v3.26.1
Segment Reporting and Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Segment Reporting and Revenue
20. SEGMENT REPORTING AND REVENUE
The Company operates its core business as a single reportable segment, which includes low voltage and high voltage electrical architectures. Financial results for the Company’s reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company’s chief operating decision maker (“CODM”) to assess performance and make internal operating decisions about allocating resources. The Company’s CODM is the Chief Executive Officer.
Generally, the Company’s management, including the CODM, utilizes net income (loss) to evaluate the Company’s performance, the allocation of operating and capital resources and for planning and forecasting purposes.
Included below are segment net sales, significant expenses and operating data for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Net sales$2,444 $2,206 $4,656 $4,230 
Less:
Cost of sales2,123 1,943 4,091 3,718 
Selling, general and administrative100 104 197 209 
Other segment items (1)
105 47 171 95 
Net income$116 $112 $197 $208 
(1)Other segment items primarily include amortization, restructuring, separation costs, interest expense, other expense, net, income tax expense and equity income, net.
Included below is additional segment information for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Income tax expense$(46)$(21)$(37)$(50)
Equity income, net$5 $3 $9 $8 
Amortization$— $(1)$(1)$(1)
Other expense, net$(6)$— $(7)$(1)
Interest expense $(36)$(1)$(41)$(3)
Separation costs $(22)$(2)$(48)$(7)
Restructuring$— $(25)$(46)$(41)
Depreciation and amortization (1)$(51)$(59)$(112)$(111)
Capital expenditures$(51)$(42)$(117)$(79)
(1)Segment depreciation and amortization is included within segment cost of sales, selling, general and administrative expense and amortization expense disclosed.

Included below is balance sheet data as of June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
(in millions)
Investments in affiliates $149 $143 
Segment assets $5,359 $4,485 
Nature of Goods and Services
The principal activity from which the Company generates its revenue is the manufacturing of production parts for OEM customers. The Company recognizes revenue for production parts at a point in time, rather than over time, as the performance obligation is satisfied when customers obtain control of the product upon title transfer and not as the product is manufactured or developed.
Although production parts are highly customized with no alternative use, the Company does not have an enforceable right to payment as customers have the right to cancel a product program without a notification period. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e., estimated rebates and price discounts), as applicable. Customers typically pay for production parts based on customary business practices with payment terms averaging 60 days.
Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy.
Revenue by Product Line
Revenue by product line for the three and six months ended June 30, 2026 and 2025 is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Low Voltage Electrical Architecture2,222 1,945 4,227 3,745 
High Voltage Electrical Architecture$222 $261 $429 $485 
Total net sales$2,444 $2,206 $4,656 $4,230 
Revenue by Geographic Region
Net sales reflects the manufacturing location and is for the three and six months ended June 30, 2026 and 2025.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Geographic Markets
North America $1,022 $921 $1,919 $1,743 
Europe, Middle East & Africa 524 555 1,033 1,068 
Asia Pacific
825 667 1,564 1,303 
South America 73 63 140 116 
Total net sales$2,444 $2,206 $4,656 $4,230 
Contract Balances
Consistent with the recognition of production parts revenue at a point in time title transfers to the customer, the Company has no contract assets or contract liabilities balances as of June 30, 2026 and December 31, 2025.
Remaining Performance Obligations
For production parts, customer contracts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. There are no contracts for production parts outstanding beyond one year. The Company does not enter into fixed long-term supply agreements.
As permitted, the Company does not disclose information about remaining performance obligations that have original expected durations of one year or less for production parts.
Payments to Customers
From time to time, the Company makes payments to customers in conjunction with ongoing business. These payments to customers are generally one-time, upfront payments made in connection with the award of new business to us and are recognized as a reduction to revenue at the time of the commitment to make these payments. The amount of these payments was not significant for the six months ended June 30, 2026 and 2025.
However, certain of these payments to customers, or upfront fees, are capitalized as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. As of June 30, 2026 and December 31, 2025, the Company has recorded $30 million (of which $5 million was classified within other current assets and $25 million was classified within other long-term assets) and $33 million (of which $7 million was classified within other current assets and $26 million was classified within other long-term assets), respectively, related to these capitalized upfront fees.
Capitalized upfront fees are amortized to revenue based on the transfer of goods and services to the customer for which the upfront fees relate, which typically range from three to five years. There have been no impairment losses in relation to the costs capitalized. The amount of amortization to net sales was $1 million for both the three months ended June 30, 2026 and 2025, and $3 million and $2 million for the six months ended June 30, 2026 and 2025, respectively.
