Revenue Recognition Contract Asset & Liability (Tables)

3 Months Ended

Mar. 31, 2019

Contract Asset and Liability [Abstract]

Contract with Customer, Asset and Liability [Table Text Block]

Contract Assets and Liabilities. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities as of March 31, 2019 and December 31, 2018 are as follows:

(dollars in millions)	March 31, 2019			December 31, 2018
Contract assets, current	$	3,795		$	3,486
Contract assets, noncurrent (included within Other assets)	1,209			1,142
Total contract assets	5,004			4,628
Contract liabilities, current	(6,107		)	(5,720		)
Contract liabilities, noncurrent (included within Other long-term liabilities)	(5,166		)	(5,069		)
Total contract liabilities	(11,273		)	(10,789		)
Net contract liabilities	$	(6,269	)	$	(6,161	)

Contract assets increased$376 million during the quarter ended March 31, 2019 primarily due to revenue recognition in excess of customer billings, primarily on Pratt & Whitney commercial aftermarket and military engines contracts and various programs at Collins Aerospace Systems. Contract liabilities increased$484 million during the quarter ended March 31, 2019 primarily due to customer billings in excess of revenue on Otis maintenance contracts and on certain Pratt & Whitney commercial aftermarket contracts. We recognized revenue of $2.0 billion during the quarter ended March 31, 2019 related to contract liabilities as of December 31, 2018.