Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of | (I.R.S. Employer | |||||||||||||
Incorporation or organization) | Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page No. | |||||
(in millions) | June 30, 2021 | December 31, 2020 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Receivables, net | |||||||||||
Inventories, net | |||||||||||
Prepayments and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Investments and other long-term receivables | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Notes payable and other short-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Retirement-related liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Common stock | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Common stock held in treasury, at cost | ( | ( | |||||||||
Total BorgWarner Inc. stockholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Other operating expense, net | |||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||
Equity in affiliates’ earnings, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Unrealized loss on equity securities | |||||||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other postretirement income | ( | ( | ( | ( | |||||||||||||||||||
Earnings (loss) before income taxes and noncontrolling interest | ( | ||||||||||||||||||||||
Provision (benefit) for income taxes | ( | ||||||||||||||||||||||
Net earnings (loss) | ( | ||||||||||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | |||||||||||||||||||||||
Net earnings (loss) attributable to BorgWarner Inc. | $ | $ | ( | $ | $ | ||||||||||||||||||
Earnings (loss) per share attributable to BorgWarner Inc. — basic | $ | $ | ( | $ | $ | ||||||||||||||||||
Earnings (loss) per share attributable to BorgWarner Inc. — diluted | $ | $ | ( | $ | $ | ||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net earnings (loss) attributable to BorgWarner Inc. | $ | $ | ( | $ | $ | ||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Foreign currency translation adjustments* | ( | ( | |||||||||||||||||||||
Hedge instruments* | ( | ( | |||||||||||||||||||||
Defined benefit postretirement plans* | ( | ||||||||||||||||||||||
Total other comprehensive income (loss) attributable to BorgWarner Inc. | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) attributable to BorgWarner Inc.* | ( | ( | |||||||||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | |||||||||||||||||||||||
Other comprehensive loss attributable to noncontrolling interest* | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ | ( |
Six Months Ended June 30, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
OPERATING | |||||||||||
Net cash provided by operating activities (see Note 23) | $ | $ | |||||||||
INVESTING | |||||||||||
Capital expenditures, including tooling outlays | ( | ( | |||||||||
Capital expenditures for damage to property, plant and equipment | ( | ||||||||||
Insurance proceeds received for damage to property, plant and equipment | |||||||||||
Payments for businesses acquired, net of cash and restricted cash acquired | ( | ( | |||||||||
Proceeds from settlement of net investment hedges, net | |||||||||||
Payments for investments in equity securities and other, net | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING | |||||||||||
Net decrease in notes payable | ( | ||||||||||
Additions to debt | |||||||||||
Payments for debt issuance costs | ( | ( | |||||||||
Repayments of debt, including current portion | ( | ( | |||||||||
Payments for stock-based compensation items | ( | ( | |||||||||
Purchase of noncontrolling interest | ( | ||||||||||
Dividends paid to BorgWarner stockholders | ( | ( | |||||||||
Dividends paid to noncontrolling stockholders | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash | ( | ( | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents at beginning of year | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
(in millions) | Initial Allocation | ||||
ASSETS | |||||
Cash and cash equivalents (including restricted cash of $ | $ | ||||
Receivables, net | |||||
Inventories, net | |||||
Prepayments and other current assets | |||||
Property, plant and equipment, net | |||||
Goodwill | |||||
Other intangible assets, net | |||||
Total assets acquired | |||||
LIABILITIES | |||||
Notes payable and other short-term debt | |||||
Accounts payable | |||||
Other current liabilities | |||||
Long-term debt | |||||
Other non-current liabilities | |||||
Total liabilities assumed | |||||
Noncontrolling interest | |||||
Net assets and noncontrolling interest acquired | $ |
(in millions, except for share data) | |||||
BorgWarner common stock issued for purchase of Delphi Technologies | |||||
BorgWarner share price at October 1, 2020 | $ | ||||
Fair value of stock consideration | $ | ||||
Stock compensation consideration | |||||
Total stock consideration | $ | ||||
Cash consideration | |||||
Repayment of Delphi Technologies’ debt | |||||
Total consideration | $ |
(in millions) | Initial Allocation | Measurement Period Adjustments | Revised Allocation | ||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Receivables, net | ( | ||||||||||||||||
Inventories, net | ( | ||||||||||||||||
Prepayments and other current assets | ( | ||||||||||||||||
Property, plant and equipment, net | ( | ||||||||||||||||
Investments and other long-term receivables | |||||||||||||||||
Goodwill | |||||||||||||||||
Other intangible assets, net | |||||||||||||||||
Other non-current assets | |||||||||||||||||
Total assets acquired | |||||||||||||||||
LIABILITIES | |||||||||||||||||
Notes payable and other short-term debt | |||||||||||||||||
Accounts payable | |||||||||||||||||
Other current liabilities | |||||||||||||||||
Long-term debt | |||||||||||||||||
Other non-current liabilities: | |||||||||||||||||
Retirement-related | |||||||||||||||||
Other non-current liabilities | |||||||||||||||||
Total liabilities assumed | |||||||||||||||||
Noncontrolling interest | |||||||||||||||||
Net assets and noncontrolling interest acquired | $ | $ | $ |
(in millions) | |||||
Air Management | $ | ||||
e-Propulsion & Drivetrain | |||||
Fuel Injection | |||||
Aftermarket | |||||
Total acquisition date goodwill | $ |
(in millions) | Estimated Life | Estimated Fair Value | |||||||||
Amortized intangible assets: | |||||||||||
Developed technology | $ | ||||||||||
Customer relationships | |||||||||||
Total amortized intangible assets | |||||||||||
Unamortized trade name | Indefinite | ||||||||||
Total other intangible assets | $ |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
(In millions) | Air Management | e-Propulsion & Drivetrain | Fuel Injection | Aftermarket | Total | ||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Asia | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
(In millions) | Air Management | e-Propulsion & Drivetrain | Fuel Injection | Aftermarket | Total | ||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Asia | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
(In millions) | Air Management | e-Propulsion & Drivetrain | Fuel Injection | Aftermarket | Total | ||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Asia | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
(In millions) | Air Management | e-Propulsion & Drivetrain | Fuel Injection | Aftermarket | Total | ||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Asia | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
(in millions | Air Management | e-Propulsion & Drivetrain | Fuel Injection | Corporate | Total | ||||||||||||||||||||||||
Employee termination benefits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total restructuring expense | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Air Management | e-Propulsion & Drivetrain | Fuel Injection | Corporate | Total | |||||||||||||||||||||||||
Employee termination benefits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total restructuring expense | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Air Management | e-Propulsion & Drivetrain | Fuel Injection | Corporate | Total | |||||||||||||||||||||||||
Employee termination benefits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total restructuring expense | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Air Management | e-Propulsion & Drivetrain | Fuel Injection | Corporate | Total | |||||||||||||||||||||||||
Employee termination benefits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total restructuring expense | $ | $ | $ | $ | $ |
(in millions | Employee Benefit Terminations | Other | Total | ||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | ||||||||||||||
Restructuring expense, net | |||||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||
Foreign currency translation adjustment | ( | ||||||||||||||||
Balance at June 30, 2021 | |||||||||||||||||
Less: Non-current restructuring liability | |||||||||||||||||
Current restructuring liability at June 30, 2021 | $ | $ | $ | ||||||||||||||
Employee Benefit Terminations | Other | Total | |||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | ||||||||||||||
Restructuring expense, net | |||||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||
Balance at June 30, 2020 | |||||||||||||||||
Less: Non-current restructuring liability | |||||||||||||||||
Current restructuring liability at June 30, 2020 | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Gross R&D expenditures | $ | $ | $ | $ | |||||||||||||||||||
Customer reimbursements | ( | ( | ( | ( | |||||||||||||||||||
Net R&D expenditures | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Restructuring expense (Note 5) | $ | $ | $ | $ | |||||||||||||||||||
Merger, acquisition and divestiture expense | |||||||||||||||||||||||
Loss on sale | |||||||||||||||||||||||
Asset impairments | |||||||||||||||||||||||
Net gain on insurance recovery for property damage | ( | ( | ( | ||||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
Other operating expense, net | $ | $ | $ | $ |
June 30, | December 31, | ||||||||||
(in millions) | 2021 | 2020 | |||||||||
Raw material and supplies | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
FIFO inventories | |||||||||||
LIFO reserve | ( | ( | |||||||||
Inventories, net | $ | $ |
June 30, | December 31, | ||||||||||
(in millions) | 2021 | 2020 | |||||||||
Prepayments and other current assets: | |||||||||||
Prepaid tooling | $ | $ | |||||||||
Prepaid taxes | |||||||||||
Customer incentive payments (Note 4) | |||||||||||
Prepaid engineering | |||||||||||
Contract assets (Note 4) | |||||||||||
Other | |||||||||||
Total prepayments and other current assets | $ | $ | |||||||||
Investments and other long-term receivables: | |||||||||||
Investment in equity affiliates | $ | $ | |||||||||
Equity securities (Note 3) | |||||||||||
Other long-term receivables | |||||||||||
Total investments and other long-term receivables | $ | $ | |||||||||
Other non-current assets: | |||||||||||
Deferred income taxes | $ | $ | |||||||||
Operating leases | |||||||||||
Customer incentive payments (Note 4) | |||||||||||
Other | |||||||||||
Total other non-current assets | $ | $ |
(in millions) | Air Management | e-Propulsion & Drivetrain | Aftermarket | Total | |||||||||||||||||||
Gross goodwill balance, December 31, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Accumulated impairment losses, December 31, 2020 | ( | ( | |||||||||||||||||||||
Net goodwill balance, December 31, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill during the period: | |||||||||||||||||||||||
Acquisition | |||||||||||||||||||||||
Measurement period adjustments | |||||||||||||||||||||||
Other, primarily translation adjustment | ( | ( | ( | ||||||||||||||||||||
Ending balance, June 30, 2021 | $ | $ | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
(in millions) | Estimated useful lives (years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||||||||||||||
Patented and unpatented technology | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Customer relationships | |||||||||||||||||||||||||||||||||||||||||
Miscellaneous | |||||||||||||||||||||||||||||||||||||||||
Total amortized intangible assets | |||||||||||||||||||||||||||||||||||||||||
Unamortized trade names | — | — | |||||||||||||||||||||||||||||||||||||||
Total other intangible assets | $ | $ | $ | $ | $ | $ |
(in millions) | 2021 | 2020 | |||||||||
Beginning balance, January 1 | $ | $ | |||||||||
Provisions for current period sales | |||||||||||
Adjustments of prior estimates | |||||||||||
Payments | ( | ( | |||||||||
Translation adjustment | ( | ( | |||||||||
Ending balance, June 30 | $ | $ |
June 30, | December 31, | ||||||||||
(in millions) | 2021 | 2020 | |||||||||
