v3.26.3
Segments and Concentrations
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
2026202520262025
(Dollars in millions)
United States$175 $170 $528 $524 
Europe
     Germany112 96 321 271 
     Rest of Europe344 338 1,147 1,049 
Asia
     China149 167 475 471 
     Rest of Asia111 97 323 300 
Other International39 34 97 78 
$930 $902 $2,891 $2,693 
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(Dollars in millions)
Diesel$212 $201 $679 $626 
Gas385 405 1,244 1,206 
Commercial Vehicles / Industrial202 164 571 489 
Aftermarket122 116 355 325 
Other9 16 42 47 
$930 $902 $2,891 $2,693 
The table below provides segment information about the Company:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(Dollars in millions)
Net sales$930 $902 $2,891 $2,693 
Less:
   Material costs519 500 1,634 1,514 
   Variable manufacturing costs (1)
105 121 330 342 
   Fixed manufacturing costs (2)
61 62 193 173 
   RD&E costs39 33 120 118 
   Selling, general and administrative costs58 57 179 175 
   Interest expense27 29 78 83 
   Income tax expense22 25 70 63 
   Other segment items (3)
2 (2)(6)(1)
Consolidated net income$97 $77 $293 $226 
(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 expense (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 $15 million and $10 million for the three months ended September 30, 2026 and 2025, respectively, and $61 million and $51 million for the nine months ended September 30, 2026 and 2025, respectively.