Decrease in progress collections and deferred income due to timing of revenue recognition

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, 2021 | Aviation | Healthcare | Renewable Energy | Power | Corporate | Total |
| Revenues in excess of billings | $ | 2,478  |  | $ | —  |  | $ | —  |  | $ | 5,495  |  | $ | —  |  | $ | 7,972  |  |
| Billings in excess of revenues | (5,731) |  | —  |  | —  |  | (1,614) |  | —  |  | (7,346) |  |
| Long-term service agreements | $ | (3,253) |  | $ | —  |  | $ | —  |  | $ | 3,880  |  | $ | —  |  | $ | 627  |  |
| Short-term and other service agreements | 340  |  | 166  |  | 87  |  | 80  |  | 20  |  | 692  |  |
| Equipment contract revenues | 33  |  | 287  |  | 1,297  |  | 1,709  |  | 236  |  | 3,562  |  |
| Current contract assets | $ | (2,881) |  | $ | 453  |  | $ | 1,384  |  | $ | 5,669  |  | $ | 256  |  | $ | 4,881  |  |
|  |  |  |  |  |  |  |
| Nonrecurring engineering costs | 2,479  |  | 31  |  | 28  |  | 12  |  | —  |  | 2,550  |  |
| Customer advances and other | 2,620  |  | 154  |  | —  |  | 801  |  | —  |  | 3,574  |  |
| Non-current contract and other deferred assets | $ | 5,099  |  | $ | 184  |  | $ | 28  |  | $ | 813  |  | $ | —  |  | $ | 6,124  |  |
| Total contract and other deferred assets | $ | 2,218  |  | $ | 637  |  | $ | 1,412  |  | $ | 6,482  |  | $ | 256  |  | $ | 11,005  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, 2020 |  |  |  |  |  |  |
| Revenues in excess of billings | $ | 3,072  |  | $ | —  |  | $ | —  |  | $ | 5,282  |  | $ | —  |  | $ | 8,354  |  |
| Billings in excess of revenues | (5,375) |  | —  |  | —  |  | (1,640) |  | —  |  | (7,015) |  |
| Long-term service agreements | $ | (2,304) |  | $ | —  |  | $ | —  |  | $ | 3,642  |  | $ | —  |  | $ | 1,338  |  |
| Short-term and other service agreements | 282  |  | 173  |  | 106  |  | 129  |  | 29  |  | 719  |  |
| Equipment contract revenues | 59  |  | 306  |  | 1,127  |  | 2,015  |  | 201  |  | 3,707  |  |
| Current contract assets | $ | (1,963) |  | $ | 479  |  | $ | 1,233  |  | $ | 5,786  |  | $ | 229  |  | $ | 5,764  |  |
|  |  |  |  |  |  |  |
| Nonrecurring engineering costs | 2,409  |  | 31  |  | 34  |  | 16  |  | —  |  | 2,490  |  |
| Customer advances and other | 2,481  |  | 128  |  | —  |  | 822  |  | (32) |  | 3,398  |  |
| Non-current contract and other deferred assets | $ | 4,889  |  | $ | 159  |  | $ | 34  |  | $ | 838  |  | $ | (32) |  | $ | 5,888  |  |
| Total contract and other deferred assets | $ | 2,927  |  | $ | 638  |  | $ | 1,268  |  | $ | 6,623  |  | $ | 197  |  | $ | 11,653  |  |

  
Progress collections and deferred income. Progress collections represent cash received from customers under ordinary commercial payment terms in advance of delivery. Progress collections on equipment contracts primarily comprise milestone payments received from customers prior to the manufacture and delivery of customized equipment orders. Other progress collections primarily comprise down payments from customers to reserve production slots for standardized inventory orders such as advance payments from customers when they place orders for wind turbines and blades within our Renewable Energy segment and payments from airframers and airlines for install and spare engines, respectively, within our Aviation segment.  
Progress collections and deferred income decreased $811 million primarily due to the timing of revenue recognition in excess of new collections received, primarily at Renewable Energy and Aviation. Revenues recognized for contracts included in a liability position at the beginning of the year were $14,569 million and $12,712 million for the years ended December 31, 2021 and 2020, respectively.   


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, 2021 | Aviation | Healthcare | Renewable Energy | Power | Corporate | Total |
| Progress collections on equipment contracts | $ | 142  |  | $ | —  |  | $ | 1,843  |  | $ | 5,198  |  | $ | —  |  | $ | 7,183  |  |
| Other progress collections | 4,469  |  | 522  |  | 2,866  |  | 385  |  | 111  |  | 8,354  |  |
|  |  |  |  |  |  |  |
| Current deferred income | 170  |  | 1,336  |  | 198  |  | 33  |  | 99  |  | 1,835  |  |
| Progress collections and deferred income | $ | 4,782  |  | $ | 1,858  |  | $ | 4,907  |  | $ | 5,615  |  | $ | 210  |  | $ | 17,372  |  |
| Non-current deferred income | 1,090  |  | 592  |  | 194  |  | 110  |  | 3  |  | 1,989  |  |
| Total Progress collections and deferred income | $ | 5,871  |  | $ | 2,450  |  | $ | 5,101  |  | $ | 5,725  |  | $ | 213  |  | $ | 19,361  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, 2020 |  |  |  |  |  |  |
| Progress collections on equipment contracts | $ | 214  |  | $ | —  |  | $ | 1,229  |  | $ | 4,918  |  | $ | —  |  | $ | 6,362  |  |
| Other progress collections | 4,623  |  | 414  |  | 4,604  |  | 458  |  | 152  |  | 10,252  |  |
|  |  |  |  |  |  |  |
| Current deferred income | 132  |  | 1,309  |  | 194  |  | 17  |  | 105  |  | 1,757  |  |
| Progress collections and deferred income | $ | 4,969  |  | $ | 1,724  |  | $ | 6,028  |  | $ | 5,393  |  | $ | 257  |  | $ | 18,371  |  |
| Non-current deferred income | 898  |  | 564  |  | 214  |  | 116  |  | 10  |  | 1,801  |  |
| Total Progress collections and deferred income | $ | 5,867  |  | $ | 2,288  |  | $ | 6,241  |  | $ | 5,509  |  | $ | 267  |  | $ | 20,172  |  |

  
2021 FORM 10-K 63
