Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION DISAGGREGATION OF REVENUES

v3.22.2.2
REVENUE RECOGNITION DISAGGREGATION OF REVENUES
 9 Months Ended
Sep. 30, 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 September 30, 2022, was $695 million. We expect to recognize the related revenue of $125 million over the next 12 months and $570 million over periods up to 10 years. See NOTE 12, "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 September 30,
2022		 December 31,
2021
Unbilled revenue $ 244  $ 100 
Deferred revenue, primarily extended warranty 1,788  1,705 
We recognized revenue of $123 million and $539 million for the three and nine months ended September 30, 2022, compared with $130 million and $432 million for the comparable periods 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 and nine months ended September 30, 2022 or October 3, 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 Nine months ended
In millions September 30,
2022		 October 3,
2021		 September 30,
2022		 October 3,
2021
United States $ 4,116  $ 3,177  $ 11,361  $ 9,500 
China 601  679  1,774  2,468 
India 358  294  978  841 
Other international 2,258  1,818  6,191  5,362 
Total net sales $ 7,333  $ 5,968  $ 20,304  $ 18,171 
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended Nine months ended
In millions September 30,
2022		 October 3,
2021		 September 30,
2022		 October 3,
2021
Heavy-duty truck $ 751  $ 662  $ 2,232  $ 1,941 
Medium-duty truck and bus 583  501  1,794  1,461 
Light-duty automotive 465  492  1,377  1,432 
Total on-highway 1,799  1,655  5,403  4,834 
Off-highway 264  306  801  942 
Total sales $ 2,063  $ 1,961  $ 6,204  $ 5,776 
Distribution segment external sales by region were as follows:
Three months ended Nine months ended
In millions September 30,
2022		 October 3,
2021		 September 30,
2022		 October 3,
2021
North America $ 1,512  $ 1,237  $ 4,374  $ 3,631 
Asia Pacific 258  236  744  675 
Europe 174  143  494  467 
China 89  80  270  239 
Africa and Middle East 73  74  174  197 
Latin America 58  48  155  136 
India 55  48  155  138 
Russia(1)
13  86  224  209 
Total sales $ 2,232  $ 1,952  $ 6,590  $ 5,692 
(1) The Distribution segment is organized and managed by geographic regions. The Russia region contains sales to several countries in the geographic area.
Distribution segment external sales by product line were as follows:
Three months ended Nine months ended
In millions September 30,
2022		 October 3,
2021		 September 30,
2022		 October 3,
2021
Parts $ 942  $ 796  $ 2,855  $ 2,313 
Engines 449  376  1,315  1,058 
Power generation 428  437  1,266  1,305 
Service 413  343  1,154  1,016 
Total sales $ 2,232  $ 1,952  $ 6,590  $ 5,692 
Components segment external sales by business were as follows:
Three months ended Nine months ended
In millions September 30,
2022		 October 3,
2021		 September 30,
2022		 October 3,
2021
Emission solutions $ 748  $ 699  $ 2,323  $ 2,466 
Axles and brakes 732  —  732  — 
Filtration 322  288  949  892 
Turbo technologies 205  177  597  609 
Automated transmissions 159  112  436  374 
Electronics and fuel systems 54  71  177  286 
Total sales $ 2,220  $ 1,347  $ 5,214  $ 4,627 
Power Systems segment external sales by product line were as follows:
Three months ended Nine months ended
In millions September 30,
2022		 October 3,
2021		 September 30,
2022		 October 3,
2021
Power generation $ 425  $ 395  $ 1,232  $ 1,127 
Industrial 226  209  627  621 
Generator technologies 122  84  331  251 
Total sales $ 773  $ 688  $ 2,190  $ 1,999