Other current liabilities | $ | $ | |||||||||
Other non-current liabilities | |||||||||||
Total product warranty liability | $ | $ |
June 30, | December 31, | ||||||||||
(in millions) | 2021 | 2020 | |||||||||
Short-term borrowings | $ | $ | |||||||||
Long-term debt | |||||||||||
Term loan facilities, finance leases and other | |||||||||||
Total long-term debt | |||||||||||
Less: current portion | |||||||||||
Long-term debt, net of current portion | $ | $ |
June 30, | December 31, | ||||||||||
(in millions) | 2021 | 2020 | |||||||||
Other current liabilities: | |||||||||||
Payroll and employee related | $ | $ | |||||||||
Customer related | |||||||||||
Product warranties (Note 12) | |||||||||||
Income taxes payable | |||||||||||
Employee termination benefits (Note 5) | |||||||||||
Indirect taxes | |||||||||||
Accrued freight | |||||||||||
Operating leases | |||||||||||
Dividends payable | |||||||||||
Interest | |||||||||||
Insurance | |||||||||||
Retirement related | |||||||||||
Contract liabilities (Note 4) | |||||||||||
Other | |||||||||||
Total other current liabilities | $ | $ | |||||||||
Other non-current liabilities: | |||||||||||
Deferred income taxes | $ | $ | |||||||||
Non-current income tax liabilities | |||||||||||
Operating leases | |||||||||||
Derivative instruments | |||||||||||
Product warranties (Note 12) | |||||||||||
Deferred income | |||||||||||
Employee termination benefits (Note 5) | |||||||||||
Other | |||||||||||
Total other non-current liabilities | $ | $ |
Basis of fair value measurements | |||||||||||||||||||||||||||||
(in millions) | Balance at June 30, 2021 | Quoted prices in active markets for identical items (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Valuation technique | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investment in equity securities | $ | $ | $ | $ | A | ||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | A | ||||||||||||||||||||||||
Net investment hedge contracts | $ | $ | $ | $ | A | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | A | ||||||||||||||||||||||||
Net investment hedge contracts | $ | $ | $ | $ | A |
Basis of fair value measurements | |||||||||||||||||||||||||||||
(in millions) | Balance at December 31, 2020 | Quoted prices in active markets for identical items (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Valuation technique | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investment in equity securities | $ | $ | $ | $ | A | ||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | A | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | A | ||||||||||||||||||||||||
Net investment hedge contracts | $ | $ | $ | $ | A |
Foreign currency derivatives (in millions)* | ||||||||||||||||||||||||||
Functional Currency | Traded Currency | Notional in traded currency June 30, 2021 | Notional in traded currency December 31, 2020 | Ending Duration | ||||||||||||||||||||||
British pound | Euro | Dec - 22 | ||||||||||||||||||||||||
Chinese renminbi | US dollar | Dec - 22 | ||||||||||||||||||||||||
Chinese renminbi | Euro | Dec - 21 | ||||||||||||||||||||||||
Euro | Chinese renminbi | Dec - 21 | ||||||||||||||||||||||||
Euro | Hungarian forint | Dec - 21 | ||||||||||||||||||||||||
Euro | Polish zloty | Dec - 22 | ||||||||||||||||||||||||
Euro | Swedish krona | Dec - 21 | ||||||||||||||||||||||||
Euro | Korean won | Nov - 21 | ||||||||||||||||||||||||
Euro | US dollar | Dec - 22 | ||||||||||||||||||||||||
Indian rupee | US dollar | Dec - 21 | ||||||||||||||||||||||||
Korean won | US dollar | Dec - 21 | ||||||||||||||||||||||||
US dollar | British pound | Dec - 22 | ||||||||||||||||||||||||
US dollar | Euro | Oct - 21 | ||||||||||||||||||||||||
US dollar | Korean won | Dec - 22 | ||||||||||||||||||||||||
US dollar | Singapore dollar | Dec - 22 | ||||||||||||||||||||||||
US dollar | Thailand baht | May - 22 | ||||||||||||||||||||||||
US dollar | Mexican peso | Dec - 22 | ||||||||||||||||||||||||
*Table above excludes non-significant traded currency pairings with total notional amounts less than $ |
Cross-currency swaps | |||||||||||||||||
(millions of dollars) | June 30, 2021 | December 31, 2020 | Ending duration | ||||||||||||||
US dollar to Euro: | |||||||||||||||||
Fixed receiving notional | $ | $ | Mar - 25 | ||||||||||||||
Fixed paying notional | € | € | Mar - 25 | ||||||||||||||
US dollar to Euro: | |||||||||||||||||
Fixed receiving notional | $ | $ | Jul - 27 | ||||||||||||||
Fixed paying notional | € | € | Jul - 27 | ||||||||||||||
US dollar to Japanese yen: | |||||||||||||||||
Fixed receiving notional | $ | $ | Feb - 23 | ||||||||||||||
Fixed paying notional | ¥ | ¥ | Feb - 23 |
(in millions) | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments Under 815: | Location | June 30, 2021 | December 31, 2020 | Location | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||
Foreign currency | Prepayments and other current assets | $ | $ | Other current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Foreign currency | Other non-current assets | $ | $ | Other non-current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Net investment hedges | Other non-current assets | $ | $ | Other non-current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Foreign currency | Prepayments and other current assets | $ | $ | Other current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Foreign currency | Other non-current assets | $ | $ | Other non-current liabilities | $ | $ |
(in millions) | Deferred gain (loss) in AOCI at | Gain (loss) expected to be reclassified to income in one year or less | ||||||||||||||||||
Contract Type | June 30, 2021 | December 31, 2020 | ||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||
Foreign currency | $ | ( | $ | ( | $ | |||||||||||||||
Cross-currency swaps | ( | ( | ||||||||||||||||||
Foreign currency-denominated debt | ( | |||||||||||||||||||
Total | $ | ( | $ | ( | $ |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||
(in millions) | Net sales | Cost of sales | Selling, general and administrative expenses | Other comprehensive income (loss) | ||||||||||||||||||||||
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | ||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships: | ||||||||||||||||||||||||||
Foreign currency: | ||||||||||||||||||||||||||
Gain (loss) recognized in other comprehensive income | $ | |||||||||||||||||||||||||
Gain (loss) reclassified from AOCI to income | $ | $ | $ | |||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||
(in millions) | Net sales | Cost of sales | Selling, general and administrative expenses | Other comprehensive income (loss) | ||||||||||||||||||||||
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded | $ | ( | ||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships: | ||||||||||||||||||||||||||
Foreign currency: | ||||||||||||||||||||||||||
Gain (loss) recognized in other comprehensive income | $ | ( | ||||||||||||||||||||||||
Gain (loss) reclassified from AOCI to income | $ | $ | $ | |||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||
(in millions) | Net sales | Cost of sales | Selling, general and administrative expenses | Other comprehensive income (loss) | ||||||||||||||||||||||
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | ||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships: | ||||||||||||||||||||||||||
Foreign currency: | ||||||||||||||||||||||||||
Gain (loss) recognized in other comprehensive income | $ | |||||||||||||||||||||||||
Gain (loss) reclassified from AOCI to income | $ | $ | $ | ( | ||||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||
(in millions) | Net sales | Cost of sales | Selling, general and administrative expenses | Other comprehensive income (loss) | ||||||||||||||||||||||
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | ( | |||||||||||||||||||||
Gain (loss) on cash flow hedging relationships: | ||||||||||||||||||||||||||
Foreign currency: | ||||||||||||||||||||||||||
Gain (loss) recognized in other comprehensive income | $ | ( | ||||||||||||||||||||||||
Gain (loss) reclassified from AOCI to income | $ | $ | $ | ( | ||||||||||||||||||||||
(in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
Net investment hedges | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Foreign currency | $ | $ | $ | ( | $ | |||||||||||||||||||||
Cross-currency swaps | $ | $ | ( | $ | $ | |||||||||||||||||||||
Foreign currency-denominated debt | $ | $ | ( | $ | $ | ( |
(in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
Net investment hedges | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Cross-currency swaps | $ | $ | $ | $ |
(in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
Contract Type | Location | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Foreign Currency | Selling, general and administrative expenses | $ | $ | $ | $ | |||||||||||||||||||||||||||
Pension benefits | Other postretirement employee benefits | |||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | US | Non-US | US | Non-US | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service credit | ( | |||||||||||||||||||||||||||||||||||||
Amortization of unrecognized loss | ||||||||||||||||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | ( | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Pension benefits | Other postretirement employee benefits | |||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | US | Non-US | US | Non-US | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service credit | ( | ( | ||||||||||||||||||||||||||||||||||||
Amortization of unrecognized loss | ||||||||||||||||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | ( | $ | ( | $ | ( | $ | $ | $ |
BorgWarner Inc. stockholders' equity | |||||||||||||||||||||||||||||||||||
(in millions) | Issued common stock | Capital in excess of par value | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interests | |||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net issuance for executive stock plan | — | — | — | — | |||||||||||||||||||||||||||||||
Net issuance of restricted stock | — | — | — | — | |||||||||||||||||||||||||||||||
Acquisition of AKASOL | — | — | — | — | — | ||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | — | — | — | — | — | ( | |||||||||||||||||||||||||||||
Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | ( | $ | $ | ( | $ |
BorgWarner Inc. stockholders' equity | |||||||||||||||||||||||||||||||||||
(in millions) | Issued common stock | Capital in excess of par value | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interests | |||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net issuance of restricted stock | — | — | — | — | |||||||||||||||||||||||||||||||
Net earnings | — | — | — | ( | — | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | ( | $ | $ | ( | $ |
BorgWarner Inc. stockholders' equity | |||||||||||||||||||||||||||||||||||
(in millions) | Issued common stock | Capital in excess of par value | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interests | |||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net issuance for executive stock plan | — | — | — | ||||||||||||||||||||||||||||||||
Net issuance of restricted stock | — | ( | — | — | |||||||||||||||||||||||||||||||
Acquisition of AKASOL | — | — | — | — | — | ||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | — | — | — | — | — | ( | |||||||||||||||||||||||||||||
Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | ( | $ | $ | ( | $ |
BorgWarner Inc. stockholders' equity | |||||||||||||||||||||||||||||||||||
(in millions) | Issued common stock | Capital in excess of par value | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interests | |||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net issuance for executive stock plan | — | ( | — | — | |||||||||||||||||||||||||||||||
Net issuance of restricted stock | — | ( | — | — | |||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | ( | $ | $ | ( | $ |
(in millions) | Foreign currency translation adjustments | Hedge instruments | Defined benefit retirement plans | Total | |||||||||||||||||||
Beginning balance, March 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Comprehensive (loss) income before reclassifications | ( | ||||||||||||||||||||||
Income taxes associated with comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||
Reclassification from accumulated other comprehensive loss | |||||||||||||||||||||||
Income taxes reclassified into net earnings | ( | ( | |||||||||||||||||||||
Ending balance, June 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
