Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Revenue is recognized for manufactured parts at a point in time, generally when products are shipped or delivered. The Company usually enters into agreements with customers to produce products at the beginning of a vehicle’s life. Blanket purchase orders received from customers and related documents generally establish the annual terms, including pricing, related to a vehicle model. Customers typically pay for parts based on customary business practices with payment terms generally between 30 and 90 days.

Consistent with the Company’s change in reportable segments as described in Note 1. “Overview”, the Company has revised its revenue disaggregation presentation to align with the new reportable segment structure. Revenue by customer group for the three months ended September 30, 2024 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
Passenger and Light Duty	$	345,944	$	307,158	$	—	$	653,102
Commercial	6,799		2,558		1,927		11,284
Other	622		4,023		16,322		20,967
Revenue	$	353,365	$	313,739	$	18,249	$	685,353

Revenue by customer group for the nine months ended September 30, 2024 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
Passenger and Light Duty	$	1,045,791	$	922,209	$	—	$	1,968,000
Commercial	22,150		8,409		6,145		36,704
Other	1,649		11,378		52,409		65,436
Revenue	$	1,069,590	$	941,996	$	58,554	$	2,070,140

Revenue by customer group for the three months ended September 30, 2023 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
Passenger and Light Duty	$	364,053	$	334,693	$	596	$	699,342
Commercial	6,612		3,208		1,838		11,658
Other	293		3,916		20,829		25,038
Revenue	$	370,958	$	341,817	$	23,263	$	736,038

Revenue by customer group for the nine months ended September 30, 2023 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
Passenger and Light Duty	$	1,070,182	$	938,005	$	2,649	$	2,010,836
Commercial	21,995		9,544		5,793		37,332
Other	738		12,033		81,297		94,068
Revenue	$	1,092,915	$	959,582	$	89,739	$	2,142,236

The passenger and light duty group consists of sales to automotive OEMs and automotive suppliers, while the commercial group represents sales to OEMs of on- and off-highway commercial equipment and vehicles. The other customer group includes sales related to specialty and adjacent markets.

Substantially all of the Company’s revenues were generated from sealing and fluid handling systems (consisting of fuel and brake delivery systems and fluid transfer systems) for use in passenger vehicles and light trucks manufactured by global OEMs.

A summary of the Company’s products is as follows:

Product Line	Description
Sealing Systems	Protect vehicle interiors from weather, dust and noise intrusion for an improved driving experience; provide aesthetic and functional class-A exterior surface treatment.
Fuel and Brake Delivery Systems	Sense, deliver and control fluids to fuel and brake systems.
Fluid Transfer Systems	Sense, deliver and control fluids and vapors for optimal powertrain & HVAC operation.

Revenue by geographical region for the three months ended September 30, 2024 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
North America	$	158,564	$	236,718	$	—	$	395,282
Europe	107,022		29,637		—		136,659
Asia Pacific	61,264		37,935		—		99,199
South America	26,515		9,449		—		35,964
Corporate, eliminations and other	—		—		18,249		18,249
Revenue	$	353,365	$	313,739	$	18,249	$	685,353

Revenue by geographical region for the nine months ended September 30, 2024 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
North America	$	467,435	$	702,306	$	—	$	1,169,741
Europe	355,836		95,974		—		451,810
Asia Pacific	176,468		117,976		—		294,444
South America	69,851		25,740		—		95,591
Corporate, eliminations and other	—		—		58,554		58,554
Revenue	$	1,069,590	$	941,996	$	58,554	$	2,070,140

Revenue by geographical region for the three months ended September 30, 2023 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
North America	$	150,913	$	259,993	$	—	$	410,906
Europe	116,466		31,084		—		147,550
Asia Pacific	78,128		41,843		—		119,971
South America	25,451		8,897		—		34,348
Corporate, eliminations and other	—		—		23,263		23,263
Revenue	$	370,958	$	341,817	$	23,263	$	736,038

Revenue by geographical region for the nine months ended September 30, 2023 was as follows:

	Sealing Systems		Fluid Handling Systems		Other		Consolidated
North America	$	427,183	$	717,650	$	—	$	1,144,833
Europe	389,237		98,064		—		487,301
Asia Pacific	203,490		120,170		—		323,660
South America	73,005		23,698		—		96,703
Corporate, eliminations and other	—		—		89,739		89,739
Revenue	$	1,092,915	$	959,582	$	89,739	$	2,142,236

Contract Estimates

The amount of revenue recognized is usually based on the purchase order price and adjusted for variable consideration, including pricing concessions. The Company accrues for pricing concessions by reducing revenue as products are shipped or delivered. The accruals are based on historical experience, anticipated performance and management’s best judgment. The Company also generally has ongoing adjustments to customer pricing arrangements based on the content and cost of its products. Such pricing accruals are adjusted as they are settled with customers. Customer returns, which are infrequent, are usually related to quality or shipment issues and are recorded as a reduction of revenue. The Company generally does not recognize significant return obligations due to their infrequent nature.

Contract Balances

The Company’s contract assets consist of unbilled amounts associated with variable pricing arrangements in the Asia Pacific region. Once pricing is finalized, contract assets are transferred to accounts receivable. As a result, the timing of revenue recognition and billings, as well as changes in foreign exchange rates, will impact contract assets on an ongoing basis. Contract assets were not materially impacted by any other factors during the nine months ended September 30, 2024.

The Company’s contract liabilities consist of advance payments received and due from customers. Net contract assets (liabilities) consisted of the following:

	September 30, 2024		December 31, 2023		Change
Contract assets	$	698	$	437	$	261
Contract liabilities	(15)		(15)		—
Net contract assets	$	683	$	422	$	261

Other

The Company, at times, enters into agreements that provide for lump sum payments to customers. These payment agreements are recorded as a reduction of revenue during the period in which the commitment is made, unless the payment is contractually recoverable. Amounts related to commitments of future payments to customers in the condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023 were current liabilities of $9,509 and $10,164, respectively, and long-term liabilities of $1,662 and $4,293, respectively.

The Company provides assurance-type warranties to its customers. Such warranties provide customers with assurance that the related product will function as intended and complies with any agreed-upon specifications, and are recognized in cost of products sold.