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Revenue | 3 Months Ended
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Dec. 31, 2019
Revenue |
Revenue | Note 3. Revenue Sales of Products Revenue from manufactured products and from maintenance, repair and overhaul (“MRO”) represented 87% and 12%, respectively, of Woodward’s net sales for the three-months ended December 31, 2019, and 87% and 11%, respectively, of Woodward’s net sales for the three-months ended December 31, 2018. The amount of revenue recognized as point in time or over time follows:
| Three-Months Ended December 31, 2019 |  | Three-Months Ended December 31, 2018
| Aerospace |  | Industrial |  | Consolidated |  | Aerospace |  | Industrial |  | Consolidated
Point in time | $ | 187,515 |  | $ | 167,942 |  | $ | 355,457 |  | $ | 164,014 |  | $ | 172,162 |  | $ | 336,176
Over time |  | 286,410 |  |  | 78,488 |  |  | 364,898 |  |  | 228,873 |  |  | 87,762 |  |  | 316,635
Total net sales | $ | 473,925 |  | $ | 246,430 |  | $ | 720,355 |  | $ | 392,887 |  | $ | 259,924 |  | $ | 652,811
Contract assets Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in “Accounts receivable” in Woodward’s Condensed Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms, which are generally tied to shipment of the products to the customer, or as work progresses in accordance with contractual terms. Billed accounts receivable are typically due within 60 days. Unbilled amounts arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require revenue to be recognized over time rather than at a point in time. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Woodward’s contracts with customers generally have no financing components. Accounts receivable consisted of the following:
|  | December 31, 2019 |  | September 30, 2019
Billed receivables |  |  |  |  |  |
Trade accounts receivable |  | $ | 354,152 |  | $ | 381,942
Other (Chinese financial institutions) |  |  | 16,635 |  |  | 42,171
Less: Allowance for uncollectible amounts |  |  | (3,813) |  |  | (7,908)
Net billed receivables |  |  | 366,974 |  |  | 416,205
Current unbilled receivables (contract assets), net |  |  | 205,469 |  |  | 175,324
Total accounts receivable, net |  | $ | 572,443 |  | $ | 591,529
In addition, as of December 31, 2019 “Other assets” on the Condensed Consolidated Balance Sheets includes $1,562 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $1,573 as of September 30, 2019. Contract liabilities Contract liabilities consisted of the following:
|  | December 31, 2019 |  | September 30, 2019
|  |  | Current |  |  | Noncurrent |  |  | Current |  |  | Noncurrent
Deferred revenue from material rights from GE joint venture formation |  | $ | 8,186 |  | $ | 229,011 |  | $ | 8,317 |  | $ | 230,588
Deferred revenue from advance invoicing and/or prepayments from customers |  |  | 4,200 |  |  | 139 |  |  | 4,554 |  |  | 141
Liability related to customer supplied inventory |  |  | 10,298 |  |  | - |  |  | 13,396 |  |  | -
Deferred revenue from material rights related to engineering and development funding |  |  | 2,277 |  |  | 111,858 |  |  | 1,624 |  |  | 106,436
Net contract liabilities |  | $ | 24,961 |  | $ | 341,008 |  | $ | 27,891 |  | $ | 337,165
Woodward recognized revenue of $3,970 in the three-months ended December 31, 2019 from contract liabilities balances recorded as of October 1, 2019, compared to $9,760 in the three-months ended December 31, 2018 from contract liabilities balances recorded as of October 1, 2018. Remaining performance obligations Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of December 31, 2019 was $1,562,813, compared to $1,527,437 as of September 30, 2019 the majority of which relate to Woodward’s Aerospace segment. Woodward expects to recognize almost all of these remaining performance obligations within two year s after December 31, 2019. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of December 31, 2019 was $434,437, of which $9,781 is expected to be recognized in the remainder of fiscal year 2020, $11,204 is expected to be recognized in fiscal year 2021, and the balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty year s. Disaggregation of Revenue Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market and by geographical area as Woodward believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows:
| Three-Months Ended December 31,
| 2019 |  | 2018
Commercial OEM | $ | 158,666 |  | $ | 140,508
Commercial aftermarket |  | 125,928 |  |  | 111,348
Defense OEM |  | 140,926 |  |  | 101,836
Defense aftermarket |  | 48,405 |  |  | 39,195
Total Aerospace segment net sales | $ | 473,925 |  | $ | 392,887
Revenue by primary market for the Industrial reportable segment was as follows:
| Three-Months Ended December 31,
| 2019 |  | 2018
Reciprocating engines | $ | 174,653 |  | $ | 196,130
Industrial turbines |  | 51,500 |  |  | 49,512
Renewables |  | 20,277 |  |  | 14,282
Total Industrial segment net sales | $ | 246,430 |  | $ | 259,924
The customers who account for approximately 10% or more of net sales to each of Woodward’s reportable segments for the three-months ended December 31, 2019 are as follows:
| Customer
Aerospace | The Boeing Company, General Electric Company, United Technologies Corporation
Industrial | Rolls-Royce PLC, Weichai Westport
Net sales by geographic area, as determined based on the location of the customer, were as follows:
| Three-Months Ended December 31, 2019 |  | Three-Months Ended December 31, 2018
| Aerospace |  | Industrial |  | Consolidated |  | Aerospace |  | Industrial |  | Consolidated
United States | $ | 363,912 |  | $ | 51,092 |  | $ | 415,004 |  | $ | 286,745 |  | $ | 49,892 |  | $ | 336,637
Germany |  | 17,278 |  |  | 51,438 |  |  | 68,716 |  |  | 12,749 |  |  | 63,364 |  |  | 76,113
Europe, excluding Germany |  | 38,987 |  |  | 50,501 |  |  | 89,488 |  |  | 39,612 |  |  | 59,348 |  |  | 98,960
China |  | 10,212 |  |  | 53,876 |  |  | 64,088 |  |  | 15,638 |  |  | 50,251 |  |  | 65,889
Asia, excluding China |  | 6,981 |  |  | 31,912 |  |  | 38,893 |  |  | 8,368 |  |  | 29,167 |  |  | 37,535
Other countries |  | 36,555 |  |  | 7,611 |  |  | 44,166 |  |  | 29,775 |  |  | 7,902 |  |  | 37,677
Total net sales | $ | 473,925 |  | $ | 246,430 |  | $ | 720,355 |  | $ | 392,887 |  | $ | 259,924 |  | $ | 652,811

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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