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ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended
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Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract] |
Schedule of Fair Values of Assets Acquired and Liabilities | The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of July 29, 2022, the acquisition date:
(in millions) | Initial Allocation |  | Measurement Period Adjustments |  | Revised Allocation
ASSETS |  |  |  |  |
Current assets | $ | 7 |  |  | $ | — |  |  | $ | 7 |
Goodwill | 104 |  |  | — |  |  | 104 |
Other intangible assets, net | 27 |  |  | — |  |  | 27 |
Other non-current assets | 4 |  |  | — |  |  | 4 |
Total assets acquired | 142 |  |  | — |  |  | 142 |
LIABILITIES |  |  |  |  |
Current liabilities | 3 |  |  | — |  |  | 3 |
Other non-current liabilities | 8 |  |  | — |  |  | 8 |
Total liabilities assumed | 11 |  |  | — |  |  | 11 |
Net assets acquired | $ | 131 |  |  | $ | — |  |  | $ | 131 |
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of March 31, 2022, the acquisition date:
(in millions) | Initial Allocation |  | Measurement Period Adjustments |  | Revised Allocation
ASSETS |  |  |  |  |
Current assets | $ | 8 |  |  | $ | (2) |  |  | $ | 6 |
Property, plant and equipment, net | 9 |  |  | 2 |  |  | 11 |
Goodwill | 132 |  |  | (20) |  |  | 112 |
Other intangible assets, net | 87 |  |  | — |  |  | 87 |
Total assets acquired | 236 |  |  | (20) |  |  | 216 |
LIABILITIES |  |  |  |  |
Current liabilities | 2 |  |  | — |  |  | 2 |
Other non-current liabilities | 22 |  |  | — |  |  | 22 |
Total liabilities assumed | 24 |  |  | — |  |  | 24 |
Net assets acquired | $ | 212 |  |  | $ | (20) |  |  | $ | 192 |
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments:
(in millions) | Initial Allocation |  | Measurement Period Adjustments |  | Final Allocation
ASSETS |  |  |  |  |
Cash and cash equivalents (including restricted cash of $16 million) | $ | 29 |  |  | $ | — |  |  | $ | 29 |
Receivables, net | 16 |  |  | — |  |  | 16 |
Inventories, net | 42 |  |  | (2) |  |  | 40 |
Prepayments and other current assets | 5 |  |  | — |  |  | 5 |
Property, plant and equipment, net | 106 |  |  | (3) |  |  | 103 |
Goodwill | 707 |  |  | (3) |  |  | 704 |
Other intangible assets, net | 130 |  |  | — |  |  | 130 |
Other non-current assets | — |  |  | 7 |  |  | 7 |
Total assets acquired | 1,035 |  |  | (1) |  |  | 1,034 |
LIABILITIES |  |  |  |  |
Notes payable and other short-term debt | 8 |  |  | — |  |  | 8 |
Accounts payable | 22 |  |  | — |  |  | 22 |
Other current liabilities | 13 |  |  | 6 |  |  | 19 |
Long-term debt | 69 |  |  | — |  |  | 69 |
Other non-current liabilities | 39 |  |  | (7) |  |  | 32 |
Total liabilities assumed | 151 |  |  | (1) |  |  | 150 |
Noncontrolling interests | 96 |  |  | — |  |  | 96 |
Net assets and noncontrolling interest acquired | $ | 788 |  |  | $ | — |  |  | $ | 788 |
Schedule of Other Intangible Assets Acquired | The following table summarizes the other intangible assets acquired:
(in millions) | Estimated Life |  | Estimated Fair Value
Developed technology | 13 years |  | $ | 22 |
Customer relationships | 8 years |  | 5 |
Total other intangible assets |  |  | $ | 27 |
The following table summarizes the other intangible assets acquired:
(in millions) | Estimated Life |  | Estimated Fair Value
Customer relationships | 12 years |  | $ | 62 |
Manufacturing processes (know-how) | 10 years |  | 25 |
Total other intangible assets |  |  | $ | 87 |
The following table summarizes the other intangible assets acquired:
(in millions) | Estimated Life |  | Estimated Fair Value
Amortized intangible assets: |  |  |
Developed technology | 5 years |  | $ | 70 |
Customer relationships | 11 years |  | 25 |
Total amortized intangible assets |  |  | 95 |
Unamortized trade names | Indefinite |  | 35 |
Total other intangible assets |  |  | $ | 130 |
Schedule of Purchase Price Consideration | The following table summarizes the purchase price for Delphi Technologies:
(in millions, except for share data) |
BorgWarner common stock issued for purchase of Delphi Technologies | 37,188,819
BorgWarner share price at October 1, 2020 | $ | 39.54 |
Fair value of stock consideration | $ | 1,470 |
Stock compensation consideration | 7
Total stock consideration | $ | 1,477 |
Cash consideration | 18 |
Repayment of Delphi Technologies’ debt | 896 |
Total consideration | $ | 2,391 |
Schedule of Pro Forma Financial Information | The following table summarizes the net sales and earnings related to Delphi Technologies’ operations that have been included in the Company’s Consolidated Statement of Operations for the year ended December 31, 2020, following the October 1, 2020 acquisition date:
(in millions) |
Net sales | $ | 1,120 |
Net earnings attributable to BorgWarner Inc. | $ | 30 |
The following table summarizes, on a pro forma basis, the combined results of operations of the Company and Delphi Technologies business as though the acquisition and the related financing had occurred as of January 1, 2019. The pro forma results are not necessarily indicative of either the actual consolidated results had the acquisition of Delphi Technologies occurred on January 1, 2019 or of future consolidated operating results. Actual operating results for the year ended December 31, 2022 and 2021 have been included in the table below for comparative purposes.
| Actual |  | Pro forma (unaudited)
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
Net sales | $ | 15,801 |  |  | $ | 14,838 |  |  | $ | 12,792 |
Net earnings attributable to BorgWarner Inc. | $ | 944 |  |  | $ | 537 |  |  | $ | 616 |

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