XML 47 R33.htm IDEA: XBRL DOCUMENT
v3.22.4

REPORTING SEGMENTS AND RELATED INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2022
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. 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 in 2022 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. Additionally, in the fourth quarter of 2022, the Company moved its battery systems business, previously reported in its Air Management segment, to the e-Propulsion & Drivetrain segment. Related to these transitions, the Company also revised the allocation of Corporate assets to various reporting segments in 2022. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure. •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, cabin heaters, battery heaters, battery charging and direct current charging stations. •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, electric drive motors, battery systems, battery packs, control modules, software, friction and mechanical products for automatic transmissions and torque-management products. •Fuel Systems (formerly known as Fuel Injection). This segment includes gasoline and diesel fuel injection components and systems. The fuel injection systems portfolio includes pumps, injectors, evaporative canisters, fuel delivery modules, fuel rails and fuel rail assemblies, engine control units, and complete systems including associated software and calibration services, that deliver greater efficiency and improve fuel economy for traditional and hybrid vehicles. •Aftermarket. Through this segment, the Company sells products and services to independent aftermarket customers and original equipment service customers with both new and remanufactured products. The aftermarket product portfolio includes a wide range of solutions covering the fuel injection, electronics and engine management, starters and alternators, maintenance, test equipment and vehicle diagnostics categories. 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 the measure of segment income or loss used by the Company. 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. The Company believes Segment Adjusted Operating Income is most reflective of the operational profitability or loss of its reporting segments. The following tables show segment information and Segment Adjusted Operating Income for the Company’s reporting segments:
2022 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 7,034 |  |  | $ | 95 |  |  | $ | 7,129 |  |  | $ | 5,376 |  |  | $ | 245 |  |  | $ | 192 |
e-Propulsion & Drivetrain | 5,440 |  |  | 185 |  |  | 5,625 |  |  | 6,416 |  |  | 278 |  |  | 415 |
Fuel Systems | 2,052 |  |  | 262 |  |  | 2,314 |  |  | 2,227 |  |  | 140 |  |  | 99 |
Aftermarket | 1,275 |  |  | 10 |  |  | 1,285 |  |  | 1,281 |  |  | 23 |  |  | 16 |
Inter-segment eliminations | — |  |  | (552) |  |  | (552) |  |  | — |  |  | — |  |  | — |
Total | 15,801 |  |  | — |  |  | 15,801 |  |  | 15,300 |  |  | 686 |  |  | 722 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 1,694 |  |  | 35 |  |  | 1 |
Consolidated | $ | 15,801 |  |  | $ | — |  |  | $ | 15,801 |  |  | $ | 16,994 |  |  | $ | 721 |  |  | $ | 723 |
2021 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 6,720 |  |  | $ | 100 |  |  | $ | 6,820 |  |  | $ | 5,274 |  |  | $ | 268 |  |  | $ | 239 |
e-Propulsion & Drivetrain | 4,918 |  |  | 168 |  |  | 5,086 |  |  | 6,122 |  |  | 278 |  |  | 262 |
Fuel Systems | 1,996 |  |  | 241 |  |  | 2,237 |  |  | 2,306 |  |  | 166 |  |  | 125 |
Aftermarket | 1,204 |  |  | 8 |  |  | 1,212 |  |  | 1,204 |  |  | 24 |  |  | 6 |
Inter-segment eliminations | — |  |  | (517) |  |  | (517) |  |  | — |  |  | — |  |  | — |
Total | 14,838 |  |  | — |  |  | 14,838 |  |  | 14,906 |  |  | 736 |  |  | 632 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 1,669 |  |  | 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 | $ | 5,496 |  |  | $ | 68 |  |  | $ | 5,564 |  |  | $ | 5,385 |  |  | $ | 235 |  |  | $ | 202 |
e-Propulsion & Drivetrain | 3,648 |  |  | 47 |  |  | 3,695 |  |  | 5,017 |  |  | 242 |  |  | 185 |
Fuel Systems | 537 |  |  | 56 |  |  | 593 |  |  | 2,375 |  |  | 38 |  |  | 29 |
Aftermarket | 484 |  |  | 4 |  |  | 488 |  |  | 1,177 |  |  | 21 |  |  | 9 |
Inter-segment eliminations | — |  |  | (175) |  |  | (175) |  |  | — |  |  | — |  |  | — |
Total | 10,165 |  |  | — |  |  | 10,165 |  |  | 13,954 |  |  | 536 |  |  | 425 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 2,075 |  |  | 32 |  |  | 16 |
Consolidated | $ | 10,165 |  |  | $ | — |  |  | $ | 10,165 |  |  | $ | 16,029 |  |  | $ | 568 |  |  | $ | 441 |
_______________
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.
