NOTE 10. CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME

Contract and other deferred assets increased $140 million in the first quarter of 2019. Our long-term service agreements increased $140 million due to a favorable change in estimated profitability of $150 million, primarily at Aviation. In addition, our equipment related contract assets increased $155 million primarily due to the timing of revenue recognition ahead of billings at Power and Aviation.



March 31, 2019 (In millions)	Power			Aviation			Oil & Gas			Renewable Energy		Other(a)		Total

Revenues in excess of billings	$	5,498		$	5,274		$	670		$	—	$	—	$	11,442
Billings in excess of revenues	(1,693		)	(3,108		)	(195		)	—		—		(4,996		)
Long-term service agreements(b)	3,805			2,166			475			—		—		6,446
Equipment contract revenues(c)(d)	4,032			438			1,040			328		492		6,329
Total contract assets	7,837			2,604			1,515			328		492		12,776

Deferred inventory costs	808			434			144			1,517		324		3,226
Nonrecurring engineering costs	125			2,005			48			22		34		2,234
Customer advances and other	—			1,136			—			—		—		1,136
Contract and other deferred assets	$	8,770		$	6,179		$	1,707		$	1,866	$	849	$	19,371



December 31, 2018 (In millions)	Power			Aviation			Oil & Gas			Renewable Energy		Other(a)		Total

Revenues in excess of billings	$	5,368		$	5,412		$	703		$	—	$	—	$	11,482
Billings in excess of revenues	(1,693		)	(3,297		)	(187		)	—		—		(5,176		)
Long-term service agreements(b)	3,675			2,115			516			—		—		6,306
Equipment contract revenues(c)(d)	3,899			352			1,085			287		551		6,174
Total contract assets	7,574			2,468			1,600			287		551		12,480

Deferred inventory costs	1,012			673			179			1,258		365		3,488
Nonrecurring engineering costs	124			1,916			22			22		34		2,117
Customer advances and other	—			1,146			—			—		—		1,146
Contract and other deferred assets	$	8,709		$	6,204		$	1,800		$	1,567	$	951	$	19,231


(a)	Primarily includes our Healthcare segment.


(b)	In our consolidated Statement of Financial Position, long-term service agreement balances are presented net of related billings in excess of revenues.


(c)	Included in this balance are revenues in excess of billings of $714 million and $592 million as of March 31, 2019 and December 31, 2018, primarily in our Aviation and Healthcare segments, related to short-term service agreements.


(d)	Included in this balance are amounts due from customers for the sale of service upgrades, which we collect through higher fixed or usage-based fees from servicing the equipment under long-term service agreements. Amounts due from these arrangements totaled $895 million and $883 million, as of March 31, 2019 and December 31, 2018, respectively.

Progress collections and deferred income decreased $364 million in the first quarter of 2019 primarily due to the timing of revenue recognition in excess of new collections received, primarily at Power and Renewable Energy. These decreases were partially offset by milestone payments received primarily at Aviation and Oil & Gas.



March 31, 2019 (In millions)	Power		Aviation		Oil & Gas		Renewable Energy		Other(a)		Total

Progress collections on equipment contracts	$	6,596	$	98	$	1,075	$	374	$	—	$	8,143
Other progress collections	535		4,159		535		3,283		277		8,789
Total progress collections	$	7,131	$	4,257	$	1,610	$	3,657	$	277	$	16,932
Deferred income	147		1,385		132		255		1,617		3,536
Progress collections and deferred income	$	7,278	$	5,642	$	1,742	$	3,912	$	1,894	$	20,469



December 31, 2018 (In millions)	Power		Aviation		Oil & Gas		Renewable Energy		Other(a)		Total

Progress collections on equipment contracts	$	6,690	$	114	$	878	$	423	$	—	$	8,105
Other progress collections	692		4,034		552		3,467		338		9,083
Total progress collections	$	7,382	$	4,148	$	1,430	$	3,890	$	338	$	17,188
Deferred income	163		1,338		164		241		1,739		3,645
Progress collections and deferred income	$	7,545	$	5,486	$	1,594	$	4,131	$	2,077	$	20,833


(a)	Primarily includes our Healthcare segment.

Revenues recognized for balances included in contract liabilities at the beginning of the year were $5,173 million and $5,593 million for the three months ended March 31, 2019 and 2018, respectively.