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REVENUE AND CONTRACT ACQUISITION COSTS
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT ACQUISITION COSTS REVENUE
The following table presents revenue disaggregated by type and geography (in millions):
Three Months Ended June 30,Six Months Ended June 30,
U.S.2024202320242023
Instruments and accessories$891.4 $763.3 $1,713.8 $1,464.7 
Systems224.3 189.8 436.8 411.6 
Services203.5 189.4 407.1 376.1 
Total U.S. revenue
$1,319.2 $1,142.5 $2,557.7 $2,252.4 
OUS
Instruments and accessories$353.0 $312.6 $689.5 $596.8 
Systems223.9 202.9 429.6 408.5 
Services113.8 97.9 223.7 194.4 
Total OUS revenue
$690.7 $613.4 $1,342.8 $1,199.7 
Total
Instruments and accessories$1,244.4 $1,075.9 $2,403.3 $2,061.5 
Systems448.2 392.7 866.4 820.1 
Services317.3 287.3 630.8 570.5 
Total revenue
$2,009.9 $1,755.9 $3,900.5 $3,452.1 
Remaining Performance Obligations
The transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which revenue has not yet been recognized. A significant portion of these performance obligations relate to service obligations in the Company’s system sale and lease arrangements that will be satisfied and recognized as revenue in future periods. The transaction price allocated to the remaining performance obligations was $2.37 billion as of June 30, 2024. The remaining performance obligations are expected to be satisfied over the term of the system sale, lease, and service arrangements. Approximately 43% of the remaining performance obligations are expected to be recognized in the next 12 months with the remainder recognized thereafter over the term of the system sale, lease, and service arrangements, which are generally up to 5 years.
Contract Assets and Liabilities
The following information summarizes the Company’s contract assets and liabilities (in millions):
As of
 June 30, 2024December 31, 2023
Contract assets$16.7 $20.2 
Deferred revenue$477.4 $491.7 
The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due 30 to 60 days from the date of invoice. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. Deferred revenue for the periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to those services having been performed. The associated deferred revenue is generally recognized over the term of the service period. The Company did not have any significant impairment losses on its contract assets for the periods presented.
During the three and six months ended June 30, 2024, the Company recognized $118 million and $307 million of revenue, respectively, that was included in the deferred revenue balance as of December 31, 2023. During the three and six months ended June 30, 2023, the Company recognized $112 million and $297 million of revenue, respectively, that was included in the deferred revenue balance as of December 31, 2022.
Intuitive System Leasing
The following table presents product revenue from Intuitive System Leasing arrangements (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Sales-type lease revenue$45.1 $12.3 $58.4 $35.3 
Operating lease revenue*$156.9 $122.7 $304.9 $234.7 
*Variable lease revenue related to usage-based arrangements included within operating lease revenue
$80.1 $53.2 $150.1 $99.2 
Trade Accounts Receivable
The allowance for doubtful accounts is based on the Company’s assessment of the collectibility of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. For the three and six months ended June 30, 2024, and 2023, bad debt expense was not material.
The Company’s exposure to credit losses may increase if its customers are adversely affected by changes in healthcare laws, procedure coverage and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of lease and trade receivables as hospital cash flows are impacted by macroeconomic factors, including inflation, high interest rates, and staffing shortages.