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REPORTING SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company discloses segment information under four reportable segments, 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, which are managed separately as each represents a specific grouping of related automotive components and systems.

•Turbos & Thermal Technologies. This segment’s products include turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters and battery cooling systems.
•Drivetrain & Morse Systems. This segment’s products include hydraulic controls, friction and mechanical clutch products for automatic transmissions and torque-management products, such as transfer cases for 4-wheel drive (“4WD”) and all-wheel drive (“AWD”) applications, electronic limited slip differentials (“eLSD”), and electric torque vectoring and axle disconnect systems. Additionally, the Drivetrain & Morse Systems products include chain systems and variable camshaft phasing products.
•PowerDrive Systems. This segment’s products include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes, rotating electric machines, fully integrated drive modules (consisting of inverter, eMotor and gear reducer) and electronic controls.
•Battery & Charging Systems. This segment’s products include high-performance lithium-ion battery systems for electrified bus-, truck- and off-highway applications.
In February 2025, the Company made the decision to exit its charging business within the Battery & Charging Systems reportable segment. This exit did not result in a change to the Company’s reportable segments. Refer to Note 2, “Acquisitions and Dispositions,” to the Consolidated Financial Statements for more information.

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 its 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
Year ended December 31, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$5,769 $5,635 $2,322 $590 $— $14,316 
Net sales - inter-segment3 19 25 — (47)— 
Net sales$5,772 $5,654 $2,347 $590 $(47)$14,316 
Cost of sales4,602 4,430 1,995 555 
Selling, general and administrative expenses - R&D, net178 132 354 37 
Selling, general and administrative expenses - Other114 55 89 37 
Other segment items1
(1)(4)(8)— 
Segment Adjusted Operating Income (Loss)$879 $1,041 $(83)$(39)
Year ended December 31, 2024
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$5,885 $5,564 $1,908 $729 $— $14,086 
Net sales - inter-segment2 13 29 — (44)— 
Net sales$5,887 $5,577 $1,937 $729 $(44)$14,086 
Cost of sales4,724 4,413 1,648 681 
Selling, general and administrative expenses - R&D, net170 118 384 51 
Selling, general and administrative expenses - Other114 38 60 47 
Other segment items1
2 (2)(11)(3)
Segment Adjusted Operating Income (Loss)$877 $1,010 $(144)$(47)
Year ended December 31, 2023
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery & Charging SystemsInter-segment eliminationsTotal
Net sales - customers$6,007 $5,543 $2,102 $546 $— $14,198 
Net sales - inter-segment5 6 64 — (75)— 
Net sales$6,012 $5,549 $2,166 $546 $(75)$14,198 
Cost of sales4,865 4,413 1,826 581 
Selling, general and administrative expenses - R&D, net175 122 362 44 
Selling, general and administrative expenses - Other100 49 73 40 
Other segment items1
(2)7 (5)(3)
Segment Adjusted Operating Income (Loss)$874 $958 $(90)$(116)
_______________
1 Other segment items include other income and expenses to derive Segment Adjusted Operating Income (Loss).
Segment Adjusted Operating Income (Loss)
Year Ended December 31,
(in millions)202520242023
Turbos & Thermal Technologies$879 $877 $874 
Drivetrain & Morse Systems1,041 1,010 958 
PowerDrive Systems(83)(144)(90)
Battery & Charging Systems(39)(47)(116)
Segment Adjusted Operating Income1,798 1,696 1,626 
Corporate, including stock-based compensation261 279 278 
Impairment charges624 646 29 
Restructuring expense (Note 4)101 74 79 
Accelerated depreciation1
90 50 4 
Intangible asset amortization expense66 69 67 
Legal settlement (Note 21)40 — — 
Costs to exit charging business (Note 2)32 — — 
Impairment of investment16 — — 
Chief Executive Officer ("CEO") transition compensation2
11 — — 
Loss (gain) on sale of assets2
9 2 (13)
Adjustments associated with Spin-Off related balances2
7 17 — 
Write-off customer incentive asset (Note 3)7 — — 
Merger and acquisition expense, net2
5 2 23 
Loss (gain) on sale of businesses2
2 6 (5)
Change in accounting method— (29)— 
Commercial contract settlement2
— 15 — 
Insurance recovery (Note 13)(21)— — 
Other non-comparable items12 19 4 
Equity in affiliates' earnings, net of tax(35)(27)(30)
Unrealized and realized (gain) loss on equity and debt securities(3)1 174 
Interest expense, net39 20 10 
Other postretirement expense11 13 15 
Earnings from continuing operations before income taxes and noncontrolling interest$524 $539 $991 
_____________
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 6, “Other Operating Expense (Income), Net,” to the Consolidated Financial Statements for more information.
    
Segment Information
Depreciation and amortization
Long-lived asset expenditures1
(in millions)202520242023202520242023
Turbos & Thermal Technologies$171 $177 $170 $188 $170 $184 
Drivetrain & Morse Systems214 246 215 101 115 134 
PowerDrive Systems184 164 127 149 291 384 
Battery & Charging Systems120 57 39 18 82 96 
Total689 644 551 456 658 798 
Corporate2
30 29 31 13 13 34 
Consolidated$719 $673 $582 $469 $671 $832 
Total assets
202520242023
Turbos & Thermal Technologies$3,743 $3,693 $3,938 
Drivetrain & Morse Systems3,795 3,872 4,262 
PowerDrive Systems3,163 2,792 3,185 
Battery & Charging Systems460 1,082 1,335 
Total11,161 11,439 12,720 
Corporate2
2,608 2,554 1,733 
Consolidated$13,769 $13,993 $14,453 
_______________
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.
    

Geographic Information

During the year ended December 31, 2025, approximately 84% of the Company’s consolidated net sales were outside the U.S., attributing sales to the location of production rather than the location of the customer. Outside the U.S., China, Mexico, Germany, Poland, South Korea and Hungary exceeded 5% of consolidated net sales during the year ended December 31, 2025. The following table shows sales to customers and property, plant and equipment by country.
 SalesProperty, plant and equipment
(in millions)202520242023202520242023
United States$2,293 $2,240 $2,334 $677 $718 $778 
Europe:   
Germany1,624 1,680 1,669 220 352 393 
Poland1,245 1,160 1,121 393 356 342 
Hungary771 820 904 166 154 167 
Other Europe1,508 1,586 1,387 501 472 456 
Total Europe5,148 5,246 5,081 1,280 1,334 1,358 
China2,968 2,862 2,998 652 720 876 
Mexico1,741 1,644 1,759 325 412 374 
South Korea1,150 1,181 1,163 199 189 197 
Other foreign1,016 913 863 197 202 200 
Total$14,316 $14,086 $14,198 $3,330 $3,575 $3,783 
Sales to Major Customers

Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 13%, 10% and 11% for the years ended December 31, 2025, 2024 and 2023. Consolidated net sales to Ford (including its subsidiaries) were approximately 12%, 13% and 14% for the years ended December 31, 2025, 2024 and 2023, respectively. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented.

Sales by Product Line

Sales of turbochargers for light vehicles represented approximately 21%, 21% and 22% of consolidated net sales for the years ended December 31, 2025, 2024 and 2023, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.