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Revenue
 6 Months Ended
Jun. 28, 2024
Revenue from Contract with Customer [Abstract]  
Revenue 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, 2024 and June 30, 2023 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenue.
BiotechnologyLife SciencesDiagnosticsTotal
For the Three-Month Period Ended June 28, 2024:
Geographical region:
North America(a)
$607 $785 $1,042 $2,434 
Western Europe567 374 380 1,321 
Other developed markets(b)
81 116 95 292 
High-growth markets(c)
458 495 743 1,696 
Total$1,713 $1,770 $2,260 $5,743 
Revenue type:
Recurring$1,478 $1,208 $2,003 $4,689 
Nonrecurring235 562 257 1,054 
Total$1,713 $1,770 $2,260 $5,743 
For the Three-Month Period Ended June 30, 2023:
Geographical region:
North America(a)
$611 $757 $982 $2,350 
Western Europe684 375 365 1,424 
Other developed markets(b)
72 124 100 296 
High-growth markets(c)
518 540 784 1,842 
Total$1,885 $1,796 $2,231 $5,912 
Revenue type:
Recurring$1,534 $1,104 $1,958 $4,596 
Nonrecurring351 692 273 1,316 
Total$1,885 $1,796 $2,231 $5,912 
BiotechnologyLife SciencesDiagnosticsTotal
For the Six-Month Period Ended June 28, 2024:
Geographical region:
North America(a)
$1,121 $1,566 $2,379 $5,066 
Western Europe1,113 746 786 2,645 
Other developed markets(b)
160 241 194 595 
High-growth markets(c)
843 962 1,428 3,233 
Total$3,237 $3,515 $4,787 $11,539 
Revenue type:
Recurring$2,787 $2,400 $4,297 $9,484 
Nonrecurring450 1,115 490 2,055 
Total$3,237 $3,515 $4,787 $11,539 
For the Six-Month Period Ended June 30, 2023:
Geographical region:
North America(a)
$1,229 $1,465 $2,106 $4,800 
Western Europe1,331 739 785 2,855 
Other developed markets(b)
151 252 217 620 
High-growth markets(c)
1,038 1,049 1,499 3,586 
Total$3,749 $3,505 $4,607 $11,861 
Revenue type:
Recurring$3,045 $2,143 $4,070 $9,258 
Nonrecurring704 1,362 537 2,603 
Total$3,749 $3,505 $4,607 $11,861 
(a) The Company defines North America as the United States and Canada.
(b) The Company defines other developed markets as all the markets of the world that are not North America, Western Europe or high-growth markets.
(c) The Company defines high-growth markets as developing markets of the world experiencing accelerated growth, over extended periods, in gross domestic product and infrastructure which include Eastern Europe, the Middle East, Africa, Latin America (including Mexico) and Asia (with the exception of Japan, Australia and New Zealand). The Company defines developed markets as all markets of the world that are not high-growth markets.
The Company’s products and services primarily consist of life sciences research, biopharmaceutical drug production and medical diagnostic, products and services. The Company sells equipment to customers as well as consumables, software and services, some of which customers purchase on a recurring basis. Consumables sold for use with the equipment sold by the Company 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, chromatography resins used for research and bioprocessing and filters used in filtration, separation and purification processes. Additionally, some of the Company’s consumables are used on a standalone basis, such as custom nucleic acids, genomics solutions, antibodies and immunoassays. The Company separates its goods and services between those typically sold to a customer on a recurring basis and those typically sold to a customer on a nonrecurring basis. Recurring revenue includes revenue from consumables (both used with Company equipment and used on a standalone basis), services and operating-type leases (“OTLs”). Nonrecurring revenue includes sales of equipment and sales-type leases (“STLs”). OTLs and STLs are included in the above revenue amounts. For the three-month periods ended June 28, 2024 and June 30, 2023, lease revenue was $95 million and $98 million, respectively. For the six-month periods ended June 28, 2024 and June 30, 2023, lease revenue was $194 million and $199 million, respectively.
Remaining performance obligations related to Topic 606, Revenue from Contracts with Customers, 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, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.5 billion. The Company expects to
recognize revenue on approximately 51% of the remaining performance obligations over the next 12 months, 26% over the subsequent 12 months, and the remainder recognized 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. Contract assets and liabilities are reported on a net basis on the accompanying Consolidated Condensed Balance Sheets on a contract-by-contract basis at the end of each reporting period.
The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities that 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, 2024 and December 31, 2023, contract liabilities were approximately $1.6 billion and $1.7 billion, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. The decrease in the contract liability balance during the six-month period ended June 28, 2024 was primarily a result of amounts recognized as revenue, partially offset by cash payments received in advance of satisfying performance obligations. Revenue recognized during the six-month periods ended June 28, 2024 and June 30, 2023 that was included in the contract liability balance on December 31, 2023 and December 31, 2022 was $901 million and $892 million, respectively.