Reporting Segments

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Reporting Segments

Reporting Segments

The Company's business is comprised of two reporting segments: Engine and Drivetrain. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems.

The Company allocates resources to each segment based upon the projected after-tax return on invested capital ("ROIC") of its business initiatives. Adjusted EBIT is comprised of earnings before interest, income taxes and noncontrolling interest (“EBIT") adjusted for restructuring, goodwill impairment charges, affiliates' earnings and other items not reflective of on-going operating income or loss ("Adjusted EBIT"). ROIC is comprised of Adjusted EBIT after deducting notional taxes compared to the projected average capital investment required.

Adjusted EBIT is the measure of segment income or loss used by the Company. The Company believes Adjusted EBIT is most reflective of the operational profitability or loss of our reporting segments. The following tables show segment information and Adjusted EBIT for the Company's reporting segments.

Net Sales by Reporting Segment

	Three Months Ended March 31,
(in millions)	2019			2018
Engine	$	1,598		$	1,716
Drivetrain	982			1,083
Inter-segment eliminations	(14		)	(15		)
Net sales	$	2,566		$	2,784

Adjusted EBIT

	Three Months Ended March 31,
(in millions)	2019			2018
Engine	$	241		$	280
Drivetrain	105			121
Adjusted EBIT	346			401
Restructuring expense	14			8
Merger, acquisition and divestiture expense	1			2
Other expense (income)	14			(5		)
Officer stock awards modification	2			—
Other postretirement income	—			(3		)
Corporate, including equity in affiliates' earnings and stock-based compensation	42			53
Interest income	(3		)	(2		)
Interest expense	14			16
Earnings before income taxes and noncontrolling interest	262			332
Provision for income taxes	91			95
Net earnings	171			237
Net earnings attributable to the noncontrolling interest, net of tax	11			12
Net earnings attributable to BorgWarner Inc.	$	160		$	225

Total Assets

	March 31,		December 31,
(in millions)	2019		2018
Engine	$	4,824	$	4,731
Drivetrain	4,018		3,920
Total	8,842		8,651
Corporate *	1,262		1,444
Total assets	$	10,104	$	10,095

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*    Corporate assets include investments and other long-term receivables and certain deferred income taxes.