Annual report pursuant to Section 13 and 15(d)

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE

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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Contracts
The majority of our contracts are for a period of less than one year. We have certain long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that were not satisfied as of December 31, 2022, was $663 million. We expect to recognize the related revenue of $123 million over the next 12 months and $540 million over periods up to 10 years. See NOTE 14,"PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties.
Deferred and Unbilled Revenue
The following is a summary of our unbilled and deferred revenue and related activity:
Years ended December 31,
In millions 2022 2021
Unbilled revenue $ 257  $ 100 
Deferred revenue, primarily extended warranty 1,848  1,705 
We recognized revenue of $639 million and $509 million in 2022 and 2021, respectively, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during 2022 or 2021.
Disaggregation of Revenue
Consolidated Revenue
The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer.
Years ended December 31,
In millions 2022 2021 2020
United States $ 15,552  $ 12,489  $ 10,605 
China 2,390  3,169  2,832 
India 1,392  1,133  680 
Other international 8,740  7,230  5,694 
Total net sales $ 28,074  $ 24,021  $ 19,811 
Segment Revenue
Engine segment external sales by market were as follows:
Years ended December 31,
In millions 2022 2021 2020
Heavy-duty truck $ 2,995  $ 2,511  $ 1,800 
Medium-duty truck and bus 2,412  1,978  1,629 
Light-duty automotive 1,704  1,845  1,441 
Total on-highway 7,111  6,334  4,870 
Off-highway 1,088  1,255  1,055 
Total sales $ 8,199  $ 7,589  $ 5,925 
Components segment external sales by business were as follows:
Years ended December 31,
In millions 2022 2021 2020
Emission solutions $ 3,086  $ 3,142  $ 2,352 
Axles and brakes 1,879  —  — 
Filtration 1,259  1,171  1,005 
Turbo technologies 806  787  673 
Automated transmissions 593  481  303 
Electronics and fuel systems 224  351  317 
Total sales $ 7,847  $ 5,932  $ 4,650 
Distribution segment external sales by region were as follows:
Years ended December 31,
In millions 2022 2021 2020
North America $ 5,948  $ 4,902  $ 4,688 
Asia Pacific 1,011  901  799 
Europe 705  647  597 
China 351  323  340 
Africa and Middle East 227  259  198 
Commonwealth of Independent States 232  334  191 
India 217  194  150 
Latin America 210  182  147 
Total sales $ 8,901  $ 7,742  $ 7,110 
Distribution segment external sales by product line were as follows:
Years ended December 31,
In millions 2022 2021 2020
Parts $ 3,809  $ 3,136  $ 2,921 
Engines 1,770  1,493  1,245 
Power generation 1,767  1,754  1,686 
Service 1,555  1,359  1,258 
Total sales $ 8,901  $ 7,742  $ 7,110 
Power Systems segment external sales by product line were as follows:
Years ended December 31,
In millions 2022 2021 2020
Power generation $ 1,658  $ 1,481  $ 1,155 
Industrial 843  820  638 
Generator technologies 450  349  262 
Total sales $ 2,951  $ 2,650  $ 2,055