Deferred Revenue And Remaining Performance Obligations

9 Months Ended

Oct. 01, 2021

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 2021 and 2020 were as follows: 

	Third Quarter of				First Three Quarters of
(In millions)	2021		2020		2021		2020
Beginning balance of the period	$	606.1	$	531.0	$	613.8	$	541.9
Revenue recognized	(92.3)		(87.6)		(471.8)		(419.5)
Net deferred revenue activity	75.2		58.2		447.0		379.2
Ending balance of the period	$	589.0	$	501.6	$	589.0	$	501.6

Remaining Performance Obligations

At the end of the third quarter of 2021, approximately $1.6 billion of revenue is expected to be recognized from remaining performance obligations for which goods or services have not been delivered, primarily subscription, software, and software maintenance, and to a lesser extent, hardware and professional services contracts. We expect to recognize $1.2 billion or 75% of our remaining performance obligations as revenue during the next 12 months, and the remainder thereafter.