Contract Assets

3 Months Ended

Mar. 31, 2017

NOTE 9. CONTRACT ASSETS

(In millions)		March 31, 2017		December 31, 2016

GE
Revenue in excess of billings
Long-term product service agreements(a)	$	14,194	$	12,752
Long-term equipment contract revenue(b)		6,190		5,859
Total revenue in excess of billings		20,384		18,611

Deferred inventory costs(c)		3,709		3,349
Non-recurring engineering costs(d)		2,253		2,185
Other		1,036		1,018
Contract assets	$	27,382	$	25,162

(a) Long-term product service agreement balances are presented net of related billings in excess of revenues of $3,171 million and $3,750 million at March 31, 2017 and December 31, 2016, respectively.

(b) Reflects revenues earned in excess of billings on our long-term contracts to construct technically complex equipment (such as gas power systems).

(c) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and other costs for which the criteria for revenue recognition has not yet been met.

(d) Included costs incurred prior to production (e.g., requisition engineering) for long-term equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced.