REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERSThe Company accounts for revenue in accordance with ASC 606, "Revenue from Contracts with Customers". Revenues are generated from the design and manufacture of specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when the control of products passes to the Company’s customers which can be either at a point in time or over time. Revenue is generally recognized at a point in time when control passes to customers upon shipment of the Company’s products and revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. The Company analyzes several factors, including, but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. Unfulfilled performance obligations are generally expected to be satisfied within one year.

Contract Assets and Liabilities

The Company’s contract assets primarily include unbilled amounts typically resulting from sales under contracts when the over time method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. These unbilled accounts receivable in contract assets are transferred to accounts receivable upon invoicing, typically when the right to payment becomes unconditional, in which case payment is due based only upon the passage of time.

The Company’s contract liabilities primarily relate to billings and advance payments received from customers and deferred revenue. These contract liabilities represent the Company’s obligation to transfer its products to its customers for which the Company has received, or is owed, consideration from its customers. Contract liabilities are included in Other accrued liabilities in the Company's Condensed Consolidated Balance Sheets.

Contract assets and liabilities consisted of the following:

In thousands	At March 31, 2021		At December 31, 2020		Dollar Change
Contract assets	$	25,959	$	32,403	$	(6,444)
Contract liabilities	$	3,786	$	3,686	$	100

The $6.4 million decrease in contract assets from December 31, 2020 to March 31, 2021 was primarily due to timing of tooling billings to customers and to a lesser extent, the billings on last-time buys of membrane-based filtration media initiated in December 2020 in the Company's Netherlands facility.

The $0.1 million increase in contract liabilities from December 31, 2020 to March 31, 2021 was primarily due to an increase in customer deposits, offset by $1.4 million of revenue recognized in the first three months of 2021 related to contract liabilities at December 31, 2020.

Disaggregated Revenue

The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing, and uncertainty of the Company's revenues and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the three-month periods ended March 31, 2021 and 2020 were as follows:

	For the Three Months Ended March 31, 2021								For the Three Months Ended March 31, 2020
In thousands	North America		Europe		Asia		Total Net Sales		North America		Europe		Asia		Total Net Sales
Performance Materials	$	58,874	$	16,924	$	3,535	$	79,333	$	45,917	$	17,275	$	2,028	$	65,220
Technical Nonwovens	35,838		16,899		8,938		61,675		35,731		16,938		4,734		57,403
Thermal Acoustical Solutions	60,653		26,113		4,278		91,044		57,101		23,540		3,120		83,761
Eliminations and Other	(4,678)		(275)		—		(4,953)		(5,677)		(180)		—		(5,857)
Total net sales	$	150,687	$	59,661	$	16,751	$	227,099	$	133,072	$	57,573	$	9,882	$	200,527