| Revenue from Contract with Customer [Text Block] | Revenue Recognition In May 2014, the FASB issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaced most existing revenue recognition guidance in U.S. GAAP. The new standard introduces a five-step process to be followed in determining the amount and timing of revenue recognition. It also provides guidance on accounting for costs incurred to obtain or fulfill contracts with customers, and establishes disclosure requirements which are more extensive than those required under prior U.S. GAAP . ASU 2014-09, as amended ("Topic 606"), was effective for the Company in the first quarter of 2018. We selected the modified retrospective (cumulative effect) transition method of adoption. Such method provides that the cumulative effect from prior periods upon applying the new guidance to contracts which were not complete as of the adoption date, be recognized in our condensed consolidated balance sheets as of December 31, 2017, including an adjustment to retained earnings . A summary of such cumulative effect adjustment is as follows: (In thousands) Increase / (Decrease) Receivables, net $ (79,492 ) Prepaid expenses and other (2,253 ) Other assets 81,157 Accounts payable (9,361 ) Deferred income taxes and other liabilities 1,173 Retained earnings 7,600 Prior periods were not retrospectively adjusted. The impact of applying Topic 606 (versus prior U.S. GAAP) increased revenues by $44 million and $108 million , and earnings before income taxes by $24 million and $37 million , for the three and nine months ended September 29, 2018 , respectively. This impact is primarily driven by certain new contracts in 2018, which include certain specified upgrades for which we are allowed to estimate stand-alone selling price when allocating transaction consideration to performance obligations. Under prior U.S. GAAP, we would not have been able to establish vendor specific objective evidence of fair value for such items, as further discussed in our most recent annual report on Form 10-K, and thus would have had to delay the timing of revenue recognition for such contracts. The application of Topic 606 (versus prior U.S. GAAP) did not have a significant impact on other line items in our condensed consolidated statements of operations, statements of comprehensive income, and statements of cash flows for the three and nine month periods ended September 29, 2018 . Additionally, the application of Topic 606 did not have a significant impact on our condensed consolidated balance sheet as of September 29, 2018 . Revenue Recognition Policy We enter into contracts with customers that may include various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The predominant model of customer procurement involves multiple deliverables and includes a software license agreement, project-related implementation and consulting services, software support, hosting services, and computer hardware. We allocate revenues to each performance obligation within an arrangement based on estimated relative stand-alone selling price. Revenue is then recognized for each performance obligation upon transfer of control of the software solution or services to the customer in an amount that reflects the consideration we expect to receive . Generally, we recognize revenue under Topic 606 for each of our performance obligations as follows: • Perpetual software licenses - We recognize perpetual software license revenues when control of such licenses are transferred to the client ("point in time"). We determine the amount of consideration allocated to this performance obligation using the residual approach . • Software as a service - We recognize software as a service ratably over the related hosting period ("over time") . • Time-based software and content license fees - We recognize a license component of time-based software and content license fees upon delivery to the client ("point in time") and a non-license component (i.e. support) ratably over the respective contract term ("over time") . • Hosting - Remote hosting recurring services are recognized ratably over the hosting service period ("over time"). Certain of our hosting arrangements contain fees deemed to be a "material right" under Topic 606. We recognize such fees over the term that will likely affect the client's decision about whether to renew the related hosting service ("over time") . • Services - We recognize revenue for fixed fee services arrangements over time, utilizing a labor hours input method. For fee-for-service arrangements, we recognize revenue over time as hours are worked at the rates clients are invoiced, utilizing the "as invoiced" practical expedient available in Topic 606. For stand-ready services arrangements, we recognize revenue ratably over the related service period . • Support and maintenance - We recognize support and maintenance fees ratably over the related contract period ("over time") . • Hardware - We recognize hardware revenues when control of such hardware/devices is transferred to the client ("point in time") . • Transaction processing - We recognize transaction processing revenues ratably as we provide such services ("over time") . Such revenues are recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Disaggregation of Revenue The following tables present revenues disaggregated by our business models: Three Months Ended 2018 2017 (1) (In thousands) Domestic Segment Global Segment Total Domestic Segment Global