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Revenue
 9 Months Ended
Oct. 01, 2021
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
The following tables present the Company’s revenues disaggregated by geographical region and revenue type for the three and nine-month periods ended October 1, 2021 and October 2, 2020 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenue.
Life SciencesDiagnosticsEnvironmental & Applied SolutionsTotal
For the Three-Month Period Ended October 1, 2021:
Geographical region:
North America$1,291 $1,083 $512 $2,886 
Western Europe989 424 256 1,669 
Other developed markets202 126 28 356 
High-growth markets (a)
1,150 816 352 2,318 
Total$3,632 $2,449 $1,148 $7,229 
Revenue type:
Recurring$2,591 $2,150 $678 $5,419 
Nonrecurring1,041 299 470 1,810 
Total$3,632 $2,449 $1,148 $7,229 
For the Three-Month Period Ended October 2, 2020:
Geographical region:
North America$1,101 $798 $481 $2,380 
Western Europe780 349 245 1,374 
Other developed markets193 104 29 326 
High-growth markets (a)
849 638 317 1,804 
Total$2,923 $1,889 $1,072 $5,884 
Revenue type:
Recurring$2,076 $1,542 $610 $4,228 
Nonrecurring847 347 462 1,656 
Total$2,923 $1,889 $1,072 $5,884 
(a) The Company defines high-growth markets as developing markets of the world experiencing extended periods of accelerated growth in gross domestic product and infrastructure which include Eastern Europe, the Middle East, Africa, Latin America and Asia (with the exception of Japan, Australia and New Zealand). The Company defines developed markets as all markets that are not high-growth markets.
Life SciencesDiagnosticsEnvironmental & Applied SolutionsTotal
For the Nine-Month Period Ended October 1, 2021:
Geographical region:
North America$3,903 $3,025 $1,501 $8,429 
Western Europe3,011 1,282 810 5,103 
Other developed markets636 355 87 1,078 
High-growth markets (a)
3,362 2,301 1,032 6,695 
Total$10,912 $6,963 $3,430 $21,305 
Revenue type:
Recurring$7,760 $6,074 $1,984 $15,818 
Nonrecurring3,152 889 1,446 5,487 
Total$10,912 $6,963 $3,430 $21,305 
For the Nine-Month Period Ended October 2, 2020:
Geographical region:
North America$2,721 $2,244 $1,430 $6,395 
Western Europe1,963 974 721 3,658 
Other developed markets524 298 88 910 
High-growth markets (a)
2,007 1,660 894 4,561 
Total$7,215 $5,176 $3,133 $15,524 
Revenue type:
Recurring$5,135 $4,305 $1,810 $11,250 
Nonrecurring2,080 871 1,323 4,274 
Total$7,215 $5,176 $3,133 $15,524 
(a) The Company defines high-growth markets as developing markets of the world experiencing extended periods of accelerated growth in gross domestic product and infrastructure which include Eastern Europe, the Middle East, Africa, Latin America and Asia (with the exception of Japan, Australia and New Zealand). The Company defines developed markets as all markets that are not high-growth markets.
The Company sells equipment to customers as well as consumables, software licenses and services, some of which customers purchase on a recurring basis. Consumables sold for use with the equipment sold by the Company are typically critical to the use of the equipment and are typically used on a one-time or limited basis, requiring frequent replacement in the customer’s operating cycle. Examples of these consumables include reagents used in diagnostic tests, filters used in filtration, separation and purification processes and cartridges for marking and coding equipment. Additionally, some of the Company’s consumables are used on a standalone basis, such as water treatment solutions. The Company separates its goods and services between those typically sold to a customer on a recurring basis and those typically sold on a nonrecurring basis. Recurring revenue includes revenue from consumables, services, software licenses recognized over time, software-as-a-service licenses, sales-and-usage based royalties and operating-type leases (“OTLs”). Nonrecurring revenue includes sales from equipment, software licenses recognized at a point in time and sales-type leases (“STLs”). OTLs and STLs are included in the above revenue amounts. For the three-month periods ended October 1, 2021 and October 2, 2020, lease revenue was $125 million and $119 million, respectively. For the nine-month periods ended October 1, 2021 and October 2, 2020, lease revenue was $359 million and $356 million, respectively.
Remaining performance obligations related to Topic 606, Revenue from Contracts with Customers, represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. As of October 1, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.7 billion. The Company expects to recognize revenue on approximately 50% of the remaining performance obligations over the next 12 months, 25% over the subsequent 12 months, and the remainder recognized thereafter.
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (“contract assets”) and deferred revenue, customer deposits and billings in excess of revenue recognized (“contract liabilities”) on the Consolidated Condensed Balance Sheets.
Most of the Company’s long-term contracts are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Often this results in billing occurring subsequent to revenue recognition resulting in contract assets. Contract assets are generally classified as other current assets in the Consolidated Condensed Balance Sheets. The balance of contract assets as of October 1, 2021 and December 31, 2020 was $88 million and $65 million, respectively.
The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the Consolidated Condensed Balance Sheets based on the timing of when the Company expects to recognize revenue. As of October 1, 2021 and December 31, 2020, contract liabilities were approximately $1.8 billion and $1.4 billion, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. The increase in the contract liability balance during the nine-month period ended October 1, 2021 was primarily a result of cash payments received in advance of satisfying performance obligations and acquisitions, partially offset by revenue recognized during the year that was included in the opening contract liability balance. Revenue recognized during the nine-month periods ended October 1, 2021 and October 2, 2020 that was included in the contract liability balance on December 31, 2020 and December 31, 2019 was $963 million and $537 million, respectively. Contract assets and liabilities are reported on a net basis on the accompanying Consolidated Condensed Balance Sheets on a contract-by-contract basis at the end of each reporting period.