v3.25.3
REPORTABLE SEGMENTS
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company discloses segment information under four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems and Battery & Charging Systems. The four reportable segments are consistent with the operating segments that are evaluated by management, including the chief operating decision maker (“CODM”). The Company’s CODM is its Chief Executive Officer. The reportable segments are further described below. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems.
As further described in Note 3, “Acquisitions and Dispositions,” in February 2025, the Company made the decision to exit its charging business within the Battery & Charging Systems reportable segment. This plan did not result in a change to the Company’s reportable segments.

Segment Adjusted Operating Income (Loss) is the measure of segment income or loss used by the Company. Segment Adjusted Operating Income (Loss) is comprised of operating income for the Company’s reportable segments adjusted to exclude restructuring, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss. The Company believes Segment Adjusted Operating Income (Loss) is most reflective of the operational profitability or loss of our reportable segments.

The Company’s CODM uses Segment Adjusted Operating Income (Loss) and the expenses disclosed below to assess the performance of its reportable segments. The CODM uses this information to assist with decisions about future growth, capital investments and cost reduction initiatives by reviewing trends in the business, monitoring variances to historical results and previously forecasted information and performing other analytical comparisons.

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
Three Months Ended September 30, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$1,436 $1,447 $576 $132 $— $3,591 
Net sales - inter-segment1 5 6 — (12)— 
Net sales$1,437 $1,452 $582 $132 $(12)$3,591 
Cost of sales1,138 1,137 498 124 
Selling, general and administrative expenses - R&D, net50 34 94 9 
Selling, general and administrative expenses - Other29 18 26 8 
Other segment items1
1 (4)(1)(2)
Segment Adjusted Operating Income (Loss)$219 $267 $(35)$(7)
Nine Months Ended September 30, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$4,370 $4,227 $1,706 $441 $— $10,744 
Net sales - inter-segment2 15 18 — (35)— 
Net sales$4,372 $4,242 $1,724 $441 $(35)$10,744 
Cost of sales3,470 3,345 1,500 425 
Selling, general and administrative expenses - R&D, net135 95 286 30 
Selling, general and administrative expenses - Other84 36 55 28 
Other segment items1
2 (4)(6)(1)
Segment Adjusted Operating Income (Loss)$681 $770 $(111)$(41)
Three Months Ended September 30, 2024
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$1,385 $1,362 $505 $197 $— $3,449 
Net sales - inter-segment1 3 7 — (11)— 
Net sales$1,386 $1,365 $512 $197 $(11)$3,449 
Cost of sales1,112 1,080 417 182 
Selling, general and administrative expenses - R&D, net45 30 99 13 
Selling, general and administrative expenses - Other25 6 19 12 
Other segment items1
2 (2)(4)(2)
Segment Adjusted Operating Income (Loss)$202 $251 $(19)$(8)
Nine Months Ended September 30, 2024
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$4,472 $4,218 $1,390 $567 $— $10,647 
Net sales - inter-segment3 8 22 — (33)— 
Net sales$4,475 $4,226 $1,412 $567 $(33)$10,647 
Cost of sales3,606 3,347 1,204 532 
Selling, general and administrative expenses - R&D, net130 87 302 37 
Selling, general and administrative expenses - Other81 24 42 34 
Other segment items1
4 (2)(6)(3)
Segment Adjusted Operating Income (Loss)$654 $770 $(130)$(33)
_______________
1 Other segment items include other income and expenses to derive at segment adjusted operating income.
Segment Adjusted Operating Income (Loss)
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Turbos & Thermal Technologies$219 $202 $681 $654 
Drivetrain & Morse Systems267 251 770 770 
PowerDrive Systems(35)(19)(111)(130)
Battery & Charging Systems(7)(8)(41)(33)
Segment Adjusted Operating Income444 426 1,299 1,261 
Corporate, including stock-based compensation59 76 189 196 
Accelerated depreciation1
60 27 81 35 
Restructuring expense (Note 5)23 21 71 65 
Intangible asset amortization expense16 17 49 51 
Impairment charges— — 42 — 
Legal settlement (Note 20)38 — 38 — 
Costs to exit charging business (Note 3)— — 32 — 
Chief Executive Officer ("CEO") transition compensation2
5 — 11 — 
Write-off of customer incentive asset (Note 4)— — 7 — 
Adjustments associated with Spin-Off related balances2
8 3 7 14 
Loss on sale of assets2
1 — 6 — 
Merger and acquisition expense, net2
2 (5)4 — 
Loss on sale of businesses2
1 6 2 3 
Collective bargaining agreement ratification bonus2
— 4 — 4 
Commercial contract settlement2
— — — 15 
Insurance recovery (Note 12)(21)— (21)— 
Other non-comparable items4 7 7 16 
Equity in affiliates’ earnings, net of tax(11)(6)(29)(23)
Unrealized gain on equity securities(1)(2)(2)— 
Interest expense, net9 4 33 17 
Other postretirement expense3 4 8 10 
Earnings from continuing operations before income taxes and noncontrolling interest$248 $270 $764 $858 
_______________
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 7, “Other operating expense (income), net,” to the Condensed Consolidated Financial Statements for more information.
    
Segment information
Depreciation and amortization
Long-lived asset expenditures1
Total assets
(in millions)Three Months Ended September 30, 2025Three Months Ended September 30, 2024Three Months Ended September 30, 2025Three Months Ended September 30, 2024September 30, 2025December 31, 2024
Turbos & Thermal Technologies$43 $44 $46 $50 $3,960 $3,693 
Drivetrain & Morse Systems47 74 26 29 3,953 3,872 
PowerDrive Systems44 44 33 54 2,883 2,792 
Battery & Charging Systems75 16 4 22 945 1,082 
Total209 178 109 155 11,741 11,439 
Corporate2
10 7 2 — 2,755 2,554 
Consolidated$219 $185 $111 $155 $14,496 $13,993 
Depreciation and amortization
Long-lived asset expenditures1
Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024
Turbos & Thermal Technologies$125 $131 $115 $131 
Drivetrain & Morse Systems166 182 67 88 
PowerDrive Systems132 121 101 208 
Battery & Charging Systems106 39 16 73 
Total529 473 299 500 
Corporate24 22 8 10 
Consolidated$553 $495 $307 $510 
_______________
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.