v3.24.3
REVENUE RECOGNITION
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.
The following table provides disaggregated sales by lines of businesses, geographic destination, market channel or end market, as applicable, for the Company's operating segments:
Three months ended
September 30		Nine months ended
September 30
(In millions)2024202320242023
Electrical Americas
Products$794 $748 $2,272 $2,221 
Systems2,169 1,846 6,258 5,205 
Total$2,963 $2,594 $8,530 $7,426 
Electrical Global
Products$879 $848 $2,604 $2,620 
Systems694 655 2,074 1,952 
Total$1,573 $1,503 $4,678 $4,572 
Aerospace
Original Equipment Manufacturers$366 $342 $1,110 $980 
Aftermarket341 302 961 863 
Industrial and Other239 223 701 674 
Total$946 $867 $2,772 $2,517 
Vehicle
Commercial$426 $452 $1,311 $1,359 
Passenger and Light Duty270 301 831 884 
Total$696 $753 $2,143 $2,242 
eMobility$167 $163 $514 $471 
Total net sales$6,345 $5,880 $18,638 $17,229 
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivable from customers were $4,375 million and $3,966 million at September 30, 2024 and December 31, 2023, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $351 million and $289 million at September 30, 2024 and December 31, 2023, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables reflects higher revenue recognized and not yet billed from increased business activity in 2024.
Changes in the deferred revenue liabilities are as follows:
(In millions)Deferred Revenue
Balance at January 1, 2024
$626 
Customer deposits and billings1,999 
Revenue recognized in the period(2,009)
Translation6 
Balance at September 30, 2024
$622 
(In millions)Deferred Revenue
Balance at January 1, 2023
$508 
Customer deposits and billings1,684 
Revenue recognized in the period(1,563)
Translation1 
Balance at September 30, 2023
$630 
Deferred revenue liabilities of $607 million and $610 million as of September 30, 2024 and December 31, 2023, respectively, were included in Other current liabilities on the Consolidated Balance Sheets with the remaining balance presented in Other noncurrent liabilities.
A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at September 30, 2024 was approximately $15.9 billion. At September 30, 2024, approximately 71% of this backlog is targeted for delivery to customers in the next twelve months and the rest thereafter.