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REPORTING SEGMENTS AND RELATED INFORMATION
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTING SEGMENTS AND RELATED INFORMATION
The Company’s business is aggregated into four reporting segments: Air Management, e-Propulsion & Drivetrain, Fuel Systems (formerly known as 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, would transition to the Aftermarket segment. The Company also announced that the canisters and fuel delivery modules business, previously reported in its Air Management segment, would transition to the Fuel Systems segment. Both of these transitions were completed during the three months ended June 30, 2022. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.

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 June 30, 2022Six Months Ended June 30, 2022
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,758 $32 $1,790 $3,554 $48 $3,602 
e-Propulsion & Drivetrain1,204 68 1,272 2,449 97 2,546 
Fuel Systems474 42 516 1,003 104 1,107 
Aftermarket323 (11)312 627 6 633 
Inter-segment eliminations— (131)(131)— (255)(255)
Net sales$3,759 $— $3,759 $7,633 $— $7,633 

Three Months Ended June 30, 2021Six Months Ended June 30, 2021
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,731 $23 $1,754 $3,594 $53 $3,647 
e-Propulsion & Drivetrain1,203 26 1,229 2,533 59 2,592 
Fuel Systems511 71 582 1,042 131 1,173 
Aftermarket313 19 332 598 36 634 
Inter-segment eliminations— (139)(139)— (279)(279)
Net sales$3,758 $— $3,758 $7,767 $— $7,767 
Total Assets by Reporting Segment
(in millions)June 30, 2022December 31, 2021
Air Management$6,132 $6,229 
e-Propulsion & Drivetrain5,164 5,163 
Fuel Systems2,110 2,282 
Aftermarket1,266 1,179 
Total14,672 14,853 
Corporate1,472 1,722 
Consolidated$16,144 $16,575 

Segment Adjusted Operating Income
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2022202120222021
Air Management$235 $263 $478 $569 
e-Propulsion & Drivetrain80 132 184 266 
Fuel Systems44 60 110 117 
Aftermarket51 44 90 80 
Segment Adjusted Operating Income410 499 862 1,032 
Corporate, including stock-based compensation62 78 125 147 
Intangible asset amortization expense27 20 50 40 
Restructuring expense (Note 5)27 62 42 92 
Merger, acquisition and divestiture expense, net9 15 32 28 
Other non-comparable items13 — 13 (2)
Loss (gain) on sale of business (Note 3)— 7 (24)7 
Equity in affiliates’ earnings, net of tax(11)(16)(19)(28)
Unrealized (gain) loss on equity securities(11)4 28 276 
Interest expense, net15 39 30 57 
Other postretirement income(9)(12)(18)(23)
Earnings before income taxes and noncontrolling interest288 302 603 438 
Provision for income taxes57 28 148 70 
Net earnings231 274 $455 $368 
Net earnings attributable to noncontrolling interest, net of tax15 27 39 56 
Net earnings attributable to BorgWarner Inc. $216 $247 $416 $312