Revenue

9 Months Ended

Oct. 03, 2021

Revenue from Contract with Customer [Abstract]

Revenue

2. REVENUE

Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of instruments and consumables used in genetic analysis. Service and other revenue primarily consists of revenue generated from genotyping and sequencing services, instrument service contracts, development and licensing agreements, and cancer detection testing services related to the GRAIL business.

Revenue by Source

	Q3 2021						Q3 2020
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	723	$	71	$	794	$	500	$	62	$	562
Instruments	180		4		184		109		5		114
Total product revenue	903		75		978		609		67		676
Service and other revenue	112		18		130		99		19		118
Total revenue	$	1,015	$	93	$	1,108	$	708	$	86	$	794

	YTD 2021						YTD 2020
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	2,123	$	224	$	2,347	$	1,440	$	178	$	1,618
Instruments	544		12		556		276		10		286
Total product revenue	2,667		236		2,903		1,716		188		1,904
Service and other revenue	348		76		424		317		65		382
Total revenue	$	3,015	$	312	$	3,327	$	2,033	$	253	$	2,286

Revenue by Geographic Area

Based on region of destination (in millions)	Q3 2021		Q3 2020		YTD 2021		YTD 2020
Americas	$	583	$	436	$	1,733	$	1,248
Europe, Middle East, and Africa	313		213		938		602
Greater China (1)	122		83		382		246
Asia-Pacific	90		62		274		190
Total revenue	$	1,108	$	794	$	3,327	$	2,286

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(1)Region includes revenue from China, Taiwan, and Hong Kong.

Performance Obligations

We regularly enter into contracts with multiple performance obligations. Most performance obligations are generally satisfied within a short time frame, approximately three to six months, after the contract execution date. As of October 3, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,131 million, of which approximately 90% is expected to be converted to revenue in the next twelve months, approximately 8% in the following twelve months, and the remainder thereafter.

Contract Liabilities

Contract liabilities, which consist of deferred revenue and customer deposits, as of October 3, 2021 and January 3, 2021 were $256 million and $230 million, respectively, of which the short-term portions of $198 million and $186 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in Q3 2021 and YTD 2021 included $32 million and $159 million, respectively, of previously deferred revenue that was included in contract liabilities as of January 3, 2021.