Revenue (Tables)

12 Months Ended

Dec. 31, 2024

Disaggregation of Revenue [Abstract]

Disaggregation of Revenue [Table Text Block]

Net revenues by geography and major type of good or service for the years ended at December 31 were as follows:


In millions	2024		2023		2022
Americas
Equipment	$	10,608.2	$	9,259.7	$	8,575.1
Services	5,295.0		4,572.3		4,065.7
Total Americas	$	15,903.2	$	13,832.0	$	12,640.8
EMEA
Equipment	$	1,780.3	$	1,700.5	$	1,420.9
Services	776.4		700.7		613.6
Total EMEA	$	2,556.7	$	2,401.2	$	2,034.5
Asia Pacific
Equipment	$	926.0	$	1,015.2	$	934.8
Services	452.3		429.2		381.6
Total Asia Pacific	$	1,378.3	$	1,444.4	$	1,316.4

Total Net revenues	$	19,838.2	$	17,677.6	$	15,991.7

Contract with Customer, Asset and Liability [Table Text Block]

The opening and closing balances of contract assets and contract liabilities arising from contracts with customers for the period ended December 31, 2024 and December 31, 2023 were as follows:


In millions	Location on Consolidated Balance Sheet	2024		2023

Contract assets - current	Other current assets	$	427.3	$	458.4

Contract liabilities - current	Accrued expenses and other current liabilities	1,310.9		1,301.2
Contract liabilities - noncurrent	Other noncurrent liabilities	294.0		247.2

The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets, and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheets. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Contract assets relate to the conditional right to consideration for any completed performance under the contract when costs are incurred in excess of billings under the percentage of completion methodology. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities relate to payments received in advance of performance under the contract or when the Company has a right to consideration that is unconditional before it transfers a good or service to the customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract. During the years ended December 31, 2024 and 2023, changes in contract asset and liability balances were not materially impacted by any other factors.

Approximately 72% of the contract liability balance at December 31, 2023 was recognized as revenue during the year ended December 31, 2024. Additionally, approximately 18% of the contract liability balance at December 31, 2024 was classified as noncurrent and not expected to be recognized as revenue in the next 12 months.

Trane Technologies plc 10-K