Revenue Recognition

9 Months Ended

Oct. 01, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

2 Revenue Recognition

The Company’s deferred revenue liabilities on the consolidated balance sheets consist of the obligation on instrument service contracts and customer payments received in advance, prior to transfer of control of the instrument. The Company records deferred revenue primarily related to its service contracts, where consideration is billable at the beginning of the service period.

The following is a summary of the activity of the Company’s deferred revenue and customer advances for the nine months ended October 1, 2022 and October 2, 2021 (in thousands):

	October 1, 2022			October 2, 2021
Balance at the beginning of the period	$	273,598		$	239,759
Recognition of revenue included in balance at beginning of the period		(213,527	)		(197,279	)
Revenue deferred during the period, net of revenue recognized		243,853			264,184
Balance at the end of the period	$	303,924		$	306,664

The Company classified $55 million and $46 million of deferred revenue and customer advances in other long-term liabilities at October 1, 2022 and December 31, 2021, respectively.

The amount of deferred revenue and customer advances equals the transaction price allocated to unfulfilled performance obligations for the period presented. Such amounts are expected to be recognized in the future as follows (in thousands):

	October 1, 2022
Deferred revenue and customer advances expected to be recognized in:
One year or less	$	248,884
13-24 months		31,632
25 months and beyond		23,408
Total	$	303,924