REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company manufactures and sells products, primarily to OEMs of light vehicles and, to a lesser extent, to other OEMs of commercial vehicles and off-highway vehicles, to certain Tier One vehicle systems suppliers and into the aftermarket. The Company’s payment terms are based on customary business practices and vary by customer type and products offered. The Company has evaluated the terms of its arrangements and determined that they do not contain significant financing components.

Generally, revenue is recognized upon shipment or delivery; however, a limited number of the Company’s customer arrangements for its highly customized products with no alternative use provide the Company with the right to payment during the production process. As a result, for these limited arrangements, revenue is recognized as goods are produced and control transfers to the customer using the input cost-to-cost method. The Company recorded a contract asset of $17 million and $16 million at December 31, 2021 and 2020, respectively, for these arrangements. These amounts are reflected in Prepayments and other current assets in the Company’s Consolidated Balance Sheets.

In limited instances, certain customers have provided payments in advance of receiving related products, typically at the onset of an arrangement prior to the beginning of production. These contract liabilities are reflected as Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets and were $21 million and $1 million at December 31, 2021 and $22 million and $6 million at December 31, 2020, respectively. These amounts are reflected as revenue over the term of the arrangement (typically 3 to 7 years) as the underlying products are shipped and represent the Company’s remaining performance obligations as of the end of the period.

The Company continually seeks business development opportunities and at times provides customer incentives for new program awards. When the Company determines that the payments are incremental and incurred only if the new business is obtained and expects to recover these amounts from the customer over the term of the new business arrangement, the Company capitalizes these amounts. As of December 31, 2021 and 2020, the Company recorded customer incentive payments of $36 million and $43 million, respectively, in Prepayments and other current assets, and $137 million and $166 million, respectively, in Other non-current assets in the Consolidated Balance Sheets.

The following table represents a disaggregation of revenue from contracts with customers by reporting segment and region and includes the results of Delphi Technologies and AKASOL following the dates of acquisition, for the years ended December 31, 2021, 2020, and 2019. Refer to Note 24, Reporting Segments and Related Information to the Consolidated Financial Statements for more information.

	Year ended December 31, 2021
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Aftermarket		Total
North America	$	1,908	$	1,949	$	58	$	310	$	4,225
Europe	2,952		906		924		423		5,205
Asia	2,138		2,329		592		61		5,120
Other	148		25		63		52		288
Total	$	7,146	$	5,209	$	1,637	$	846	$	14,838

	Year ended December 31, 2020
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Aftermarket		Total
North America	$	1,425	$	1,559	$	—	$	73	$	3,057
Europe	2,482		733		253		91		3,559
Asia	1,596		1,631		169		15		3,411
Other	95		17		13		13		138
Total	$	5,598	$	3,940	$	435	$	192	$	10,165

	Year ended December 31, 2019
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Aftermarket		Total
North America	$	1,584	$	1,791	$	—	$	—	$	3,375
Europe	2,980		830		—		—		3,810
Asia	1,468		1,365		—		—		2,833
Other	121		29		—		—		150
Total	$	6,153	$	4,015	$	—	$	—	$	10,168