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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 2023 and October 1, 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
September 30, 2023October 1, 2022
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$1,155 $628 $1,783 $1,166 $521 $1,687 
International457 316 773 363 323 686 
$1,612 $944 $2,556 $1,529 $844 $2,373 
Major Products and Services:
LMR Communications$1,312 $605 $1,917 $1,243 $569 $1,812 
Video 300 153 453 286 133 419 
Command Center— 186 186 — 142 142 
$1,612 $944 $2,556 $1,529 $844 $2,373 
Customer Types:
Direct$940 $859 $1,799 $902 $769 $1,671 
Indirect672 85 757 627 75 702 
$1,612 $944 $2,556 $1,529 $844 $2,373 
Nine Months Ended
September 30, 2023October 1, 2022
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$3,130 $1,786 $4,916 $2,961 $1,514 $4,475 
International1,222 991 2,213 957 973 1,930 
$4,352 $2,777 $7,129 $3,918 $2,487 $6,405 
Major Products and Services:
LMR Communications$3,542 $1,807 $5,349 $3,190 $1,684 $4,874 
Video 810 435 1,245 728 368 1,096 
Command Center— 535 535 — 435 435 
$4,352 $2,777 $7,129 $3,918 $2,487 $6,405 
Customer Types:
Direct$2,459 $2,529 $4,988 $2,271 $2,259 $4,530 
Indirect1,893 248 2,141 1,647 228 1,875 
$4,352 $2,777 $7,129 $3,918 $2,487 $6,405 
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 value associated with remaining performance obligations which were not yet satisfied as of September 30, 2023 was $9.3 billion. A total of $4.9 billion was from Products and Systems Integration performance obligations that were not yet satisfied as of September 30, 2023, of which $3.1 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 $4.4 billion was from Software and Services performance obligations that were not yet satisfied as of September 30, 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 $1.5 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)September 30, 2023December 31, 2022
Accounts receivable, net$1,667 $1,518 
Contract assets1,092 974 
Contract liabilities1,898 1,859 
Non-current contract liabilities394 363 
Revenue recognized during the three months ended September 30, 2023 which was previously included in Contract liabilities as of July 1, 2023 was $475 million, compared to $437 million of revenue recognized during the three months ended October 1, 2022 which was previously included in Contract liabilities as of July 2, 2022. Revenue recognized during the nine months ended September 30, 2023 which was previously included in Contract liabilities as of December 31, 2022 was $1.1 billion, compared to $939 million recognized during the nine months ended October 1, 2022 which was previously included in Contract liabilities as of December 31, 2021. The Company did not reverse any revenue during the three months ended September 30, 2023 related to performance obligations satisfied, or partially satisfied, in previous periods, compared to $3 million of reversals for the three months ended October 1, 2022, primarily driven by changes in the estimates of progress on system contracts. Revenue of $18 million was reversed during the nine months ended September 30, 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 $23 million of reversals for the nine months ended October 1, 2022.
There were no material expected credit losses recorded on contract assets during each of the three and nine months ended September 30, 2023 and October 1, 2022.
Contract Cost Balances
(In millions)September 30, 2023December 31, 2022
Current contract cost assets$89 $61 
Non-current contract cost assets109 130 
Amortization of contract cost assets was $10 million and $35 million for the three and nine months ended September 30, 2023, respectively, and $14 million and $41 million for the three and nine months ended October 1, 2022, respectively.