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Sales
 6 Months Ended
Jul. 01, 2022
Revenue from Contract with Customer [Abstract]  
Sales SALES
Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. 
Contract Assets
In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is subject to contractual performance obligations and not only subject to the passage of time. Contract assets were $12.1 million and $10.4 million as of July 1, 2022 and December 31, 2021, respectively, and are included in Prepaid expenses and other current assets in the accompanying Consolidated Condensed Balance Sheets.
Contract Costs
We incur direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain service arrangements. As of July 1, 2022 and December 31, 2021, we had $77.3 million and $78.4 million, respectively, in net revenue-related capitalized contract costs primarily related to assets used by our customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated Condensed Balance Sheets. These assets have estimated useful lives between 3 and 5 years and are amortized on a straight-line basis.
Impairment losses recognized on our revenue-related contract assets were insignificant during the three and six months ended July 1, 2022 and July 2, 2021.
Contract Liabilities
The Company’s contract liabilities consist of deferred revenue generally related to post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized and is included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the accompanying Consolidated Condensed Balance Sheets.
The Company’s contract liabilities consisted of the following:
($ in millions)July 1, 2022December 31, 2021
Deferred revenue - current$132.6 $133.7 
Deferred revenue - noncurrent50.6 56.3 
Total contract liabilities$183.2 $190.0 
During the three and six months ended July 1, 2022, we recognized $27.8 million and $79.3 million, respectively, of revenue related to the Company’s contract liabilities at December 31, 2021. The change in contract liabilities from December 31, 2021 to July 1, 2022 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services as well as the impact of the acquisition of Driivz and inclusion of the acquired contract liabilities.
Remaining Performance Obligations
Remaining performance obligations represent the transaction price of firm, noncancelable orders and the annual contract value for software-as-a-service contracts with expected customer delivery dates beyond one year from July 1, 2022 for which work has not been performed. The Company has excluded performance obligations with an original expected duration of one year or less. Performance obligations as of July 1, 2022 are $353.0 million, the majority of which are related to the annual contract value for software-as-a-service contracts. The Company expects approximately 40 percent of the remaining performance obligations will be fulfilled within the next two years, 70 percent within the next three years, and substantially all within four years.
Disaggregation of Revenue
The Company disaggregates revenue from contracts with customers by sales of products and services, geographic location, solution and major product group, as it best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
Disaggregation of revenue was as follows:
Three Months EndedSix Months Ended
($ in millions)July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Sales:
Sales of products$702.5 $660.8 $1,376.4 $1,305.4 
Sales of services73.9 63.8 148.1 126.6 
Total$776.4 $724.6 $1,524.5 $1,432.0 
Geographic:
North America (a)
$583.9 $512.7 $1,143.3 $1,021.2 
Western Europe56.1 67.6 119.8 122.6 
High growth markets104.0 109.5 197.9 221.3 
Rest of world32.4 34.8 63.5 66.9 
Total$776.4 $724.6 $1,524.5 $1,432.0 
Solution:
Retail fueling hardware$214.7 $208.8 $395.3 $405.3 
Auto repair157.1 164.4 334.5 329.1 
Service and other recurring revenue117.1 119.5 244.0 243.4 
Environmental74.6 63.5 136.3 125.1 
Retail solutions138.8 97.3 261.3 188.7 
Software-as-a-service43.9 46.5 88.9 93.5 
Alternative energy (b)
18.6 12.2 39.9 21.9 
Smart cities9.0 8.8 19.3 17.1 
Other (b)
2.6 3.6 5.0 7.9 
Total$776.4 $724.6 $1,524.5 $1,432.0 
Major Product Group:
Mobility technologies$594.9 $536.1 $1,140.9 $1,053.0 
Diagnostics and repair technologies181.5 188.5 383.6 379.0 
Total$776.4 $724.6 $1,524.5 $1,432.0 
(a) Includes sales in the United States of $564.3 million and $492.4 million for the three months ended July 1, 2022 and July 2, 2021, respectively, and sales in the United States of $1,105.0 million and $986.6 million for the six months ended July 1, 2022 and July 2, 2021, respectively.
(b) Certain prior year amounts were reclassified from “Other” and “E-mobility” to “Alternative energy” to conform with current year presentation.