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CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME
9 Months Ended
Sep. 30, 2019
Contractors [Abstract]  
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME
NOTE 10. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME
Contract and other deferred assets decreased $298 million in 2019. Our long-term service agreements decreased primarily due to billings of $8,306 million and a net unfavorable change in estimated profitability of $61 million at Aviation and $57 million at Power, offset by revenues recognized of $8,162 million. Our short-term and other service agreements increased due to the timing of revenue recognition ahead of billings primarily at Aviation.
September 30, 2019 (In millions)
Power
Aviation
Renewable Energy
Healthcare and Other
Total
 
 
 
 
 
 
Revenues in excess of billings
$
5,346

$
4,901

$

$

$
10,247

Billings in excess of revenues
(1,560
)
(3,293
)


(4,853
)
Long-term service agreements
3,787

1,607



5,394

Short-term and other service agreements
172

343


290

804

Equipment contract revenues
2,670

93

1,288

324

4,374

Total contract assets
6,628

2,042

1,288

614

10,573

 
 
 
 
 
 
Deferred inventory costs
904

357

1,574

351

3,186

Nonrecurring engineering costs
42

2,107

62

45

2,257

Customer advances and other
1

1,149


(32
)
1,118

Contract and other deferred assets
$
7,576

$
5,655

$
2,924

$
978

$
17,133

December 31, 2018 (In millions)
Power
Aviation
Renewable Energy
Healthcare and Other
Total
 
 
 
 
 
 
Revenues in excess of billings
$
5,368

$
5,412

$

$

$
10,780

Billings in excess of revenues
(1,693
)
(3,297
)


(4,989
)
Long-term service agreements
3,675

2,115



5,790

Short-term and other service agreements
167

272


251

690

Equipment contract revenues
2,761

80

1,174

384

4,400

Total contract assets
6,603

2,468

1,174

635

10,880

 
 
 
 
 
 
Deferred inventory costs
1,003

673

1,267

365

3,309

Nonrecurring engineering costs
43

1,916

85

51

2,095

Customer advances and other

1,146



1,146

Contract and other deferred assets
$
7,650

$
6,204

$
2,525

$
1,052

$
17,431

Progress collections represent cash received from customers under ordinary commercial payment terms in advance of delivery. Progress collections on equipment contracts primarily comprises milestone payments received from customer prior to the manufacture and delivery of customized equipment orders. Other progress collections primarily comprise down payments from customers to reserve production slots for standardized inventory orders such as advance payments from customers when they place orders for wind turbines and blades within our Renewable Energy segment and payments from airframers and airlines for install and spare engines, respectively, within our Aviation segment.

Progress collections and deferred income increased $6 million in 2019 primarily due to milestone payments received primarily at Aviation. These increases were partially offset by the timing of revenue recognition in excess of new collections received, primarily at Power and Renewable Energy.

Revenues recognized for contracts included in liability position at the beginning of the year were $9,565 million and $10,692 million for the nine months ended September 30, 2019 and 2018, respectively.
September 30, 2019 (In millions)
Power
Aviation
Renewable Energy
Healthcare and Other
Total






Progress collections on equipment contracts
$
5,568

$
95

$
1,105

$

$
6,768

Other progress collections
566

4,700

3,297

464

9,026

Total progress collections
6,133

4,795

4,402

464

15,794

Deferred income
40

1,447

290

1,673

3,450

GE Progress collections and deferred income
$
6,174

$
6,241

$
4,692

$
2,137

$
19,245

December 31, 2018 (In millions)











Progress collections on equipment contracts
$
5,536

$
114

$
1,325

$

$
6,975

Other progress collections
691

4,034

3,557

500

8,783

Total progress collections
6,227

4,148

4,883

500

15,758

Deferred income
112

1,338

260

1,770

3,480

GE Progress collections and deferred income
$
6,339

$
5,486

$
5,143

$
2,271

$
19,239