Note 17 - Revenue From Contracts With Customers

9 Months Ended

Sep. 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 $27 and $23 at September 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 September 30, 2020	Light Vehicle		Commercial Vehicle		Off-Highway		Power Technologies		Total
North America	$	694	$	190	$	60	$	125	$	1,069
Europe		94		50		321		112		577
South America		32		50		9		5		96
Asia Pacific		93		24		117		18		252
Total	$	913	$	314	$	507	$	260	$	1,994
Nine Months Ended September 30, 2020
North America	$	1,518	$	510	$	192	$	310	$	2,530
Europe		233		136		929		290		1,588
South America		72		138		22		12		244
Asia Pacific		235		63		297		41		636
Total	$	2,058	$	847	$	1,440	$	653	$	4,998

Three Months Ended September 30, 2019
North America	$	699	$	238	$	89	$	132	$	1,158
Europe		80		49		381		104		614
South America		34		85		11		4		134
Asia Pacific		117		26		101		14		258
Total	$	930	$	398	$	582	$	254	$	2,164
Nine Months Ended September 30, 2019
North America	$	2,042	$	745	$	245	$	412	$	3,444
Europe		256		181		1,243		325		2,005
South America		105		245		31		15		396
Asia Pacific		360		95		289		44		788
Total	$	2,763	$	1,266	$	1,808	$	796	$	6,633