CONTRACT ASSETS

A majority of our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets are comprised of the following at December 31:



	2017		2016
Long-term product service agreements ⁽¹⁾	$	1,410	$	1,046
Long-term equipment contract revenue ⁽²⁾	997		703
Total revenue in excess of billings	2,407		1,749
Deferred inventory costs ⁽³⁾	338		218
Contract assets	$	2,745	$	1,967


⁽¹⁾	Reflects revenue earned in excess of billings on our long-term product service agreements.


⁽²⁾	Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment.


⁽³⁾	Represents cost deferral for shipped goods and other costs for which the criteria for revenue recognition has not yet been met.