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Sales
 9 Months Ended
Sep. 25, 2020
Revenue from Contract with Customer [Abstract]  
Sales
NOTE 6. SALES
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, the Company records 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 $11.7 million and $12.8 million as of September 25, 2020 and December 31, 2019, respectively.
Contract Costs
The Company incurs direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers as part of certain service arrangements. Deferred sales-related commissions are generally not capitalized as the amortization period is one year or less, and the Company elected to use the practical expedient to expense these sales commissions as incurred. As of September 25, 2020 the Company had $81.1 million in net revenue-related capitalized contract costs primarily related to assets used by our customers in certain software contracts, which are recorded in Prepaid expenses and other current assets and Other assets in the accompanying Combined Condensed Balance Sheets. Contract costs were $95.2 million as of December 31, 2019. These assets have estimated useful lives between 3 and 5 years.
Impairment losses recognized on our revenue-related contract assets were insignificant in the nine months ended September 25, 2020.
Contract Liabilities
The Company’s contract liabilities consist of deferred revenue generally related to post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the accompanying Combined Condensed Balance Sheets.
The Company’s contract liabilities consisted of the following:
($ in millions)September 25, 2020December 31, 2019
Deferred revenue - current$85.1 $87.0 
Deferred revenue - noncurrent57.9 63.2 
Total contract liabilities$143.0 $150.2 
During the three and nine months ended September 25, 2020, we recognized $31.1 million and $84.8 million of revenue related to the Company’s contract liabilities at December 31, 2019. The change in contract liabilities from December 31, 2019 to September 25, 2020 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services.
Remaining Performance Obligations
Remaining performance obligations represent the transaction price of firm, noncancelable orders and the annual contract value for software as a service contracts with expected customer delivery dates beyond one year from September 25, 2020 for which work has not been performed. The Company has excluded performance obligations with an original expected duration of one year or less. Performance obligations as of September 25, 2020 are $386.0 million, the majority of which are related to the annual contract value for software as a service contracts. The Company expects approximately 35 percent of the remaining performance obligations will be fulfilled within the next two years, 65 percent within the next three years, and substantially all within four years.
Disaggregation of Revenue
The Company disaggregates revenue from contracts with customers by sales of products and services, geographic location, major product group, and end market, as it best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
Disaggregation of revenue for the three months ended September 25, 2020 and September 27, 2019 were as follows:
($ in millions)September 25, 2020September 27, 2019
Sales:
Sales of products$686.0 $639.7 
Sales of services60.7 74.7 
Total$746.7 $714.4 
Geographic:
North America (a)
$539.9 $494.0 
Western Europe63.7 65.8 
High growth markets111.7 124.7 
Rest of world31.4 29.9 
Total$746.7 $714.4 
Major Product Group:
Mobility technologies$578.6 $551.6 
Diagnostics and repair technologies168.1 162.8 
Total$746.7 $714.4 
(a) Includes sales in the United States of $525.5 million and $477.5 million for the three months ended September 25, 2020 and September 27, 2019, respectively.

Disaggregation of revenue for the nine months ended September 25, 2020 and September 27, 2019 were as follows:
($ in millions)September 25, 2020September 27, 2019
Sales:
Sales of products$1,713.9 $1,813.0 
Sales of services175.7 215.8 
Total$1,889.6 $2,028.8 
Geographic:
North America (a)
$1,348.3 $1,369.5 
Western Europe176.6 204.8 
High growth markets279.5 364.6 
Rest of World85.2 89.9 
Total$1,889.6 $2,028.8 
Major Product Group:
Mobility technologies$1,441.6 $1,542.8 
Diagnostics and repair technologies448.0 486.0 
Total$1,889.6 $2,028.8 
(a) Includes sales in the United States of $1,309.2 million and $1,321.3 million for the nine months ended September 25, 2020 and September 27, 2019, respectively.