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Sales
 6 Months Ended
Jun. 28, 2019
Revenue from Contract with Customer [Abstract]  
Sales
NOTE 8. SALES
We derive revenues primarily from the sale of Professional Instrumentation and Industrial Technologies products and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. 
Product Sales include revenues from the sale of products and equipment, which includes our software as a service product offerings and equipment rentals.
Service Sales includes revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, and services related to previously sold products.
Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were $71.1 million as of June 28, 2019 and immaterial as of December 31, 2018.
Contract Costs — We incur direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain service arrangements. Deferred sales-related commissions are generally not capitalized as the amortization period is 1 year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. As of June 28, 2019, we had $159.9 million in net revenue-related contract assets primarily related to certain software contracts recorded in the prepaid expenses and other current assets and other assets line items in our Condensed Consolidated Balance Sheet. Our revenue-related contract assets at December 31, 2018 were $144.4 million, the majority of which were recorded in property, plant and equipment on the Consolidated Condensed Balance Sheet. These assets have estimated useful lives between 3 and 8 years.
Impairment losses recognized on our revenue-related contract assets were immaterial in the three and six months ended June 28, 2019.
Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets.
Our contract liabilities consisted of the following ($ in millions):
 
June 28, 2019
 
December 31, 2018
Deferred revenue - current
$
372.1

 
$
288.1

Deferred revenue - noncurrent
97.3

 
92.6

Total contract liabilities
$
469.4

 
$
380.7


In the three and six months ended June 28, 2019, we recognized $63.8 million and $178.1 million of revenue related to our contract liabilities at December 31, 2018. The change in our contract liabilities from December 31, 2018 to June 28, 2019 was primarily due to the addition of contract liabilities from our recently acquired businesses and the timing of cash receipts and sales of PCS and extended warranty services.
Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from June 28, 2019, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate performance obligations attributable to each of our segments is as follows ($ in millions):
 
June 28, 2019
Professional Instrumentation
$
158.9

Industrial Technologies
402.2

Total remaining performance obligations
$
561.1


The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 45 percent within the next two years, approximately 75 percent within the next three years and substantially all within four years.
Disaggregation of Revenue
We disaggregate revenue from contracts with customers by sales of products and services, geographic location, major product group and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregation of revenue for the three months ended June 28, 2019 is presented as follows ($ in millions):
 
Total
 
Professional Instrumentation
 
Industrial Technologies
Sales:
 
 
 
 
 
Sales of products
$
1,623.0

 
$
966.5

 
$
656.5

Sales of services
241.7

 
166.8

 
74.9

Total
$
1,864.7

 
$
1,133.3

 
$
731.4

 
 
 
 
 
 
Geographic:
 
 
 
 
 
United States
$
1,077.7

 
$
615.6

 
$
462.1

China
154.3

 
126.4

 
27.9

All other (each country individually less than 5% of total sales)
632.7

 
391.3

 
241.4

Total
$
1,864.7

 
$
1,133.3

 
$
731.4

 
 
 
 
 
 
Major Products Group:
 
 
 
 
 
Professional tools and equipment
$
1,255.7

 
$
711.2

 
$
544.5

Industrial automation, controls and sensors
127.6

 
96.8

 
30.8

Franchise distribution
154.2

 
—

 
154.2

Medical technologies (b)
265.3

 
263.4

 
1.9

All other
61.9

 
61.9

 
—

Total
$
1,864.7

 
$
1,133.3

 
$
731.4

 
 
 
 
 
 
End markets:
 
 
 
 
 
Direct sales:
 
 
 
 
 
  Retail fueling (a)
$
486.3

 
$
—

 
$
486.3

  Industrial & Manufacturing
114.1

 
97.4

 
16.7

  Vehicle repair (a)
139.5

 
—

 
139.5

  Utilities & Power
49.1

 
49.1

 
—

Medical (a) (b)
265.3

 
263.4

 
1.9

  Other
391.5

 
323.5

 
68.0

     Total direct sales
1,445.8

 
733.4

 
712.4

Distributors(a)
418.9

 
399.9

 
19.0

Total
$
1,864.7

 
$
1,133.3

 
$
731.4

 
 
 
 
 
 
(a) Retail fueling, vehicle repair and medical include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended June 28, 2019 was $773.1 million.

Disaggregation of revenue for the three months ended June 29, 2018 is presented as follows ($ in millions):
 
Total
 
Professional Instrumentation
 
Industrial Technologies
Sales:
 
 
 
 
 
Sales of products
$
1,439.5

 
$
791.0

 
$
648.5

Sales of services
162.3

 
98.0

 
64.3

Total
$
1,601.8

 
$
889.0

 
$
712.8

 
 
 
 
 
 
Geographic:
 
 
 
 
 
United States
$
861.0

 
$
434.0

 
$
427.0

China
146.6

 
116.6

 
30.0

All other (each country individually less than 5% of total sales)
594.2

 
338.4

 
255.8

Total
$
1,601.8

 
$
889.0

 
$
712.8

 
 
 
 
 
 
Major Products Group:
 
 
 
 
 
Professional tools and equipment
$
1,169.5

 
$
643.4

 
$
526.1

Industrial automation, controls and sensors
131.6

 
98.5

 
33.1

Franchise distribution
152.2

 
—

 
152.2

Medical technologies (c)
98.1

 
96.7

 
1.4

All other
50.4

 
50.4

 
—

Total
$
1,601.8

 
$
889.0

 
$
712.8

 
 
 
 
 
 
End markets:
 
 
 
 
 
