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REPORTABLE SEGMENTS AND RELATED INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company’s business is comprised of two 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.
•Fuel Systems. This segment provides advanced fuel injection systems, fuel delivery modules, canisters, sensors, electronic control modules and associated software. Our highly engineered fuel injection systems portfolio includes pumps, injectors, fuel rail assemblies, engine control modules, and complete systems, including software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications.
•Aftermarket. Through this segment, the Company sells products to independent aftermarket customers and OES customers. Its product portfolio includes a wide range of products as well as maintenance, test equipment and vehicle diagnostics solutions. The Aftermarket segment also includes sales of starters and alternators to OEMs.
Segment Adjusted Operating Income (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, transaction-related costs, impairment charges and other items not reflective of ongoing operating income or loss, and acquisition-related intangibles amortization expense because it pertains to non-cash expenses that the Company does not use to evaluate core operating performance. Management believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments. Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments.
The Company’s chief operating decision maker (CODM) is the chief executive officer.
The CODM uses Segment AOI for the financial planning and review process. The CODM considers
actual-to-forecast and actual-to-actual variances on a quarterly basis for Segment AOI when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Segment AOI for evaluating pricing strategy and to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
The following tables show segment revenues and significant expenses for the Company’s reportable segments:

Three Months Ended June 30, 2025
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$537 $353 $— $890 
Inter-segment eliminations$55 $— $(55)$— 
Net Sales$592 $353 $(55)$890 
Less:
Cost of sales487 261 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
17 32 
Net R&D costs27 3 
Other segment items2
(1)— 
Segment AOI$62 $57 
Three Months Ended June 30, 2024
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$518 $350 $— $868 
Inter-segment eliminations$69 $5 $(74)$— 
Net Sales$587 $355 $(74)$868 
Less:
Cost of sales489 264 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
18 35 
Net R&D costs28 2 
Other segment items2
— 1 
Segment AOI$52 $53 
Six Months Ended June 30, 2025
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$1,010 $676 $— $1,686 
Inter-segment eliminations$110 $— $(110)$— 
Net Sales$1,120 $676 $(110)$1,686 
Less:
Cost of sales931 496 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
32 63 
Net R&D costs52 6 
Other segment items2
(2)2 
Segment AOI$107 $109 
Six Months Ended June 30, 2024
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$1,045 $686 $1,731 
Inter-segment eliminations$118 $7 $(125)$— 
Net Sales$1,163 $693 $(125)$1,731 
Less:
Cost of sales971 504 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
34 69 
Net R&D costs52 5 
Other segment items2
(1)2 
Segment AOI$107 $113 
____________
1 Excludes acquisition-related intangible amortization.

2 Other segment items include inter-segment fees and other income.
The following table shows a reconciliation of Segment AOI to Earnings before income taxes for the Company’s reportable segments:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Fuel Systems$62 $52 $107 $107 
Aftermarket57 53 109 113 
Segment AOI119 105 216 220 
Corporate, including stock-based compensation25 21 49 39 
Amortization of acquisition-related intangibles7 7 14 14 
Transaction-related (benefits) costs(4)3 (5)20 
Restructuring expense2 3 7 5 
Equity in affiliates’ earnings, net of tax(4)(2)(8)(5)
Interest income(4)(4)(8)(8)
Interest expense21 39 40 61 
Other postretirement expense, net1 1 2 1 
Earnings before income taxes$75 $37 $125 $93 
Segment Information
Segment information as of June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and 2024 is presented in the tables below:
Assets
(in millions)June 30, 2025December 31, 2024
Fuel Systems$2,060 $1,902 
Aftermarket1,421 1,332 
Total3,481 3,234 
Corporate1
413 534 
Consolidated$3,894 $3,768 
_______________
1 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
Depreciation and amortizationThree Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Fuel Systems$32 $34 $62 $68 
Aftermarket7 6 13 12 
Total39 40 75 80 
Corporate— — 1 1 
Consolidated$39 $40 $76 $81 
Long-lived asset expenditures1
Six Months Ended June 30,
(in millions)20252024
Fuel Systems$62 $52 
Aftermarket5 6 
Total67 58 
Corporate2 2 
Consolidated$69 $60 
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.