REVENUE RECOGNITION |
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| REVENUE RECOGNITION | NOTE 11. REVENUE RECOGNITION Contract Balances Contract assets arise when we recognize revenue for providing goods or services in advance of billing our customers. Our contract assets typically relate to our long-term contracts where we recognize revenue using the cost-based input method and the revenue recognized exceeds the amount billed to the customer. Our contract assets also include receivables related to sales-type leases recognized over the lease term as the customer is billed. Contract assets are amortized as the customer is billed for services. Contract assets are recorded in “Trade accounts receivable and contract assets, net” on our Condensed Consolidated Balance Sheets. Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or service. Contract liabilities are recognized as revenue when the service or equipment has been provided to the customer. Contract liabilities are recorded in “Contract liabilities” or “Other noncurrent liabilities” on our Condensed Consolidated Balance Sheets. The following table summarizes our contract asset and liability balances:
Our beginning of period contract liability recorded as customer contract revenue during 2025 was $44 million. The following table presents the activity in our allowance for credit losses:
As of March 31, 2025, accounts receivable balances for certain customers in Mexico and Brazil have been fully reserved in “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets in the amount of $18 million. Performance Obligations As of March 31, 2025, the remaining performance obligations for our customer contracts was approximately $1.6 billion. Performance obligations expected to be satisfied within one year and greater than one year are 26% and 74%, . This amount and percentages exclude leasing arrangements and agreements with consumer customers. Contract Acquisition Costs The following table presents the activity in our contract acquisition costs, net:
Disaggregation of Revenue Geographic Information Revenue is attributed to geographic markets based upon the billing location of the customer. The following tables present our revenue from customer contracts disaggregated by primary geographic market:
Nature of Products and Services The following tables present our revenue disaggregated by the nature of products and services:
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