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Contract and Other Deferred Assets
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Contract and Other Deferred Assets CONTRACT AND OTHER DEFERRED ASSETS
Our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following:
September 30, 2022December 31, 2021
Long-term product service agreements $408 $589 
Long-term equipment contracts (1)
965 825 
Contract assets (total revenue in excess of billings)1,373 1,414 
Deferred inventory costs124 156 
Non-recurring engineering costs29 28 
Contract and other deferred assets$1,526 $1,598 
(1)Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.
Revenue recognized during the three months ended September 30, 2022 and 2021 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $2 million and $9 million, respectively, and $14 million and $18 million during the nine months ended September 30, 2022 and 2021, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.