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REPORTING SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTING SEGMENTS AND RELATED INFORMATION
Following the Delphi Technologies acquisition, in order to align with the manner in which the business is viewed and managed subsequent to the acquisition, the Company reorganized its management reporting structure. Previously, the Company reported its results under two reporting segments, Engine and Drivetrain, which are now combined for reporting purposes with portions of the acquired business and referred to as Air Management and e-Propulsion & Drivetrain, respectively. The former Delphi Technologies Powertrain Products segment was integrated into the Air Management segment, and the former Delphi Technologies Electronics & Electrification segment was integrated into the e-Propulsion & Drivetrain segment. The remaining Delphi Technologies segments comprise two additional reporting segments, which are referred to as Fuel Injection and Aftermarket. Segment information for periods prior to the Delphi Technologies acquisition do not include amounts related to the Delphi Technologies operations. In summary, the Company’s business is aggregated into four reporting 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.

•Air Management. This segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance. The Air Management segment’s technologies include: turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, canisters, cabin heaters, battery heaters and battery charging.
•e-Propulsion & Drivetrain. This segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance in combustion, hybrid and electric vehicles. The e-Propulsion & Drivetrain segment’s technologies include: rotating electrical components, power electronics, control modules, software, friction and mechanical products for automatic transmissions and torque management products.
•Fuel Injection. This segment includes gasoline and diesel fuel injection components and systems. The gasoline fuel injection portfolio includes a full suite of fuel injection technologies – including pumps, injectors, fuel rail assemblies and complete systems – that deliver greater efficiency for traditional and hybrid vehicles with gasoline combustion engines.
•Aftermarket. Through this segment the Company sells products and services to independent aftermarket customers and original equipment service customers. The aftermarket product portfolio includes a wide range of solutions covering the fuel injection, electronics and engine management, maintenance, and test equipment and vehicle diagnostics categories.

The Company allocates resources to each segment based upon the projected after-tax return on invested capital (“ROIC”) of its business initiatives. ROIC is comprised of Segment Adjusted EBIT after deducting notional taxes compared to the projected average capital investment required. Segment Adjusted EBIT is comprised of earnings before interest, income taxes and noncontrolling interest (“EBIT”) adjusted for restructuring, merger, acquisition and divestiture expense, impairment charges, affiliates’ earnings and other items not reflective of on-going operating income or loss.

