REVENUE RECOGNITION DISAGGREGATION OF REVENUES

6 Months Ended

Jun. 28, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

NOTE 3. REVENUE RECOGNITION

Long-term Contracts

Most of our contracts are for a period of less than one year. We have certain long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that had not been satisfied as of June 28, 2020, was $939 million. We expect to recognize the related revenue of $231 million over the next 12 months and $708 million over periods up to 10 years. See Note 10, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties.

Deferred and Unbilled Revenue

The following is a summary of our unbilled and deferred revenue and related activity:

In millions	June 28, 2020		December 31, 2019
Unbilled revenue	$	76	$	68
Deferred revenue, primarily extended warranty	1,352		1,354

We recognized revenue of $94 million and $206 million for the three and six months ended June 28, 2020, compared with $94 million and $203 million for the comparable periods in 2019, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 28, 2020 or June 30, 2019.

Disaggregation of Revenue

Consolidated Revenue

The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer.

	Three months ended				Six months ended
In millions	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
United States	$	1,865	$	3,611	$	4,717	$	7,047
China	810		644		1,332		1,217
India	70		234		240		458
Other international	1,107		1,732		2,574		3,503
Total net sales	$	3,852	$	6,221	$	8,863	$	12,225

Segment Revenue

Engine segment external sales by market were as follows:

	Three months ended				Six months ended
In millions	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Heavy-duty truck	$	221	$	754	$	740	$	1,477
Medium-duty truck and bus	298		630		788		1,240
Light-duty automotive	146		435		473		765
Total on-highway	665		1,819		2,001		3,482
Off-highway	272		254		515		575
Total sales	$	937	$	2,073	$	2,516	$	4,057

Distribution segment external sales by region were as follows:

	Three months ended				Six months ended
In millions	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
North America	$	1,038	$	1,374	$	2,283	$	2,766
Asia Pacific	190		223		382		443
Europe	136		122		271		245
China	100		101		168		182
Russia	44		45		85		80
Africa and Middle East	38		55		89		110
Latin America	32		46		71		86
India	23		49		59		96
Total sales	$	1,601	$	2,015	$	3,408	$	4,008

Distribution segment external sales by product line were as follows:

	Three months ended				Six months ended
In millions	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Parts	$	653	$	827	$	1,436	$	1,668
Power generation	376		425		751		826
Service	296		371		623		733
Engines	276		392		598		781
Total sales	$	1,601	$	2,015	$	3,408	$	4,008

Components segment external sales by business were as follows:

	Three months ended				Six months ended
In millions	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Emission solutions	$	394	$	735	$	964	$	1,484
Filtration	206		263		455		522
Turbo technologies	142		181		300		371
Electronics and fuel systems	91		66		147		120
Automated transmissions	43		156		125		305
Total sales	$	876	$	1,401	$	1,991	$	2,802

Power Systems segment external sales by product line were as follows:

	Three months ended				Six months ended
In millions	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Power generation	$	224	$	380	$	493	$	688
Industrial	145		246		310		477
Generator technologies	59		98		125		182
Total sales	$	428	$	724	$	928	$	1,347