REVENUE

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

The following tables present our revenue recognized by primary geographical market in our reportable business segments and by industry vertical for SCS. Refer to Note 2, "Segment Reporting," for the disaggregation of our revenue by major products/service lines.

Primary Geographical Markets

	Three months ended June 30, 2023
(In millions)	FMS		SCS		DTS		Eliminations		Total
United States	$	1,381	$	1,035	$	440	$	(185)	$	2,671
Canada	78		65		—		(9)		134
Mexico	—		79		—		—		79
Total revenue	$	1,459	$	1,179	$	440	$	(194)	$	2,884

	Three months ended June 30, 2022
(In millions)	FMS		SCS		DTS		Eliminations		Total
United States	$	1,485	$	1,040	$	450	$	(201)	$	2,774
Canada	81		69		—		(10)		140
Europe (1)	55		—		—		—		55
Mexico	—		65		—		—		65
Total revenue	$	1,621	$	1,174	$	450	$	(211)	$	3,034

(1)Refer to Note 13, "Other Items Impacting Comparability" for further information on the exit of the FMS U.K. business.

	Six months ended June 30, 2023
(In millions)	FMS		SCS		DTS		Eliminations		Total
United States	$	2,807	$	2,103	$	894	$	(381)	$	5,423
Canada	155		127		—		(19)		263
Mexico	—		150		—		—		150
Total revenue	$	2,962	$	2,380	$	894	$	(400)	$	5,836
	Six months ended June 30, 2022
(In millions)	FMS		SCS		DTS		Eliminations		Total
United States	$	2,872	$	2,012	$	875	$	(380)	$	5,379
Canada	159		129		—		(20)		268
Europe (1)	119		—		—		—		119
Mexico	—		122		—		—		122
Total revenue	$	3,150	$	2,263	$	875	$	(400)	$	5,888
(1)Refer to Note 13, "Other Items Impacting Comparability" for further information on the exit of the FMS U.K. business.

Industry

Beginning in the first quarter of 2023, we introduced the omnichannel retail industry vertical to provide better visibility to the revenue mix following recent acquisitions and organic growth. This new vertical includes retail, e-commerce, last mile services, and technology. Our SCS business segment included revenue from the following industries:

	Three months ended June 30,				Six months ended June 30,
(In millions)	2023		2022		2023		2022
Omnichannel retail	$	405	$	451	$	858	$	869
Automotive	410		389		803		743
Consumer packaged goods	231		208		458		404
Industrial and other	133		126		261		247
Total SCS revenue	$	1,179	$	1,174	$	2,380	$	2,263

Lease & Related Maintenance and Rental Revenue

The non-lease revenue from maintenance services related to our ChoiceLease product is recognized in "Lease & related maintenance and rental revenue" in the Condensed Consolidated Statements of Earnings. For the three months ended June 30, 2023 and 2022, we recognized $239 million and $262 million, respectively. For the six months ended June 30, 2023 and 2022, we recognized $483 million and $519 million, respectively.

Deferred Revenue

The following table includes the changes in deferred revenue due to the collection and deferral of cash or the satisfaction of our performance obligation under the contract:

	Six months ended June 30,
(In millions)	2023		2022
Balance as of beginning of period	$	544	$	593
Recognized as revenue during period from beginning balance	(93)		(163)
Consideration deferred during period, net	96		123
Foreign currency translation adjustment and other	2		11
Balance as of end of period	$	549	$	564

Contracted Not Recognized Revenue

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (contracted not recognized revenue). Contracted not recognized revenue was $2.6 billion as of June 30, 2023, and primarily includes deferred revenue and amounts for ChoiceLease maintenance revenue that will be recognized as revenue in future periods as we provide maintenance services to our customers.