8. Deferred Revenue
Deferred revenue represents cash payments received that are yet to be recognized as revenue. At December 31, 2013, we estimate that our deferred revenue, which is primarily related to Listing Services and Technology Solutions revenues, will be recognized in the following years:
|
Initial Listing Revenues |
Listing of Additional Shares Revenues |
Annual Renewal and Other Revenues |
Technology Solutions Revenues(1) |
Total |
|||||||||||
|
(in millions) |
|||||||||||||||
|
Fiscal year ended: |
|||||||||||||||
|
2014 |
$ |
11 |
$ |
33 |
$ |
25 |
$ |
82 |
$ |
151 | |||||
|
2015 |
10 | 23 | 1 | 30 | 64 | ||||||||||
|
2016 |
8 | 14 |
- |
24 | 46 | ||||||||||
|
2017 |
6 | 5 |
- |
11 | 22 | ||||||||||
|
2018 |
4 |
- |
- |
5 | 9 | ||||||||||
|
2019 and thereafter |
2 |
- |
- |
- |
2 | ||||||||||
|
$ |
41 |
$ |
75 |
$ |
26 |
$ |
152 |
$ |
294 | ||||||
(1) The timing of recognition of our deferred Technology Solutions revenues is dependent upon the completion of customization and any significant modifications made pursuant to existing Market Technology contracts and the timing of Corporate Solutions subscription-based contracts. As such, as it relates to Market Technology revenues, the timing represents our best estimate.
The changes in our deferred revenue during the years ended December 31, 2013 and 2012 are reflected in the following table.
|
Initial Listing Revenues |
Listing of Additional Shares Revenues |
Annual Renewal and Other Revenues |
Technology Solutions Revenues(2) |
Total |
|||||||||||
|
(in millions) |
|||||||||||||||
|
Balance at January 1, 2013 |
$ |
36 |
$ |
78 |
$ |
32 |
$ |
149 |
$ |
295 | |||||
|
Additions(1) |
17 | 38 | 247 | 245 | 547 | ||||||||||
|
Amortization(1) |
(12) | (41) | (247) | (254) | (554) | ||||||||||
|
Translation adjustment |
- |
- |
(6) | 12 | 6 | ||||||||||
|
Balance at December 31, 2013 |
$ |
41 |
$ |
75 |
$ |
26 |
$ |
152 |
$ |
294 | |||||
|
Balance at January 1, 2012 |
$ |
39 |
$ |
86 |
$ |
25 |
$ |
128 |
$ |
278 | |||||
|
Additions(1) |
11 | 31 | 213 | 98 | 353 | ||||||||||
|
Amortization(1) |
(14) | (39) | (208) | (85) | (346) | ||||||||||
|
Translation adjustment |
- |
- |
2 | 8 | 10 | ||||||||||
|
Balance at December 31, 2012 |
$ |
36 |
$ |
78 |
$ |
32 |
$ |
149 |
$ |
295 | |||||
(1) The additions and amortization for initial listing revenues, listing of additional shares revenues and annual renewal and other revenues primarily reflect revenues from our U.S. listing services business.
(2) Technology Solutions deferred revenues primarily include revenues from our Market Technology delivered client contracts in the support phase charged during the period and our Corporate Solutions subscription based contracts. For our Market Technology contracts, where customization and significant modifications to the software are made to meet the needs of our customers, total revenues, as well as costs incurred, are deferred until significant modifications are completed and delivered. Once delivered, deferred revenue and the related deferred costs are recognized over the post contract support period. For these Market Technology contracts, we have included the deferral of costs in other current assets and other non-current assets in the Consolidated Balance Sheets. The amortization of Technology Solutions deferred revenue primarily includes revenues earned from Market Technology client contracts and Corporate Solutions subscription based contracts recognized during the period.