Revenue

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue is recognized upon transfer of control of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of our products or services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.

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. We previously included net sales attributable to our operations in India within the EMEIA region. In the second quarter of 2020, we began including these amounts within the APAC geographic region, to reflect recent changes within our organizational structure. We have recast historical comparative information to conform to the June 30, 2020 presentation. The geographic regions are now presented as the Americas, EMEA and APAC to reflect this change.

Total net sales based on the disaggregation criteria described above are as follows:


			Three Months Ended June 30,
(In thousands)			(Unaudited)
	2020										2019

Net sales:	Point-in-Time⁽¹⁾		Over Time		Total		Point-in-Time⁽¹⁾		Over Time		Total
Americas	$	103,113	$	18,595	$	121,708	$	105,773	$	23,141	$	128,914
EMEA	56,203		18,453		74,656		74,101		18,624		92,725
APAC	94,419		10,546		104,965		103,874		8,718		112,592
Total net sales⁽¹⁾	$	253,735	$	47,594	$	301,329	$	283,748	$	50,483	$	334,231
(1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. See Note - 5 Derivatives 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


			Six Months Ended June 30,
(In thousands)			(Unaudited)
	2020										2019

Net sales:	Point-in-Time⁽¹⁾		Over Time		Total		Point-in-Time⁽¹⁾		Over Time		Total
Americas	$	208,412	$	38,313	$	246,725	$	205,454	$	46,115	$	251,569
EMEA	123,896		37,489		161,385		146,569		37,749		184,318
APAC	181,607		20,992		202,599		191,978		17,440		209,418
Total net sales⁽¹⁾	$	513,915	$	96,794	$	610,709	$	544,001	$	101,304	$	645,305
(1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. See Note - 5 Derivatives 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

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 non-current, during the six months ended June 30, 2020 were as follows:


	Amount
	(In thousands)
Balance as of December 31, 2019	$	164,925
Deferral of revenue billed in current period, net of recognition	74,985
Recognition of revenue deferred in prior periods	(77,380)
Divestiture of AWR subsidiary	(15,296)
Foreign currency translation impact	(981)
Balance as of June 30, 2020 (unaudited)	$	146,253

For the six months ended June 30, 2020, revenue recognized from performance obligations satisfied in 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 six months ended June 30, 2020, 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 million as of June 30, 2020. Since we typically invoice customers at contract inception, this amount is included in our current and non-current deferred revenue balances. As of June 30, 2020, we expect to recognize approximately 27% of the revenue related to these unsatisfied performance obligations during the remainder of 2020, 39% during 2021, and 34% thereafter.

Assets Recognized from the Costs to Obtain a Contract with a CustomerWe recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. Capitalized incremental costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another. Total capitalized costs to obtain a contract were not material during the periods presented and are included in other long-term assets on our consolidated balance sheets.