Revenue

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following table illustrates the sources of revenue:

	Three Months Ended
	March 31,
(in millions)	2019		2018
Revenue from contracts with customers	$	1,178	$	1,162
Lease Revenue	59		55
Total	$	1,237	$	1,217

The following table reflects revenue from contracts with customers by application:

	Three Months Ended
	March 31,
(in millions)	2019		2018
Water Infrastructure
Transport	$	346	$	347
Treatment	77		78
Applied Water
Commercial Building Services	154		137
Residential Building Services	59		57
Industrial Water	166		172
Measurement and Control Solutions
Water	199		172
Energy	73		80
Software as a Service/Other	24		34
Test	80		85
Total	$	1,178	$	1,162

The following table reflects revenue from contracts with customers by geographical region:

	Three Months Ended
	March 31,
(in millions)	2019		2018
Water Infrastructure
United States	$	133	$	113
Europe	160		177
Emerging Markets & Other	130		135
Applied Water
United States	201		188
Europe	94		98
Emerging Markets & Other	84		80
Measurement and Control Solutions
United States	236		206
Europe	72		84
Emerging Markets & Other	68		81
Total	$	1,178	$	1,162

Contract Balances

We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to costs incurred to perform in advance of scheduled billings. Contract liabilities relate to payments received in advance of performance under the contracts. Change in contract assets and liabilities are due to our performance under the contract.

The table below provides contract assets, contract liabilities, and significant changes in contract assets and liabilities:

(in millions)	Contract Assets (a)			Contract Liabilities
Balance at January 1, 2018	$	89		$	107
Additions, net	38			56
Revenue recognized from opening balance	—			(54		)
Billings	(34		)	—
Other	1			1
Balance at March 31, 2018	$	94		$	110
Balance at January 1, 2019	$	96		$	113
Additions, net	39			46
Revenue recognized from opening balance	—			(45		)
Billings	(32		)	—
Other	11			2
Balance at March 31, 2019	$	114		$	116

(a) Excludes receivable balances which are disclosed on the balance sheet

Performance obligations

Delivery schedules vary from customer to customer based upon their requirements. Typically, large projects require longer lead production cycles and delays can occur from time to time. As of March 31, 2019, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $314 million. We expect to recognize revenue upon the completion of satisfying these performance obligations in the following 60 months. The Company elects to apply the practical expedient to exclude from this disclosure revenue related to performance obligations that are part of a contract whose original expected duration is less than one year.