(in millions) | Foreign currency translation adjustments | Hedge instruments | Defined benefit retirement plans | Total | |||||||||||||||||||
Beginning balance, March 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Comprehensive (loss) income before reclassifications | |||||||||||||||||||||||
Income taxes associated with comprehensive (loss) income before reclassifications | |||||||||||||||||||||||
Reclassification from accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||
Income taxes reclassified into net earnings | |||||||||||||||||||||||
Ending balance, June 30, 2020 | $ | ( | $ | ( | $ | ( | $ | ( |
(in millions) | Foreign currency translation adjustments | Hedge instruments | Defined benefit retirement plans | Total | |||||||||||||||||||
Balance, December 31, 2020 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Comprehensive (loss) income before reclassifications | ( | ( | ( | ||||||||||||||||||||
Income taxes associated with comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||
Reclassification from accumulated other comprehensive loss | |||||||||||||||||||||||
Income taxes reclassified into net earnings | ( | ( | |||||||||||||||||||||
Ending balance, June 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
(in millions) | Foreign currency translation adjustments | Hedge instruments | Defined benefit retirement plans | Total | |||||||||||||||||||
Balance, December 31, 2019 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Comprehensive (loss) income before reclassifications | ( | ( | ( | ||||||||||||||||||||
Income taxes associated with comprehensive (loss) income before reclassifications | ( | ( | ( | ||||||||||||||||||||
Reclassification from accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||
Income taxes reclassified into net earnings | |||||||||||||||||||||||
Ending balance, June 30, 2020 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Net earnings (loss) attributable to BorgWarner Inc. | $ | $ | ( | $ | $ | ||||||||||||||||||
Weighted average shares of common stock outstanding | |||||||||||||||||||||||
Basic earnings (loss) per share of common stock | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Net earnings (loss) attributable to BorgWarner Inc. | $ | $ | ( | $ | $ | ||||||||||||||||||
Weighted average shares of common stock outstanding | |||||||||||||||||||||||
Effect of stock-based compensation* | |||||||||||||||||||||||
Weighted average shares of common stock outstanding including dilutive shares | |||||||||||||||||||||||
Diluted earnings (loss) per share of common stock | $ | $ | ( | $ | $ | ||||||||||||||||||
Anti-dilutive stock-based awards excluded from the calculation of diluted earnings per share: |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Air Management | $ | $ | $ | $ | |||||||||||||||||||
e-Propulsion & Drivetrain | |||||||||||||||||||||||
Fuel Injection | |||||||||||||||||||||||
Aftermarket | |||||||||||||||||||||||
Inter-segment eliminations | ( | ( | ( | ( | |||||||||||||||||||
Net sales | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Air Management | $ | $ | $ | $ | |||||||||||||||||||
e-Propulsion & Drivetrain | |||||||||||||||||||||||
Fuel Injection | |||||||||||||||||||||||
Aftermarket | |||||||||||||||||||||||
Segment Adjusted EBIT | |||||||||||||||||||||||
Corporate, including stock-based compensation | |||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Merger, acquisition and divestiture expense | |||||||||||||||||||||||
Loss on sale | |||||||||||||||||||||||
Asset impairments | |||||||||||||||||||||||
Net gain on insurance recovery for property damage | ( | ( | ( | ||||||||||||||||||||
Equity in affiliates’ earnings, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Unrealized loss on equity securities | |||||||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other postretirement income | ( | ( | ( | ( | |||||||||||||||||||
Earnings (loss) before income taxes and noncontrolling interest | ( | ||||||||||||||||||||||
Provision (benefit) for income taxes | ( | ||||||||||||||||||||||
Net earnings (loss) | ( | $ | $ | ||||||||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | |||||||||||||||||||||||
Net earnings (loss) attributable to BorgWarner Inc. | $ | $ | ( | $ | $ |
Six Months Ended June 30, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
OPERATING | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||
Depreciation and amortization | |||||||||||
Restructuring expense, net of cash paid | |||||||||||
Stock-based compensation expense | |||||||||||
Loss on sale | |||||||||||
Loss on debt extinguishment | |||||||||||
Asset impairments | |||||||||||
Deferred income tax benefit | ( | ( | |||||||||
Unrealized loss on equity securities | |||||||||||
Gain on insurance recovery received for property damages | ( | ( | |||||||||
Other non-cash adjustments | ( | ( | |||||||||
Net earnings adjustments to reconcile to net cash flows from operations | |||||||||||
Retirement plan contributions | ( | ( | |||||||||
Changes in assets and liabilities, excluding effects of acquisitions, divestitures and foreign currency translation adjustments: | |||||||||||
Receivables | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepayments and other current assets | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ||||||||||
Prepaid taxes and income taxes payable | ( | ||||||||||
Other assets and liabilities | ( | ||||||||||
Net cash provided by operating activities | $ | $ | |||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refunds | $ | $ | |||||||||
Balance as of: | |||||||||||
Non-cash investing transactions: | June 30, 2021 | December 31, 2020 | |||||||||
Period end accounts payable related to property, plant and equipment purchases | $ | $ |
Three Months Ended June 30, | |||||||||||||||||||||||
(in millions, except per share data) | 2021 | 2020 | |||||||||||||||||||||
Net sales | % of net sales | % of net sales | |||||||||||||||||||||
Air Management | $ | 1,854 | 49.3 | % | $ | 826 | 57.9 | % | |||||||||||||||
e-Propulsion & Drivetrain | 1,337 | 35.6 | 607 | 42.6 | |||||||||||||||||||
Fuel Injection | 480 | 12.8 | — | — | |||||||||||||||||||
Aftermarket | 226 | 6.0 | — | — | |||||||||||||||||||
Inter-segment eliminations | (139) | (3.7) | (7) | (0.5) | |||||||||||||||||||
Total net sales | 3,758 | 100.0 | 1,426 | 100.0 | |||||||||||||||||||
Cost of sales | 2,996 | 79.7 | 1,252 | 87.8 | |||||||||||||||||||
Gross profit | 762 | 20.3 | 174 | 12.2 | |||||||||||||||||||
Selling, general and administrative expenses - R&D, net | 166 | 4.4 | 88 | 6.2 | |||||||||||||||||||
Selling, general and administrative expenses - Other | 198 | 5.3 | 96 | 6.7 | |||||||||||||||||||
Other operating expense - Restructuring expense | 62 | 1.6 | 37 | 2.6 | |||||||||||||||||||
Other operating expense, net - Other | 19 | 0.5 | 31 | 2.2 | |||||||||||||||||||
Operating income (loss) | 317 | 8.4 | (78) | (5.5) | |||||||||||||||||||
Equity in affiliates’ earnings, net of tax | (16) | (0.4) | (2) | (0.1) | |||||||||||||||||||
Unrealized loss on equity securities | 4 | 0.1 | — | — | |||||||||||||||||||
Interest income | (3) | (0.1) | (3) | (0.2) | |||||||||||||||||||
Interest expense | 42 | 1.1 | 18 | 1.3 | |||||||||||||||||||
Other postretirement income | (12) | (0.3) | (1) | (0.1) | |||||||||||||||||||
Earnings (loss) before income taxes and noncontrolling interest | 302 | 8.0 | (90) | (6.3) | |||||||||||||||||||
Provision (benefit) for income taxes | 28 | 0.7 | (6) | (0.4) | |||||||||||||||||||
Net earnings (loss) | 274 | 7.3 | (84) | (5.9) | |||||||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 27 | 0.7 | 14 | 1.0 | |||||||||||||||||||
Net earnings (loss) attributable to BorgWarner Inc. | $ | 247 | 6.6 | % | $ | (98) | (6.9) | % | |||||||||||||||
Earnings (loss) per share attributable to BorgWarner Inc. — diluted | $ | 1.03 | $ | (0.47) |
Six Months Ended June 30, | |||||||||||||||||||||||
(in millions, except per share data) | 2021 | 2020 | |||||||||||||||||||||
Net sales | % of net sales | % of net sales | |||||||||||||||||||||
Air Management | $ | 3,865 | 49.8 | % | $ | 2,260 | 61.0 | % | |||||||||||||||
e-Propulsion & Drivetrain | 2,803 | 36.1 | 1,467 | 39.6 | |||||||||||||||||||
Fuel Injection | 955 | 12.3 | — | — | |||||||||||||||||||
Aftermarket | 423 | 5.4 | — | — | |||||||||||||||||||
Inter-segment eliminations | (279) | (3.6) | (22) | (0.6) | |||||||||||||||||||
Total net sales | 7,767 | 100.0 | 3,705 | 100.0 | |||||||||||||||||||
Cost of sales | 6,187 | 79.7 | 3,084 | 83.2 | |||||||||||||||||||
Gross profit | 1,580 | 20.3 | 621 | 16.8 | |||||||||||||||||||
Selling, general and administrative expenses - R&D, net | 349 | 4.5 | 197 | 5.3 | |||||||||||||||||||
Selling, general and administrative expenses - Other | 392 | 5.0 | 200 | 5.4 | |||||||||||||||||||
Other operating expense - Restructuring expense | 92 | 1.2 | 52 | 1.4 | |||||||||||||||||||
Other operating expense, net - Other | 27 | 0.3 | 52 | 1.4 | |||||||||||||||||||
Operating income | 720 | 9.3 | 120 | 3.2 | |||||||||||||||||||
Equity in affiliates’ earnings, net of tax | (28) | (0.4) | (7) | (0.2) | |||||||||||||||||||
Unrealized loss on equity securities | 276 | 3.6 | 9 | 0.2 | |||||||||||||||||||
Interest income | (6) | (0.1) | (5) | (0.1) | |||||||||||||||||||
Interest expense | 63 | 0.8 | 30 | 0.8 | |||||||||||||||||||
Other postretirement income | (23) | (0.3) | (3) | (0.1) | |||||||||||||||||||
Earnings before income taxes and noncontrolling interest | 438 | 5.6 | 96 | 2.6 | |||||||||||||||||||
Provision for income taxes | 70 | 0.9 | 43 | 1.2 | |||||||||||||||||||
Net earnings | 368 | 4.7 | 53 | 1.4 | |||||||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 56 | 0.7 | 22 | 0.6 | |||||||||||||||||||
Net earnings attributable to BorgWarner Inc. | $ | 312 | 4.0 | % | $ | 31 | 0.8 | % | |||||||||||||||
Earnings per share attributable to BorgWarner Inc. — diluted | $ | 1.30 | $ | 0.15 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Non-comparable items: | |||||||||||||||||||||||
Restructuring expense | $ | (0.19) | $ | (0.15) | $ | (0.31) | $ | (0.21) | |||||||||||||||
Merger, acquisition and divestiture expense1 | (0.06) | (0.10) | (0.10) | (0.20) | |||||||||||||||||||
Loss on sale2 | (0.03) | — | (0.03) | — | |||||||||||||||||||
Asset impairments3 | — | (0.08) | — | (0.08) | |||||||||||||||||||
Net gain on insurance proceeds for property damage4 | — | 0.02 | — | 0.02 | |||||||||||||||||||
Unrealized loss on equity securities5 | (0.01) | — | (0.88) | (0.04) | |||||||||||||||||||
Loss on debt extinguishment6 | (0.06) | — | (0.06) | — | |||||||||||||||||||
Delayed draw term loan cancellation | — | (0.01) | — | (0.01) | |||||||||||||||||||
Tax adjustments7 | 0.30 | (0.01) | 0.38 | 0.05 | |||||||||||||||||||
Total impact of non-comparable items per share - diluted | $ | (0.05) | $ | (0.33) | $ | (1.00) | $ | (0.47) |
1 | During the three months ended June 30, 2021 and 2020, the Company recorded merger, acquisition and divestiture expense of $15 million and $21 million, respectively. During the six months ended June 30, 2021 and 2020, the Company recorded merger, acquisition and divestiture expense of $28 million and $42 million, respectively. The expense for 2021 primarily related to professional fees for integration and other support associated with the Company’s acquisition of Delphi Technologies completed on October 1, 2020 and professional fees associated with the acquisition of AKASOL completed on June 4, 2021. The expense for 2020 primarily related to professional fees associated with the Company’s acquisition of Delphi Technologies. | ||||
2 | During the three months ended June 30, 2021, the Company recorded a loss of $7 million in connection with the sale of an e-Propulsion & Drivetrain technical center in Europe. | ||||
3 | During the three and six months ended June 30, 2020, the Company recorded asset impairment costs of $9 million in the Air Management segment and $8 million in the e-Propulsion & Drivetrain segment, related to the write down of property, plant and equipment associated with the announced closures of two European facilities. | ||||
4 | During the three and six months ended June 30, 2020, the Company recorded a $6 million net gain from insurance recovery proceeds which primarily represents the amount received for replacement cost in excess of carrying value for losses sustained from a tornado that damaged the Company’s plant in Seneca, South Carolina. | ||||
5 | Unrealized loss on equity securities represents the net unrealized loss recognized related to the Company’s equity securities in Romeo Power, Inc. Refer to Note 3, “Acquisitions,” to the Condensed Consolidated Financial Statements in Item 1 of this report for more information. | ||||
