v3.25.3
Segments and Concentrations
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
2025202420252024
(Dollars in millions)
United States$170 $178 $524 $530 
Europe
     Germany96 76 271 250 
     Rest of Europe338 300 1,049 1,029 
Asia
     China167 144 471 464 
     Rest of Asia97 108 300 303 
Other International34 20 78 55 
$902 $826 $2,693 $2,631 
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(Dollars in millions)
Diesel$201 $180 $626 $641 
Gas405 360 1,206 1,123 
Commercial Vehicle164 155 489 477 
Aftermarket116 117 325 350 
Other16 14 47 40 
$902 $826 $2,693 $2,631 
The table below provides segment information about the Company:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(Dollars in millions)
Net sales$902 $826 $2,693 $2,631 
Less:
   Material costs500 478 1,514 1,533 
   Variable manufacturing costs (1)
121 87 342 279 
   Fixed manufacturing costs (2)
62 52 173 168 
   RD&E costs33 43 118 128 
   Selling, general and administrative costs57 53 175 178 
   Interest expense29 37 83 130 
   Income tax expense25 24 63 62 
   Other segment items (3)
(2)— (1)(29)
Consolidated net income$77 $52 $226 $182 
(1) Variable manufacturing costs include freight, duties and tariffs, direct and indirect labor costs, repairs and maintenance, and variable overhead costs.
(2) Fixed manufacturing costs include depreciation and amortization, rent, overhead labor costs, repositioning 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 $10 million and $20 million for the three months ended September 30, 2025 and 2024, respectively, and $51 million and $69 million for the nine months ended September 30, 2025 and 2024, respectively.