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Sales
 3 Months Ended
Mar. 27, 2020
Revenue from Contract with Customer [Abstract]  
Sales
NOTE 6. SALES
We derive revenues primarily from the sale of Professional Instrumentation and Industrial Technologies products and software and services. Revenue is recognized when control of promised products and software or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products and software or services. 
Sales of products and software includes revenues from the sale of products and equipment, software as a service product offerings, and equipment rentals.
Sales of services 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 $76 million as of March 27, 2020 and $79 million as of December 31, 2019.
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 one year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. As of March 27, 2020 and December 31, 2019, we had $119 million and $147 million, respectively, in net revenue-related contract assets primarily related to certain software contracts. Revenue-related contract assets are recorded in the Prepaid expenses and other current assets and Other assets line items in our Condensed Consolidated Balance Sheets. These assets have estimated useful lives between 3 and 8 years.
Impairment losses recognized on our revenue-related contract assets were immaterial during the three months ended March 27, 2020.
Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets.
Our contract liabilities consisted of the following ($ in millions):
March 27, 2020December 31, 2019
Deferred revenue - current$423.5  $410.1  
Deferred revenue - noncurrent95.1  99.2  
Total contract liabilities$518.6  $509.3  
During the three months ended March 27, 2020, we recognized $126 million of revenue related to our contract liabilities at December 31, 2019. The change in our contract liabilities from December 31, 2019 to March 27, 2020 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services.
Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from March 27, 2020, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate performance obligations attributable to each of our segments is as follows ($ in millions):
March 27, 2020
Professional Instrumentation$145.2  
Industrial Technologies379.4  
Total remaining performance obligations$524.6  
The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 40 percent within the next two years, approximately 70 percent within the next three years and substantially all within four years.
Disaggregation of Revenue
We disaggregate revenue from contracts with customers by sales of products and software and services, geographic location, major product group and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregation of revenue for the three months ended March 27, 2020 is presented as follows ($ in millions):
TotalProfessional InstrumentationIndustrial Technologies
Sales:
Sales of products and software$1,487.8  $940.5  $547.3  
Sales of services225.7  163.9  61.8  
Total$1,713.5  $1,104.4  $609.1  
Geographic:
United States$1,019.8  $594.9  $424.9  
China127.5  119.0  8.5  
All other (each country individually less than 5% of total sales)566.2  390.5  175.7  
Total$1,713.5  $1,104.4  $609.1  
Major Products Group:
Professional tools and equipment$1,107.3  $658.6  $448.7  
Industrial automation, controls and sensors109.6  109.6  —  
Franchise distribution160.4  —  160.4  
Medical technologies280.0  280.0  —  
All other56.2  56.2  —  
Total$1,713.5  $1,104.4  $609.1  
End markets:
Direct sales:
  Retail fueling (a)
$396.5  $—  $396.5  
  Industrial & Manufacturing109.0  109.0  —  
  Vehicle repair (a)
143.2  —  143.2  
  Utilities & Power43.9  43.9  —  
Medical (a)
280.0  280.0  —  
  Other355.8  290.8  65.0  
     Total direct sales1,328.4  723.7  604.7  
Distributors(a)
385.1  380.7  4.4  
Total$1,713.5  $1,104.4  $609.1  
(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 March 27, 2020 was $739.0 million.
Disaggregation of revenue for the three months ended March 29, 2019 is presented as follows ($ in millions):
Total
Professional Instrumentation (a)
Industrial Technologies (a)
Sales:
Sales of products and software$1,405.1  $856.2  $548.9  
Sales of services187.8  121.5  66.3  
Total$1,592.9  $977.7  $615.2  
Geographic:
United States$887.6  $496.1  $391.5  
China150.0  131.2  18.8  
All other (each country individually less than 5% of total sales)555.3  350.4  204.9  
Total$1,592.9  $977.7  $615.2  
Major Products Group:
Professional tools and equipment$1,151.8  $705.6  $446.2  
Industrial automation, controls and sensors120.1  120.1  —  
Franchise distribution169.0  —  169.0  
Medical technologies (d)
99.0  99.0  —  
All other53.0  53.0  —  
Total$1,592.9  $977.7  $615.2  
End markets:
Direct sales:
  Retail fueling (c)
$388.2  $—  $388.2  
  Industrial & Manufacturing109.6  109.6  —  
  Vehicle repair (c)
153.8  —  153.8  
  Utilities & Power49.6  49.6  —  
Medical (c) (b)
99.0  99.0  —  
  Other377.7  309.9  67.8  
     Total direct sales1,177.9  568.1  609.8  
Distributors(c)
415.0  409.6  5.4  
Total$1,592.9  $977.7  $615.2  
(a) Beginning January 1, 2020, our Hengstler and Dynapar businesses are reported within our Professional Instrumentation segment. Previously, these businesses were reported within our Industrial Technologies segment. Prior year balances have been reclassified to reflect current year presentation.
(b) Sales were previously disclosed in Other.
(c) 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 March 29, 2019 was $745.2 million.
(d) Sales were previously disclosed in Professional tools and equipment, Industrial automation, controls and sensors, and All other.