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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  ___________________________________ 
FORM 10-Q
  ___________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________.
Commission File Number: 001-36127
   ______________________________
COOPER-STANDARD HOLDINGS INC.
(Exact name of registrant as specified in its charter)
   ______________________________
Delaware
 
20-1945088
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
39550 Orchard Hill Place Drive
Novi, Michigan 48375
(Address of principal executive offices)
(Zip Code)
(248) 596-5900
(Registrant’s telephone number, including area code)
 ______________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.001 per share
 
CPS
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of July 26, 2019, there were 16,901,689 shares of the registrant’s common stock, $0.001 par value, outstanding.




COOPER-STANDARD HOLDINGS INC.
Form 10-Q
For the period ended June 30, 2019
 
 
 
Page
 
 
 
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
 
 
 
 
 
Item 2.
Item 6.


2



PART I — FINANCIAL INFORMATION
Item 1.         Financial Statements
COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
(Dollar amounts in thousands except per share amounts) 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Sales
$
764,806

 
$
928,262

 
$
1,644,844

 
$
1,895,653

Cost of products sold
666,828

 
776,897

 
1,429,318

 
1,573,408

Gross profit
97,978

 
151,365

 
215,526

 
322,245

Selling, administration & engineering expenses
74,170

 
76,339

 
161,144

 
156,779

Gain on sale of business
(189,910
)
 

 
(189,910
)
 

Amortization of intangibles
5,148

 
3,399

 
8,923

 
6,805

Restructuring charges
5,927

 
10,013

 
23,642

 
17,138

Impairment charges
2,188

 

 
2,188

 

Operating profit
200,455

 
61,614

 
209,539

 
141,523

Interest expense, net of interest income
(11,575
)
 
(9,973
)
 
(23,507
)
 
(19,773
)
Equity in earnings of affiliates
1,891

 
1,248

 
4,249

 
2,935

Loss on refinancing and extinguishment of debt

 

 

 
(770
)
Other expense, net
(1,781
)
 
(557
)
 
(2,577
)
 
(2,276
)
Income before income taxes
188,990

 
52,332

 
187,704

 
121,639

Income tax expense
44,239

 
9,130

 
46,570

 
21,021

Net income
144,751

 
43,202

 
141,134

 
100,618

Net loss (income) attributable to noncontrolling interests
545

 
(1,325
)
 
702

 
(1,949
)
Net income attributable to Cooper-Standard Holdings Inc.
$
145,296

 
$
41,877

 
$
141,836

 
$
98,669

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
8.39

 
$
2.33

 
$
8.14

 
$
5.48

Diluted
$
8.36

 
$
2.28

 
$
8.11

 
$
5.36

The accompanying notes are an integral part of these financial statements.


3



COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollar amounts in thousands) 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net income
$
144,751

 
$
43,202

 
$
141,134

 
$
100,618

Other comprehensive loss:
 
 
 
 
 
 
 
Currency translation adjustment
(6,113
)
 
(38,254
)
 
(3,894
)
 
(25,562
)
Benefit plan liabilities adjustment, net of tax
(2,947
)
 
2,951

 
(1,560
)
 
4,258

Fair value change of derivatives, net of tax
828

 
(3,222
)
 
2,081

 
390

Other comprehensive loss, net of tax
(8,232
)
 
(38,525
)
 
(3,373
)
 
(20,914
)
Comprehensive income
136,519

 
4,677

 
137,761

 
79,704

Comprehensive loss (income) attributable to noncontrolling interests
1,199

 
285

 
952

 
(1,288
)
Comprehensive income attributable to Cooper-Standard Holdings Inc.
$
137,718

 
$
4,962

 
$
138,713

 
$
78,416


The accompanying notes are an integral part of these financial statements.


