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REPORTING SEGMENTS AND RELATED INFORMATION
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTING SEGMENTS AND RELATED INFORMATIONThe Company’s business is aggregated into five reporting segments: Air Management, Drivetrain & Battery Systems, Fuel Systems, ePropulsion 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 2023, the Company elected to disaggregate the former e-Propulsion & Drivetrain reporting segment into two separate reporting segments of Drivetrain & Battery Systems and ePropulsion. The Drivetrain & Battery Systems segment’s technologies include battery management systems and control modules, software, friction and mechanical products for automatic transmissions and torque-management products. The ePropulsion segment primarily includes rotating electrical components, power electronics, inverters and electric motors.

In the first quarter of 2022, the Company announced that the Americas starter and alternator business, previously reported in its former 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 former e-Propulsion & Drivetrain segment.

The reporting segment disclosures have been updated accordingly, including recasting prior period information for the new reporting structures.

Segment Adjusted Operating Income (Loss) is the measure of segment income or loss used by the Company. Segment Adjusted Operating Income (Loss) 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 (Loss) is most reflective of the operational profitability or loss of our reporting segments.

The following tables show segment information and Segment Adjusted Operating Income (Loss) for the Company’s reporting segments:

Net Sales by Reporting Segment
Three Months Ended March 31, 2023
(in millions)CustomersInter-segmentNet
Air Management$1,953 $26 $1,979 
Drivetrain & Battery Systems955 — 955 
Fuel Systems507 61 568 
ePropulsion439 48 487 
Aftermarket326 4 330 
Inter-segment eliminations— (139)(139)
Net sales$4,180 $— $4,180 

Three Months Ended March 31, 2022
(in millions)CustomersInter-segmentNet
Air Management$1,752 $16 $1,768 
Drivetrain & Battery Systems895 — 895 
Fuel Systems529 62 591 
ePropulsion394 46 440 
Aftermarket304 3 307 
Inter-segment eliminations— (127)(127)
Net sales$3,874 $— $3,874 
Total Assets by Reporting Segment
(in millions)March 31, 2023December 31, 2022
Air Management$5,497 $5,376 
Drivetrain & Battery Systems3,830 3,963 
ePropulsion2,517 2,453 
Fuel Systems2,155 2,227 
Aftermarket1,309 1,281 
Total15,308 15,300 
Corporate1,809 1,694 
Consolidated$17,117 $16,994 

Segment Adjusted Operating Income (Loss)
Three Months Ended March 31,
(in millions)20232022
Air Management$285 $251 
Drivetrain & Battery Systems110 113 
Fuel Systems48 66 
Aftermarket45 39 
ePropulsion(34)(17)
Segment Adjusted Operating Income454 452 
Corporate, including stock-based compensation58 63 
Merger, acquisition and divestiture expense, net25 23 
Intangible asset amortization expense24 23 
Restructuring expense (Note 5)7 15 
Gain on sale of business— (24)
Equity in affiliates’ earnings, net of tax(4)(8)
Unrealized loss on debt and equity securities15 39 
Interest expense, net10 15 
Other postretirement expense (income)2 (9)
Earnings before income taxes and noncontrolling interest317 315 
Provision for income taxes87 91 
Net earnings230 224 
Net earnings attributable to noncontrolling interest, net of tax13 24 
Net earnings attributable to BorgWarner Inc. $217 $200