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SALES
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
SALES NOTE 11. SALES
We derive revenue primarily from the sales 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.
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 $118 million as of December 31, 2024 and $108 million as of December 31, 2023. Contract assets are recorded within Prepaid expenses and other current assets in our Consolidated 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 December 31, 2024 and 2023, we had $59 million and $51 million, respectively, in net revenue-related contract cost assets primarily related to certain software contracts. Revenue-related contract costs are recorded within Other assets in our Consolidated Balance Sheets. These assets have estimated useful lives between three and five years.
Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS, and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is recorded within Accrued expenses and other current liabilities and the non-current portion of deferred revenue is recorded within Other long-term liabilities in our Consolidated Balance Sheets.
Our contract liabilities as of December 31 consisted of the following ($ in millions):
20242023
Deferred revenue - current$553.2 $544.6 
Deferred revenue - noncurrent58.9 45.8 
Total contract liabilities$612.1 $590.4 
In the year ended December 31, 2024, we recognized $470 million of revenue related to our contract liabilities at January 1, 2024. The change in our contract liabilities from December 31, 2023 to December 31, 2024 was primarily due to the timing of billings and recognition as revenue of subscription-based software contracts, PCS and extended warranty services.
Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate remaining performance obligations attributable to each of our segments as of December 31, 2024 is as follows ($ in millions):
2024
Intelligent Operating Solutions$610.4 
Precision Technologies57.8 
Advanced Healthcare Solutions93.9 
Total remaining performance obligations$762.1 
The majority of remaining performance obligations are related to subscription-based software contracts, and service and support contracts, which we expect to fulfill approximately 80 percent within the next two years, approximately 90 percent within the next three years, and substantially all within four years.
Disaggregation of Revenue
We disaggregate revenue from contracts with customers by sales of product and software and services, geographic location, and end market for each of our segments, as we believe it best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors.
Disaggregation of revenue for the year ended December 31, 2024 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions
Sales:
Sales of products and software$5,282.3 $2,281.3 $1,988.6 $1,012.4 
Sales of services949.5 433.4 240.8 275.3 
Total$6,231.8 $2,714.7 $2,229.4 $1,287.7 
Geographic:
United States$3,372.0 $1,514.2 $1,136.3 $721.5 
China648.2 219.8 325.0 103.4 
All other
2,211.6 980.7 768.1 462.8 
Total$6,231.8 $2,714.7 $2,229.4 $1,287.7 
End markets: (a)
Direct sales:
Healthcare
$1,451.8 $46.6 $188.0 $1,217.2 
Industrial & Manufacturing1,336.2 947.1 370.8 18.3 
Government
590.2 310.2 241.4 38.6 
Utilities & Power427.4 198.6 228.8 — 
Communication, Electronics & Semiconductor368.1 112.4 255.7 — 
Aerospace & Defense331.2 0.5 330.7 — 
Retail & Consumer335.1 270.8 64.3 — 
Oil & Gas293.7 281.8 11.9 — 
Other717.9 392.5 325.4 — 
Total direct sales5,851.6 2,560.5 2,017.0 1,274.1 
Distributors380.2 154.2 212.4 13.6 
Total$6,231.8 $2,714.7 $2,229.4 $1,287.7 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the year ended December 31, 2023 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions
Sales:
Sales of products and software$5,137.7 $2,202.5 $1,979.0 $956.2 
Sales of services927.6 409.7 244.7 273.2 
Total$6,065.3 $2,612.2 $2,223.7 $1,229.4 
Geographic:
United States$3,288.4 $1,441.6 $1,165.1 $681.7 
China694.9 228.6 361.8 104.5 
All other
2,082.0 942.0 696.8 443.2 
Total$6,065.3 $2,612.2 $2,223.7 $1,229.4 
End markets:(a)
Direct sales:
Healthcare
$1,431.7 $47.6 $221.7 $1,162.4 
Industrial & Manufacturing1,410.1 931.4 461.3 17.4 
Government
555.0 288.5 229.8 36.7 
Utilities & Power400.2 189.3 210.9 — 
Communication, Electronics & Semiconductor398.3 100.4 297.9 — 
Aerospace & Defense303.7 0.6 303.1 — 
Retail & Consumer338.6 258.2 80.4 — 
Oil & Gas281.7 271.6 10.1 — 
Other689.0 384.7 304.3 — 
Total direct sales5,808.3 2,472.3 2,119.5 1,216.5 
Distributors257.0 139.9 104.2 12.9 
Total$6,065.3 $2,612.2 $2,223.7 $1,229.4 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.
Disaggregation of revenue for the year ended December 31, 2022 is presented as follows ($ in millions):
TotalIntelligent Operating SolutionsPrecision TechnologiesAdvanced Healthcare Solutions
Sales:
Sales of products and software$4,920.1 $2,097.2 $1,900.8 $922.1 
Sales of services905.6 368.9 251.5 285.2 
Total$5,825.7 $2,466.1 $2,152.3 $1,207.3 
Geographic:
United States$3,136.8 $1,356.0 $1,107.9 $672.9 
China702.1 217.9 378.7 105.5 
All other
1,986.8 892.2 665.7 428.9 
Total$5,825.7 $2,466.1 $2,152.3 $1,207.3 
End markets:(a)
Direct sales:
Healthcare
$1,458.0 $46.5 $270.4 $1,141.1 
Industrial & Manufacturing1,352.0 887.9446.2 17.9 
Government
471.0 241.3 194.8 34.9 
Utilities & Power368.9 183.1 185.8 — 
Communication, Electronics & Semiconductor399.8 96.3 303.5 — 
Aerospace & Defense259.7 0.6 259.1 — 
Retail & Consumer335.7 248.9 86.8 — 
Oil & Gas271.1 262.1 9.0 — 
Other657.9 367.8 289.9 0.2 
     Total direct sales5,574.1 2,334.5 2,045.5 1,194.1 
Distributors251.6 131.6 106.8 13.2 
Total$5,825.7 $2,466.1 $2,152.3 $1,207.3 
(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.