v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

NOTE S. SEGMENT INFORMATION

In accordance with the FASB’s authoritative accounting guidance on segment reporting, the Company has one operating segment and reportable segment. The Company is managed by the Chief Operating Decision Maker ("CODM") based on its one line of business, the design, manufacture and distribution of vehicle propulsion solutions.

The Company’s CODM is its Chair, President and Chief Executive Officer. The CODM evaluates Company performance and makes decisions on the allocation of resources based on Net income, a GAAP measure, and Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), a non-GAAP measure. The most directly comparable GAAP measure to Adjusted EBITDA is Net income. The Company believes that Net income and Adjusted EBITDA provide management, investors and creditors with useful measures of the operational results of its business and increase the period-to-period comparability of the Company's operating profitability and comparability with other companies.

The CODM assesses Company performance utilizing Net income and Adjusted EBITDA by comparing budget versus actual and year-over-year variances. Certain variances identified in the analysis of Net income and Adjusted EBITDA are evaluated to assist the CODM in assessing Company performance and making decisions on the allocation of Company resources. The following expenses included in Net income and Adjusted EBITDA are identified as significant expenses regularly provided to the CODM: Cost of sales, Selling, general and administrative, and Engineering — research and development.

The Company’s one reportable segment is the same as its consolidated financial results; therefore, segment information for additions of long-lived assets and asset information can be found in the Company’s Condensed Consolidated Statements of Cash Flows and Condensed Consolidated Balance Sheets, respectively.

The following presents a financial summary of the Company’s one reportable segment (dollars in millions):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net sales

$

814

 

 

$

816

 

 

$

1,580

 

 

$

1,605

 

less:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

412

 

 

 

422

 

 

 

800

 

 

 

845

 

Selling, general and administrative

 

102

 

 

 

82

 

 

 

188

 

 

 

168

 

Engineering — research and development

 

44

 

 

 

49

 

 

 

87

 

 

 

95

 

Other segment items (a)

 

61

 

 

 

76

 

 

 

118

 

 

 

141

 

Net income (GAAP)

 

195

 

 

 

187

 

 

 

387

 

 

 

356

 

plus:

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

47

 

 

 

47

 

 

 

88

 

 

 

82

 

Depreciation of property, plant and equipment

 

29

 

 

 

27

 

 

 

57

 

 

 

54

 

Interest expense, net

 

22

 

 

 

22

 

 

 

43

 

 

 

47

 

Amortization of intangible assets

 

1

 

 

 

2

 

 

 

3

 

 

 

7

 

Other adjustments (b)

 

19

 

 

 

16

 

 

 

31

 

 

 

44

 

Adjusted EBITDA (Non-GAAP)

$

313

 

 

$

301

 

 

$

609

 

 

$

590

 

Total assets

$

5,411

 

 

$

5,176

 

 

$

5,411

 

 

$

5,176

 

 

(a)
Represents other segment items included in Net income including Income tax expense, Interest expense, net and Other income (expense), net.
(b)
Represents other reconciling items between Net income and Adjusted EBITDA.