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Revenue from Contracts with Customers
 6 Months Ended
Jul. 02, 2022
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 2, 2022 and July 3, 2021, 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 2, 2022July 3, 2021
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$963 $521 $1,484 $869 $443 $1,312 
International322 334 656 329 330 659 
$1,285 $855 $2,140 $1,198 $773 $1,971 
Major Products and Services:
LMR Communications$1,038 $570 $1,608 $986 $545 $1,531 
Video Security and Access Control247 123 370 212 94 306 
Command Center Software— 162 162 — 134 134 
$1,285 $855 $2,140 $1,198 $773 $1,971 
Customer Types:
Direct$711 $778 $1,489 $706 $706 $1,412 
Indirect574 77 651 492 67 559 
$1,285 $855 $2,140 $1,198 $773 $1,971 
Six Months Ended
July 2, 2022July 3, 2021
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$1,794 $994 $2,788 $1,611 $886 $2,497 
International594 650 1,244 602 645 1,247 
$2,388 $1,644 $4,032 $2,213 $1,531 $3,744 
Major Products and Services:
LMR Communications$1,947 $1,116 $3,063 $1,836 $1,095 $2,931 
Video Security and Access Control441 236 677 377 182 559 
Command Center Software— 292 292 — 254 254 
$2,388 $1,644 $4,032 $2,213 $1,531 $3,744 
Customer Types:
Direct$1,367 $1,480 $2,847 $1,310 $1,396 $2,706 
Indirect1,021 164 1,185 903 135 1,038 
$2,388 $1,644 $4,032 $2,213 $1,531 $3,744 
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 2, 2022 was $9.0 billion. A total of $4.3 billion was from Products and Systems Integration performance obligations that were not yet satisfied as of July 2, 2022, of which $2.7 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented. A total of $4.7 billion was from Software and Services performance obligations that were not yet satisfied as of July 2, 2022. 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. The Company expects to recognize $1.5 billion from unsatisfied Software and Services performance obligations over the next twelve months, with the remaining performance obligations to be recognized over time as services are performed and software is implemented.
Contract Balances
(In millions)July 2, 2022December 31, 2021
Accounts receivable, net$1,284 $1,386 
Contract assets1,045 1,105 
Contract liabilities1,556 1,650 
Non-current contract liabilities308 306 
Revenue recognized during the three months ended July 2, 2022 which was previously included in Contract liabilities as of April 2, 2022 was $456 million, compared to $483 million of revenue recognized during the three months ended July 3, 2021 which was previously included in Contract liabilities as of April 3, 2021. Revenue recognized during the six months ended July 2, 2022 which was previously included in Contract liabilities as of December 31, 2021 was $712 million, compared to $705 million recognized during the six months ended July 3, 2021 which was previously included in Contract liabilities as of December 31, 2020. The Company did not reverse any revenue during the three months ended July 2, 2022 related to performance obligations satisfied, or partially satisfied, in previous periods, compared to $10 million of reversals for the three months ended July 3, 2021, primarily driven by changes in the estimates of progress on system contracts, Revenue of $22 million was reversed during the six months ended July 2, 2022 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 $15 million of reversals for the six months ended July 3, 2021.
There were no material expected credit losses recorded on contract assets during each of the three and six months ended July 2, 2022 and July 3, 2021.
Contract Cost Balances
(In millions)July 2, 2022December 31, 2021
Current contract cost assets$39 $30 
Non-current contract cost assets118 124 
Amortization of non-current contract cost assets was $13 million and $26 million for the three and six months ended July 2, 2022, respectively, and $12 million and $25 million for the three and six months ended July 3, 2021, respectively