Segment Total Licensed software $ 132,447 $ 7,441 $ 139,888 $ 133,339 $ 11,176 $ 144,515 Technology resale 51,097 9,281 60,378 49,793 7,153 56,946 Subscriptions 73,792 5,323 79,115 116,144 6,416 122,560 Professional services 400,695 56,030 456,725 354,390 46,494 400,884 Managed services 278,019 23,981 302,000 243,454 20,130 263,584 Support and maintenance 229,202 48,578 277,780 213,728 49,633 263,361 Reimbursed travel 22,902 1,285 24,187 23,123 1,034 24,157 Total revenues $ 1,188,154 $ 151,919 $ 1,340,073 $ 1,133,971 $ 142,036 $ 1,276,007 (1) As noted above, prior period amounts were not adjusted upon our adoption of Topic 606. Nine Months Ended 2018 2017 (1) (In thousands) Domestic Global Total Domestic Global Total Licensed software $ 417,761 $ 29,334 $ 447,095 $ 412,766 $ 29,963 $ 442,729 Technology resale 171,135 27,876 199,011 176,664 17,521 194,185 Subscriptions 220,063 18,639 238,702 336,914 17,857 354,771 Professional services 1,168,079 177,232 1,345,311 1,050,567 142,795 1,193,362 Managed services 785,951 69,906 855,857 728,760 56,322 785,082 Support and maintenance 693,217 148,083 841,300 646,114 138,925 785,039 Reimbursed travel 69,108 4,277 73,385 69,644 3,675 73,319 Total revenues $ 3,525,314 $ 475,347 $ 4,000,661 $ 3,421,429 $ 407,058 $ 3,828,487 (1) As noted above, prior period amounts were not adjusted upon our adoption of Topic 606. The following table presents our revenues disaggregated by timing of revenue recognition: Three Months Ended Nine Months Ended 2018 2018 (In thousands) Domestic Global Total Domestic Segment Global Segment Total Revenue recognized over time $ 1,078,029 $ 137,594 $ 1,215,623 $ 3,169,402 $ 425,991 $ 3,595,393 Revenue recognized at a point in time 110,125 14,325 124,450 355,912 49,356 405,268 Total revenues $ 1,188,154 $ 151,919 $ 1,340,073 $ 3,525,314 $ 475,347 $ 4,000,661 Transaction Price Allocated to Remaining Performance Obligations As of September 29, 2018 , the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) for executed contracts approximates $14.70 billion of which we expect to recognize approximately 30% of the revenue over the next 12 months and the remainder thereafter . Contract Liabilities Our payment arrangements with clients typically include an initial payment due upon contract signing and date-based licensed software payment terms and payments based upon delivery for services, hardware and sublicensed software. Customer payments received in advance of satisfaction of the related performance obligations are deferred as contract liabilities. Such amounts are classified in our condensed consolidated balance sheets as either current or long-term deferred revenue. During the nine months ended September 29, 2018, substantially all of our contract liability balance at the beginning of such period was recognized in revenues . Costs to Obtain or Fulfill a Contract We have determined the only significant incremental costs incurred to obtain contracts with clients within the scope of Topic 606 are sales commissions paid to our associates. We record sales commissions as an asset, and amortize to expense ratably over the remaining performance periods of the related contracts with remaining performance obligations. At September 29, 2018 , our condensed consolidated balance sheet includes an $84 million asset related to sales commissions to be expensed in future periods, which is included in other assets. During the three and nine months ended September 29, 2018 , we recognized $12 million and $30 million , respectively, of amortization related to this sales commissions asset, which is included in costs of revenue in our condensed consolidated statements of operations. Significant Judgments when Applying Topic 606 Our contracts with clients typically include various combinations of our software solutions and related services. Determining whether such software solutions and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Specifically, judgment is required to determine whether software licenses are distinct from services and hosting included in an arrangement . Contract transaction price is allocated to performance obligations using estimated stand-alone selling price . Judgment is required in estimating stand-alone selling price for each distinct performance obligation. We determine stand-alone selling price maximizing observable inputs such as stand-alone sales when they exist or substantive renewal prices charged to clients. In instances where stand-alone selling price is not observable, we utilize an estimate of stand-alone selling price. Such estimates are derived from various methods that include: cost plus margin, historical pricing practices, and the residual approach, which requires a considerable amount of judgment . The labor hours input method used for our fixed fee services performance obligation is dependent on our ability to reliably estimate the direct labor hours to complete a project, which may span several years. We utilize our historical project experience and detailed planning process as a basis for our future estimates to complete current projects. Certain of our arrangements contain variable consideration. We do not believe our estimates of variable consideration to be significant to our determination of revenue recognition. Practical Expedients We have reflected the aggregate effect of all contract modifications occurring prior to the Topic 606 adoption date when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. |
