Revenue

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenues

We disaggregate revenue from contracts with customers based on the timing of transfer of goods or services to customers (point-in-time or over time) and geographic region based on the billing location of the customer. The geographic regions that are tracked are the Americas (United States, Canada and Latin America), EMEIA (Europe, Middle East, India and Africa) and APAC (Australia, Japan, South Korea, New Zealand, Southeast Asia and China). Total net sales based on the disaggregation criteria described above are as follows:



			Year Ended December 31,
	2019
(In thousands)
Net sales:	Point-in-Time		Over Time		Total
Americas	$	446,703	$	91,976	$	538,679
EMEIA	324,410		79,014		403,424
APAC	376,631		34,481		411,112
Total net sales (1)	$	1,147,744	$	205,471	$	1,353,215
(1) Net sales contain hedging gains and losses, which do not represent revenues recognized from customers. See Note 5 -Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations



			Year Ended December 31,
	2018
(In thousands)
Net sales:	Point-in-Time		Over Time		Total
Americas	$	451,047	$	87,341	$	538,388
EMEIA	356,070		76,907		432,977
APAC	355,024		32,743		387,767
Total net sales (1)	$	1,162,141	$	196,991	$	1,359,132
(1) Net sales contain hedging gains and losses, which do not represent revenues recognized from customers. See Note 5 -Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations

Total net sales by the major geographic areas in which we operate, are as follows:



(In thousands)	Years Ended December 31,
	2019		2018		2017 (1)
Net sales:
Americas	$	538,679	$	538,388	$	504,626
EMEIA	403,424		432,977		408,625
APAC	411,112		387,767		376,135
Total	$	1,353,215	$	1,359,132	$	1,289,386
(1) As discussed in Note 1 - Operations and summary of significant accounting policies of Notes to Consolidated Financial Statements, prior periods have not been adjusted for adoption of ASU 2014-09

Information about Contract Balances

Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to extended hardware and software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 90 days of contract inception. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers, such as invoicing at the beginning of a subscription term with a portion of the revenue recognized ratably over the contract period, or to provide customers with financing, such as multi-year on-premises licenses that are invoiced annually with revenue recognized upfront.

Changes in deferred revenue, current and long-term, during the twelve months ended December 31, 2019 were as follows:



	Amount
	(In thousands)
Deferred Revenue at January 1, 2019	$	159,924
Deferral of revenue billed in current period, net of recognition	116,842
Recognition of revenue deferred in prior periods	(111,417		)
Foreign currency translation impact	(424		)
Balance as of December 31, 2019	$	164,925

For the twelve months ended December 31, 2019, revenue recognized from performance obligations related to prior periods (for example, due to changes in transaction price) was not material. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in accounts receivable, net on the consolidated balance sheet. Based on the nature of our contracts with customers, we do not typically recognize unbilled receivables related to revenues recognized in excess of amounts billed. For the twelve months ended December 31, 2019, amounts recognized related to unbilled receivables were not material.

Unsatisfied Performance Obligations

Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, and excluding contracts where revenue is recognized as invoiced, was approximately $60.7 million as of December 31, 2019. Since we typically invoice customers at contract inception, this amount is included in our current and non-current deferred revenue balances. As of December 31, 2019, we expect to recognize approximately 49% of the revenue related to these unsatisfied performance obligations during 2020, 30% during 2021, and 21% thereafter.

Practical Expedients

As discussed in Note 1 - Operations and summary of significant accounting policies and elsewhere in Note 2 - Revenue of Notes to Consolidated Financial Statements, we have elected the following practical expedients in accordance with the new revenue standard:


•	We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses.


•	We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

•

We do not consider the time value of money for contracts with original durations of one year or less.