v3.23.3
REPORTABLE SEGMENTS AND RELATED INFORMATION
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company’s business is aggregated into three reportable segments: Air Management, Drivetrain & Battery Systems, and ePropulsion. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems. In previous quarters, the Company presented two additional segments, Fuel Systems and Aftermarket, for a total of five reportable segments. As a result of the Spin-Off, Fuel Systems and Aftermarket are no longer reportable segments.

In the first quarter of 2023, the Company elected to disaggregate the former e-Propulsion & Drivetrain reportable segment into two separate reportable segments of Drivetrain & Battery Systems and ePropulsion. The Drivetrain & Battery Systems segment’s technologies include battery management systems and control modules, software, friction and mechanical products for automatic transmissions and torque-management products. The ePropulsion segment primarily includes rotating electrical components, power electronics, electronic control units, inverters and electric motors.

In the first quarter of 2022, the Company announced that the Americas starter and alternator business, previously reported in its former e-Propulsion & Drivetrain segment, would transition to the Aftermarket segment. The Company also announced in 2022 that the canisters and fuel delivery modules business, previously reported in its Air Management segment, would transition to the Fuel Systems segment. Both of these transitions were completed during the second quarter of 2022. Additionally, in the fourth quarter of 2022, the Company moved its battery systems business, previously reported in its Air Management segment, to the former e-Propulsion & Drivetrain segment.
The reportable segment disclosures have been updated accordingly, including recasting prior period information for the new reporting structures and to reflect the discontinued operations related to the Spin-Off.

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 adjusted for 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 our reportable segments.

The following tables show segment information and Segment Adjusted Operating Income (Loss) for the Company’s reportable segments:

Net Sales by Reportable Segment
Three Months Ended September 30, 2023Nine Months Ended September 30, 2023
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,922 $23 $1,945 $5,888 $63 $5,951 
Drivetrain & Battery Systems1,144 1 1,145 3,216 2 3,218 
ePropulsion556 15 571 1,572 52 1,624 
Inter-segment eliminations— (39)(39)— (117)(117)
Net sales$3,622 $— $3,622 $10,676 $— $10,676 

Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
(in millions)CustomersInter-segmentNetCustomersInter-segmentNet
Air Management$1,827 $16 $1,843 $5,283 $45 $5,328 
Drivetrain & Battery Systems954 — 954 2,745 — 2,745 
ePropulsion445 44 489 1,290 71 1,361 
Inter-segment eliminations— (60)(60)— (116)(116)
Net sales$3,226 $— $3,226 $9,318 $— $9,318 


Total Assets of Continuing Operations by Reportable Segment
(in millions)September 30, 2023December 31, 2022
Air Management$5,559 $5,329 
Drivetrain & Battery Systems3,954 3,963 
ePropulsion2,847 2,349 
Total12,360 11,641 
Corporate1,744 1,691 
Consolidated$14,104 $13,332 
Segment Adjusted Operating Income (Loss)
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2023202220232022
Air Management$294 $291 $884 $793 
Drivetrain & Battery Systems147 103 400 330 
ePropulsion(20)(33)(74)(89)
Segment Adjusted Operating Income421 361 1,210 1,034 
Corporate, including stock-based compensation72 61 194 198 
Restructuring expense (Note 5)56 5 68 42 
Intangible asset amortization expense17 16 51 52 
Merger and acquisition expense, net3 5 22 13 
Service and lease agreement termination— — 9 — 
Loss (gain) on sale of business— 9 (5)(15)
Gain on sale of assets(7)— (13)— 
Other non-comparable items8 — 5 — 
Equity in affiliates’ earnings, net of tax(10)(5)(23)(21)
Realized and unrealized loss (gain) on debt and equity securities60 (1)129 27 
Interest (income) expense, net(19)12 3 41 
Other postretirement expense (income)3 (1)8 (2)
Earnings from continuing operations before income taxes and noncontrolling interest238 260 762 699 
Provision for income taxes133 68 230 177 
Net earnings from continuing operations$105 $192 $532 $522