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REVENUE RECOGNITION DISAGGREGATION OF REVENUES
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Contracts
We have certain arrangements, primarily long-term maintenance agreements, construction contracts, product sales with associated performance obligations extending beyond a year, product sales with lead times extending beyond one year that are non-cancellable or for which the customer incurs a penalty for cancellation and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for these contracts, excluding extended warranty coverage arrangements, as of September 30, 2024, was $3.8 billion. We expect to recognize the related revenue of $2.1 billion over the next 12 months and $1.7 billion over periods up to 10 years. See NOTE 10, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties.
Deferred and Unbilled Revenue
The following is a summary of our unbilled and deferred revenue and related activity:
In millionsSeptember 30,
2024		December 31,
2023
Unbilled revenue$346 $303 
Deferred revenue2,315 2,186 
We recognized revenue of $184 million and $682 million for the three and nine months ended September 30, 2024, compared with $126 million and $510 million for the comparable periods in 2023, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and nine months ended September 30, 2024 or 2023.
Disaggregation of Revenue
Consolidated Revenue
The table below presents our consolidated net sales by geographic area based on the location of the customer:
Three months endedNine months ended
 September 30,September 30,
In millions2024202320242023
United States$4,825 $4,886 $14,729 $14,625 
China727 721 2,197 2,273 
India416 374 1,285 1,198 
Other international2,488 2,450 7,444 7,426 
Total net sales$8,456 $8,431 $25,655 $25,522 
Segment Revenue
As previous announced, beginning in the second quarter of 2024, we realigned certain businesses within our Components segment to be consistent with how our segment manager now monitors performance. We reorganized the businesses to combine the engine components and software and electronics businesses into the newly formed components and software business. In addition, we rebranded our axles and brakes business as drivetrain and braking systems. We began reporting results for these changes within our Components segment effective April 1, 2024, and reflected these changes in the historical periods presented. The change had no impact on our consolidated results.
Components segment external sales by business were as follows:
Three months endedNine months ended
September 30,September 30,
In millions2024202320242023
Drivetrain and braking systems$1,131 $1,177 $3,618 $3,698 
Emission solutions759 803 2,437 2,584 
Components and software249 289 828 913 
Automated transmissions148 187 475 545 
Atmus— 324 289 
(1)
1,007 
Total sales$2,287 $2,780 $7,647 $8,747 
 (1) Included sales through the March 18, 2024, divestiture. See NOTE 14, "ATMUS INITIAL PUBLIC OFFERING (IPO) AND DIVESTITURE," for additional information.
Engine segment external sales by market were as follows:
Three months endedNine months ended
September 30,September 30,
In millions2024202320242023
Heavy-duty truck$781 $885 $2,560 $2,601 
Medium-duty truck and bus806 656 2,336 1,960 
Light-duty automotive400 451 1,292 1,336 
Total on-highway1,987 1,992 6,188 5,897 
Off-highway228 244 735 854 
Total sales$2,215 $2,236 $6,923 $6,751 
Distribution segment external sales by region were as follows:
Three months endedNine months ended
September 30,September 30,
In millions2024202320242023
North America$1,947 $1,719 $5,568 $5,195 
Asia Pacific342 292 937 796 
Europe307 200 830 607 
China118 110 346 323 
Africa and Middle East80 77 194 219 
India77 66 223 186 
Latin America71 55 194 168 
Total sales$2,942 $2,519 $8,292 $7,494 
Distribution segment external sales by product line were as follows:
Three months endedNine months ended
September 30,September 30,
In millions2024202320242023
Power generation$1,088 $601 $2,743 $1,701 
Parts1,000 991 2,985 3,054 
Service453 420 1,305 1,249 
Engines401 507 1,259 1,490 
Total sales$2,942 $2,519 $8,292 $7,494 
Power Systems segment external sales by product line were as follows:
Three months endedNine months ended
September 30,September 30,
In millions2024202320242023
Power generation$499 $420 $1,349 $1,247 
Industrial293 263 809 670 
Generator technologies120 115 350 354 
Total sales$912 $798 $2,508 $2,271