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REVENUE RECOGNITION DISAGGREGATION OF REVENUES
3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Maintenance Agreements
We have certain arrangements, primarily long-term maintenance agreements, construction contracts, product sales with associated performance obligations extending beyond a year, product sales with lead times extending beyond one year that are non-cancellable or for which the customer incurs a penalty for cancellation and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for these contracts, excluding extended warranty coverage arrangements, at March 31, 2025, was $5.8 billion. We expect to recognize the related revenue of $3.2 billion over the next 12 months and $2.6 billion 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 millionsMarch 31,
2025
December 31,
2024
Unbilled revenue$423 $403 
Deferred revenue2,559 2,412 
We recognized revenue of $350 million for the three months ended March 31, 2025, compared with $248 million for the comparable period in 2024, 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 months ended March 31, 2025 or 2024.
Disaggregation of Revenue
Consolidated Revenue
The table below presents our consolidated net sales by geographic area based on the location of the customer:
Three months ended
 March 31,
In millions20252024
United States$4,750 $4,785 
China779 723 
India426 444 
Other international2,219 2,451 
Total net sales$8,174 $8,403 
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended
March 31,
In millions20252024
Heavy-duty truck$654 $811 
Medium-duty truck and bus700 738 
Light-duty automotive425 438 
Total on-highway1,779 1,987 
Off-highway261 253 
Total sales$2,040 $2,240 
Components segment external sales by business were as follows:
Three months ended
March 31,
In millions20252024
Drivetrain and braking systems$1,056 $1,232 
Emission solutions791 856 
Components and software306 300 
Automated transmissions117 165 
Atmus 289 
(1)
Total sales$2,270 $2,842 
(1) Included sales through the March 18, 2024, divestiture. See NOTE 14, "ATMUS DIVESTITURE," for additional information.
Distribution segment external sales by region were as follows:
Three months ended
March 31,
In millions20252024
North America$2,099 $1,722 
Europe269 240 
Asia Pacific240 285 
China113 100 
India72 69 
Africa and Middle East59 54 
Latin America50 59 
Total sales$2,902 $2,529 
Distribution segment external sales by product line were as follows:
Three months ended
March 31,
In millions20252024
Power generation$1,090 $705 
Parts1,026 997 
Service416 405 
Engines370 422 
Total sales$2,902 $2,529 
Power Systems segment external sales by product line were as follows:
Three months ended
March 31,
In millions20252024
Power generation$445 $360 
Industrial284 238 
Generator technologies143 110 
Total sales$872 $708