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REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE
9 Months Ended
Sep. 27, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 3. REVENUE RECOGNITION
Long-term Contracts
Most of our contracts are for a period of less than one year. We have certain long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that had not been satisfied as of September 27, 2020, was $900 million. We expect to recognize the related revenue of $172 million over the next 12 months and $728 million over periods up to 10 years. See Note 10, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties.
Deferred and Unbilled Revenue
The following is a summary of our unbilled and deferred revenue and related activity:
In millionsSeptember 27,
2020
December 31,
2019
Unbilled revenue$79 $68 
Deferred revenue, primarily extended warranty1,377 1,354 
We recognized revenue of $84 million and $290 million for the three and nine months ended September 27, 2020, compared with $79 million and $282 million for the comparable periods in 2019, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and nine months ended September 27, 2020 or September 29, 2019.
Disaggregation of Revenue
Consolidated Revenue
The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer.
 Three months endedNine months ended
In millionsSeptember 27,
2020
September 29,
2019
September 27,
2020
September 29,
2019
United States$2,805 $3,414 $7,522 $10,461 
China705 481 2,037 1,698 
India166 185 406 643 
Other international1,442 1,688 4,016 5,191 
Total net sales$5,118 $5,768 $13,981 $17,993 
Segment Revenue
Engine segment external sales by market were as follows:
Three months endedNine months ended
In millionsSeptember 27,
2020
September 29,
2019
September 27,
2020
September 29,
2019
Heavy-duty truck$486 $635 $1,226 $2,112 
Medium-duty truck and bus389 525 1,177 1,765 
Light-duty automotive502 451 975 1,216 
Total on-highway1,377 1,611 3,378 5,093 
Off-highway240 211 755 786 
Total sales$1,617 $1,822 $4,133 $5,879 
Distribution segment external sales by region were as follows:
Three months endedNine months ended
In millionsSeptember 27,
2020
September 29,
2019
September 27,
2020
September 29,
2019
North America$1,126 $1,373 $3,409 $4,139 
Asia Pacific195 224 577 667 
Europe153 135 424 380 
China74 82 242 264 
Africa and Middle East47 60 136 170 
India42 46 101 142 
Russia41 33 126 113 
Latin America37 48 108 134 
Total sales$1,715 $2,001 $5,123 $6,009 
Distribution segment external sales by product line were as follows:
Three months endedNine months ended
In millionsSeptember 27,
2020
September 29,
2019
September 27,
2020
September 29,
2019
Parts$719 $796 $2,155 $2,464 
Power generation415 466 1,166 1,292 
Service303 376 926 1,109 
Engines278 363 876 1,144 
Total sales$1,715 $2,001 $5,123 $6,009 
Components segment external sales by business were as follows:
Three months endedNine months ended
In millionsSeptember 27,
2020
September 29,
2019
September 27,
2020
September 29,
2019
Emission solutions$612 $660 $1,576 $2,144 
Filtration260 249 715 771 
Turbo technologies163 151 463 522 
Automated transmissions90 146 215 451 
Electronics and fuel systems76 47 223 167 
Total sales$1,201 $1,253 $3,192 $4,055 
Power Systems segment external sales by product line were as follows:
Three months endedNine months ended
In millionsSeptember 27,
2020
September 29,
2019
September 27,
2020
September 29,
2019
Power generation$334 $372 $827 $1,060 
Industrial167 227 477 704 
Generator technologies66 84 191 266 
Total sales$567 $683 $1,495 $2,030