CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

12 Months Ended

Dec. 31, 2023

Contractors [Abstract]

CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

NOTE 8. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract and other deferred assets decreased $1,337 million in the year ended December 31, 2023 primarily due to a decrease in long-term service agreements, partially offset by the timing of revenue recognition ahead of billing milestones on long-term equipment contracts. Our long-term service agreements decreased primarily due to billings of $13,165 million, partially offset by revenues recognized of $11,312 million and a net favorable change in estimated profitability of $90 million at Power and $74 million at Aerospace.

December 31, 2023	Aerospace		Renewable Energy		Power		Corporate		Total
Revenues in excess of billings	$	2,377	$	—	$	5,205	$	—	$	7,582
Billings in excess of revenues	(7,902)		—		(1,810)		—		(9,712)
Long-term service agreements	$	(5,525)	$	—	$	3,395	$	—	$	(2,130)
Equipment and other service agreements	494		1,374		1,499		263		3,630
Current contract assets	$	(5,030)	$	1,374	$	4,894	$	263	$	1,500
Nonrecurring engineering costs(a)	2,444		18		1		—		2,463
Customer advances and other(b)	2,342		—		601		—		2,943
Non-current contract and other deferred assets	$	4,785	$	18	$	603	$	—	$	5,406
Total contract and other deferred assets	$	(245)	$	1,392	$	5,497	$	263	$	6,907

December 31, 2022	Aerospace		Renewable Energy		Power		Corporate		Total
Revenues in excess of billings	$	2,363	$	—	$	5,403	$	—	$	7,766
Billings in excess of revenues	(6,681)		—		(1,763)		—		(8,443)
Long-term service agreements	$	(4,318)	$	—	$	3,640	$	—	$	(677)
Equipment and other service agreements	433		1,063		1,404		245		3,144
Current contract assets	$	(3,884)	$	1,063	$	5,044	$	245	$	2,467
Nonrecurring engineering costs(a)	2,513		17		4		—		2,534
Customer advances and other(b)	2,519		—		724		—		3,243
Non-current contract and other deferred assets	$	5,032	$	17	$	728	$	—	$	5,776
Total contract and other deferred assets	$	1,148	$	1,079	$	5,772	$	245	$	8,244

(a) Included costs incurred prior to production (such as requisition engineering) for equipment production contracts, primarily within our Aerospace segment, which are amortized ratably over each unit produced.

(b) Included amounts due from customers at Aerospace 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.

Progress collections and deferred income increased $3,392 million primarily due to new collections received in excess of revenue recognition primarily at Renewable Energy and Power. Revenues recognized for contracts included in a liability position at the beginning of the year were $13,967 million and $12,345 million for the years ended December 31, 2023 and 2022, respectively.

December 31, 2023	Aerospace		Renewable Energy		Power		Corporate		Total
Progress collections	$	6,198	$	6,886	$	5,898	$	124	$	19,106
Current deferred income	201		239		20		112		571
Progress collections and deferred income	$	6,399	$	7,125	$	5,918	$	236	$	19,677
Non-current deferred income	1,150		122		48		20		1,339
Total Progress collections and deferred income	$	7,549	$	7,247	$	5,965	$	256	$	21,017

December 31, 2022
Progress collections	$	5,814	$	5,195	$	4,514	$	131	$	15,655
Current deferred income	233		208		13		107		562
Progress collections and deferred income	$	6,047	$	5,404	$	4,527	$	238	$	16,216
Non-current deferred income	1,110		183		104		12		1,409
Total Progress collections and deferred income	$	7,157	$	5,586	$	4,632	$	250	$	17,625