REVENUES

3 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUES

REVENUES

Disaggregation of Revenue

We have four revenue streams: cloud services and subscriptions, customer support, license, and professional service and other. The following tables disaggregate our revenue by significant geographic area, based on the location of our end customer, and by type of performance obligation and timing of revenue recognition for the periods indicated:

	Three Months Ended September 30,
	2020		2019
Total Revenues by Geography:
Americas (1)	$	508,656	$	419,710
EMEA (2)	225,935		210,167
Asia Pacific (3)	69,422		67,011
Total revenues	$	804,013	$	696,888

Total Revenues by Type of Performance Obligation:
Recurring revenues (4)
Cloud services and subscriptions revenue	$	340,986	$	237,265
Customer support revenue	329,399		312,298
Total recurring revenues	$	670,385	$	549,563
License revenue (perpetual, term and subscriptions)	68,523		77,898
Professional service and other revenue	65,105		69,427
Total revenues	$	804,013	$	696,888
Total Revenues by Timing of Revenue Recognition:
Point in time	$	68,523	$	77,898
Over time (including professional service and other revenue)	735,490		618,990
Total revenues	$	804,013	$	696,888

(1) Americas consists of countries in North, Central and South America.

(2) EMEA primarily consists of countries in Europe, the Middle East and Africa.

(3) Asia Pacific primarily consists of Japan, Australia, China, Korea, Philippines, Singapore and New Zealand.

(4) Recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.

Contract Balances

A contract asset, net of allowance for credit losses, will be recorded if we have recognized revenue but do not have an unconditional right to the related consideration from the customer. For example, this will be the case if implementation services offered in a cloud arrangement are identified as a separate performance obligation and are provided to a customer prior to us being able to bill the customer. In addition, a contract asset may arise in relation to subscription licenses if the license revenue that is recognized upfront exceeds the amount that we are able to invoice the customer at that time. Contract assets are reclassified to accounts receivable when the rights become unconditional.

The balance for our contract assets and contract liabilities (i.e. deferred revenues) for the periods indicated below were as follows:

	As of September 30, 2020		As of June 30, 2020
Short-term contract assets	$	26,236	$	29,570
Long-term contract assets	$	19,066	$	15,427
Short-term deferred revenues	$	770,919	$	812,218
Long-term deferred revenues	$	96,180	$	94,382

The difference in the opening and closing balances of our contract assets and deferred revenues primarily results from the timing difference between our performance and the customer’s payments. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. During the three months ended September 30, 2020, we reclassified $9.2 million of contract assets to receivables as a result of the right to the transaction consideration becoming unconditional. During the three months ended September 30, 2020 and 2019, respectively, there was no significant impairment loss recognized related to contract assets.

We recognize deferred revenue when we have received consideration or an amount of consideration is due from the customer for future obligations to transfer products or services. Our deferred revenues primarily relate to customer support agreements which have been paid for by customers prior to the performance of those services. The amount of revenue that was recognized during the three months ended September 30, 2020 that was included in the deferred revenue balances at June 30, 2020 was $343 million (three months ended September 30, 2019—$304 million that was included in the deferred revenue balances at June 30, 2019).

Incremental Costs of Obtaining a Contract with a Customer

The following table summarizes the changes in total capitalized costs to obtain a contract since June 30, 2020:

Capitalized costs to obtain a contract as of June 30, 2020	$	61,163
New capitalized costs incurred	6,230
Amortization of capitalized costs	(4,988)
Adjustments on account of foreign exchange	769
Capitalized costs to obtain a contract as of September 30, 2020	$	63,174

During the three months ended September 30, 2020 and 2019, respectively, there was no significant impairment loss recognized related to capitalized costs to obtain a contract.

Transaction Price Allocated to the Remaining Performance Obligations

As of September 30, 2020, approximately $1.3 billion of revenue is expected to be recognized from remaining performance obligations on existing contracts. We expect to recognize approximately 48% of this amount over the next 12 months and the remaining balance thereafter. We apply the practical expedient and do not disclose performance obligations that have original expected durations of one year or less.