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Revenue from Contracts with Customers
9 Months Ended
Sep. 26, 2020
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 nine months ended September 26, 2020 and September 28, 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
September 26, 2020September 28, 2019
Products and Systems IntegrationSoftware and ServicesProducts and Systems IntegrationSoftware and Services
Regions:
North America$863 $405 $980 $364 
International300 300 369 281 
$1,163 $705 $1,349 $645 
Major Products and Services:
Devices$719 $ $896 $— 
Systems and Systems Integration444  453 — 
Services 514 — 479 
Software 191 — 166 
$1,163 $705 $1,349 $645 
Customer Type:
Direct$733 $637 $860 $602 
Indirect430 68 489 43 
$1,163 $705 $1,349 $645 
Nine Months Ended
September 26, 2020September 28, 2019
Products and Systems IntegrationSoftware and ServicesProducts and Systems IntegrationSoftware and Services
Regions:
North America$2,330 $1,146 $2,646 $1,026 
International794 871 1,010 829 
$3,124 $2,017 $3,656 $1,855 
Major Products and Services:
Devices$1,921 $ $2,391 $— 
Systems and Systems Integration1,203  1,265 — 
Services 1,490 — 1,400 
Software 527 — 455 
$3,124 $2,017 $3,656 $1,855 
Customer Type:
Direct$2,008 $1,869 $2,289 $1,737 
Indirect1,116 148 1,367 118 
$3,124 $2,017 $3,656 $1,855 
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 prices associated with remaining performance obligations which are not yet satisfied as of September 26, 2020 are $6.8 billion. A total of $2.9 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 $3.9 billion is from Software and Services performance obligations that are not yet satisfied as of September 26, 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 $1.4 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
September 26, 2020December 31, 2019
Accounts receivable, net$1,155 $1,412 
Contract assets1,069 1,046 
Contract liabilities1,359 1,449 
Non-current contract liabilities266 274 
Revenue recognized during the three months ended September 26, 2020 which was previously included in Contract liabilities as of June 27, 2020 is $349 million, compared to $342 million of revenue recognized during the three months ended September 28, 2019 which was previously included in Contract liabilities as of June 29, 2019. Revenue recognized during the nine months ended September 26, 2020 which was previously included in Contract liabilities as of December 31, 2019 is $807 million, compared to $783 million of revenue recognized during the nine months ended September 28, 2019 which was previously included in Contract liabilities as of December 31, 2018. Revenue of $12 million and $48 million was reversed during the three and nine months ended September 26, 2020 related to performance obligations satisfied or partially satisfied, in previous periods, primarily driven by changes in the estimates of progress on system contracts. Revenue of $26 million and $42 million was reversed for the three and nine months ended September 28, 2019 driven by changes in the estimates of progress on system contracts.
There were no material expected credit losses recognized on contract assets during the three and nine months ended September 26, 2020 and September 28, 2019.
Contract Cost Balances
September 26, 2020December 31, 2019
Current contract cost assets$25 $24 
Non-current contract cost assets101 107 
Amortization of non-current contract cost assets was $13 million and $35 million for the three and nine months ended September 26, 2020, respectively, and $10 million and $32 million for the three and nine months ended September 28, 2019, respectively