v3.26.1
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME
 6 Months Ended
Jun. 30, 2026
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 $304 million in the six months ended June 30, 2026 primarily due to the timing of revenue
recognition ahead of billing milestones on equipment and other service agreements. Contract liabilities and deferred income increased
$14,088 million in the six months ended June 30, 2026 primarily due to new collections received in excess of revenue recognition and as a
result of the acquisition of Prolec GE. Net contractual service agreements increased primarily due to revenues recognized of $2,689 million,
partially offset by billings of $2,392 million and net unfavorable changes in estimated profitability of $218 million.
Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $7,512 million and $7,074
million for the six months ended June 30, 2026 and 2025, respectively.
CONTRACT AND OTHER DEFERRED ASSETS
June 30, 2026
Power
Electrification
Wind
Total
Contractual service agreement assets
$5,399
$—
$—
$5,399
Equipment and other service agreement assets
1,640
1,531
953
4,123
Current contract assets
$7,039
$1,531
$953
$9,522
Non-current contract and other deferred assets(a)
444
8
1
453
Total contract and other deferred assets
$7,483
$1,538
$954
$9,976
December 31, 2025
Power
Electrification
Wind
Total
Contractual service agreement assets
$5,417
$—
$—
$5,417
Equipment and other service agreement assets
1,521
1,368
988
3,877
Current contract assets
$6,938
$1,368
$988
$9,294
Non-current contract and other deferred assets(a)
368
9
1
378
Total contract and other deferred assets
$7,305
$1,376
$990
$9,672
(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
June 30, 2026
Power
Electrification
Wind
Total
Contractual service agreement liabilities
$1,880
$—
$—
$1,880
Equipment and other service agreement liabilities
25,799
9,113
3,150
38,064
Contract liabilities and current deferred income
$27,679
$9,113
$3,150
$39,944
Non-current deferred income
5
11
77
93
Total contract liabilities and deferred income
$27,685
$9,124
$3,227
$40,037
December 31, 2025
Power
Electrification
Wind
Total
Contractual service agreement liabilities
$1,977
$—
$—
$1,977
Equipment and other service agreement liabilities
14,550
6,449
2,796
23,798
Contract liabilities and current deferred income
$16,527
$6,449
$2,796
$25,774
Non-current deferred income
20
13
142
175
Total contract liabilities and deferred income
$16,547
$6,462
$2,938
$25,950
Remaining Performance Obligation (RPO). As of June 30, 2026, the aggregate amount of the contracted revenues allocated to our
unsatisfied (or partially unsatisfied) performance obligations were $176,284 million. We expect to recognize revenue as we satisfy our
remaining performance obligations as follows:
(1)Equipment-related RPO of $87,821 million of which 36%, 65%, and 97% is expected to be recognized within 1, 2, and 5 years,
respectively, and the remaining thereafter.
(2)Services-related RPO of $88,463 million of which 16%, 54%, 79%, and 92% 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.