Revenues from Contracts

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenues from Contracts

Revenues from Contracts

Disaggregated Revenue - We disaggregate our revenues by reportable segment into four categories: (i) recurring revenue comprised of SaaS licenses and software maintenance; (ii) reoccurring revenue comprised of transactional and volume-based fees related to software licenses; (iii) non-recurring revenue comprised of term and perpetual software licenses, professional services associated with software products and hardware sold with our software licenses; and (iv) product revenue. See details in the table below.

	Three months ended September 30, 2022								Three months ended September 30, 2021
	Application Software		Network Software		Technology Enabled Products		Total		Application Software		Network Software		Technology Enabled Products		Total
Revenue Stream
Software related
Recurring	$	471.1	$	247.5	$	3.2	$	721.8	$	431.3	$	213.4	$	2.1	$	646.8
Reoccurring	30.0		62.0		—		92.0		28.9		68.4		—		97.3
Non-recurring	142.9		37.1		0.3		180.3		140.0		34.2		0.1		174.3
Total Software Revenues	644.0		346.6		3.5		994.1		600.2		316.0		2.2		918.4
Product Revenue	—		—		356.2		356.2		—		—		313.7		313.7
Total Revenue	$	644.0	$	346.6	$	359.7	$	1,350.3	$	600.2	$	316.0	$	315.9	$	1,232.1

	Nine months ended September 30, 2022								Nine months ended September 30, 2021
	Application Software		Network Software		Technology Enabled Products		Total		Application Software		Network Software		Technology Enabled Products		Total
Revenue Stream
Software related
Recurring	$	1,390.5	$	729.2	$	8.6	$	2,128.3	$	1,272.4	$	612.8	$	5.5	$	1,890.7
Reoccurring	90.3		184.5		—		274.8		82.5		186.6		—		269.1
Non-recurring	418.9		114.3		0.9		534.1		406.3		101.9		0.5		508.7
Total Software Revenues	1,899.7		1,028.0		9.5		2,937.2		1,761.2		901.3		6.0		2,668.5
Product Revenue	—		—		1,003.7		1,003.7		—		—		908.7		908.7
Total Revenue	$	1,899.7	$	1,028.0	$	1,013.2	$	3,940.9	$	1,761.2	$	901.3	$	914.7	$	3,577.2

Remaining performance obligations - Remaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes unexercised contract options. As of September 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $3,621.1. We expect to recognize revenue of $2,420.9, or approximately 67% of our remaining performance obligations over the next 12 months (“Backlog”), with the remainder to be recognized thereafter.

Contract balances

Balance Sheet Account	September 30, 2022		December 31, 2021		Change
Unbilled receivables	$	98.8	$	81.9	$	16.9
Deferred revenue - current	(1,048.8)		(1,106.3)		57.5
Deferred revenue - non-current (1)	(89.0)		(69.9)		(19.1)
Net contract assets/(liabilities)	$	(1,039.0)	$	(1,094.3)	$	55.3

(1) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets.

The change in our net contract assets/(liabilities) from December 31, 2021 to September 30, 2022 was due primarily to the timing of payments and invoicing relating to Software-as-a-Service (“SaaS”) and post contract support (“PCS”) renewals, and the increase in unbilled receivables due to the timing of invoicing primarily related to software milestone billings associated with multi-year term license renewals and software implementations.

Most of the Company’s project-based contracts where the input method of revenue recognition is utilized are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Often this results in unbilled receivables where billing occurs after revenue recognition. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance relating primarily to SaaS and PCS renewals. Revenue recognized from the deferred revenue balance on December 31, 2021 and 2020 was $181.5 and $153.9 for the three months ended September 30, 2022 and 2021, respectively, and $958.2 and $858.3 for the nine months ended September 30, 2022 and 2021, respectively.

In order to determine revenues recognized in the period, we allocate revenue to the individual deferred revenue balance outstanding at the beginning of the year until the revenue exceeds that balance.

The current and non-current portions of deferred commissions are included in “Other current assets” and “Other assets,” respectively, in our Condensed Consolidated Balance Sheets. At September 30, 2022 and December 31, 2021, we had $59.8 and $56.7 of total deferred commissions, respectively.