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Reporting Segments
 9 Months Ended
Sep. 30, 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
September 30,
 
Nine Months Ended
September 30,
(in millions)
2019
 
2018
 
2019
 
2018
Engine
$
1,514


$
1,516


$
4,681


$
4,906

Drivetrain
993


976


2,973


3,093

Inter-segment eliminations
(15
)

(14
)

(45
)

(43
)
Net sales
$
2,492


$
2,478


$
7,609


$
7,956



Adjusted EBIT
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in millions)
2019
 
2018
 
2019
 
2018
Engine
$
241


$
238


$
731


$
797

Drivetrain
100


108


307


345

Adjusted EBIT
341


346


1,038


1,142

Restructuring expense
14

 
5

 
41

 
44

Merger, acquisition and divestiture expense
4

 
2

 
10

 
5

Other expense (income)
—

 
2

 
14

 
(3
)
Officer stock awards modification
—

 
6

 
2

 
2

Corporate, including stock-based compensation
47


53


146


170

Equity in affiliates' earnings, net of tax
(7
)
 
(15
)
 
(25
)
 
(38
)
Interest income
(4
)

(1
)

(9
)

(4
)
Interest expense
15


14


43


45

Other postretirement (income) expense
(1
)
 
(3
)
 
26

 
(8
)
Earnings before income taxes and noncontrolling interest
273


283


790


929

Provision for income taxes
66


67


230


192

Net earnings
207


216


560


737

Net earnings attributable to the noncontrolling interest, net of tax
13


12


34


36

Net earnings attributable to BorgWarner Inc. 
$
194


$
204


$
526


$
701



Total Assets
 
September 30,
 
December 31,
(in millions)
2019
 
2018
Engine
$
4,638

 
$
4,731

Drivetrain
3,865

 
3,920

Total
8,503

 
8,651

Corporate *
1,696

 
1,444

Total assets
$
10,199

 
$
10,095

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