REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERSThe Company accounts for revenue in accordance with ASC 606, "Revenue from Contracts with Customers". 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 the 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. Unfulfilled performance obligations are generally expected to be satisfied within one year.

Contract Assets and Liabilities

The Company’s contract assets primarily include unbilled amounts typically resulting from sales under contracts when the overtime 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 obligations 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 Other accrued liabilities in the Company's Condensed Consolidated Balance Sheets.

Contract assets and liabilities consisted of the following:

In thousands	At June 30, 2021		At December 31, 2020		Dollar Change
Contract assets	$	22,756	$	32,403	$	(9,647)
Contract liabilities	$	3,251	$	3,686	$	(435)

The $9.6 million decrease in contract assets from December 31, 2020 to June 30, 2021 was primarily due to timing of tooling billings to customers and, to a lesser extent, the billings on last-time sales of membrane-based filtration media initiated in December 2020 in the Company's Netherlands facility.

The $0.4 million decrease in contract liabilities from December 31, 2020 to June 30, 2021 was primarily due to $2.7 million of revenue recognized in the first six months of 2021 related to contract liabilities at December 31, 2020, 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 revenues and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the three and six-month periods ended June 30, 2021 and 2020 were as follows:

	For the Three Months Ended June 30, 2021								For the Three Months Ended June 30, 2020
In thousands	North America		Europe		Asia		Total Net Sales		North America		Europe		Asia		Total Net Sales
Performance Materials	$	58,195	$	15,272	$	3,719	$	77,186	$	40,190	$	16,501	$	1,782	$	58,473
Technical Nonwovens	46,443		18,077		7,959		72,479		31,236		15,418		5,353		52,007
Thermal Acoustical Solutions	50,709		22,673		3,476		76,858		22,575		11,424		3,449		37,448
Eliminations and Other	(4,475)		(304)		—		(4,779)		(1,668)		(100)		—		(1,768)
Total net sales	$	150,872	$	55,718	$	15,154	$	221,744	$	92,333	$	43,243	$	10,584	$	146,160

	For the Six Months Ended June 30, 2021								For the Six Months Ended June 30, 2020
In thousands	North America		Europe		Asia		Total Net Sales		North America		Europe		Asia		Total Net Sales
Performance Materials	$	117,069	$	32,196	$	7,254	$	156,519	$	86,107	$	33,776	$	3,810	$	123,693
Technical Nonwovens	82,281		34,976		16,897		134,154		66,967		32,356		10,087		109,410
Thermal Acoustical Solutions	111,362		48,786		7,754		167,902		79,676		34,964		6,569		121,209
Eliminations and Other	(9,153)		(579)		—		(9,732)		(7,345)		(280)		—		(7,625)
Total net sales	$	301,559	$	115,379	$	31,905	$	448,843	$	225,405	$	100,816	$	20,466	$	346,687