Revenue

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Revenue

Note 2. Revenue

Revenue Recognition

The Company manages highly-customized data and materials to enable filings with the SEC on behalf of its customers as well as performs eXtensible Business Reporting Language (“XBRL”) and other services. Clients are provided with EDGAR filing services, XBRL compliance services and translation, editing, interpreting, proof-reading and multilingual typesetting services, among other services. The Company provides software solutions to public and private companies, mutual funds and other regulated investment firms to serve their regulatory and compliance needs, including Venue, Arc Suite and ActiveDisclosure, among others, and provides digital document creation, online content management and print and distribution solutions.

Revenue is recognized upon transfer of control of promised services or products to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services or products. The Company’s services include software solutions and tech-enabled services whereas the Company’s products are comprised of print and distribution offerings. The Company’s arrangements with customers often include promises to transfer multiple services or products to a customer. Determining whether services and products are considered distinct performance obligations that should be accounted for separately requires significant judgment. Certain customer arrangements have multiple performance obligations as certain promises are both capable of being distinct and are distinct within the context of the contract. Other customer arrangements have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, and therefore is not distinct. Revenue for the Company’s tech-enabled services, software solutions and print and distribution offerings is recognized either over time or at a point in time, as further disclosed in the Annual Report.

Disaggregation of Revenue

The following tables disaggregate revenue between tech-enabled services, software solutions and print and distribution by reportable segment:

	Three Months Ended June 30,
	2022								2021
	Tech-enabled Services		Software Solutions		Print and Distribution		Total		Tech-enabled Services		Software Solutions		Print and Distribution		Total
Capital Markets - Software Solutions	$	—	$	46.3	$	—	$	46.3	$	—	$	43.8	$	—	$	43.8
Capital Markets - Compliance and Communications Management		110.9		—		39.1		150.0		113.8		—		39.3		153.1
Investment Companies - Software Solutions		—		25.3		—		25.3		—		22.8		—		22.8
Investment Companies - Compliance and Communications Management		22.4		—		22.2		44.6		20.2		—		27.6		47.8
Total net sales	$	133.3	$	71.6	$	61.3	$	266.2	$	134.0	$	66.6	$	66.9	$	267.5

	Six Months Ended June 30,
	2022								2021
	Tech-enabled Services		Software Solutions		Print and Distribution		Total		Tech-enabled Services		Software Solutions		Print and Distribution		Total
Capital Markets - Software Solutions	$	—	$	91.0	$	—	$	91.0	$	—	$	82.3	$	—	$	82.3
Capital Markets - Compliance and Communications Management		182.0		—		71.6		253.6		209.8		—		81.8		291.6
Investment Companies - Software Solutions		—		50.4		—		50.4		—		44.6		—		44.6
Investment Companies - Compliance and Communications Management		43.0		—		39.2		82.2		42.7		—		51.6		94.3
Total net sales	$	225.0	$	141.4	$	110.8	$	477.2	$	252.5	$	126.9	$	133.4	$	512.8

Unbilled Receivables and Contract Balances

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. Contract assets represent revenue recognized for performance obligations completed before an unconditional right to payment exists and therefore invoicing has not yet occurred. The Company generally estimates contract assets based on the historical selling price adjusted for its current experience and expected resolution of the variable consideration of the completed performance obligation. When the Company’s contracts contain variable consideration, the variable consideration is recognized only to the extent that it is probable that a significant revenue reversal will not occur in a future period. As a result, the estimated revenue and contract assets may be constrained until the uncertainty associated with the variable consideration is resolved, which generally occurs in less than one year. Contract assets were $25.2 million and $24.9 million at June 30, 2022 and December 31, 2021, respectively. Generally, the contract assets balance is impacted by the recognition of additional revenue, amounts invoiced to customers and changes in the level of constraint applied to variable consideration. Unbilled receivables are recorded when there is an unconditional right to payment and invoicing has not yet occurred. The Company estimates the value of unbilled receivables based on a combination of historical customer selling price and management’s assessment of realizable selling price. Unbilled receivables were $92.4 million and $46.7 million at June 30, 2022 and December 31, 2021, respectively. Unbilled receivables and contract assets are included in accounts receivable on the Unaudited Condensed Consolidated Balance Sheets.

Amounts recognized as revenue exceeded the estimates for performance obligations satisfied in previous periods by approximately $8.8 million and $17.1 million for the three months ended June 30, 2022 and 2021, respectively, and by approximately $7.2 million and $22.0 million for the six months ended June 30, 2022 and 2021, respectively, primarily due to changes in the Company’s estimate of variable consideration and the application of the constraint.

Substantially all of the Company’s contracts with significant remaining performance obligations have an initial expected duration of one year or less. As of June 30, 2022, the future estimated revenue related to unsatisfied or partially satisfied performance obligations under contracts with an original contractual term in excess of one year was approximately $120 million, of which approximately 45% is expected to be recognized as revenue over the succeeding twelve months, and the remainder recognized thereafter.

Contract liabilities consist of deferred revenue and progress billings which are included in accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company recognized $10.0 million and $5.5 million of revenue during the three months ended June 30, 2022 and 2021, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company recognized $26.1 million and $15.9 million of revenue during the six months ended June 30, 2022 and 2021, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. Changes in contract liabilities were as follows:

Balance at January 1, 2022	$	36.0
Deferral of revenue		78.8
Revenue recognized		(65.9	)
Balance at June 30, 2022	$	48.9

Balance at January 1, 2021	$	21.7
Deferral of revenue		59.4
Revenue recognized		(48.7	)
Balance at June 30, 2021	$	32.4