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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
6 Months Ended
Jun. 30, 2022
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 June 30, 2022, was $723 million. We expect to recognize the related revenue of $128 million over the next 12 months and $595 million over periods up to 10 years. See NOTE 11, "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 millionsJune 30,
2022
December 31,
2021
Unbilled revenue$128 $100 
Deferred revenue, primarily extended warranty1,723 1,705 
We recognized revenue of $176 million and $416 million for the three and six months ended June 30, 2022, compared with $133 million and $302 million for the comparable periods in 2021, 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 30, 2022 or July 4, 2021.
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 millionsJune 30,
2022
July 4,
2021
June 30,
2022
July 4,
2021
United States$3,788 $3,263 $7,245 $6,323 
China520 832 1,173 1,789 
India311 217 620 547 
Other international1,967 1,799 3,933 3,544 
Total net sales$6,586 $6,111 $12,971 $12,203 
Segment Revenue
Engine segment external sales by market were as follows:
Three months endedSix months ended
In millionsJune 30,
2022
July 4,
2021
June 30,
2022
July 4,
2021
Heavy-duty truck$797 $666 $1,481 $1,279 
Medium-duty truck and bus620 477 1,211 960 
Light-duty automotive425 466 912 940 
Total on-highway1,842 1,609 3,604 3,179 
Off-highway250 311 537 636 
Total sales$2,092 $1,920 $4,141 $3,815 
Distribution segment external sales by region were as follows:
Three months endedSix months ended
In millionsJune 30,
2022
July 4,
2021
June 30,
2022
July 4,
2021
North America$1,491 $1,228 $2,862 $2,394 
Asia Pacific242 226 486 439 
Europe177 161 320 324 
China99 74 181 159 
Russia75 66 211 123 
Latin America56 48 97 88 
Africa and Middle East55 69 101 123 
India52 41 100 90 
Total sales$2,247 $1,913 $4,358 $3,740 
Distribution segment external sales by product line were as follows:
Three months endedSix months ended
In millionsJune 30,
2022
July 4,
2021
June 30,
2022
July 4,
2021
Parts$987 $763 $1,913 $1,517 
Power generation440 452 838 868 
Engines428 349 866 682 
Service392 349 741 673 
Total sales$2,247 $1,913 $4,358 $3,740 
Components segment external sales by business were as follows:
Three months endedSix months ended
In millionsJune 30,
2022
July 4,
2021
June 30,
2022
July 4,
2021
Emission solutions$767 $801 $1,575 $1,767 
Filtration319 303 627 604 
Turbo technologies195 207 392 432 
Automated transmissions143 147 277 262 
Electronics and fuel systems53 98 123 215 
Total sales$1,477 $1,556 $2,994 $3,280 
Power Systems segment external sales by product line were as follows:
Three months endedSix months ended
In millionsJune 30,
2022
July 4,
2021
June 30,
2022
July 4,
2021
Power generation$408 $381 $807 $732 
Industrial213 233 401 412 
Generator technologies113 85 209 167 
Total sales$734 $699 $1,417 $1,311