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CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME
 12 Months Ended
Dec. 31, 2020
Contractors [Abstract]  
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME
NOTE 9. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME
Contract and other deferred assets decreased $1,474 million in 2020. Our long-term service agreements decreased primarily due to billings of $9,571 million and a net unfavorable change in estimated profitability of $229 million at Power and $1,100 million at Aviation, offset by revenues recognized of $8,971 million. The decrease in long-term service agreements included a $587 million pre-tax charge, at Aviation, to reflect the cumulative COVID-19 pandemic-related impacts of changes to billing and cost assumptions for certain long-term service agreements, reflecting lower engine utilization, anticipated customer fleet restructuring and contract modifications. Additional adjustments could occur in future periods and could be material for certain long-term service agreements if actual customer operating behavior differs significantly from Aviation's current estimates.
December 31, 2020
PowerAviationRenewable EnergyHealthcareOtherTotal
Revenues in excess of billings$5,282 $3,072 $— $— $— $8,354 
Billings in excess of revenues(1,640)(5,375)— — — (7,015)
Long-term service agreements$3,642 $(2,304)$— $— $— $1,338 
Short-term and other service agreements129 282 106 173 29 719 
Equipment contract revenues2,015 59 1,127 306 201 3,707 
Current contract assets$5,786 $(1,963)$1,233 $479 $229 $5,764 
Nonrecurring engineering costs(a)16 2,409 34 31 — 2,490 
Customer advances and other(b)822 2,481 — 128 (32)3,398 
Non-current contract and other deferred assets$838 $4,889 $34 $159 $(32)$5,888 
Total contract and other deferred assets$6,623 $2,927 $1,268 $638 $197 $11,653 
December 31, 2019
PowerAviationRenewable EnergyHealthcareOtherTotal
Revenues in excess of billings$5,342 $4,480 $— $— $— $9,822 
Billings in excess of revenues(1,561)(4,914)— — — (6,476)
Long-term service agreements$3,781 $(435)$— $— $— $3,346 
Short-term and other service agreements190 316 43 169 — 717 
Equipment contract revenues1,599 82 1,217 324 106 3,327 
Current contract assets$5,569 $(37)$1,260 $492 $106 $7,390 
Nonrecurring engineering costs(a)$44 $2,257 $47 $35 $8 $2,391 
Customer advances and other(b)909 2,313 — 156 (32)3,346 
Non-current contract and other deferred assets$953 $4,570 $47 $190 $(24)$5,737 
Total contract and other deferred assets$6,522 $4,533 $1,307 $683 $82 $13,127 
(a)Included costs incurred prior to production (such as requisition engineering) for equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced.
(b)Included amounts due from customers at Aviation for the sales of engines, spare parts and services, and at Power, for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under long-term service agreements. We have reclassified certain prior-year amounts from the long-term service agreements and equipment contract revenues line items in the table above to conform with the current year’s presentation.

PROGRESS COLLECTIONS & DEFERRED INCOME. Progress collections represent cash received from customers under ordinary commercial payment terms in advance of delivery. Progress collections on equipment contracts primarily comprise milestone payments received from customers prior to the manufacture and delivery of customized equipment orders. Other progress collections primarily comprise down payments from customers to reserve production slots for standardized inventory orders such as advance payments from customers when they place orders for wind turbines and blades within our Renewable Energy segment and payments from airframers and airlines for install and spare engines, respectively, within our Aviation segment.

Progress collections and deferred income increased $72 million in 2020 primarily due to the timing of new collections received in excess of revenue recognition, primarily at Renewable Energy, Healthcare and Aviation. These increases were partially offset by revenue recognized in excess of new collections at Power. Our Aviation Military equipment business received new collections of $708 million in the second quarter 2020 as part of the U.S. Department of Defense's efforts to support vendors in its supply chain during the pandemic.

Revenues recognized for contracts included in a liability position at the beginning of the year were $12,314 million and $11,020 million for the years ended December 31, 2020 and 2019, respectively.
December 31, 2020
PowerAviationRenewable EnergyHealthcareOtherTotal
Progress collections on equipment contracts$4,918 $214 $1,229 $— $— $6,362 
Other progress collections458 4,623 4,604 414 (4)10,096 
Total progress collections$5,376 $4,837 $5,834 $414 $(4)$16,458 
Current deferred income17 132 194 1,309 105 1,757 
Progress collections and deferred income$5,393 $4,969 $6,028 $1,724 $102 $18,215 
Non-current deferred income116 898 214 564 10 1,801 
Total progress collections and deferred income$5,509 $5,867 $6,241 $2,288 $112 $20,016 
December 31, 2019
Progress collections on equipment contracts$5,857 $115 $1,268 $— $— $7,240 
Other progress collections413 4,748 4,193 305 2 9,662 
Total progress collections$6,270 $4,863 $5,461 $305 $2 $16,902 
Current deferred income18 90 140 1,180 59 1,487 
Progress collections and deferred income$6,288 $4,953 $5,602 $1,485 $61 $18,389 
Non-current deferred income31 874 144 467 39 1,555 
Total progress collections and deferred income$6,319 $5,827 $5,745 $1,952 $100 $19,944