REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Contract Assets and Liabilities. Total contract assets and liabilities are as follows:


(dollars in millions)	September 30, 2020		December 31, 2019
Contract assets, current	$	753	$	622
Contract assets, non-current (included within Other assets)	75		57
Total contract assets	828		679
Contract liabilities, current	(495)		(443)
Contract liabilities, non-current (included within Other long-term liabilities)	(166)		(168)
Total contract liabilities	(661)		(611)
Net contract assets	$	167	$	68

Contract assets increased $149 million for the nine months ended September 30, 2020, primarily due to the timing of billings on customer contracts and contract completions. Contract liabilities increased $50 million for the nine months ended September 30, 2020, primarily due to customer billings in excess of revenue earned.

For the three months ended September 30, 2020 and 2019, we recognized revenue of $55 million and $53 million, respectively, and for the nine months ended September 30, 2020 and 2019, we recognized revenue of $288 million and $301 million, respectively, that was related to contract liabilities as of January 1, 2020 and 2019, respectively.

Remaining Performance Obligations ("RPO"). As of September 30, 2020, our total RPO was approximately $5.6 billion compared with $4.7 billion as of December 31, 2019. Of the total RPO as of September 30, 2020, we expect that approximately 73% will be recognized as sales over the next 12 months.

See Note 19 – Segment Financial Data which provides incremental disclosures required by Accounting Standard Codification ("ASC") Topic 606 – Revenue from Contracts with Customers.