6 | During the three and six months ended June 30, 2021, the Company recorded a $20 million loss on debt extinguishment related to the early repayment of its €500 million 1.800% senior notes. | ||||
7 | The Company’s provision for income taxes for the three and six months ended June 30, 2021, includes reductions to tax expense of $75 million and $99 million, respectively. During the three and six months ended June 30, 2021, the primary items included a $55 million tax benefit related to the lapse of the statute of limitations in a non-US jurisdiction for a tax holiday matter and a discrete tax benefit of $20 million related to an increase in the UK tax rate. The six months ended June 30, 2021, also included a discrete tax benefit of $24 million primarily related to changes to certain withholding rates applied to unremitted earnings. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | % margin | 2020 | % margin | 2021 | % margin | 2020 | % margin | |||||||||||||||||||||||||||||||||||||||
Air Management | $ | 277 | 14.9 | % | $ | 28 | 3.4 | % | $ | 599 | 15.5 | % | $ | 236 | 10.4 | % | |||||||||||||||||||||||||||||||
e-Propulsion & Drivetrain | 132 | 9.9 | % | 1 | 0.2 | % | 269 | 9.6 | % | 64 | 4.4 | % | |||||||||||||||||||||||||||||||||||
Fuel Injection | 38 | 7.9 | % | — | n/a | 71 | 7.4 | % | — | n/a | |||||||||||||||||||||||||||||||||||||
Aftermarket | 32 | 14.2 | % | — | n/a | 53 | 12.5 | % | — | n/a | |||||||||||||||||||||||||||||||||||||
Segment Adjusted EBIT | $ | 479 | $ | 29 | $ | 992 | $ | 300 |
Six Months Ended June 30, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
OPERATING | |||||||||||
Net earnings | $ | 368 | $ | 53 | |||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||
Depreciation and amortization | 390 | 224 | |||||||||
Restructuring expense, net of cash paid | 59 | 45 | |||||||||
Stock-based compensation expense | 27 | 16 | |||||||||
Loss on sale | 7 | — | |||||||||
Loss on debt extinguishment | 20 | — | |||||||||
Asset impairments | — | 17 | |||||||||
Deferred income tax benefit | (99) | (24) | |||||||||
Unrealized loss on equity securities | 276 | 9 | |||||||||
Gain on insurance recovery received for property damages | (2) | (9) | |||||||||
Other non-cash adjustments | (12) | (8) | |||||||||
Net earnings adjustments to reconcile to net cash flows from operations | 1,034 | 323 | |||||||||
Retirement plan contributions | (12) | (10) | |||||||||
Changes in assets and liabilities, excluding effects of acquisitions, divestitures and foreign currency translation adjustments: | |||||||||||
Receivables | (158) | 362 | |||||||||
Inventories | (260) | (40) | |||||||||
Prepayments and other current assets | (21) | (8) | |||||||||
Accounts payable and accrued expenses | 41 | (284) | |||||||||
Prepaid taxes and income taxes payable | 30 | (23) | |||||||||
Other assets and liabilities | (32) | 7 | |||||||||
Net cash provided by operating activities | $ | 622 | $ | 327 |
Six Months Ended June 30, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
INVESTING | |||||||||||
Capital expenditures, including tooling outlays | $ | (342) | $ | (171) | |||||||
Capital expenditures for damage to property, plant and equipment | (2) | — | |||||||||
Insurance proceeds received for damage to property, plant and equipment | — | 22 | |||||||||
Payments for businesses acquired, net of cash and restricted cash acquired | (759) | (2) | |||||||||
Proceeds from settlement of net investment hedges, net | 11 | 6 | |||||||||
Payments for investments in equity securities and other, net | (7) | (2) | |||||||||
Net cash used in investing activities | $ | (1,099) | $ | (147) |
Six Months Ended June 30, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
FINANCING | |||||||||||
Net decrease in notes payable | $ | (6) | $ | — | |||||||
Additions to debt | 1,229 | 1,143 | |||||||||
Payments for debt issuance costs | (10) | (10) | |||||||||
Repayments of debt, including current portion | (671) | (35) | |||||||||
Payments for stock-based compensation items | (14) | (13) | |||||||||
Purchase of noncontrolling interest | (33) | — | |||||||||
Dividends paid to BorgWarner stockholders | (81) | (70) | |||||||||
Dividends paid to noncontrolling stockholders | (5) | (16) | |||||||||
Net cash provided by financing activities | $ | 409 | $ | 999 |
(in millions, except for percentages) | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||||||||||||||||
Chinese renminbi | 2 | % | $ | 32 | 1 | % | $ | 24 | |||||||||||||||
Brazilian real | 12 | % | $ | 23 | 5 | % | $ | 9 | |||||||||||||||
Euro | 1 | % | $ | 14 | (3) | % | $ | (20) | |||||||||||||||
Korean won | — | % | $ | (7) | (5) | % | $ | (34) |
(in millions, except for percentages) | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | |||||||||||||||||||||
Euro | (2) | % | $ | 9 | — | % | $ | 14 | |||||||||||||||
Korean won | (2) | % | $ | 7 | 4 | % | $ | (14) | |||||||||||||||
Chinese renminbi | — | % | $ | 2 | 1 | % | $ | (17) | |||||||||||||||
British pound | — | % | $ | (2) | 6 | % | $ | (17) | |||||||||||||||
Brazilian real | 5 | % | $ | (3) | 26 | % | $ | (22) |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | Total number of shares purchased | Average price per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under plans or programs (in millions) | ||||||||||||||||||||||
April 1, 2021 - April 30, 2021 | ||||||||||||||||||||||||||
Common Stock Repurchase Program | — | $ | — | — | $ | 784 | ||||||||||||||||||||
Employee transactions | 12,502 | $ | 46.45 | — | ||||||||||||||||||||||
May 1, 2021 - May 31, 2021 | ||||||||||||||||||||||||||
Common Stock Repurchase Program | — | $ | — | — | $ | 784 | ||||||||||||||||||||
Employee transactions | 5,673 | $ | 51.39 | — | ||||||||||||||||||||||
June 1, 2021 - June 30, 2021 | ||||||||||||||||||||||||||
Common Stock Repurchase Program | — | $ | — | — | $ | 784 | ||||||||||||||||||||
Employee transactions | 3,714 | $ | 51.00 | — |
Exhibit 1.1 | |||||||||||
Exhibit 4.2 | |||||||||||
Exhibit 31.1 | |||||||||||
Exhibit 31.2 | |||||||||||
Exhibit 32.1 | |||||||||||
Exhibit 101.INS | Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.* | ||||||||||
Exhibit 101.SCH | Inline XBRL Taxonomy Extension Schema Document.* | ||||||||||
Exhibit 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document.* | ||||||||||
Exhibit 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document.* | ||||||||||
Exhibit 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document.* | ||||||||||
Exhibit 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document.* | ||||||||||
Exhibit 104.1 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).* |
BorgWarner Inc. | ||||||||||||||
(Registrant) | ||||||||||||||
By | /s/ Daniel R. Etue | |||||||||||||
(Signature) | ||||||||||||||
Daniel R. Etue | ||||||||||||||
Vice President and Controller | ||||||||||||||
(Principal Accounting Officer) | ||||||||||||||
Date: August 4, 2021 | |||||
/s/ Frederic B. Lissalde | |||||
Frederic B. Lissalde | |||||
President and Chief Executive Officer |
Date: August 4, 2021 | |||||
/s/ Kevin A. Nowlan | |||||
Kevin A. Nowlan | |||||
Executive Vice President, Chief Financial Officer | |||||
Dated: August 4, 2021 | |||||
/s/ Frederic B. Lissalde | |||||
Frederic B. Lissalde | |||||
President and Chief Executive Officer | |||||
/s/ Kevin A. Nowlan | |||||
Kevin A. Nowlan | |||||
Executive Vice President, Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|||
Statement of Comprehensive Income [Abstract] | ||||||
Net earnings (loss) attributable to BorgWarner Inc. | $ 247 | $ (98) | $ 312 | $ 31 | ||
Other comprehensive income (loss) | ||||||
Foreign currency translation adjustments | [1] | 57 | 14 | (30) | (60) | |
Hedge instruments | [1] | 4 | 1 | (2) | (1) | |
Defined benefit postretirement plans | [1] | 2 | (1) | 10 | 1 | |
Total other comprehensive income (loss) attributable to BorgWarner Inc. | 63 | 14 | (22) | (60) | ||
Comprehensive (loss) income attributable to BorgWarner Inc. | [1] | 310 | (84) | 290 | (29) | |
Net earnings attributable to noncontrolling interest, net of tax | 27 | 14 | 56 | 22 | ||
Other comprehensive loss attributable to the noncontrolling interest | [1] | 0 | 0 | (5) | (3) | |
Comprehensive income (loss) | $ 337 | $ (70) | $ 341 | $ (10) | ||
|
BASIS OF PRESENTATION |
6 Months Ended |
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Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements of BorgWarner Inc. and Consolidated Subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flow activity required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair statement of results have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet as of December 31, 2020 was derived from the audited financial statements as of that date. For further information, refer to the Consolidated Financial Statements and Footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and accompanying notes, as well as the amounts of revenues and expenses reported during the periods covered by those financial statements and accompanying notes. Actual results could differ from these estimates. COVID-19 Pandemic Update Throughout 2020, COVID-19 materially impacted the Company’s business and results of operations. During the first quarter of 2020, the impact of COVID-19 was initially experienced primarily by operations in China. Following the declaration of COVID-19 as a global pandemic on March 11, 2020, government authorities around the world began to impose shelter-in-place orders and other restrictions. As a result, many OEMs began suspending manufacturing operations, particularly in North America and Europe. This led to various temporary closures of, or reduced operations at, the Company’s manufacturing facilities, late in the first quarter of 2020 and throughout the second quarter of 2020. During the second half of 2020, as global management of COVID-19 evolved and government restrictions were removed or lessened, production levels improved, and substantially all of the Company’s production facilities resumed closer to normal operations by the end of the third quarter of 2020. It is possible a resurgence of the COVID-19 pandemic could result in adverse impacts in the future. Management cannot reasonably estimate the full impact the COVID-19 pandemic could have on the Company’s financial condition, results of operations or cash flows in the future.
|
NEW ACCOUNTING PRONOUNCEMENTS |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS In January 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-1, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” It clarifies the interaction among the accounting for equity securities, equity method investments, and certain derivative instruments. Specifically, for the purposes of applying the ASC Topic 321 measurement alternative, a company should consider observable transactions immediately before applying or upon discontinuing the equity method. Additionally, when determining the accounting for certain forward contracts and purchased options entered into to purchase securities, a company should not consider if the underlying securities would be accounted for under the equity method (ASC Topic 323) or fair value option (ASC Topic 825). This guidance was effective for interim and annual periods beginning after December 15, 2020. The Company adopted this guidance as of January 1, 2021, and there was no impact on its Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” It removes certain exceptions to the general principles in ASC Topic 740 and improves consistent application of and simplifies GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This guidance was effective for interim and annual reporting periods beginning after December 15, 2020. The Company adopted this guidance as of January 1, 2021, and the impact on its Consolidated Financial Statements was immaterial. In August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20).” It (i) requires the removal of disclosures that are no longer considered cost beneficial; (ii) clarifies specific requirements of certain disclosures; and (iii) adds new disclosure requirements, including the weighted average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and reasons for significant gains and losses related to changes in the benefit obligation. This guidance was effective for annual periods beginning after December 15, 2020. The Company adopted this guidance as of January 1, 2021, and there was no impact on these Condensed Consolidated Financial Statements; however, the Company will include the annual disclosures as required in its Annual Report on Form 10-K.
