Revenue and Contract-related Balances

6 Months Ended

Jul. 02, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Note 3.    Revenues and Contract-related Balances

Disaggregated Revenues

Revenues by type are as follows:

	Three months ended				Six months ended
	July 2,		July 3,		July 2,		July 3,
(In millions)	2022		2021		2022		2021
Revenues
Consumables	$	4,993	$	5,372	$	11,103	$	11,336
Instruments	2,010		1,842		3,917		3,734
Services	3,967		2,059		7,768		4,109
Consolidated revenues	$	10,970	$	9,273	$	22,788	$	19,179

Revenues by geographic region based on customer location are as follows:

	Three months ended				Six months ended
	July 2,		July 3,		July 2,		July 3,
(In millions)	2022		2021		2022		2021
Revenues
North America	$	6,032	$	4,529	$	12,355	$	9,630
Europe	2,551		2,695		5,601		5,480
Asia-Pacific	2,042		1,749		4,106		3,458
Other regions	345		300		726		611
Consolidated revenues	$	10,970	$	9,273	$	22,788	$	19,179

Each reportable segment earns revenues from consumables, instruments and services in North America, Europe, Asia-Pacific and other regions. See Note 4 for revenues by reportable segment and other geographic data.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to the remaining performance obligations for all open customer contracts as of July 2, 2022 was $27.70 billion. The company will recognize revenues for these performance obligations as they are satisfied, approximately 58% of which is expected to occur within the next twelve months. Amounts expected to occur thereafter generally relate to contract manufacturing, clinical research and extended warranty service agreements, which typically have durations of three to five years.

Contract-related Balances

Noncurrent contract assets are included within other assets in the accompanying balance sheet. Noncurrent contract liabilities are included within other long-term liabilities in the accompanying balance sheet. Contract asset and liability balances are as follows:

	July 2,		December 31,
(In millions)	2022		2021
Current contract assets, net	$	1,147	$	968
Noncurrent contract assets, net	10		9
Current contract liabilities	2,722		2,655
Noncurrent contract liabilities	1,237		1,238

In the three and six months ended July 2, 2022, the company recognized revenues of $0.71 billion and $1.99 billion, respectively, that were included in the contract liabilities balance at December 31, 2021. In the three and six months ended July 3, 2021, the company recognized revenues of $0.37 billion and $0.93 billion, respectively, that were included in the contract liabilities balance at December 31, 2020.