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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
9 Months Ended
Oct. 03, 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 October 3, 2021, was $774 million. We expect to recognize the related revenue of $134 million over the next 12 months and $640 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 millionsOctober 3,
2021
December 31,
2020
Unbilled revenue$104 $114 
Deferred revenue, primarily extended warranty1,642 1,531 
We recognized revenue of $130 million and $410 million for the three and nine months ended October 3, 2021, compared with $84 million and $290 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 nine months ended October 3, 2021 or September 27, 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 endedNine months ended
In millionsOctober 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
United States$3,177 $2,805 $9,500 $7,522 
China679 705 2,468 2,037 
India294 166 841 406 
Other international1,818 1,442 5,362 4,016 
Total net sales$5,968 $5,118 $18,171 $13,981 
Segment Revenue
Engine segment external sales by market were as follows:
Three months endedNine months ended
In millionsOctober 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
Heavy-duty truck$662 $486 $1,941 $1,226 
Medium-duty truck and bus501 389 1,461 1,177 
Light-duty automotive492 502 1,432 975 
Total on-highway1,655 1,377 4,834 3,378 
Off-highway306 240 942 755 
Total sales$1,961 $1,617 $5,776 $4,133 
Distribution segment external sales by region were as follows:
Three months endedNine months ended
In millionsOctober 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
North America$1,237 $1,126 $3,631 $3,409 
Asia Pacific236 195 675 577 
Europe143 153 467 424 
Russia86 41 209 126 
China80 74 239 242 
Africa and Middle East74 47 197 136 
India48 42 138 101 
Latin America48 37 136 108 
Total sales$1,952 $1,715 $5,692 $5,123 
Distribution segment external sales by product line were as follows:
Three months endedNine months ended
In millionsOctober 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
Parts$796 $719 $2,313 $2,155 
Power generation437 415 1,305 1,166 
Engines376 278 1,058 876 
Service343 303 1,016 926 
Total sales$1,952 $1,715 $5,692 $5,123 
Components segment external sales by business were as follows:
Three months endedNine months ended
In millionsOctober 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
Emission solutions$699 $612 $2,466 $1,576 
Filtration288 260 892 715 
Turbo technologies177 163 609 463 
Automated transmissions112 90 374 215 
Electronics and fuel systems71 76 286 223 
Total sales$1,347 $1,201 $4,627 $3,192 
Power Systems segment external sales by product line were as follows:
Three months endedNine months ended
In millionsOctober 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
Power generation$395 $334 $1,127 $827 
Industrial209 167 621 477 
Generator technologies84 66 251 191 
Total sales$688 $567 $1,999 $1,495