XML 46 R33.htm IDEA: XBRL DOCUMENT
v3.24.0.1

REPORTING SEGMENTS AND RELATED INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting [Abstract] |
REPORTING SEGMENTS AND RELATED INFORMATION | REPORTABLE SEGMENTS AND RELATED INFORMATION The Company’s business is aggregated into three reportable 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 previous years, the Company presented its results under four reportable segments: Air Management, ePropulsion & Drivetrain, Fuel Systems and Aftermarket. In the first quarter of 2023, the Company elected to disaggregate Air Management and ePropulsion & Drivetrain segments into Air Management, Drivetrain & Battery Systems and ePropulsion and reported its results in a total of five reportable segments: Air Management, Drivetrain & Battery Systems, ePropulsion, Fuel Systems and Aftermarket. As a result of the Spin-Off, Fuel Systems and Aftermarket are no longer reportable segments. The reportable 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. •Drivetrain & Battery Systems. This segment’s technologies include battery modules and systems, control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (“RWD”) and all-wheel drive (“AWD”) transfer case systems and coupling systems. •ePropulsion. This segment’s products and technologies provide industry-leading performance and efficiency with quick-to-market solutions powering current and next-generation electric and hybrid vehicles. The ePropulsion segment’s technologies include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes (multiple combined power electronics components). Rotating electric machines are also part of the ePropulsion portfolio, including eMotors and generators as well as fully integrated drive modules consisting of inverter, eMotor and gear reducer. Additionally, the segment’s products include electronic controls such as engine control units, transmission control units, battery management systems, propulsion controllers and domain controllers. 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 its reportable segments. The following tables show segment information and Segment Adjusted Operating Income (Loss) for the Company’s reportable segments:
2023 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 7,750 |  |  | $ | 83 |  |  | $ | 7,833 |  |  | $ | 5,505 |  |  | $ | 252 |  |  | $ | 252 |
Drivetrain & Battery Systems | 4,346 |  |  | 2 |  |  | 4,348 |  |  | 4,023 |  |  | 172 |  |  | 162 |
ePropulsion | 2,102 |  |  | 64 |  |  | 2,166 |  |  | 3,185 |  |  | 127 |  |  | 384 |
Inter-segment eliminations | — |  |  | (149) |  |  | (149) |  |  | — |  |  | — |  |  | — |
Total | 14,198 |  |  | — |  |  | 14,198 |  |  | 12,713 |  |  | 551 |  |  | 798 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 1,740 |  |  | 31 |  |  | 34 |
Consolidated | $ | 14,198 |  |  | $ | — |  |  | $ | 14,198 |  |  | $ | 14,453 |  |  | $ | 582 |  |  | $ | 832 |
2022 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 7,076 |  |  | $ | 61 |  |  | $ | 7,137 |  |  | $ | 5,329 |  |  | $ | 243 |  |  | $ | 187 |
Drivetrain & Battery Systems | 3,753 |  |  | (18) |  |  | 3,735 |  |  | 3,963 |  |  | 166 |  |  | 166 |
ePropulsion | 1,806 |  |  | 100 |  |  | 1,906 |  |  | 2,349 |  |  | 111 |  |  | 257 |
Inter-segment eliminations | — |  |  | (143) |  |  | (143) |  |  | — |  |  | — |  |  | — |
Total | 12,635 |  |  | — |  |  | 12,635 |  |  | 11,641 |  |  | 520 |  |  | 610 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 1,691 |  |  | 32 |  |  | 12 |
Consolidated | $ | 12,635 |  |  | $ | — |  |  | $ | 12,635 |  |  | $ | 13,332 |  |  | $ | 552 |  |  | $ | 622 |
2021 Segment information |  |  |  |  |  |  |
| Net sales |  | Year-end assets |  | Depreciation/ amortization |  | Long-lived asset expenditures 1
(in millions) | Customers |  | Inter-segment |  | Net |  |  |
Air Management | $ | 6,761 |  |  | $ | 106 |  |  | $ | 6,867 |  |  | $ | 5,174 |  |  | $ | 281 |  |  | $ | 214 |
Drivetrain & Battery Systems | 3,659 |  |  | 1 |  |  | 3,660 |  |  | 4,229 |  |  | 160 |  |  | 150 |
ePropulsion | 1,383 |  |  | 44 |  |  | 1,427 |  |  | 1,828 |  |  | 102 |  |  | 113 |
Inter-segment eliminations | — |  |  | (151) |  |  | (151) |  |  | — |  |  | — |  |  | — |
Total | 11,803 |  |  | — |  |  | 11,803 |  |  | 11,231 |  |  | 543 |  |  | 477 |
Corporate 2 | — |  |  | — |  |  | — |  |  | 1,656 |  |  | 31 |  |  | 37 |
Consolidated | $ | 11,803 |  |  | $ | — |  |  | $ | 11,803 |  |  | $ | 12,887 |  |  | $ | 574 |  |  | $ | 514 |
_______________
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.
