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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2021
Segments, Geographical Areas [Abstract]  
Segment Reporting Disclosure [Text Block]
17. SEGMENT AND GEOGRAPHIC INFORMATION

Our business is organized into Driveline and Metal Forming segments, with each representing a reportable segment under ASC 280 - Segment Reporting. In the first quarter of 2021, we completed a reorganization of our segments, which included moving certain locations that were previously reported under our Driveline segment to our Metal Forming segment in order to better align our product and process technologies. The amounts in the tables below for the year ended December 31, 2020 and the year ended December 31, 2019 have been retrospectively recast to reflect this reorganization.

In the fourth quarter of 2019, we completed the Casting Sale. The Casting Sale did not qualify for classification as discontinued operations, as it did not represent a strategic shift in our business that had a major effect on our operations and financial results. As such, we continue to present Casting as a segment in the tables below, which is comprised entirely of the U.S. casting operations that were included in the sale.

The results of each segment are regularly reviewed by the chief operating decision maker to assess the performance of the segment and make decisions regarding the allocation of resources.

Our product offerings by segment are as follows:

•Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, SUVs, crossover vehicles (CUVs), passenger cars and commercial vehicles; and
•Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears and assemblies, connecting rods and variable valve timing products for OEMs and Tier 1 automotive suppliers.

We use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. Segment Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization for our reportable segments, excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, loss on the sale of a business, impairment charges, pension settlements, unrealized gains or losses on equity securities, and non-recurring items.

Year Ended December 31, 2021
DrivelineMetal FormingCastingCorporate and EliminationsTotal
(in millions)
Sales$3,744.9 $1,762.2 $— $— $5,507.1 
Less: Intersegment sales3.4 347.1 — — 350.5 
Net external sales$3,741.5 $1,415.1 $— $— $5,156.6 
Segment adjusted EBITDA$577.7 $255.6 $— $— $833.3 
Depreciation and amortization$301.9 $242.4 $— $— $544.3 
Capital expenditures$126.8 $50.5 $— $3.9 $181.2 
Total assets$2,925.6 $1,576.9 $— $1,133.2 $5,635.7 
Year Ended December 31, 2020
DrivelineMetal FormingCastingCorporate and EliminationsTotal
Sales$3,375.5 $1,652.0 $— $— $5,027.5 
Less: Intersegment sales2.9 313.8 — — 316.7 
Net external sales$3,372.6 $1,338.2 $— $— $4,710.8 
Segment adjusted EBITDA$474.8 $245.0 $— $— $719.8 
Depreciation and amortization$306.1 $215.8 $— $— $521.9 
Capital expenditures$125.3 $81.9 $— $8.4 $215.6 
Total assets$3,035.7 $1,680.3 $— $1,200.3 $5,916.3 
Year Ended December 31, 2019
DrivelineMetal FormingCastingCorporate and EliminationsTotal
Sales$4,220.4 $2,062.7 $669.2 $— $6,952.3 
Less: Intersegment sales11.3 368.6 41.5 — 421.4 
Net external sales$4,209.1 $1,694.1 $627.7 $— $6,530.9 
Segment adjusted EBITDA$579.0 $348.3 $43.0 $— $970.3 
Depreciation and amortization$288.0 $206.6 $42.3 $— $536.9 
Capital expenditures$250.3 $139.0 $28.5 $15.5 $433.3 
Total assets$3,557.9 $2,120.9 $— $965.8 $6,644.6 

Assets included in the Corporate and Eliminations column of the tables above represent AAM corporate assets, as well as eliminations of intercompany assets.
The following table represents a reconciliation of Segment Adjusted EBITDA to consolidated income (loss) before income taxes for the years ended December 31, 2021, 2020 and 2019:
Year Ended December 31,
202120202019
(in millions)
Segment adjusted EBITDA$833.3 $719.8 $970.3 
Interest expense(195.2)(212.3)(217.3)
Depreciation and amortization(544.3)(521.9)(536.9)
Impairment charges— (510.0)(665.0)
Restructuring and acquisition-related costs(49.4)(67.2)(57.8)
Pension settlements(42.3)(0.5)(9.8)
Loss on sale of business(2.7)(1.0)(21.3)
Gain on bargain purchase of business— — 10.8 
Unrealized gain on equity securities24.4 — — 
Debt refinancing and redemption costs(34.0)(7.9)(8.4)
Malvern Fire charges, net of recoveries11.4 (9.3)— 
Other— — 2.4 
Income (loss) before income taxes $1.2 $(610.3)$(533.0)

Financial information relating to our operations by geographic area is presented in the following table. Net sales are attributed to countries based upon location of production. Long-lived assets exclude deferred income taxes.
December 31,
202120202019
(in millions)
Net sales
United States$1,923.5 $1,816.7 $2,894.0 
Mexico2,058.9 1,808.5 2,353.1 
South America94.3 57.6 105.3 
China299.6 317.1 315.4 
All other Asia189.4 160.4 255.8 
Europe590.9 550.5 607.3 
Total net sales$5,156.6 $4,710.8 $6,530.9 
Long-lived assets
United States$1,976.5 $2,099.4 $2,805.8 
Mexico888.1 1,021.6 1,117.4 
South America40.9 49.7 61.9 
China164.8 185.1 191.4 
All other Asia87.1 84.2 106.8 
Europe501.2 491.5 439.4 
Total long-lived assets$3,658.6 $3,931.5 $4,722.7