Contract Balances
Contract balances at December 31 are set forth in the following table:

Balance sheet account20252024Change
Unbilled receivables $124.0 $127.3 $(3.3)
Deferred revenue – current(1,906.8)(1,737.4)(169.4)
Deferred revenue – non-current (170.8)(154.7)(16.1)
Net contract assets/(liabilities)$(1,953.6)$(1,764.8)$(188.8)

The change in our net contract assets/(liabilities) from December 31, 2024 to December 31, 2025 was primarily due to the timing of payments and invoicing as well as growth related to SaaS and PCS renewals.

Revenue recognized during the years ended December 31, 2025 and 2024 that was included in the deferred revenue balance on December 31, 2024 and 2023 was $1,716.9 and $1,546.5, respectively. In order to determine revenues recognized in the period from contract liabilities, we allocate revenue to the individual deferred revenue balance outstanding at the beginning of the year until the revenue exceeds that balance.

Impairment losses recognized on our accounts receivable and unbilled receivables were immaterial in each of the years ended December 31, 2025, 2024, and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 24, 2025
2023Feb 22, 2024
2022Feb 27, 2023
2021Feb 22, 2022
2020Feb 22, 2021
2019Feb 28, 2020
2018Feb 25, 2019
2017Feb 23, 2018
2015Feb 26, 2016

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.