Revenue from Contracts with Customers

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts from Customers. These revenues are generated from the design and manufacture of specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers which can be either at a point in time or over time. Revenue is generally recognized at a point in time when control passes to customers upon shipment of the Company’s products and revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition.

Contract Assets and Liabilities

The Company’s contract assets primarily include unbilled amounts typically resulting from sales under contracts when the over time method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. These unbilled accounts receivable in contract assets are transferred to accounts receivable upon invoicing, typically when the right to payment becomes unconditional in which case payment is due based only upon the passage of time.

The Company’s contract liabilities primarily relate to billings and advance payments received from customers, and deferred revenue. These contract liabilities represent the Company’s obligation to transfer its products to its customers for which the Company has received, or is owed consideration from its customers. Contract liabilities are included in deferred revenue on the Company’s Condensed Consolidated Balance Sheets.

Contract assets and liabilities consisted of the following:



In thousands	March 31, 2019		December 31, 2018		Dollar Change
Contract assets	$	22,322	$	23,040	$	(718	)
Contract liabilities	$	3,418	$	4,537	$	(1,119	)

The $0.7 million decrease in contract assets from December 31, 2018 to March 31, 2019 was primarily due to timing of billings to customers.

The $1.1 million decrease in contract liabilities from December 31, 2018 to March 31, 2019 was primarily due to revenue recognized of $2.3 million in the first three months of 2019 related to contract liabilities at December 31, 2018, partially offset by an increase in customer deposits.

Disaggregated Revenue

The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the quarters ended March 31, 2019 and 2018 were as follows:



	Quarter Ended March 31, 2019
In thousands	Performance Materials		Technical Nonwovens		Thermal Acoustical Solutions		Eliminations and Other			Consolidated Net Sales

North America	$	46,377	$	37,189	$	63,602	$	(6,268	)	$	140,900
Europe	16,657		19,049		26,442		(206		)	61,942
Asia	1,546		9,368		4,269		—			15,183
Total Net Sales	$	64,580	$	65,606	$	94,313	$	(6,474	)	$	218,025



	Quarter Ended March 31, 2018
In thousands	Performance Materials		Technical Nonwovens		Thermal Acoustical Solutions		Eliminations and Other			Consolidated Net Sales

North America	$	19,161	$	39,133	$	69,979	$	(7,826	)	$	120,447
Europe	11,532		19,386		28,055		(185		)	58,788
Asia	—		9,022		3,403		—			12,425
Total Net Sales	$	30,693	$	67,541	$	101,437	$	(8,011	)	$	191,660