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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
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 our revenue by segment, geography, major product and service type and customer type for the years ended December 31, 2024, 2023 and 2022, consistent with the information reviewed by our chief operating decision maker, the chief executive officer, for evaluating the financial performance of reportable segments:
Years Ended
202420232022
(in millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions
North America$5,097 $2,723 $7,820 $4,507 $2,425 $6,932 $4,286 $2,088 $6,374 
International1,786 1,211 2,997 1,735 1,311 3,046 1,442 1,296 2,738 
$6,883 $3,934 $10,817 $6,242 $3,736 $9,978 $5,728 $3,384 $9,112 
Major Products and Services
LMR Communications$5,739 $2,361 $8,100 $5,127 $2,399 $7,526 $4,713 $2,274 $6,987 
Video1,144 776 1,920 1,115 611 1,726 1,015 508 1,523 
Command Center— 797 797 — 726 726 — 602 602 
$6,883 $3,934 $10,817 $6,242 $3,736 $9,978 $5,728 $3,384 $9,112 
Customer Type
Direct$4,238 $3,586 $7,824 $3,619 $3,396 $7,015 $3,368 $3,057 $6,425 
Indirect2,645 348 2,993 2,623 340 2,963 2,360 327 2,687 
$6,883 $3,934 $10,817 $6,242 $3,736 $9,978 $5,728 $3,384 $9,112 
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 December 31, 2024 was $9.4 billion. A total of $4.1 billion was from Products and Systems Integration performance obligations that were not yet satisfied, of which $2.3 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 $5.3 billion was from Software and Services performance obligations that were not yet satisfied as of December 31, 2024. 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 services 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 $1.8 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.
In 2023, the Competition and Markets Authority (the "CMA") imposed a legal order on Airwave which implemented a prospective price control on Airwave (the "Charge Control"). Our remaining performance obligations for Airwave services contracted with the Home Office of the United Kingdom (the "Home Office") through December 31, 2026 was reduced by $777 million and since August 1, 2023 our revenue under the Airwave contract has been recognized in accordance with the Charge Control. On March 13, 2024, the Company received notice of the contract extension (the "Deferred National Shutdown Notice") from the Home Office, recording additional remaining performance obligations of $748 million in the Software and Services segment to reflect the incremental three-years of services.
Contract Balances
December 31 (in millions)202420232022
Accounts receivable, net$1,952 $1,710 $1,518 
Contract assets1,230 1,102 974 
Contract liabilities2,072 2,037 1,859 
Non-current contract liabilities496 424 363 
Payment terms on system contracts are typically tied to implementation milestones associated with progress on contracts, while revenue recognition is over time based on a cost-to-cost method of measuring performance. The Company may recognize a Contract asset or Contract liability, depending on whether revenue has been recognized in excess of billings or billings in excess of revenue. Services contracts are typically billed in advance, generating Contract liabilities until the Company has performed the services. The Company does not record a financing component to contracts when it expects, at contract inception, that the period between the transfer of a promised good or service and related payment terms are less than a year.
Revenue recognized during the years ended December 31, 2024 and 2023 which was previously included in Contract liabilities as of January 1, 2024 and 2023, respectively, was $1.3 billion, compared to $1.1 billion of revenue recognized during the year ended December 31, 2022 which was previously included in Contract liabilities as of January 1, 2022. Revenue of $28 million was reversed during the year ended December 31, 2024 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 $37 million during the year ended December 31, 2023 and $26 million during the year ended December 31, 2022.
There have been no material expected credit losses recognized on contract assets during the year ended December 31, 2024.
Contract Cost Balances
December 31 (in millions)202420232022
Current contract cost assets$70 $56 $61 
Non-current contract cost assets141 119 130 
Contract cost assets include incremental costs to obtain a contract, primarily related to the Company's sales incentive plans, and certain costs to fulfill contracts. Contract cost assets are amortized into expense over a period that follows the passage of control to the customer over time. Incremental costs to obtain a contract with the Company's sales incentive plans are accounted for under a portfolio approach, with amortization ranging from one year to eight years to approximate the recognition of revenues over time. Where incremental costs to obtain a contract will be recognized in one year or less, the Company applies a practical expedient around expensing amounts as incurred. Amortization of contract cost assets was $51 million for the year ended December 31, 2024, compared to $61 million as of the year ended December 31, 2023 and $62 million as of the year ended December 31, 2022.