Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Revenue is recognized for manufactured parts at a point in time, generally when products are shipped or delivered. The Company usually enters into agreements with customers to produce products at the beginning of a vehicle’s life. Blanket purchase orders received from customers and related documents generally establish the annual terms, including pricing, related to a vehicle model. Customers typically pay for parts based on customary business practices with payment terms generally between 30 and 90 days.

Revenue by customer group for the three months ended March 31, 2023 was as follows:

	North America		Europe		Asia Pacific		South America		Corporate, Eliminations and Other		Consolidated
Passenger and Light Duty	$	357,126	$	155,193	$	94,615	$	28,838	$	—	$	635,772
Commercial	4,105		6,522		170		3		1,782		12,582
Other	3,896		140		—		—		30,068		34,104
Revenue	$	365,127	$	161,855	$	94,785	$	28,841	$	31,850	$	682,458

Revenue by customer group for the three months ended March 31, 2022 was as follows:

	North America		Europe		Asia Pacific		South America		Corporate, Eliminations and Other		Consolidated
Passenger and Light Duty	$	314,587	$	125,368	$	103,404	$	21,513	$	—	$	564,872
Commercial	3,674		5,923		347		6		1,657		11,607
Other	3,633		123		2		—		32,747		36,505
Revenue	$	321,894	$	131,414	$	103,753	$	21,519	$	34,404	$	612,984

The passenger and light duty customer group consists of sales to automotive OEMs and automotive suppliers, while the commercial customer group represents sales to OEMs of on- and off-highway commercial equipment and vehicles. The other customer group includes sales related to specialty and adjacent markets.

Substantially all of the Company’s revenues were generated from sealing and fluid handling (consisting of fuel and brake delivery and fluid transfer) systems for use in passenger vehicles and light trucks manufactured by global OEMs.

A summary of the Company’s products is as follows:

Product Line	Description
Sealing Systems	Protect vehicle interiors from weather, dust and noise intrusion for improved driving experience; provide aesthetic and functional class-A exterior surface treatment
Fuel and Brake Delivery Systems	Sense, deliver and control fluids to fuel and brake systems
Fluid Transfer Systems	Sense, deliver and control fluids and vapors for optimal powertrain & HVAC operation

Revenue by product line for the three months ended March 31, 2023 was as follows:

	North America		Europe		Asia Pacific		South America		Corporate, Eliminations and Other		Consolidated
Sealing systems	$	138,121	$	130,975	$	59,399	$	22,640	$	—	$	351,135
Fluid handling:
Fuel and brake delivery systems	119,295		26,491		18,907		4,447		—		169,140
Fluid transfer systems	107,711		4,389		16,479		1,754		—		130,333
Total fluid handling	227,006		30,880		35,386		6,201		—		299,473
Other	—		—		—		—		31,850		31,850
Revenue	$	365,127	$	161,855	$	94,785	$	28,841	$	31,850	$	682,458

Revenue by product line for the three months ended March 31, 2022 was as follows:

	North America		Europe		Asia Pacific		South America		Corporate, Eliminations and Other		Consolidated
Sealing systems	$	127,552	$	105,134	$	63,036	$	16,110	$	—	$	311,832
Fluid handling:
Fuel and brake delivery systems	102,721		23,038		23,747		3,561		—		153,067
Fluid transfer systems	91,621		3,242		16,970		1,848		—		113,681
Total fluid handling	194,342		26,280		40,717		5,409		—		266,748
Other	—		—		—		—		34,404		34,404
Revenue	$	321,894	$	131,414	$	103,753	$	21,519	$	34,404	$	612,984

Contract Estimates

The amount of revenue recognized is usually based on the purchase order price and adjusted for variable consideration, including pricing concessions. The Company accrues for pricing concessions by reducing revenue as products are shipped or delivered. The accruals are based on historical experience, anticipated performance and management’s best judgment. The Company also generally has ongoing adjustments to customer pricing arrangements based on the content and cost of its products. Such pricing accruals are adjusted as they are settled with customers. Customer returns, which are infrequent, are usually related to quality or shipment issues and are recorded as a reduction of revenue. The Company generally does not recognize significant return obligations due to their infrequent nature.

Contract Balances

The Company’s contract assets consist of unbilled amounts associated with variable pricing arrangements in the Asia Pacific region. Once pricing is finalized, contract assets are transferred to accounts receivable. As a result, the timing of revenue recognition and billings, as well as changes in foreign exchange rates, will impact contract assets on an ongoing basis. Contract assets were not materially impacted by any other factors during the three months ended March 31, 2023.

The Company’s contract liabilities consist of advance payments received and due from customers. Net contract assets (liabilities) consisted of the following:

	March 31, 2023		December 31, 2022		Change
Contract assets	$	275	$	530	$	(255)
Contract liabilities	(15)		(15)		—
Net contract assets (liabilities)	$	260	$	515	$	(255)

Other

The Company, at times, enters into agreements that provide for lump sum payments to customers. These payment agreements are recorded as a reduction of revenue during the period the commitment is made, unless the payment is contractually recoverable. Amounts related to commitments of future payments to customers on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 were current liabilities of $11,126 and $9,325, respectively, and long-term liabilities of $5,560 and $5,899, respectively.

The Company provides assurance-type warranties to its customers. Such warranties provide customers with assurance that the related product will function as intended and complies with any agreed-upon specifications, and are recognized in costs of products sold.