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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2020
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company has granted restricted common stock and restricted stock units (collectively, "restricted stock") and performance share units as long-term incentive awards to employees and non-employee directors under the BorgWarner Inc. 2014 Stock Incentive Plan, as amended ("2014 Plan") and the BorgWarner Inc. 2018 Stock Incentive Plan ("2018 Plan"). The Company's Board of Directors adopted the 2018 Plan as a replacement to the 2014 Plan in February 2018, and the Company's stockholders approved the 2018 Plan at the annual meeting of stockholders on April 25, 2018. After stockholders approved the 2018 Plan, the Company could no longer make grants under the 2014 Plan. The shares that were available for issuance under the 2014 Plan were cancelled upon approval of the 2018 Plan. The 2018 Plan authorizes the issuance of a total of 7 million shares, of which approximately 5 million shares were available for future issuance as of September 30, 2020. Restricted stock: During the first nine months of 2020, the Company granted shares of restricted stock of 775,705 and 30,674 to employees and non-employee directors, respectively. Restricted stock granted to employees generally vests 50% after two years and the remainder after three years. Restricted stock granted to non-employee directors generally vests on the first anniversary of the grant date. The Company recognizes the value of the restricted stock, which is equal to the market value of the Company’s common stock on the date of grant, as compensation expense ratably over the restricted stock's vesting period. As of September 30, 2020, the Company had $38 million of unrecognized compensation expense that will be recognized over a weighted average period of 1.3 years. The Company recorded restricted stock compensation expense of $7 million and $8 million for the three months ended September 30, 2020 and 2019, respectively, and $22 million for the nine months ended September 30, 2020 and 2019. A summary of the Company’s nonvested restricted stock for the nine months ended September 30, 2020 is as follows:
| Shares subject to restriction (thousands) |  | Weighted average grant date fair value
Nonvested at December 31, 2019 | 1,664 |  |  | $ | 44.26 |
Granted | 766 |  |  | $ | 34.05 |
Vested | (466) |  |  | $ | 46.00 |
Forfeited | (9) |  |  | $ | 42.23 |
Nonvested at March 31, 2020 | 1,955 |  |  | $ | 39.87 |
Granted | 31 |  |  | $ | 29.67 |
Vested | (75) |  |  | $ | 41.19 |
Forfeited | (24) |  |  | $ | 40.49 |
Nonvested at June 30, 2020 | 1,887 |  |  | $ | 39.65 |
Granted | 9 |  |  | $ | 37.77 |
Vested | (9) |  |  | $ | 38.68 |
Forfeited | (33) |  |  | $ | 39.80 |
Nonvested at September 30, 2020 | 1,854 |  |  | $ | 39.64 |
Performance share units: The Company grants performance share units to members of senior management that vest at the end of three-year periods based the following metrics: •Total Stockholder Return Units: based on the Company's total stockholder return relative to a peer group of companies. •Relative Revenue Growth Units: based on the Company's revenue growth relative to the vehicle market. •Adjusted Earnings Per Share Units: introduced in the first quarter of 2020, this performance metric is based on the Company’s earnings per share adjusted for certain one-time items and non-operating gains and losses against a 3-year defined target. A summary of the status of the Company’s nonvested performance share units for the three and nine months ended September 30, 2020 is as follows:
| Total Stockholder Return |  | Relative Revenue Growth |  | Adjusted Earnings Per Share
| Number of shares (thousands) |  | Weighted average grant date fair value |  | Number of shares (thousands) |  | Weighted average grant date fair value |  | Number of shares (thousands) |  | Weighted average grant date fair value
Nonvested at December 31, 2019 | 240 |  |  | $ | 64.61 |  |  | 240 |  |  | $ | 48.52 |  |  | — |  |  | $ | — |
Granted | 142 |  |  | $ | 28.55 |  |  | 142 |  |  | $ | 34.11 |  |  | 115 |  |  | $ | 34.11 |
Nonvested at March 31, 2020 | 382 |  |  | $ | 48.02 |  |  | 382 |  |  | $ | 41.54 |  |  | 115 |  |  | $ | 34.11 |
Forfeited | (8) |  |  | $ | 50.17 |  |  | (8) |  |  | $ | 42.35 |  |  | (3) |  |  | $ | 34.11 |
Nonvested at June 30, 2020 | 374 |  |  | $ | 47.97 |  |  | 374 |  |  | $ | 41.52 |  |  | 112 |  |  | $ | 34.11 |
Granted | 2 |  |  | $ | 28.55 |  |  | 2 |  |  | $ | 37.77 |  |  | 2 |  |  | $ | 37.77 |
Forfeited | (5) |  |  | $ | 73.11 |  |  | (5) |  |  | $ | 52.64 |  |  | — |  |  | $ | — |
Nonvested at September 30, 2020 | 371 |  |  | $ | 47.60 |  |  | 371 |  |  | $ | 41.35 |  |  | 114 |  |  | $ | 34.16 |
The Company recorded compensation expense for performance share units in the periods presented below:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Total Stockholder Return |  | $ | 1 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 5 |
Relative Revenue Growth |  | 4 |  |  | 3 |  |  | 3 |  |  | 3 |
Adjusted Earnings Per Share |  | — |  |  | — |  |  | 1 |  |  | — |
Total compensation expense |  | $ | 5 |  |  | $ | 5 |  |  | $ | 8 |  |  | $ | 8 |
In 2018, the Company modified the vesting provisions of restricted stock and performance share unit grants made to certain retiring executive officers to allow certain of the outstanding awards, that otherwise would have been forfeited, to vest upon retirement. This resulted in net restricted stock and performance share unit compensation expense of $2 million for the nine months ended September 30, 2019.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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