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Revenue Recognition
 3 Months Ended
Dec. 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 December 31,
20242023
Products & SystemsServicesTotalProducts & SystemsServicesTotal
Building Solutions North America$1,695 $1,049 $2,744 $1,518 $969 $2,487 
Building Solutions EMEA/LA574 499 1,073 572 466 1,038 
Building Solutions Asia Pacific334 193 527 337 170 507 
Global Products1,082 — 1,082 1,177 — 1,177 
Total$3,685 $1,741 $5,426 $3,604 $1,605 $5,209 

The following table presents further disaggregation of Global Products segment revenues by product type (in millions):
Three Months Ended
December 31,
20242023
HVAC$468 $533 
Fire & Security522 547 
Industrial Refrigeration92 97 
Total$1,082 $1,177 

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 balancesDecember 31, 2024September 30, 2024
Contract assets - currentAccounts receivable - net$1,917 $1,931 
Contract assets - noncurrentOther noncurrent assets6 11 
Contract liabilities - currentDeferred revenue2,211 2,160 
Contract liabilities - noncurrentOther noncurrent liabilities253 252 

For the three months ended December 31, 2024 and 2023, the Company recognized revenue of $878 million and $839 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 December 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $20.9 billion, of which approximately 64% 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 construction contracts, 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 and contracts that are cancellable without substantial penalty.

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):

December 31, 2024September 30, 2024
Other current assets$276 $265 
Other noncurrent assets284 291 
Total$560 $556 

During the three months ended December 31, 2024 and 2023, the Company recognized expense of $84 million and $57 million, respectively, related to costs to obtain or fulfill a contract. There were no impairment losses recognized in the three months ended December 31, 2024 and 2023.