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Revenue
 6 Months Ended
Jun. 30, 2023
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 six-month periods ended June 30, 2023 and July 1, 2022 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenue.
BiotechnologyLife SciencesDiagnosticsEnvironmental & Applied SolutionsTotal
For the Three-Month Period Ended June 30, 2023:
Geographical region:
North America(a)
$611 $757 $982 $577 $2,927 
Western Europe684 375 365 284 1,708 
Other developed markets(b)
72 124 100 31 327 
High-growth markets(c)
518 540 784 353 2,195 
Total$1,885 $1,796 $2,231 $1,245 $7,157 
Revenue type:
Recurring$1,534 $1,104 $1,958 $742 $5,338 
Nonrecurring351 692 273 503 1,819 
Total$1,885 $1,796 $2,231 $1,245 $7,157 
For the Three-Month Period Ended July 1, 2022:
Geographical region:
North America(a)
$798 $778 $1,235 $571 $3,382 
Western Europe632 340 453 266 1,691 
Other developed markets(b)
88 111 115 32 346 
High-growth markets(c)
748 472 758 354 2,332 
Total$2,266 $1,701 $2,561 $1,223 $7,751 
Revenue type:
Recurring$1,804 $1,068 $2,301 $719 $5,892 
Nonrecurring462 633 260 504 1,859 
Total$2,266 $1,701 $2,561 $1,223 $7,751 
BiotechnologyLife SciencesDiagnosticsEnvironmental & Applied SolutionsTotal
For the Six-Month Period Ended June 30, 2023:
Geographical region:
North America(a)
$1,229 $1,465 $2,106 $1,149 $5,949 
Western Europe1,331 739 785 561 3,416 
Other developed markets(b)
151 252 217 60 680 
High-growth markets(c)
1,038 1,049 1,499 693 4,279 
Total$3,749 $3,505 $4,607 $2,463 $14,324 
Revenue type:
Recurring$3,045 $2,143 $4,070 $1,466 $10,724 
Nonrecurring704 1,362 537 997 3,600 
Total$3,749 $3,505 $4,607 $2,463 $14,324 
For the Six-Month Period Ended July 1, 2022:
Geographical region:
North America(a)
$1,580 $1,516 $2,541 $1,099 $6,736 
Western Europe1,339 668 977 535 3,519 
Other developed markets(b)
173 248 239 64 724 
High-growth markets(c)
1,390 935 1,448 687 4,460 
Total$4,482 $3,367 $5,205 $2,385 $15,439 
Revenue type:
Recurring$3,605 $2,105 $4,671 $1,409 $11,790 
Nonrecurring877 1,262 534 976 3,649 
Total$4,482 $3,367 $5,205 $2,385 $15,439 
(a) The Company defines North America as the United States and Canada.
(b) The Company defines other developed markets as Japan, Australia and New Zealand.
(c) 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 (including Mexico) and Asia (with the exception of Japan, Australia and New Zealand). The Company defines developed markets as all markets of the world that are not high-growth markets.
The Company sells equipment to customers as well as consumables 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, chromatography resins used for research and bioprocessing, 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, custom nucleic acids and genomics solutions. The Company separates its goods and services between those typically sold to a customer on a recurring basis and those typically sold to a customer on a nonrecurring basis. Recurring revenue includes revenue from consumables, services and operating-type leases (“OTLs”). Nonrecurring revenue includes sales of equipment and sales-type leases (“STLs”). OTLs and STLs are included in the above revenue amounts. For the three-month periods ended June 30, 2023 and July 1, 2022, lease revenue was $118 million and $117 million, respectively. For the six-month periods ended June 30, 2023 and July 1, 2022, lease revenue was $238 million and $241 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 June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.8 billion. The Company expects to recognize revenue on approximately 55% of the remaining performance obligations over the next 12 months, 26% 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 June 30, 2023 and December 31, 2022 was $74 million and $90 million, respectively.
The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities that 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 June 30, 2023 and December 31, 2022, contract liabilities were approximately $2.0 billion and $1.9 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 six-month period ended June 30, 2023 was primarily a result of cash payments received in advance of satisfying performance obligations, partially offset by revenue recognized during the period that was included in the opening contract liability balance. Revenue recognized during the six-month periods ended June 30, 2023 and July 1, 2022 that was included in the contract liability balance on December 31, 2022 and December 31, 2021 was approximately $1.0 billion and $995 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.