Note 17 - Revenue From Contracts With Customers

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

We generate revenue from selling production parts to original equipment manufacturers (OEMs) and service parts to OEMs and aftermarket customers. While we provide production and service parts to certain OEMs under awarded multi-year programs, these multi-year programs do not contain any commitment to volume by the customer. As such, individual customer releases or purchase orders represent the contract with the customer. Our customer contracts do not provide us with an enforceable right to payment for performance completed to date throughout the contract term. As such, we recognize part sales revenue at the point in time when the parts are shipped, and risk of loss has transferred to the customer. We have elected to continue to include shipping and handling fees billed to customers in revenue, while including costs of shipping and handling in costs of sales. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate government agencies. Payment terms with our customers are established based on industry and regional practices and generally do not exceed 180 days.

Certain of our customer contracts include rebate incentives. We estimate expected rebates and accrue the corresponding refund liability, as a reduction of revenue, at the time covered product is sold to the customer based on anticipated customer purchases during the rebate period and contractual rebate percentages. Refund liabilities are included in other accrued liabilities on our consolidated balance sheet. We provide standard fitness for use warranties on the products we sell, accruing for estimated costs related to product warranty obligations at time of sale. See Note 14 for additional information.

Contract liabilities are primarily comprised of cash deposits made by customers with cash in advance payment terms. Generally, our contract liabilities turn over frequently given our relatively short production cycles. Contract liabilities were $26 and $23 at June 30, 2020 and December 31, 2019. Contract liabilities are included in other accrued liabilities on our consolidated balance sheet.

Disaggregation of revenue —

The following table disaggregates revenue for each of our operating segments by geographical market:

Three Months Ended June 30, 2020	Light Vehicle		Commercial Vehicle		Off-Highway		Power Technologies		Total
North America	$	238	$	121	$	58	$	62	$	479
Europe		37		37		259		64		397
South America		10		25		6		2		43
Asia Pacific		52		17		78		12		159
Total	$	337	$	200	$	401	$	140	$	1,078
Six Months Ended June 30, 2020
North America	$	824	$	320	$	132	$	185	$	1,461
Europe		139		86		608		178		1,011
South America		40		88		13		7		148
Asia Pacific		142		39		180		23		384
Total	$	1,145	$	533	$	933	$	393	$	3,004

Three Months Ended June 30, 2019
North America	$	683	$	254	$	98	$	139	$	1,174
Europe		85		65		455		108		713
South America		38		85		11		6		140
Asia Pacific		121		33		110		15		279
Total	$	927	$	437	$	674	$	268	$	2,306
Six Months Ended June 30, 2019
North America	$	1,343	$	507	$	156	$	280	$	2,286
Europe		176		132		862		221		1,391
South America		71		160		20		11		262
Asia Pacific		243		69		188		30		530
Total	$	1,833	$	868	$	1,226	$	542	$	4,469