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Revenue from Contracts With Customers
9 Months Ended
Sep. 30, 2024
Revenue from Contracts with Customers  
Revenue from Contracts with Customers

5.     Revenue from Contracts with Customers

The following table disaggregates the company’s net sales based on the timing of transfer of control:

Three Months Ended September 30,

Nine Months Ended September 30,

($ in millions)

Point in Time

Over Time

Total

 

Point in Time

Over Time

Total

2024

$

678

$

2,404

$

3,082

$

1,861

$

7,054

$

8,915

2023

629

2,482

3,111

1,728

7,431

9,159

Contract Balances

The company did not have any contract assets at either September 30, 2024, or December 31, 2023. Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional.

The opening and closing balances of the company’s current and noncurrent contract liabilities are as follows:

Contract

Contract

Liabilities

Liabilities

($ in millions)

    

(Current)

(Noncurrent)

Balance at December 31, 2023

$

114

$

3

Increase (decrease)

(30)

(1)

Balance at September 30, 2024

$

84

$

2

During the nine months ended September 30, 2024, contract liabilities decreased by $31 million, which is net of cash received of $101 million and amounts recognized as sales of $132 million, the majority of which related to current contract liabilities. The amount of sales recognized in the nine months ended September 30, 2024, that was included in the opening contract liabilities balance, was $114 million, all of which related to current contract liabilities. The difference between the opening and closing balances of the company’s contract liabilities primarily results from timing differences between the company’s performance and the customer’s payments. Current contract liabilities are classified within other current liabilities in the unaudited condensed consolidated balance sheets and noncurrent contract liabilities are classified within other liabilities.