Transaction price allocated to remaining performance obligations

[Table of Contents](#i30d98ad3bee64d018232130137db9899_7)NOTE 5.    REVENUEThe following table presents revenue disaggregated by types and geography (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Years Ended December 31, |
| U.S. |  |  |  |  | 2021 |  | 2020 |  | 2019 |
| Instruments and accessories |  |  |  |  | $ | 2,225.1  |  |  | $ | 1,785.1  |  |  | $ | 1,790.4  |  |
| Systems |  |  |  |  | 1,024.8  |  |  | 695.0  |  |  | 830.7  |  |
| Services |  |  |  |  | 603.3  |  |  | 482.6  |  |  | 508.4  |  |
| Total U.S. revenue |  |  |  |  | $ | 3,853.2  |  |  | $ | 2,962.7  |  |  | $ | 3,129.5  |  |
|  |  |  |  |  |  |  |  |  |  |
| Outside of U.S. (“OUS”) |  |  |  |  |  |  |  |  |  |
| Instruments and accessories |  |  |  |  | $ | 875.4  |  |  | $ | 670.6  |  |  | $ | 617.8  |  |
| Systems |  |  |  |  | 668.6  |  |  | 483.9  |  |  | 515.4  |  |
| Services |  |  |  |  | 312.9  |  |  | 241.2  |  |  | 215.8  |  |
| Total OUS revenue |  |  |  |  | $ | 1,856.9  |  |  | $ | 1,395.7  |  |  | $ | 1,349.0  |  |
|  |  |  |  |  |  |  |  |  |  |
| Total |  |  |  |  |  |  |  |  |  |
| Instruments and accessories |  |  |  |  | $ | 3,100.5  |  |  | $ | 2,455.7  |  |  | $ | 2,408.2  |  |
| Systems |  |  |  |  | 1,693.4  |  |  | 1,178.9  |  |  | 1,346.1  |  |
| Services |  |  |  |  | 916.2  |  |  | 723.8  |  |  | 724.2  |  |
| Total revenue |  |  |  |  | $ | 5,710.1  |  |  | $ | 4,358.4  |  |  | $ | 4,478.5  |  |

Remaining Performance ObligationsThe transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which revenue has not yet been recognized. A significant portion of these performance obligations relate to service obligations in the Company's system sale and lease arrangements that will be satisfied and recognized as revenue in future periods. The transaction price allocated to the remaining performance obligations was $1.86 billion as of December 31, 2021. The remaining performance obligations are expected to be satisfied over the term of the system sale, lease, and service arrangements, which are generally up to 5 years.Contract Assets and LiabilitiesThe following information summarizes the Company’s contract assets and liabilities (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, |
|  | 2021 |  | 2020 |
| Contract assets | $ | 46.9  |  |  | $ | 34.6  |  |
| Deferred revenue | $ | 414.0  |  |  | $ | 382.3  |  |

The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due 30 to 60 days from date of invoice. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. Deferred revenue for the periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to those services having been performed. The associated deferred revenue is generally recognized over the term of the service period. The Company did not have any significant impairment losses on its contract assets for the periods presented.During the year ended December 31, 2021, the Company recognized $351 million of revenue that was included in the deferred revenue balance as of December 31, 2020. During the year ended December 31, 2020, the Company recognized $282 million of revenue that was included in the deferred revenue balance as of December 31, 2019.102
