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Revenue Recognition
 6 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregated Revenue

The following tables present the Company's revenues disaggregated by segment and by Products & Systems and Services revenue (in millions):
Three Months Ended March 31,
20232022
Products & SystemsServicesTotalProducts & SystemsServicesTotal
Building Solutions North America$1,554 $966 $2,520 $1,343 $884 $2,227 
Building Solutions EMEA/LA582 449 1,031 536 422 958 
Building Solutions Asia Pacific479 188 667 448 175 623 
Global Products2,468 — 2,468 2,290 — 2,290 
Total$5,083 $1,603 $6,686 $4,617 $1,481 $6,098 



Six Months Ended March 31,
20232022
Products & SystemsServicesTotalProducts & SystemsServicesTotal
Building Solutions North America$3,005 $1,882 $4,887 $2,642 $1,737 $4,379 
Building Solutions EMEA/LA1,134 872 2,006 1,080 837 1,917 
Building Solutions Asia Pacific952 361 1,313 949 349 1,298 
Global Products4,548 — 4,548 4,366 — 4,366 
Total$9,639 $3,115 $12,754 $9,037 $2,923 $11,960 


The following table presents further disaggregation of Global Products segment revenues by product type (in millions):
Three Months Ended
March 31,		Six Months Ended
March 31,
2023202220232022
HVAC$1,757 $1,658 $3,197 $3,141 
Fire & Security623 578 1,193 1,122 
Industrial Refrigeration88 54 158 103 
Total$2,468 $2,290 $4,548 $4,366 

Contract Balances

Contract assets relate to the Company’s right to consideration for performance obligations satisfied but not billed. Contract liabilities relate to customer payments received in advance of satisfaction of performance obligations under the contract. Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. 
The following table presents the location and amount of contract balances in the Company's consolidated statements of financial position (in millions):
Location of contract balancesMarch 31, 2023September 30, 2022
Contract assets - currentAccounts receivable - net$2,026 $2,020 
Contract assets - noncurrentOther noncurrent assets81 79 
Contract liabilities - currentDeferred revenue1,939 1,768 
Contract liabilities - noncurrentOther noncurrent liabilities292 282 

For the three months ended March 31, 2023 and 2022, the Company recognized revenue of $319 million and $308 million, respectively, that was included in the beginning of period contract liability balance. For the six months ended March 31, 2023 and 2022, the Company recognized revenue of $1,165 million and $1,059 million, respectively, that was included in the beginning of period contract liability balance

Performance Obligations

A performance obligation is a distinct good, service, or a bundle of goods and services promised in a contract. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When contracts with customers require significant and complex integration, contain goods or services which are highly interdependent or interrelated, or are goods or services which significantly modify or customize other promises in the contracts and, therefore, are not distinct, then the entire contract is accounted for as a single performance obligation. For any contracts with multiple performance obligations, the contract’s transaction price is allocated to each performance obligation based on the estimated relative standalone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation.

Performance obligations are satisfied at a point in time or over time. The timing of satisfying the performance obligation is typically stipulated by the terms of the contract. As of March 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $18.8 billion, of which approximately 65% is expected to be recognized as revenue over the next two years. The remaining performance obligations expected to be recognized in revenue beyond two years primarily relate to large, multi-purpose contracts to construct hospitals, schools and other governmental buildings, which include services to be performed over the building's lifetime, with initial contract terms of 25 to 35 years. Future contract modifications could affect both the timing and the amount of the remaining performance obligations. The Company excludes the value of remaining performance obligations for service contracts with an original expected duration of one year or less.

Costs to Obtain or Fulfill a Contract

The Company recognizes the incremental costs incurred to obtain or fulfill a contract with a customer as an asset when these costs are recoverable. These costs consist primarily of sales commissions and design costs that relate to a contract or an anticipated contract that we expect to recover. Costs to obtain or fulfill a contract are capitalized and amortized over the period of contract performance.

The following table presents the location and amount of costs to obtain or fulfill a contract recorded in the Company's consolidated statements of financial position (in millions):

March 31, 2023September 30, 2022
Other current assets$154 $139 
Other noncurrent assets200 174 
Total$354 $313 
During the three months ended March 31, 2023 and 2022, the Company recognized amortization expense of $61 million and $47 million, respectively, related to costs to obtain or fulfill a contract. During the six months ended March 31, 2023 and 2022, the Company recognized amortization expense of $122 million and $97 million, respectively, related to costs to obtain or fulfill a contract. There were no impairment losses recognized in the three and six months ended March 31, 2023 and 2022.