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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2024
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. The results of each segment are regularly reviewed by the chief operating decision maker (CODM) to assess the performance of the segment and make decisions regarding the allocation of resources to the segments. Our CODM is our Chief Executive Officer. 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, CUVs, 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, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items.
|  | Year Ended December 31, 2024
|  | Driveline |  | Metal Forming |  |  |  |  |  | Corporate and Eliminations |  | Total
|  | (in millions)
Sales |  | $ | 4,253.3 |  |  | $ | 2,414.3 |  |  |  |  |  |  | $ | — |  |  | $ | 6,667.6 |
Less: Intersegment sales |  | 1.4 |  |  | 541.3 |  |  |  |  |  |  | — |  |  | 542.7 |
Net external sales |  | $ | 4,251.9 |  |  | $ | 1,873.0 |  |  |  |  |  |  | $ | — |  |  | $ | 6,124.9 |
Cost of goods sold (a) |  | 3,392.8 |  |  | 1,623.8 |  |  |  |  |  |  | — |  |  | 5,016.6 |
Selling, general and administrative expenses (b) |  | 287.9 |  |  | 79.3 |  |  |  |  |  |  | — |  |  | 367.2 |
Other segment expense (income), net (c) |  | (7.0) |  |  | (1.1) |  |  |  |  |  |  | — |  |  | (8.1) |
Segment adjusted EBITDA |  | $ | 578.2 |  |  | $ | 171.0 |  |  |  |  |  |  | $ | — |  |  | $ | 749.2 |
Depreciation and amortization |  | $ | 246.5 |  |  | $ | 223.2 |  |  |  |  |  |  | $ | — |  |  | $ | 469.7 |
Capital expenditures |  | $ | 140.3 |  |  | $ | 103.5 |  |  |  |  |  |  | $ | 4.2 |  |  | $ | 248.0 |
Total assets |  | $ | 2,420.6 |  |  | $ | 1,636.8 |  |  |  |  |  |  | $ | 1,002.5 |  |  | $ | 5,059.9 |
(a) Cost of goods sold excludes depreciation and amortization, which was $210.2 million for Driveline and $156.7 million for Metal Forming for the year ended December 31, 2024.
(b) Selling, general and administrative expenses excludes depreciation, which was $16.4 million for Driveline and $3.5 million for Metal Forming for the year ended December 31, 2024.
(c) Other segment expense (income), net primarily consists of the net impact of interest income and foreign exchange gains and losses.
|  | Year Ended December 31, 2023
|  | Driveline |  | Metal Forming |  |  |  |  |  | Corporate and Eliminations |  | Total
Sales |  | $ | 4,176.7 |  |  | $ | 2,454.3 |  |  |  |  |  |  | $ | — |  |  | $ | 6,631.0 |
Less: Intersegment sales |  | 0.2 |  |  | 551.3 |  |  |  |  |  |  | — |  |  | 551.5 |
Net external sales |  | $ | 4,176.5 |  |  | $ | 1,903.0 |  |  |  |  |  |  | $ | — |  |  | $ | 6,079.5 |
Cost of goods sold (a) |  | 3,396.1 |  |  | 1,676.9 |  |  |  |  |  |  | — |  |  | 5,073.0 |
Selling, general and administrative expenses (b) |  | 263.2 |  |  | 84.1 |  |  |  |  |  |  | — |  |  | 347.3 |
Other segment expense (income), net (c) |  | (26.4) |  |  | (7.7) |  |  |  |  |  |  | — |  |  | (34.1) |
Segment adjusted EBITDA |  | $ | 543.6 |  |  | $ | 149.7 |  |  |  |  |  |  | $ | — |  |  | $ | 693.3 |
Depreciation and amortization |  | $ | 260.3 |  |  | $ | 226.9 |  |  |  |  |  |  | $ | — |  |  | $ | 487.2 |
Capital expenditures |  | $ | 105.9 |  |  | $ | 80.1 |  |  |  |  |  |  | $ | 8.6 |  |  | $ | 194.6 |
Total assets |  | $ | 2,554.3 |  |  | $ | 1,788.7 |  |  |  |  |  |  | $ | 1,013.3 |  |  | $ | 5,356.3 |
(a) Cost of goods sold excludes depreciation and amortization, which was $222.7 million for Driveline and $159.5 million for Metal Forming for the year ended December 31, 2023.
(b) Selling, general and administrative expenses excludes depreciation, which was $16.0 million for Driveline and $3.6 million for Metal Forming for the year ended December 31, 2023.
