XML 19 R10.htm IDEA: XBRL DOCUMENT
v3.22.2

Revenue from Contracts with Customers | 6 Months Ended
--- | ---
Jun. 30, 2022
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue from Contracts with Customers The following table presents a disaggregation of revenue:
| Three Months Ended June 30, |  | Six Months Ended June 30,
in millions | 2022 |  | 2021 |  | 2022 |  | 2021
Americas |  |  |  |  |  |  |
Recurring | $ | 215 |  |  | $ | 233 |  |  | $ | 461 |  |  | $ | 451 |
Perpetual software licenses, hardware and other | 3 |  |  | 4 |  |  | 15 |  |  | 11 |
Consulting services | 31 |  |  | 37 |  |  | 63 |  |  | 75 |
Total Americas | 249 |  |  | 274 |  |  | 539 |  |  | 537 |
EMEA |  |  |  |  |  |  |
Recurring | 75 |  |  | 86 |  |  | 164 |  |  | 187 |
Perpetual software licenses, hardware and other | 3 |  |  | 7 |  |  | 14 |  |  | 20 |
Consulting services | 25 |  |  | 35 |  |  | 54 |  |  | 68 |
Total EMEA | 103 |  |  | 128 |  |  | 232 |  |  | 275 |
APJ |  |  |  |  |  |  |
Recurring | 55 |  |  | 57 |  |  | 106 |  |  | 110 |
Perpetual software licenses, hardware and other | 2 |  |  | 6 |  |  | 5 |  |  | 9 |
Consulting services | 21 |  |  | 26 |  |  | 44 |  |  | 51 |
Total APJ | 78 |  |  | 89 |  |  | 155 |  |  | 170 |
Total Revenue | $ | 430 |  |  | $ | 491 |  |  | $ | 926 |  |  | $ | 982 |
Rental revenue, which is included in recurring revenue in the above table, was as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
in millions |  | 2022 |  | 2021 |  | 2022 |  | 2021
Rental revenue* |  | $ | 45 |  |  | $ | 48 |  |  | $ | 95 |  |  | $ | 87 |
*Rental revenue includes hardware maintenance. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the condensed consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about receivables, contract assets and deferred revenue from contracts with customers:
| As of |  |  |  |  |  |  |  |
in millions | June 30, 2022 |  | December 31, 2021 |  |  |  |  |  |  |  |
Accounts receivable, net | 266 |  |  | $ | 336 |  |  |  |  |  |  |  |  |
Contract assets | 15 |  |  | 10 |  |  |  |  |  |  |  |  |
Current deferred revenue | 530 |  |  | 552 |  |  |  |  |  |  |  |  |
Long-term deferred revenue | 11 |  |  | 27 |  |  |  |  |  |  |  |  |
Revenue recognized during the six months ended June 30, 2022 from amounts included in deferred revenue at the beginning of the period was $346 million. Transaction Price Allocated to Unsatisfied Obligations The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at June 30, 2022:
in millions |  | Total at June 30, 2022 |  | Year 1 |  | Year 2 and Thereafter
Remaining unsatisfied obligations |  | $ | 2,087 |  |  | $ | 1,373 |  |  | $ | 714 |
The amounts above represent the price of firm orders for which work has not been performed or goods have not been delivered and exclude unexercised contract options outside the stated contractual term that do not represent material rights to the customer. Although the Company believes that the contract value in the above table is firm, approximately $1,243 million of the amount is under contracts that are subject to customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies us of cancellation. The Company expects to recognize revenue of approximately $449 million in the next year from contracts that are non-cancelable. The Company believes the inclusion of this information is important to understanding the obligations that the Company is contractually required to perform and provides useful information regarding remaining obligations related to these executed contracts. Contract Costs The Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in capitalized contract costs, net on the Company’s balance sheet. The capitalized amounts are calculated based on the annual recurring revenue and contract value for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically around four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs:
in millions |  | December 31, 2021 |  | Capitalized |  | Amortization |  | June 30, 2022
Capitalized contract costs |  | $ | 111 |  |  | $ | 15 |  |  | $ | (31) |  |  | $ | 95 |
in millions |  | December 31, 2020 |  | Capitalized |  | Amortization |  | June 30, 2021
Capitalized contract costs |  | $ | 98 |  |  | $ | 20 |  |  | $ | (21) |  |  | $ | 97 |

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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration