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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 3. 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 December 31, 2022, was $663 million. We expect to recognize the related revenue of $123 million over the next 12 months and $540 million over periods up to 10 years. See NOTE 14,"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:
Years ended December 31,
In millions20222021
Unbilled revenue$257 $100 
Deferred revenue, primarily extended warranty1,848 1,705 
We recognized revenue of $639 million and $509 million in 2022 and 2021, respectively, 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 2022 or 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.
Years ended December 31,
In millions202220212020
United States$15,552 $12,489 $10,605 
China2,390 3,169 2,832 
India1,392 1,133 680 
Other international8,740 7,230 5,694 
Total net sales$28,074 $24,021 $19,811 
Segment Revenue
Engine segment external sales by market were as follows:
Years ended December 31,
In millions202220212020
Heavy-duty truck$2,995 $2,511 $1,800 
Medium-duty truck and bus2,412 1,978 1,629 
Light-duty automotive1,704 1,845 1,441 
Total on-highway7,111 6,334 4,870 
Off-highway1,088 1,255 1,055 
Total sales$8,199 $7,589 $5,925 
Components segment external sales by business were as follows:
Years ended December 31,
In millions202220212020
Emission solutions$3,086 $3,142 $2,352 
Axles and brakes1,879 — — 
Filtration1,259 1,171 1,005 
Turbo technologies806 787 673 
Automated transmissions593 481 303 
Electronics and fuel systems224 351 317 
Total sales$7,847 $5,932 $4,650 
Distribution segment external sales by region were as follows:
Years ended December 31,
In millions202220212020
North America$5,948 $4,902 $4,688 
Asia Pacific1,011 901 799 
Europe705 647 597 
China351 323 340 
Africa and Middle East227 259 198 
Commonwealth of Independent States232 334 191 
India217 194 150 
Latin America210 182 147 
Total sales$8,901 $7,742 $7,110 
Distribution segment external sales by product line were as follows:
Years ended December 31,
In millions202220212020
Parts$3,809 $3,136 $2,921 
Engines1,770 1,493 1,245 
Power generation1,767 1,754 1,686 
Service1,555 1,359 1,258 
Total sales$8,901 $7,742 $7,110 
Power Systems segment external sales by product line were as follows:
Years ended December 31,
In millions202220212020
Power generation$1,658 $1,481 $1,155 
Industrial843 820 638 
Generator technologies450 349 262 
Total sales$2,951 $2,650 $2,055