v3.25.2
Segments and Concentrations
 6 Months Ended
Jun. 30, 2025
Risks and Uncertainties [Abstract]  
Segments and Concentrations
Note 21. Segments and Concentrations

The Company has identified our CODM as the Chief Executive Officer. The CODM reviews consolidated net income when assessing the Company's performance, allocating resources, and establishing management's compensation. In addition to consolidated net income, the CODM receives discrete information for net sales by product and by geographical location. Consolidated net income is used to monitor budget versus actual results.
The accounting policies of our operating segment are the same as those described in the Company's summary of significant accounting policies.
The Company derives revenues from customers through sales of air and fluid compression and high-speed electric motor technologies for OEMs and distributors within the mobility and industrial space. In addition to consolidated net income, the CODM regularly reviews sales by region and product line.
Sales concentration - Net sales by region (determined based on country of shipment) and product line are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
United States$178 $174 $354 $352 
Europe
     United Kingdom92 80 177 164 
     Rest of Europe369 354 709 739 
Asia
     China151 161 304 319 
     Rest of Asia99 102 203 196 
Other International24 19 44 35 
$913 $890 $1,791 $1,805 
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Diesel$217 $220 $425 $461 
Gas398 375 801 763 
Commercial Vehicle170 161 325 322 
Aftermarket111 121 209 233 
Other17 13 31 26 
$913 $890 $1,791 $1,805 
The table below provides segment information about the Company:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Net sales$913 $890 $1,791 $1,805 
Less:
   Material costs513 517 1,014 1,054 
   Variable manufacturing costs (1)
123 95 221 191 
   Fixed manufacturing costs (2)
51 52 110 118 
   Research, development and engineering
    costs		45 41 85 85 
   Selling, general and administrative costs59 61 118 125 
   Interest expense25 62 54 93 
   Income tax expense15 23 38 38 
   Other segment items (3)
(5)(25)2 (29)
Consolidated net income$87 $64 $149 $130 
(1) Variable manufacturing costs include freight, duties, direct and indirect labor costs, repairs and maintenance, repositioning costs and variable overhead costs.
(2) Fixed manufacturing costs include depreciation and amortization, rent, overhead labor costs, utilities and other fixed costs.
(3) Other segment items consist of gain on sale of equity interest in unconsolidated joint venture, non-service components of net periodic pension expense, interest income, equity income and other non-operating income items (if any).
The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company had capital expenditures of $15 million and $17 million for the three months ended June 30, 2025 and 2024, respectively, and $41 million and $49 million for the six months ended June 30, 2025 and 2024, respectively.