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REPORTING SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTING SEGMENTS AND RELATED INFORMATION
The Company’s business is aggregated into four reporting segments which are further described below. These segments are strategic business groups, which 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 in 2022 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. Additionally, in the fourth quarter of 2022, the Company moved its battery systems business, previously reported in its Air Management segment, to the e-Propulsion & Drivetrain segment. Related to these transitions, the Company also revised the allocation of Corporate assets to various reporting segments in 2022. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.

•Air Management. This segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance. The Air Management segment’s technologies include turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, battery charging and direct current charging stations.
•e-Propulsion & Drivetrain. This segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance in combustion, hybrid and electric vehicles. The e-Propulsion & Drivetrain segment’s technologies include rotating electrical components, power electronics, electric drive motors, battery systems, battery packs, control modules, software, friction and mechanical products for automatic transmissions and torque-management products.
•Fuel Systems (formerly known as Fuel Injection). This segment includes gasoline and diesel fuel injection components and systems. The fuel injection systems portfolio includes pumps, injectors, evaporative canisters, fuel delivery modules, fuel rails and fuel rail assemblies, engine control units, and complete systems including associated software and calibration services, that deliver greater efficiency and improve fuel economy for traditional and hybrid vehicles.
•Aftermarket. Through this segment, the Company sells products and services to independent aftermarket customers and original equipment service customers with both new and remanufactured products. The aftermarket product portfolio includes a wide range of solutions covering the fuel injection, electronics and engine management, starters and alternators, maintenance, test equipment and vehicle diagnostics categories.

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 the measure of segment income or loss used by the Company. 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. The Company believes Segment Adjusted Operating Income is most reflective of the operational profitability or loss of its reporting segments.

The following tables show segment information and Segment Adjusted Operating Income for the Company’s reporting segments:
2022 Segment information
Net salesYear-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$7,034 $95 $7,129 $5,376 $245 $192 
e-Propulsion & Drivetrain5,440 185 5,625 6,416 278 415 
Fuel Systems2,052 262 2,314 2,227 140 99 
Aftermarket1,275 10 1,285 1,281 23 16 
Inter-segment eliminations— (552)(552)— — — 
Total15,801 — 15,801 15,300 686 722 
Corporate2
— — — 1,694 35 1 
Consolidated$15,801 $— $15,801 $16,994 $721 $723 
2021 Segment information
Net salesYear-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$6,720 $100 $6,820 $5,274 $268 $239 
e-Propulsion & Drivetrain4,918 168 5,086 6,122 278 262 
Fuel Systems1,996 241 2,237 2,306 166 125 
Aftermarket1,204 8 1,212 1,204 24 6 
Inter-segment eliminations— (517)(517)— — — 
Total14,838 — 14,838 14,906 736 632 
Corporate2
— — — 1,669 36 34 
Consolidated$14,838 $— $14,838 $16,575 $772 $666 
2020 Segment information
Net salesYear-end assets
Depreciation/ amortization3
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$5,496 $68 $5,564 $5,385 $235 $202 
e-Propulsion & Drivetrain3,648 47 3,695 5,017 242 185 
Fuel Systems537 56 593 2,375 38 29 
Aftermarket484 4 488 1,177 21 9 
Inter-segment eliminations— (175)(175)— — — 
Total10,165 — 10,165 13,954 536 425 
Corporate2
— — — 2,075 32 16 
Consolidated$10,165 $— $10,165 $16,029 $568 $441 
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
3 In 2020, e-Propulsion & Drivetrain includes $38 million related to accelerated amortization for certain intangibles, refer to Note 12, “Goodwill and Other Intangibles,” for more information.

Segment Adjusted Operating Income
Year Ended December 31,
(in millions)202220212020
Air Management$1,068 $1,064 $762 
e-Propulsion & Drivetrain379 458 368 
Fuel Systems249 235 49 
Aftermarket196 164 54 
Segment Adjusted Operating Income1,892 1,921 1,233 
Corporate, including stock-based compensation289 302 192 
Intangible asset amortization expense97 88 89 
Restructuring expense59 163 203 
Merger, acquisition and divestiture expense, net40 50 96 
Asset impairments and lease modifications30 17 17 
(Gain) loss on sales of businesses(13)29 — 
Other non-comparable items16 (3)(9)
Customer warranty settlement (Note 21)
— 124 — 
Amortization of inventory fair value adjustment— — 27 
Equity in affiliates' earnings, net of tax(38)(48)(18)
Unrealized loss (gain) on debt and equity securities73 362 (382)
Interest expense, net52 93 61 
Other postretirement income(31)(45)(7)
Earnings before income taxes and noncontrolling interest1,318 789 964 
Provision for income taxes292 150 397 
Net earnings1,026 639 567 
Net earnings attributable to the noncontrolling interest, net of tax82 102 67 
Net earnings attributable to BorgWarner Inc. $944 $537 $500 
Geographic Information

During the year ended December 31, 2022, approximately 81% of the Company’s consolidated net sales were outside the U.S., attributing sales to the location of production rather than the location of the customer. Outside the U.S., China, Mexico, Germany, Poland, South Korea and the United Kingdom exceeded 5% of consolidated net sales during the year ended December 31, 2022. The Company’s investments in equity securities are excluded from the definition of long-lived assets, as are goodwill and certain other non-current assets.
 Net salesLong-lived assets
(in millions)202220212020202220212020
United States$3,054 $2,490 $2,023 $635 $625 $937 
Europe:   
Germany1,439 1,342 1,175 355 405 338 
Poland1,086 1,121 696 328 324 352 
United Kingdom837 821 276 195 215 229 
Other Europe1,992 1,921 1,412 709 713 804 
Total Europe5,354 5,205 3,559 1,587 1,657 1,723 
China3,383 3,518 2,269 1,045 1,042 1,055 
Mexico1,987 1,736 1,035 653 623 367 
South Korea1,046 1,096 814 220 256 301 
Other foreign977 793 465 225 192 208 
Total$15,801 $14,838 $10,165 $4,365 $4,395 $4,591 

Sales to Major Customers

Consolidated net sales to Ford (including its subsidiaries) were approximately 13%, 10% and 13% for the years ended December 31, 2022, 2021 and 2020, respectively. Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 8%, 9% and 11% for the years ended December 31, 2022, 2021 and 2020. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented.

Sales by Product Line

Sales of turbochargers for light vehicles represented approximately 20%, 19% and 24% of consolidated net sales for the years ended December 31, 2022, 2021 and 2020, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.