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Revenue Recognition
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
We account for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606: Revenue from Contracts with Customers.

Contract Assets and Liabilities. Contract assets reflect revenue recognized in advance of customer billing. Contract liabilities are recognized when a customer pays consideration, or we have an unconditional right to receive consideration, in advance of the satisfaction of performance obligations under the contract. We receive payments from customers based on the terms established in our contracts, which are payments in advance of performing work, progress payments as we perform contract work over time, or in some cases, payments upon completion of work.

Total Contract assets and Contract liabilities as of March 31, 2025 and December 31, 2024 are as follows:

(dollars in millions)March 31, 2025December 31, 2024
Contract assets, current$690 $706 
Total contract assets690 706 
Contract liabilities, current2,870 2,598 
Contract liabilities, non-current (included within Other long-term liabilities)38 38 
Total contract liabilities 2,908 2,636 
Net contract liabilities$2,218 $1,930 

Contract assets decreased by $16 million during the quarter ended March 31, 2025 as a result of the progression of current contracts and timing of billing on customer contracts. Contract liabilities increased by $272 million during the quarter ended March 31, 2025 primarily due to billings on contracts in excess of revenue earned.

In the quarters ended March 31, 2025 and 2024, we recognized revenue of approximately $1.0 billion each quarter related to contract liabilities as of January 1, 2025 and 2024.

Remaining Performance Obligations ("RPO"). RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of March 31, 2025, our total RPO was approximately $18.6 billion. Of the total RPO as of March 31, 2025, we expect approximately 90% will be recognized as sales over the following 24 months.