REVENUE

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Disaggregation of Revenue

The following tables disaggregate our revenue recognized by primary geographical market by our reportable business segments, by FMS product line and by SCS industry.

Primary Geographical Markets

	Three months ended March 31, 2025
(In millions)	FMS		SCS		DTS		Eliminations		Total
United States	$	1,375	$	1,183	$	602	$	(238)	$	2,922
Canada	72		72		—		(11)		133
Mexico	—		76		—		—		76
Total revenue	$	1,447	$	1,331	$	602	$	(249)	$	3,131

	Three months ended March 31, 2024
(In millions)	FMS		SCS		DTS		Eliminations		Total
United States	$	1,380	$	1,151	$	563	$	(211)	$	2,883
Canada	75		71		—		(11)		135
Mexico	—		80		—		—		80
Total revenue	$	1,455	$	1,302	$	563	$	(222)	$	3,098

Product Line

Our FMS revenue disaggregated by product line is as follows:

	Three months ended March 31,
(In millions)	2025		2024
ChoiceLease	$	867	$	842
Commercial rental	219		231
SelectCare and other	174		178
Fuel services revenue	187		204
Total FMS revenue	$	1,447	$	1,455

Industry

Our SCS business segment included revenue from the following industries:

	Three months ended March 31,
(In millions)	2025		2024
Omnichannel retail	$	434	$	417
Automotive	395		406
Consumer packaged goods	302		290
Industrial and other	200		189
Total SCS revenue	$	1,331	$	1,302

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. We recognized $250 million and $243 million for the three months ended March 31, 2025 and 2024.

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:

	Three months ended March 31,
(In millions)	2025		2024
Balance as of January 1	$	600	$	545
Recognized as revenue during period from beginning balance	(53)		(61)
Consideration deferred during period, net	65		69
Foreign currency translation adjustment and other	1		—
Balance as of end of period	$	613	$	553

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 $3.2 billion as of March 31, 2025, and primarily includes deferred revenue and amounts for ChoiceLease that will be recognized as revenue in future periods as we provide maintenance services to our customers.