XML 19 R9.htm IDEA: XBRL DOCUMENT v3.23.2
REVENUE RECOGNITION DISAGGREGATION OF REVENUES
6 Months Ended
Jun. 30, 2023
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 arrangements, primarily 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, 2023, was $730 million. We expect to recognize the related revenue of $232 million over the next 12 months and $498 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 millionsJune 30,
2023
December 31,
2022
Unbilled revenue$299 $257 
Deferred revenue1,956 1,848 
We recognized revenue of $178 million and $384 million for the three and six months ended June 30, 2023, compared with $176 million and $416 million for the comparable periods in 2022, 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, 2023 or 2022.
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
 June 30,June 30,
In millions2023202220232022
United States$4,937 $3,788 $9,739 $7,245 
China762 520 1,552 1,173 
India413 311 824 620 
Other international2,526 1,967 4,976 3,933 
Total net sales$8,638 $6,586 $17,091 $12,971 
Segment Revenue
As previously announced, our Components segment reorganized its reporting structure to carve out the electronics business into the newly formed software and electronics business and combined the turbo technologies and fuel systems businesses into the newly formed engine components business. We started reporting results for the reorganized business in the first quarter of 2023 and reflected these changes for prior periods. On May 26, 2023, with the Atmus Filtration Technologies Inc. (Atmus) initial public offering (IPO), we changed the name of our Components' filtration business to Atmus. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information.
Components segment external sales by business were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Axles and brakes$1,249 $— $2,521 $— 
Emission solutions842 767 1,781 1,575 
Atmus341 319 683 627 
Engine components283 223 575 463 
Automated transmissions180 143 358 277 
Software and electronics29 25 49 52 
Total sales$2,924 $1,477 $5,967 $2,994 
Engine segment external sales by market were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Heavy-duty truck$856 $797 $1,716 $1,481 
Medium-duty truck and bus687 620 1,304 1,211 
Light-duty automotive444 425 885 912 
Total on-highway1,987 1,842 3,905 3,604 
Off-highway276 250 610 537 
Total sales$2,263 $2,092 $4,515 $4,141 
As previously announced, due to the indefinite suspension of operations in Russia, we reorganized the regional management structure of our Distribution segment and moved all Commonwealth of Independent States (CIS) sales into the Europe and Africa and Middle East regions. The Russian portion of prior period CIS sales moved to the Europe region. We started to report results for our new regional management structure in the first quarter of 2023 and reflected these changes for historical periods.
Distribution segment external sales by region were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
North America$1,783 $1,491 $3,476 $2,862 
Asia Pacific265 242 504 486 
Europe213 246 407 521 
China112 99 213 181 
Africa and Middle East80 61 142 111 
India63 52 120 100 
Latin America60 56 113 97 
Total sales$2,576 $2,247 $4,975 $4,358 
Distribution segment external sales by product line were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Parts$1,011 $987 $2,063 $1,913 
Power generation609 440 1,100 838 
Engines527 428 983 866 
Service429 392 829 741 
Total sales$2,576 $2,247 $4,975 $4,358 
Power Systems segment external sales by product line were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Power generation$447 $408 $827 $807 
Industrial218 213 407 401 
Generator technologies129 113 239 209 
Total sales$794 $734 $1,473 $1,417