XML 58 R18.htm IDEA: XBRL DOCUMENT
v3.19.3

Capitalized Contract Costs | 9 Months Ended
--- | ---
Sep. 30, 2019
Revenue from Contract with Customer [Abstract] |
Capitalized Contract Costs | Contract Assets and Contract Liabilities Contract assets represent rights to consideration in exchange for goods or services transferred to a customer when that right is conditional on something other than the passage of time. Contract liabilities represent deferred revenue. Net contract assets (liabilities) as of September 30, 2019 and December 31, 2018 are as follows:
| September 30, 2019 |  | December 31, 2018
Contract assets - current | $ | 38.3 |  |  | $ | 29.7 |
Contract assets - long-term(i) | 22.4 |  |  | 22.2 |
Deferred revenue - current | (236.0 | ) |  | (294.4 | )
Deferred revenue - long-term | (142.4 | ) |  | (157.2 | )
(i)Reported in other long-term assets on the company’s consolidated balance sheets
As of September 30, 2019 and December 31, 2018, deposit liabilities of $16.8 million and $21.2 million, respectively, were principally included in current deferred revenue. These deposit liabilities represent upfront consideration received from customers for services such as post-contract support and maintenance that allow the customer to terminate the contract at any time for convenience. Significant changes during the three and nine months ended September 30, 2019 and 2018 in the above contract asset and liability balances were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Revenue recognized that was included in deferred revenue at December 31, 2018 | $ | 46.0 |  |  |  |  | $ | 236.6 |  |  |
Revenue recognized that was included in deferred revenue at December 31, 2017 |  |  | $ | 64.6 |  |  |  |  | $ | 255.5 |
Capitalized Contract Costs The company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the initial contract life. These costs are classified as current or noncurrent based on the timing of when the company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At September 30, 2019 and December 31, 2018, the company had $11.2 million and $12.1 million, respectively, of deferred commissions. Amortization expense related to deferred commissions for the three and nine months ended September 30, 2019 and 2018 was as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Deferred commissions - amortization expense(i) | $ | 0.9 |  |  | $ | 1.8 |  |  | $ | 2.9 |  |  | $ | 5.2 |
(i)Reported in selling, general and administrative expense in the company’s consolidated statements of income
Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (costs to fulfill a contract), principally initial customer setup, are capitalized and expensed over the initial contract life. These costs are included in outsourcing assets, net in the company’s consolidated balance sheets. The amount of such cost at September 30, 2019 and December 31, 2018 was $78.1 million and $79.5 million, respectively. These costs are amortized over the initial contract life and reported in Services cost of sales. During the three and nine months ended September 30, 2019 and 2018, amortization expense related to costs to fulfill a contract was as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Costs to fulfill a contract - amortization expense | $ | 5.9 |  |  | $ | 4.2 |  |  | $ | 17.8 |  |  | $ | 14.9 |
The remaining balance of outsourcing assets, net is comprised of fixed assets and software used in connection with outsourcing contracts. These costs are capitalized and depreciated over the shorter of the initial contract life or in accordance with the company’s fixed asset policy. Remaining Performance ObligationsRemaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes (1) contracts with an original expected length of one year or less and (2) contracts for which the company recognizes revenue at the amount to which it has the right to invoice for services performed. At September 30, 2019, the company had approximately $1.0 billion of remaining performance obligations of which approximately 13% is estimated to be recognized as revenue by the end of 2019 and an additional 34% by the end of 2020.

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 http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration