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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
 9 Months Ended
Sep. 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 September 30, 2022, was $695 million. We expect to recognize the related revenue of $125 million over the next 12 months and $570 million over periods up to 10 years. See NOTE 12, "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 millionsSeptember 30,
2022		December 31,
2021
Unbilled revenue$244 $100 
Deferred revenue, primarily extended warranty1,788 1,705 
We recognized revenue of $123 million and $539 million for the three and nine months ended September 30, 2022, compared with $130 million and $432 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 nine months ended September 30, 2022 or October 3, 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 endedNine months ended
In millionsSeptember 30,
2022		October 3,
2021		September 30,
2022		October 3,
2021
United States$4,116 $3,177 $11,361 $9,500 
China601 679 1,774 2,468 
India358 294 978 841 
Other international2,258 1,818 6,191 5,362 
Total net sales$7,333 $5,968 $20,304 $18,171 
Segment Revenue
Engine segment external sales by market were as follows:
Three months endedNine months ended
In millionsSeptember 30,
2022		October 3,
2021		September 30,
2022		October 3,
2021
Heavy-duty truck$751 $662 $2,232 $1,941 
Medium-duty truck and bus583 501 1,794 1,461 
Light-duty automotive465 492 1,377 1,432 
Total on-highway1,799 1,655 5,403 4,834 
Off-highway264 306 801 942 
Total sales$2,063 $1,961 $6,204 $5,776 
Distribution segment external sales by region were as follows:
Three months endedNine months ended
In millionsSeptember 30,
2022		October 3,
2021		September 30,
2022		October 3,
2021
North America$1,512 $1,237 $4,374 $3,631 
Asia Pacific258 236 744 675 
Europe174 143 494 467 
China89 80 270 239 
Africa and Middle East73 74 174 197 
Latin America58 48 155 136 
India55 48 155 138 
Russia(1)
13 86 224 209 
Total sales$2,232 $1,952 $6,590 $5,692 
(1) The Distribution segment is organized and managed by geographic regions. The Russia region contains sales to several countries in the geographic area.
Distribution segment external sales by product line were as follows:
Three months endedNine months ended
In millionsSeptember 30,
2022		October 3,
2021		September 30,
2022		October 3,
2021
Parts$942 $796 $2,855 $2,313 
Engines449 376 1,315 1,058 
Power generation428 437 1,266 1,305 
Service413 343 1,154 1,016 
Total sales$2,232 $1,952 $6,590 $5,692 
Components segment external sales by business were as follows:
Three months endedNine months ended
In millionsSeptember 30,
2022		October 3,
2021		September 30,
2022		October 3,
2021
Emission solutions$748 $699 $2,323 $2,466 
Axles and brakes732 — 732 — 
Filtration322 288 949 892 
Turbo technologies205 177 597 609 
Automated transmissions159 112 436 374 
Electronics and fuel systems54 71 177 286 
Total sales$2,220 $1,347 $5,214 $4,627 
Power Systems segment external sales by product line were as follows:
Three months endedNine months ended
In millionsSeptember 30,
2022		October 3,
2021		September 30,
2022		October 3,
2021
Power generation$425 $395 $1,232 $1,127 
Industrial226 209 627 621 
Generator technologies122 84 331 251 
Total sales$773 $688 $2,190 $1,999