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Revenue Recognition (Notes) | 6 Months Ended
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Jun. 30, 2018
Deferred Revenue Disclosure [Abstract] |
Revenue Recognition [Text Block] | Revenue Recognition Disaggregated revenue by geographical market and product lines is as follows:
| Three Months Ended June 30 |  | Six Months Ended June 30
| 2018 |  | 2018
| (Dollars in Millions)
Geographical Markets (a) |  |  |
Asia | $ | 302 |  |  | $ | 624 |
Europe | 261 |  |  | 536 |
Americas | 205 |  |  | 432 |
Hedging impacts and eliminations | (10 | ) |  | (20 | )
| $ | 758 |  |  | $ | 1,572 |
(a) Company sales based on geographic region where sale originates and not where customer is located.
| Three Months Ended June 30 |  | Six Months Ended June 30
| 2018 |  | 2018
| (Dollars in Millions)
Product Lines |  |  |
Instrument clusters | $ | 307 |  |  | $ | 633 |
Audio and infotainment | 194 |  |  | 402 |
Information displays | 126 |  |  | 266 |
Climate controls | 32 |  |  | 71 |
Body and security | 30 |  |  | 61 |
Telematics | 16 |  |  | 34 |
Other (includes HUD) | 54 |  |  | 105 |
Hedging impacts | (1 | ) |  | — |
| $ | 758 |  |  | $ | 1,572 |
The Company generates revenue from the production of automotive vehicle cockpit electronics parts sold to OEM’s, or Tier 1 suppliers at the direction of the OEM, under long term supply agreements supporting new vehicle production. Such agreements may also require related production for service parts, subsequent to initial vehicle production periods. In connection with the sale of electronics parts, the Company is subject to typical assurance warranty obligations that only cover the compliance of the electronics parts produced according to agreed-upon specifications. For further detail on the Company’s warranty obligations see Note 16 "Commitments and Contingencies." Performance Obligations The Company’s contracts with customers involve various governing documents (Sourcing Agreements, Master Purchase Agreements, Terms and Conditions Agreements, etc.) which do not reach the level of a performance obligation of the Company until the Company receives either a purchase order and/or a customer release for a specific number of parts at a specified price, at which point the collective group of documents represent an enforceable contract. While the long term supply agreements generally range from three to five years, customers make no commitments to volumes, and pricing or specifications can change prior to or during production. The Company recognizes revenue when control of the parts produced are transferred to the customer according to the terms of the contract, which is usually when the parts are shipped or delivered to the customer’s premises. Customers are generally invoiced upon shipment or delivery and payment generally occurs within 45 to 90 days. Customers in China are often invoiced one month after shipment or delivery. Customer returns, when they occur, relate to quality rework issues and are not connected to any repurchase obligation of the Company. As of June 30, 2018, all unfulfilled performance obligations are expected to be fulfilled within the next twelve months. Revenue is measured based on the transaction price and the quantity of parts specified in a contract with a customer. Discrete price changes may occur during the vehicle production period in order for the Company to remain competitive with market prices or based on changes in product specifications. In addition, customers may request or expect certain discounts not reflected in the purchase order that require estimation. In the event the Company concludes that a portion of the revenue for a given part may vary from the purchase order, the Company estimates variable consideration at the most likely amount to which the Company expects to be entitled. The estimates typically represent a narrow range of discounts and are based on historical experience and input from customer negotiations. The Company records such estimates within Sales and Accounts receivable, net, within the consolidated statements of comprehensive income and consolidated balance sheets, respectively. The Company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration changes or when the consideration becomes fixed. During the three and six months ended June 30, 2018, the Company recognized approximately $3 million and $11 million net increase in transaction price related to performance obligations satisfied in previous periods, respectively. The Company does not have an enforceable right to payment at any time prior to when the parts are shipped or delivered to the customer; therefore, the Company recognizes revenue at the point in time it satisfies a performance obligation by transferring control of a part to the customer. 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. Shipping and handling costs associated with outbound freight after control of the parts has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Accounts Receivable, net Accounts receivable, net, include amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts to provide for estimated amounts of receivables not expected to be collected. The Company’s accounts receivables are continually assessed for collectibility and any allowance is recorded based upon the age of outstanding receivables, historical payment experience and customer creditworthiness. Contract Balances The Company has no material contract assets, contract liabilities or capitalized contract acquisition costs as of June 30, 2018.

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