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REPORTABLE SEGMENTS AND RELATED INFORMATION | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
REPORTABLE SEGMENTS AND RELATED INFORMATION | REPORTABLE SEGMENTS AND RELATED INFORMATION The Company’s business is aggregated into three reportable segments: Air Management, Drivetrain & Battery Systems, and ePropulsion. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems. In previous quarters, the Company presented two additional segments, Fuel Systems and Aftermarket, for a total of five reportable segments. As a result of the Spin-Off, Fuel Systems and Aftermarket are no longer reportable segments. In the first quarter of 2023, the Company elected to disaggregate the former e-Propulsion & Drivetrain reportable segment into two separate reportable segments of Drivetrain & Battery Systems and ePropulsion. The Drivetrain & Battery Systems segment’s technologies include battery management systems and control modules, software, friction and mechanical products for automatic transmissions and torque-management products. The ePropulsion segment primarily includes rotating electrical components, power electronics, electronic control units, inverters and electric motors. In the first quarter of 2022, the Company announced that the Americas starter and alternator business, previously reported in its former 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 former e-Propulsion & Drivetrain segment. The reportable segment disclosures have been updated accordingly, including recasting prior period information for the new reporting structures and to reflect the discontinued operations related to the Spin-Off. Segment Adjusted Operating Income (Loss) is the measure of segment income or loss used by the Company. Segment Adjusted Operating Income (Loss) 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 (Loss) is most reflective of the operational profitability or loss of our reportable segments. The following tables show segment information and Segment Adjusted Operating Income (Loss) for the Company’s reportable segments: Net Sales by Reportable Segment
| Three Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2023
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Air Management | $ | 1,922 |  |  | $ | 23 |  |  | $ | 1,945 |  |  | $ | 5,888 |  |  | $ | 63 |  |  | $ | 5,951 |
Drivetrain & Battery Systems | 1,144 |  |  | 1 |  |  | 1,145 |  |  | 3,216 |  |  | 2 |  |  | 3,218 |
ePropulsion | 556 |  |  | 15 |  |  | 571 |  |  | 1,572 |  |  | 52 |  |  | 1,624 |
Inter-segment eliminations | — |  |  | (39) |  |  | (39) |  |  | — |  |  | (117) |  |  | (117) |
Net sales | $ | 3,622 |  |  | $ | — |  |  | $ | 3,622 |  |  | $ | 10,676 |  |  | $ | — |  |  | $ | 10,676 |
| Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Air Management | $ | 1,827 |  |  | $ | 16 |  |  | $ | 1,843 |  |  | $ | 5,283 |  |  | $ | 45 |  |  | $ | 5,328 |
Drivetrain & Battery Systems | 954 |  |  | — |  |  | 954 |  |  | 2,745 |  |  | — |  |  | 2,745 |
ePropulsion | 445 |  |  | 44 |  |  | 489 |  |  | 1,290 |  |  | 71 |  |  | 1,361 |
Inter-segment eliminations | — |  |  | (60) |  |  | (60) |  |  | — |  |  | (116) |  |  | (116) |
Net sales | $ | 3,226 |  |  | $ | — |  |  | $ | 3,226 |  |  | $ | 9,318 |  |  | $ | — |  |  | $ | 9,318 |
Total Assets of Continuing Operations by Reportable Segment
(in millions) | September 30, 2023 |  | December 31, 2022
Air Management | $ | 5,559 |  |  | $ | 5,329 |
Drivetrain & Battery Systems | 3,954 |  |  | 3,963 |
ePropulsion | 2,847 |  |  | 2,349 |
Total | 12,360 |  |  | 11,641 |
Corporate | 1,744 |  |  | 1,691 |
Consolidated | $ | 14,104 |  |  | $ | 13,332 |
Segment Adjusted Operating Income (Loss)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Air Management | $ | 294 |  |  | $ | 291 |  |  | $ | 884 |  |  | $ | 793 |
Drivetrain & Battery Systems | 147 |  |  | 103 |  |  | 400 |  |  | 330 |
ePropulsion | (20) |  |  | (33) |  |  | (74) |  |  | (89) |
Segment Adjusted Operating Income | 421 |  |  | 361 |  |  | 1,210 |  |  | 1,034 |
Corporate, including stock-based compensation | 72 |  |  | 61 |  |  | 194 |  |  | 198 |
Restructuring expense (Note 5) | 56 |  |  | 5 |  |  | 68 |  |  | 42 |
Intangible asset amortization expense | 17 |  |  | 16 |  |  | 51 |  |  | 52 |
Merger and acquisition expense, net | 3 |  |  | 5 |  |  | 22 |  |  | 13 |
Service and lease agreement termination | — |  |  | — |  |  | 9 |  |  | — |
Loss (gain) on sale of business | — |  |  | 9 |  |  | (5) |  |  | (15) |
Gain on sale of assets | (7) |  |  | — |  |  | (13) |  |  | — |
Other non-comparable items | 8 |  |  | — |  |  | 5 |  |  | — |
Equity in affiliates’ earnings, net of tax | (10) |  |  | (5) |  |  | (23) |  |  | (21) |
Realized and unrealized loss (gain) on debt and equity securities | 60 |  |  | (1) |  |  | 129 |  |  | 27 |
Interest (income) expense, net | (19) |  |  | 12 |  |  | 3 |  |  | 41 |
Other postretirement expense (income) | 3 |  |  | (1) |  |  | 8 |  |  | (2) |
Earnings from continuing operations before income taxes and noncontrolling interest | 238 |  |  | 260 |  |  | 762 |  |  | 699 |
Provision for income taxes | 133 |  |  | 68 |  |  | 230 |  |  | 177 |
Net earnings from continuing operations | $ | 105 |  |  | $ | 192 |  |  | $ | 532 |  |  | $ | 522 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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