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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
ASC Topic 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair values as follows:

Level 1:Observable inputs such as quoted prices for identical assets or liabilities in active markets;
Level 2:Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3:Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC Topic 820:

A.Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business.
B.Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost).
C.Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models).

Fair Value Measurements on a Recurring Basis

The following tables classify assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:
  Basis of fair value measurements
 Balance at December 31, 2025Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV1
(in millions)
Assets:     
Investment in equity securities$28 $— $— $— —$28 
Foreign currency contracts$22 $— $22 $— A$— 
Net investment hedge contracts$23 $— $23 $— A$— 
Liabilities:  
Current earn-out liabilities$3 $— $— $3 C$— 
Foreign currency contracts$19 $— $19 $— A$— 
Net investment hedge contracts$94 $— $94 $— A$— 
  Basis of fair value measurements
(in millions)Balance at December 31, 2024Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV1
Assets:
Investment in equity securities$25 $— $— $— —$25 
Foreign currency contracts$24 $— $24 $— A$— 
Net investment hedge contracts$84 $— $84 $— A$— 
Liabilities:
Current earn-out liabilities$4 $— $— $4 C$— 
Non-current earn-out liabilities$3 $— $— $3 C$— 
Foreign currency contracts$32 $— $32 $— A$— 
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1 Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These amounts represent investments in commingled and managed funds that have underlying assets in fixed income securities, equity securities, and other assets and the fair values have been estimated using the net asset value of the Company's ownership interest in partners' capital. The Company’s redemption of its investments with the funds is governed by the partnership agreements and subject to approval from the general partners. With the exception of annual distributions in connection with the Company’s deemed tax liability, distributions from each fund will be received as the underlying investments of the funds are liquidated, the timing of which is unknown.
The following tables provide a reconciliation of the Company’s Level 3 earn-out assets and liabilities:
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions)Current earn-out liabilitiesNon-current earn-out liabilities
Balance at January 1, 2025$4 $3 
Reclassification3 (3)
Earn-out settlements(4)— 
Balance at December 31, 2025
$3 $— 

Refer to Note 2, “Acquisitions and Dispositions,” to the Consolidated Financial Statements for more detail regarding earn-outs.
The following tables provide a reconciliation of the Company’s defined benefit plans assets measured at fair value on a recurring basis:
  Basis of fair value measurements
(in millions)Balance at December 31, 2025Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV2
U.S. Plans: 
Fixed income securities$77 $— $— $— —$77 
Equity securities4 — — — —4 
Alternative credit fund15 — — — —15 
Cash29 29 — — A— 
 $125 $29 $— $—  $96 
Non-U.S. Plans: 
Fixed income securities$144 $26 $— $— A$118 
Equity securities90 72 — — A18 
Cash1 1 — — A— 
Insurance contract1
131 — — 131 C— 
Real estate and other66 37 12 — A,C17 
 $432 $136 $12 $131  $153 
  Basis of fair value measurements
(in millions)Balance at December 31, 2024Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV2
U.S. Plans:     
Fixed income securities$76 $— $— $— —$76 
Equity securities16 — — — —16 
Alternative credit fund15 — — — —15 
Cash19 19 — — A— 
 $126 $19 $— $—  $107 
Non-U.S. Plans: 
Fixed income securities$141 $23 $— $— A$118 
Equity securities73 60 — — A13 
Cash33 33 — — A— 
Insurance contract1
98 — — 98 C— 
Real estate and other35 5 13 — A,C17 
 $380 $121 $13 $98  $148 
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1 A BorgWarner defined benefit plan in the United Kingdom owns an insurance contract that guarantees payment of specified pension liabilities. The Company measures the fair value of the insurance asset by projecting expected future cash flows from the contract and discounting them to present value based on current market rates, including an assessment for non-performance risk of the insurance company. The assumptions used to project expected future cash flows are based on actuarial estimates and are unobservable; therefore, the contract is categorized within Level 3 of the hierarchy.
2 Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These amounts represent investments in commingled and managed funds that have underlying assets in fixed income securities, equity securities, and other assets.
The following tables provide a reconciliation of the Company’s Level 3 defined benefit plans assets:
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions)Insurance contract
Balance at January 1, 2025$98 
Purchases, sales and settlements33 
Benefits paid(8)
Translation adjustment8 
Balance at December 31, 2025$131 

Refer to Note 18, “Retirement Benefit Plans,” to the Consolidated Financial Statements for more detail surrounding the defined benefit plan’s asset investment policies and strategies, target allocation percentages and expected return on plan asset assumptions.

Fair Value Measurements on a Nonrecurring Basis

The Company measures certain assets at fair value on a nonrecurring basis. These fair value measurements are classified within Level 3 of the fair value hierarchy.

During the year ended December 31, 2025, the Company recorded asset impairment charges of $174 million related to certain property, plant, and equipment at locations in the Company’s Battery & Charging Systems and PowerDrive Systems reporting segments. During the year ended December 31, 2024, the Company recorded asset impairment charges of $69 million related to certain property, plant, and equipment at locations in the Company’s Battery & Charging Systems and PowerDrive Systems reporting segments. Refer to Note 1, “Summary of Significant Accounting Policies,” to the Consolidated Financial Statements for more information.

During the year ended December 31, 2025, the Company recorded investment impairment charges of $16 million. Refer to Note 6, “Other Operating Expense (Income), Net,” to the Consolidated Financial Statements for more information.