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ACQUISITIONS |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS AKASOL AG On June 4, 2021, the Company completed its voluntary public takeover offer for shares of AKASOL AG (“AKASOL”), resulting in ownership of 89% of AKASOL’s outstanding shares. The Company paid approximately €648 million ($788 million) to settle the offer from current cash balances, which included proceeds received from its previously announced public offering of 1.00% Senior Notes due 2031 completed on May 19, 2021. Refer to Note 13, “Notes Payable And Debt,” to the Condensed Consolidated Financial Statements for more information. Following the settlement of the offer, AKASOL became a consolidated majority-owned subsidiary of the Company. Subsequent to the completion of the voluntary public takeover offer, and through June 30, 2021, the Company purchased additional shares of AKASOL for €28 million ($33 million) increasing its ownership to 93% as of that date. Upon closing, the Company also consolidated approximately €64 million ($77 million) of gross debt of AKASOL. The acquisition further strengthens BorgWarner’s commercial vehicle and industrial electrification capabilities, which positions the Company to capitalize on what it believes to be a fast-growing battery pack market. The purchase price was allocated on a provisional basis as of June 4, 2021. Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s preliminary estimates, available information, and supportable assumptions that management considered reasonable. Certain estimated values for the acquisition, including goodwill, tangible and intangible assets and deferred taxes are not yet finalized, and the provisional purchase price allocations are subject to change as the Company completes its analysis of the fair value at the date of acquisition. The final valuation of assets acquired and liabilities assumed may be materially different from the estimated values shown below. The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of June 4, 2021, the acquisition date:
Any excess of the purchase price over the estimated fair value of net assets was recognized as goodwill. At the acquisition date, goodwill of $707 million was recorded within the Company’s Air Management segment. The goodwill consists of the Company’s expected future economic benefits that will arise from acquiring this business, which is established in making next-generation products for electric vehicles and the potential development and deployment of future technologies, across a global customer base, in this market and across adjacent industries. The goodwill is not expected to be deductible for tax purposes. In connection with the acquisition, the Company preliminarily recorded $130 million for intangible assets, primarily for developed technology and customer relationships. Various valuation techniques were used to determine the provisional fair value of intangible assets, with the primary techniques being forms of the income approach, specifically the relief-from-royalty and multi-period excess earnings valuation methods. Under these valuation approaches, the Company is required to make estimates and assumptions from a market participant perspective and include revenue growth rates, estimated earnings, royalty rates, obsolescence factors, contributory asset charges, customer attrition and discount rates. Management used a third-party valuation firm to assist in the determination of the provisional purchase accounting fair values; however, management ultimately oversees the third-party valuation firm to ensure that the transaction-specific assumptions are appropriate for the Company. The impact of the AKASOL acquisition on net sales and net earnings was immaterial for the three and six months ended June 30, 2021. Due to its insignificant size relative to the Company, supplemental pro forma financial information of the combined entity for the current and prior reporting period is not provided. Delphi Technologies PLC On October 1, 2020, the Company completed its acquisition of 100% of the outstanding ordinary shares of Delphi Technologies PLC (“Delphi Technologies”) from the shareholders of Delphi Technologies pursuant to the terms of the Transaction Agreement, dated January 28, 2020, as amended on May 6, 2020, by and between the Company and Delphi Technologies (the “Transaction Agreement”). Pursuant to the terms of the Transaction Agreement, the Company issued, in exchange for each Delphi Technologies share, 0.4307 of a share of common stock of the Company, par value $0.01 per share and cash in lieu of any fractional share. In the aggregate, the Company delivered consideration of approximately $2.4 billion. The acquisition strengthens the Company’s electronics and power electronics products, capabilities and scale, positions the Company for greater growth as electrified propulsion systems gain momentum and enhances key combustion, commercial vehicle and aftermarket product offerings. Upon closing, the Company also assumed approximately $800 million (par value) in aggregate principal amount of Delphi Technologies’ outstanding 5.000% Senior Notes due 2025 (the “DT Notes”). On October 5, 2020, the Company completed its offer to exchange new BorgWarner notes for the DT Notes. Approximately $776 million in aggregate principal amount of outstanding DT Notes, representing 97% of the $800 million total outstanding principal amount of the DT Notes, were validly exchanged and cancelled for new BorgWarner notes. Following such cancellation, approximately $24 million in aggregate principal amount of the DT Notes remain outstanding. Since the majority of the DT Notes were exchanged, the Company was able to eliminate substantially all of the restrictive covenants and events of default not related to payment on the $800 million in outstanding senior notes of the Company. The following table summarizes the purchase price for Delphi Technologies:
The purchase price was allocated on a preliminary basis as of October 1, 2020. Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, available information, and supportable assumptions that management considered reasonable. The Company is in the process of finalizing all purchase accounting adjustments related to the Delphi Technologies acquisition. Certain estimated values for the acquisition, including goodwill, intangible assets and deferred taxes are not yet finalized, and the preliminary purchase price allocations are subject to change as the Company completes its analysis of the fair value at the date of acquisition. The final valuation of assets acquired and liabilities assumed may be materially different from the estimated values shown below. The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments:
Any excess of the purchase price over the estimated fair value of net assets was recognized as goodwill. Goodwill of $733 million, including the impact of measurement period adjustments, was allocated across the Company’s four segments, as noted in the table below. The goodwill consists of the Company’s expected future economic benefits that will arise from expected future product sales and operational synergies from combining Delphi Technologies with its existing business and is not deductible for tax purposes.
The valuation of intangible assets was determined using an income approach methodology. The fair values of the customer relationship intangible assets were estimated using the multi-period excess earnings method. Assumptions used in these calculations were considered from a market participant perspective and include revenue growth rates, estimated earnings, contributory asset charges, customer attrition and discount rates. The fair values of the developed technology and trade name intangible assets were estimated utilizing the relief from royalty method, which calculates the cost savings associated with owning rather than licensing the assets. Assumed royalty rates are applied to projected revenue for the remaining useful lives of the assets to estimate the royalty savings. Assumptions used in the determination of the fair value of the developed technology included revenue growth rates, royalty rates, obsolescence factors and discount rates. Assumptions used in the determination of the fair value of the trade name included the revenue growth rates, the royalty rate and discount rate. The following table summarizes the other intangible assets acquired:
Generally accepted valuation practice indicates that assets and liabilities may be valued using a range of methodologies. The property, plant and equipment and inventory acquired were valued using a combination of cost and market approaches. Goodwill, identifiable intangible assets, noncontrolling interests and the equity method investment were valued using the income approach. Management used a third-party valuation firm to assist in the determination of the preliminary purchase accounting fair values; however, management ultimately oversees the third-party valuation firm to ensure that the transaction-specific assumptions are appropriate for the Company. On a pro forma basis, the combined net sales of the Company and Delphi Technologies for the three and six months ended June 30, 2020 were $2,054 million and $5,278 million, respectively. Romeo Power, Inc. In May 2019, the Company invested $50 million in exchange for a 20% equity interest in Romeo Systems, Inc., now known as Romeo Power, Inc., (“Romeo”) a technology-leading battery module and pack supplier that was then privately held. The Company accounted for this investment in Series A-1 Preferred Stock of Romeo under the measurement alternative in ASC Topic 321, “Investments - Equity Securities” for equity securities without a readily determinable fair value. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In September 2019, the Company and Romeo contributed total equity of $10 million and formed a new joint venture, BorgWarner Romeo Power LLC (“Romeo JV”), in which the Company owns a 60% interest. Romeo JV is a variable interest entity focusing on producing battery module and pack technology. The Company is the primary beneficiary of Romeo JV and consolidates Romeo JV in its consolidated financial statements. On December 29, 2020, through the business combination of Romeo Systems, Inc. and special purpose acquisition company RMG Acquisition Corporation, a new entity, Romeo Power, Inc., became a publicly listed company. The Company’s ownership in Romeo was reduced to 14%, and the investment no longer qualified for the measurement alternative under ASC Topic 321 as the investment now has a readily determinable fair value. Therefore, the investment is recorded at fair value on an ongoing basis with changes in fair value being recognized in Unrealized loss on equity securities in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2021, the Company recorded a loss of $4 million and $276 million, respectively, to adjust the carrying value of the Company’s investment to fair value. As of June 30, 2021, the investment’s fair value was $156 million, which is reflected in Investments and other long-term receivables in the Company’s Condensed Consolidated Balance Sheets. During the six months ended June 30, 2020, after completing a qualitative assessment which indicated the Company’s equity securities in Romeo may have been impaired, the Company recorded a $9 million impairment charge to reflect this investment at its estimated fair value of $41 million. The estimated fair value of Romeo was determined using unobservable inputs including quantitative information from lower valuations in recently completed or proposed financings and the liquidation preferences included in the Romeo stock agreements. These unobservable inputs are considered Level 3.
