Deferred Revenue And Remaining Performance Obligations

9 Months Ended

Oct. 02, 2020

Revenue Recognition and Deferred Revenue [Abstract]

DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

Deferred Revenue

Changes to our deferred revenue during the third quarter and first three quarters of fiscal 2020 and 2019 were as follows: 

	Third Quarter of				First Three Quarters of
(In millions)	2020		2019		2020		2019
Beginning balance of the period	$	531.0	$	452.4	$	541.9	$	387.2
Revenue recognized	(87.6)		(76.7)		(419.5)		(300.5)
Net deferred revenue activity	58.2		43.3		379.2		332.3
Ending balance of the period	$	501.6	$	419.0	$	501.6	$	419.0

Remaining Performance Obligations

As of the end of the third quarter of fiscal 2020, approximately $1.2 billion of revenue is expected to be recognized from remaining performance obligations for which goods or services have not been delivered, primarily subscription and software maintenance, and to a lesser extent, hardware and professional services contracts. We expect to recognize $0.8 billion or 70% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $0.4 billion or 30% of our remaining performance obligations as revenue thereafter.