4



COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands except share amounts)
 
June 30, 2019
 
December 31, 2018
 
(unaudited)
 

Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
310,779

 
$
264,980

Accounts receivable, net
458,504

 
418,607

Tooling receivable
177,191

 
141,106

Inventories
184,435

 
175,572

Prepaid expenses
32,154

 
36,878

Other current assets
80,072

 
108,683

Assets held for sale

 
103,898

Total current assets
1,243,135

 
1,249,724

Property, plant and equipment, net
993,933

 
984,241

Operating lease right-of-use assets, net
94,646



Goodwill
142,151

 
143,681

Intangible assets, net
90,627

 
99,602

Other assets
140,342

 
145,855

Total assets
$
2,704,834

 
$
2,623,103

 
 
 
 
Liabilities and Equity
 
 
 
Current liabilities:
 
 
 
Debt payable within one year
$
54,447

 
$
101,323

Accounts payable
415,301

 
452,320

Payroll liabilities
120,396

 
92,604

Accrued liabilities
92,843

 
98,907

Current operating lease liabilities
25,730



Liabilities held for sale

 
71,195

Total current liabilities
708,717

 
816,349

Long-term debt
737,757

 
729,805

Pension benefits
134,644

 
138,771

Postretirement benefits other than pensions
47,868

 
40,901

Long-term operating lease liabilities
70,102



Other liabilities
46,594

 
37,775

Total liabilities
1,745,682

 
1,763,601

7% Cumulative participating convertible preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding

 

Equity:
 
 
 
Common stock, $0.001 par value, 190,000,000 shares authorized; 18,967,142 shares issued and 16,901,333 shares outstanding as of June 30, 2019, and 19,620,546 shares issued and 17,554,737 outstanding as of December 31, 2018
17

 
17

Additional paid-in capital
483,792

 
501,511

Retained earnings
701,647

 
576,025

Accumulated other comprehensive loss
(249,211
)
 
(246,088
)
Total Cooper-Standard Holdings Inc. equity
936,245

 
831,465

Noncontrolling interests
22,907

 
28,037

Total equity
959,152

 
859,502

Total liabilities and equity
$
2,704,834

 
$
2,623,103

The accompanying notes are an integral part of these financial statements.

5



COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Unaudited)
(Dollar amounts in thousands except share amounts)
 
Total Equity
 
Common Shares
 
Common Stock
 
Additional Paid-In Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Loss
 
Cooper-Standard Holdings Inc. Equity
 
Noncontrolling Interests
 
Total Equity
Balance as of December 31, 2018
17,554,737

 
$
17

 
$
501,511

 
$
576,025

 
$
(246,088
)
 
$
831,465

 
$
28,037

 
$
859,502

Cumulative effect of change in accounting principle

 

 

 
(2,607
)
 

 
(2,607
)
 

 
(2,607
)
Repurchase of common stock
(118,774
)
 

 
(2,057
)
 
(3,880
)
 

 
(5,937
)
 

 
(5,937
)
Share-based compensation, net
85,937

 

 
4

 
(214
)
 

 
(210
)
 

 
(210
)
Contribution from noncontrolling interests

 

 

 

 

 

 
2,112

 
2,112

Net loss

 

 

 
(3,460
)
 

 
(3,460
)
 
(157
)
 
(3,617
)
Other comprehensive income

 

 

 

 
4,455

 
4,455

 
404

 
4,859

Balance as of March 31, 2019
17,521,900

 
$
17

 
$
499,458

 
$
565,864

 
$
(241,633
)
 
$
823,706

 
$
30,396

 
$
854,102

Repurchase of common stock
(626,305
)
 

 
(20,486
)
 
(9,514
)
 

 
(30,000
)
 

 
(30,000
)
Share-based compensation, net
5,738

 

 
3,522

 
1

 

 
3,523

 

 
3,523

Purchase of noncontrolling interests

 

 
1,298

 

 

 
1,298

 
(6,057
)
 
(4,759
)
Dividends declared to noncontrolling interests

 

 

 

 

 

 
(233
)
 
(233
)
Net income (loss)

 

 

 
145,296

 

 
145,296

 
(545
)
 
144,751

Other comprehensive loss

 

 

 

 
(7,578
)
 
(7,578
)
 
(654
)
 
(8,232
)
Balance as of June 30, 2019
16,901,333

 
$
17

 
$
483,792

 
$
701,647

 
$
(249,211
)
 