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REVENUE FROM CONTRACTS WITH CUSTOMERS |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company manufactures and sells products, primarily to OEMs of light vehicles and, to a lesser extent, to other OEMs of commercial vehicles and off-highway vehicles, to certain Tier One vehicle systems suppliers and into the aftermarket. The Company’s payment terms are based on customary business practices and vary by customer type and products offered. We have evaluated the terms of our arrangements and determined that they do not contain significant financing components. Generally, revenue is recognized upon shipment or delivery; however, a limited number of the Company’s customer arrangements for its highly customized products with no alternative use provide the Company with the right to payment during the production process. As a result, for these limited arrangements, revenue is recognized as goods are produced and control transfers to the customer using the input cost-to-cost method. The Company recorded a contract asset of $22 million and $16 million at June 30, 2021 and December 31, 2020, respectively, for these arrangements. These amounts are reflected in Prepayments and other current assets in the Company’s Condensed Consolidated Balance Sheets. In limited instances, certain customers have provided payments in advance of receiving related products, typically at the onset of an arrangement prior to the beginning of production. These contract liabilities are reflected as Other current liabilities and Other non-current liabilities in the Condensed Consolidated Balance Sheets and were $16 million and $1 million at June 30, 2021 and $22 million and $6 million at December 31, 2020, respectively. These amounts are reflected as revenue over the term of the arrangement (typically 3 to 7 years) as the underlying products are shipped and represent the Company’s remaining performance obligations as of the end of the period. Sales to certain aftermarket customers provide to the customers a right of return. The Company recognizes an estimated return asset (and adjusts for cost of sales) for the right to recover the products returned by the customer. ASC Topic 606 requires that return assets be presented separately from inventory. As of June 30, 2021 and December 31, 2020, the Company had return assets of $8 million recorded in Prepayments and other current assets. The Company continually seeks business development opportunities and at times provides customer incentives for new program awards. When the Company determines that the payments are incremental and incurred only if the new business is obtained and expects to recover these amounts from the customer over the term of the new business arrangement, the Company capitalizes these amounts. As of June 30, 2021 and December 31, 2020, the Company recorded customer incentive payments of $43 million in Prepayments and other current assets, and $148 million and $166 million in Other non-current assets in the Condensed Consolidated Balance Sheets, respectively. The following tables represent a disaggregation of revenue from contracts with customers by reporting segment and region and reflects the results of former Delphi Technologies entities in the three and six months ended June 30, 2021. Refer to Note 22, “Reporting Segments And Related Information,” to the Condensed Consolidated Financial Statements for more information.
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RESTRUCTURING |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | RESTRUCTURING The Company’s restructuring activities are undertaken, as necessary, to execute management’s strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company’s business and to relocate operations to best cost locations. The Company’s restructuring expenses consist primarily of employee termination benefits (principally severance and/or termination benefits) and other costs, which are primarily professional fees and costs related to facility closures and exits.
The following tables display a rollforward of the restructuring liability recorded within the Company’s Condensed Consolidated Balance Sheets and the related cash flow activity:
In February 2020, the Company announced a restructuring plan to address existing structural costs. During the three and six months ended June 30, 2021, the Company recorded $37 million and $61 million of restructuring charges related to this plan, respectively. During the three and six months ended June 30, 2020, the Company recorded $37 million and $52 million of restructuring charges related to this plan, respectively. Cumulatively, the Company has incurred $209 million of restructuring charges related to this plan. This plan is expected to result in a total of $300 million of restructuring costs through 2022. Nearly all of the restructuring charges associated with this plan are expected to be cash expenditures. In 2019, legacy Delphi Technologies announced a restructuring plan to reshape and realign its global technical center footprint and reduce salaried and contract staff. The Company continued actions under this program post-acquisition and has recorded cumulative charges of $33 million since October 1, 2020, including approximately $31 million in restructuring charges during the six months ended June 30, 2021. Although a majority of the actions under this program have been completed, the Company does expect additional charges, which could be significant, for actions subject to negotiations with employee works council and other employee representatives. During the three and six months ended June 30, 2021 and 2020, the Company incurred restructuring expenses primarily related to the following actions, related to the two plans discussed above: Air Management •During the three and six months ended June 30, 2021, the segment recorded $12 million and $27 million of restructuring cost, respectively, primarily related to severance costs, professional fees and a voluntary termination program to reduce existing structural costs. •During the six months ended June 30, 2021, the segment recorded $2 million primarily related to severance costs under a legacy Delphi Technologies restructuring plan to realign its global technical center footprint and implement headcount reductions. •During the three and six months ended June 30, 2020, the segment recorded $16 million and $29 million of restructuring costs, respectively, of which $5 million and $13 million related to a voluntary termination program where approximately 350 employees accepted termination packages and $7 million and $12 million related to severance costs and professional fees for specific actions to reduce structural costs. During the three and six months ended June 30, 2020, the segment also recorded $3 million of employee termination benefits related to the announced closure of a facility in Europe affecting approximately 200 employees. e-Propulsion & Drivetrain •During the three and six months ended June 30, 2021, the segment recorded $5 million and $10 million, respectively, primarily related to severance costs, equipment relocation and professional fees to reduce existing structural costs. During the three and six months ended June 30, 2021, the segment recorded $19 million and $23 million related to contractual settlements, professional fees and other costs associated with the announced closure of a facility in Europe. •During the three and six months ended June 30, 2020, the segment recorded $3 million and $5 million, respectively, primarily related to professional fees for actions to reduce structural costs and severance costs. During the three and six months ended June 30, 2020, the segment also recorded $17 million of employee termination benefits related to the announced closure of a facility in Europe affecting approximately 350 employees. Fuel Injection •During the three and six months ended June 30, 2021, the segment recorded $24 million and $27 million, respectively, primarily related to severance costs under a legacy Delphi Technologies restructuring plan to realign its global technical center footprint and implement headcount reductions. These benefits are subject to negotiation with labor unions, which could result in additional restructuring expenses. Estimates of restructuring expense are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals. The Company continues to evaluate different options across its operations to reduce existing structural costs over the next few years. The Company will recognize restructuring expense associated with any future actions at the time they are approved and become probable or are incurred. Any future actions could result in significant restructuring expense.
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RESEARCH AND DEVELOPMENT COSTS |
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Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESEARCH AND DEVELOPMENT COSTS | RESEARCH AND DEVELOPMENT COSTS The Company’s net Research & Development (“R&D”) expenditures are included in selling, general and administrative expenses of the Condensed Consolidated Statements of Operations. Customer reimbursements are netted against gross R&D expenditures as they are considered a recovery of cost. Customer reimbursements for prototypes are recorded net of prototype costs based on customer contracts, typically either when the prototype is shipped or when it is accepted by the customer. Customer reimbursements for engineering services are recorded when performance obligations are satisfied in accordance with the contract. Financial risks and rewards transfer upon shipment, acceptance of a prototype component by the customer or upon completion of the performance obligation, as stated in the respective customer agreement. The Company has contracts with several customers relating to R&D activities that the Company performs at the Company’s various R&D locations. The following table presents the Company’s gross and net expenditures on R&D activities:
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OTHER OPERATING EXPENSE, NET |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER OPERATING EXPENSE, NET | OTHER OPERATING EXPENSE, NET Items included in Other operating expense, net consist of:
Merger, acquisition and divestiture expense: During the three months ended June 30, 2021, the Company recorded merger, acquisition and divestiture expense of $15 million, primarily related to professional fees associated with the acquisition of AKASOL. During the six months ended June 30, 2021, the Company recorded merger, acquisition and divestiture expense of $28 million, primarily related to professional fees for integration and other support associated with the Company’s acquisition of Delphi Technologies completed on October 1, 2020 and the AKASOL acquisition. During the three and six months ended June 30, 2020, the Company recorded merger, acquisition and divestiture expense of $21 million and $42 million, respectively, primarily related to professional fees associated with the Company’s acquisition of Delphi Technologies. Loss on sale: During the three months ended June 30, 2021, the Company recorded a loss of $7 million in connection with the sale of an e-Propulsion & Drivetrain technical center in Europe. Asset impairments: During the three and six months ended June 30, 2020, the Company recorded asset impairment costs of $9 million in the Air Management segment and $8 million in the e-Propulsion & Drivetrain segment, related to the write down of property, plant and equipment associated with the announced closures of two European facilities. Net gain on insurance recovery for property damage: During the six months ended June 30, 2021 and 2020, the Company recorded a $2 million and $6 million net gain, respectively, from insurance recovery proceeds, which primarily represents the amount received for replacement cost in excess of carrying value for losses sustained from a tornado that damaged the Company’s plant in Seneca, South Carolina.
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INCOME TAXES |
6 Months Ended |
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Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s provision for income taxes is based upon an estimated annual tax rate for the year applied to federal, state and foreign income. On a quarterly basis, the annual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. The Company’s effective tax rate for the six months ended June 30, 2021 and 2020 was 16% and 45%, respectively. During the six-month period ended June 30, 2021, unrecognized tax benefits and accrued interest were decreased for the lapse of the statute of limitations in a non-US jurisdiction for a tax holiday matter which, net of unrecognized foreign tax credits, resulted in a $55 million tax benefit. Additionally, an increase in the United Kingdom (“UK”) tax rate from 19% to 25% effective April 1, 2023 was enacted in June 2021 resulting in a discrete tax benefit of $20 million as a result of the revaluation of net deferred tax asset balances. Further, the Company’s effective tax rate includes a net discrete tax benefit of $24 million primarily related to changes to certain withholding rates applied to unremitted earnings. The 2020 rate was unfavorably impacted by $94 million of restructuring expenses and merger, acquisition and divestiture expenses that were largely non-deductible for tax purposes, resulting in only $9 million of tax benefit being recognized. This rate was further unfavorably impacted by $26 million of asset impairment charges for which no tax benefit was recognized as full valuation allowances were recorded against the corresponding deferred tax assets. The Company also recorded reductions in income tax expense of $10 million for other one-time adjustments primarily related to tax law changes in India that were enacted during the first three months of 2020 and the release of certain unrecognized tax benefits due to the closure of an audit. The Company’s effective tax rate for the three months ended June 30, 2021 and 2020 was 9% and 6%, respectively. During the three-month period ended June 30, 2021, unrecognized tax benefits and accrued interest were decreased for the lapse of the statute of limitations in a non-US jurisdiction for a tax holiday matter which, net of unrecognized foreign tax credits, resulted in a $55 million tax benefit. Additionally, an increase in the UK tax rate from 19% to 25% effective April 1, 2023 was enacted in June 2021 resulting in a discrete tax benefit of $20 million as a result of the revaluation of net deferred tax asset balances. The 2020 rate includes restructuring expenses, merger, acquisition and divestiture expenses, and asset impairment costs that are largely non-deductible for tax purposes. During the three months ended June 30, 2020, the Company recorded $75 million of such expenses for which only a $5 million tax benefit was recognized. The annual effective tax rates differ from the U.S. statutory rate primarily due to foreign rates which vary from those in the U.S., jurisdictions with pretax losses for which no tax benefit could be realized, U.S. taxes on foreign earnings, the realization of certain business tax credits (including foreign tax credits), and permanent differences between book and tax treatment for certain items (including equity in affiliates’ earnings).
