Revenue, Contract Assets and Liabilities

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue, Contract Assets and Liabilities

Disaggregation of Revenue

The following table provides information about disaggregated revenue by major service line, the timing of revenue recognition and a reconciliation of the disaggregated revenue by reportable segments. Refer to Note 4 – Segment Reporting for additional information on the Company's reportable segments.



	Three Months Ended March 31,
(in millions)	2019		2018
Commercial Industries:
Omni-channel communications	$	211	$	219
Human resource services	182		187
Industry services	219		248
Total Commercial Industries	612		654
Government Services:
Government Services and Healthcare	119		114
Payment Services	74		82
State and Local	119		126
Federal	13		13
Total Government Services	325		335
Transportation:
Tolling	79		72
Transit	54		54
Photo and Parking	48		46
Commercial Vehicle	3		4
Total Transportation	184		176
Other:
Divestitures	36		248
Education	1		7
Total Other	37		255
Total Consolidated Revenue	$	1,158	$	1,420

Timing of Revenue Recognition:
Point in time	$	39	$	36
Over time	1,119		1,384
Total Revenue	$	1,158	$	1,420

Contract Balances

The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are the Company’s rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Contract assets are transferred to Accounts receivable when the rights to consideration become unconditional. Unearned income includes payments received in advance of performance under the contract, which are realized when the associated revenue is recognized under the contract.

The following table provides information about the balances of the Company's contract assets, unearned income and receivables from contracts with customers:



(in millions)	March 31, 2019			December 31, 2018
Contract Assets (Unearned Income)
Current contract assets	$	197		$	177
Long-term contract assets⁽¹⁾	14			7
Current unearned income	(103		)	(112		)
Long-term unearned income⁽²⁾	(29		)	(32		)
Net Contract Assets (Unearned Income)	$	79		$	40
Accounts receivable, net	$	820		$	782

__________


(1)	Presented in Other long-term assets in the Condensed Consolidated Balance Sheets


(2)	Presented in Other long-term liabilities in the Condensed Consolidated Balance Sheets

Revenues of $53 million and $83 million were recognized during the three months ended March 31, 2019 and 2018, respectively, related to the Company's unearned income at December 31, 2018 and January 1, 2018, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at March 31, 2019, was approximately $2 billion. The Company expects to recognize approximately 65% of the revenues over the next two years and the remainder thereafter.