(c) Other segment expense (income), net primarily consists of the net impact of interest income and foreign exchange gains and losses.
|  | Year Ended December 31, 2022
|  | Driveline |  | Metal Forming |  |  |  |  |  | Corporate and Eliminations |  | Total
Sales |  | $ | 4,063.5 |  |  | $ | 2,280.7 |  |  |  |  |  |  | $ | — |  |  | $ | 6,344.2 |
Less: Intersegment sales |  | — |  |  | 541.8 |  |  |  |  |  |  | — |  |  | 541.8 |
Net external sales |  | $ | 4,063.5 |  |  | $ | 1,738.9 |  |  |  |  |  |  | $ | — |  |  | $ | 5,802.4 |
Cost of goods sold (a) |  | 3,305.0 |  |  | 1,404.4 |  |  |  |  |  |  | — |  |  | 4,709.4 |
Selling, general and administrative expenses (b) |  | 256.4 |  |  | 70.2 |  |  |  |  |  |  | — |  |  | 326.6 |
Other segment expense (income), net (c) |  | (8.8) |  |  | 27.9 |  |  |  |  |  |  | — |  |  | 19.1 |
Segment adjusted EBITDA |  | $ | 510.9 |  |  | $ | 236.4 |  |  |  |  |  |  | $ | — |  |  | $ | 747.3 |
Depreciation and amortization |  | $ | 272.7 |  |  | $ | 219.4 |  |  |  |  |  |  | $ | — |  |  | $ | 492.1 |
Capital expenditures |  | $ | 103.3 |  |  | $ | 62.9 |  |  |  |  |  |  | $ | 5.2 |  |  | $ | 171.4 |
Total assets |  | $ | 2,542.0 |  |  | $ | 1,900.3 |  |  |  |  |  |  | $ | 1,027.1 |  |  | $ | 5,469.4 |
(a) Cost of goods sold excludes depreciation and amortization, which was $232.0 million for Driveline and $156.1 million for Metal Forming for the year ended December 31, 2022.
(b) Selling, general and administrative expenses excludes depreciation, which was $14.8 million for Driveline and $3.7 million for Metal Forming for the year ended December 31, 2022.
(c) Other segment expense (income), net primarily consists of the net impact of interest income and foreign exchange gains and losses, as well as amounts related to the Malvern Fire and Tekfor acquisition.
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, 2024, 2023 and 2022:
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
|  | (in millions)
Segment adjusted EBITDA |  | $ | 749.2 |  |  | $ | 693.3 |  |  | $ | 747.3 |
Interest expense |  | (186.0) |  |  | (201.7) |  |  | (174.5) |
Depreciation and amortization |  | (469.7) |  |  | (487.2) |  |  | (492.1) |
Impairment charge |  | (12.0) |  |  | — |  |  | — |
Restructuring and acquisition-related costs |  | (18.0) |  |  | (25.2) |  |  | (30.2) |
Pension curtailment and settlement charges |  | — |  |  | (1.3) |  |  | — |
Loss on equity securities |  | (0.1) |  |  | (1.1) |  |  | (25.5) |
Debt refinancing and redemption costs |  | (0.6) |  |  | (1.3) |  |  | (6.4) |
Malvern Fire insurance recoveries, net of charges |  | — |  |  | — |  |  | 39.1 |
Acquisition-related fair value inventory adjustment |  | — |  |  | — |  |  | (5.0) |
Gain on bargain purchase of business |  | — |  |  | — |  |  | 13.6 |
Income (loss) before income taxes |  | $ | 62.8 |  |  | $ | (24.5) |  |  | $ | 66.3 |
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,
| 2024 |  | 2023 |  | 2022
| (in millions)
Net sales |  |  |  |  |
United States | $ | 2,195.5 |  |  | $ | 2,163.5 |  |  | $ | 2,148.0 |
Mexico | 2,249.3 |  |  | 2,273.5 |  |  | 2,293.2 |
South America | 171.5 |  |  | 184.4 |  |  | 137.4 |
China | 328.8 |  |  | 271.6 |  |  | 280.0 |
All other Asia | 283.0 |  |  | 273.1 |  |  | 213.3 |
Europe | 896.8 |  |  | 913.4 |  |  | 730.5 |
Total net sales | $ | 6,124.9 |  |  | $ | 6,079.5 |  |  | $ | 5,802.4 |
Long-lived assets |  |  |  |  |
United States | $ | 1,621.8 |  |  | $ | 1,694.3 |  |  | $ | 1,778.9 |
Mexico | 739.8 |  |  | 778.4 |  |  | 821.3 |
South America | 59.8 |  |  | 75.8 |  |  | 71.2 |
China | 92.1 |  |  | 110.9 |  |  | 130.1 |
All other Asia | 50.2 |  |  | 79.2 |  |  | 80.5 |
Europe | 381.9 |  |  | 441.7 |  |  | 475.0 |
Total long-lived assets | $ | 2,945.6 |  |  | $ | 3,180.3 |  |  | $ | 3,357.0 |

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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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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