Segment Reporting and Revenue
20. SEGMENT REPORTING AND REVENUE
The Company operates its core business as a single reportable segment, which includes low voltage and high voltage electrical architectures. Financial results for the Company’s reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company’s chief operating decision maker (“CODM”) to assess performance and make internal operating decisions about allocating resources. The Company’s CODM is the Chief Executive Officer.
Generally, the Company’s management, including the CODM, utilizes net income (loss) to evaluate the Company’s performance, the allocation of operating and capital resources and for planning and forecasting purposes.
Included below are segment net sales, significant expenses and operating data for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Net sales$2,444 $2,206 $4,656 $4,230 
Less:
Cost of sales2,123 1,943 4,091 3,718 
Selling, general and administrative100 104 197 209 
Other segment items (1)
105 47 171 95 
Net income$116 $112 $197 $208 
(1)Other segment items primarily include amortization, restructuring, separation costs, interest expense, other expense, net, income tax expense and equity income, net.
Included below is additional segment information for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Income tax expense$(46)$(21)$(37)$(50)
Equity income, net$5 $3 $9 $8 
Amortization$— $(1)$(1)$(1)
Other expense, net$(6)$— $(7)$(1)
Interest expense $(36)$(1)$(41)$(3)
Separation costs $(22)$(2)$(48)$(7)
Restructuring$— $(25)$(46)$(41)
Depreciation and amortization (1)$(51)$(59)$(112)$(111)
Capital expenditures$(51)$(42)$(117)$(79)
(1)Segment depreciation and amortization is included within segment cost of sales, selling, general and administrative expense and amortization expense disclosed.

Included below is balance sheet data as of June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
(in millions)
Investments in affiliates $149 $143 
Segment assets $5,359 $4,485 
Nature of Goods and Services
The principal activity from which the Company generates its revenue is the manufacturing of production parts for OEM customers. The Company recognizes revenue for production parts at a point in time, rather than over time, as the performance obligation is satisfied when customers obtain control of the product upon title transfer and not as the product is manufactured or developed.
Although production parts are highly customized with no alternative use, the Company does not have an enforceable right to payment as customers have the right to cancel a product program without a notification period. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e., estimated rebates and price discounts), as applicable. Customers typically pay for production parts based on customary business practices with payment terms averaging 60 days.
Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy.
Revenue by Product Line
Revenue by product line for the three and six months ended June 30, 2026 and 2025 is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Low Voltage Electrical Architecture2,222 1,945 4,227 3,745 
High Voltage Electrical Architecture$222 $261 $429 $485 
Total net sales$2,444 $2,206 $4,656 $4,230 
Revenue by Geographic Region
Net sales reflects the manufacturing location and is for the three and six months ended June 30, 2026 and 2025.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Geographic Markets
North America $1,022 $921 $1,919 $1,743 
Europe, Middle East & Africa 524 555 1,033 1,068 
Asia Pacific
825 667 1,564 1,303 
South America 73 63 140 116 
Total net sales$2,444 $2,206 $4,656 $4,230 
Contract Balances
Consistent with the recognition of production parts revenue at a point in time title transfers to the customer, the Company has no contract assets or contract liabilities balances as of June 30, 2026 and December 31, 2025.
Remaining Performance Obligations
For production parts, customer contracts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. There are no contracts for production parts outstanding beyond one year. The Company does not enter into fixed long-term supply agreements.
As permitted, the Company does not disclose information about remaining performance obligations that have original expected durations of one year or less for production parts.
Payments to Customers
From time to time, the Company makes payments to customers in conjunction with ongoing business. These payments to customers are generally one-time, upfront payments made in connection with the award of new business to us and are recognized as a reduction to revenue at the time of the commitment to make these payments. The amount of these payments was not significant for the six months ended June 30, 2026 and 2025.
However, certain of these payments to customers, or upfront fees, are capitalized as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. As of June 30, 2026 and December 31, 2025, the Company has recorded $30 million (of which $5 million was classified within other current assets and $25 million was classified within other long-term assets) and $33 million (of which $7 million was classified within other current assets and $26 million was classified within other long-term assets), respectively, related to these capitalized upfront fees.
Capitalized upfront fees are amortized to revenue based on the transfer of goods and services to the customer for which the upfront fees relate, which typically range from three to five years. There have been no impairment losses in relation to the costs capitalized. The amount of amortization to net sales was $1 million for both the three months ended June 30, 2026 and 2025, and $3 million and $2 million for the six months ended June 30, 2026 and 2025, respectively.