Revenue

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following table illustrates the sources of revenue:

	Year Ended December 31,
(in millions)	2020		2019		2018
Revenue from contracts with customers	$	4,681	$	5,002	$	4,963
Lease Revenue	195		247		244
Total	$	4,876	$	5,249	$	5,207

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

	Year Ended December 31,
(in millions)	2020		2019		2018
Water Infrastructure
Transport	$	1,484	$	1,533	$	1,535
Treatment	400		397		397
Applied Water
Building Services	804		848		828
Industrial Water	630		693		706
Measurement and Control Solutions
Water	689		768		692
Energy	276		337		338
Software as a Service	92		99		123
Test	306		327		344
Total	$	4,681	$	5,002	$	4,963

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

	Year Ended December 31,
(in millions)	2020		2019		2018
Water Infrastructure
United States	$	558	$	593	$	539
Europe	751		729		758
Asia Pacific	341		358		344
Other	234		250		291
Applied Water
United States	754		816		797
Europe	356		362		386
Asia Pacific	152		164		153
Other	172		199		198
Measurement and Control Solutions
United States	856		972		913
Europe	266		257		273
Asia Pacific	109		118		144
Other	132		184		167
Total	$	4,681	$	5,002	$	4,963

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. Changes 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 1/1/2019	$	96	$	113
Additions, net	81		114
Revenue recognized from opening balance	—		(91)
Billings transferred to accounts receivable	(80)		—
Other	9		(1)
Balance at 1/1/2020	$	106	$	135
Additions, net	118		120
Revenue recognized from opening balance	—		(93)
Billings transferred to accounts receivable	(110)		—
Other	3		4
Balance at 12/31/2020	$	117	$	166

(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 December 31, 2020, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $422 million. We expect to recognize the majority of 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.