Revenue Recognition

On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers," using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning on or after January 1, 2018, are presented in accordance with ASC 606. Comparative financial information for reporting periods beginning prior to January 1, 2018, has not been adjusted and continues to be reported in accordance with the Company's revenue recognition policies prior to the adoption of ASC 606. The Company did not record a cumulative adjustment related to the adoption of ASC 606, and the effects of adoption were not significant.

The Company enters into contracts with its customers to provide production parts at the beginning of a vehicle’s life cycle. Contracts do not provide for a specified quantity of products, but once entered into, the Company is generally required to fulfill its customers’ purchasing requirements for the production life of the vehicle. These contracts may be terminated by the Company’s customers at any time. Historically, terminations of these contracts have been minimal. The Company receives annual purchase orders from its customers, which provide the annual terms for a particular production part, including price (but not quantities). Contracts may also provide for annual price reductions over the production life of the vehicle, and prices are adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors.

Revenue is recognized at a point in time when control of the product is transferred to the customer under standard commercial terms, as the Company does not have an enforceable right to payment prior to such transfer. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for those products based on the annual purchase orders, annual price reductions and ongoing price adjustments (some of which is accounted for as variable consideration). The Company does not believe that there will be significant changes to its estimates of variable consideration. The Company's customers pay for products received in accordance with payment terms that are customary within the industry. The Company's contracts with its customers do not have significant financing components.

The Company records a contract liability for advances received from its customers. As of March 31, 2018, there were no significant contract liabilities recorded. Further, there were no significant contract liabilities recognized in revenue during the first quarter of 2018.

Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of comprehensive income. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales in the condensed consolidated statements of comprehensive income.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue.

A summary of the Company’s revenue by reportable operating segment and geography is shown below (in millions):



	Three Months Ended
	March 31, 2018						April 1, 2017
	Seating		E-Systems		Total		Seating		E-Systems		Total
North America	$	1,740.1	$	315.0	$	2,055.1	$	1,707.8	$	281.4	$	1,989.2
Europe and Africa	1,752.2		691.0		2,443.2		1,339.0		576.4		1,915.4
Asia	686.1		358.0		1,044.1		691.1		232.2		923.3
South America	151.5		39.8		191.3		130.1		40.5		170.6
	$	4,329.9	$	1,403.8	$	5,733.7	$	3,868.0	$	1,130.5	$	4,998.5