v3.24.2
CONTRACT AND OTHER DEFERRED ASSETS, CONTRACT LIABILITIES AND DEFERRED INCOME & PROGRESS COLLECTIONS
 6 Months Ended
Jun. 30, 2024
Contractors [Abstract]  
CONTRACT AND OTHER DEFERRED ASSETS, CONTRACT LIABILITIES AND DEFERRED INCOME & PROGRESS COLLECTIONS CONTRACT AND OTHER DEFERRED ASSETS, CONTRACT LIABILITIES AND DEFERRED INCOME & PROGRESS COLLECTIONS
Contract assets (liabilities) and other deferred assets (income), on a net basis, increased the net liability position by $474 million for the six months ended June 30, 2024, primarily due to an increase of $435 million of long-term service agreements liabilities, and a decrease in long-term service agreement assets of $261 million, offset by an increase in equipment and other service agreements of $105 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $4,181 million and net unfavorable changes in estimated profitability of $184 million, primarily in Commercial Engines & Services, partially offset by revenues recognized of $3,721 million. Revenues recognized for contracts included in a liability position at the beginning of the year were $3,537 million and $3,145 million for the six months ended June 30, 2024 and 2023, respectively.

CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMEJune 30, 2024December 31, 2023
Long-term service agreements
$2,116 $2,377 
Equipment and other service agreements603 498 
Current contract assets
$2,719 $2,875 
Nonrecurring engineering costs(a)
$2,434 $2,444 
Customer advances and other(b)
2,367 2,342 
Contract and other deferred assets4,801 4,785 
Total contract and other deferred assets$7,521 $7,660 
Long-term service agreement liabilities
$8,337 $7,902 
Current deferred income335 420 
Contract liabilities and current deferred income$8,671 $8,322 
Non-current deferred income960 975 
Total contract liabilities and deferred income$9,631 $9,297 
Contract assets (liabilities) and other deferred assets (income)$(2,111)$(1,637)
(a) Included costs incurred prior to production (such as requisition engineering) for equipment production contracts, primarily within our Defense & Propulsion Technologies segment, which are amortized ratably over each unit produced. We assess the recoverability of these costs and if we determine the costs are no longer probable of recovery, the asset is impaired.
(b) Included amounts due from customers within our Commercial Engines & Services segment for the sales of engines, spare parts and services, which we collect through fixed or usage-based billings from the sale of spare parts and servicing of equipment under long-term service agreements.
Progress collections increased $288 million in the six months ended June 30, 2024 primarily due to collections received in excess of settlements at Commercial Engines & Services.