Revenue Recognition

6 Months Ended

Jun. 26, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

6. Revenue Recognition

Our primary source of revenue is from contracts with and purchase orders from customers. In many instances, our contract with a customer is the customer’s purchase order. Upon acceptance of the purchase order, a contract exists with a customer as it indicates approval and commitment of the parties, identifies the rights of both parties, identifies the payment terms, has commercial substance, and makes it probable that we will collect the consideration to which we will be entitled in exchange for the goods transferred to the customer.

We record estimates for cash discounts, defective and slow-moving product returns, promotional rebates, core return deposits and other discounts in the period the related product revenue is recognized (“Customer Credits”). The provision for Customer Credits is recorded as a reduction from gross sales, and reserves for Customer Credits are shown as an increase of accrued customer rebates and returns. Customer Credits are estimated based on contractual provisions, historical experience, and our assessment of current market conditions. Actual Customer Credits have not differed materially from estimated amounts for each period presented. Amounts billed to customers for shipping and handling are included in net sales. Costs associated with shipping and handling are included in cost of goods sold. We have concluded that our estimates of variable consideration are not constrained.

All our revenue was recognized under the point of time approach during the six months ended June 26, 2021 and June 27, 2020. We do not have significant financing arrangements with our customers, as our credit terms are all 365 days or less. Also, we do not receive noncash consideration (such as materials or equipment) from our customers to facilitate the fulfillment of our contracts.

Disaggregated Revenue

The following tables present our disaggregated net sales by type of major good / product line, and geography.

	Three Months Ended				Six Months Ended
(in thousands)	June 26, 2021		June 27, 2020		June 26, 2021		June 27, 2020
Powertrain	$	128,811	$	94,598	$	249,933	$	202,740
Chassis		98,551		66,025		184,038		139,400
Automotive body		66,970		58,825		135,632		123,457
Hardware		16,303		13,734		29,044		25,315
Net sales	$	310,635	$	233,182	$	598,647	$	490,912

	Three Months Ended				Six Months Ended
(in thousands)	June 26, 2021		June 27, 2020		June 26, 2021		June 27, 2020
Net sales to U.S. customers	$	295,081	$	222,563	$	568,231	$	463,955
Net sales to non-U.S. customers		15,554		10,619		30,416		26,957
Net sales	$	310,635	$	233,182	$	598,647	$	490,912