Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

2. Revenue from Contracts with Customers

Contract Balances

Revenue recognition for a significant portion of our revenue coincides with normal billing terms, including Travel Network's transactional revenues, and Airline Solutions' and Hospitality Solutions' Software-as-a-Service ("SaaS") and hosted revenues. Timing differences among revenue recognition, unconditional rights to bill, and receipt of contract consideration may result in contract assets or contract liabilities.

The following table presents our assets and liabilities with customers as of September 30, 2019 and December 31, 2018 (in thousands):



Account	Consolidated Balance Sheet Location	September 30, 2019		December 31, 2018
Contract assets and customer advances and discounts⁽¹⁾	Prepaid expenses and other current assets / other assets, net	$	108,370	$	79,268
Trade and unbilled receivables, net	Accounts receivable, net	577,023		501,467
Long-term trade unbilled receivables, net	Other assets, net	49,810		50,467
Contract liabilities	Deferred revenues / other noncurrent liabilities	179,237		165,858

________________________________

(1) Includes contract assets of $4 million at each of September 30, 2019 and December 31, 2018.

During the nine months ended September 30, 2019, we recognized revenue of approximately $44 million from contract liabilities that existed as of January 1, 2019. Our long-term trade unbilled receivables, net relate to license fees billed ratably over the contractual period and recognized when the customer gains control of the software. We evaluate collectability of our accounts receivable based on a combination of factors and record reserves as reflected in Note 1. Summary of Business and Significant Accounting Policies in our consolidated financial statements in our Annual Report on Form 10-K filed with the SEC on February 15, 2019.

Revenue

The following table presents our revenues disaggregated by business (in thousands):



	Three Months Ended						Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018

Air	$	572,774		$	566,887		$	1,797,676		$	1,747,518
Lodging, Ground and Sea	94,937			88,467			282,193			264,498
Other	43,292			44,842			129,734			129,001
Total Travel Network	711,003			700,196			2,209,603			2,141,017
SabreSonic Passenger Reservation System	129,784			127,298			383,248			377,476
Commercial and Operations Solutions	77,851			81,253			245,639			239,813
Other	393			837			3,901			3,524
Total Airline Solutions	208,028			209,388			632,788			620,813
SynXis Software and Services	65,962			62,036			194,974			182,251
Other	8,856			7,875			26,551			24,102
Total Hospitality Solutions	74,818			69,911			221,525			206,353
Eliminations	(9,650		)	(9,212		)	(30,350		)	(25,155		)
Total Sabre Revenue	$	984,199		$	970,283		$	3,033,566		$	2,943,028

We may occasionally recognize revenue in the current period for performance obligations partially or fully satisfied in the previous periods resulting from changes in estimates for the transaction price, including any changes to our assessment of whether an estimate of variable consideration is constrained. For the nine months ended September 30, 2019, the impact on revenue recognized in the current period, from performance obligations partially or fully satisfied in the previous period, is immaterial.

We recognize revenue under long-term contracts that primarily includes variable consideration based on transactions processed. A majority of our consolidated revenue is recognized as a stand-ready performance obligation with the amount recognized based on the invoiced amounts for services performed, known as right to invoice revenue recognition. Certain of our contracts, primarily in the Airlines Solutions business, contain minimum transaction volumes, which in many instances are not considered substantive as the customer is expected to exceed the minimum in the contract. Unearned performance obligations primarily consist of deferred revenue for fixed implementation fees and future product implementations, which are included in deferred revenue and other noncurrent liabilities in our consolidated balance sheet. We have not disclosed the performance obligation related to contracts containing minimum transaction volume, as it represents a subset of our business, and therefore would not be meaningful in understanding the total future revenues expected to be earned from our long-term contracts.