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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 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 for the years ended December 31:
In millions202220212020
Americas
Recurring $889 $879 $813 
Perpetual software licenses, hardware and other23 24 47 
Consulting services126 141 165 
Total Americas1,038 1,044 1,025 
EMEA
Recurring330 371 312 
Perpetual software licenses, hardware and other33 37 39 
Consulting services102 135 134 
Total EMEA465 543 485 
APJ
Recurring200 214 184 
Perpetual software licenses, hardware and other9 16 21 
Consulting services83 100 121 
Total APJ292 330 326 
Total Revenue$1,795 $1,917 $1,836 
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 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:
In millionsDecember 31, 2022December 31, 2021
Accounts receivable, net$364 $336 
Contract assets$7 $10 
Current deferred revenue$589 $552 
Long-term deferred revenue$8 $27 
Revenue recognized during the year ended December 31, 2022 from amounts included in deferred revenue at the beginning of the period was approximately $491 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 December 31, 2022:
In millionsTotal at December 31, 2022Year 1Year 2 and Thereafter
Remaining unsatisfied obligations$2,400 $1,598 $802 
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 $1,370 million of the amount includes customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies the Company otherwise. The Company expects to recognize revenue of approximately $617 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 CostsThe 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 on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions 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 four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs:
In millionsDecember 31, 2021CapitalizedAmortizationDecember 31, 2022
Capitalized contract costs$111 $37 $(56)$92 
In millionsDecember 31, 2020CapitalizedAmortizationDecember 31, 2021
Capitalized contract costs$98 $58 $(45)$111