REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company manufactures and sells products, primarily to OEMs of light vehicles, and to a lesser extent, to other OEMs of commercial vehicles and off-highway vehicles, to certain Tier One vehicle systems suppliers and into the aftermarket. The Company’s payment terms are based on customary business practices and vary by customer type and products offered. We have evaluated the terms of our arrangements and determined that they do not contain significant financing components.

Generally, revenue is recognized upon shipment or delivery, in a limited number of arrangements, revenue is recognized as goods are produced and control transfers to the customer using the input cost-to-cost method. The Company recorded a contract asset of $16 million and $10 million at December 31, 2020 and 2019, respectively, for these arrangements. These amounts are reflected in Prepayments and other current assets in the Company's Consolidated Balance Sheets.

In limited instances, certain customers have provided payments in advance of receiving related products, typically at the onset of an arrangement prior to the beginning of production. These contract liabilities are reflected in Other current liabilities and Other non-current liabilities in the Company's Consolidated Balance Sheets and were $22 million and $6 million at December 31, 2020 and $10 million and $12 million at December 31, 2019, respectively. The increase in current contract liabilities was primarily due to the acquisition of Delphi Technologies. These amounts are reflected as revenue over the term of the arrangement (typically 3 to 7 years) as the underlying products are shipped.

Sales to certain aftermarket customers provide a right of return. The Company recognizes an estimated return asset (and adjusts for cost of sales) for the right to recover the products returned by the customer. ASC Topic 606 requires that return assets be presented separately from inventory. As of December 31, 2020, the Company had return assets of $8 million included in Prepayments and other current assets.

The Company recorded customer incentive payments of $43 million and $37 million in Prepayments and other current assets, and $166 million and $180 million recorded in Other non-current assets in the Consolidated Balance Sheets at December 31, 2020 and 2019.

The following table represents a disaggregation of revenue from contracts with customers by reporting segment and region, and reflects the results of former Delphi Technologies entities from the acquisition date of October 1, 2020:

	Year ended December 31, 2020
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Aftermarket		Total
North America	$	1,425	$	1,559	$	—	$	73	$	3,057
Europe	2,482		733		253		91		3,559
Asia	1,596		1,631		169		15		3,411
Other	95		17		13		13		138
Total	$	5,598	$	3,940	$	435	$	192	$	10,165

	Year ended December 31, 2019
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Aftermarket		Total
North America	$	1,584	$	1,791	$	—	$	—	$	3,375
Europe	2,980		830		—		—		3,810
Asia	1,468		1,365		—		—		2,833
Other	121		29		—		—		150
Total	$	6,153	$	4,015	$	—	$	—	$	10,168

	Year ended December 31, 2018
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Aftermarket		Total
North America	$	1,573	$	1,799	$	—	$	—	$	3,372
Europe	3,074		948		—		—		4,022
Asia	1,621		1,362		—		—		2,983
Other	122		31		—		—		153
Total	$	6,390	$	4,140	$	—	$	—	$	10,530