Revenue

3 Months Ended

Apr. 03, 2022

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

	Q1 2022						Q1 2021
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	778	$	75	$	853	$	695	$	79	$	774
Instruments	211		6		217		176		3		179
Total product revenue	989		81		1,070		871		82		953
Service and other revenue	120		33		153		108		32		140
Total revenue	$	1,109	$	114	$	1,223	$	979	$	114	$	1,093

Revenue by Geographic Area

Based on region of destination (in millions)	Q1 2022		Q1 2021
Americas	$	648	$	562
Europe, Middle East, and Africa	316		305
Greater China(1)	127		127
Asia-Pacific	132		99
Total revenue	$	1,223	$	1,093

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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 April 3, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,276 million, of which approximately 91% is expected to be converted to revenue in the next twelve months, approximately 6% in the following twelve months, and the remainder thereafter.

Contract Assets and Liabilities

Contract assets, which consist of revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing, were $16 million as of April 3, 2022 and January 2, 2022, which were recorded in prepaid expenses and other current assets.

Contract liabilities, which consist of deferred revenue and customer deposits, as of April 3, 2022 and January 2, 2022 were $293 million and $297 million, respectively, of which the short-term portions of $232 million and $234 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in Q1 2022 included $106 million of previously deferred revenue that was included in contract liabilities as of January 2, 2022.