Revenue

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

The following table presents revenue disaggregated by types and geography (in millions):

	Years Ended December 31,
U.S.	2019		2018		2017
Instruments and accessories	$	1,790.4	$	1,485.2	$	1,263.1
Systems	830.7		692.2		603.5
Services	508.4		456.1		419.2
Total U.S. revenue	$	3,129.5	$	2,633.5	$	2,285.8
Outside of U.S. (“OUS”)
Instruments and accessories	$	617.8	$	476.8	$	373.8
Systems	515.4		434.9		324.9
Services	215.8		179.0		153.7
Total OUS revenue	$	1,349.0	$	1,090.7	$	852.4
Total
Instruments and accessories	$	2,408.2	$	1,962.0	$	1,636.9
Systems	1,346.1		1,127.1		928.4
Services	724.2		635.1		572.9
Total revenue	$	4,478.5	$	3,724.2	$	3,138.2

Remaining Performance Obligations

The transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which revenue has not yet been recognized. A significant portion of this amount relates to performance obligations in the Company’s service contracts that will be satisfied and recognized as revenue in future periods. In addition, non-lease elements associated with the Company’s lease arrangements are primarily comprised of service contracts that will be satisfied and recognized as revenue in future periods. The transaction price allocated to the remaining performance obligations and the non-lease elements associated with the lease arrangements were $1,597 million as of December 31, 2019. The remaining performance obligations are expected to be satisfied over the term of the individual sales arrangements, which generally are 5 years. Service revenue associated with the lease arrangements will generally be recognized over the service period, which generally coincides with the lease term.

Contract Assets and Liabilities

The following information summarizes the Company’s contract assets and liabilities (in millions):

	As of
	December 31, 2019		December 31, 2018
Contract assets	$	20.8	$	12.4
Deferred revenue	$	365.2	$	327.3

The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due 30 days from date of invoice. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. Deferred revenue for the periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to those services having been performed. The associated deferred revenue is generally recognized over the term of the service period. The Company did not have any significant impairment losses on its contract assets for the periods presented.

During the year ended December 31, 2019, the Company recognized $307 million of revenue that was included in the deferred revenue balance as of December 31, 2018. During the year ended December 31, 2018, the Company recognized $269 million of revenue that was included in the deferred revenue balance as of December 31, 2017.

Intuitive System Leasing

The following table presents revenue from Intuitive System Leasing arrangements (in millions):

	Years Ended December 31,
	2019		2018		2017
Sales-type lease revenue	$	81.6	$	69.8	$	49.5
Operating lease revenue	$	106.9	$	51.4	$	25.9