XML 34 R24.htm IDEA: XBRL DOCUMENT
v3.23.2

Segment Reporting (Notes) | 6 Months Ended
--- | ---
Jun. 30, 2023
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, 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. In the first quarter of 2023, we moved a plant location that was 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 three and six months ended June 30, 2022 have been recast to reflect this reorganization. The following tables represent information by reportable segment for the three and six months ended June 30, 2023 and 2022 (in millions):
|  | Three Months Ended June 30, 2023
|  | Driveline |  | Metal Forming |  |  |  |  |  | Total
Sales |  | $ | 1,086.5 |  |  | $ | 634.2 |  |  |  |  |  |  | $ | 1,720.7 |
Less: Intersegment sales |  | 0.1 |  |  | 149.9 |  |  |  |  |  |  | 150.0 |
Net external sales |  | $ | 1,086.4 |  |  | $ | 484.3 |  |  |  |  |  |  | $ | 1,570.7 |
Segment Adjusted EBITDA |  | $ | 152.1 |  |  | $ | 39.5 |  |  |  |  |  |  | $ | 191.6 |
|  | Three Months Ended June 30, 2022
|  | Driveline |  | Metal Forming |  |  |  |  |  | Total
Sales |  | $ | 1,024.7 |  |  | $ | 557.7 |  |  |  |  |  |  | $ | 1,582.4 |
Less: Intersegment sales |  | — |  |  | 144.1 |  |  |  |  |  |  | 144.1 |
Net external sales |  | $ | 1,024.7 |  |  | $ | 413.6 |  |  |  |  |  |  | $ | 1,438.3 |
Segment Adjusted EBITDA |  | $ | 132.4 |  |  | $ | 62.7 |  |  |  |  |  |  | $ | 195.1 |
|  | Six Months Ended June 30, 2023
|  | Driveline |  | Metal Forming |  |  |  |  |  | Total
Sales |  | $ | 2,100.3 |  |  | $ | 1,253.3 |  |  |  |  |  |  | $ | 3,353.6 |
Less: Intersegment sales |  | 0.1 |  |  | 288.9 |  |  |  |  |  |  | 289.0 |
Net external sales |  | $ | 2,100.2 |  |  | $ | 964.4 |  |  |  |  |  |  | $ | 3,064.6 |
Segment Adjusted EBITDA |  | $ | 266.2 |  |  | $ | 100.8 |  |  |  |  |  |  | $ | 367.0 |
|  | Six Months Ended June 30, 2022
|  | Driveline |  | Metal Forming |  |  |  |  |  | Total
Sales |  | $ | 2,070.1 |  |  | $ | 1,082.8 |  |  |  |  |  |  | $ | 3,152.9 |
Less: Intersegment sales |  | — |  |  | 278.4 |  |  |  |  |  |  | 278.4 |
Net external sales |  | $ | 2,070.1 |  |  | $ | 804.4 |  |  |  |  |  |  | $ | 2,874.5 |
Segment Adjusted EBITDA |  | $ | 255.2 |  |  | $ | 136.0 |  |  |  |  |  |  | $ | 391.2 |
The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income before income taxes for the three and six months ended June 30, 2023 and 2022:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (in millions)
Total segment adjusted EBITDA | $ | 191.6 |  |  | $ | 195.1 |  |  | $ | 367.0 |  |  | $ | 391.2 |
Interest expense | (50.2) |  |  | (42.7) |  |  | (100.7) |  |  | (87.4) |
Depreciation and amortization | (120.5) |  |  | (121.9) |  |  | (245.4) |  |  | (242.3) |
Restructuring and acquisition-related costs | (7.9) |  |  | (9.6) |  |  | (12.7) |  |  | (18.5) |
Unrealized gain (loss) on equity securities | 0.3 |  |  | (3.7) |  |  | — |  |  | (21.7) |
Debt refinancing and redemption costs | — |  |  | (0.2) |  |  | — |  |  | (5.8) |
Non-recurring items: |  |  |  |  |  |  |
Malvern Fire insurance recoveries (charges), net | — |  |  | (0.1) |  |  | — |  |  | 5.4 |
Acquisition-related fair value inventory adjustment | — |  |  | (5.0) |  |  | — |  |  | (5.0) |
Gain on bargain purchase of business | — |  |  | 11.6 |  |  | — |  |  | 11.6 |
Income before income taxes | $ | 13.3 |  |  | $ | 23.5 |  |  | $ | 8.2 |  |  | $ | 27.5 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration