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Revenues | 9 Months Ended
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Sep. 29, 2018
Revenues |
Revenues | Note 15. Revenues Disaggregation of Revenues Our revenues disaggregated by major product type for the three and nine months ended September 29, 2018 are presented below:
(In millions) |  | Three Months Ended |  | Nine Months Ended
Aircraft | $ | 756 | $ | 2,267
Aftermarket parts and services |  | 377 |  | 1,152
Textron Aviation |  | 1,133 |  | 3,419
Military aircraft and support programs |  | 505 |  | 1,525
Commercial helicopters, parts and services |  | 265 |  | 828
Bell |  | 770 |  | 2,353
Unmanned systems |  | 154 |  | 485
Marine and land systems |  | 87 |  | 248
Simulation, training and other |  | 111 |  | 386
Textron Systems |  | 352 |  | 1,119
Fuel systems and functional components |  | 522 |  | 1,804
Specialized vehicles |  | 408 |  | 1,231
Tools and test equipment |  | — |  | 248
Industrial |  | 930 |  | 3,283
Finance |  | 15 |  | 48
Total revenues | $ | 3,200 | $ | 10,222
Our revenues by customer type and geographic location for the three and nine months ended September 29, 2018 are presented below:
(In millions) |  | Textron Aviation |  | Bell |  | Textron Systems |  | Industrial |  | Finance |  | Total
Three months ended |  |  |  |  |  |  |  |  |  |  |  |
Customer type: |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 1,081 | $ | 258 | $ | 92 | $ | 923 | $ | 15 | $ | 2,369
U.S. Government |  | 52 |  | 512 |  | 260 |  | 7 |  | — |  | 831
Total revenues | $ | 1,133 | $ | 770 | $ | 352 | $ | 930 | $ | 15 | $ | 3,200
Geographic location: |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 740 | $ | 392 | $ | 293 | $ | 435 | $ | 4 | $ | 1,864
International |  | 393 |  | 378 |  | 59 |  | 495 |  | 11 |  | 1,336
Total revenues | $ | 1,133 | $ | 770 | $ | 352 | $ | 930 | $ | 15 | $ | 3,200
Nine months ended |  |  |  |  |  |  |  |  |  |  |  |
Customer type: |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 3,245 | $ | 801 | $ | 326 | $ | 3,262 | $ | 48 | $ | 7,682
U.S. Government |  | 174 |  | 1,552 |  | 793 |  | 21 |  | — |  | 2,540
Total revenues | $ | 3,419 | $ | 2,353 | $ | 1,119 | $ | 3,283 | $ | 48 | $ | 10,222
Geographic location: |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 2,319 | $ | 1,444 | $ | 877 | $ | 1,521 | $ | 18 | $ | 6,179
International |  | 1,100 |  | 909 |  | 242 |  | 1,762 |  | 30 |  | 4,043
Total revenues | $ | 3,419 | $ | 2,353 | $ | 1,119 | $ | 3,283 | $ | 48 | $ | 10,222
Remaining Performance Obligations Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts. These remaining obligations include amounts that have been formally appropriated under contracts with the U.S. Government, and exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At September 29, 2018, we had $8.7 billion in remaining performance obligations of which we expect to recognize revenues of approximately 62% through 2019, an additional 22% through 2021, and the balance thereafter. Contract assets and liabilities Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At September 29, 2018, contract assets and liabilities totaled $408 million and $1.1 billion, respectively. Upon adoption of ASC 606 on December 31, 2017, contract assets and liabilities related to our contracts with customers were $429 million and $1.0 billion, respectively. During the third quarter and first nine months of 2018, we recognized $56 million and $755 million, respectively, in revenues that were included in the contract liability balance at the adoption date. Reconciliation of ASC 606 to Prior Accounting Standards The amount by which each financial statement line item is affected in 2018 as a result of applying the new accounting standard as discussed in Note 2 is presented below:
|  |  | September 29, 2018
(In millions) |  |  |  | As Reported |  | Effect of the adoption of ASC 606 |  | Under Prior Accounting
Consolidated Balance Sheets |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | $ | 1,026 | $ | 187 | $ | 1,213
Inventories |  |  |  | 4,030 |  | 207 |  | 4,237
Other current assets |  |  |  | 706 |  | (418) |  | 288
Property, plant and equipment, net |  |  |  | 2,593 |  | 6 |  | 2,599
Other assets |  |  |  | 1,868 |  | 40 |  | 1,908
Total Manufacturing group assets |  |  |  | 13,582 |  | 22 |  | 13,604
Total assets |  |  |  | 14,669 |  | 22 |  | 14,691
Other current liabilities |  |  |  | 2,310 |  | 147 |  | 2,457
Total Manufacturing group liabilities |  |  |  | 8,225 |  | 147 |  | 8,372
Total liabilities |  |  |  | 9,126 |  | 147 |  | 9,273
Retained earnings |  |  |  | 6,419 |  | (125) |  | 6,294
Total shareholders’ equity |  |  |  | 5,543 |  | (125) |  | 5,418
| Three Months Ended September 29, 2018 | Nine Months Ended September 29, 2018
(In millions, except per share amounts) |  | As Reported |  | Effect of the adoption of ASC 606 |  | Under Prior Accounting |  | As Reported |  | Effect of the adoption of ASC 606 |  | Under Prior Accounting
Consolidated Statements of Operations |  |  |  |  |  |  |  |  |  |  |  |
Manufacturing revenues | $ | 3,185 | $ | 21 | $ | 3,206 | $ | 10,174 | $ | (225) | $ | 9,949
Total revenues |  | 3,200 |  | 21 |  | 3,221 |  | 10,222 |  | (225) |  | 9,997
Cost of sales |  | 2,687 |  | 25 |  | 2,712 |  | 8,489 |  | (178) |  | 8,311
Income from continuing operations before income taxes |  | 628 |  | (4) |  | 624 |  | 1,106 |  | (47) |  | 1,059
Income tax expense |  | 65 |  | (1) |  | 64 |  | 130 |  | (12) |  | 118
Income from continuing operations |  | 563 |  | (3) |  | 560 |  | 976 |  | (35) |  | 941
Net income |  | 563 |  | (3) |  | 560 |  | 976 |  | (35) |  | 941
Basic earnings per share - continuing operations | $ | 2.29 | $ | (0.01) | $ | 2.28 | $ | 3.85 | $ | (0.14) | $ | 3.71
Diluted earnings per share - continuing operations |  | 2.26 |  | (0.01) |  | 2.25 |  | 3.80 |  | (0.14) |  | 3.66
Consolidated Statements of Comprehensive Income |  |  |  |  |  |  |  |  |  |  |  |
Other comprehensive income | $ | 46 | $ | (3) | $ | 43 | $ | 78 | $ | (35) | $ | 43
Comprehensive income |  | 609 |  | (3) |  | 606 |  | 1,054 |  | (35) |  | 1,019
| Nine Months Ended September 29, 2018
(In millions) |  | As Reported |  | Effect of the adoption of ASC 606 |  | Under Prior Accounting
Consolidated Statements of Cash flows |  |  |  |  |  |
Net income | $ | 976 | $ | (35) | $ | 941
Income from continuing operations |  | 976 |  | (35) |  | 941
Deferred income taxes |  | 25 |  | (12) |  | 13
Accounts receivable, net |  | 56 |  | 16 |  | 72
Inventories |  | (190) |  | (29) |  | (219)
Other assets |  | (28) |  | (12) |  | (40)
Other liabilities |  | (80) |  | 72 |  | (8)
Net cash provided by operating activities of continuing operations |  | 697 |  | — |  | 697

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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