CONTRACT ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

CONTRACT ASSETS AND LIABILITIES

Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract assets and contract liabilities were as follows (in millions):

	March 31, 2024		December 31, 2023
Contract assets	$	14,050	$	13,183
Contract liabilities	8,745		9,190

Contract assets increased $867 million during the quarter ended March 31, 2024, due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the quarter ended March 31, 2024 for which we have not yet billed our customers. There were no significant credit or impairment losses related to our contract assets during the quarters ended March 31, 2024 and March 26, 2023.

Contract liabilities decreased $445 million during the quarter ended March 31, 2024, primarily due to revenue recognized in excess of payments received on these performance obligations. During the quarter ended March 31, 2024, we recognized $2.4 billion of our contract liabilities at December 31, 2023 as revenue. During the quarter ended March 26, 2023, we recognized $2.2 billion of our contract liabilities at December 31, 2022 as revenue.