REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 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 $18 million and $17 million at June 30, 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 $20 million and less than $1 million at June 30, 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 June 30, 2022 and December 31, 2021, the Company recorded customer incentive payments of $35 million and $36 million, respectively, in Prepayments and other current assets, and $114 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. The balances for the three and six months ended June 30, 2021 have been recast for inter-segment transitions of certain businesses that were completed during the three months ended June 30, 2022. Refer to Note 22, “Reporting Segments And Related Information,” to the Condensed Consolidated Financial Statements for more information.

	Three Months Ended June 30, 2022
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Aftermarket		Total
North America	$	515	$	465	$	107	$	184	$	1,271
Europe	746		251		231		102		1,330
Asia	451		488		118		17		1,074
Other	46		—		18		20		84
Total	$	1,758	$	1,204	$	474	$	323	$	3,759
	Three Months Ended June 30, 2021
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Aftermarket		Total
North America	$	407	$	368	$	58	$	169	$	1,002
Europe	763		251		281		108		1,403
Asia	523		584		155		17		1,279
Other	38		—		17		19		74
Total	$	1,731	$	1,203	$	511	$	313	$	3,758
	Six Months Ended June 30, 2022
(In millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Aftermarket		Total
North America	$	974	$	894	$	223	$	352	$	2,443
Europe	1,523		491		472		201		2,687
Asia	967		1,064		272		30		2,333
Other	90		—		36		44		170
Total	$	3,554	$	2,449	$	1,003	$	627	$	7,633
	Six Months Ended June 30, 2021
(In millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Aftermarket		Total
North America	$	869	$	820	$	131	$	319	$	2,139
Europe	1,571		527		577		210		2,885
Asia	1,085		1,186		302		30		2,603
Other	69		—		32		39		140
Total	$	3,594	$	2,533	$	1,042	$	598	$	7,767