Deferred Revenue And Remaining Performance Obligations

9 Months Ended

Sep. 29, 2023

Revenue Recognition and Deferred Revenue [Abstract]

Deferred Revenue And Remaining Performance Obligations

NOTE 10. DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

Deferred Revenue

Changes in our deferred revenue during the third quarter of 2023 and 2022 were as follows: 

	Third Quarter of				First Three Quarters of
(In millions)	2023		2022		2023		2022
Beginning balance of the period	$	745.6	$	685.2	$	737.6	$	631.8
Revenue recognized from prior year-end	(107.8)		(92.0)		(543.0)		(453.8)
Billings net of revenue recognized from current year and other	54.8		43.6		498.0		458.8
Ending balance of the period	$	692.6	$	636.8	$	692.6	$	636.8

Remaining Performance Obligations

At the end of the third quarter of 2023, approximately $1.5 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 $1.1 billion or 70% of our remaining performance obligations as revenue during the next 12 months and the remainder thereafter. The remaining performance obligations exclude $43.5 million related to the pending Trimble Ag JV Transaction.