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Revenue Recognition
 6 Months Ended
Mar. 31, 2024
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,
20242023
Products & SystemsServicesTotalProducts & SystemsServicesTotal
Building Solutions North America$1,700 $1,039 $2,739 $1,554 $966 $2,520 
Building Solutions EMEA/LA572 492 1,064 582 449 1,031 
Building Solutions Asia Pacific308 183 491 479 188 667 
Global Products2,405 — 2,405 2,468 — 2,468 
Total$4,985 $1,714 $6,699 $5,083 $1,603 $6,686 

Six Months Ended March 31,
20242023
Products & SystemsServicesTotalProducts & SystemsServicesTotal
Building Solutions North America$3,218 $2,008 $5,226 $3,005 $1,882 $4,887 
Building Solutions EMEA/LA1,144 958 2,102 1,134 872 2,006 
Building Solutions Asia Pacific645 353 998 952 361 1,313 
Global Products4,467 — 4,467 4,548 — 4,548 
Total$9,474 $3,319 $12,793 $9,639 $3,115 $12,754 

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,
2024202320242023
HVAC$1,683 $1,757 $3,101 $3,197 
Fire & Security607 623 1,154 1,193 
Industrial Refrigeration115 88 212 158 
Total$2,405 $2,468 $4,467 $4,548 
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, 2024September 30, 2023
Contract assets - currentAccounts receivable - net$2,063 $2,370 
Contract assets - noncurrentOther noncurrent assets5 12 
Contract liabilities - currentDeferred revenue2,331 1,996 
Contract liabilities - noncurrentOther noncurrent liabilities310 297 

For the three months ended March 31, 2024 and 2023, the Company recognized revenue of $372 million and $319 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year. For the six months ended March 31, 2024 and 2023, the Company recognized revenue of $1,261 million and $1,165 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

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, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $21.2 billion, of which approximately 66% 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 the Company expects 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, 2024September 30, 2023
Other current assets$204 $156 
Other noncurrent assets263 224 
Total$467 $380 

During the three months ended March 31, 2024 and 2023, the Company recognized amortization expense of $77 million and $61 million, respectively, related to costs to obtain or fulfill a contract. During the six months ended March 31, 2024 and 2023, the Company recognized amortization expense of $134 million and $122 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, 2024 and 2023.