Revenue Recognition Contract Asset & Liability (Tables)

3 Months Ended

Mar. 31, 2018

Contract Asset and Liability [Abstract]

Contract with Customer, Asset and Liability [Table Text Block]

Contract Assets and Liabilities. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities as of March 31, 2018 are as follows:

(dollars in millions)	March 31, 2018
Contract assets, current	$	2,989
Contract assets, noncurrent (included within Other assets)	1,088
Total contract assets	4,077
Contract liabilities, current	(5,727		)
Contract liabilities, noncurrent (included within Other long-term liabilities)	(4,881		)
Total contract liabilities	(10,608		)
Net contract liabilities	$	(6,531	)

Under the New Revenue Standard, during the quarter ended March 31, 2018, net contract liabilities increased to $6,531 million. This reflects the establishment of $6,365 million of net contract liabilities upon the adoption, and $7,031 million of advance payments from customers and reclassifications to receivables upon billing during the period. These increases were partially offset by the liquidation of beginning of period contract liabilities of $1,207 million as a result of revenue recognition. These increases were also offset by $5,676 million of revenue recognition within the period, and other less significant changes.