v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
Transaction price allocated to remaining performance obligations

The Company has estimated that $1.5 billion in revenue is expected to be recognized in future periods related to remaining performance obligations from the Company's contracts with customers outstanding as of March 31, 2026. The Company expects to complete these obligations and recognize revenue in the range of 70% to 80% during 2026, 20% to 30% during 2027, and the remainder after 2027.

Disaggregation of Revenue

In the following table, revenue is disaggregated by type of good or service and primary geographical market. The table also includes a reconciliation of the disaggregated revenue to total revenue.

Three Months Ended
March 31, 2026
Three Months Ended March 31, 2025 (3)
(In millions)Protein SolutionsPrepared Food and Beverage SolutionsProtein SolutionsPrepared Food and Beverage Solutions
Type of Good or Service
Recurring (1)
$235 $250 $209 $240 
Non-recurring (1)
225 226 169 236 
Total460 476 378 476 
Geographical Region (2)
U.S. and Canada133 223 129 217 
Europe, Middle East and Africa257 162 173 174 
Asia Pacific29 39 37 40 
Latin America41 52 39 45 
Total460 476 378 476 
(1) Recurring revenue includes revenue from aftermarket parts and services, re-build services on customer owned equipment, operating leases of equipment, and subscription-based software applications. Non-recurring revenue includes new equipment and installation and the sale of software licenses.
(2) Geographical region represents the region in which the end customer resides.
(3) Segment revenues for the three months ended March 31, 2025 were recast to reflect the Company’s realignment of its reportable segments, effective in the fourth quarter of 2025.

Contract balances

The timing of revenue recognition, billings and cash collections results in trade receivables, contract assets, and advance and progress payments (contract liabilities). Contract assets exist when revenue recognition occurs prior to billings. Contract assets are transferred to trade receivables when the right to payment becomes unconditional (i.e., when receipt of the amount is dependent only on the passage of time). Conversely, the Company often receives payments from its customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets as Contract assets and within Advance and progress payments, respectively, on a contract-by-contract net basis at the end of each reporting period.
Contract asset and liability balances for the period were as follows:
Balances as of
(In millions)March 31, 2026December 31, 2025
Contract Assets$142 $119 
Contract Liabilities539 499 
March 31, 2025December 31, 2024
Contract Assets145 95 
Contract Liabilities481 178 

The revenue recognized during the three months ended March 31, 2026 and 2025 that was included in contract liabilities at the beginning of the period amounted to $131 million and $85 million, respectively. The Company assumed contract liabilities from acquisitions in the amount of $263 million in 2025. The remainder of the change from December 31, 2025 and December 31, 2024 is driven by the timing of advance and milestone payments received from customers, customer returns and fulfillment of performance obligations. There were no significant changes in the contract balances other than those described above.