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CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME
 9 Months Ended
Sep. 30, 2025
Contractors [Abstract]  
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME
Contract assets reflect revenue recognized on contracts in excess of billings based on contractual terms. Contract liabilities primarily
represent cash received from customers under ordinary commercial payment terms in advance of delivery of equipment orders or servicing
of customers’ installed base.
Contract and other deferred assets increased $795 million in the nine months ended September 30, 2025 primarily due to the timing of
revenue recognition ahead of billing milestones on equipment and other service agreements. Contract liabilities and deferred income
increased $2,560 million in the nine months ended September 30, 2025 primarily due to new collections received in excess of revenue
recognition at Power and Electrification, partially offset by revenue recognition in excess of collections at Wind. Net contractual service
agreements increased primarily due to revenues recognized of $3,824 million, partially offset by billings of $3,781 million and net
unfavorable changes in estimated profitability of $36 million.
Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $9,754 million and $7,761
million for the nine months ended September 30, 2025 and 2024, respectively.
CONTRACT AND OTHER DEFERRED ASSETS
September 30, 2025
Power
Wind
Electrification
Total
Contractual service agreement assets
$5,535
$—
$—
$5,535
Equipment and other service agreement assets
1,712
842
1,396
3,950
Current contract assets
$7,247
$842
$1,396
$9,485
Non-current contract and other deferred assets(a)
474
2
11
486
Total contract and other deferred assets
$7,720
$844
$1,406
$9,971
December 31, 2024
Power
Wind
Electrification
Total
Contractual service agreement assets
$5,321
$—
$—
$5,321
Equipment and other service agreement assets
1,622
538
1,139
3,300
Current contract assets
$6,944
$538
$1,139
$8,621
Non-current contract and other deferred assets(a)
536
8
11
555
Total contract and other deferred assets
$7,479
$546
$1,150
$9,176
(a) Primarily represents amounts due from customers at Gas Power for the sale of services upgrades, which we collect through incremental
fixed or usage-based fees from servicing the equipment under contractual service agreements.
CONTRACT LIABILITIES AND DEFERRED INCOME
September 30, 2025
Power
Wind
Electrification
Total
Contractual service agreement liabilities
$1,989
$—
$—
$1,989
Equipment and other service agreement liabilities
10,617
2,042
5,204
17,865
Current deferred income
21
227
49
298
Contract liabilities and current deferred income
$12,627
$2,269
$5,254
$20,151
Non-current deferred income
18
121
14
153
Total contract liabilities and deferred income
$12,645
$2,390
$5,268
$20,304
December 31, 2024
Power
Wind
Electrification
Total
Contractual service agreement liabilities
$1,789
$—
$—
$1,789
Equipment and other service agreement liabilities
7,879
3,684
3,946
15,511
Current deferred income
6
193
88
287
Contract liabilities and current deferred income
$9,674
$3,877
$4,034
$17,587
Non-current deferred income
29
112
16
157
Total contract liabilities and deferred income
$9,703
$3,989
$4,050
$17,744
Remaining Performance Obligation (RPO). As of September 30, 2025, the aggregate amount of the contracted revenues allocated to our
unsatisfied (or partially unsatisfied) performance obligations were $135,269 million. We expect to recognize revenue as we satisfy our
remaining performance obligations as follows:
(1)Equipment-related RPO of $54,092 million of which 41%, 71%, and 97% is expected to be recognized within 1, 2, and 5 years,
respectively, and the remaining thereafter.
(2)Services-related RPO of $81,177 million of which 17%, 53%, 78%, and 91% is expected to be recognized within 1, 5, 10, and 15
years, respectively, and the remaining thereafter. 
Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related RPO.