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REPORTING SEGMENTS AND RELATED INFORMATION | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
REPORTING SEGMENTS AND RELATED INFORMATION | REPORTING SEGMENTS AND RELATED INFORMATION The Company’s business is aggregated into four reporting segments which are further described below. These segments are strategic business groups, which are managed separately as each represents a specific grouping of related automotive components and systems. •Air Management. This segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance. The Air Management segment’s technologies include turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, canisters, cabin heaters, battery modules and systems, battery packs, battery heaters and battery charging. •e-Propulsion & Drivetrain. This segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance in combustion, hybrid and electric vehicles. The e-Propulsion & Drivetrain segment’s technologies include rotating electrical components, power electronics, control modules, software, friction and mechanical products for automatic transmissions and torque-management products. •Fuel Injection. This segment includes gasoline and diesel fuel injection components and systems. The gasoline fuel injection portfolio includes a full suite of fuel injection technologies – including pumps, injectors, fuel rail assemblies and complete systems – that deliver greater efficiency for traditional and hybrid vehicles with gasoline combustion engines. •Aftermarket. Through this segment, the Company sells products and services to independent aftermarket customers and original equipment service customers. The aftermarket product portfolio includes a wide range of solutions covering the fuel injection, electronics and engine management, maintenance, and test equipment and vehicle diagnostics categories. Segment Adjusted EBIT is the measure of segment income or loss used by the Company. Segment Adjusted EBIT is comprised of earnings before interest, income taxes and noncontrolling interest (“EBIT”) adjusted for restructuring, merger, acquisition and divestiture expense, impairment charges, affiliates’ earnings and other items not reflective of on-going operating income or loss. The Company believes Segment Adjusted EBIT is most reflective of the operational profitability or loss of its reporting segments. The following tables show segment information and Segment Adjusted EBIT for the Company’s reporting segments:
2021 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 7,146 |  |  | $ | 152 |  |  | $ | 7,298 |  |  | $ | 6,729 |  |  | $ | 305 |  |  | $ | 281 |
e-Propulsion & Drivetrain | 5,209 |  |  | 169 |  |  | 5,378 |  |  | 5,527 |  |  | 284 |  |  | 237 |
Fuel Injection | 1,637 |  |  | 189 |  |  | 1,826 |  |  | 1,782 |  |  | 142 |  |  | 110 |
Aftermarket | 846 |  |  | 7 |  |  | 853 |  |  | 815 |  |  | 5 |  |  | 4 |
Inter-segment eliminations | — |  |  | (517) |  |  | (517) |  |  | — |  |  | — |  |  | — |
Total | 14,838 |  |  | — |  |  | 14,838 |  |  | 14,853 |  |  | 736 |  |  | 632 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 1,722 |  |  | 36 |  |  | 34 |
Consolidated | $ | 14,838 |  |  | $ | — |  |  | $ | 14,838 |  |  | $ | 16,575 |  |  | $ | 772 |  |  | $ | 666 |
2020 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization 3 |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 5,598 |  |  | $ | 80 |  |  | $ | 5,678 |  |  | $ | 5,714 |  |  | $ | 241 |  |  | $ | 210 |
e-Propulsion & Drivetrain | 3,940 |  |  | 49 |  |  | 3,989 |  |  | 5,412 |  |  | 261 |  |  | 192 |
Fuel Injection | 435 |  |  | 44 |  |  | 479 |  |  | 1,964 |  |  | 32 |  |  | 21 |
Aftermarket | 192 |  |  | 2 |  |  | 194 |  |  | 806 |  |  | 2 |  |  | 2 |
Inter-segment eliminations | — |  |  | (175) |  |  | (175) |  |  | — |  |  | — |  |  | — |
Total | 10,165 |  |  | — |  |  | 10,165 |  |  | 13,896 |  |  | 536 |  |  | 425 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 2,133 |  |  | 32 |  |  | 16 |
Consolidated | $ | 10,165 |  |  | $ | — |  |  | $ | 10,165 |  |  | $ | 16,029 |  |  | $ | 568 |  |  | $ | 441 |
2019 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 6,153 |  |  | $ | 61 |  |  | $ | 6,214 |  |  | $ | 4,536 |  |  | $ | 227 |  |  | $ | 219 |
e-Propulsion & Drivetrain | 4,015 |  |  | — |  |  | 4,015 |  |  | 4,075 |  |  | 183 |  |  | 254 |
Inter-segment eliminations | — |  |  | (61) |  |  | (61) |  |  | — |  |  | — |  |  | — |
Total | 10,168 |  |  | — |  |  | 10,168 |  |  | 8,611 |  |  | 410 |  |  | 473 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 1,091 |  |  | 29 |  |  | 8 |
Consolidated | $ | 10,168 |  |  | $ | — |  |  | $ | 10,168 |  |  | $ | 9,702 |  |  | $ | 439 |  |  | $ | 481 |
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
3 In 2020, e-Propulsion & Drivetrain includes $38 million related to accelerated amortization for certain intangibles, refer to Note 12, “Goodwill and Other Intangibles,” for more information.
