Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE

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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
 3 Months Ended
Mar. 29, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 3. REVENUE RECOGNITION
Long-term Contracts
Most 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 had not been satisfied as of March 29, 2020, was $967 million. We expect to recognize the related revenue of $237 million over the next 12 months and $730 million over periods up to 10 years. See Note 10, "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:
In millions March 29,
2020		 December 31,
2019
Unbilled revenue $ 91    $ 68   
Deferred revenue, primarily extended warranty 1,364    1,354   
We recognized revenue of $112 million and $109 million for the three months ended March 29, 2020 and March 31, 2019, 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 the three months ended March 29, 2020 or March 31, 2019.
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.
  Three months ended
In millions March 29,
2020		 March 31,
2019
United States $ 2,852    $ 3,436   
China 522    573   
India 170    224   
Other international 1,467    1,771   
Total net sales $ 5,011    $ 6,004   
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended
In millions March 29,
2020		 March 31,
2019
Heavy-duty truck $ 519    $ 723   
Medium-duty truck and bus 490    610   
Light-duty automotive 327    330   
Total on-highway 1,336    1,663   
Off-highway 243    321   
Total sales $ 1,579    $ 1,984   
Distribution segment external sales by region were as follows:
Three months ended
In millions March 29,
2020		 March 31,
2019
North America $ 1,245    $ 1,392   
Asia Pacific 192    220   
Europe 135    123   
China 68    81   
Africa and Middle East 51    55   
Russia 41    35   
Latin America 39    40   
India 36    47   
Total sales $ 1,807    $ 1,993   
Distribution segment external sales by product line were as follows:
Three months ended
In millions March 29,
2020		 March 31,
2019
Parts $ 783    $ 841   
Power generation 375    401   
Service 327    362   
Engines 322    389   
Total sales $ 1,807    $ 1,993   
Components segment external sales by business were as follows:
Three months ended
In millions March 29,
2020		 March 31,
2019
Emission solutions $ 570    $ 749   
Filtration 249    259   
Turbo technologies 158    190   
Automated transmissions 82    149   
Electronics and fuel systems 56    54   
Total sales $ 1,115    $ 1,401   
Power Systems segment external sales by product line were as follows:
Three months ended
In millions March 29,
2020		 March 31,
2019
Power generation $ 269    $ 308   
Industrial 165    231   
Generator technologies 66    84   
Total sales $ 500    $ 623