v3.25.4

REPORTING SEGMENTS AND RELATED INFORMATION (Tables) | 12 Months Ended
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Dec. 31, 2025
Segment Reporting [Abstract] |
Schedule of Net Sales and Expenses by Reporting Segment | The following tables show net sales, segment expenses, Segment Adjusted Operating Income (Loss) and other segment information for the Company’s reportable segments. The segment expenses do not include non-comparable items that are excluded in the calculation of Segment Adjusted Operating Income (Loss): Net Sales and Expenses by Reportable Segment
| Year ended December 31, 2025
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 5,769 |  |  | $ | 5,635 |  |  | $ | 2,322 |  |  | $ | 590 |  |  | $ | — |  |  | $ | 14,316 |
Net sales - inter-segment | 3 |  |  | 19 |  |  | 25 |  |  | — |  |  | (47) |  |  | — |
Net sales | $ | 5,772 |  |  | $ | 5,654 |  |  | $ | 2,347 |  |  | $ | 590 |  |  | $ | (47) |  |  | $ | 14,316 |
Cost of sales | 4,602 |  |  | 4,430 |  |  | 1,995 |  |  | 555 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 178 |  |  | 132 |  |  | 354 |  |  | 37 |  |  |  |  |
Selling, general and administrative expenses - Other | 114 |  |  | 55 |  |  | 89 |  |  | 37 |  |  |  |  |
Other segment items 1 | (1) |  |  | (4) |  |  | (8) |  |  | — |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 879 |  |  | $ | 1,041 |  |  | $ | (83) |  |  | $ | (39) |  |  |  |  |
| Year ended December 31, 2024
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 5,885 |  |  | $ | 5,564 |  |  | $ | 1,908 |  |  | $ | 729 |  |  | $ | — |  |  | $ | 14,086 |
Net sales - inter-segment | 2 |  |  | 13 |  |  | 29 |  |  | — |  |  | (44) |  |  | — |
Net sales | $ | 5,887 |  |  | $ | 5,577 |  |  | $ | 1,937 |  |  | $ | 729 |  |  | $ | (44) |  |  | $ | 14,086 |
Cost of sales | 4,724 |  |  | 4,413 |  |  | 1,648 |  |  | 681 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 170 |  |  | 118 |  |  | 384 |  |  | 51 |  |  |  |  |
Selling, general and administrative expenses - Other | 114 |  |  | 38 |  |  | 60 |  |  | 47 |  |  |  |  |
Other segment items 1 | 2 |  |  | (2) |  |  | (11) |  |  | (3) |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 877 |  |  | $ | 1,010 |  |  | $ | (144) |  |  | $ | (47) |  |  |  |  |
| Year ended December 31, 2023
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 6,007 |  |  | $ | 5,543 |  |  | $ | 2,102 |  |  | $ | 546 |  |  | $ | — |  |  | $ | 14,198 |
Net sales - inter-segment | 5 |  |  | 6 |  |  | 64 |  |  | — |  |  | (75) |  |  | — |
Net sales | $ | 6,012 |  |  | $ | 5,549 |  |  | $ | 2,166 |  |  | $ | 546 |  |  | $ | (75) |  |  | $ | 14,198 |
Cost of sales | 4,865 |  |  | 4,413 |  |  | 1,826 |  |  | 581 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 175 |  |  | 122 |  |  | 362 |  |  | 44 |  |  |  |  |
Selling, general and administrative expenses - Other | 100 |  |  | 49 |  |  | 73 |  |  | 40 |  |  |  |  |
Other segment items 1 | (2) |  |  | 7 |  |  | (5) |  |  | (3) |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 874 |  |  | $ | 958 |  |  | $ | (90) |  |  | $ | (116) |  |  |  |  |
_______________
1 Other segment items include other income and expenses to derive Segment Adjusted Operating Income (Loss).
Schedule of Segment Reporting Information, by Segment | Segment Adjusted Operating Income (Loss)
| Year Ended December 31,
(in millions) | 2025 |  | 2024 |  | 2023
Turbos & Thermal Technologies | $ | 879 |  |  | $ | 877 |  |  | $ | 874 |
Drivetrain & Morse Systems | 1,041 |  |  | 1,010 |  |  | 958 |
PowerDrive Systems | (83) |  |  | (144) |  |  | (90) |
Battery & Charging Systems | (39) |  |  | (47) |  |  | (116) |
Segment Adjusted Operating Income | 1,798 |  |  | 1,696 |  |  | 1,626 |
Corporate, including stock-based compensation | 261 |  |  | 279 |  |  | 278 |
Impairment charges | 624 |  |  | 646 |  |  | 29 |
Restructuring expense (Note 4) | 101 |  |  | 74 |  |  | 79 |
Accelerated depreciation 1 | 90 |  |  | 50 |  |  | 4 |
Intangible asset amortization expense | 66 |  |  | 69 |  |  | 67 |
Legal settlement (Note 21) | 40 |  |  | — |  |  | — |
Costs to exit charging business (Note 2) | 32 |  |  | — |  |  | — |
Impairment of investment | 16 |  |  | — |  |  | — |
Chief Executive Officer ("CEO") transition compensation 2 | 11 |  |  | — |  |  | — |
Loss (gain) on sale of assets 2 | 9 |  |  | 2 |  |  | (13) |
Adjustments associated with Spin-Off related balances 2 | 7 |  |  | 17 |  |  | — |
Write-off customer incentive asset (Note 3) | 7 |  |  | — |  |  | — |
Merger and acquisition expense, net 2 | 5 |  |  | 2 |  |  | 23 |
Loss (gain) on sale of businesses 2 | 2 |  |  | 6 |  |  | (5) |
Change in accounting method | — |  |  | (29) |  |  | — |
Commercial contract settlement 2 | — |  |  | 15 |  |  | — |
Insurance recovery (Note 13) | (21) |  |  | — |  |  | — |
Other non-comparable items | 12 |  |  | 19 |  |  | 4 |
Equity in affiliates' earnings, net of tax | (35) |  |  | (27) |  |  | (30) |
Unrealized and realized (gain) loss on equity and debt securities | (3) |  |  | 1 |  |  | 174 |
Interest expense, net | 39 |  |  | 20 |  |  | 10 |
Other postretirement expense | 11 |  |  | 13 |  |  | 15 |
Earnings from continuing operations before income taxes and noncontrolling interest | $ | 524 |  |  | $ | 539 |  |  | $ | 991 |
_____________
1 Accelerated depreciation represents charges related to property, plant and equipment that were decommissioned or are in the process of being decommissioned.
