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OPERATIONS BY REPORTING SEGMENT
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
OPERATIONS BY REPORTING SEGMENT
OPERATIONS BY REPORTING SEGMENT

The Company operates with two end-customer focused business segments. The Powertrain segment focuses on original equipment products for automotive, heavy duty and industrial applications. The Motorparts segment sells and distributes a broad portfolio of products in the global aftermarket, while also serving original equipment manufacturers with products including braking, chassis, wipers and other vehicle components. This organizational model allows for a strong product line focus benefitting both original equipment and aftermarket customers and enables the Company's global teams to be responsive to customers’ needs for superior products and to promote greater identification with the Company's premium brands. Additionally, this organizational model enhances management focus to capitalize on opportunities for organic or acquisition growth, profit improvement, resource utilization and business model optimization in line with the unique requirements of the two different customer bases.

Net sales, cost of products sold and gross profit information are as follows:
 
 
Three Months Ended March 31
 
 
Net Sales
 
Cost of Products Sold
 
Gross Profit
 
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Powertrain
 
$
1,128

 
$
1,138

 
$
(992
)
 
$
(996
)
 
$
136

 
$
142

Motorparts
 
831

 
773

 
(679
)
 
(664
)
 
152

 
109

Inter-segment eliminations
 
(62
)
 
(76
)
 
62

 
76

 
—

 
—

Total Reporting Segment
 
$
1,897

 
$
1,835

 
$
(1,609
)
 
$
(1,584
)
 
$
288

 
$
251

 
 
 
 
 
 
 
 
 
 
 
 
 
Inter-segment eliminations attributable to sales from Powertrain to Motorparts
 
$
54

 
$
67

 
 
 
 
 
 
 
 
Inter-segment eliminations attributable to sales from Motorparts to Powertrain
 
$
9

 
$
10

 
 
 
 
 
 
 
 

Operational EBITDA and the reconciliation to net income (loss) are as follows:
 
 
Three Months Ended March 31
 
 
2016
 
2015
 
 
(millions of dollars)
Powertrain
 
$
119

 
$
111

Motorparts
 
74

 
31

Total Operational EBITDA
 
193

 
142

 
 
 
 
 
Items required to reconcile Operational EBITDA to EBITDA:
 
 
 
 
Restructuring charges and asset impairments (a)
 
(18
)
 
(13
)
Goodwill and intangible impairment expense, net
 
—

 
6

Loss on sale of equity method investment
 
—

 
(11
)
Financing charges
 
(3
)
 
(2
)
Acquisition related costs
 
—

 
(4
)
Segmentation costs
 
—

 
(1
)
Other (b)
 
(4
)
 
2

EBITDA
 
168

 
119

 
 
 
 
 
Items required to reconcile EBITDA to net income (loss):
 
 
 
 
Depreciation and amortization
 
(87
)
 
(83
)
Interest expense, net
 
(37
)
 
(35
)
Income tax (expense) benefit
 
(8
)
 
(11
)
Net income (loss)
 
$
36

 
$
(10
)

 
 
Three Months Ended March 31
Footnotes:
 
2016
 
2015
(a) Restructuring charges and asset impairments, net:
 
(millions of dollars)
Restructuring charges related to severance and other charges, net
 
$
(15
)
 
$
(12
)
Asset impairments, including impairments related to restructuring activities
 
(3
)
 
(1
)
Total Restructuring charges
 
(18
)
 
(13
)
 
 
 
 
 
(b) Other reconciling items:
 
 
 
 
Non-service cost components associated with U.S. based funded pension plans
 
(3
)
 
—

Stock appreciation rights
 
—

 
1

Other
 
(1
)
 
1

 
 
$
(4
)
 
$
2



Total assets are as follows:
 
 
March 31
 
December 31

 
2016

2015
Powertrain
 
$
4,198

 
$
3,997

Motorparts
 
3,135

 
3,141

Total Reporting Segment Assets
 
7,333

 
7,138

Corporate
 
144

 
90

Total Company Assets
 
$
7,477


$
7,228