Revenue

Disaggregated Revenue

The following tables disaggregate our revenue by major source and timing of recognition:



	Three Months Ended March 31, 2019
	Global Ecommerce		Presort Services		North America Mailing		International Mailing		Software Solutions		Total Revenue recognized under ASC 606		Revenue from leasing transactions and financing		Total Consolidated Revenue
Major products/service lines
Equipment sales	$	—	$	—	$	9,215	$	12,079	$	—	$	21,294	$	68,493	$	89,787
Supplies	—		—		35,103		15,850		—		50,953		—		50,953
Software	—		—		—		—		73,318		73,318		—		73,318
Rentals	—		—		—		—		—		—		22,157		22,157
Financing	—		—		—		—		—		—		97,043		97,043
Support services	—		22		107,709		20,890		—		128,621		—		128,621
Business services	266,254		134,825		4,517		927		—		406,523		—		406,523
Subtotal	266,254		134,847		156,544		49,746		73,318		680,709		$	187,693	$	868,402

Revenue from leasing transactions and financing
Equipment sales	—		—		57,894		10,599		—		68,493
Rentals	—		—		17,279		4,878		—		22,157
Financing	—		—		83,757		13,286		—		97,043
Total revenue	$	266,254	$	134,847	$	315,474	$	78,509	$	73,318	$	868,402

Timing of revenue recognition under ASC 606
Products/services transferred at a point in time	$	—	$	—	$	44,318	$	27,930	$	20,970	$	93,218
Products/services transferred over time	266,254		134,847		112,226		21,816		52,348		587,491
Total	$	266,254	$	134,847	$	156,544	$	49,746	$	73,318	$	680,709



	Three Months Ended March 31, 2018
	Global Ecommerce		Presort Services		North America Mailing		International Mailing		Software Solutions		Total Revenue recognized under ASC 606		Revenue from leasing transactions and financing		Total Consolidated Revenue
Major products/service lines
Equipment sales	$	—	$	—	$	10,416	$	11,795	$	—	$	22,211	$	84,497	$	106,708
Supplies	—		—		38,951		21,042		—		59,993		—		59,993
Software	—		—		—		—		76,294		76,294		—		76,294
Rentals	—		—		—		—		—		—		24,965		24,965
Financing	—		—		—		—		—		—		100,349		100,349
Support services	—		—		113,713		26,937		—		140,650		—		140,650
Business services	246,590		134,458		4,889		1,687		—		387,624		—		387,624
Subtotal	246,590		134,458		167,969		61,461		76,294		686,772		$	209,811	$	896,583

Revenue from leasing transactions and financing
Equipment sales	—		—		68,472		16,025		—		84,497
Rentals	—		—		19,512		5,453		—		24,965
Financing	—		—		84,858		15,491		—		100,349
Total revenue	$	246,590	$	134,458	$	340,811	$	98,430	$	76,294	$	896,583

Timing of revenue recognition under ASC 606
Products/services transferred at a point in time	$	—	$	—	$	49,367	$	32,836	$	25,001	$	107,204
Products/services transferred over time	246,590		134,458		118,602		28,625		51,293		579,568
Total	$	246,590	$	134,458	$	167,969	$	61,461	$	76,294	$	686,772

Our performance obligations are as follows:

Equipment sales and supplies: Our performance obligations generally include the sale of mailing equipment, excluding sales-type leases, and supplies. We recognize revenue upon delivery for self-install equipment and supplies and upon acceptance or installation for other equipment. We provide a warranty that our equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation.

Software: Our performance obligations include the sale of software licenses, maintenance, data products and professional services. Revenue for licenses is generally recognized upon delivery or over time for those licenses that require critical updates over the term of the contract.

Rentals: Our performance obligations include the fees associated with the rental of mailing equipment under an operating lease contract.

Support services: Performance obligations include providing maintenance, professional services, and subscription and meter services for our mailing equipment. Contract terms range from one year to five years, depending on the term of the lease contract for the related equipment. Revenue for maintenance, subscription and meter services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided.

Business services: Our performance obligations include providing mail processing services and ecommerce solutions. Revenue is recognized over time as the services are provided. The contract terms for these services vary, with the initial contracts in the range of one to five years, followed by annual renewal periods.

Revenue from leasing transactions and financing include revenue from equipment accounted for as sales-type leases, finance income and late fees that are not accounted for under ASU 2014-09, Revenues from Contracts with Customers (ASC 606).

Contract Assets and Advance Billings from Contracts with Customers



	Balance sheet location	March 31, 2019		December 31, 2018		Increase (decrease)
Contracts assets, current	Other current assets and prepayments	$	17,319	$	16,115	$	1,204
Contracts assets, noncurrent	Other assets	$	11,385	$	13,092	$	(1,707	)
Advance billings, current	Advance billings	$	203,735	$	221,527	$	(17,792	)
Advance billings, noncurrent	Noncurrent liabilities	$	13,144	$	12,778	$	366

Contract Assets

We record contract assets when performance obligations are satisfied in advance of invoicing the customer when the right to consideration is conditional on the satisfaction of another performance obligation within a contract. Contract assets decreased in the period as the invoicing of performance obligations previously satisfied exceeded the contract assets recognized during the period.

Advance Billings from Contracts with Customers

Advance billings are recorded when cash payments are due in advance of our performance. Items in advance billings primarily relate to support services on equipment and software licenses, subscription services and certain software data products. Revenue is recognized ratably over the contract term.

The net decrease in advance billings at March 31, 2019 is primarily driven by revenues recognized during the period, which includes $80 million of advance billings at the beginning of the period, partially offset by advance billings in the quarter.

Future Performance Obligations

The transaction prices allocated to future performance obligations will be recognized as follows:



	Remainder of 2019		2020		2021-2024		Total
North America Mailing⁽¹⁾	$	196,642	$	214,546	$	288,869	$	700,057
International Mailing⁽¹⁾	23,105		19,664		21,651		64,420
Software Solutions⁽²⁾	55,521		49,884		26,118		131,523
Total	$	275,268	$	284,094	$	336,638	$	896,000

⁽¹⁾Revenue streams bundled with our leasing contracts, primarily maintenance, meter services and other subscription services

⁽²⁾Multiple-year software maintenance contracts, certain software and data licenses and data updates

The table above does not include revenue related to performance obligations for contracts with terms less than 12 months and expected consideration for those performance obligations where revenue is recognized based on the amount billable to the customer.