REVENUE FROM CONTRACTS WITH CUSTOMERS
The Company manufactures and sells products and solutions, primarily to OEMs of commercial vehicle, industrial applications and light 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. The Company has evaluated the terms of its arrangements and determined that they do not contain significant financing components.
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. As of December 31, 2025, the balance of contract liabilities was $17 million, of which $7 million was reflected in Other current liabilities and $10 million was reflected as Other non-current liabilities. As of December 31, 2024, the balance of contract liabilities was $7 million, of which $3 million was reflected in Other current liabilities and $4 million was reflected as Other non-current liabilities. These amounts are reflected as revenue over the term of the arrangement (typically three to seven years) as the underlying products are shipped and represent the Company’s remaining performance obligations as of the end of the period.
The following table represents a disaggregation of revenue from contracts with customers by reportable segment and region for the years ended December 31, 2025, 2024, and 2023. Refer to Note 24, “Reportable Segments and Related Information” to the Consolidated Financial Statements, for more information.
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| Year Ended December 31, 2025 |
| (In millions) | Fuel Systems | | Aftermarket | | Total |
| Americas | $ | 750 | | | $ | 736 | | | $ | 1,486 | |
| Europe | 895 | | | 496 | | | 1,391 | |
| Asia | 532 | | | 74 | | | 606 | |
| Total | $ | 2,177 | | | $ | 1,306 | | | $ | 3,483 | |
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| Year Ended December 31, 2024 |
| (In millions) | Fuel Systems | | Aftermarket | | Total |
| Americas | $ | 722 | | | $ | 736 | | | $ | 1,458 | |
| Europe | 941 | | | 453 | | | 1,394 | |
| Asia | 468 | | | 83 | | | 551 | |
| Total | $ | 2,131 | | | $ | 1,272 | | | $ | 3,403 | |
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| Year Ended December 31, 2023 |
| (In millions) | Fuel Systems | | Aftermarket | | Total |
| Americas | $ | 744 | | | $ | 744 | | | $ | 1,488 | |
| Europe | 1,019 | | | 406 | | | 1,425 | |
| Asia | 512 | | | 75 | | | 587 | |
| Total | $ | 2,275 | | | $ | 1,225 | | | $ | 3,500 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.