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
Apr. 04, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 2. 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 April 4, 2021, was $847 million. We expect to recognize the related revenue of $152 million over the next 12 months and $695 million over periods up to 10 years. See Note 9, "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 April 4,
2021		 December 31,
2020
Unbilled revenue $ 153  $ 114 
Deferred revenue, primarily extended warranty 1,601  1,531 
We recognized revenue of $154 million for the three months ended April 4, 2021, compared with $112 million for the comparable period in 2020, 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 April 4, 2021 or March 29, 2020.
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 April 4,
2021		 March 29,
2020
United States $ 3,060  $ 2,852 
China 957  522 
India 330  170 
Other international 1,745  1,467 
Total net sales $ 6,092  $ 5,011 
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended
In millions April 4,
2021		 March 29,
2020
Heavy-duty truck $ 613  $ 519 
Medium-duty truck and bus 483  490 
Light-duty automotive 474  327 
Total on-highway 1,570  1,336 
Off-highway 325  243 
Total sales $ 1,895  $ 1,579 
Distribution segment external sales by region were as follows:
Three months ended
In millions April 4,
2021		 March 29,
2020
North America $ 1,166  $ 1,245 
Asia Pacific 213  192 
Europe 163  135 
China 85  68 
Russia 57  41 
Africa and Middle East 54  51 
India 49  36 
Latin America 40  39 
Total sales $ 1,827  $ 1,807 
Distribution segment external sales by product line were as follows:
Three months ended
In millions April 4,
2021		 March 29,
2020
Parts $ 754  $ 783 
Power generation 416  375 
Engines 333  322 
Service 324  327 
Total sales $ 1,827  $ 1,807 
Components segment external sales by business were as follows:
Three months ended
In millions April 4,
2021		 March 29,
2020
Emission solutions $ 966  $ 570 
Filtration 301  249 
Turbo technologies 225  158 
Electronics and fuel systems 117  56 
Automated transmissions 115  82 
Total sales $ 1,724  $ 1,115 
Power Systems segment external sales by product line were as follows:
Three months ended
In millions April 4,
2021		 March 29,
2020
Power generation $ 351  $ 269 
Industrial 179  165 
Generator technologies 82  66 
Total sales $ 612  $ 500