XML 128 R10.htm IDEA: XBRL DOCUMENT v3.26.1
Revenues
 6 Months Ended
Jul. 04, 2026
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The Company recognizes revenue to depict the transfer of goods, services, or software solutions to a customer at an amount that reflects the consideration which it expects to receive.

Revenues for tangible products are generally recognized upon shipment, whereas revenues for services are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending on how control is transferred to the customer. In cases where a bundle of products, services, and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control.

Disaggregation of Revenue
The following table presents our Net sales disaggregated by product category for each of our segments (in millions):

Three Months Ended
July 4, 2026June 28, 2025
SegmentTangible ProductsServices and SoftwareTotalTangible ProductsServices and SoftwareTotal
CF$706 $197 $903 $521 $196 $717 
AVA610 44 654 534 42 576 
Total$1,316 $241 $1,557 $1,055 $238 $1,293 
Six Months Ended
July 4, 2026June 28, 2025
SegmentTangible ProductsServices and SoftwareTotalTangible ProductsServices and SoftwareTotal
CF$1,315 $413 $1,728 $1,002 $399 $1,401 
AVA1,232 92 1,324 1,115 85 1,200 
Total$2,547 $505 $3,052 $2,117 $484 $2,601 

In addition, refer to Note 18, Segment Information & Geographic Data for Net sales to customers by geographic region.

Performance Obligations
The Company’s remaining performance obligations relate to services and software solutions. The aggregate transaction price allocated to remaining performance obligations for arrangements with an original term exceeding one year was $1.15 billion and $1.17 billion, inclusive of deferred revenue, as of July 4, 2026 and December 31, 2025, respectively. On average, remaining performance obligations as of July 4, 2026 and December 31, 2025 are expected to be recognized over a period of approximately two years.

Contract Balances
Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter. The total contract asset balances were $12 million each as of July 4, 2026 and December 31, 2025. These contract assets result from timing differences between billing and satisfying performance obligations, inclusive of any impacts from the allocation of the transaction price among performance obligations for contracts that include multiple performance obligations. Contract assets are evaluated for impairment, and no impairment losses have been recognized during the six months ended July 4, 2026 and June 28, 2025, respectively.
Deferred revenue on the Consolidated Balance Sheets consists of payments and billings in advance of our performance. The combined short-term and long-term deferred revenue balances were $835 million and $842 million as of July 4, 2026 and December 31, 2025, respectively. During the three and six months ended July 4, 2026, the Company recognized $120 million and $274 million in revenue that was previously included in the deferred revenue balance as of December 31, 2025. During the three and six months ended June 28, 2025, the Company recognized $117 million and $258 million in revenue that was previously included in the deferred revenue balance as of December 31, 2024.