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, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
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 December 31, 2020, was $879 million. We expect to recognize the related revenue of $160 million over the next 12 months and $719 million over periods up to 10 years. See Note 12,"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 2020 2019
Unbilled revenue $ 114  $ 68 
Deferred revenue, primarily extended warranty 1,531  1,354 
We recognized revenue of $372 million and $365 million in 2020 and 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 2020 or 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.
Years ended December 31,
In millions 2020 2019 2018
United States $ 10,605  $ 13,519  $ 13,218 
China 2,832  2,331  2,324 
India 680  848  965 
Other international 5,694  6,873  7,264 
Total net sales $ 19,811  $ 23,571  $ 23,771 
Segment Revenue
Engine segment external sales by market were as follows:
Years ended December 31,
In millions 2020 2019 2018
Heavy-duty truck $ 1,800  $ 2,626  $ 2,885 
Medium-duty truck and bus 1,629  2,244  2,536 
Light-duty automotive 1,441  1,656  1,501 
Total on-highway 4,870  6,526  6,922 
Off-highway 1,055  1,044  1,080 
Total sales $ 5,925  $ 7,570  $ 8,002 
Distribution segment external sales by region were as follows:
Years ended December 31,
In millions 2020 2019 2018
North America $ 4,688  $ 5,513  $ 5,331 
Asia Pacific 799  875  851 
Europe 597  528  536 
China 340  356  317 
Africa and Middle East 198  235  242 
Russia 191  157  169 
India 150  200  192 
Latin America 147  176  169 
Total sales $ 7,110  $ 8,040  $ 7,807 
Distribution segment external sales by product line were as follows:
Years ended December 31,
In millions 2020 2019 2018
Parts $ 2,921  $ 3,278  $ 3,222 
Power generation 1,686  1,777  1,482 
Service 1,258  1,474  1,471 
Engines 1,245  1,511  1,632 
Total sales $ 7,110  $ 8,040  $ 7,807 
Components segment external sales by business were as follows:
Years ended December 31,
In millions 2020 2019 2018
Emission solutions $ 2,352  $ 2,763  $ 2,780 
Filtration 1,005  1,024  1,010 
Turbo technologies 673  696  761 
Electronics and fuel systems 317  236  237 
Automated transmissions 303  534  543 
Total sales $ 4,650  $ 5,253  $ 5,331 
Power Systems segment external sales by product line were as follows:
Years ended December 31,
In millions 2020 2019 2018
Power generation $ 1,155  $ 1,414  $ 1,467 
Industrial 638  908  801 
Generator technologies 262  348  357 
Total sales $ 2,055  $ 2,670  $ 2,625