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SALES
 9 Months Ended
Sep. 29, 2023
Revenue from Contract with Customer [Abstract]  
SALES
NOTE 6. SALES
We derive revenue primarily from the sale of products, including 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, software, or services. 
Product sales include revenue from the sale of products and equipment, which includes our software and SaaS product offerings and equipment rentals. Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation 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 $108 million as of September 29, 2023 and $82 million as of December 31, 2022. Contract assets are recorded within Prepaid expenses and other current assets in our Consolidated Condensed Balance Sheets.
Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year and costs associated with assets used by our customers in certain service arrangements. As of September 29, 2023 and December 31, 2022, we had $48 million and $42 million, respectively, in net revenue-related contract costs primarily related to certain software contracts. Revenue-related contract costs are recorded within Prepaid expenses and other current assets and Other assets in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between three and five years.
Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is recorded within Accrued expenses and other current liabilities and the noncurrent portion of deferred revenue is recorded within Other long-term liabilities in our Consolidated Condensed Balance Sheets.
Our contract liabilities consisted of the following ($ in millions):
September 29, 2023December 31, 2022
Deferred revenue - current$513.5 $509.6 
Deferred revenue - noncurrent41.1 38.0 
Total contract liabilities$554.6 $547.6 
During the three and nine-month periods ended September 29, 2023, we recognized revenue related to our contract liabilities at December 31, 2022 of $80 million and $368 million, respectively. The change in our contract liabilities from December 31, 2022 to September 29, 2023 was primarily due to the timing of billings and revenue recognized for subscription-based software contracts, PCS and extended warranty services.
Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate remaining performance obligations attributable to each of our segments is as follows ($ in millions):
September 29, 2023
Intelligent Operating Solutions$564.3 
Precision Technologies57.5 
Advanced Healthcare Solutions77.8 
Total remaining performance obligations$699.6 
The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 80 percent within the next two years, approximately 90 percent within the next three years, and substantially all within four years.
Disaggregation of Revenue
We disaggregate revenue from contracts with customers by sales of products and software and services, geographic location, and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.
Disaggregation of revenue for the three-month period ended September 29, 2023 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$1,258.9 $538.4 $471.6 $248.9 
Sales of services235.6 105.9 59.0 70.7 
Total$1,494.5 $644.3 $530.6 $319.6 
Geographic:
United States$833.7 $366.1 $289.0 $178.6 
China162.1 52.5 82.2 27.4 
All other (each country individually less than 5% of total sales)
498.7 225.7 159.4 113.6 
Total$1,494.5 $644.3 $530.6 $319.6 
End markets:(a)
Direct sales:
  Healthcare$353.3 $10.9 $35.1 $307.3 
  Industrial & Manufacturing340.1 226.3 109.8 4.0 
  Utilities & Power105.3 46.5 58.8 — 
  Government145.5 73.2 64.0 8.3 
  Communications, Electronics & Semiconductor101.1 24.7 76.4 — 
  Aerospace & Defense74.9 0.1 74.8 — 
  Oil & Gas70.6 68.3 2.3 — 
  Retail & Consumer82.4 64.8 17.6 — 
  Other167.3 96.9 70.4 — 
     Total direct sales1,440.5 611.7 509.2 319.6 
Distributors54.0 32.6 21.4 — 
Total$1,494.5 $644.3 $530.6 $319.6 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the three-month period ended September 30, 2022 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$1,227.7 $519.2 $467.3 $241.2 
Sales of services228.3 94.5 56.4 77.4 
Total$1,456.0 $613.7 $523.7 $318.6 
Geographic:
United States$799.0 $342.0 $267.8 $189.2 
China186.0 56.6 102.6 26.8 
All other (each country individually less than 5% of total sales)
471.0 215.1 153.3 102.6 
Total$1,456.0 $613.7 $523.7 $318.6 
End markets:(a)
Direct sales:
  Healthcare$354.1 $11.1 $42.1 $300.9 
  Industrial & Manufacturing334.5 217.6 111.3 5.6 
  Utilities & Power93.1 45.5 47.6 — 
  Government122.7 65.5 48.7 8.5 
  Communications, Electronics & Semiconductor111.3 24.5 86.4 0.4 
  Aerospace & Defense66.9 0.1 66.8 — 
  Oil & Gas66.4 65.3 1.1 — 
  Retail & Consumer83.9 61.7 22.2 — 
  Other166.3 91.2 75.1 — 
     Total direct sales1,399.2 582.5 501.3 315.4 
Distributors56.8 31.2 22.4 3.2 
Total$1,456.0 $613.7 $523.7 $318.6 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the nine-month period ended September 29, 2023 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$3,786.3 $1,622.2 $1,412.9 $751.2 
Sales of services695.3 307.3 170.6 217.4 
Total$4,481.6 $1,929.5 $1,583.5 $968.6 
Geographic:
United States$2,433.0 $1,068.2 $813.5 $551.3 
China522.4 176.0 268.5 77.9 
All other (each country individually less than 5% of total sales)
1,526.2 685.3 501.5 339.4 
Total$4,481.6 $1,929.5 $1,583.5 $968.6 
End markets:(a)
Direct sales:
  Healthcare$1,052.3 $33.4 $104.9 $914.0 
  Industrial & Manufacturing1,051.1 687.2 345.8 18.1 
  Utilities & Power308.8 140.1 168.7 — 
  Government389.5 212.2 151.9 25.4 
  Communications, Electronics & Semiconductor304.4 73.6 229.4 1.4 
  Aerospace & Defense218.8 0.4 218.4 — 
  Oil & Gas212.5 201.8 10.7 — 
  Retail & Consumer249.7 189.2 60.5 — 
  Other519.0 292.0 227.0 — 
     Total direct sales4,306.1 1,829.9 1,517.3 958.9 
Distributors175.5 99.6 66.2 9.7 
Total$4,481.6 $1,929.5 $1,583.5 $968.6 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the nine-month period ended September 30, 2022 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions    
Sales:
Sales of products and software$3,609.8 $1,553.9 $1,322.6 $733.3 
Sales of services686 277.5 162.6 245.9 
Total$4,295.8 $1,831.4 $1,485.2 $979.2 
Geographic:
United States$2,317.9 $1,005.0 $751.4 $561.5 
China514.1 160.6 273.5 80.0 
All other (each country individually less than 5% of total sales)
1,463.8 665.8 460.3 337.7 
Total$4,295.8 $1,831.4 $1,485.2 $979.2 
End markets:(a)
Direct sales:
  Healthcare$1,077.2 $34.6 $120.5 $922.1 
  Industrial & Manufacturing998.3 656.1 322.7 19.5 
  Utilities & Power273.4 136.4 137.0 — 
  Government338.5 177.6 134.8 26.1 
  Communications, Electronics & Semiconductor301.2 74.6 225.2 1.4 
  Aerospace & Defense187.0 0.4 186.6 — 
  Oil & Gas199.8 193.4 6.4 — 
  Retail & Consumer249.5 186.0 63.5 — 
  Other478.7 268.8 209.8 0.1 
     Total direct sales4,103.6 1,727.9 1,406.5 969.2 
Distributors192.2 103.5 78.7 10.0 
Total$4,295.8 $1,831.4 $1,485.2 $979.2 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.