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Deferred Revenue and Other Contract Liabilities, Current
 12 Months Ended
Jan. 03, 2026
Revenue Recognition and Deferred Revenue [Abstract]  
Deferred Revenue and Other Contract Liabilities, Current
13. Deferred Revenue and Other Contract Liabilities, Current
Deferred revenue and other contract liabilities, current consist of the following:
(in millions)January 3,
2026		December 28,
2024
Deferred revenue$61.5 $61.9 
Accrued rebates and allowances26.0 23.0 
Accrued customer reimbursements8.7 10.1 
     Total deferred revenue and other contract liabilities96.2 95.0 
Less: Non-current portion of deferred revenue(23.0)(18.1)
     Deferred revenue and other contract liabilities, current$73.2 $76.9 
For the year ended December 30, 2023, total deferred revenue and other current contract liabilities were $77.3 million.
Deferred revenue relates to contracted amounts that have been invoiced to customers for which remaining performance obligations must be completed before the Company can recognize revenue. Generally, the Company records deferred revenue when revenue is to be recognized subsequent to invoicing.
Deferred revenue primarily relates to undelivered equipment, sensors and services under deferred equipment agreements, extended warranty agreements and maintenance agreements. Expected revenue from remaining contractual performance obligations (Unrecognized Contract Revenue) includes deferred revenue, as well as other amounts that will be invoiced and recognized as revenue in future periods when the Company completes its performance obligations. Unrecognized Contract Revenue excludes revenue allocable to monitoring-related equipment that is effectively leased to customers under deferred equipment agreements and other contractual obligations for which neither party has performed. The estimated timing of this revenue is based, in part, on management’s estimates and assumptions about when its performance obligations will be completed. As a result, the actual timing of this revenue in future periods may vary, possibly materially, due to factors such as healthcare facility spending trends, hospital inpatient census and seasonality. As of January 3, 2026, the Company had approximately $1,793.7 million of Unrecognized Contract Revenue related to executed contracts with an original duration of one year or more. The Company expects to recognize approximately $495.5 million of this amount as revenue within the next twelve months and the remaining balance thereafter.
Changes in deferred revenue for the years ended January 3, 2026 and December 28, 2024 were as follows:
(in millions)January 3,
2026		December 28,
2024
Deferred revenue, beginning of the period$61.9 $48.5 
  Revenue deferred during the period52.2 42.5 
  Recognition of revenue deferred in prior periods(52.6)(29.1)
     Deferred revenue, end of the period$61.5 $61.9