  |  | 298,970 |  |  | 494,707 |  |  | (132,522 | ) |  | 1,904,205 |
Industry Our SCS business segment includes revenue from the below industries:
| Three months ended March 31,
| 2019 |  | 2018
| (In thousands)
Automotive | $ | 253,679 |  |  | 207,792 |
Technology and healthcare | 113,668 |  |  | 103,097 |
CPG and retail | 217,098 |  |  | 135,358 |
Industrial and other | 51,226 |  |  | 48,460 |
Total revenue | $ | 635,671 |  |  | 494,707 |
Contract Balances We record a receivable related to revenue recognized when we have an unconditional right to invoice. There were no material contract assets as of March 31, 2019 or December 31, 2018. Trade receivables were $1.06 billion and $1.09 billion at March 31, 2019 and December 31, 2018, respectively. Impairment losses on receivables were not material during the first quarters of 2019 and 2018. Contract liabilities relate to payments received in advance of performance under the contract. Changes in contract liabilities are due to our performance under the contract. The amount of revenue recognized during the three months ended March 31, 2019, that was included within deferred revenue at January 1, 2019, was $58 million. In addition, we deferred $57 million of revenue during the first quarter of 2019. Refer to Note 5, "Accrued Expenses and Other Liabilities," for additional information on deferred revenue. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”). Contracted not recognized revenue includes deferred revenue and amounts for full service ChoiceLease maintenance revenue that will be invoiced and recognized as revenue in future periods as we provide maintenance services to our customers. Contracted not recognized revenue excludes variable revenue as it is not included in the transaction price consideration allocated at contract inception. Contracted not recognized revenue was $2.7 billion as of March 31, 2019. As a practical expedient, revenue related to our insurance performance obligations is excluded from contracted not recognized revenue since insurance coverage is provided over time, and we recognize revenue in the amount we have the right to bill the customer, which corresponds directly with the value to the customer of our performance completed to date. Costs to Obtain and Fullfill a Contract We capitalize incremental sales commissions paid to our sales force as a result of obtaining ChoiceLease, DTS and SCS service contracts as contract costs. We recorded capitalized sales commissions of $106 million and $107 million at March 31, 2019 and December 31, 2018, respectively. Capitalized sales commissions includes initial direct costs of our leases in the amount of $53 million at March 31, 2019 and December 31, 2018, respectively, accounted for in accordance with Topic 842. Capitalized sales commissions are presented in “Prepaid expenses and other current assets” and “Sales-type leases and other assets” in our Consolidated Condensed Balance Sheets. Capitalized sales commissions related to our ChoiceLease product are amortized based on the same pattern that the revenue is recognized for the underlying lease or non-lease components of the contract. Incremental sales commissions capitalized in connection with our ChoiceLease contracts relate to the lease component and non-lease maintenance components of our contracts. We allocate the ChoiceLease commissions to the lease and non-lease components based on the same allocation of the contract consideration. The portion of capitalized commissions related to the lease component is amortized on a straight-line basis and the portion of the capitalized commissions related to the maintenance portion is amortized consistent with the estimated pattern of maintenance costs. The amortization period aligns with the term of our contract, which typically ranges from three to seven years, and amortization expense is included in “Selling, general and administrative expenses” in our Consolidated Condensed Statements of Earnings. Capitalized commissions related to our DTS and SCS service contracts are amortized based on the same patten that the revenue is recognized for the underlying contracts. This generally results in a straight-line amortization as the amount of revenue billed to the customer under DTS and SCS contracts corresponds directly with the value to the customer of our performance completed to date. The amortization period aligns with the term of the contract, which typically ranges from three to five years, and amortization expense is included in “Selling, general and administrative expenses” in our Consolidated Condensed Statement of Earnings. For the three months ended March 31, 2019 and 2018, the amount of amortization was $11 million and $6 million, respectively. As a practical expedient, we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less.

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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://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
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