Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

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 March 31, 2020 and December 31, 2019 (in thousands):


Account	Consolidated Balance Sheet Location	March 31, 2020		December 31, 2019
Contract assets and customer advances and discounts⁽¹⁾	Prepaid expenses and other current assets / other assets, net	$	102,945	$	105,499
Trade and unbilled receivables, net	Accounts receivable, net	350,537		539,806
Long-term trade unbilled receivables, net	Other assets, net	37,450		38,250
Contract liabilities	Deferred revenues / other noncurrent liabilities	189,134		167,832

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(1) Includes contract assets of $6 million for March 31, 2020 and December 31, 2019.

During the three months ended March 31, 2020, we recognized revenue of approximately $16 million from contract liabilities that existed as of January 1, 2020. 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 described further in Note 5. Credit Losses.

Revenue

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


	Three Months Ended March 31
	2020		2019

Air	$	315,317	$	640,478
Lodging, Ground and Sea	72,431		90,287
Other	39,955		43,203
Total Travel Network	427,703		773,968
Reservation Systems	105,131		127,228
Commercial and Operations Solutions	73,530		83,558
Other	1,224		2,141
Total Airline Solutions	179,885		212,927
SynXis Software and Services	50,731		64,214
Other	8,506		8,617
Total Hospitality Solutions	59,237		72,831
Eliminations	(7,848)		(10,365)
Total Sabre Revenue	$	658,977	$	1,049,361

Transaction revenue for airline travel reservations is recognized by Travel Network at the time of booking of the reservation, net of estimated future cancellations. Cancellations of airline travel reservations prior to the day of departure were estimated based on the historical level of cancellation rates, adjusted to take into account the significant effect that COVID-19 has had on the travel industry and the resulting volume of airline travel cancellations.

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 three months ended March 31, 2020, 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.