v3.26.1
Segments and Concentrations
 6 Months Ended
Jun. 30, 2026
Risks and Uncertainties [Abstract]  
Segments and Concentrations
Note 22. 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 turbocharging, air and fluid compression, and high-speed electric motor technologies for OEMs and independent aftermarket distributors in the mobility and industrial fields.
Sales concentration - Net sales by region (determined based on country of shipment) and product line are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
United States$174 $178 $353 $354 
Europe
     Germany116 86 209 175 
     United Kingdom88 92 183 177 
     Rest of Europe305 283 620 534 
Asia
     China159 151 326 304 
     Rest of Asia102 99 212 203 
Other International32 24 58 44 
$976 $913 $1,961 $1,791 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
Diesel$235 $217 $467 $425 
Gas416 398 859 801 
Commercial Vehicles / Industrial188 170 369 325 
Aftermarket119 111 233 209 
Other18 17 33 31 
$976 $913 $1,961 $1,791 
The table below provides segment information about the Company:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
Net sales$976 $913 $1,961 $1,791 
Less:
   Material costs552 513 1,115 1,014 
   Variable manufacturing costs (1)
108 123 225 221 
   Fixed manufacturing costs (2)
60 51 133 110 
   RD&E costs44 45 81 85 
   Selling, general and administrative costs63 59 121 118 
   Interest expense24 25 51 54 
   Income tax expense25 15 48 38 
   Other segment items (3)
(1)(5)(9)2 
Consolidated net income$101 $87 $196 $149 
(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 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 Consolidated Interim Balance Sheet as total consolidated assets. The Company had capital expenditures of $17 million and $15 million for the three months ended June 30, 2026 and 2025, respectively, and $46 million and $41 million for the six months ended June 30, 2026 and 2025, respectively.