Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION DISAGGREGATION OF REVENUES

v3.19.1
REVENUE RECOGNITION DISAGGREGATION OF REVENUES
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer NOTE 3. REVENUE RECOGNITION
Long-term Contracts

Most 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 have not been satisfied as of March 31, 2019, was $705 million. We expect to recognize the related revenue of $205 million over the next 12 months and $500 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 cost incurred when providing goods and services to our customers or represent sale-based royalties.

Deferred and Unbilled Revenue
The following is a summary of our unbilled and deferred revenue and related activity:
In millions
 
March 31,
2019
 
December 31,
2018
Unbilled revenue
 
$
46

 
$
64

Deferred revenue, primarily extended warranty
 
1,206

 
1,156

 
Revenue recognized was $109 million and $128 million for the three months ended March 31, 2019 and April 1, 2018, respectively. These amounts relate to year-to-date revenues recognized from amounts included in deferred revenue at the beginning of the year. We did not record any impairment losses on our unbilled revenues during the three months ended March 31, 2019.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
 
March 31,
2019
 
April 1,
2018
United States
 
$
3,436

 
$
3,038

China
 
573

 
550

India
 
224

 
235

Other international
 
1,771

 
1,747

Total net sales
 
$
6,004

 
$
5,570


Segment Revenue
Engine segment external sales by market were as follows:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Heavy-duty truck
 
$
723

 
$
614

Medium-duty truck and bus
 
610

 
627

Light-duty automotive
 
330

 
323

Total on-highway
 
1,663

 
1,564

Off-highway
 
321

 
249

Total sales
 
$
1,984

 
$
1,813


Distribution segment external sales by region were as follows:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
North America
 
$
1,392

 
$
1,274

Asia Pacific
 
220

 
187

Europe
 
123

 
131

China
 
81

 
77

Africa and Middle East
 
55

 
61

India
 
47

 
44

Latin America
 
40

 
38

Russia
 
35

 
35

Total sales
 
$
1,993

 
$
1,847


Distribution segment external sales by product line were as follows:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Parts
 
$
841

 
$
803

Power generation
 
401

 
325

Engines
 
389

 
368

Service
 
362

 
351

Total sales
 
$
1,993

 
$
1,847


Components segment external sales by business were as follows:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Emission solutions
 
$
749

 
$
684

Filtration
 
259

 
257

Turbo technologies
 
190

 
197

Automated transmissions
 
149

 
117

Electronics and fuel systems
 
54

 
58

Total sales
 
$
1,401

 
$
1,313


Power Systems segment external sales by product line were as follows:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Power generation
 
$
308

 
$
310

Industrial
 
231

 
201

Generator technologies
 
84

 
84

Total sales
 
$
623

 
$
595