Contract and Other Deferred Assets (Tables)

9 Months Ended

Sep. 30, 2018

Deferred Revenue Disclosure [Abstract]

Contract assets

Contract assets are comprised of the following:

	September 30, 2018		December 31, 2017
Long-term product service agreements	$	608	$	589
Long-term equipment contract revenue (1)	1,127		1,095
Contract assets (total revenue in excess of billings) (2)	1,735		1,684
Deferred inventory costs (3)	251		360
Non-recurring engineering costs	15		—
Contract and other deferred assets	$	2,001	$	2,044

⁽¹⁾  Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment.

⁽²⁾  Contract assets (total revenue in excess of billings) were $1,233 million as of January 1, 2017.

⁽³⁾  Deferred inventory costs were $276 million as of January 1, 2017, which represents cost deferral for shipped goods and other costs where the criteria for revenue recognition has not yet been met.

Contract liabilities are comprised of the following:

	September 30, 2018		December 31, 2017
Progress collections	$	1,433	$	1,456
Deferred income	154		319
Progress collections and deferred income (contract liabilities) (1)	$	1,587	$	1,775

⁽¹⁾  Progress collections and deferred income (contract liabilities) were $2,038 million at January 1, 2017.