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Sales
 6 Months Ended
Jul. 02, 2021
Revenue from Contract with Customer [Abstract]  
Sales
NOTE 7. SALES
We derive revenues primarily from the sale of products, software, and services. Revenue is recognized when control of promised products, 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, software, or services. 
Sales of products and software includes revenues from the sale of products and equipment, software 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 $70 million as of July 2, 2021 and $56 million as of December 31, 2020.
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 software 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 July 2, 2021 and December 31, 2020, we had $29 million and $31 million, respectively, in net revenue-related contract assets primarily related to certain software contracts. Revenue-related contract assets are recorded in the Prepaid expenses and other current assets and Other assets line items in our Condensed Consolidated Balance Sheets. These assets have estimated useful lives between 3 and 8 years.
Impairment losses recognized on our revenue-related contract assets were immaterial during the three and six month periods ended July 2, 2021 and June 26, 2020.
Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the Consolidated Condensed Balance Sheets.
Our contract liabilities consisted of the following ($ in millions):
July 2, 2021December 31, 2020
Deferred revenue - current$398.6 $376.4 
Deferred revenue - noncurrent30.4 34.2 
Total contract liabilities$429.0 $410.6 
During the three and six month periods ended July 2, 2021, we recognized revenue related to our contract liabilities at December 31, 2020 of $65 million and $188 million, respectively. The change in our contract liabilities from December 31, 2020 to July 2, 2021 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services.
Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from July 2, 2021, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate performance obligations attributable to each of our segments is as follows ($ in millions):
July 2, 2021
Intelligent Operating Solutions$106.7 
Precision Technologies25.1 
Advanced Healthcare Solutions4.0 
Total remaining performance obligations$135.8 
The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 55 percent within the next two years, approximately 85 percent within the next three years, and substantially all within four years.
Disaggregation of Revenue
We disaggregate revenue from contracts with customers by sales of products and software and services, geographic location, and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregation of revenue for the three month period ended July 2, 2021 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$1,136.0 $478.4 $417.5 $240.1 
Sales of services183.7 63.4 54.4 65.9 
Total$1,319.7 $541.8 $471.9 $306.0 
Geographic:
United States$671.6 $276.7 $236.3 $158.6 
China163.5 53.7 81.7 28.1 
All other (each country individually less than 5% of total sales)484.6 211.4 153.9 119.3 
Total$1,319.7 $541.8 $471.9 $306.0 
End markets:(a)
Direct sales:
  Medical $328.6 $8.4 $33.9 $286.3 
  Industrial & Manufacturing312.1 200.7 105.4 6.0 
  Utilities & Power97.8 57.2 40.6 — 
  Government99.0 51.3 37.9 9.8 
  Communication, Electronics & Semiconductor97.6 32.8 64.3 0.5 
  Aerospace & Defense65.7 — 65.7 — 
  Oil & Gas66.7 64.0 2.7 — 
  Retail & Consumer44.6 18.7 25.9 — 
  Other137.3 71.7 65.6 — 
     Total direct sales1,249.4 504.8 442.0 302.6 
Distributors70.3 37.0 29.9 3.4 
Total$1,319.7 $541.8 $471.9 $306.0 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the three month period ended June 26, 2020 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$887.0 $363.9 $330.5 $192.6 
Sales of services154.6 49.1 46.8 58.7 
Total$1,041.6 $413.0 $377.3 $251.3 
Geographic:
United States$558.1 $220.2 $195.1 $142.8 
China130.9 40.6 67.2 23.1 
All other (each country individually less than 5% of total sales)352.6 152.2 115.0 85.4 
Total$1,041.6 $413.0 $377.3 $251.3 
End markets:(a)
Direct sales:
  Medical$274.6 $8.9 $29.9 $235.8 
  Industrial & Manufacturing241.3 158.9 76.9 5.5 
  Utilities & Power77.0 43.3 33.7 — 
  Government78.7 39.2 32.5 7.0 
  Communications, Electronics & Semiconductor64.6 24.8 39.4 0.4 
  Aerospace & Defense57.1 3.5 53.6 — 
  Oil & Gas51.0 48.1 2.9 — 
  Retail & Consumer38.6 21.2 17.4 — 
  Other105.6 53.0 52.6 — 
     Total direct sales988.5 400.9 338.9 248.7 
Distributors53.1 12.1 38.4 2.6 
Total$1,041.6 $413.0 $377.3 $251.3 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the six month period ended July 2, 2021 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$2,213.2 $931.4 $810.6 $471.2 
Sales of services365.7 121.3 108.7 135.7 
Total$2,578.9 $1,052.7 $919.3 $606.9 
Geographic:
United States$1,292.4 $524.9 $455.4 $312.1 
China327.8 113.2 158.5 56.1 
All other (each country individually less than 5% of total sales)958.7 414.6 305.4 238.7 
Total$2,578.9 $1,052.7 $919.3 $606.9 
End markets:(a)
Direct sales:
  Medical $655.4 $17.8 $68.9 $568.7 
  Industrial & Manufacturing614.4 397.2 205.4 11.8 
  Utilities & Power192.7 111.5 81.2 — 
  Government186.9 96.1 72.3 18.5 
  Communication, Electronics & Semiconductor185.4 60.3 123.9 1.2 
  Aerospace & Defense121.1 — 121.1 — 
  Oil & Gas130.0 124.5 5.5 — 
  Retail & Consumer90.1 42.2 47.9 — 
  Other262.2 127.8 134.4 — 
     Total direct sales2,438.2 977.4 860.6 600.2 
Distributors140.7 75.3 58.7 6.7 
Total$2,578.9 $1,052.7 $919.3 $606.9 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the six month period ended June 26, 2020 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$1,832.5 $780.1 $670.4 $382.0 
Sales of services317.2 99.6 98.2 119.4 
Total$2,149.7 $879.7 $768.6 $501.4 
Geographic:
United States$1,163.2 $469.6 $402.5 $291.1 
China249.5 87.2 121.5 40.8 
All other (each country individually less than 5% of total sales)737.0 322.9 244.6 169.5 
Total$2,149.7 $879.7 $768.6 $501.4 
End markets:(a)
Direct sales:
  Medical$544.4 $19.5 $54.8 $470.1 
  Industrial & Manufacturing490.9 321.7 158.7 10.5 
  Utilities & Power168.0 97.5 70.5 — 
  Government157.8 77.3 66.2 14.3 
  Communications, Electronics & Semiconductor127.8 51.0 76.0 0.8 
  Aerospace & Defense113.2 6.8 106.4 — 
  Oil & Gas109.6 102.9 6.7 — 
  Retail & Consumer84.0 43.9 40.1 — 
  Other224.6 110.9 113.7 — 
     Total direct sales2,020.3 831.5 693.1 495.7 
Distributors129.4 48.2 75.5 5.7 
Total$2,149.7 $879.7 $768.6 $501.4 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.