Revenue and Contract-related Balances

3 Months Ended

Apr. 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
	April 2,		April 3,
(In millions)	2022		2021
Revenues
Consumables	$	6,110	$	5,964
Instruments	1,907		1,892
Services	3,801		2,050
Consolidated revenues	$	11,818	$	9,906

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

	Three months ended
	April 2,		April 3,
(In millions)	2022		2021
Revenues
North America	$	6,323	$	5,101
Europe	3,050		2,785
Asia-Pacific	2,064		1,709
Other regions	381		311
Consolidated revenues	$	11,818	$	9,906

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 April 2, 2022 was $28.84 billion. The company will recognize revenues for these performance obligations as they are satisfied, approximately 59% 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:

	April 2,		December 31,
(In millions)	2022		2021
Current contract assets, net	$	1,064	$	968
Noncurrent contract assets, net	11		9
Current contract liabilities	2,871		2,655
Noncurrent contract liabilities	1,294		1,238

In the three months ended April 2, 2022, the company recognized revenues of $1.28 billion, that were included in the contract liabilities balance at December 31, 2021. In the three months ended April 3, 2021, the company recognized revenues of $566 million that were included in the contract liabilities balance at December 31, 2020.