Contract and Other Deferred Assets

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Contract and Other Deferred Assets

CONTRACT AND OTHER DEFERRED ASSETS

Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, provide long-term product service and maintenance or extended warranty arrangements and other deferred contract related costs. Our long-term product service agreements are provided by our IET segment. Our long-term equipment contracts are provided by both our IET and OFSE segments. Contract assets are comprised of the following at December 31:

	2022		2021
Long-term product service agreements	$	392	$	589
Long-term equipment contracts and certain other service agreements	955		825
Contract assets (total revenue in excess of billings)	1,347		1,414
Deferred inventory costs	125		156
Non-recurring engineering costs	31		28
Contract and other deferred assets	$	1,503	$	1,598

Revenue recognized during the years ended December 31, 2022 and 2021 from performance obligations satisfied (or partially satisfied) in previous years related to our long-term service agreements was $20 million and $14 million, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.