Revenue (Notes)

6 Months Ended

Jun. 28, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUE

The following tables present the Company’s revenues disaggregated by geographical region and revenue type for the three and six-month periods ended June 28, 2019 and June 29, 2018 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenue.

	Life Sciences		Diagnostics		Dental		Environmental & Applied Solutions		Total
Three-Month Period Ended June 28, 2019:
Geographical region:
North America	$	653.6	$	601.0	$	340.2	$	488.3	$	2,083.1
Western Europe	459.3		281.7		156.1		261.6		1,158.7
Other developed markets	137.6		95.2		45.0		31.3		309.1
High-growth markets	462.1		640.4		170.8		332.4		1,605.7
Total	$	1,712.6	$	1,618.3	$	712.1	$	1,113.6	$	5,156.6
Revenue type:
Recurring	$	1,111.9	$	1,380.6	$	522.1	$	592.8	$	3,607.4
Nonrecurring	600.7		237.7		190.0		520.8		1,549.2
Total	$	1,712.6	$	1,618.3	$	712.1	$	1,113.6	$	5,156.6
Three-Month Period Ended June 29, 2018:
Geographical region:
North America	$	578.0	$	578.7	$	346.1	$	450.7	$	1,953.5
Western Europe	449.5		288.7		170.5		263.2		1,171.9
Other developed markets	138.5		91.3		47.1		32.3		309.2
High-growth markets	439.2		592.2		169.7		345.3		1,546.4
Total	$	1,605.2	$	1,550.9	$	733.4	$	1,091.5	$	4,981.0
Revenue type:
Recurring	$	1,056.0	$	1,311.0	$	547.3	$	574.6	$	3,488.9
Nonrecurring	549.2		239.9		186.1		516.9		1,492.1
Total	$	1,605.2	$	1,550.9	$	733.4	$	1,091.5	$	4,981.0

	Life Sciences		Diagnostics		Dental		Environmental & Applied Solutions		Total
Six-Month Period Ended June 28, 2019:
Geographical region:
North America	$	1,240.9	$	1,233.4	$	638.7	$	937.5	$	4,050.5
Western Europe	919.6		570.6		316.2		521.3		2,327.7
Other developed markets	286.9		187.2		85.4		60.2		619.7
High-growth markets	892.1		1,163.9		331.5		651.1		3,038.6
Total	$	3,339.5	$	3,155.1	$	1,371.8	$	2,170.1	$	10,036.5
Revenue type:
Recurring	$	2,180.1	$	2,704.7	$	1,009.9	$	1,175.0	$	7,069.7
Nonrecurring	1,159.4		450.4		361.9		995.1		2,966.8
Total	$	3,339.5	$	3,155.1	$	1,371.8	$	2,170.1	$	10,036.5
Six-Month Period Ended June 29, 2018:
Geographical region:
North America	$	1,058.4	$	1,186.1	$	637.4	$	869.0	$	3,750.9
Western Europe	899.4		599.1		346.1		528.0		2,372.6
Other developed markets	283.4		183.5		91.0		63.9		621.8
High-growth markets	840.0		1,101.9		331.5		657.7		2,931.1
Total	$	3,081.2	$	3,070.6	$	1,406.0	$	2,118.6	$	9,676.4
Revenue type:
Recurring	$	2,026.4	$	2,619.5	$	1,035.3	$	1,131.6	$	6,812.8
Nonrecurring	1,054.8		451.1		370.7		987.0		2,863.6
Total	$	3,081.2	$	3,070.6	$	1,406.0	$	2,118.6	$	9,676.4

The Company sells equipment to customers as well as consumables, spare parts, software licenses and services, some of which customers purchase on a recurring basis. In most of the Company’s businesses, consumables are typically critical to the use of the equipment and are typically used on a one-time or limited basis, requiring frequent replacement in the customer’s operating cycle. Examples of these consumables include reagents used in diagnostic tests, filters used in filtration, separation and purification processes and cartridges for marking and coding equipment. Additionally, some of the Company’s consumables are used on a standalone basis, such as dental implants and water treatment solutions. The Company separates its goods and services between those sold on a recurring basis and those sold on a nonrecurring basis. Recurring revenue includes revenue from consumables, services, spare parts, software licenses recognized over time, software-as-a-service, sales-and-usage based royalties and OTLs. Nonrecurring revenue includes sales from equipment, software licenses recognized at a point in time and STLs. OTLs and STLs are included in the above revenue amounts. For the three-month periods ended June 28, 2019 and June 29, 2018, revenue accounted for under ASC 842 and ASC 840 was $106 million and $96 million, respectively. For the six-month periods ended June 28, 2019 and June 29, 2018, revenue accounted for under ASC 842 and ASC 840 was $213 million and $193 million, respectively.

Remaining performance obligations related to Topic 606, Revenue from Contracts with Customers (“ASC 606”) represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. As of June 28, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.0 billion. The Company expects to recognize revenue on approximately 40% of the remaining performance obligations over the next 12 months, 25% over the subsequent 12 months, and the remainder thereafter.

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, customer deposits and billings in excess of revenue recognized (contract liabilities) on the Consolidated Condensed Balance Sheets. Most of the Company’s long-term contracts are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones.

Often this results in billing occurring subsequent to revenue recognition resulting in contract assets. Contract assets are generally classified as other current assets in the Consolidated Condensed Balance Sheets. The balance of contract assets as of June 28, 2019 and December 31, 2018 were $85 million and $82 million, respectively.

The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the Consolidated Condensed Balance Sheets based on the timing of when the Company expects to recognize revenue. As of June 28, 2019 and December 31, 2018, contract liabilities were $822 million and $799 million, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Revenue recognized during the six-month periods ended June 28, 2019 and June 29, 2018 that was included in the contract liability balance on December 31, 2018 and at the date of adoption of ASC 606 on January 1, 2018 was $442 million and $424 million, respectively. Contract assets and liabilities are reported on the accompanying Consolidated Condensed Balance Sheets on a contract-by-contract basis.