Segment Adjusted EBIT is the measure of segment income or loss used by the Company. The Company believes Segment Adjusted EBIT is most reflective of the operational profitability or loss of our reporting segments. The following tables show segment information and Segment Adjusted EBIT for the Company's reporting segments:
2020 Segment information
Net salesYear-end assetsDepreciation/ amortization (a)Long-lived asset expenditures (b)
(in millions)CustomersInter-segmentNet
Air Management$5,598 $80 $5,678 $5,714 $241 $210 
e-Propulsion & Drivetrain3,940 49 3,989 5,412 261 192 
Fuel Injection435 44 479 1,964 32 21 
Aftermarket192 2 194 806 2 2 
Inter-segment eliminations— (175)(175)— — — 
Total10,165 — 10,165 13,896 536 425 
Corporate (c)— — — 2,133 32 16 
Consolidated$10,165 $— $10,165 $16,029 $568 $441 
2019 Segment information
Net salesYear-end assetsDepreciation/ amortizationLong-lived asset expenditures (b)
(in millions)CustomersInter-segmentNet
Air Management$6,153 $61 $6,214 $4,536 $227 $219 
e-Propulsion & Drivetrain4,015 — 4,015 4,075 183 254 
Inter-segment eliminations— (61)(61)— — — 
Total10,168 — 10,168 8,611 410 473 
Corporate (c)— — — 1,091 29 8 
Consolidated$10,168 $— $10,168 $9,702 $439 $481 
2018 Segment information
Net salesYear-end assets Depreciation/ amortizationLong-lived asset
expenditures (b)
(in millions)CustomersInter-segmentNet
Air Management$6,390 $57 $6,447 $4,731 $226 $278 
e-Propulsion & Drivetrain4,140 — 4,140 3,920 175 254 
Inter-segment eliminations— (57)(57)— — — 
Total10,530 — 10,530 8,651 401 532 
Corporate (c)— — — 1,444 30 14 
Consolidated$10,530 $— $10,530 $10,095 $431 $546 
_______________
(a) In 2020, depreciation and amortization includes incremental amortization associated with purchase accounting and intangibles acquired in the Delphi Technologies acquisition. Additionally, e-Propulsion & Drivetrain includes $38 million related to accelerated amortization for certain intangibles, refer to Note 12, “Goodwill And Other Intangibles,” for more information.
(b) Long-lived asset expenditures include capital expenditures and tooling outlays.
(c) Corporate assets include investments and other long-term receivables and deferred income taxes.
Adjusted earnings before interest, income taxes and noncontrolling interest (“Segment Adjusted EBIT”)
Year Ended December 31,
(in millions)202020192018
Air Management$762 $995 $1,040 
e-Propulsion & Drivetrain359 443 475 
Fuel Injection39 — — 
Aftermarket22 — — 
Segment Adjusted EBIT1,182 1,438 1,515 
Corporate, including stock-based compensation192 206 219 
Restructuring expense203 72 67 
Merger, acquisition and divestiture expense96 11 6 
Intangible asset accelerated amortization38 — — 
Amortization of inventory fair value adjustment27 — — 
Asset impairment and loss on divestiture17 7 25 
Net gain on insurance recovery for property damage(9)— — 
Gain on derecognition of subsidiary— (177)— 
Unfavorable arbitration loss— 14 — 
Officer stock awards modification— 2 8 
Asbestos-related adjustments— — 23 
Gain on sale of building— — (19)
Other operating income— — (4)
Equity in affiliates' earnings, net of tax(18)(32)(49)
Unrealized gain on equity securities(382)— — 
Interest income(12)(12)(6)
Interest expense73 55 59 
Other postretirement (income) expense(7)27 (10)
Earnings before income taxes and noncontrolling interest964 1,265 1,196 
Provision for income taxes397 468 211 
Net earnings567 797 985 
Net earnings attributable to the noncontrolling interest, net of tax67 51 54 
Net earnings attributable to BorgWarner Inc. $500 $746 $931 
Geographic Information

During the year ended December 31, 2020, approximately 80% of the Company's consolidated net sales were outside the United States (“U.S.”), attributing sales to the location of production rather than the location of the customer. Outside the U.S., only Germany, China, South Korea, Mexico and Poland exceeded 5% of consolidated net sales during the year ended December 31, 2020. The Company’s investments in equity securities are excluded from the definition of long-lived assets, as are goodwill and certain other non-current assets.
 Net salesLong-lived assets
(in millions)202020192018202020192018
United States$2,023 $2,335 $2,394 $937 $752 $729 
Europe:   
Germany1,175 1,507 1,665 338 328 371 
Poland696 627 519 352 180 171 
Hungary458 589 687 184 164 153 
United Kingdom276 171 169 229 56 53 
Other Europe954 916 982 620 229 229 
Total Europe3,559 3,810 4,022 1,723 957 977 
China2,269 1,711 1,801 1,055 605 589 
Mexico1,035 1,040 978 367 247 223 
South Korea814 786 859 301 221 235 
Other foreign465 486 476 208 152 151 
Total$10,165 $10,168 $10,530 $4,591 $2,934 $2,904 

Sales to Major Customers

Consolidated net sales to Ford (including its subsidiaries) were approximately 13%, 15%, and 14% for the years ended December 31, 2020, 2019 and 2018, respectively, and to Volkswagen (including its subsidiaries) were approximately 11% for the years ended December 31, 2020 and 2019 and 12% for the year ended 2018. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented.

Sales by Product Line

Sales of turbochargers for light vehicles represented approximately 24%, 28% and 27% of consolidated net sales for the years ended December 31, 2020, 2019 and 2018, respectively. The Company currently supplies light vehicle turbochargers to many OEMs including BMW, Daimler, Stellantis, Ford, General Motors, Great Wall, Hyundai, Renault, Volkswagen and Volvo. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.