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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
 6 Months Ended
Jul. 04, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Contracts
The majority 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 were not satisfied as of July 4, 2021, was $812 million. We expect to recognize the related revenue of $164 million over the next 12 months and $648 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 millionsJuly 4,
2021		December 31,
2020
Unbilled revenue$109 $114 
Deferred revenue, primarily extended warranty1,633 1,531 
We recognized revenue of $126 million and $280 million for the three and six months ended July 4, 2021, compared with $94 million and $206 million for the comparable periods in 2020, 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 July 4, 2021 or June 28, 2020.
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 endedSix months ended
In millionsJuly 4,
2021		June 28,
2020		July 4,
2021		June 28,
2020
United States$3,263 $1,865 $6,323 $4,717 
China832 810 1,789 1,332 
India217 70 547 240 
Other international1,799 1,107 3,544 2,574 
Total net sales$6,111 $3,852 $12,203 $8,863 
Segment Revenue
Engine segment external sales by market were as follows:
Three months endedSix months ended
In millionsJuly 4,
2021		June 28,
2020		July 4,
2021		June 28,
2020
Heavy-duty truck$666 $221 $1,279 $740 
Medium-duty truck and bus477 298 960 788 
Light-duty automotive466 146 940 473 
Total on-highway1,609 665 3,179 2,001 
Off-highway311 272 636 515 
Total sales$1,920 $937 $3,815 $2,516 
Distribution segment external sales by region were as follows:
Three months endedSix months ended
In millionsJuly 4,
2021		June 28,
2020		July 4,
2021		June 28,
2020
North America$1,228 $1,038 $2,394 $2,283 
Asia Pacific226 190 439 382 
Europe161 136 324 271 
China74 100 159 168 
Africa and Middle East69 38 123 89 
Russia66 44 123 85 
Latin America48 32 88 71 
India41 23 90 59 
Total sales$1,913 $1,601 $3,740 $3,408 
Distribution segment external sales by product line were as follows:
Three months endedSix months ended
In millionsJuly 4,
2021		June 28,
2020		July 4,
2021		June 28,
2020
Parts$763 $653 $1,517 $1,436 
Power generation452 376 868 751 
Engines349 276 682 598 
Service349 296 673 623 
Total sales$1,913 $1,601 $3,740 $3,408 
Components segment external sales by business were as follows:
Three months endedSix months ended
In millionsJuly 4,
2021		June 28,
2020		July 4,
2021		June 28,
2020
Emission solutions$801 $394 $1,767 $964 
Filtration303 206 604 455 
Turbo technologies207 142 432 300 
Automated transmissions147 43 262 125 
Electronics and fuel systems98 91 215 147 
Total sales$1,556 $876 $3,280 $1,991 
Power Systems segment external sales by product line were as follows:
Three months endedSix months ended
In millionsJuly 4,
2021		June 28,
2020		July 4,
2021		June 28,
2020
Power generation$381 $224 $732 $493 
Industrial233 145 412 310 
Generator technologies85 59 167 125 
Total sales$699 $428 $1,311 $928