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. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Contracts
We have certain arrangements, primarily long-term maintenance agreements, construction contracts, product sales with associated performance obligations extending beyond a year, product sales with lead times extending beyond one year that are non-cancellable or for which the customer incurs a penalty for cancellation and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for these contracts, excluding extended warranty coverage arrangements, as of March 31, 2024, was $3.1 billion. We expect to recognize the related revenue of $1.4 billion over the next 12 months and $1.7 billion 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 31,
2024		 December 31,
2023
Unbilled revenue $ 330  $ 303 
Deferred revenue 2,297  2,186 
We recognized revenue of $248 million for the three months ended March 31, 2024, compared with $206 million for the comparable period in 2023, 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 31, 2024 or 2023.
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
  March 31,
In millions 2024 2023
United States $ 4,785  $ 4,802 
China 723  790 
India 444  411 
Other international 2,451  2,450 
Total net sales $ 8,403  $ 8,453 
Segment Revenue
Components segment external sales by business were as follows:
Three months ended
March 31,
In millions 2024 2023
Axles and brakes $ 1,232  $ 1,272 
Emission solutions 856  939 
Atmus 289 
(1)
 342 
Engine components 271  292 
Automated transmissions 165  178 
Software and electronics 29  20 
Total sales $ 2,842  $ 3,043 
 (1) Included sales through the March 18, 2024, divestiture. See NOTE 14, "ATMUS DIVESTITURE," for additional information.
Engine segment external sales by market were as follows:
Three months ended
March 31,
In millions 2024 2023
Heavy-duty truck $ 811  $ 860 
Medium-duty truck and bus 738  617 
Light-duty automotive 438  441 
Total on-highway 1,987  1,918 
Off-highway 253  334 
Total sales $ 2,240  $ 2,252 
Distribution segment external sales by region were as follows:
Three months ended
March 31,
In millions 2024 2023
North America $ 1,722  $ 1,693 
Asia Pacific 285  239 
Europe 240  194 
China 100  101 
India 69  57 
Latin America 59  53 
Africa and Middle East 54  62 
Total sales $ 2,529  $ 2,399 
Distribution segment external sales by product line were as follows:
Three months ended
March 31,
In millions 2024 2023
Parts $ 997  $ 1,052 
Power generation 705  491 
Engines 422  456 
Service 405  400 
Total sales $ 2,529  $ 2,399 
Power Systems segment external sales by product line were as follows:
Three months ended
March 31,
In millions 2024 2023
Power generation $ 360  $ 380 
Industrial 238  189 
Generator technologies 110  110 
Total sales $ 708  $ 679