Revenue from Contracts with Customers

9 Months Ended

Sep. 29, 2018

Revenue from Contract with Customer [Abstract]

Note 3 – Revenue from Contracts with Customers

Revenue (Net sales) is recognized in accordance with the policies discussed in Note 2 - Accounting Pronouncements Adopted and Critical Accounting Policies and Estimates.

Disaggregation of Net sales

The following table disaggregates our Net sales by reportable segment and geographic area:

				Three Months Ended						Nine Months Ended
				September 29, 2018						September 29, 2018
				North America		International		Global		North America		International		Global
Net sales:
	Health care distribution
		Dental		$	951,412	$	563,126	$	1,514,538	$	2,831,062	$	1,844,150	$	4,675,212
		Animal health			460,838		438,457		899,295		1,425,273		1,379,758		2,805,031
		Medical			702,758		19,184		721,942		1,915,944		60,423		1,976,367
			Total health care distribution		2,115,008		1,020,767		3,135,775		6,172,279		3,284,331		9,456,610
	Technology and value-added services				123,823		20,080		143,903		307,826		62,357		370,183
		Total		$	2,238,831	$	1,040,847	$	3,279,678	$	6,480,105	$	3,346,688	$	9,826,793

Contract Balances

Contract balances represent amounts presented in our consolidated balance sheet when either we have transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets and contract liabilities.

The contract assets primarily relate to our rights to consideration for work completed but not billed at the reporting date on contracts. The contract assets are transferred to receivables when the rights become unconditional. The contract assets primarily relate to our bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Current and non-current contract asset balances as of September 29, 2018 and December 31, 2017 were not material.

The contract liabilities primarily relate to advance payments from customers and upfront payments for service arrangements provided over time. At December 31, 2017, the current portion of contract liabilities of $85.7 million was reported in Accrued expenses: Other, and $5.2 million related to non-current contract liabilities were reported in Other liabilities. During the nine months ended September 29, 2018, we recognized $69.7 million of the amount previously deferred at December 31, 2017. At September 29, 2018, the current and non-current portion of contract liabilities were $73.7 million and $5.5 million, respectively.