Quarterly report [Sections 13 or 15(d)]

REVENUE RECOGNITION DISAGGREGATION OF REVENUES

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REVENUE RECOGNITION DISAGGREGATION OF REVENUES
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Maintenance Agreements
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, at March 31, 2025, was $5.8 billion. We expect to recognize the related revenue of $3.2 billion over the next 12 months and $2.6 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,
2025		 December 31,
2024
Unbilled revenue $ 423  $ 403 
Deferred revenue 2,559  2,412 
We recognized revenue of $350 million for the three months ended March 31, 2025, compared with $248 million for the comparable period in 2024, 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, 2025 or 2024.
Disaggregation of Revenue
Consolidated Revenue
The table below presents our consolidated net sales by geographic area based on the location of the customer:
Three months ended
  March 31,
In millions 2025 2024
United States $ 4,750  $ 4,785 
China 779  723 
India 426  444 
Other international 2,219  2,451 
Total net sales $ 8,174  $ 8,403 
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended
March 31,
In millions 2025 2024
Heavy-duty truck $ 654  $ 811 
Medium-duty truck and bus 700  738 
Light-duty automotive 425  438 
Total on-highway 1,779  1,987 
Off-highway 261  253 
Total sales $ 2,040  $ 2,240 
Components segment external sales by business were as follows:
Three months ended
March 31,
In millions 2025 2024
Drivetrain and braking systems $ 1,056  $ 1,232 
Emission solutions 791  856 
Components and software 306  300 
Automated transmissions 117  165 
Atmus —  289 
(1)
Total sales $ 2,270  $ 2,842 
(1) Included sales through the March 18, 2024, divestiture. See NOTE 14, "ATMUS DIVESTITURE," for additional information.
Distribution segment external sales by region were as follows:
Three months ended
March 31,
In millions 2025 2024
North America $ 2,099  $ 1,722 
Europe 269  240 
Asia Pacific 240  285 
China 113  100 
India 72  69 
Africa and Middle East 59  54 
Latin America 50  59 
Total sales $ 2,902  $ 2,529 
Distribution segment external sales by product line were as follows:
Three months ended
March 31,
In millions 2025 2024
Power generation $ 1,090  $ 705 
Parts 1,026  997 
Service 416  405 
Engines 370  422 
Total sales $ 2,902  $ 2,529 
Power Systems segment external sales by product line were as follows:
Three months ended
March 31,
In millions 2025 2024
Power generation $ 445  $ 360 
Industrial 284  238 
Generator technologies 143  110 
Total sales $ 872  $ 708