$
936,245

 
$
22,907

 
$
959,152


 
Total Equity
 
Common Shares
 
Common Stock
 
Additional Paid-In Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Loss
 
Cooper-Standard Holdings Inc. Equity
 
Noncontrolling Interests
 
Total Equity
Balance as of December 31, 2017
17,914,599

 
$
18

 
$
512,815

 
$
511,367

 
$
(197,631
)
 
$
826,569

 
$
28,520

 
$
855,089

Cumulative effect of change in accounting principle

 

 

 
8,639

 
(8,639
)
 

 

 

Share-based compensation, net
151,288

 

 
(73
)
 
(4,714
)
 

 
(4,787
)
 

 
(4,787
)
Purchase of noncontrolling interests

 

 
(2,682
)
 

 

 
(2,682
)
 
312

 
(2,370
)
Net income

 

 

 
56,792

 

 
56,792

 
624

 
57,416

Other comprehensive income

 

 

 

 
16,662

 
16,662

 
949

 
17,611

Balance as of March 31, 2018
18,065,887

 
$
18

 
$
510,060

 
$
572,084

 
$
(189,608
)
 
$
892,554

 
$
30,405

 
$
922,959

Repurchase of common stock
(276,696
)
 

 
(13,696
)
 
(29,829
)
 

 
(43,525
)
 

 
(43,525
)
Share-based compensation, net
29,765

 

 
4,319

 
(610
)
 

 
3,709

 

 
3,709

Contribution from noncontrolling interests

 

 

 

 

 

 
299

 
299

Net income

 

 

 
41,877

 

 
41,877

 
1,325

 
43,202

Other comprehensive loss

 

 

 

 
(36,915
)
 
(36,915
)
 
(1,610
)
 
(38,525
)
Balance as of June 30, 2018
17,818,956

 
$
18

 
$
500,683

 
$
583,522

 
$
(226,523
)
 
$
857,700

 
$
30,419

 
$
888,119

The accompanying notes are an integral part of these financial statements.
 

6



COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollar amounts in thousands)
 
 
Six Months Ended June 30,
 
2019
 
2018
Operating Activities:
 
 
 
Net income
$
141,134

 
$
100,618

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
Depreciation
65,550

 
66,367

Amortization of intangibles
8,923

 
6,805

Gain on sale of business
(189,910
)
 

Impairment charges
2,188

 

Share-based compensation expense
6,482

 
10,342

Equity in earnings of affiliates, net of dividends related to earnings
668

 
1,573

Loss on refinancing and extinguishment of debt

 
770

Deferred income taxes
19,117

 
1,420

Other
2,030

 
1,029

Changes in operating assets and liabilities
(65,148
)
 
(90,613
)
Net cash (used in) provided by operating activities
(8,966
)
 
98,311

Investing activities:
 
 
 
Capital expenditures
(95,496
)
 
(106,699
)
Acquisition of businesses, net of cash acquired
(452
)
 
(6,195
)
Proceeds from sale of business
243,362

 

Proceeds from sale of fixed assets and other
2,099

 
(139
)
Net cash provided by (used in) investing activities
149,513

 
(113,033
)
Financing activities:
 
 
 
Principal payments on long-term debt
(2,067
)
 
(2,062
)
(Decrease) increase in short-term debt, net
(47,351
)
 
224

Purchase of noncontrolling interests
(4,797
)
 
(2,450
)
Repurchase of common stock
(36,550
)
 
(43,525
)
Taxes withheld and paid on employees' share-based payment awards
(2,733
)
 
(11,279
)
Contribution from noncontrolling interest and other
2,277

 
(327
)
Net cash used in financing activities
(91,221
)
 
(59,419
)
Effects of exchange rate changes on cash, cash equivalents and restricted cash
(2,882
)
 
(865
)
Changes in cash, cash equivalents and restricted cash
46,444

 
(75,006
)
Cash, cash equivalents and restricted cash at beginning of period
267,399

 
518,461

Cash, cash equivalents and restricted cash at end of period
$
313,843

 
$
443,455

 
 
 
 
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:
 
Balance as of
 
June 30, 2019
 
December 31, 2018
Cash and cash equivalents
$
310,779

 
$
264,980

Restricted cash included in other current assets
55

 
18

Restricted cash included in other assets
3,009

 
2,401

Total cash, cash equivalents and restricted cash shown in the statement of cash flows
$
313,843

 
$
267,399

The accompanying notes are an integral part of these financial statements.