Direct sales:
 
 
 
 
 
  Retail fueling (a)
$
460.9

 
$
—

 
$
460.9

  Industrial & Manufacturing
115.7

 
97.2

 
18.5

  Vehicle repair (a)
137.7

 
—

 
137.7

  Utilities & Power
46.0

 
46.0

 
—

Medical (a) (b)
98.1

 
96.7

 
1.4

  Other
324.4

 
247.6

 
76.8

     Total direct sales
1,182.8

 
487.5

 
695.3

Distributors(a)
419.0

 
401.5

 
17.5

Total
$
1,601.8

 
$
889.0

 
$
712.8

 
 
 
 
 
 
(a) Retail fueling, vehicle repair and medical include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended June 29, 2018 was $796.7 million.
(b) Sales were previously disclosed in Other.
(c) Sales were previously disclosed in Professional tools and equipment, Industrial automation, controls and sensors and All other.

Disaggregation of revenue for the six months ended June 28, 2019 is presented as follows ($ in millions):
 
Total
 
Professional Instrumentation
 
Industrial Technologies
Sales:
 
 
 
 
 
Sales of products
$
3,028.1

 
1,792.3

 
1,235.8

Sales of services
429.5

 
288.3

 
141.2

Total
$
3,457.6

 
$
2,080.6

 
$
1,377.0

 
 
 
 
 
 
Geographic:
 
 
 
 
 
United States
$
1,965.3

 
$
1,101.6

 
$
863.7

China
304.3

 
254.8

 
49.5

All other (each country individually less than 5% of total sales)
1,188.0

 
724.2

 
463.8

Total
$
3,457.6

 
$
2,080.6

 
$
1,377.0

 
 
 
 
 
 
Major Products Group:
 
 
 
 
 
Professional tools and equipment
$
2,407.9

 
$
1,416.8

 
$
991.1

Industrial automation, controls and sensors
247.3

 
188.9

 
58.4

Franchise distribution
323.2

 
—

 
323.2

Medical technologies (c)
364.3

 
360.0

 
4.3

All other
114.9

 
114.9

 
—

Total
$
3,457.6

 
$
2,080.6

 
$
1,377.0

 
 
 
 
 
 
End markets:
 
 
 
 
 
Direct sales:
 
 
 
 
 
  Retail fueling (a)
$
874.5

 
$
—

 
$
874.5

  Industrial & Manufacturing
223.7

 
194.2

 
29.5

  Vehicle repair (a)
293.3

 
—

 
293.3

  Utilities & Power
98.7

 
98.7

 
—

Medical (a) (b)
364.3

 
360.0

 
4.3

  Other
769.2

 
630.8

 
138.4

     Total direct sales
2,623.7

 
1,283.7

 
1,340.0

Distributors(a)
833.9

 
796.9

 
37.0

Total
$
3,457.6

 
$
2,080.6

 
$
1,377.0

 
 
 
 
 
 
(a) Retail fueling, vehicle repair and medical include sales to these end markets made through third-party distributors. Total distributor sales for the six months ended June 28, 2019 was $1,518.3 million.
(b) Certain sales were previously disclosed in Other.
(c) Certain sales were previously disclosed in Professional tools and equipment, Industrial automation, controls and sensors and All other.

Disaggregation of revenue for the six months ended June 29, 2018 is presented as follows ($ in millions):
 
Total
 
Professional Instrumentation
 
Industrial Technologies
Sales:
 
 
 
 
 
Sales of products
$
2,771.9

 
$
1,567.6

 
$
1,204.3

Sales of services
322.1

 
193.1

 
129.0

Total
$
3,094.0

 
$
1,760.7

 
$
1,333.3

 
 
 
 
 
 
Geographic:
 
 
 
 
 
United States
$
1,649.7

 
$
840.4

 
$
809.3

China
290.2

 
241.7

 
48.5

All other (each country individually less than 5% of total sales)
1,154.1

 
678.6

 
475.5

Total
$
3,094.0

 
$
1,760.7

 
$
1,333.3

 
 
 
 
 
 
Major Products Group:
 
 
 
 
 
Professional tools and equipment
$
2,214.9

 
$
1,274.3

 
$
940.6

Industrial automation, controls and sensors
261.3

 
197.1

 
64.2

Franchise distribution
325.2

 
—

 
325.2

Medical technologies (c)
194.8

 
191.5

 
3.3

All other
97.8

 
97.8

 
—

Total
$
3,094.0

 
$
1,760.7

 
$
1,333.3

 
 
 
 
 
 
End markets:
 
 
 
 
 
Direct sales:
 
 
 
 
 
  Retail fueling (a)
$
809.2

 
$
—

 
$
809.2

  Industrial & Manufacturing
221.2

 
187.6

 
33.6

  Vehicle repair (a)
296.5

 
—

 
296.5

  Utilities & Power
101.4

 
101.4

 
—

Medical (b)
194.8

 
191.5


3.3

  Other
623.4

 
467.1

 
156.3

     Total direct sales
2,246.5

 
947.6

 
1,298.9

Distributors(a)
847.5

 
813.1

 
34.4

Total
$
3,094.0

 
$
1,760.7

 
$
1,333.3

 
 
 
 
 
 
(a) Retail fueling, vehicle repair and medical include sales to these end markets made through third-party distributors. Total distributor sales for the six months ended June 29, 2018 was $1,524.8 million.
(b) Sales were previously disclosed in Other.
(c) Sales were previously disclosed in Professional tools and equipment, Industrial automation, controls and sensors and All other.