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CONTRACT ASSETS AND CONTRACT LIABILITIES
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
CONTRACT ASSETS AND CONTRACT LIABILITIES CONTRACT ASSETS AND CONTRACT LIABILITIES
Contract assets include unbilled amounts resulting from sales under long-term contracts where revenue is recognized over time and revenue exceeds the amount that can be billed to the customer based on the terms of the contract. The current portion of the contract assets are classified as current assets under the caption “Unbilled accounts receivable” while the noncurrent contract assets are classified as other assets under the caption "Other noncurrent assets" on the Consolidated Balance Sheets. Noncurrent contract assets were $153 million and $101 million at December 31, 2021 and 2020, respectively. Included in noncurrent contract assets are certain costs that are specifically related to a contract, however, do not directly contribute to the transfer of control of the tangible product being created, such as pre-production costs. The Company has elected to use the practical expedient and not consider unbilled amounts anticipated to be paid within one year as significant financing components.
Contract liabilities include customer deposits that are made prior to the incurrence of costs related to a newly agreed upon contract and advanced customer payments that are in excess of revenue recognized. The current portion of contract liabilities are classified as current liabilities under the caption “Customer deposits” while the noncurrent contract liabilities are classified as noncurrent liabilities under the caption "Other long-term liabilities" on the Consolidated Balance Sheets. Noncurrent contract liabilities were $88 million and $80 million at December 31, 2021 and 2020, respectively. These contract liabilities are not considered a significant financing component because they are used to meet working capital demands that can be higher in the early stages of a contract and revenue associated with the contract liabilities is expected to be recognized within one year. Contract liabilities also include provisions for estimated losses from uncompleted contracts. Provisions for loss contracts were $107 million and $109 million at December 31, 2021 and 2020, respectively. These provisions for estimated losses are classified as current liabilities and included within the caption “Other accrued liabilities” on the Consolidated Balance Sheets.
The following table reconciles the changes in the Company’s contract assets and liabilities as follows:
Contract Assets
In millions20212020
Balance at beginning of year$544 $623 
Acquisitions— 4 
Recognized in current year617 850 
Reclassified to accounts receivable(602)(950)
Foreign currency impact(14)17 
Balance at end of year$545 $544 
Contract Liabilities
In millions20212020
Balance at beginning of year$832 $800 
Acquisitions2 7 
Recognized in current year740 872 
Amounts in beginning balance reclassified to revenue(463)(532)
Current year amounts reclassified to revenue(273)(326)
Foreign currency impact(14)11 
Balance at end of year$824 $832