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REPORTING SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company’s business is aggregated into three reportable 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 previous years, the Company presented its results under four reportable segments: Air Management, ePropulsion & Drivetrain, Fuel Systems and Aftermarket.

In the first quarter of 2023, the Company elected to disaggregate Air Management and ePropulsion & Drivetrain segments into Air Management, Drivetrain & Battery Systems and ePropulsion and reported its results in a total of five reportable segments: Air Management, Drivetrain & Battery Systems, ePropulsion, Fuel Systems and Aftermarket. As a result of the Spin-Off, Fuel Systems and Aftermarket are no longer reportable segments.

The reportable 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.
•Drivetrain & Battery Systems. This segment’s technologies include battery modules and systems, control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (“RWD”) and all-wheel drive (“AWD”) transfer case systems and coupling systems.
•ePropulsion. This segment’s products and technologies provide industry-leading performance and efficiency with quick-to-market solutions powering current and next-generation electric and hybrid vehicles. The ePropulsion segment’s technologies include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes (multiple combined power electronics components). Rotating electric machines are also part of the ePropulsion portfolio, including eMotors and generators as well as fully integrated drive modules consisting of inverter,
eMotor and gear reducer. Additionally, the segment’s products include electronic controls such as engine control units, transmission control units, battery management systems, propulsion controllers and domain controllers.

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 its reportable segments.

The following tables show segment information and Segment Adjusted Operating Income (Loss) for the Company’s reportable segments:
2023 Segment information
Net salesYear-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$7,750 $83 $7,833 $5,505 $252 $252 
Drivetrain & Battery Systems4,346 2 4,348 4,023 172 162 
ePropulsion2,102 64 2,166 3,185 127 384 
Inter-segment eliminations— (149)(149)— — — 
Total14,198 — 14,198 12,713 551 798 
Corporate2
— — — 1,740 31 34 
Consolidated$14,198 $— $14,198 $14,453 $582 $832 
2022 Segment information
Net salesYear-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$7,076 $61 $7,137 $5,329 $243 $187 
Drivetrain & Battery Systems3,753 (18)3,735 3,963 166 166 
ePropulsion1,806 100 1,906 2,349 111 257 
Inter-segment eliminations— (143)(143)— — — 
Total12,635 — 12,635 11,641 520 610 
Corporate2
— — — 1,691 32 12 
Consolidated$12,635 $— $12,635 $13,332 $552 $622 
2021 Segment information
Net salesYear-end assets Depreciation/ amortization
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$6,761 $106 $6,867 $5,174 $281 $214 
Drivetrain & Battery Systems3,659 1 3,660 4,229 160 150 
ePropulsion1,383 44 1,427 1,828 102 113 
Inter-segment eliminations— (151)(151)— — — 
Total11,803 — 11,803 11,231 543 477 
Corporate2
— — — 1,656 31 37 
Consolidated$11,803 $— $11,803 $12,887 $574 $514 
_______________
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.
Segment Adjusted Operating Income (Loss)
Year Ended December 31,
(in millions)202320222021
Air Management$1,171 $1,073 $1,037 
Drivetrain & Battery Systems545 449 524 
ePropulsion(90)(88)(48)
Segment Adjusted Operating Income1,626 1,434 1,513 
Corporate, including stock-based compensation278 282 234 
Intangible asset amortization expense67 69 59 
Restructuring expense79 48 108 
Merger and acquisition expense, net23 9 48 
Asset impairments and lease modifications29 30 — 
(Gain) loss on sale of business(5)(13)29 
Gain on sale of assets(13)— — 
Other non-comparable items8 — (3)
Customer warranty settlement— — 124 
Equity in affiliates' earnings, net of tax(30)(28)(42)
Realized and unrealized loss on debt and equity securities174 73 362 
Interest expense, net10 51 91 
Other postretirement expense (income)15 — (7)
Earnings from continuing operations before income taxes and noncontrolling interest$991 $913 $510 

Geographic Information

During the year ended December 31, 2023, approximately 84% 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, Hungary and South Korea exceeded 5% of consolidated net sales during the year ended December 31, 2023. 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)202320222021202320222021
United States$2,334 $2,143 $2,125 $778 $469 $489 
Europe:   
Germany1,669 1,443 1,338 393 354 401 
Poland1,121 937 961 342 277 276 
Hungary904 636 469 167 170 193 
Other Europe1,386 1,056 1,023 456 327 289 
Total Europe5,080 4,072 3,791 1,358 1,128 1,159 
China2,998 2,864 2,958 876 821 776 
Mexico1,760 1,727 1,208 374 612 561 
South Korea1,163 1,073 1,117 197 205 239 
Other foreign863 756 604 200 191 164 
Total$14,198 $12,635 $11,803 $3,783 $3,426 $3,388 
Sales to Major Customers

Consolidated net sales to Ford (including its subsidiaries) were approximately 14%, 15% and 13% for the years ended December 31, 2023, 2022 and 2021, respectively. Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 11%, 9% and 9% for the years ended December 31, 2023, 2022 and 2021. 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 21%, 26% and 24% of consolidated net sales for the years ended December 31, 2023, 2022 and 2021, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.