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REPORTABLE SEGMENTS | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS 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 the second quarter of 2024, the Company announced a new business unit and management structure designed to further enhance the execution of the Company’s Charging Forward strategy effective July 1, 2024. As of June 30, 2024, management continued to assess the performance of reportable segments using the structure that was in place at December 31, 2023. Beginning with the third quarter of 2024, the Company will assess performance using the new structure and expects to report its financial results in four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems and Battery & Charging Systems. 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 for the Company’s reportable segments 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 June 30, 2024 |  | Six Months Ended June 30, 2024
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Air Management | $ | 1,952 |  |  | $ | 22 |  |  | $ | 1,974 |  |  | $ | 3,960 |  |  | $ | 44 |  |  | $ | 4,004 |
Drivetrain & Battery Systems | 1,196 |  |  | — |  |  | 1,196 |  |  | 2,353 |  |  | 2 |  |  | 2,355 |
ePropulsion | 455 |  |  | 9 |  |  | 464 |  |  | 885 |  |  | 15 |  |  | 900 |
Inter-segment eliminations | — |  |  | (31) |  |  | (31) |  |  | — |  |  | (61) |  |  | (61) |
Net sales | $ | 3,603 |  |  | $ | — |  |  | $ | 3,603 |  |  | $ | 7,198 |  |  | $ | — |  |  | $ | 7,198 |
| Three Months Ended June 30, 2023 |  | Six Months Ended June 30, 2023
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Air Management | $ | 2,006 |  |  | $ | 21 |  |  | $ | 2,027 |  |  | $ | 3,966 |  |  | $ | 40 |  |  | $ | 4,006 |
Drivetrain & Battery Systems | 1,117 |  |  | — |  |  | 1,117 |  |  | 2,072 |  |  | 1 |  |  | 2,073 |
ePropulsion | 548 |  |  | 18 |  |  | 566 |  |  | 1,016 |  |  | 37 |  |  | 1,053 |
Inter-segment eliminations | — |  |  | (39) |  |  | (39) |  |  | — |  |  | (78) |  |  | (78) |
Net sales | $ | 3,671 |  |  | $ | — |  |  | $ | 3,671 |  |  | $ | 7,054 |  |  | $ | — |  |  | $ | 7,054 |
Segment Adjusted Operating Income (Loss)
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Air Management | $ | 304 |  |  | $ | 305 |  |  | $ | 612 |  |  | $ | 590 |
Drivetrain & Battery Systems | 176 |  |  | 142 |  |  | 334 |  |  | 253 |
ePropulsion | (49) |  |  | (19) |  |  | (111) |  |  | (54) |
Segment Adjusted Operating Income | 431 |  |  | 428 |  |  | 835 |  |  | 789 |
Corporate, including stock-based compensation | 55 |  |  | 61 |  |  | 120 |  |  | 122 |
Restructuring expense (Note 5) | 25 |  |  | 9 |  |  | 44 |  |  | 12 |
Intangible asset amortization expense | 17 |  |  | 17 |  |  | 34 |  |  | 34 |
Commercial contract settlement | 15 |  |  | — |  |  | 15 |  |  | — |
Adjustments associated with Spin-Off related balances | 11 |  |  | — |  |  | 11 |  |  | — |
Accelerated depreciation | 8 |  |  | — |  |  | 8 |  |  | 3 |
Merger and acquisition expense | — |  |  | 8 |  |  | 5 |  |  | 16 |
Gain on sale of businesses | — |  |  | (5) |  |  | (3) |  |  | (5) |
Service and lease agreement termination | — |  |  | 9 |  |  | — |  |  | 9 |
Gain on sale of assets | — |  |  | (6) |  |  | — |  |  | (6) |
Other non-comparable items | 3 |  |  | 2 |  |  | 9 |  |  | (3) |
Equity in affiliates’ earnings, net of tax | (12) |  |  | (12) |  |  | (17) |  |  | (13) |
Unrealized loss on equity and debt securities | — |  |  | 54 |  |  | 2 |  |  | 69 |
Interest expense, net | 8 |  |  | 12 |  |  | 13 |  |  | 22 |
Other postretirement expense | 3 |  |  | 3 |  |  | 6 |  |  | 5 |
Earnings from continuing operations before income taxes and noncontrolling interest | $ | 298 |  |  | $ | 276 |  |  | $ | 588 |  |  | $ | 524 |

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- Definition The entire disclosure for reporting segments including data and tables. 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