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Contract Assets and Liabilities
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Contract Assets and Liabilities
Note 7: Contract Assets and Liabilities
Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billings. 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 were as follows:
(dollars in millions)March 31, 2025December 31, 2024
Contract assets, net$15,241 $14,570 
Contract liabilities(19,038)(18,616)
Net contract liabilities$(3,797)$(4,046)
Contract assets, net, increased $0.7 billion during the quarter ended March 31, 2025 primarily due to sales in excess of billings on certain contracts at Pratt & Whitney. Contract liabilities increased $0.4 billion during the quarter ended March 31, 2025 primarily due to advances received and billings in excess of sales on certain contracts at Pratt & Whitney. We recognized revenue of $3.0 billion during the quarter ended March 31, 2025 related to contract liabilities outstanding as of January 1, 2025 and recognized revenue of $2.6 billion during the quarter ended March 31, 2024, related to contract liabilities outstanding as of January 1, 2024.
Contract assets are net of an allowance for expected credit losses of $510 million and $491 million as of March 31, 2025 and December 31, 2024, respectively.
Note 19: Remaining Performance Obligations (RPO)
RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. Total RPO was approximately $217 billion as of March 31, 2025. Of the total RPO as of March 31, 2025, we expect approximately 25% will be recognized as revenue over the next 12 months. Approximately 45% of our RPO relates to long-term commercial aerospace maintenance contracts at Pratt & Whitney, which are generally expected to be realized over a span of up to 20 years.