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, 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 December 31, 2021, was $740 million. We expect to recognize the related revenue of $114 million over the next 12 months and $626 million over periods up to 10 years. See Note 13,"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 2021 2020
Unbilled revenue $ 100  $ 114 
Deferred revenue, primarily extended warranty 1,705  1,531 
We recognized revenue of $509 million and $372 million in 2021 and 2020, 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 2021 or 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.
Years ended December 31,
In millions 2021 2020 2019
United States $ 12,489  $ 10,605  $ 13,519 
China 3,169  2,832  2,331 
India 1,133  680  848 
Other international 7,230  5,694  6,873 
Total net sales $ 24,021  $ 19,811  $ 23,571 
Segment Revenue
Engine segment external sales by market were as follows:
Years ended December 31,
In millions 2021 2020 2019
Heavy-duty truck $ 2,511  $ 1,800  $ 2,626 
Medium-duty truck and bus 1,978  1,629  2,244 
Light-duty automotive 1,845  1,441  1,656 
Total on-highway 6,334  4,870  6,526 
Off-highway 1,255  1,055  1,044 
Total sales $ 7,589  $ 5,925  $ 7,570 
Distribution segment external sales by region were as follows:
Years ended December 31,
In millions 2021 2020 2019
North America $ 4,902  $ 4,688  $ 5,513 
Asia Pacific 901  799  875 
Europe 647  597  528 
Russia 334  191  157 
China 323  340  356 
Africa and Middle East 259  198  235 
India 194  150  200 
Latin America 182  147  176 
Total sales $ 7,742  $ 7,110  $ 8,040 
Distribution segment external sales by product line were as follows:
Years ended December 31,
In millions 2021 2020 2019
Parts $ 3,136  $ 2,921  $ 3,278 
Power generation 1,754  1,686  1,777 
Engines 1,493  1,245  1,511 
Service 1,359  1,258  1,474 
Total sales $ 7,742  $ 7,110  $ 8,040 
Components segment external sales by business were as follows:
Years ended December 31,
In millions 2021 2020 2019
Emission solutions $ 3,142  $ 2,352  $ 2,763 
Filtration 1,171  1,005  1,024 
Turbo technologies 787  673  696 
Automated transmissions 481  303  534 
Electronics and fuel systems 351  317  236 
Total sales $ 5,932  $ 4,650  $ 5,253 
Power Systems segment external sales by product line were as follows:
Years ended December 31,
In millions 2021 2020 2019
Power generation $ 1,481  $ 1,155  $ 1,414 
Industrial 820  638  908 
Generator technologies 349  262  348 
Total sales $ 2,650  $ 2,055  $ 2,670