7

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)


1. Overview
Basis of Presentation
Cooper-Standard Holdings Inc. (together with its consolidated subsidiaries, the “Company” or “Cooper Standard”), through its wholly-owned subsidiary, Cooper-Standard Automotive Inc. (“CSA U.S.”), is a leading manufacturer of sealing, fuel and brake delivery, and fluid transfer systems. The Company’s products are primarily for use in passenger vehicles and light trucks that are manufactured by global automotive original equipment manufacturers (“OEMs”) and replacement markets. The Company conducts substantially all of its activities through its subsidiaries.
During the first quarter of 2019 and in prior periods, the Company also operated an anti-vibration systems product line. On April 1, 2019, the Company completed the divestiture of its anti-vibration systems product line. See Note 4. "Divestiture".
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Annual Report”), as filed with the SEC. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These financial statements include all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations of the Company. The operating results for the interim period ended June 30, 2019 are not necessarily indicative of results for the full year. In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
2. New Accounting Pronouncements
Recently Adopted Accounting Pronouncements
ASU 2016-02, Leases (Topic 842)
On January 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) 842, Leases, and all related amendments using the modified retrospective method whereby the cumulative effect of adopting the standard was recognized in equity at the date of initial application. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The most prominent among the changes in the standard is the recognition of right-of-use assets and lease liabilities for all leases (except for short-term leases). The Company made a policy election for all asset classes to exclude the balance sheet recognition of leases with a lease term, at lease commencement, of 12 months or less and no purchase option reasonably certain to be exercised. The standard also requires additional disclosures to help financial statement users better understand the amount, timing and uncertainty of cash flows arising from lease transactions. The new standard resulted in a material increase in right-of-use assets and lease liabilities on the Company’s condensed consolidated balance sheet beginning in 2019 and had no impact on our condensed consolidated income statement or to cash provided by (used in) operating, financing or investing activities on our condensed consolidated cash flow statements.
The difference between the lease assets and lease liabilities was recorded as an adjustment to the opening balance of retained earnings. The cumulative effects of the changes made to the Company’s condensed consolidated balance sheet as of January 1, 2019 were as follows:
 
Balance as of December 31, 2018
 
Adjustments due to adoption of ASC 842
 
Balance as of January 1, 2019
 
 
 
 
 
 
Prepaid expenses
$
36,878

 
$
(2,704
)
 
$
34,174

Assets held for sale
103,898

 
9,559

 
113,457

Operating lease right-of-use assets, net

 
102,268

 
102,268

Accrued liabilities
98,907

 
(336
)
 
98,571

Current operating lease liabilities

 
27,229

 
27,229

Liabilities held for sale
71,195

 
9,561

 
80,756

Long-term operating lease liabilities

 
75,276

 
75,276

Retained earnings
576,025

 
(2,607
)
 
573,418



8

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)

The Company elected the package of practical expedients on existing leases as of the effective date which permits the Company to carry forward lease classification and not reassess existing contracts in order to determine if the contracts contain a lease. The Company did not elect the hindsight practical expedient. Additionally, the Company elected the practical expedient to not reassess whether any expired or existing land easements contain leases.
Recently Issued Accounting Pronouncements
The Company considered the recently issued accounting pronouncement summarized as follows, which could have a material impact on its condensed consolidated financial statements or disclosures:
Standard
Description
Impact
Effective Date
ASU 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Amends guidance on the measurement of all expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable and supportable forecasts.
The Company is currently evaluating the impact of this guidance on its accounting policies and its consolidated financial statements.

