Revenue

6 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Contract Balances. The Company receives payments from customers based upon contractual billing schedules. Payment terms can vary by contract but the period between invoicing and when payments are due is not significant. The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in unbilled receivables, contract assets, or contract liabilities, on the Company’s consolidated balance sheets. Unbilled receivables are recorded when the right to consideration becomes unconditional based only on the passage of time. Contract assets include amounts related to the Company's contractual right to consideration for completed performance when the right to consideration is conditional. The Company records contract liabilities when cash payments are received or due in advance of performance. Contract assets and contract liabilities are recognized at the contract level.

The following table provides information about accounts receivables, contract assets, and contract liabilities from contracts with customers:



	December 31, 2019			June 30, 2019
Accounts receivable (including unbilled receivables)	$	320.9		$	290.4

Short-term contract assets (included in other current assets)	30.3			29.9
Long-term contract assets (included in other assets)	22.3			20.2
Short-term contract liabilities (included in short-term deferred revenue)	(119.7		)	(124.8		)
Long-term contract liabilities (included in long-term deferred revenue)	(72.5		)	(68.4		)
Net contract assets/(liabilities)	$	(139.6	)	$	(143.1	)

During the six months ended December 31, 2019, the Company recognized $148.9 million of revenue upon satisfaction of performance obligations and invoiced and reclassified $26.7 million to accounts receivable. These amounts were included in the net contract assets or liabilities balance as of June 30, 2019. The Company had no asset impairment charges related to contract assets in the periods presented.

The Company may occasionally recognize an adjustment in 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 the Company's assessment of whether an estimate of variable consideration is constrained. For the six months ended December 31, 2019, the impact on revenue recognized in the current period, from performance obligations partially or fully satisfied in the previous period, was not significant.

Remaining Performance Obligations. As of December 31, 2019, the Company had 3.0 billion of remaining performance obligations which represent contracted revenue that has not yet been recognized, including contracted revenue where the contract's original expected duration is one year or less. The Company expects to recognize remaining performance obligations as revenue as follows:



	December 31, 2019
Six months ending June 30, 2020	$	670.0
Twelve months ending June 30, 2021	940.0
Twelve months ending June 30, 2022	640.0
Twelve months ending June 30, 2023	410.0
Thereafter	360.0
Total remaining performance obligations	$	3,020.0

The remaining performance obligations exclude future transaction revenue where revenue is recognized as the services are rendered and in the amount to which the Company has the right to invoice.

Costs to Obtain and Fulfill a Contract. The Company capitalizes certain contract acquisition costs consisting primarily of commissions incurred when contracts are signed. The Company does not capitalize commissions related to contracts with a duration of less than one year; such commissions are expensed within selling, general and administrative expenses when incurred. Costs to fulfill contracts are capitalized when such costs are direct, incremental, and related to transition or installation activities for hosted software solutions. Capitalized costs to fulfill primarily include travel and employee compensation and benefit related costs for the Company's implementation and training teams. Capitalized costs to obtain a

contract and most costs to fulfill a contract are amortized over a period of five years which represents the expected period of benefit of these costs. In instances where the contract term is significantly less than five years, costs to fulfill are amortized over the contract term which the Company believes best reflects the period of benefit of these costs.

As of December 31, 2019 and June 30, 2019, the Company capitalized contract acquisition and fulfillment costs from continuing operations of $205.9 million and $200.4 million, respectively. The Company expects that incremental commission fees incurred as a result of obtaining contracts and fulfillment costs are recoverable. During the six months ended December 31, 2019 and 2018, the Company recognized cost amortization of $40.6 million and $39.2 million, respectively, and there were no significant impairment losses.