Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue:

	Year Ended December 31,
(in thousands)	2020			2019			2018
Revenue:
Lease licenses	$	500,105		$	406,043		$	275,619
Perpetual licenses	280,745			293,587			301,098
Software licenses	780,850			699,630			576,717
Maintenance	840,597			760,574			676,883
Service	59,850			55,688			40,036
Maintenance and service	900,447			816,262			716,919
Total revenue	$	1,681,297		$	1,515,892		$	1,293,636
Direct revenue, as a percentage of total revenue	77.8		%	77.1		%	77.6		%
Indirect revenue, as a percentage of total revenue	22.2		%	22.9		%	22.4		%

Our software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract.

Deferred Revenue

Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant.

The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the years ended December 31, 2020 and 2019 were as follows:

(in thousands)	2020		2019
Beginning balance – January 1	$	365,274	$	343,174
Acquired deferred revenue	6,872		6,880
Deferral of revenue	1,687,907		1,532,549
Recognition of deferred revenue	(1,681,297)		(1,515,892)
Currency translation	10,054		(1,437)
Ending balance – December 31	$	388,810	$	365,274

Total revenue allocated to remaining performance obligations as of December 31, 2020 will be recognized as revenue as follows:

(in thousands)
Next 12 months	$	606,780
Months 13-24	199,909
Months 25-36	80,304
Thereafter	80,134
Total revenue allocated to remaining performance obligations	$	967,127

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents installment billings for periods beyond the current

quarterly billing cycle. Revenue recognized during the years ended December 31, 2020 and 2019 included amounts in deferred revenue and backlog at the beginning of the period of $569.8 million and $475.9 million, respectively.