January 1, 2020

3. Acquisitions
Lauren Acquisition
In the third quarter of 2018, the Company acquired the assets and liabilities of Lauren Manufacturing and Lauren Plastics (together, “Lauren”), extruders and molders of organic, silicone, thermoplastic and engineered polymer products with expertise in sealing solutions, to further expand the Company’s Industrial and Specialty Group and non-automotive and adjacent markets. The base purchase price of the acquisition was $92,700. The results of operations of Lauren are included in the Company’s condensed consolidated financial statements from the date of acquisition and reported within the North America segment. The pro forma effect of this acquisition would not have materially impacted the Company’s reported results for any periods presented, and as a result no pro forma information has been presented. This acquisition was accounted for as a business combination, resulting in the recognition of intangible assets of $34,810 and tax deductible goodwill of $26,080. Since completion of initial estimates in the third quarter of 2018, the Company has recorded insignificant measurement period adjustments to increase the provisional identifiable net assets acquired, which resulted in a decrease to goodwill.
LS Mtron Automotive Parts Acquisition
In the fourth quarter of 2018, the Company acquired 80.1% of LS Mtron Ltd.’s automotive parts business, now named Cooper Standard Automotive and Industrial, Inc. The acquisition adds jounce brake lines and charge air cooling technology to the Company’s automotive fluid transfer and fuel and brake delivery systems product lines and further expands core product offerings. The base purchase price was approximately $25,750, subject to certain adjustments. The noncontrolling interest was determined to have a fair value of $6,400. The results of operations of Cooper Standard Automotive and Industrial, Inc., are included in the Company’s condensed consolidated financial statements from the date of acquisition and reported within the Asia Pacific segment. The pro forma effect of this acquisition would not have materially impacted the Company’s reported results for any periods presented, and as a result no pro forma information has been presented. This acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis which is subject to change as the Company continues its review of potential purchase price adjustments during the measurement period. The fair value of identifiable assets acquired and liabilities assumed approximated the fair value of the consideration transferred. Since completion of initial estimates in the fourth quarter of 2018, the Company has recorded insignificant measurement period adjustments due to working capital adjustments, which resulted in an increase to the base purchase price.
Hutchings Automotive Products Acquisition
In the fourth quarter of 2018, the Company acquired the assets and liabilities of Hutchings Automotive Products, LLC (“Hutchings”), a North American supplier of high quality fluid carrying products for automotive powertrain and coolant systems applications. The base purchase price was approximately $42,100, subject to certain adjustments. The results of operations of Hutchings are included in the Company's condensed consolidated financial statements from the date of acquisition and reported within the North America segment. The pro forma effect of this acquisition would not have materially impacted the Company’s reported results for any periods presented, and as a result no pro forma information has been presented. This acquisition was accounted for as a business combination, resulting in the recognition of intangible assets of $11,100 and tax deductible goodwill of $5,200. The total purchase price was allocated on a preliminary basis which is subject to change as the Company continues its review of potential purchase price adjustments during the measurement period.

9

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)

4. Divestiture
In the third quarter of 2018, management approved a plan to sell the anti-vibration systems (“AVS”) product line within its North America, Europe and Asia Pacific segments. The business and its associated assets and liabilities met the criteria for presentation as held for sale as of September 1, 2018, and depreciation of long-lived assets ceased. The divestiture did not meet the criteria for presentation as a discontinued operation.
On November 2, 2018, the Company entered into a definitive agreement with an unaffiliated company to divest the AVS product line. On April 1, 2019, the Company completed its sale of the AVS product line to Continental AG. The total sale price of the transaction was $265,500, subject to certain adjustments. Cash proceeds received in the second quarter were $243,362 after adjusting for certain liabilities assumed by the purchaser. The net cash proceeds after taxes, post-closing adjustments and transaction-related expenses and fees are expected to be approximately $215,000 to $220,000. The Company recognized a gain on the divestiture of $189,910, subject to post-closing adjustments. In addition, at closing, the Company and Continental AG entered into certain ancillary agreements providing for the transition of the AVS product line.
The major classes of assets and liabilities held for sale were as follows:
 