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INVENTORIES, NET |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES, NET | INVENTORIES, NET A summary of Inventories, net is presented below:
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OTHER CURRENT AND NON-CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT AND NON-CURRENT ASSETS | OTHER CURRENT AND NON-CURRENT ASSETS Additional detail related to assets is presented below:
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GOODWILL AND OTHER INTANGIBLES |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES During the fourth quarter of each year, the Company assesses its goodwill assigned to each of its reporting units. In addition, the Company may test goodwill in between annual test dates if an event occurs or circumstances change that could more-likely-than-not reduce the fair value of a reporting unit below its carrying value. No events or circumstances were noted in the first half of 2021 requiring additional assessment or testing. Future changes in the judgments, assumptions and estimates from those used in acquisition-related valuations and goodwill impairment testing, including discount rates or future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges that could materially affect the Company’s financial statements in any given year. A summary of the changes in the carrying amount of goodwill are as follows:
The Company’s other intangible assets, primarily from acquisitions, consist of the following:
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PRODUCT WARRANTY |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRODUCT WARRANTY | PRODUCT WARRANTY The Company provides warranties on some, but not all, of its products. The warranty terms are typically from to three years. Provisions for estimated expenses related to product warranty are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and industry developments and recoveries from third parties. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. Management believes that the warranty accrual is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the accrual. The product warranty accrual is allocated to current and non-current liabilities in the Condensed Consolidated Balance Sheets. The following table summarizes the activity in the product warranty accrual accounts:
The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows:
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NOTES PAYABLE AND DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND DEBT | NOTES PAYABLE AND DEBT As of June 30, 2021 and December 31, 2020, the Company had debt outstanding as follows:
________________ *Includes the fair value step-up from the Delphi Technologies acquisition, which was based on observable market data and will be amortized as a reduction to interest expense over the remaining life of the instrument using the effective interest method. The Company may utilize uncommitted lines of credit for short-term working capital requirements. As of June 30, 2021 and December 31, 2020, the Company had $1 million and $45 million, respectively, in borrowings under these facilities, which are classified in Notes payable and short-term debt on the Condensed Consolidated Balance Sheets. During the three months ended June 30, 2021, the Company repaid $46 million of existing short-term borrowings. On May 19, 2021, in anticipation of the acquisition of AKASOL and to refinance the Company's €500 million 1.800% senior notes due in November 2022, the Company issued €1.0 billion in 1.000% senior notes due May 2031. Interest is payable annually in arrears on May 19 of each year. These senior notes are not guaranteed by any of the Company’s subsidiaries. On June 18, 2021, the Company repaid its €500 million 1.800% senior notes due November 2022 and incurred a loss on debt extinguishment of $20 million, which is reflected in Interest expense in the Condensed Consolidated Statement of Operations. On February 19, 2021, the Company entered into a $900 million, 364-day delayed draw term loan facility to satisfy certain cash confirmation requirements in support of the proposed acquisition of AKASOL. The facility was cancelled on May 19, 2021 in accordance with its terms, following the Company’s issuance of the €1.0 billion in senior notes. The Company has a $2.0 billion multi-currency revolving credit facility which allows the Company the ability to increase the facility by $1.0 billion with bank group approval. The credit agreement contains customary events of default and one key financial covenant, which is a debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ratio. The Company was in compliance with the financial covenant at June 30, 2021. At June 30, 2021 and December 31, 2020, the Company had no outstanding borrowings under this facility. The Company’s commercial paper program allows the Company to issue up to $2.0 billion of short-term, unsecured commercial paper notes under the limits of its multi-currency revolving credit facility. Under this program, the Company may issue notes from time to time and use the proceeds for general corporate purposes. The Company had no outstanding borrowings under this program as of June 30, 2021 and December 31, 2020. The total current combined borrowing capacity under the multi-currency revolving credit facility and commercial paper program cannot exceed $2 billion. As of June 30, 2021 and December 31, 2020, the estimated fair values of the Company’s senior unsecured notes totaled $4,551 million and $4,052 million, respectively. The estimated fair values were $286 million higher than their carrying value at June 30, 2021 and $332 million higher than their carrying value at December 31, 2020. Fair market values of the senior unsecured notes are developed using observable values for similar debt instruments, which are considered Level 2 inputs as defined by ASC Topic 820. The carrying values of the Company's multi-currency revolving credit facility and commercial paper program approximates fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets. The Company had outstanding letters of credit of $33 million at June 30, 2021 and December 31, 2020. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.
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OTHER CURRENT AND NON-CURRENT LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT AND NON-CURRENT LIABILITIES | OTHER CURRENT AND NON-CURRENT LIABILITIES Additional detail related to liabilities is presented in the table below:
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FAIR VALUE MEASUREMENTS |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ASC Topic 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair values as follows: Level 1:Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2:Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3:Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC Topic 820: A.Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business. B.Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). C.Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models). The following tables classify assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:
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FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTSThe Company’s financial instruments include cash and cash equivalents, marketable securities and accounts receivable. Due to the short-term nature of these instruments, their book value approximates their fair value. The Company’s financial instruments may also include long-term debt, investments in equity securities, interest rate and cross-currency swaps, commodity derivative contracts and foreign currency derivative contracts. All derivative contracts are placed with counterparties that have an S&P, or equivalent, investment grade credit rating at the time of the contracts’ placement. At June 30, 2021 and December 31, 2020, the Company had no derivative contracts that contained credit risk-related contingent features. The Company, at times, uses certain commodity derivative contracts to protect against commodity price changes related to forecasted raw material and component purchases. At June 30, 2021 and December 31, 2020, the Company had no material commodity derivative contracts. The Company primarily utilizes forward and option contracts, which are designated as cash flow hedges. The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to optimize its interest costs. The Company, at times, selectively uses interest rate swaps and options to reduce market value risk associated with changes in interest rates (fair value hedges and cash flow hedges). At June 30, 2021 and December 31, 2020, the Company had no outstanding interest rate swaps or options. The Company uses foreign currency forward and option contracts to protect against exchange rate movements for forecasted cash flows, including capital expenditures, purchases, operating expenses or sales transactions designated in currencies other than the functional currency of the operating unit. In addition, the Company uses foreign currency forward contracts to hedge exposure associated with its net investment in certain foreign operations (net investment hedges). During the three months ended June 30, 2021, the Company repaid its €500 million 1.800% senior notes due November 2022, which was designated as a net investment hedge resulting in a deferred loss of $50 million that will remain in accumulated other comprehensive loss until the net investment is sold, completely liquidated or substantially liquidated. The Company has designated the €1.0 billion in 1.000% senior notes due May 2031, issued in May 2021, as a net investment hedge of the Company’s investment in its European subsidiaries. Foreign currency derivative contracts require the Company, at a future date, to either buy or sell foreign currency in exchange for the operating units’ local currency. At June 30, 2021 and December 31, 2020, the following foreign currency derivative contracts were outstanding:
The Company selectively uses cross-currency swaps to hedge the foreign currency exposure associated with its net investment in certain foreign operations (net investment hedges). At June 30, 2021 and December 31, 2020, the following cross-currency swap contracts were outstanding:
At June 30, 2021 and December 31, 2020, the following amounts were recorded in the Condensed Consolidated Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815:
Effectiveness for cash flow hedges is assessed at the inception of the hedging relationship and quarterly, thereafter. Gains and losses arising from these contracts that are included in the assessment of effectiveness are deferred into accumulated other comprehensive loss (“AOCI”) and reclassified into income as the underlying operating transactions are recognized. These realized gains or losses offset the hedged transaction and are recorded on the same line in the statement of operations. The initial value of any component excluded from the assessment of effectiveness will be recognized in income using a systematic and rational method over the life of the hedging instrument. Any difference between the change in fair value of the excluded component and amounts recognized in income under that systematic and rational method will be recognized in AOCI. Effectiveness for net investment hedges is assessed at the inception of the hedging relationship and quarterly, thereafter. Gains and losses arising from these contracts that are included in the assessment of effectiveness are deferred into foreign currency translation adjustments and only released when the subsidiary being hedged is sold or substantially liquidated. The initial value of any component excluded from the assessment of effectiveness will be recognized in income using a systematic and rational method over the life of the hedging instrument. Any difference between the change in fair value of the excluded component and amounts recognized in income under that systematic and rational method will be recognized in AOCI. The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated net investment hedges. The amount expected to be reclassified to income in one year or less assumes no change in the current relationship of the hedged item at June 30, 2021 market rates.
Derivative instruments designated as hedging instruments as defined by ASC Topic 815 held during the period resulted in the following gains and losses recorded in income:
The gains or losses recorded in income related to components excluded from the assessment of effectiveness for derivative instruments designated as cash flow hedges were immaterial for the periods presented. Gains and (losses) on derivative instruments designated as net investment hedges were recognized in other comprehensive income (loss) during the periods presented below.
Derivatives designated as net investment hedge instruments, as defined by ASC Topic 815, held during the period resulted in the following gains recorded in Interest expense on components excluded from the assessment of effectiveness:
There were no gains or losses recorded in income related to components excluded from the assessment of effectiveness for foreign currency-denominated debt designated as net investment hedges. There were no gains and losses reclassified from AOCI for net investment hedges during the periods presented. Derivatives not designated as hedging instruments are used to hedge remeasurement exposures of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains recorded in income:
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RETIREMENT BENEFIT PLANS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT BENEFIT PLANS | RETIREMENT BENEFIT PLANS The Company has a number of defined benefit pension plans and other postretirement benefit plans covering eligible salaried and hourly employees and their dependents. The estimated contributions to the Company's defined benefit pension plans for 2021 range from $15 million to $25 million, of which $12 million has been contributed through the first six months of the year. The other postretirement benefit plans, which provide medical and life insurance benefits, are funded on a pay-as-you-go basis. The components of net periodic benefit (income) cost recorded in the Condensed Consolidated Statements of Operations are as follows:
The components of net periodic benefit (income) cost other than the service cost component are included in Other postretirement income in the Condensed Consolidated Statements of Operations.
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STOCKHOLDERS' EQUITY |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The changes of the Stockholders’ Equity items during the three and six months ended June 30, 2021 and 2020, are as follows:
____________________________________ * The dividends declared relate to BorgWarner common stock.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the activity within accumulated other comprehensive loss during the three and six months ended June 30, 2021 and 2020:
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CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In the normal course of business, the Company is party to various commercial and legal claims, actions and complaints, including matters involving warranty claims, intellectual property claims, general liability and other risks. It is not possible to predict with certainty whether or not the Company will ultimately be successful in any of these commercial and legal matters or, if not, what the impact might be. The Company’s environmental contingencies are discussed below. The Company’s management does not expect that an adverse outcome in any of these other commercial and legal claims, actions and complaints will have a material adverse effect on the Company’s results of operations, financial position or cash flows, although such adverse outcome could be material to the results of operations in a particular quarter. Environmental The Company and certain of its current and former direct and indirect corporate predecessors, subsidiaries and divisions have been identified by the United States Environmental Protection Agency and certain state environmental agencies and private parties as potentially responsible parties (“PRPs”) at various hazardous waste disposal sites under the Comprehensive Environmental Response, Compensation and Liability Act (“Superfund”) and equivalent state laws and, as such, may presently be liable for the cost of clean-up and other remedial activities at 26 such sites as of June 30, 2021 and December 31, 2020. Responsibility for clean-up and other remedial activities at a Superfund site is typically shared among PRPs based on an allocation formula. The Company believes that none of these matters, individually or in the aggregate, will have a material adverse effect on its results of operations, financial position or cash flows. Generally, this is because either the estimates of the maximum potential liability at a site are not material or the liability will be shared with other PRPs, although no assurance can be given with respect to the ultimate outcome of any such matter. The Company had an accrual for environmental liabilities of $7 million as of June 30, 2021 and December 31, 2020 included in Other current and Other non-current liabilities in the Condensed Consolidated Balance Sheets. This accrual is based on information available to the Company (which, in most cases, includes an estimate of allocation of liability among PRPs; the probability that other PRPs, many of whom are large, solvent public companies, will fully pay the cost apportioned to them; currently available information from PRPs and/or federal or state environmental agencies concerning the scope of contamination and estimated remediation and consulting costs; and remediation alternatives).
