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Reporting Segments
 3 Months Ended
Mar. 31, 2020
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 its 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)
2020
 
2019
Engine
$
1,434


$
1,598

Drivetrain
860


982

Inter-segment eliminations
(15
)

(14
)
Net sales
$
2,279


$
2,566



Adjusted EBIT
 
Three Months Ended
March 31,
(in millions)
2020
 
2019
Engine
$
208


$
241

Drivetrain
63


105

Adjusted EBIT
271


346

Merger, acquisition and divestiture expense
21

 
1

Restructuring expense
15

 
14

Asset impairment
9

 
—

Unfavorable arbitration loss
—

 
14

Officer stock awards modification
—

 
2

Corporate, including stock-based compensation
37


51

Equity in affiliates' earnings, net of tax
(5
)
 
(9
)
Interest income
(2
)

(3
)
Interest expense
12


14

Other postretirement income
(2
)
 
—

Earnings before income taxes and noncontrolling interest
186


262

Provision for income taxes
49


91

Net earnings
137


171

Net earnings attributable to the noncontrolling interest, net of tax
8


11

Net earnings attributable to BorgWarner Inc. 
$
129


$
160



Total Assets
 
March 31,
 
December 31,
(in millions)
2020
 
2019
Engine
$
4,388

 
$
4,536

Drivetrain
3,887

 
4,075

Total
8,275

 
8,611

Corporate *
1,227

 
1,091

Total assets
$
9,502

 
$
9,702

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