 
December 31, 2018
Accounts receivable, net
 
$
35,498

Tooling receivable
 
3,797

Inventories
 
13,774

Prepaid expenses
 
1,759

Other current assets
 
1,197

Property, plant and equipment, net
 
31,148

Goodwill
 
13,500

Other assets
 
3,225

Total assets held for sale
 
$
103,898

 
 
 
Accounts payable
 
$
38,065

Payroll liabilities
 
6,826

Accrued liabilities
 
1,000

Pension benefits
 
15,894

Postretirement benefits other than pensions
 
9,281

Other liabilities
 
129

Total liabilities related to assets held for sale
 
$
71,195



10

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)

5. Revenue
Revenue is recognized for manufactured parts at a point in time, generally when products are shipped or delivered. The Company usually enters into 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. Customers typically pay for parts based on customary business practices with payment terms generally between 30 and 90 days.
Revenue by customer group for the three months ended June 30, 2019 was as follows:
 
North America
 
Europe
 
Asia Pacific
 
South America
 
Consolidated
Automotive
$
368,953

 
$
189,160

 
$
118,509

 
$
25,027

 
$
701,649

Commercial
5,927

 
7,872

 
17

 
60

 
13,876

Other
29,983

 
19,185

 
77

 
36

 
49,281

Revenue
$
404,863

 
$
216,217

 
$
118,603

 
$
25,123

 
$
764,806


Revenue by customer group for the six months ended June 30, 2019 was as follows:
 
North America
 
Europe
 
Asia Pacific
 
South America
 
Consolidated
Automotive
$
805,819

 
$
414,611

 
$
245,907

 
$
48,219

 
$
1,514,556

Commercial
12,266

 
16,297

 
17

 
83

 
28,663

Other
61,485

 
39,908

 
174

 
58

 
101,625

Revenue
$
879,570

 
$
470,816

 
$
246,098

 
$
48,360

 
$
1,644,844


Revenue by customer group for the three months ended June 30, 2018 was as follows:
 
North America
 
Europe
 
Asia Pacific
 
South America
 
Consolidated
Automotive
$
465,384

 
$
247,656

 
$
147,993

 
$
23,412

 
$
884,445

Commercial
5,746

 
9,557

 
1

 
95

 
15,399

Other
6,478

 
21,911

 

 
29

 
28,418

Revenue
$
477,608

 
$
279,124

 
$
147,994

 
$
23,536

 
$
928,262

Revenue by customer group for the six months ended June 30, 2018 was as follows:
 
North America
 
Europe
 
Asia Pacific
 
South America
 
Consolidated
Automotive
$
954,121

 
$
508,312

 
$
297,162

 
$
49,862

 
$
1,809,457

Commercial
11,099

 
19,137

 
7

 
240

 
30,483

Other
11,566

 
44,076

 

 
71

 
55,713

Revenue
$
976,786

 
$
571,525

 
$
297,169

 
$
50,173

 
$
1,895,653


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 of the Company’s revenues were 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. On April 1, 2019, the Company completed the divestiture of its anti-vibration systems product line. See Note 4. "Divestiture".

11

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)

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 (Divested on April 1, 2019)
 
Control and isolate vibration and noise in the vehicle to improve ride and handling
Revenue by product line for the three months ended June 30, 2019 was as follows:
 
North America
 
Europe
 
Asia Pacific
 
South America
 
Consolidated
Sealing systems
$
143,010

 
$
143,988

 
$
78,303

 
$
19,016

 
$
384,317

Fuel and brake delivery systems
123,978

 
31,023

 
26,309

 
6,044

 
187,354

Fluid transfer systems
114,381

 
21,514

 
13,980

 
63

 
149,938

Anti-vibration systems

 
158

 
11

 

 
169

Other
23,494

 
19,534

 

 

 
43,028

Consolidated
$
404,863

 
$
216,217

 
$
118,603

 
$
25,123

 
$
764,806


Revenue by product line for the six months ended June 30, 2019 was as follows:
 
North America
 
Europe
 
Asia Pacific
 
South America
 
Consolidated
Sealing systems
$
299,526

 
$
299,548

 
$
163,793

 
$
36,844

 
$
799,711

Fuel and brake delivery systems