Contract and Other Deferred Assets

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Contract and Other Deferred Assets

CONTRACT AND OTHER DEFERRED ASSETS

A majority of our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following at December 31:

	2019		2018
Long-term product service agreements	$	603	$	609
Long-term equipment contracts (1)	1,097		1,085
Contract assets (total revenue in excess of billings)	1,700		1,694
Deferred inventory costs	130		179
Non-recurring engineering costs	51		21
Contract and other deferred assets	$	1,881	$	1,894

⁽¹⁾  Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.

Revenue recognized during the year ended December 31, 2019 and 2018 from performance obligations satisfied (or partially satisfied) in previous years related to our long-term service agreements was $(1) million and $26 million, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.