2 Refer to Note 6, “Other Operating Expense (Income), Net,” to the Consolidated Financial Statements for more information.
Segment Information
|  | Depreciation and amortization |  | Long-lived asset expenditures 1 |
(in millions) |  | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023 |
Turbos & Thermal Technologies |  | $ | 171 |  |  | $ | 177 |  |  | $ | 170 |  |  | $ | 188 |  |  | $ | 170 |  |  | $ | 184 |  |
Drivetrain & Morse Systems |  | 214 |  |  | 246 |  |  | 215 |  |  | 101 |  |  | 115 |  |  | 134 |  |
PowerDrive Systems |  | 184 |  |  | 164 |  |  | 127 |  |  | 149 |  |  | 291 |  |  | 384 |  |
Battery & Charging Systems |  | 120 |  |  | 57 |  |  | 39 |  |  | 18 |  |  | 82 |  |  | 96 |  |
Total |  | 689 |  |  | 644 |  |  | 551 |  |  | 456 |  |  | 658 |  |  | 798 |  |
Corporate 2 |  | 30 |  |  | 29 |  |  | 31 |  |  | 13 |  |  | 13 |  |  | 34 |  |
Consolidated |  | $ | 719 |  |  | $ | 673 |  |  | $ | 582 |  |  | $ | 469 |  |  | $ | 671 |  |  | $ | 832 |  |
|  | Total assets |  |  |  |  |
|  | 2025 |  | 2024 |  | 2023 |  |  |  |  |  |  |
Turbos & Thermal Technologies |  | $ | 3,743 |  |  | $ | 3,693 |  |  | $ | 3,938 |  |  |  |  |  |  |  |
Drivetrain & Morse Systems |  | 3,795 |  |  | 3,872 |  |  | 4,262 |  |  |  |  |  |  |  |
PowerDrive Systems |  | 3,163 |  |  | 2,792 |  |  | 3,185 |  |  |  |  |  |  |  |
Battery & Charging Systems |  | 460 |  |  | 1,082 |  |  | 1,335 |  |  |  |  |  |  |  |
Total |  | 11,161 |  |  | 11,439 |  |  | 12,720 |  |  |  |  |  |  |  |
Corporate 2 |  | 2,608 |  |  | 2,554 |  |  | 1,733 |  |  |  |  |  |  |  |
Consolidated |  | $ | 13,769 |  |  | $ | 13,993 |  |  | $ | 14,453 |  |  |  |  |  |  |  |
_______________
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.
Schedule of Revenue from External Customers and Long-lived Assets, by Geographical Areas | The following table shows sales to customers and property, plant and equipment by country.
| Sales |  | Property, plant and equipment
(in millions) | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
United States | $ | 2,293 |  |  | $ | 2,240 |  |  | $ | 2,334 |  |  | $ | 677 |  |  | $ | 718 |  |  | $ | 778 |
Europe: |  |  |  |  |  |  |  |  |  |  |
Germany | 1,624 |  |  | 1,680 |  |  | 1,669 |  |  | 220 |  |  | 352 |  |  | 393 |
Poland | 1,245 |  |  | 1,160 |  |  | 1,121 |  |  | 393 |  |  | 356 |  |  | 342 |
Hungary | 771 |  |  | 820 |  |  | 904 |  |  | 166 |  |  | 154 |  |  | 167 |
Other Europe | 1,508 |  |  | 1,586 |  |  | 1,387 |  |  | 501 |  |  | 472 |  |  | 456 |
Total Europe | 5,148 |  |  | 5,246 |  |  | 5,081 |  |  | 1,280 |  |  | 1,334 |  |  | 1,358 |
China | 2,968 |  |  | 2,862 |  |  | 2,998 |  |  | 652 |  |  | 720 |  |  | 876 |
Mexico | 1,741 |  |  | 1,644 |  |  | 1,759 |  |  | 325 |  |  | 412 |  |  | 374 |
South Korea | 1,150 |  |  | 1,181 |  |  | 1,163 |  |  | 199 |  |  | 189 |  |  | 197 |
Other foreign | 1,016 |  |  | 913 |  |  | 863 |  |  | 197 |  |  | 202 |  |  | 200 |
Total | $ | 14,316 |  |  | $ | 14,086 |  |  | $ | 14,198 |  |  | $ | 3,330 |  |  | $ | 3,575 |  |  | $ | 3,783 |

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