Deferred Revenue and Remaining Performance Obligations

9 Months Ended

Oct. 03, 2025

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 and the first three quarters of 2025 and 2024 were as follows: 

	Third Quarter of				First Three Quarters of
(In millions)	2025		2024		2025		2024
Beginning balance of the period	$	882.2	$	813.6	$	896.0	$	761.4
Revenue recognized from prior year end	(140.0)		(113.4)		(686.0)		(585.9)
Billings net of revenue recognized from current year and other	99.4		57.0		631.6		581.7
Ending balance of the period	$	841.6	$	757.2	$	841.6	$	757.2

Remaining Performance Obligations

At the end of the third quarter of 2025, 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, approximately 69%, of our remaining performance obligations as revenue during the next 12 months and the remainder thereafter.