Revenue from Contracts with Customers

3 Months Ended

Jun. 29, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes the disaggregation of our revenue by segment, geography, major product and service type and customer type for the three and six months ended June 27, 2020 and June 29, 2019, consistent with the information reviewed by our chief operating decision maker for evaluating the financial performance of the Company's segments:

	Three Months Ended
	June 27, 2020				June 29, 2019
	Products and Systems Integration		Software and Services		Products and Systems Integration		Software and Services
Regions:
North America	$	719	$	374	$	911	$	342
International	249		276		327		280
	$	968	$	650	$	1,238	$	622
Major Products and Services:
Devices	$	582	$	—	$	809	$	—
Systems and Systems Integration	386		—		429		—
Services	—		484		—		469
Software	—		166		—		153
	$	968	$	650	$	1,238	$	622
Customer Type:
Direct	$	634	$	611	$	771	$	582
Indirect	334		39		467		40
	$	968	$	650	$	1,238	$	622

	Six Months Ended
	June 27, 2020				June 29, 2019
	Products and Systems Integration		Software and Services		Products and Systems Integration		Software and Services
Regions:
North America	$	1,467	$	742	$	1,666	$	662
International	494		570		641		548
	$	1,961	$	1,312	$	2,307	$	1,210
Major Products and Services:
Devices	$	1,202	$	—	$	1,495	$	—
Systems and Systems Integration	759		—		812		—
Services	—		976		—		921
Software	—		336		—		289
	$	1,961	$	1,312	$	2,307	$	1,210
Customer Type:
Direct	$	1,275	$	1,232	$	1,429	$	1,135
Indirect	686		80		878		75
	$	1,961	$	1,312	$	2,307	$	1,210

Remaining Performance Obligations

Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of a period. The transaction price associated with remaining performance obligations which are not yet satisfied as of June 27, 2020 is $6.6 billion. A total of $2.8 billion is from Products and Systems Integration performance obligations that are not yet satisfied, of which $1.4 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented. A total of $3.8 billion is from Software and Services performance obligations that are not yet satisfied as of June 27, 2020. The determination of Software and Services performance obligations that are not satisfied takes into account a contract term that may be limited by the customer’s ability to terminate for convenience. Where termination for convenience exists in the Company's service contracts, its disclosure of the remaining performance obligations that are unsatisfied assumes the contract term is limited until renewal. The Company expects to recognize $1.3 billion from unsatisfied Software and Services performance obligations over the next twelve months, with the remaining performance obligations to be recognized over time as services are performed and software is implemented.

Contract Balances

	June 27, 2020		December 31, 2019
Accounts receivable, net	$	1,134	$	1,412
Contract assets	937		1,046
Contract liabilities	1,294		1,449
Non-current contract liabilities	263		274

Revenue recognized during the three months ended June 27, 2020 which was previously included in Contract liabilities as of March 28, 2020 is $370 million, compared to $340 million of revenue recognized during the three months ended June 29, 2019 which was previously included in Contract liabilities as of March 30, 2019. Revenue recognized during the six months ended June 27, 2020 which was previously included in Contract liabilities as of December 31, 2019 is $631 million, compared to $600 million of revenue recognized during the six months ended June 29, 2019 which was previously included in Contract liabilities as of December 31, 2018. Revenue of $12 million and $34 million was reversed during the three and six months ended June 27, 2020 related to performance obligations satisfied or partially satisfied, in previous periods, primarily driven by changes in the estimates of progress on system contracts. Adjustments to revenue for the three and six months ended June 29, 2019 driven by changes in the estimates of progress on system contracts were immaterial.

There were no material expected credit losses recognized on contract assets during the three and six months ended June 27, 2020 and June 29, 2019.

Contract Cost Balances

	June 27, 2020		December 31, 2019
Current contract cost assets	$	22	$	24
Non-current contract cost assets	101		107

Amortization of non-current contract cost assets was $11 million and $22 million for both the three and six months ended June 27, 2020 and June 29, 2019, respectively.