3 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 twelve months ended December 31, 2025, 2024 and 2023 (in thousands): 
 
    
December 31,
 
    
2025
   
2024
   
2023
 
Balance at the beginning of the period
   $ 320,046     $ 323,516     $ 285,175  
Recognition of revenue included in balance at beginning of the period
     (275,549     (265,167     (240,808
Revenue deferred during the period, net of revenue recognized
     300,224       261,697       279,149  
  
 
 
   
 
 
   
 
 
 
Balance at the end of the period
   $ 344,721     $ 320,046     $ 323,516  
  
 
 
   
 
 
   
 
 
 
The Company classified $
78
 million and $
69
 million of deferred revenue and customer advances in other long-term liabilities at December 31, 2025 and 2024, respectively.
The amount of unfulfilled performance obligations as of December 31, 2025, and the time such amounts are expected to be recognized in the future, is as follows (in thousands):
 
    
December 31, 2025
 
Unfulfilled performance obligations expected to be recognized in:
  
One year or less
   $ 280,276  
13-24
months
     39,968  
25 months and beyond
     38,213  
  
 
 
 
Total
   $ 358,457  
  
 
 
 

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 27, 2023
2021Feb 24, 2022
2020Feb 24, 2021
2019Feb 25, 2020
2018Feb 26, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.