Contract and Other Deferred Assets (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Contract assets

Contract assets are comprised of the following at December 31:

	2018		2017
Long-term product service agreements	$	609	$	589
Long-term equipment contracts (1)	1,085		1,095
Contract assets (total revenue in excess of billings) (2)	1,694		1,684
Deferred inventory costs (3)	179		360
Non-recurring engineering costs	21		—
Contract and other deferred assets	$	1,894	$	2,044

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

⁽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 for which the criteria for revenue recognition has not yet been met.

Contract liabilities are comprised of the following:

	2018		2017
Progress collections	$	1,600	$	1,456
Deferred income	165		319
Progress collections and deferred income (contract liabilities) (1)	$	1,765	$	1,775

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