Revenue Recognition

3 Months Ended

Mar. 27, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

6. Revenue Recognition

Our primary source of revenue is from contracts with and purchase orders from customers. In many instances, our contract with a customer is the customer’s purchase order. Upon acceptance of the purchase order, a contract exists with a customer as it indicates approval and commitment of the parties, identifies the rights of both parties, identifies the payment terms, has commercial substance, and it is probable that we will collect the consideration to which we will be entitled in exchange for the goods transferred to the customer.

We record estimates for cash discounts, defective and slow-moving product returns, promotional rebates, core return deposits and other discounts in the period the related product revenue is recognized (“Customer Credits”). The provision for Customer Credits is recorded as a reduction from gross sales and reserves for Customer Credits are shown as an increase of accrued customer rebates and returns. Customer Credits are estimated based on contractual provisions, historical experience, and our assessment of current market conditions. Actual Customer Credits have not differed materially from estimated amounts for each period presented. Amounts billed to customers for shipping and handling are included in net sales. Costs associated with shipping and handling are included in cost of goods sold. We have concluded that our estimates of variable consideration are not constrained.

All our revenue was recognized under the point of time approach during the three months ended March 27, 2021 and March 28, 2020. We do not have significant financing arrangements with our customers, as our credit terms are all 365 days or less. Also, we do not receive noncash consideration (such as materials or equipment) from our customers to facilitate the fulfillment of our contracts.

Disaggregated Revenue

The following tables present our disaggregated net sales by type of major good / product line, and geography.

	Three Months Ended
(in thousands)	March 27, 2021		March 28, 2020
Powertrain	$	121,105	$	108,142
Chassis		85,510		73,375
Automotive body		68,645		64,632
Hardware		12,752		11,581
Net sales	$	288,012	$	257,730

	Three Months Ended
(in thousands)	March 27, 2021		March 28, 2020
Net sales to U.S. customers	$	273,150	$	241,392
Net sales to non-U.S. customers		14,862		16,338
Net sales	$	288,012	$	257,730