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REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2022
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. We have evaluated the terms of our 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 $19 million and $17 million at March 31, 2022 and December 31, 2021, respectively, for these arrangements. These amounts are reflected in Prepayments and other current assets in the Company’s Condensed 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 Condensed Consolidated
Balance Sheets and were $22 million and less than $1 million at March 31, 2022 and $21 million and $1 million at December 31, 2021, 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 March 31, 2022 and December 31, 2021, the Company recorded customer incentive payments of $37 million and $36 million, respectively, in Prepayments and other current assets, and $127 million and $137 million, respectively, in Other non-current assets in the Condensed Consolidated Balance Sheets.
The following tables represent a disaggregation of revenue from contracts with customers by reporting segment and region. Refer to Note 22, “Reporting Segments And Related Information,” to the Condensed Consolidated Financial Statements for more information.

Three Months Ended March 31, 2022
(in millions)Air Managemente-Propulsion & DrivetrainFuel InjectionAftermarketTotal
North America$529 $522 $45 $75 $1,171 
Europe796 240 223 99 1,358 
Asia526 575 144 14 1,259 
Other44 9 18 15 86 
Total$1,895 $1,346 $430 $203 $3,874 
Three Months Ended March 31, 2021
(in millions)Air Managemente-Propulsion & DrivetrainFuel InjectionAftermarketTotal
North America$532 $535 $3 $67 $1,137 
Europe833 276 271 102 1,482 
Asia572 602 137 13 1,324 
Other31 6 15 14 66 
Total$1,968 $1,419 $426 $196 $4,009