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Sales | 9 Months Ended
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Sep. 30, 2022
Revenue from Contract with Customer [Abstract] |
Sales | SALES Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Contract Assets In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is subject to contractual performance obligations and not only subject to the passage of time. Contract assets were $12.6 million and $10.4 million as of September 30, 2022 and December 31, 2021, respectively, and are included in Prepaid expenses and other current assets in the accompanying Consolidated Condensed Balance Sheets. Contract Costs We incur direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain service arrangements. As of September 30, 2022 and December 31, 2021, we had $75.7 million and $78.4 million, respectively, in net revenue-related capitalized contract costs primarily related to assets used by our customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated Condensed Balance Sheets. These assets have estimated useful lives between 3 and 5 years and are amortized on a straight-line basis. Impairment losses recognized on our revenue-related contract assets were insignificant during the three and nine months ended September 30, 2022 and October 1, 2021. Contract Liabilities The Company’s contract liabilities consist of deferred revenue generally related to customer deposits, post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts where applicable. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized and is included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the accompanying Consolidated Condensed Balance Sheets. The Company’s contract liabilities consisted of the following:
($ in millions) | September 30, 2022 |  | December 31, 2021
Deferred revenue - current | $ | 141.8 |  |  | $ | 133.7 |
Deferred revenue - noncurrent | 48.4 |  |  | 56.3 |
Total contract liabilities | $ | 190.2 |  |  | $ | 190.0 |
During the three and nine months ended September 30, 2022, we recognized $22.8 million and $102.1 million, respectively, of revenue related to the Company’s contract liabilities at December 31, 2021. The change in contract liabilities from December 31, 2021 to September 30, 2022 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services as well as the impact of current year acquisitions. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm, noncancelable orders and the annual contract value for software-as-a-service contracts with expected customer delivery dates beyond one year from September 30, 2022 for which work has not been performed. The Company has excluded performance obligations with an original expected duration of one year or less. Performance obligations as of September 30, 2022 are $348.7 million, the majority of which are related to the annual contract value for software-as-a-service contracts. The Company expects approximately 35 percent of the remaining performance obligations will be fulfilled within the next two years, 65 percent within the next three years, and substantially all within four years. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers by sales of products and services, geographic location, solution and major product group, as it best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Disaggregation of revenue was as follows:
| Three Months Ended |  | Nine Months Ended
($ in millions) | September 30, 2022 |  | October 1, 2021 |  | September 30, 2022 |  | October 1, 2021
Sales: |  |  |  |  |  |  |
Sales of products | $ | 707.7 |  |  | $ | 699.7 |  |  | $ | 2,080.5 |  |  | $ | 2,005.1 |
Sales of services | 80.3 |  |  | 68.8 |  |  | 232.0 |  |  | 195.4 |
Total | $ | 788.0 |  |  | $ | 768.5 |  |  | $ | 2,312.5 |  |  | $ | 2,200.5 |
Geographic: |  |  |  |  |  |  |
North America (a) | $ | 603.2 |  |  | $ | 547.0 |  |  | $ | 1,746.5 |  |  | $ | 1,568.2 |
Western Europe | 48.3 |  |  | 68.7 |  |  | 168.1 |  |  | 191.3 |
High growth markets | 101.5 |  |  | 115.8 |  |  | 299.4 |  |  | 337.1 |
Rest of world | 35.0 |  |  | 37.0 |  |  | 98.5 |  |  | 103.9 |
Total | $ | 788.0 |  |  | $ | 768.5 |  |  | $ | 2,312.5 |  |  | $ | 2,200.5 |
Solution: |  |  |  |  |  |  |
Retail fueling hardware | $ | 213.5 |  |  | $ | 243.6 |  |  | $ | 608.8 |  |  | $ | 648.9 |
Auto repair | 158.3 |  |  | 156.1 |  |  | 492.8 |  |  | 485.2 |
Service and other recurring revenue | 118.7 |  |  | 118.0 |  |  | 362.7 |  |  | 361.4 |
Environmental | 68.0 |  |  | 73.3 |  |  | 204.3 |  |  | 198.4 |
Retail solutions | 154.3 |  |  | 96.4 |  |  | 415.6 |  |  | 285.1 |
Software-as-a-service | 42.9 |  |  | 45.7 |  |  | 131.8 |  |  | 139.2 |
Alternative energy (b) | 21.6 |  |  | 21.7 |  |  | 61.5 |  |  | 43.6 |
Smart cities | 8.5 |  |  | 9.6 |  |  | 27.8 |  |  | 26.7 |
Other (b) | 2.2 |  |  | 4.1 |  |  | 7.2 |  |  | 12.0 |
Total | $ | 788.0 |  |  | $ | 768.5 |  |  | $ | 2,312.5 |  |  | $ | 2,200.5 |
Major Product Group: |  |  |  |  |  |  |
Mobility technologies | $ | 605.6 |  |  | $ | 588.6 |  |  | $ | 1,746.5 |  |  | $ | 1,641.6 |
Diagnostics and repair technologies | 182.4 |  |  | 179.9 |  |  | 566.0 |  |  | 558.9 |
Total | $ | 788.0 |  |  | $ | 768.5 |  |  | $ | 2,312.5 |  |  | $ | 2,200.5 |
(a) Includes sales in the United States of $567.4 million and $526.7 million for the three months ended September 30, 2022 and October 1, 2021, respectively, and sales in the United States of $1,672.4 million and $1,513.3 million for the nine months ended September 30, 2022 and October 1, 2021, respectively. (b) Certain prior year amounts were reclassified from “Other” and “E-mobility” to “Alternative energy” to conform with current year presentation.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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