Adjusted earnings before interest, income taxes and noncontrolling interest (“Segment Adjusted EBIT”)
| Year Ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Air Management | $ | 1,070 |  |  | $ | 762 |  |  | $ | 995 |
e-Propulsion & Drivetrain | 486 |  |  | 359 |  |  | 443 |
Fuel Injection | 170 |  |  | 39 |  |  | — |
Aftermarket | 107 |  |  | 22 |  |  | — |
Segment Adjusted EBIT | 1,833 |  |  | 1,182 |  |  | 1,438 |
Corporate, including stock-based compensation | 302 |  |  | 192 |  |  | 206 |
Restructuring expense | 163 |  |  | 203 |  |  | 72 |
Customer warranty settlement (Note 21) | 124 |  |  | — |  |  | — |
Merger, acquisition and divestiture expense | 50 |  |  | 96 |  |  | 11 |
Loss on sales of businesses | 29 |  |  | — |  |  | 7 |
Asset impairments and lease modifications | 17 |  |  | 17 |  |  | — |
Net gain on insurance recovery for property damage | (3) |  |  | (9) |  |  | — |
Intangible asset accelerated amortization (Note 12) | — |  |  | 38 |  |  | — |
Amortization of inventory fair value adjustment | — |  |  | 27 |  |  | — |
Gain on derecognition of subsidiary (Note 21) | — |  |  | — |  |  | (177) |
Unfavorable arbitration loss | — |  |  | — |  |  | 14 |
Officer stock awards modification | — |  |  | — |  |  | 2 |
Equity in affiliates' earnings, net of tax | (48) |  |  | (18) |  |  | (32) |
Unrealized loss (gain) on equity securities | 362 |  |  | (382) |  |  | — |
Interest expense, net | 93 |  |  | 61 |  |  | 43 |
Other postretirement (income) expense | (45) |  |  | (7) |  |  | 27 |
Earnings before income taxes and noncontrolling interest | 789 |  |  | 964 |  |  | 1,265 |
Provision for income taxes | 150 |  |  | 397 |  |  | 468 |
Net earnings | 639 |  |  | 567 |  |  | 797 |
Net earnings attributable to the noncontrolling interest, net of tax | 102 |  |  | 67 |  |  | 51 |
Net earnings attributable to BorgWarner Inc. | $ | 537 |  |  | $ | 500 |  |  | $ | 746 |
Geographic Information During the year ended December 31, 2021, approximately 83% of the Company’s consolidated net sales were outside the United States (“U.S.”), attributing sales to the location of production rather than the location of the customer. Outside the U.S., China, Mexico, Germany, Poland, South Korea and the United Kingdom exceeded 5% of consolidated net sales during the year ended December 31, 2021. The Company’s investments in equity securities are excluded from the definition of long-lived assets, as are goodwill and certain other non-current assets.
| Net sales |  | Long-lived assets
(in millions) | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
United States | $ | 2,490 |  |  | $ | 2,023 |  |  | $ | 2,335 |  |  | $ | 625 |  |  | $ | 937 |  |  | $ | 752 |
Europe: |  |  |  |  |  |  |  |  |  |  |
Germany | 1,342 |  |  | 1,175 |  |  | 1,507 |  |  | 405 |  |  | 338 |  |  | 328 |
Poland | 1,121 |  |  | 696 |  |  | 627 |  |  | 324 |  |  | 352 |  |  | 180 |
United Kingdom | 821 |  |  | 276 |  |  | 171 |  |  | 215 |  |  | 229 |  |  | 56 |
Hungary | 469 |  |  | 458 |  |  | 589 |  |  | 193 |  |  | 184 |  |  | 164 |
Other Europe | 1,452 |  |  | 954 |  |  | 916 |  |  | 520 |  |  | 620 |  |  | 229 |
Total Europe | 5,205 |  |  | 3,559 |  |  | 3,810 |  |  | 1,657 |  |  | 1,723 |  |  | 957 |
China | 3,518 |  |  | 2,269 |  |  | 1,711 |  |  | 1,042 |  |  | 1,055 |  |  | 605 |
Mexico | 1,736 |  |  | 1,035 |  |  | 1,040 |  |  | 623 |  |  | 367 |  |  | 247 |
South Korea | 1,096 |  |  | 814 |  |  | 786 |  |  | 256 |  |  | 301 |  |  | 221 |
Other foreign | 793 |  |  | 465 |  |  | 486 |  |  | 192 |  |  | 208 |  |  | 152 |
Total | $ | 14,838 |  |  | $ | 10,165 |  |  | $ | 10,168 |  |  | $ | 4,395 |  |  | $ | 4,591 |  |  | $ | 2,934 |
Sales to Major Customers Consolidated net sales to Ford (including its subsidiaries) were approximately 10%, 13% and 15% for the years ended December 31, 2021, 2020 and 2019, respectively. Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 9%, 11% and 11% for the years ended December 31, 2021, 2020 and 2019. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented. Sales by Product Line Sales of turbochargers for light vehicles represented approximately 19%, 24% and 28% of consolidated net sales for the years ended December 31, 2021, 2020 and 2019, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented. Subsequent Event In January 2022, the Company announced that the starter and alternator business currently reported in its e-Propulsion & Drivetrain segment will transition to the Aftermarket segment effective January 1, 2022.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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