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REPORTING SEGMENTS AND RELATED INFORMATION
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTING SEGMENTS AND RELATED INFORMATION
The Company’s business is aggregated of four reporting segments: Air Management, e-Propulsion & Drivetrain, Fuel Injection and Aftermarket. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems.

In the first quarter of 2022, the Company announced that the starter and alternator business previously reported in its e-Propulsion & Drivetrain segment will transition to the Aftermarket segment. This transition is in process, and as of March 31, 2022, management continued to assess the performance of reporting segments using the structure that was in place in 2021. The Company has also announced that the canisters and fuel delivery modules product lines currently reported in its Air Management segment will transition to the Fuel Injection segment later in 2022. When these transitions are completed, and performance is assessed using the new structures, the reporting segment disclosures will be updated accordingly.

Additionally, during the first quarter of 2022, the Company updated the definition of its measure of segment income or loss to exclude the impact of intangible asset amortization expense. The Company believes this change improves comparability of ongoing operations, given the increasing operating margin impact of intangible asset amortization arising from the Company’s merger and acquisition activity. The prior period information disclosed below has been recast to reflect this change. Further, the Company renamed its measure of segment income or loss from Segment Adjusted EBIT to Segment Adjusted Operating Income.

Segment Adjusted Operating Income is comprised of operating income adjusted for restructuring, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss.

Segment Adjusted Operating Income is the measure of segment income or loss used by the Company. The Company believes Segment Adjusted Operating Income is most reflective of the operational profitability or loss of our reporting segments. The following tables show segment information and Segment Adjusted Operating Income for the Company’s reporting segments:
Net Sales by Reporting Segment
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,895 $36 $1,931 $1,968 $43 $2,011 
e-Propulsion & Drivetrain1,346 44 1,390 1,419 47 1,466 
Fuel Injection430 42 472 427 48 475 
Aftermarket203 2 205 195 2 197 
Inter-segment eliminations— (124)(124)— (140)(140)
Net sales$3,874 $— $3,874 $4,009 $— $4,009 

Segment Adjusted Operating Income
Three Months Ended March 31,
(in millions)20222021
Air Management$257 $329 
e-Propulsion & Drivetrain119 149 
Fuel Injection52 34 
Aftermarket24 21 
Segment Adjusted Operating Income452 533 
Corporate, including stock-based compensation63 69 
Merger, acquisition and divestiture expense23 13 
Intangible asset amortization expense23 20 
Restructuring expense (Note 5)15 30 
Gain on sale of business (Note 3)(24)— 
Net gain on insurance recovery for property damage— (2)
Equity in affiliates’ earnings, net of tax(8)(12)
Unrealized loss on equity securities39 272 
Interest expense, net15 18 
Other postretirement income(9)(11)
Earnings before income taxes and noncontrolling interest315 136 
Provision for income taxes91 42 
Net earnings224 94 
Net earnings attributable to noncontrolling interest, net of tax24 29 
Net earnings attributable to BorgWarner Inc. $200 $65