Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION DISAGGREGATION OF REVENUES

v3.22.1
REVENUE RECOGNITION DISAGGREGATION OF REVENUES
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022, was $736 million. We expect to recognize the related revenue of $112 million over the next 12 months and $624 million over periods up to 10 years. See Note 11, "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,
2022		 December 31,
2021
Unbilled revenue $ 138  $ 100 
Deferred revenue, primarily extended warranty 1,760  1,705 
We recognized revenue of $240 million for the three months ended March 31, 2022, compared with $169 million for the comparable period in 2021, 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, 2022 or April 4, 2021.
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,
2022		 April 4,
2021
United States $ 3,457  $ 3,060 
China 653  957 
India 309  330 
Other international 1,966  1,745 
Total net sales $ 6,385  $ 6,092 
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended
In millions March 31,
2022		 April 4,
2021
Heavy-duty truck $ 684  $ 613 
Medium-duty truck and bus 591  483 
Light-duty automotive 487  474 
Total on-highway 1,762  1,570 
Off-highway 287  325 
Total sales $ 2,049  $ 1,895 
Distribution segment external sales by region were as follows:
Three months ended
In millions March 31,
2022		 April 4,
2021
North America $ 1,371  $ 1,166 
Asia Pacific 244  213 
Europe 143  163 
Russia 136  57 
China 82  85 
India 48  49 
Africa and Middle East 46  54 
Latin America 41  40 
Total sales $ 2,111  $ 1,827 
Distribution segment external sales by product line were as follows:
Three months ended
In millions March 31,
2022		 April 4,
2021
Parts $ 926  $ 754 
Engines 438  333 
Power generation 398  416 
Service 349  324 
Total sales $ 2,111  $ 1,827 
Components segment external sales by business were as follows:
Three months ended
In millions March 31,
2022		 April 4,
2021
Emission solutions $ 808  $ 966 
Filtration 308  301 
Turbo technologies 197  225 
Automated transmissions 134  115 
Electronics and fuel systems 70  117 
Total sales $ 1,517  $ 1,724 
Power Systems segment external sales by product line were as follows:
Three months ended
In millions March 31,
2022		 April 4,
2021
Power generation $ 399  $ 351 
Industrial 188  179 
Generator technologies 96  82 
Total sales $ 683  $ 612