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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 30, 2024
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 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 $16 million and $18 million at June 30, 2024 and December 31, 2023, 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 in the Condensed Consolidated Balance Sheets and were $15 million at June 30, 2024 and $18 million at December 31, 2023. 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, 2024 and December 31, 2023, the Company recorded customer incentive payments of $25 million and $27 million, respectively, in Prepayments and other current assets, and $38 million and $58 million, respectively, in Other non-current assets in the Condensed Consolidated Balance Sheets.
The Company’s products can be disaggregated by two types: eProducts and Foundational products. eProducts include all products utilized on or for electric vehicles (“EVs”) plus those same products and components that are included in hybrid powertrains whose underlying technologies are adaptable or applicable to those used in or for EVs. Foundational products include all products utilized on internal combustion engines plus those same products and components that are also included in hybrid powertrains. The following table represents a disaggregation of revenue from contracts with customers by Foundational products and eProducts for the three and six months ended June 30, 2024 and 2023.
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2024202320242023
Foundational products$3,027 $3,164 $6,116 $6,132 
eProducts576 507 1,082 922 
Total$3,603 $3,671 $7,198 $7,054 
The following tables represent a disaggregation of revenue from contracts with customers by reportable segment and region. Refer to Note 22, “Reportable Segments,” to the Condensed Consolidated Financial Statements for more information.
Three Months Ended June 30, 2024
(in millions)Air ManagementDrivetrain & Battery SystemsePropulsionTotal
North America$529 $427 $92 $1,048 
Europe864 368 128 1,360 
Asia509 390 235 1,134 
Other50 11 — 61 
Total$1,952 $1,196 $455 $3,603 
Three Months Ended June 30, 2023
(in millions)Air ManagementDrivetrain & Battery SystemsePropulsionTotal
North America$558 $414 $142 $1,114 
Europe863 351 70 1,284 
Asia529 350 334 1,213 
Other56 2 2 60 
Total$2,006 $1,117 $548 $3,671 
Six Months Ended June 30, 2024
(in millions)Air ManagementDrivetrain & Battery SystemsePropulsionTotal
North America$1,089 $828 $144 $2,061 
Europe1,773 754 247 2,774 
Asia997 756 494 2,247 
Other101 15 — 116 
Total$3,960 $2,353 $885 $7,198 
Six Months Ended June 30, 2023
(in millions)Air ManagementDrivetrain & Battery SystemsePropulsionTotal
North America$1,080 $785 $270 $2,135 
Europe1,758 651 132 2,541 
Asia1,020 633 610 2,263 
Other108 3 4 115 
Total$3,966 $2,072 $1,016 $7,054