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REPORTING SEGMENTS AND RELATED INFORMATION | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
REPORTING SEGMENTS AND RELATED INFORMATION | REPORTING SEGMENTS AND RELATED INFORMATION The Company’s business is aggregated into four reporting segments: Air Management, e-Propulsion & Drivetrain, Fuel Systems (formerly known as Fuel Injection) and Aftermarket. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems. In the first quarter of 2022, the Company announced that the starter and alternator business, previously reported in its e-Propulsion & Drivetrain segment, would transition to the Aftermarket segment. The Company also announced that the canisters and fuel delivery modules business, previously reported in its Air Management segment, would transition to the Fuel Systems segment. Both of these transitions were completed during the second quarter of 2022. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure. Additionally, during the first quarter of 2022, the Company updated the definition of its measure of segment income or loss to exclude the impact of intangible asset amortization expense. The Company believes this change improves comparability of ongoing operations given the increasing operating margin impact of intangible asset amortization arising from the Company’s merger and acquisition activity. The prior period information disclosed below has been recast to reflect this change. Further, the Company renamed its measure of segment income or loss from Segment Adjusted EBIT to Segment Adjusted Operating Income. Segment Adjusted Operating Income is comprised of operating income adjusted for restructuring, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss. Segment Adjusted Operating Income is the measure of segment income or loss used by the Company. The Company believes Segment Adjusted Operating Income is most reflective of the operational profitability or loss of our reporting segments. The following tables show segment information and Segment Adjusted Operating Income for the Company’s reporting segments: Net Sales by Reporting Segment
| Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Air Management | $ | 1,880 |  |  | $ | 28 |  |  | $ | 1,908 |  |  | $ | 5,434 |  |  | $ | 76 |  |  | $ | 5,510 |
e-Propulsion & Drivetrain | 1,327 |  |  | 44 |  |  | 1,371 |  |  | 3,776 |  |  | 141 |  |  | 3,917 |
Fuel Systems | 528 |  |  | 72 |  |  | 600 |  |  | 1,531 |  |  | 176 |  |  | 1,707 |
Aftermarket | 325 |  |  | 2 |  |  | 327 |  |  | 952 |  |  | 8 |  |  | 960 |
Inter-segment eliminations | — |  |  | (146) |  |  | (146) |  |  | — |  |  | (401) |  |  | (401) |
Net sales | $ | 4,060 |  |  | $ | — |  |  | $ | 4,060 |  |  | $ | 11,693 |  |  | $ | — |  |  | $ | 11,693 |
| Three Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2021
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Air Management | $ | 1,551 |  |  | $ | 25 |  |  | $ | 1,576 |  |  | $ | 5,145 |  |  | $ | 78 |  |  | $ | 5,223 |
e-Propulsion & Drivetrain | 1,095 |  |  | 39 |  |  | 1,134 |  |  | 3,628 |  |  | 128 |  |  | 3,756 |
Fuel Systems | 456 |  |  | 59 |  |  | 515 |  |  | 1,498 |  |  | 190 |  |  | 1,688 |
Aftermarket | 314 |  |  | 2 |  |  | 316 |  |  | 912 |  |  | 8 |  |  | 920 |
Inter-segment eliminations | — |  |  | (125) |  |  | (125) |  |  | — |  |  | (404) |  |  | (404) |
Net sales | $ | 3,416 |  |  | $ | — |  |  | $ | 3,416 |  |  | $ | 11,183 |  |  | $ | — |  |  | $ | 11,183 |
Total Assets by Reporting Segment
(in millions) | September 30, 2022 |  | December 31, 2021
Air Management | $ | 6,216 |  |  | $ | 6,229 |
e-Propulsion & Drivetrain | 5,225 |  |  | 5,163 |
Fuel Systems | 2,059 |  |  | 2,282 |
Aftermarket | 1,276 |  |  | 1,179 |
Total | 14,776 |  |  | 14,853 |
Corporate | 1,301 |  |  | 1,722 |
Consolidated | $ | 16,077 |  |  | $ | 16,575 |
Segment Adjusted Operating Income
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Air Management | $ | 277 |  |  | $ | 214 |  |  | $ | 755 |  |  | $ | 791 |
e-Propulsion & Drivetrain | 86 |  |  | 83 |  |  | 270 |  |  | 349 |
Fuel Systems | 83 |  |  | 50 |  |  | 193 |  |  | 159 |
Aftermarket | 49 |  |  | 43 |  |  | 139 |  |  | 123 |
Segment Adjusted Operating Income | 495 |  |  | 390 |  |  | 1,357 |  |  | 1,422 |
Corporate, including stock-based compensation | 57 |  |  | 54 |  |  | 182 |  |  | 201 |
Intangible asset amortization expense | 24 |  |  | 25 |  |  | 74 |  |  | 65 |
Restructuring expense (Note 5) | 8 |  |  | 51 |  |  | 50 |  |  | 143 |
Merger, acquisition and divestiture expense, net | 8 |  |  | 8 |  |  | 40 |  |  | 36 |
Other non-comparable items | — |  |  | (1) |  |  | 13 |  |  | (3) |
Loss (gain) on sale of business | 9 |  |  | — |  |  | (15) |  |  | 7 |
Equity in affiliates’ earnings, net of tax | (10) |  |  | (12) |  |  | (29) |  |  | (40) |
Unrealized (gain) loss on equity securities | (1) |  |  | 61 |  |  | 27 |  |  | 337 |
Interest expense, net | 12 |  |  | 18 |  |  | 42 |  |  | 75 |
Other postretirement income | (8) |  |  | (10) |  |  | (26) |  |  | (33) |
Earnings before income taxes and noncontrolling interest | 396 |  |  | 196 |  |  | 999 |  |  | 634 |
Provision for income taxes | 104 |  |  | 79 |  |  | 252 |  |  | 149 |
Net earnings | 292 |  |  | 117 |  |  | $ | 747 |  |  | $ | 485 |
Net earnings attributable to noncontrolling interest, net of tax | 19 |  |  | 21 |  |  | 58 |  |  | 77 |
Net earnings attributable to BorgWarner Inc. | $ | 273 |  |  | $ | 96 |  |  | $ | 689 |  |  | $ | 408 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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