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Revenue from Contracts with Customers
 6 Months Ended
Jul. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes the disaggregation of the Company's revenue by segment, region, major products and services and customer type for the three and six months ended July 1, 2023 and July 2, 2022, consistent with the information reviewed by the Company's chief operating decision maker for evaluating the financial performance of the Company's reportable segments:
Three Months Ended
July 1, 2023July 2, 2022
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$1,025 $616 $1,641 $963 $521 $1,484 
International412 350 762 322 334 656 
$1,437 $966 $2,403 $1,285 $855 $2,140 
Major Products and Services:
LMR Communications$1,150 $626 $1,776 $1,038 $570 $1,608 
Video 287 146 433 247 123 370 
Command Center— 194 194 — 162 162 
$1,437 $966 $2,403 $1,285 $855 $2,140 
Customer Types:
Direct$796 $875 $1,671 $711 $778 $1,489 
Indirect641 91 732 574 77 651 
$1,437 $966 $2,403 $1,285 $855 $2,140 
Six Months Ended
July 1, 2023July 2, 2022
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$1,975 $1,158 $3,133 $1,794 $994 $2,788 
International765 676 1,441 594 650 1,244 
$2,740 $1,834 $4,574 $2,388 $1,644 $4,032 
Major Products and Services:
LMR Communications$2,230 $1,203 $3,433 $1,947 $1,116 $3,063 
Video 510 282 792 441 236 677 
Command Center— 349 349 — 292 292 
$2,740 $1,834 $4,574 $2,388 $1,644 $4,032 
Customer Types:
Direct$1,519 $1,670 $3,189 $1,367 $1,480 $2,847 
Indirect1,221 164 1,385 1,021 164 1,185 
$2,740 $1,834 $4,574 $2,388 $1,644 $4,032 
Remaining Performance Obligations
Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of a period. The transaction values associated with remaining performance obligations which were not yet satisfied as of July 1, 2023 was $9.4 billion. A total of $4.8 billion was from Products and Systems Integration performance obligations that were not yet satisfied as of July 1, 2023, of which $3.0 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented. Remaining performance obligations from the Products and Systems Integration segment are equal to disclosed backlog for the segment. A total of $4.6 billion was from Software and Services performance obligations that were not yet satisfied as of July 1, 2023. The determination of Software and Services performance obligations that are not satisfied takes into account a contract term that may be limited by the customer’s ability to terminate for convenience. Where termination for convenience exists in the Company's service contracts, its disclosure of the remaining performance obligations that are unsatisfied assumes the contract term is limited until renewal. As a result, remaining performance obligations from the Software and Services segment may be less than disclosed backlog in the Software and Services segment due to multi-year service contracts with termination for convenience clauses. The Company expects to recognize $1.6 billion from unsatisfied Software and Services performance obligations over the next twelve months, with the remaining performance obligations generally to be recognized over time as services are performed and software is implemented.
Contract Balances
(In millions)July 1, 2023December 31, 2022
Accounts receivable, net$1,513 $1,518 
Contract assets1,033 974 
Contract liabilities1,764 1,859 
Non-current contract liabilities382 363 
Revenue recognized during the three months ended July 1, 2023 which was previously included in Contract liabilities as of April 1, 2023 was $502 million, compared to $456 million of revenue recognized during the three months ended July 2, 2022 which was previously included in Contract liabilities as of April 2, 2022. Revenue recognized during the six months ended July 1, 2023 which was previously included in Contract liabilities as of December 31, 2022 was $824 million, compared to $712 million recognized during the six months ended July 2, 2022 which was previously included in Contract liabilities as of December 31, 2021. The Company reversed $10 million of revenue during the three months ended July 1, 2023 related to performance obligations satisfied, or partially satisfied, in previous periods, compared to no reversals for the three months ended July 2, 2022, primarily driven by changes in the estimates of progress on system contracts. Revenue of $15 million was reversed during the six months ended July 1, 2023 related to performance obligations satisfied or partially satisfied, in previous periods, primarily driven by changes in the estimates of progress on system contracts, compared to $22 million of reversals for the six months ended July 2, 2022.
There were no material expected credit losses recorded on contract assets during each of the three and six months ended July 1, 2023 and July 2, 2022.
Contract Cost Balances
(In millions)July 1, 2023December 31, 2022
Current contract cost assets$84 $61 
Non-current contract cost assets105 130 
Amortization of non-current contract cost assets was $16 million and $35 million for the three and six months ended July 1, 2023, respectively, and $13 million and $26 million for the three and six months ended July 2, 2022, respectively.