Segment Adjusted Operating Income
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
Air Management | $ | 1,068 |  |  | $ | 1,064 |  |  | $ | 762 |
e-Propulsion & Drivetrain | 379 |  |  | 458 |  |  | 368 |
Fuel Systems | 249 |  |  | 235 |  |  | 49 |
Aftermarket | 196 |  |  | 164 |  |  | 54 |
Segment Adjusted Operating Income | 1,892 |  |  | 1,921 |  |  | 1,233 |
Corporate, including stock-based compensation | 289 |  |  | 302 |  |  | 192 |
Intangible asset amortization expense | 97 |  |  | 88 |  |  | 89 |
Restructuring expense | 59 |  |  | 163 |  |  | 203 |
Merger, acquisition and divestiture expense, net | 40 |  |  | 50 |  |  | 96 |
Asset impairments and lease modifications | 30 |  |  | 17 |  |  | 17 |
(Gain) loss on sales of businesses | (13) |  |  | 29 |  |  | — |
Other non-comparable items | 16 |  |  | (3) |  |  | (9) |
Customer warranty settlement (Note 21) | — |  |  | 124 |  |  | — |
Amortization of inventory fair value adjustment | — |  |  | — |  |  | 27 |
Equity in affiliates' earnings, net of tax | (38) |  |  | (48) |  |  | (18) |
Unrealized loss (gain) on debt and equity securities | 73 |  |  | 362 |  |  | (382) |
Interest expense, net | 52 |  |  | 93 |  |  | 61 |
Other postretirement income | (31) |  |  | (45) |  |  | (7) |
Earnings before income taxes and noncontrolling interest | 1,318 |  |  | 789 |  |  | 964 |
Provision for income taxes | 292 |  |  | 150 |  |  | 397 |
Net earnings | 1,026 |  |  | 639 |  |  | 567 |
Net earnings attributable to the noncontrolling interest, net of tax | 82 |  |  | 102 |  |  | 67 |
Net earnings attributable to BorgWarner Inc. | $ | 944 |  |  | $ | 537 |  |  | $ | 500 |
Geographic Information During the year ended December 31, 2022, approximately 81% of the Company’s consolidated net sales were outside the 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, 2022. 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) | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
United States | $ | 3,054 |  |  | $ | 2,490 |  |  | $ | 2,023 |  |  | $ | 635 |  |  | $ | 625 |  |  | $ | 937 |
Europe: |  |  |  |  |  |  |  |  |  |  |
Germany | 1,439 |  |  | 1,342 |  |  | 1,175 |  |  | 355 |  |  | 405 |  |  | 338 |
Poland | 1,086 |  |  | 1,121 |  |  | 696 |  |  | 328 |  |  | 324 |  |  | 352 |
United Kingdom | 837 |  |  | 821 |  |  | 276 |  |  | 195 |  |  | 215 |  |  | 229 |
Other Europe | 1,992 |  |  | 1,921 |  |  | 1,412 |  |  | 709 |  |  | 713 |  |  | 804 |
Total Europe | 5,354 |  |  | 5,205 |  |  | 3,559 |  |  | 1,587 |  |  | 1,657 |  |  | 1,723 |
China | 3,383 |  |  | 3,518 |  |  | 2,269 |  |  | 1,045 |  |  | 1,042 |  |  | 1,055 |
Mexico | 1,987 |  |  | 1,736 |  |  | 1,035 |  |  | 653 |  |  | 623 |  |  | 367 |
South Korea | 1,046 |  |  | 1,096 |  |  | 814 |  |  | 220 |  |  | 256 |  |  | 301 |
Other foreign | 977 |  |  | 793 |  |  | 465 |  |  | 225 |  |  | 192 |  |  | 208 |
Total | $ | 15,801 |  |  | $ | 14,838 |  |  | $ | 10,165 |  |  | $ | 4,365 |  |  | $ | 4,395 |  |  | $ | 4,591 |
Sales to Major Customers Consolidated net sales to Ford (including its subsidiaries) were approximately 13%, 10% and 13% for the years ended December 31, 2022, 2021 and 2020, respectively. Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 8%, 9% and 11% for the years ended December 31, 2022, 2021 and 2020. 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 20%, 19% and 24% of consolidated net sales for the years ended December 31, 2022, 2021 and 2020, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration