Deferred Revenue And Remaining Performance Obligations

12 Months Ended

Jan. 03, 2025

Revenue Recognition and Deferred Revenue [Abstract]

Deferred Revenue And Remaining Performance Obligations

NOTE 12: DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

Deferred Revenue

Changes in our deferred revenue during 2024 and 2023 were as follows: 

(In millions)	2024		2023
Beginning balance of the period	$	761.4	$	737.6
Revenue recognized from prior year-end	(652.3)		(607.8)
Billings net of revenue recognized from current year and other	786.9		631.6
Ending balance of the period	$	896.0	$	761.4

Remaining Performance Obligations

At the end of 2024, approximately $1.7 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 71% of our remaining performance obligations as revenue during the next 12 months and the remainder thereafter.

The remaining performance obligations exclude $0.2 billion for the Mobility divestiture, which closed on February 8, 2025.