Sales

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Sales

NOTE 13. SALES

We derive revenue primarily from the sales of products and software, 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.

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 million as of December 31, 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 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 December 31, 2021, we had $27 million in net revenue-related contract assets primarily related to certain software contracts recorded in Prepaid expenses and other current assets and Other assets in our Consolidated Balance Sheet. Our revenue-related contract assets at December 31, 2020 were $31 million. These assets have estimated useful lives between 3 and 8 years.

Impairment losses recognized on our contract-related assets were immaterial during both the years ended December 31, 2021 and December 31, 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 Balance Sheets.

Our contract liabilities as of December 31 consisted of the following ($ in millions):

	2021		2020
Deferred revenue - current	$	457.6	$	376.4
Deferred revenue - noncurrent	33.8		34.2
Total contract liabilities	$	491.4	$	410.6

In the year ended December 31, 2021, we recognized $307 million of revenue-related to our contract liabilities at January 1, 2021. The change in our contract liabilities from December 31, 2020 to December 31, 2021 was primarily due to an increase of $52.4 million from acquisitions 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 and the average contract value for software contracts, 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 as of December 31, 2021 is as follows ($ in millions):

	2021
Intelligent Operating Solutions	$	638.7
Precision Technologies	52.9
Advanced Healthcare Solutions	48.5
Total remaining performance obligations	$	740.1

The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 80 percent within the next two years, approximately 90 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 product 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 year ended December 31, 2021 is presented as follows ($ in millions):

	Total		Intelligent Operating Solutions		Precision Technologies		Advanced Healthcare Solutions
Sales:
Sales of products	$	4,496.1	$	1,899.8	$	1,630.6	$	965.7
Sales of services	758.6		269.6		218.3		270.7
Total	$	5,254.7	$	2,169.4	$	1,848.9	$	1,236.4
Geographic:
United States	$	2,683.0	$	1,118.1	$	921.2	$	643.7
China	650.7		212.3		321.1		117.3
All other (each country individually less than 5% of total sales)	1,921.0		839.0		606.6		475.4
Total	$	5,254.7	$	2,169.4	$	1,848.9	$	1,236.4
End markets:
Direct sales:(a)
Medical	$	1,332.7	$	37.7	$	138.4	$	1,156.6
Industrial & Manufacturing	1,256.9		816.0		416.3		24.6
Utilities & Power	390.2		223.4		166.8		—
Government	389.2		203.8		145.8		39.6
Communication, Electronics & Semiconductor	381.4		118.0		261.5		1.9
Aerospace & Defense	239.0		—		239.0		—
Oil & Gas	262.2		252.1		10.1		—
Retail & Consumer	217.2		129.0		88.2		—
Other	506.3		252.3		253.9		0.1
Total direct sales	4,975.1		2,032.3		1,720.0		1,222.8
Distributors	279.6		137.1		128.9		13.6
Total	$	5,254.7	$	2,169.4	$	1,848.9	$	1,236.4
(a) Direct Sales also include sales made through third-party distributors to these end markets.

Disaggregation of revenue for the year ended December 31, 2020 is presented as follows ($ in millions):

	Total		Intelligent Operating Solutions		Precision Technologies		Advanced Healthcare Solutions
Sales:
Sales of products	$	3,956.7	$	1,677.2	$	1,445.7	$	833.8
Sales of services	677.7		206.5		205.6		265.6
Total	$	4,634.4	$	1,883.7	$	1,651.3	$	1,099.4
Geographic:
United States	$	2,436.6	$	970.3	$	856.0	$	610.3
China	534.1		172.0		265.8		96.3
All other (each country individually less than 5% of total sales)	1,663.7		741.4		529.5		392.8
Total	$	4,634.4	$	1,883.7	$	1,651.3	$	1,099.4
End markets:(a)
Direct sales:
Medical	$	1,185.2	$	39.1	$	114.0	$	1,032.1
Industrial & Manufacturing	1,057.0		700.2		335.3		21.5
Utilities & Power	357.8		208.3		149.5		—
Government	348.0		170.5		146.3		31.2
Communication, Electronics & Semiconductor	290.9		116.3		172.5		2.1
Aerospace & Defense	250.3		20.4		229.9		—
Oil & Gas	228.6		217.7		10.9		—
Retail & Consumer	171.3		90.4		80.9		—
Other	480.4		225.3		255.1		—
Total direct sales	4,369.5		1,788.2		1,494.4		1,086.9
Distributors	264.9		95.5		156.9		12.5
Total	$	4,634.4	$	1,883.7	$	1,651.3	$	1,099.4
(a) Direct Sales also include sales made through third-party distributors to these end markets.

Disaggregation of revenue for the year ended December 31, 2019 is presented as follows ($ in millions):

	Total		Intelligent Operating Solutions		Precision Technologies		Advanced Healthcare Solutions
Sales:
Sales of products	$	3,922.5	$	1,677.6	$	1,587.0	$	657.9
Sales of services	641.4		221.3		221.4		198.7
Total	$	4,563.9	$	1,898.9	$	1,808.4	$	856.6
Geographic:
United States	$	2,394.2	$	1,135.7	$	917.4	$	341.1
China	501.2		181.6		279.5		40.1
All other (each country individually less than 5% of total sales)	1,668.5		581.6		611.5		475.4
Total	$	4,563.9	$	1,898.9	$	1,808.4	$	856.6
End markets:(a)
Direct sales:
Medical	$	925.3	$	16.2	$	104.0	$	805.1
Industrial & Manufacturing	1,050.4		680.2		349.8		20.4
Utilities & Power	396.1		217.2		178.9		—
Government	284.3		117.2		148.9		18.2
Communication, Electronics & Semiconductor	363.1		131.4		231.7		—
Aerospace & Defense	276.8		22.3		254.5		—
Oil & Gas	222.9		207.6		15.3		—
Retail & Consumer	219.9		116.0		103.4		0.5
Other	528.4		252.2		275.9		0.3
Total direct sales	4,267.2		1,760.3		1,662.4		844.5
Distributors	296.7		138.6		146.0		12.1
Total	$	4,563.9	$	1,898.9	$	1,808.4	$	856.6
(a) Direct Sales also include sales made through third-party distributors to these end markets.