Segment Adjusted Operating Income (Loss)
| Year Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Air Management | $ | 1,171 |  |  | $ | 1,073 |  |  | $ | 1,037 |
Drivetrain & Battery Systems | 545 |  |  | 449 |  |  | 524 |
ePropulsion | (90) |  |  | (88) |  |  | (48) |
Segment Adjusted Operating Income | 1,626 |  |  | 1,434 |  |  | 1,513 |
Corporate, including stock-based compensation | 278 |  |  | 282 |  |  | 234 |
Intangible asset amortization expense | 67 |  |  | 69 |  |  | 59 |
Restructuring expense | 79 |  |  | 48 |  |  | 108 |
Merger and acquisition expense, net | 23 |  |  | 9 |  |  | 48 |
Asset impairments and lease modifications | 29 |  |  | 30 |  |  | — |
(Gain) loss on sale of business | (5) |  |  | (13) |  |  | 29 |
Gain on sale of assets | (13) |  |  | — |  |  | — |
Other non-comparable items | 8 |  |  | — |  |  | (3) |
Customer warranty settlement | — |  |  | — |  |  | 124 |
Equity in affiliates' earnings, net of tax | (30) |  |  | (28) |  |  | (42) |
Realized and unrealized loss on debt and equity securities | 174 |  |  | 73 |  |  | 362 |
Interest expense, net | 10 |  |  | 51 |  |  | 91 |
Other postretirement expense (income) | 15 |  |  | — |  |  | (7) |
Earnings from continuing operations before income taxes and noncontrolling interest | $ | 991 |  |  | $ | 913 |  |  | $ | 510 |
Geographic Information During the year ended December 31, 2023, approximately 84% 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, Hungary and South Korea exceeded 5% of consolidated net sales during the year ended December 31, 2023. 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) | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
United States | $ | 2,334 |  |  | $ | 2,143 |  |  | $ | 2,125 |  |  | $ | 778 |  |  | $ | 469 |  |  | $ | 489 |
Europe: |  |  |  |  |  |  |  |  |  |  |
Germany | 1,669 |  |  | 1,443 |  |  | 1,338 |  |  | 393 |  |  | 354 |  |  | 401 |
Poland | 1,121 |  |  | 937 |  |  | 961 |  |  | 342 |  |  | 277 |  |  | 276 |
Hungary | 904 |  |  | 636 |  |  | 469 |  |  | 167 |  |  | 170 |  |  | 193 |
Other Europe | 1,386 |  |  | 1,056 |  |  | 1,023 |  |  | 456 |  |  | 327 |  |  | 289 |
Total Europe | 5,080 |  |  | 4,072 |  |  | 3,791 |  |  | 1,358 |  |  | 1,128 |  |  | 1,159 |
China | 2,998 |  |  | 2,864 |  |  | 2,958 |  |  | 876 |  |  | 821 |  |  | 776 |
Mexico | 1,760 |  |  | 1,727 |  |  | 1,208 |  |  | 374 |  |  | 612 |  |  | 561 |
South Korea | 1,163 |  |  | 1,073 |  |  | 1,117 |  |  | 197 |  |  | 205 |  |  | 239 |
Other foreign | 863 |  |  | 756 |  |  | 604 |  |  | 200 |  |  | 191 |  |  | 164 |
Total | $ | 14,198 |  |  | $ | 12,635 |  |  | $ | 11,803 |  |  | $ | 3,783 |  |  | $ | 3,426 |  |  | $ | 3,388 |
Sales to Major Customers Consolidated net sales to Ford (including its subsidiaries) were approximately 14%, 15% and 13% for the years ended December 31, 2023, 2022 and 2021, respectively. Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 11%, 9% and 9% for the years ended December 31, 2023, 2022 and 2021. 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 21%, 26% and 24% of consolidated net sales for the years ended December 31, 2023, 2022 and 2021, 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 -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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration