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FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended
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Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Summary of assets and liabilities measured at fair value | The following tables classify assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020:
|  |  | Basis of fair value measurements |  |
| Balance at December 31, 2021 |  | Quoted prices in active markets for identical items (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3) |  | Valuation technique
(in millions) |  |  |  |
Assets: |  |  |  |  |  |  |  |  |
Long-term receivables | $ | 35 |  |  | $ | — |  |  | $ | 17 |  |  | $ | 18 |  |  | C
Investment in equity securities | $ | 70 |  |  | $ | 70 |  |  | $ | — |  |  | $ | — |  |  | A
Foreign currency contracts | $ | 13 |  |  | $ | — |  |  | $ | 13 |  |  | $ | — |  |  | A
Net investment hedge contracts | $ | 8 |  |  | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | A
Liabilities: |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 8 |  |  | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | A
Net investment hedge contracts | $ | 54 |  |  | $ | — |  |  | $ | 54 |  |  | $ | — |  |  | A
|  |  | Basis of fair value measurements |  |
(in millions) | Balance at December 31, 2020 |  | Quoted prices in active markets for identical items (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3) |  | Valuation technique
Assets: |  |  |  |  |  |  |  |  |
Investment in equity securities | $ | 432 |  |  | $ | 432 |  |  | $ | — |  |  |  |  | A
Foreign currency contracts | $ | 5 |  |  | $ | — |  |  | $ | 5 |  |  | $ | — |  |  | A
Liabilities: |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 6 |  |  | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | A
Net investment hedge contracts | $ | 161 |  |  | $ | — |  |  | $ | 161 |  |  | $ | — |  |  | A
Summary of fair value defined benefit plan assets measured at recurring and non-recurring basis | The following tables classify the Company’s defined benefit plan assets measured at fair value on a recurring basis:
|  |  | Basis of fair value measurements
(in millions) | Balance at December 31, 2021 |  | Quoted prices in active markets for identical items (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3) |  | Valuation technique |  | Assets measured at NAV 3
U.S. Plans: |  |  |  |  |  |  |  |  |  |  |
Fixed income securities | $ | 129 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — |  | $ | 129 |
Equity securities | 28 |  |  | — |  |  | — |  |  | — |  |  | — |  | 28 |
Alternative credit fund | 19 |  |  | — |  |  | — |  |  | — |  |  | — |  | 19 |
Cash | 1 |  |  | 1 |  |  | — |  |  | — |  |  | A |  | — |
| $ | 177 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 176 |
Non-U.S. Plans: |  |  |  |  |  |  |  |  |  |  |
Fixed income securities | $ | 710 |  |  | $ | 116 |  |  | $ | — |  |  | $ | — |  |  | A |  | $ | 594 |
Equity securities | 412 |  |  | 363 |  |  | — |  |  | — |  |  | A |  | 49 |
Cash 1 | 338 |  |  | 338 |  |  | — |  |  | — |  |  | A |  | — |
Insurance contract 2 | 108 |  |  | — |  |  | — |  |  | 108 |  |  | C |  | — |
Real estate and other | 481 |  |  | 124 |  |  | 18 |  |  | 127 |  |  | A,C |  | 212 |
| $ | 2,049 |  |  | $ | 941 |  |  | $ | 18 |  |  | $ | 235 |  |  |  |  | $ | 855 |
|  |  | Basis of fair value measurements
(in millions) | Balance at December 31, 2020 |  | Quoted prices in active markets for identical items (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3) |  | Valuation technique |  | Assets measured at NAV 3
U.S. Plans: |  |  |  |  |  |  |  |  |  |  |
Fixed income securities | $ | 81 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — |  | $ | 81 |
Equity securities | 64 |  |  | — |  |  | — |  |  | — |  |  | — |  | 64 |
Alternative credit fund | 22 |  |  | — |  |  | — |  |  | — |  |  | — |  | 22 |
Cash | 20 |  |  | 20 |  |  | — |  |  | — |  |  | A |  | — |
| $ | 187 |  |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 167 |
Non-U.S. Plans: |  |  |  |  |  |  |  |  |  |  |
Fixed income securities | $ | 1,123 |  |  | $ | 51 |  |  | $ | — |  |  | $ | — |  |  | A |  | $ | 1,072 |
Equity securities | 283 |  |  | — |  |  | — |  |  | — |  |  | — |  | 283 |
Cash | 130 |  |  | 130 |  |  | — |  |  | — |  |  | A |  | — |
Insurance contract 2 | 113 |  |  | — |  |  | — |  |  | 113 |  |  | C |  | — |
Real estate and other | 392 |  |  | — |  |  | — |  |  | 86 |  |  | C |  | 306 |
| $ | 2,041 |  |  | $ | 181 |  |  | $ | — |  |  | $ | 199 |  |  |  |  | $ | 1,661 |
_____________________________ 1 As of December 31, 2021, £122 million in the Company’s non-U.S. plans was deemed cash in-transit and classified as a Level 1 investment. 2 A BorgWarner defined benefit plan in the United Kingdom owns an insurance contract that guarantees payment of specified pension liabilities. The Company measures the fair value of the insurance asset by projecting expected future cash flows from the contract and discounting them to present value based on current market rates, including an assessment for non-performance risk of the insurance company. The assumptions used to project expected future cash flows are based on actuarial estimates and are unobservable; therefore, the contract is categorized within Level 3 of the hierarchy. 3 Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These amounts represent investments in commingled and managed funds that have underlying assets in fixed income securities, equity securities, and other assets.
Schedule of fair value, liabilities measured on recurring basis, unobservable input reconciliation | The reconciliation of Level 3 defined benefit plans assets was as follows:
| Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions) | Insurance contract |  | Real estate trust fund |  | Hedge funds
Balance at January 1, 2020 | $ | 110 |  |  | $ | — |  |  | $ | — |
Delphi Technologies acquisition | — |  |  | 82 |  |  | 103 |
Purchases, sales and settlements | — |  |  | — |  |  | (114) |
Realized gains | — |  |  | — |  |  | 3 |
Benefits paid | (6) |  |  | — |  |  | — |
Unrealized gains (losses) on assets still held at the reporting date | 6 |  |  | (2) |  |  | — |
Translation adjustment | 3 |  |  | 6 |  |  | 8 |
Balance at December 31, 2020 | $ | 113 |  |  | $ | 86 |  |  | $ | — |
Purchases, sales and settlements | — |  |  | 36 |  |  | — |
Realized gains | — |  |  | — |  |  | — |
Benefits paid | (4) |  |  | — |  |  | — |
Unrealized gains (losses) on assets still held at the reporting date | 1 |  |  | 7 |  |  | — |
Translation adjustment | (2) |  |  | (2) |  |  | — |
Balance at December 31, 2021 | $ | 108 |  |  | $ | 127 |  |  | $ | — |

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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e2439-114920 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e2410-114920 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e2417-114920 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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