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Segment Reporting (Notes) | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | 15. 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 (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, 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, gains or losses on the derivative associated with our Business Combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items. The following tables represent information by reportable segment for the three months ended March 31, 2025 and 2024 (in millions):
|  | Three Months Ended March 31, 2025
|  | Driveline |  | Metal Forming |  |  |  | Corporate and Eliminations |  | Total
Sales |  | $ | 957.8 |  |  | $ | 575.8 |  |  |  |  | $ | — |  |  | $ | 1,533.6 |
Less: Intersegment sales |  | 0.6 |  |  | 121.7 |  |  |  |  | — |  |  | 122.3 |
Net external sales |  | $ | 957.2 |  |  | $ | 454.1 |  |  |  |  | $ | — |  |  | $ | 1,411.3 |
Cost of goods sold (a) |  | 765.6 |  |  | 385.3 |  |  |  |  | — |  |  | 1,150.9 |
Selling, general and administrative expenses (b) |  | 65.9 |  |  | 19.9 |  |  |  |  | — |  |  | 85.8 |
Other segment expense (income), net (c) |  | 0.4 |  |  | (3.1) |  |  |  |  | — |  |  | (2.7) |
Segment Adjusted EBITDA |  | $ | 125.3 |  |  | $ | 52.0 |  |  |  |  | $ | — |  |  | $ | 177.3 |
Depreciation and amortization |  | $ | 59.4 |  |  | $ | 52.8 |  |  |  |  | $ | — |  |  | $ | 112.2 |
Capital expenditures |  | $ | 41.5 |  |  | $ | 27.2 |  |  |  |  | $ | 0.6 |  |  | $ | 69.3 |
Total assets |  | $ | 2,460.4 |  |  | $ | 1,671.7 |  |  |  |  | $ | 1,007.3 |  |  | $ | 5,139.4 |
(a) Cost of goods sold excludes depreciation and amortization, which was $50.5 million for Driveline and $36.0 million for Metal Forming for the three months ended March 31, 2025.
(b) Selling, general and administrative expenses excludes depreciation, which was $4.2 million for Driveline and $0.9 million for Metal Forming for the three months ended March 31, 2025.
(c) Other segment expense (income), net primarily consists of the net impact of interest income and foreign exchange gains and losses.
|  | Three Months Ended March 31, 2024
|  | Driveline |  | Metal Forming |  |  |  | Corporate and Eliminations |  | Total
Sales |  | $ | 1,106.4 |  |  | $ | 644.1 |  |  |  |  | $ | — |  |  | $ | 1,750.5 |
Less: Intersegment sales |  | — |  |  | 143.6 |  |  |  |  | — |  |  | 143.6 |
Net external sales |  | $ | 1,106.4 |  |  | $ | 500.5 |  |  |  |  | $ | — |  |  | $ | 1,606.9 |
Cost of goods sold (a) |  | 881.4 |  |  | 434.8 |  |  |  |  | — |  |  | 1,316.2 |
Selling, general and administrative expenses (b) |  | 71.8 |  |  | 21.6 |  |  |  |  | — |  |  | 93.4 |
Other segment expense (income), net (c) |  | (4.2) |  |  | (4.1) |  |  |  |  | — |  |  | (8.3) |
Segment Adjusted EBITDA |  | $ | 157.4 |  |  | $ | 48.2 |  |  |  |  | $ | — |  |  | $ | 205.6 |
Depreciation and amortization |  | $ | 62.1 |  |  | $ | 55.7 |  |  |  |  | $ | — |  |  | $ | 117.8 |
Capital expenditures |  | $ | 24.6 |  |  | $ | 22.4 |  |  |  |  | $ | 1.0 |  |  | $ | 48.0 |
Total assets |  | $ | 2,607.9 |  |  | $ | 1,786.6 |  |  |  |  | $ | 976.6 |  |  | $ | 5,371.1 |
(a) Cost of goods sold excludes depreciation and amortization, which was $53.1 million for Driveline and $39.1 million for Metal Forming for the three months ended March 31, 2024.
(b) Selling, general and administrative expenses excludes depreciation, which was $4.0 million for Driveline and $0.9 million for Metal Forming for the three months ended March 31, 2024.
(c) Other segment expense (income), net primarily consists of the net impact of interest income and foreign exchange gains and losses.
The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income before income taxes for the three months ended March 31, 2025 and 2024:
|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (in millions)
Total segment adjusted EBITDA |  |  |  |  | $ | 177.3 |  |  | $ | 205.6 |
Interest expense |  |  |  |  | (42.9) |  |  | (49.0) |
Depreciation and amortization |  |  |  |  | (112.2) |  |  | (117.8) |
Restructuring and acquisition-related costs |  |  |  |  | (19.7) |  |  | (2.5) |
Gain on Business Combination Derivative (Note 6) |  |  |  |  | 21.9 |  |  | — |
Gain on equity securities |  |  |  |  | — |  |  | 0.1 |
Debt refinancing and redemption costs |  |  |  |  | (3.3) |  |  | — |
Income before income taxes |  |  |  |  | $ | 21.1 |  |  | $ | 36.4 |

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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 -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 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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