XML 40 R27.htm IDEA: XBRL DOCUMENT v3.23.2
REPORTABLE SEGMENTS AND RELATED INFORMATION
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company’s business is aggregated into five reportable 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 reportable segment into two separate reportable 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 reportable 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 reportable segments.

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

Net Sales by Reportable Segment
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$2,003 $24 $2,027 $3,956 $50 $4,006 
Drivetrain & Battery Systems1,117 1 1,118 2,072 1 2,073 
Fuel Systems545 60 605 1,052 121 1,173 
ePropulsion519 48 567 958 96 1,054 
Aftermarket336 3 339 662 7 669 
Inter-segment eliminations— (136)(136)— (275)(275)
Net sales$4,520 $— $4,520 $8,700 $— $8,700 

Three Months Ended June 30, 2022Six Months Ended June 30, 2022
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,692 $32 $1,724 $3,444 $48 $3,492 
Drivetrain & Battery Systems896 — 896 1,791 — 1,791 
Fuel Systems474 42 516 1,003 104 1,107 
ePropulsion374 58 432 768 104 872 
Aftermarket323 3 326 627 6 633 
Inter-segment eliminations— (135)(135)— (262)(262)
Net sales$3,759 $— $3,759 $7,633 $— $7,633 


Total Assets by Reportable Segment
(in millions)June 30, 2023December 31, 2022
Air Management$5,568 $5,376 
Drivetrain & Battery Systems3,951 3,963 
ePropulsion2,800 2,453 
Fuel Systems2,231 2,227 
Aftermarket1,329 1,281 
Total15,879 15,300 
Corporate1,438 1,694 
Consolidated$17,317 $16,994 
Segment Adjusted Operating Income (Loss)
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2023202220232022
Air Management$307 $244 $592 $495 
Drivetrain & Battery Systems140 113 250 226 
Fuel Systems57 44 105 110 
Aftermarket52 51 97 90 
ePropulsion(19)(42)(53)(59)
Segment Adjusted Operating Income537 410 991 862 
Corporate, including stock-based compensation63 62 121 125 
Merger, acquisition and divestiture expense, net56 9 86 32 
Intangible asset amortization expense24 27 48 50 
Restructuring expense (Note 5)12 27 19 42 
Service and lease agreement termination9 — 9 — 
Gain on sale of business(5)— (5)(24)
Gain on sale of asset(6)— (6)— 
Other non-comparable items1 13 (4)13 
Equity in affiliates’ earnings, net of tax(14)(11)(18)(19)
Unrealized loss (gain) on debt and equity securities54 (11)69 28 
Interest expense, net12 15 22 30 
Other postretirement expense (income)3 (9)5 (18)
Earnings before income taxes and noncontrolling interest328 288 645 603 
Provision for income taxes106 57 193 148 
Net earnings222 231 $452 $455 
Net earnings attributable to noncontrolling interest, net of tax18 15 31 39 
Net earnings attributable to BorgWarner Inc. $204 $216 $421 $416