CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

3 Months Ended

Mar. 31, 2021

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 increased $153 million in the three months ended March 31, 2021 primarily due to the timing of revenue recognition ahead of billing milestones on our long-term equipment contracts. Our long-term service agreements decreased primarily due to billings of $2,232 million, offset by revenues recognized of $2,118 million, a net favorable change in estimated profitability of $31 million at Aviation and a net unfavorable change in estimated profitability of $8 million at Power.


March 31, 2021	Power		Aviation		Renewable Energy		Healthcare		Other		Total
Revenues in excess of billings	$	5,223	$	2,911	$	—	$	—	$	—	$	8,134
Billings in excess of revenues	(1,541)		(5,347)		—		—		—		(6,888)
Long-term service agreements	$	3,682	$	(2,436)	$	—	$	—	$	—	$	1,246
Short-term and other service agreements	139		342		109		164		16		769
Equipment contract revenues	2,024		36		1,239		289		217		3,805
Current contract assets	$	5,845	$	(2,058)	$	1,348	$	454	$	232	$	5,821

Nonrecurring engineering costs	13		2,436		33		29		—		2,511
Customer advances and other	783		2,570		—		122		—		3,474
Non-current contract and other deferred assets	$	796	$	5,005	$	33	$	151	$	—	$	5,985
Total contract and other deferred assets	$	6,641	$	2,948	$	1,381	$	604	$	233	$	11,806


December 31, 2020
Revenues in excess of billings	$	5,282	$	3,072	$	—	$	—	$	—	$	8,354
Billings in excess of revenues	(1,640)		(5,375)		—		—		—		(7,015)
Long-term service agreements	$	3,642	$	(2,304)	$	—	$	—	$	—	$	1,338
Short-term and other service agreements	129		282		106		173		29		719
Equipment contract revenues	2,015		59		1,127		306		201		3,707
Current contract assets	$	5,786	$	(1,963)	$	1,233	$	479	$	229	$	5,764

Nonrecurring engineering costs	16		2,409		34		31		—		2,490
Customer advances and other	822		2,481		—		128		(32)		3,398
Non-current contract and other deferred assets	$	838	$	4,889	$	34	$	159	$	(32)	$	5,888
Total contract and other deferred assets	$	6,623	$	2,927	$	1,268	$	638	$	197	$	11,653

Progress collections and deferred income decreased $431 million primarily due to the timing of revenue recognition in excess of new collections received, primarily at Aviation and Power. Revenues recognized for contracts included in a liability position at the beginning of the year were $5,909 million and $4,137 million for the three months ended March 31, 2021 and 2020, respectively.


March 31, 2021	Power		Aviation		Renewable Energy		Healthcare		Other		Total
Progress collections on equipment contracts	$	4,829	$	197	$	1,388	$	—	$	—	$	6,414
Other progress collections	371		4,483		4,343		416		121		9,735

Current deferred income	16		122		219		1,392		95		1,844
Progress collections and deferred income	$	5,217	$	4,802	$	5,949	$	1,808	$	217	$	17,993
Non-current deferred income	118		855		211		555		9		1,748
Total Progress collections and deferred income	$	5,335	$	5,657	$	6,160	$	2,363	$	226	$	19,741


December 31, 2020
Progress collections on equipment contracts	$	4,918	$	214	$	1,229	$	—	$	—	$	6,362
Other progress collections	458		4,623		4,604		414		152		10,252

Current deferred income	17		132		194		1,309		105		1,757
Progress collections and deferred income	$	5,393	$	4,969	$	6,028	$	1,724	$	257	$	18,371
Non-current deferred income	116		898		214		564		10		1,801
Total Progress collections and deferred income	$	5,509	$	5,867	$	6,241	$	2,288	$	267	$	20,172