NOTE 5: COMMERCIAL AEROSPACE INDUSTRY ASSETS AND COMMITMENTS

We have receivables and other financing assets with commercial aerospace industry customers totaling $6,143 million and $5,548 million at December 31, 2015 and 2014, respectively. These include customer financing assets related to commercial aerospace industry customers, consisting of products under lease of $537 million and $564 million, and notes and leases receivable of $566 million and $424 million, at December 31, 2015 and 2014, respectively.

Aircraft financing commitments, in the form of debt, guarantees or lease financing, are provided to commercial aerospace customers. The extent to which the financing commitments will be utilized is not currently known, since customers may be able to obtain more favorable terms from other financing sources. We may also arrange for third-party investors to assume a portion of these commitments. If financing commitments are exercised, debt financing is generally secured by assets with fair market values equal to or exceeding the financed amounts consistent with market terms and conditions. We may also lease aircraft and subsequently sublease the aircraft to customers under long-term non-cancelable operating leases. Lastly, we have made residual value and other guarantees related to various commercial aerospace customer financing arrangements. The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves.

We also have other contractual commitments, including commitments to secure certain contractual rights to provide product on new aircraft platforms, which are included in "Other commercial aerospace commitments" in the table below. Payments made on these contractual commitments are included in intangible assets and are amortized over the term of underlying economic benefit. Our commercial aerospace financing and other contractual commitments as of December 31, 2015 were approximately $14.6 billion. We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments.

The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2015:



(dollars in millions)	Committed			2016			2017			2018			2019			2020			Thereafter
Notes and leases receivable	$	566		$	97		$	102		$	26		$	40		$	34		$	267
Commercial aerospace financing commitments	$	2,608		$	410		$	405		$	534		$	381		$	178		$	700
Other commercial aerospace commitments	11,985			821			929			896			743			728			7,868
Collaboration partners' share	(4,093		)	(344		)	(381		)	(462		)	(302		)	(193		)	(2,411		)
Total commercial commitments	$	10,500		$	887		$	953		$	968		$	822		$	713		$	6,157

In 2012, Pratt & Whitney obtained increased ownership and collaboration interests in IAE and an intellectual property license, paying Rolls-Royce $1.5 billion at closing, with additional payments due to Rolls-Royce contingent upon each hour flown by the V2500-powered aircraft in service as of June 29, 2012 during the fifteen-year period following closing of the purchase. These flight hour payments, included in "Other commercial aerospace commitments" in the table above, are being capitalized as collaboration intangible assets. See Note 2 for further discussion.

Our financing commitments with customers are contingent upon maintenance of certain levels of financial condition by the customers. In addition, we have residual value and other guarantees of $365 million as of December 31, 2015.

We have long-term aftermarket maintenance contracts with commercial aerospace industry customers for which revenue is recognized in proportion to actual costs incurred relative to total expected costs to be incurred over the respective contract periods. Billings, however, are typically based on factors such as engine flight hours. The timing differences between the billings and the maintenance costs incurred generates both unbilled receivables and deferred revenues. Unbilled receivables under these long-term aftermarket contracts totaled $1,091 million and $819 million at December 31, 2015 and 2014, respectively, and are included in Accounts receivable and Other assets in the accompanying Consolidated Balance Sheet. Deferred revenues totaled $3,502 million and $3,429 million at December 31, 2015 and 2014, respectively, and are included in Accrued liabilities and Other long-term liabilities in the accompanying Consolidated Balance Sheet.

Reserves related to aerospace receivables and financing assets were $217 million and $243 million at December 31, 2015 and 2014, respectively. Reserves related to financing commitments and guarantees were $47 million and $64 million at December 31, 2015 and 2014, respectively.