Revenue from Contract with Customer [Text Block] | Revenue The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers , which was adopted on January 1, 2018 using the modified retrospective method. Revenue by customer group for the three months ended September 30, 2018 was as follows: North America Europe Asia Pacific South America Consolidated Automotive $ 441,142 $ 201,885 $ 136,147 $ 25,466 $ 804,640 Commercial 5,926 7,693 4 101 13,724 Other 24,485 18,754 4 46 43,289 Revenue $ 471,553 $ 228,332 $ 136,155 $ 25,613 $ 861,653 Revenue by customer group for the nine months ended September 30, 2018 was as follows: North America Europe Asia Pacific South America Consolidated Automotive $ 1,395,263 $ 710,197 $ 433,309 $ 75,328 $ 2,614,097 Commercial 17,025 26,830 11 341 44,207 Other 36,051 62,830 4 117 99,002 Revenue $ 1,448,339 $ 799,857 $ 433,324 $ 75,786 $ 2,757,306 The automotive group consists of sales to automotive OEMs and automotive suppliers, while the commercial group represents sales to OEMs of on- and off-highway commercial equipment and vehicles. The other customer group includes sales related to specialty and adjacent markets. Substantially all the Company’s revenues are generated from sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global OEMs. A summary of the Company’s products is as follows: Product Line Description Sealing Systems Protect vehicle interiors from weather, dust and noise intrusion for improved driving experience; provide aesthetic and functional class-A exterior surface treatment Fuel & Brake Delivery Systems Sense, deliver and control fluids to fuel and brake systems Fluid Transfer Systems Sense, deliver and control fluids and vapors for optimal powertrain & HVAC operation Anti-Vibration Systems Control and isolate vibration and noise in the vehicle to improve ride and handling Revenue by product line for the three months ended September 30, 2018 was as follows: North America Europe Asia Pacific South America Consolidated Sealing systems $ 149,074 $ 142,342 $ 107,940 $ 19,398 $ 418,754 Fuel and brake delivery systems 136,903 31,752 22,044 6,122 196,821 Fluid transfer systems 104,058 19,642 4,309 93 128,102 Anti-vibration systems 63,563 15,328 1,862 — 80,753 Other 17,955 19,268 — — 37,223 Consolidated $ 471,553 $ 228,332 $ 136,155 $ 25,613 $ 861,653 Revenue by product line for the nine months ended September 30, 2018 was as follows: North America Europe Asia Pacific South America Consolidated Sealing systems $ 487,757 $ 502,431 $ 342,314 $ 56,786 $ 1,389,288 Fuel and brake delivery systems 415,012 107,366 68,373 18,698 609,449 Fluid transfer systems 331,226 65,706 15,965 302 413,199 Anti-vibration systems 195,835 57,077 6,672 — 259,584 Other 18,509 67,277 — — 85,786 Consolidated $ 1,448,339 $ 799,857 $ 433,324 $ 75,786 $ 2,757,306 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. The Company has one major performance obligation category: manufactured parts. A contract’s transaction price is allocated to each distinct performance obligation and recognized when the performance obligation is satisfied. It is not unusual for the Company’s contracts to include multiple performance obligations. For such contracts, the Company generally allocates the contract’s transaction price to each performance obligation based on the purchase order or other arranged pricing. The Company recognizes revenue at a point in time, generally when products are shipped or delivered. The point at which revenue is recognized often depends on the shipping terms. The Company usually enters agreements with customers to produce products at the beginning of a vehicle’s life. Blanket purchase orders received from customers and related documents generally establish the annual terms, including pricing, related to a vehicle model. Although purchase orders do not usually specify quantities, fulfillment of customers’ purchasing requirements can be the Company’s obligation for the entire production life of the vehicle. These agreements generally may be terminated by the Company’s customer at any time, but such cancellations have historically been minimal. Customers typically pay for parts based on customary business practices with payment terms generally between 30 and 90 days. The Company has no significant financing arrangements with customers. The Company applies the optional exemption to forgo disclosing information about its remaining performance obligations because its contracts usually have an original expected duration of one year or less. It also applies an accounting policy to treat shipping and handling costs that are incurred after revenue is recognizable as a fulfillment activity by expensing such costs as incurred, instead of as a separate performance obligation. This is consistent with the Company’s historical accounting practices. The Company has chosen to present revenue net of sales and other similar taxes, which is also consistent with its historical accounting practices. Contract Estimates The amount of revenue recognized is usually based on the purchase order price and adjusted for variable consideration, including pricing concessions. The Company accrues for pricing concessions by reducing revenue as products are shipped or delivered. The accruals are based on historical experience, anticipated performance and management’s best judgment. The Company also generally has ongoing adjustments to customer pricing arrangements based on the content and cost of its products. Such pricing accruals are adjusted as they are settled with customers. Customer returns are usually related to quality or shipment issues and are recorded as a reduction of revenue. The Company generally does not recognize significant return obligations due to their infrequent nature. Contract Balances The Company’s contract assets consist of unbilled amounts associated with variable pricing arrangements in its Asia Pacific region. Once pricing is finalized, contract assets are transferred to accounts receivable. As a result, the timing of revenue recognition and billings, as well as changes in foreign exchange rates, will impact contract assets on an ongoing basis. Changes during the nine month period ended September 30, 2018 were not materially impacted by any other factors. The Company’s contract liabilities consist of advance payments received and due from customers. Net contract assets (liabilities) consisted of the following: September 30, 2018 January 1, 2018 Change Contract assets $ 2,849 $ 4,604 $ (1,755 ) Contract liabilities (646 ) — (646 ) Net contract assets (liabilities) $ 2,203 $ 4,604 $ (2,401 ) Other The Company provides assurance-type warranties to its customers. Such warranties provide customers with assurance that the related product will function as intended and complies with any agreed-upon specifications, and are recognized in costs of products sold. |