Revenue (Notes)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

The Company recognizes revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A majority of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract. However, a portion of the Company's revenues are recognized over time as the customer simultaneously receives control as the Company performs work under a contract. For these arrangements, the cost-to-cost input method is used as it best depicts the transfer of control to the customer that occurs as the Company incurs costs.

Disaggregated Revenue

Net revenues by geography and major type of good or service for the three months ended March 31 were as follows:



	Three months ended
In millions	2020		2019
Americas
Equipment	$	1,392.6	$	1,483.2
Services and parts	705.2		661.1
Total Americas	$	2,097.8	$	2,144.3
EMEA
Equipment	$	248.8	$	262.3
Services and parts	115.5		121.5
Total EMEA	$	364.3	$	383.8
Asia Pacific
Equipment	$	111.0	$	192.8
Services and parts	68.2		82.8
Total Asia Pacific	$	179.2	$	275.6

Total net revenues	$	2,641.3	$	2,803.7

Revenue from goods and services transferred to customers at a point in time accounted for approximately 81% and 83% of the Company's revenue for the three months ended March 31, 2020 and 2019, respectively.

Contract Balances

The opening and closing balances of contract assets and contract liabilities arising from contracts with customers for the period ended March 31, 2020 and December 31, 2019 were as follows:



In millions	March 31, 2020		December 31, 2019
Contract assets	$	204.5	$	172.6
Contract liabilities	979.4		941.9

The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets, and customer advances and deposits (contract liabilities) on the Condensed Consolidated Balance Sheet. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Contract assets relate to the conditional right to consideration for any completed performance under the contract when costs are incurred in excess of billings under the percentage-of-completion methodology. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities relate to payments received in advance of performance under the contract or when the Company has a right to consideration that is unconditional before it transfers a good or service to the customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract. During the three months ended March 31, 2020, changes in contract asset and liability balances were not materially impacted by any other factors.

Approximately 29% of the contract liability balance at December 31, 2019 was recognized as revenue during the three months ended March 31, 2020. Additionally, approximately 37% of the contract liability balance at March 31, 2020 was classified as noncurrent and not expected to be recognized as revenue in the next 12 months.