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REVENUE
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregation of Revenue

The following tables disaggregate our revenue recognized by primary geographical market by our business segments and by industry for SCS. Refer to Note 3, “Segment Reporting”, for the disaggregation of our revenue by major product/service lines.
Primary Geographical Markets
Year ended December 31, 2023
(In millions)FMSSCSDTSEliminationsTotal
United States$5,616 $4,295 $1,785 $(764)$10,932 
Canada314 267 — (43)538 
Mexico— 313 — — 313 
Total revenue$5,930 $4,875 $1,785 $(807)$11,783 

Year ended December 31, 2022
(In millions)FMSSCSDTSEliminationsTotal
United States$5,858 $4,209 $1,786 $(780)$11,073 
Canada319 251 — (42)528 
Europe (1)
150 — — — 150 
Mexico— 260 — — 260 
Total revenue$6,327 $4,720 $1,786 $(822)$12,011 
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(1)Refer to Note 20, "Other Items Impacting Comparability", for further information on the exit of the FMS U.K. business.

Year ended December 31, 2021
(In millions)FMSSCSDTSEliminationsTotal
United States$5,116 $2,706 $1,457 $(600)$8,679 
Canada302 230 — (29)503 
Europe (1)
262 — — — 262 
Mexico— 219 — — 219 
Total revenue$5,680 $3,155 $1,457 $(629)$9,663 


Industry

We have a diversified portfolio of customers across a full array of transportation and logistics solutions and across many industries. We believe this will help to mitigate the impact of adverse downturns in specific sectors of the economy. Our portfolio of ChoiceLease and commercial rental customers, as well as our DTS business, is not concentrated in any one particular industry or geographic region.

During 2023, we introduced the omnichannel retail industry vertical within our SCS business segment 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:
Years ended December 31,
(In millions)202320222021
Omnichannel retail$1,757 $1,861 $1,017 
Automotive1,600 1,523 1,185 
Consumer packaged goods965 845 654 
Industrial and other553 491 299 
Total SCS revenue$4,875 $4,720 $3,155 

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 Consolidated Statements of Earnings. We recognized $963 million in 2023, and $1.0 billion in both 2022 and 2021.
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:
Years ended December 31,
(In millions)202320222021
Balance as of beginning of period$544 $594 $630 
Recognized as revenue during period from beginning balance(166)(181)(183)
Consideration deferred during period, net168 140 145 
Foreign currency translation adjustment and other(1)(9)2 
Balance as of end of period$545 $544 $594 

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 $2.8 billion and $2.3 billion as of December 31, 2023 and 2022, respectively, and primarily includes deferred revenue and amounts for full service ChoiceLease maintenance revenue that will be recognized as revenue in future periods as we provide maintenance services to our customers. Contracted not recognized revenue excludes (1) variable consideration as it is not included in the transaction price consideration allocated at contract inception, (2) revenues from the lease component of our ChoiceLease product and all the revenue from the commercial rental product, (3) revenues from contracts with an original duration of one year or less, including SelectCare contracts, and (4) revenue from SCS, DTS and other contracts where there are remaining performance obligations when we have the right to invoice but the revenue to be recognized in the future corresponds directly with the value delivered to the customer.

Sales Commissions and Setup Costs

We capitalize incremental sales commissions paid as a result of obtaining ChoiceLease, SCS and DTS contracts as contract costs. Capitalized sales commissions, including initial direct costs of our leases, was $117 million and $126 million as of December 31, 2023 and 2022, respectively. Sales commission expense was $47 million in 2023 and $44 million in both 2022 and 2021. We also capitalize setup costs as a result of obtaining SCS and DTS contracts as contract costs. Capitalized setup costs were $84 million and $73 million as of December 31, 2023 and 2022, respectively. Setup contract amortization expense was $30 million, $28 million and $23 million in 2023, 2022 and 2021, respectively.