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Segment Reporting (Notes) | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | 16. SEGMENT REPORTING Our business is organized into Driveline and Metal Forming segments, with each representing a reportable segment under ASC 280 - Segment Reporting. 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 to the segments. 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, sport utility vehicles (SUVs), crossover vehicles, passenger cars and commercial vehicles; and •Metal Forming products consist primarily of engine, transmission, driveline and safety-critical components for traditional internal combustion engine and electric vehicle architectures including light vehicles, commercial vehicles and off-highway vehicles, as well as products for industrial markets. 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. We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is defined as EBITDA 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. On June 1, 2022, our acquisition of Tekfor became effective and we began consolidating the results of Tekfor on that date, which are reported in our Metal Forming segment for the three and nine months ended September 30, 2022. The following tables represent information by reportable segment for the three and nine months ended September 30, 2022 and 2021 (in millions):
|  | Three Months Ended September 30, 2022
|  | Driveline |  | Metal Forming |  |  |  |  |  | Total
Sales |  | $ | 1,061.1 |  |  | $ | 591.2 |  |  |  |  |  |  | $ | 1,652.3 |
Less: Intersegment sales |  | 1.3 |  |  | 115.8 |  |  |  |  |  |  | 117.1 |
Net external sales |  | $ | 1,059.8 |  |  | $ | 475.4 |  |  |  |  |  |  | $ | 1,535.2 |
Segment Adjusted EBITDA |  | $ | 146.4 |  |  | $ | 52.0 |  |  |  |  |  |  | $ | 198.4 |
|  | Three Months Ended September 30, 2021
|  | Driveline |  | Metal Forming |  |  |  |  |  | Total
Sales |  | $ | 870.4 |  |  | $ | 422.7 |  |  |  |  |  |  | $ | 1,293.1 |
Less: Intersegment sales |  | 0.8 |  |  | 79.2 |  |  |  |  |  |  | 80.0 |
Net external sales |  | $ | 869.6 |  |  | $ | 343.5 |  |  |  |  |  |  | $ | 1,213.1 |
Segment Adjusted EBITDA |  | $ | 128.4 |  |  | $ | 54.8 |  |  |  |  |  |  | $ | 183.2 |
|  | Nine Months Ended September 30, 2022 |  |  |  |  |  |
|  | Driveline |  | Metal Forming |  | Total |  |  |  |  |  |  |  |  |  |
Sales |  | $ | 3,163.6 |  |  | $ | 1,585.9 |  |  | $ | 4,749.5 |  |  |  |  |  |  |  |  |  |  |
Less: intersegment sales |  | 3.6 |  |  | 336.2 |  |  | 339.8 |  |  |  |  |  |  |  |  |  |  |
Net external sales |  | $ | 3,160.0 |  |  | $ | 1,249.7 |  |  | $ | 4,409.7 |  |  |  |  |  |  |  |  |  |  |
Segment Adjusted EBITDA |  | $ | 420.3 |  |  | $ | 169.3 |  |  | $ | 589.6 |  |  |  |  |  |  |  |  |  |  |
|  | Nine Months Ended September 30, 2021 |  |
|  | Driveline |  | Metal Forming |  | Total |  |  |  |  |  |  |  |  |  |
Sales |  | $ | 2,831.9 |  |  | $ | 1,352.1 |  |  | $ | 4,184.0 |  |  |  |  |  |  |  |  |  |  |
Less: intersegment sales |  | 2.4 |  |  | 260.1 |  |  | 262.5 |  |  |  |  |  |  |  |  |  |  |
Net external sales |  | $ | 2,829.5 |  |  | $ | 1,092.0 |  |  | $ | 3,921.5 |  |  |  |  |  |  |  |  |  |  |
Segment Adjusted EBITDA |  | $ | 450.2 |  |  | $ | 218.5 |  |  | $ | 668.7 |  |  |  |  |  |  |  |  |  |  |
Total assets by reportable segment as of September 30, 2022 and December 31, 2021 were as follows (in millions):
| September 30, 2022
| Driveline |  | Metal Forming |  | Other |  | Total
Total Assets | $ | 2,898.8 |  |  | $ | 1,748.9 |  |  | $ | 1,031.9 |  |  | $ | 5,679.6 |
| December 31, 2021
| Driveline |  | Metal Forming |  | Other |  | Total
Total Assets | $ | 2,925.6 |  |  | $ | 1,576.9 |  |  | $ | 1,133.2 |  |  | $ | 5,635.7 |
Assets included in the Other column in the table above represent AAM Corporate assets, as well as eliminations of intercompany assets. The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income (loss) before income taxes for the three and nine months ended September 30, 2022 and 2021:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (in millions)
Total segment adjusted EBITDA | $ | 198.4 |  |  | $ | 183.2 |  |  | $ | 589.6 |  |  | $ | 668.7 |
Interest expense | (44.8) |  |  | (49.7) |  |  | (132.2) |  |  | (150.7) |
Depreciation and amortization | (124.8) |  |  | (135.6) |  |  | (367.1) |  |  | (421.2) |
Restructuring and acquisition-related costs | (7.9) |  |  | (7.4) |  |  | (26.4) |  |  | (40.8) |
Loss on sale of business | — |  |  | — |  |  | — |  |  | (2.7) |
Unrealized gain (loss) on equity securities | (2.3) |  |  | 19.4 |  |  | (24.0) |  |  | 19.4 |
Debt refinancing and redemption costs | (0.2) |  |  | (31.6) |  |  | (6.0) |  |  | (34.0) |
Non-recurring items: |  |  |  |  |  |  |
Malvern Fire charges, net of recoveries | 1.0 |  |  | 5.7 |  |  | 6.4 |  |  | 11.1 |
Acquisition-related fair value inventory adjustment | — |  |  | — |  |  | (5.0) |  |  | — |
Gain on bargain purchase of business | 1.4 |  |  | — |  |  | 13.0 |  |  | — |
Income (loss) before income taxes | $ | 20.8 |  |  | $ | (16.0) |  |  | $ | 48.3 |  |  | $ | 49.8 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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