Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION DISAGGREGATION OF REVENUES

v3.21.2
REVENUE RECOGNITION DISAGGREGATION OF REVENUES
 6 Months Ended
Jul. 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 July 4, 2021, was $812 million. We expect to recognize the related revenue of $164 million over the next 12 months and $648 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 July 4,
2021		 December 31,
2020
Unbilled revenue $ 109  $ 114 
Deferred revenue, primarily extended warranty 1,633  1,531 
We recognized revenue of $126 million and $280 million for the three and six months ended July 4, 2021, compared with $94 million and $206 million for the comparable periods 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 and six months ended July 4, 2021 or June 28, 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 Six months ended
In millions July 4,
2021		 June 28,
2020		 July 4,
2021		 June 28,
2020
United States $ 3,263  $ 1,865  $ 6,323  $ 4,717 
China 832  810  1,789  1,332 
India 217  70  547  240 
Other international 1,799  1,107  3,544  2,574 
Total net sales $ 6,111  $ 3,852  $ 12,203  $ 8,863 
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended Six months ended
In millions July 4,
2021		 June 28,
2020		 July 4,
2021		 June 28,
2020
Heavy-duty truck $ 666  $ 221  $ 1,279  $ 740 
Medium-duty truck and bus 477  298  960  788 
Light-duty automotive 466  146  940  473 
Total on-highway 1,609  665  3,179  2,001 
Off-highway 311  272  636  515 
Total sales $ 1,920  $ 937  $ 3,815  $ 2,516 
Distribution segment external sales by region were as follows:
Three months ended Six months ended
In millions July 4,
2021		 June 28,
2020		 July 4,
2021		 June 28,
2020
North America $ 1,228  $ 1,038  $ 2,394  $ 2,283 
Asia Pacific 226  190  439  382 
Europe 161  136  324  271 
China 74  100  159  168 
Africa and Middle East 69  38  123  89 
Russia 66  44  123  85 
Latin America 48  32  88  71 
India 41  23  90  59 
Total sales $ 1,913  $ 1,601  $ 3,740  $ 3,408 
Distribution segment external sales by product line were as follows:
Three months ended Six months ended
In millions July 4,
2021		 June 28,
2020		 July 4,
2021		 June 28,
2020
Parts $ 763  $ 653  $ 1,517  $ 1,436 
Power generation 452  376  868  751 
Engines 349  276  682  598 
Service 349  296  673  623 
Total sales $ 1,913  $ 1,601  $ 3,740  $ 3,408 
Components segment external sales by business were as follows:
Three months ended Six months ended
In millions July 4,
2021		 June 28,
2020		 July 4,
2021		 June 28,
2020
Emission solutions $ 801  $ 394  $ 1,767  $ 964 
Filtration 303  206  604  455 
Turbo technologies 207  142  432  300 
Automated transmissions 147  43  262  125 
Electronics and fuel systems 98  91  215  147 
Total sales $ 1,556  $ 876  $ 3,280  $ 1,991 
Power Systems segment external sales by product line were as follows:
Three months ended Six months ended
In millions July 4,
2021		 June 28,
2020		 July 4,
2021		 June 28,
2020
Power generation $ 381  $ 224  $ 732  $ 493 
Industrial 233  145  412  310 
Generator technologies 85  59  167  125 
Total sales $ 699  $ 428  $ 1,311  $ 928