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REPORTABLE SEGMENTS
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company discloses segment information under four reportable segments, consistent with the operating segments that are evaluated by management, including the chief operating decision maker
(“CODM”). The Company’s CODM is its Chief Executive Officer. The reportable segments are further described below. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems.

Effective July 1, 2024, the Company implemented a new business unit and management structure designed to further enhance the execution of the Company’s strategy. The Company now reports its results in the following four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems and Battery & Charging Systems. The reportable segment disclosures have been updated accordingly, which included recasting prior period information for the new reporting structure.

As further described in Note 3, “Acquisitions and Dispositions,” in February 2025, the Company made the decision to exit its charging business within the Battery & Charging Systems reportable segment. As of March 31, 2025, this plan did not result in a change to the Company’s reportable segments.

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 for the Company’s reportable segments adjusted to exclude 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 Company’s CODM uses Segment Adjusted Operating Income (Loss) and the expenses disclosed below to assess the performance of its reportable segments. The CODM uses this information to assist with decisions about future growth, capital investments and cost reduction initiatives by reviewing trends in the business, monitoring variances to historical results and previously forecasted information and performing other analytical comparisons.

The following tables show net sales, segment expenses, Segment Adjusted Operating Income (Loss) and other segment information for the Company’s reportable segments. The segment expenses do not include non-comparable items that are excluded in the calculation of Segment Adjusted Operating Income (Loss):

Net Sales and Expenses by Reportable Segment
Three Months Ended March 31, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$1,454 $1,356 $555 $150 $— $3,515 
Net sales - inter-segment— 5 6 — (11)— 
Net sales$1,454 $1,361 $561 $150 $(11)$3,515 
Cost of sales1,151 1,079 492 150 
Selling, general and administrative expenses - R&D, net41 29 99 11 
Selling, general and administrative expenses - Other27 10 14 11 
Other segment items1
— — (1)— 
Segment Adjusted Operating Income (Loss)$235 $243 $(43)$(22)
Three Months Ended March 31, 2024
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$1,572 $1,416 $430 $177 $— $3,595 
Net sales - inter-segment2 3 6 — (11)— 
Net sales$1,574 $1,419 $436 $177 $(11)$3,595 
Cost of sales1,275 1,124 386 171 
Selling, general and administrative expenses - R&D, net42 32 100 12 
Selling, general and administrative expenses - Other28 9 13 11 
Other segment items1
1 1 (1)(2)
Segment Adjusted Operating Income (Loss)$228 $253 $(62)$(15)
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1 Other segment items include other income and expenses to derive at segment adjusted operating income.
Segment Adjusted Operating Income (Loss)
Three Months Ended March 31,
(in millions)20252024
Turbos & Thermal Technologies$235 $228 
Drivetrain & Morse Systems243 253 
PowerDrive Systems(43)(62)
Battery & Charging Systems(22)(15)
Segment Adjusted Operating Income413 404 
Corporate, including stock-based compensation61 65 
Impairment charges39 — 
Restructuring expense (Note 5)31 19 
Costs to exit charging business26 — 
Intangible asset amortization expense17 17 
Merger and acquisition expense, net2 2 
Loss on sale of businesses1 — 
Adjustments associated with Spin-Off related balances(3)— 
Other non-comparable items2 6 
Equity in affiliates’ earnings, net of tax(10)(5)
Unrealized and realized loss on equity and debt securities— 2 
Interest expense, net12 5 
Other postretirement expense3 3 
Earnings from continuing operations before income taxes and noncontrolling interest$232 $290 
Segment information
Depreciation and amortization
Long-lived asset expenditures1
Total assets
(in millions)Three Months Ended March 31, 2025Three Months Ended March 31, 2024Three Months Ended March 31, 2025Three Months Ended March 31, 2024March 31, 2025December 31, 2024
Turbos & Thermal Technologies$40 $43 $41 $40 $3,882 $3,693 
Drivetrain & Morse Systems49 52 24 35 3,949 3,872 
PowerDrive Systems43 36 44 88 2,873 2,792 
Battery & Charging Systems16 12 8 22 1,006 1,082 
Total148 143 117 185 11,710 11,439 
Corporate2
7 7 2 5 2,120 2,554 
Consolidated$155 $150 $119 $190 $13,830 $13,993 
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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.