v3.26.1
Revenue Recognition
 6 Months Ended
Jul. 04, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
2 Revenue Recognition
The Company’s deferred revenue liabilities in the consolidated balance sheets consist of the obligation on instrument service contracts and customer payments received in advance, prior to transfer of control of the instrument. The Company records deferred revenue primarily related to its service contracts, where consideration is billable at the beginning of the service period.
The following is a summary of the activity of the Company’s deferred revenue and customer advances for the six months ended July 4, 2026 and June 28, 2025 (in millions):
 
    
July 4, 2026
     
June 28, 2025
  
Balance at the beginning of the period
    $ 345      $ 320  
Deferred revenue acquired
      149        —   
Recognition of revenue included in balance at beginning of the
period
      (187 )       (202 ) 
Revenue deferred during the period, net of revenue recognized
      296        303  
  
 
 
     
 
 
  
Balance at the end of the period
    $ 603      $ 421  
  
 
 
     
 
 
  
Refer to Note 4, “Acquisitions” for further details for the amounts included as a result of the acquisition of the BDS Business.
The Company classified $108 million and $78 million of deferred revenue and customer advances in other long-term liabilities at July 4, 2026 and December 31, 2025, respectively.
The amount of unfulfilled performance obligations as of July 4, 2026, and the time such amounts are expected to be recognized in the future, is as follows (in millions):
 
    
July 4, 2026
  
Unfulfilled performance obligations expected to be recognized in:
   
One year or less
    $ 509  
13-24
months
      70  
25 months and beyond
      38  
  
 
 
  
Total
    $ 617