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REPORTABLE SEGMENTS AND RELATED INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company’s business is comprised of two reportable segments, which 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.
In the fourth quarter of 2025, the Company made a strategic decision to shift a significant portion of the original equipment service (OES) business, previously reported in its Aftermarket segment, to the Fuel Systems segment, as distribution will now be handled by the Fuel Systems locations that manufacture the products. This is expected to streamline the sales structure to external customers while also reducing administrative efforts. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.
•Fuel Systems. This segment provides advanced fuel injection systems, fuel delivery modules, canisters, sensors, electronic control modules and associated software. Our highly engineered fuel injection systems portfolio includes pumps, injectors, fuel rail assemblies, engine control modules, and complete systems, including software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications.
•Aftermarket. Through this segment, the Company sells products to independent aftermarket customers. Its product portfolio includes a wide range of products as well as maintenance, test equipment and vehicle diagnostics solutions. Additionally, it offers a diverse portfolio of original equipment service solutions and remanufactured products. The Aftermarket segment also includes sales of starters and alternators to OEM and OES customers.
Segment Adjusted Operating Income (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, separation and transaction costs, intangible asset amortization expense, impairment charges, other net expenses and other items not reflective of ongoing operating income or loss. The Company believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments. Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments.
The Company’s chief operating decision maker (CODM) is the chief executive officer.
The CODM uses Segment AOI for the financial planning and review process. The CODM considers actual-to-forecast and actual-to-actual variances on a quarterly basis for Segment AOI when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Segment AOI for evaluating pricing strategy and to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
The following tables show segment revenues and significant expenses for the Company’s reportable segments:
Three Months Ended June 30, 2026
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$584 $356 $— $940 
Inter-segment eliminations$26 $— $(26)$— 
Net Sales$610 $356 $(26)$940 
Less:
Cost of sales499 252 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
21 39 
Net R&D costs30 3 
Other segment items2
(4)1 
Segment AOI$64 $61 
Three Months Ended June 30, 2025
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$556 $334 $— $890 
Inter-segment eliminations$36 $— $(36)$— 
Net Sales$592 $334 $(36)$890 
Less:
Cost of sales487 242 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
17 32 
Net R&D costs27 3 
Other segment items2
(1)— 
Segment AOI$62 $57 
Six Months Ended June 30, 2026
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$1,133 $685 $— $1,818 
Inter-segment eliminations$59 $— $(59)$— 
Net Sales$1,192 $685 $(59)$1,818 
Less:
Cost of sales986 487 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
41 73 
Net R&D costs56 6 
Other segment items2
(6)2 
Segment AOI$115 $117 
Six Months Ended June 30, 2025
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$1,046 $640 $— $1,686 
Inter-segment eliminations$75 $— $(75)$— 
Net Sales$1,121 $640 $(75)$1,686 
Less:
Cost of sales931 461 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
32 63 
Net R&D costs52 6 
Other segment items2
(2)2 
Segment AOI$108 $108 
____________
1 Excludes acquisition-related intangibles amortization.

2 Other segment items include inter-segment fees and other income.
The following table shows a reconciliation of Segment AOI to Earnings before income taxes for the Company’s reportable segments:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Fuel Systems$64 $62 $115 $108 
Aftermarket61 57 117 108 
Segment AOI125 119 232 216 
Corporate, including stock-based compensation28 25 52 49 
Amortization of acquisition-related intangibles8 7 16 14 
Separation-related (benefits) costs(1)(6)1 (10)
Merger and acquisition expense2 2 3 5 
Restructuring expense8 2 11 7 
Equity in affiliates’ earnings, net of tax(4)(4)(9)(8)
Interest income(2)(4)(4)(8)
Interest expense21 21 41 40 
Other postretirement (income) expense, net(2)1 (3)2 
Earnings before income taxes$67 $75 $124 $125 
Segment Information
Segment information as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 is presented in the tables below:
Assets
(in millions)June 30, 2026December 31, 2025
Fuel Systems$2,044 $2,088 
Aftermarket1,381 1,351 
Total3,425 3,439 
Corporate1
417 378 
Consolidated$3,842 $3,817 
_______________
1 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
Depreciation and amortizationThree Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Fuel Systems$34 $32 $68 $62 
Aftermarket6 7 12 13 
Total40 39 80 75 
Corporate1 — 1 1 
Consolidated$41 $39 $81 $76 
Long-lived asset expenditures1
Six Months Ended June 30,
(in millions)20262025
Fuel Systems$48 $62 
Aftermarket4 5 
Total52 67 
Corporate2 2 
Consolidated$54 $69 
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.