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Net Sales | 3 Months Ended
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Mar. 31, 2018
Net Sales [Abstract] |
Net Sales |
Note 3. | Net Sales
Significant Accounting Policy We recognize revenues when our performance obligation has been satisfied and the control of products has been transferred to a customer which typically occurs upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of goods or providing services. Shipping and handling costs, as well as freight to customers, are included in distribution expenses as part of selling, general and administrative expenses. Revenue Recognition We derive our revenue primarily from sales of replacement parts for motor vehicles from both our Engine Management and Temperature Control Segments. The amount of consideration we receive and revenue we recognize depends on the marketing incentives, product warranty and overstock returns we offer to our customers. For certain of our sales of remanufactured products, we also charge our customers a deposit for the return of a used core component which we can use in our future remanufacturing activities. Such deposit is not recognized as revenue at the time of the sale but rather carried as a core liability. At the same time, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. The liability is extinguished when a core is actually returned to us, or at period end when we estimate and recognize revenue for the core deposits not expected to be returned. We estimate and record provisions for cash discounts, quantity rebates, sales returns and warranties in the period the sale is recorded, based upon our prior experience and current trends. Significant management judgments and estimates must be made and used in estimating sales returns and allowances relating to revenue recognized in any accounting period. Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a 90-day limited warranty to a lifetime limited warranty, which generally covers defects in materials or workmanship and failure to meet industry published specifications and/or the result of installation error. In addition to warranty returns, we also permit our customers to return new, undamaged products to us within customer-specific limits (which are generally limited to a specified percentage of their annual purchases from us) in the event that they have overstocked their inventories. At the time products are sold, we accrue a liability for product warranties and overstock returns as a percentage of sales based upon estimates established using historical information on the nature, frequency and average cost of the claim and the probability of the customer return. At the same time, we record an estimate of anticipated customer returns as unreturned customer inventory. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. Disaggregation of Net Sales We disaggregate our net sales from contracts with customers by geographic area, major product group, and major sales channels for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors. The following tables provide disaggregation of net sales information for the three months ended March 31, 2018 and 2017 (in thousands):
Three months ended March 31, 2018 (a) |  | Engine Management |  |  | Temperature Control |  |  | Other (c) |  |  | Total |
Geographic Area: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 174,584 |  |  | $ | 55,571 |  |  | $ | — |  |  | $ | 230,155 |
Canada |  |  | 7,804 |  |  |  | 3,931 |  |  |  | 2,107 |  |  |  | 13,842 |
Mexico |  |  | 8,222 |  |  |  | 212 |  |  |  | — |  |  |  | 8,434 |
Europe |  |  | 3,480 |  |  |  | 164 |  |  |  | — |  |  |  | 3,644 |
Other foreign |  |  | 5,398 |  |  |  | 353 |  |  |  | — |  |  |  | 5,751 |
Total |  | $ | 199,488 |  |  | $ | 60,231 |  |  | $ | 2,107 |  |  | $ | 261,826 |
Major Product Group: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ignition, emissions and fuel system parts |  | $ | 160,732 |  |  | $ | — |  |  | $ | 1,662 |  |  | $ | 162,394 |
Wire and cable |  |  | 38,756 |  |  |  | — |  |  |  | 191 |  |  |  | 38,947 |
Compressors |  |  | — |  |  |  | 29,898 |  |  |  | (56 | ) |  |  | 29,842 |
Other climate control parts |  |  | — |  |  |  | 30,333 |  |  |  | 310 |  |  |  | 30,643 |
Total |  | $ | 199,488 |  |  | $ | 60,231 |  |  | $ | 2,107 |  |  | $ | 261,826 |
Major Sales Channel: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aftermarket |  | $ | 169,310 |  |  | $ | 51,630 |  |  | $ | 2,107 |  |  | $ | 223,047 |
OE/OES |  |  | 25,056 |  |  |  | 8,101 |  |  |  | — |  |  |  | 33,157 |
Export |  |  | 5,122 |  |  |  | 500 |  |  |  | — |  |  |  | 5,622 |
Total |  | $ | 199,488 |  |  | $ | 60,231 |  |  | $ | 2,107 |  |  | $ | 261,826 |
Three months ended March 31, 2017 (a)(b) |  | Engine Management |  |  | Temperature Control |  |  | Other (c) |  |  | Total |
Geographic Area: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 185,902 |  |  | $ | 65,039 |  |  | $ | — |  |  | $ | 250,941 |
Canada |  |  | 9,767 |  |  |  | 4,357 |  |  |  | 774 |  |  |  | 14,898 |
Mexico |  |  | 7,031 |  |  |  | 224 |  |  |  | — |  |  |  | 7,255 |
Europe |  |  | 3,814 |  |  |  | 204 |  |  |  | — |  |  |  | 4,018 |
Other foreign |  |  | 4,800 |  |  |  | 466 |  |  |  | — |  |  |  | 5,266 |
Total |  | $ | 211,314 |  |  | $ | 70,290 |  |  | $ | 774 |  |  | $ | 282,378 |
Major Product Group: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ignition, emissions and fuel system parts |  | $ | 165,153 |  |  | $ | — |  |  | $ | 723 |  |  | $ | 165,876 |
Wire and cable |  |  | 46,161 |  |  |  | — |  |  |  | 227 |  |  |  | 46,388 |
Compressors |  |  | — |  |  |  | 37,922 |  |  |  | (302 | ) |  |  | 37,620 |
Other climate control parts |  |  | — |  |  |  | 32,368 |  |  |  | 126 |  |  |  | 32,494 |
Total |  | $ | 211,314 |  |  | $ | 70,290 |  |  | $ | 774 |  |  | $ | 282,378 |
Major Sales Channel: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aftermarket |  | $ | 179,765 |  |  | $ | 61,799 |  |  | $ | 774 |  |  | $ | 242,338 |
OE/OES |  |  | 26,504 |  |  |  | 7,989 |  |  |  | — |  |  |  | 34,493 |
Export |  |  | 5,045 |  |  |  | 502 |  |  |  | — |  |  |  | 5,547 |
Total |  | $ | 211,314 |  |  | $ | 70,290 |  |  | $ | 774 |  |  | $ | 282,378 |
| (a) | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.
| (b) | Amounts have not been restated and are reported under accounting standards in effect in the period presented as we adopted ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method.
| (c) | Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Intersegment compressor sales for the three months ended March 31, 2018 and 2017 exceeded third party sales from our Canadian business unit.
Geographic Area We sell our line of products primarily in the United States, with additional sales in Canada, Mexico, Europe, Asia and Latin America. Sales are attributed to countries based upon the location of the customer. Our sales are substantially denominated in U.S. dollars. Major Product Group The Engine Management segment of the Company principally generates revenue from the sale of automotive engine replacement parts including ignition, emission and fuel system parts, and wire and cable parts. The Temperature Control segment of the Company principally generates revenue from the sale of automotive temperature control systems replacement parts including air conditioning compressors and other climate control parts. Major Sales Channel In the aftermarket channel, we sell our products to warehouse distributors and retailers. Our customers buy directly from us and sell directly to jobber stores, professional technicians and to “do-it-yourselfers” who perform automotive repairs on their personal vehicles. In the Original Equipment (“OE”) and Original Equipment Service (“OES”) channel, we sell our products to original equipment manufacturers who redistribute our products within their distribution network, independent dealerships and service dealer technicians. Lastly, in the Export channel, our domestic entities sell to customers outside the United States.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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