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REPORTING SEGMENTS AND RELATED INFORMATION
 9 Months Ended
Sep. 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 second quarter of 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 September 30, 2022Nine Months Ended September 30, 2022
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,880 $28 $1,908 $5,434 $76 $5,510 
e-Propulsion & Drivetrain1,327 44 1,371 3,776 141 3,917 
Fuel Systems528 72 600 1,531 176 1,707 
Aftermarket325 2 327 952 8 960 
Inter-segment eliminations— (146)(146)— (401)(401)
Net sales$4,060 $— $4,060 $11,693 $— $11,693 

Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,551 $25 $1,576 $5,145 $78 $5,223 
e-Propulsion & Drivetrain1,095 39 1,134 3,628 128 3,756 
Fuel Systems456 59 515 1,498 190 1,688 
Aftermarket314 2 316 912 8 920 
Inter-segment eliminations— (125)(125)— (404)(404)
Net sales$3,416 $— $3,416 $11,183 $— $11,183 
Total Assets by Reporting Segment
(in millions)September 30, 2022December 31, 2021
Air Management$6,216 $6,229 
e-Propulsion & Drivetrain5,225 5,163 
Fuel Systems2,059 2,282 
Aftermarket1,276 1,179 
Total14,776 14,853 
Corporate1,301 1,722 
Consolidated$16,077 $16,575 

Segment Adjusted Operating Income
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2022202120222021
Air Management$277 $214 $755 $791 
e-Propulsion & Drivetrain86 83 270 349 
Fuel Systems83 50 193 159 
Aftermarket49 43 139 123 
Segment Adjusted Operating Income495 390 1,357 1,422 
Corporate, including stock-based compensation57 54 182 201 
Intangible asset amortization expense24 25 74 65 
Restructuring expense (Note 5)8 51 50 143 
Merger, acquisition and divestiture expense, net8 8 40 36 
Other non-comparable items— (1)13 (3)
Loss (gain) on sale of business9 — (15)7 
Equity in affiliates’ earnings, net of tax(10)(12)(29)(40)
Unrealized (gain) loss on equity securities(1)61 27 337 
Interest expense, net12 18 42 75 
Other postretirement income(8)(10)(26)(33)
Earnings before income taxes and noncontrolling interest396 196 999 634 
Provision for income taxes104 79 252 149 
Net earnings292 117 $747 $485 
Net earnings attributable to noncontrolling interest, net of tax19 21 58 77 
Net earnings attributable to BorgWarner Inc. $273 $96 $689 $408