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EARNINGS (LOSS) PER SHARE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The Company presents both basic and diluted earnings per share of common stock (“EPS”) amounts. Basic EPS is calculated by dividing net earnings attributable to BorgWarner Inc. by the weighted average shares of common stock outstanding during the reporting period. Diluted EPS is calculated by dividing net earnings attributable to BorgWarner Inc. by the weighted average shares of common stock and common stock equivalents outstanding during the reporting period. The dilutive impact of stock-based compensation is calculated using the treasury stock method. The treasury stock method assumes that the Company uses the assumed proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future and compensation cost for future service that the Company has not yet recognized. The dilutive effects of performance-based stock awards are included in the computation of diluted earnings per share at the level the related performance criteria are met through the respective balance sheet date. There were 778,962 of performance share units excluded from the computation of the diluted earnings for the three months ended June 30, 2021. There were 852,170 and 244,700 of performance share units excluded from the computation of the diluted earnings per share for the six months ended June 30, 2021 and 2020, respectively. These units were excluded, because the related performance criteria had not been met as of the balance sheet date. The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share of common stock:
____________________________________ * The Company had a loss for the three months ended June 30, 2020. As a result, diluted loss per share is the same as basic loss per share in the period, as any dilutive securities would reduce the loss per share. There were 2.8 million stock-based awards excluded from the computation of diluted earnings per share for the three months ended June 30, 2020.
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REPORTING SEGMENTS AND RELATED INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPORTING SEGMENTS AND RELATED INFORMATION | REPORTING SEGMENTS AND RELATED INFORMATION The Company’s business is comprised of four reporting segments: Air Management, e-Propulsion & Drivetrain, Fuel Injection and Aftermarket. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems. 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 ongoing 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: Net Sales by Reporting Segment
Segment Adjusted EBIT
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OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION | OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION
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BASIS OF PRESENTATION (Policies) |
6 Months Ended |
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Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited Condensed Consolidated Financial Statements of BorgWarner Inc. and Consolidated Subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flow activity required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair statement of results have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet as of December 31, 2020 was derived from the audited financial statements as of that date. For further information, refer to the Consolidated Financial Statements and Footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of Estimates | Management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and accompanying notes, as well as the amounts of revenues and expenses reported during the periods covered by those financial statements and accompanying notes. Actual results could differ from these estimates. |
New Accounting Pronouncements | In January 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-1, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” It clarifies the interaction among the accounting for equity securities, equity method investments, and certain derivative instruments. Specifically, for the purposes of applying the ASC Topic 321 measurement alternative, a company should consider observable transactions immediately before applying or upon discontinuing the equity method. Additionally, when determining the accounting for certain forward contracts and purchased options entered into to purchase securities, a company should not consider if the underlying securities would be accounted for under the equity method (ASC Topic 323) or fair value option (ASC Topic 825). This guidance was effective for interim and annual periods beginning after December 15, 2020. The Company adopted this guidance as of January 1, 2021, and there was no impact on its Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” It removes certain exceptions to the general principles in ASC Topic 740 and improves consistent application of and simplifies GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This guidance was effective for interim and annual reporting periods beginning after December 15, 2020. The Company adopted this guidance as of January 1, 2021, and the impact on its Consolidated Financial Statements was immaterial. In August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20).” It (i) requires the removal of disclosures that are no longer considered cost beneficial; (ii) clarifies specific requirements of certain disclosures; and (iii) adds new disclosure requirements, including the weighted average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and reasons for significant gains and losses related to changes in the benefit obligation. This guidance was effective for annual periods beginning after December 15, 2020. The Company adopted this guidance as of January 1, 2021, and there was no impact on these Condensed Consolidated Financial Statements; however, the Company will include the annual disclosures as required in its Annual Report on Form 10-K.
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ACQUISITIONS (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values of assets acquired and liabilities | The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of June 4, 2021, the acquisition date:
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments:
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Schedule of other intangible assets acquired | The following table summarizes the other intangible assets acquired:
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Summary of purchase price consideration | The following table summarizes the purchase price for Delphi Technologies:
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Schedule of goodwill |
A summary of the changes in the carrying amount of goodwill are as follows:
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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | The following tables represent a disaggregation of revenue from contracts with customers by reporting segment and region and reflects the results of former Delphi Technologies entities in the three and six months ended June 30, 2021. Refer to Note 22, “Reporting Segments And Related Information,” to the Condensed Consolidated Financial Statements for more information.
|
RESTRUCTURING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restructuring reserve by type of cost | The Company’s restructuring expenses consist primarily of employee termination benefits (principally severance and/or termination benefits) and other costs, which are primarily professional fees and costs related to facility closures and exits.
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Schedule of restructuring reserve of roll forward of the restructuring liability | The following tables display a rollforward of the restructuring liability recorded within the Company’s Condensed Consolidated Balance Sheets and the related cash flow activity:
|
RESEARCH AND DEVELOPMENT COSTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of research and development costs | The following table presents the Company’s gross and net expenditures on R&D activities:
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OTHER OPERATING EXPENSE, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other expense | Items included in Other operating expense, net consist of:
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INVENTORIES, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventory | A summary of Inventories, net is presented below:
|
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of additional related assets | Additional detail related to assets is presented below:
|
GOODWILL AND OTHER INTANGIBLES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill |
A summary of the changes in the carrying amount of goodwill are as follows:
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Summary of intangible assets gross roll forward | The Company’s other intangible assets, primarily from acquisitions, consist of the following:
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PRODUCT WARRANTY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of product warranty liability | The following table summarizes the activity in the product warranty accrual accounts:
The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows:
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NOTES PAYABLE AND DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt instruments | As of June 30, 2021 and December 31, 2020, the Company had debt outstanding as follows:
________________ *Includes the fair value step-up from the Delphi Technologies acquisition, which was based on observable market data and will be amortized as a reduction to interest expense over the remaining life of the instrument using the effective interest method.
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OTHER CURRENT AND NON-CURRENT LIABILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of additional details related to other liabilities | Additional detail related to liabilities is presented in the table below:
|
FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value | The following tables classify assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:
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FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of foreign exchange derivative contracts outstanding | At June 30, 2021 and December 31, 2020, the following foreign currency derivative contracts were outstanding:
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Schedule of foreign exchange contracts, statement of financial position | At June 30, 2021 and December 31, 2020, the following cross-currency swap contracts were outstanding:
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Schedule of derivatives instruments in statements of financial position | At June 30, 2021 and December 31, 2020, the following amounts were recorded in the Condensed Consolidated Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815:
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Schedule of cash flow hedges included in accumulated other comprehensive income (loss) | The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated net investment hedges. The amount expected to be reclassified to income in one year or less assumes no change in the current relationship of the hedged item at June 30, 2021 market rates.
Gains and (losses) on derivative instruments designated as net investment hedges were recognized in other comprehensive income (loss) during the periods presented below.
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Schedule of derivative instruments | Derivative instruments designated as hedging instruments as defined by ASC Topic 815 held during the period resulted in the following gains and losses recorded in income:
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Schedule of derivative instruments, gain (loss) | Derivatives designated as net investment hedge instruments, as defined by ASC Topic 815, held during the period resulted in the following gains recorded in Interest expense on components excluded from the assessment of effectiveness:
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Schedule of derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments are used to hedge remeasurement exposures of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains recorded in income:
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RETIREMENT BENEFIT PLANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net benefit (income) costs | The components of net periodic benefit (income) cost recorded in the Condensed Consolidated Statements of Operations are as follows:
|
STOCKHOLDERS' EQUITY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stockholders equity | The changes of the Stockholders’ Equity items during the three and six months ended June 30, 2021 and 2020, are as follows:
____________________________________ * The dividends declared relate to BorgWarner common stock.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive loss | The following tables summarize the activity within accumulated other comprehensive loss during the three and six months ended June 30, 2021 and 2020:
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EARNINGS (LOSS) PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share reconciliation | The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share of common stock:
____________________________________ * The Company had a loss for the three months ended June 30, 2020. As a result, diluted loss per share is the same as basic loss per share in the period, as any dilutive securities would reduce the loss per share. There were 2.8 million stock-based awards excluded from the computation of diluted earnings per share for the three months ended June 30, 2020.
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REPORTING SEGMENTS AND RELATED INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net sales by reporting segment | The following tables show segment information and Segment Adjusted EBIT for the Company’s reporting segments: Net Sales by Reporting Segment
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Schedule of segment earnings before interest and income taxes | Segment Adjusted EBIT
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OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash flow, supplemental disclosures |
|
ACQUISITIONS - Schedule of Other Intangible Assets Acquired (Details) - Delphi Technologies PLC - USD ($) $ in Millions |
Oct. 01, 2020 |
Jun. 30, 2021 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles | $ 650 | |
Other intangible assets, net | 760 | $ 760 |
Unamortized trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized trade name | $ 110 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 14 years | |
Finite-lived intangibles | $ 270 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 15 years | |
Finite-lived intangibles | $ 380 |
ACQUISITIONS - Summary of Purchase Price Consideration (Details) - USD ($) $ / shares in Units, $ in Millions |
6 Months Ended | ||
---|---|---|---|
Oct. 01, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Business Acquisition [Line Items] | |||
Cash consideration | $ 759 | $ 2 | |
Delphi Technologies PLC | |||
Business Acquisition [Line Items] | |||
BorgWarner common stock issued for purchase of Delphi Technologies (in shares) | 37,188,819 | ||
BorgWarner share price (in dollar per share) | $ 39.54 | ||
Fair value of stock consideration | $ 1,470 | ||
Stock compensation consideration | 7 | ||
Total stock consideration | 1,477 | ||
Cash consideration | 18 | ||
Repayment of Delphi Technologies’ debt | 896 | ||
Total consideration | $ 2,391 |
ACQUISITIONS - Schedule of Goodwill (Details) - USD ($) $ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
Oct. 01, 2020 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 3,325 | $ 2,627 | |
Air Management | |||
Business Acquisition [Line Items] | |||
Goodwill | 1,711 | 1,015 | |
e-Propulsion & Drivetrain | |||
Business Acquisition [Line Items] | |||
Goodwill | 1,303 | 1,313 | |
Aftermarket | |||
Business Acquisition [Line Items] | |||
Goodwill | 311 | $ 299 | |
Delphi Technologies PLC | |||
Business Acquisition [Line Items] | |||
Goodwill | 733 | $ 710 | |
Delphi Technologies PLC | Air Management | |||
Business Acquisition [Line Items] | |||
Goodwill | 151 | ||
Delphi Technologies PLC | e-Propulsion & Drivetrain | |||
Business Acquisition [Line Items] | |||
Goodwill | 284 | ||
Delphi Technologies PLC | Fuel Injection | |||
Business Acquisition [Line Items] | |||
Goodwill | 0 | ||
Delphi Technologies PLC | Aftermarket | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 298 |
RESEARCH AND DEVELOPMENT COSTS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Research and Development [Abstract] | ||||
Gross R&D expenditures | $ 224 | $ 103 | $ 444 | $ 221 |
Customer reimbursements | (58) | (15) | (95) | (24) |
Net R&D expenditures | $ 166 | $ 88 | $ 349 | $ 197 |
OTHER OPERATING EXPENSE, NET - Other Operating Expense, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Other Income and Expenses [Abstract] | ||||
Restructuring expense | $ 62 | $ 37 | $ 92 | $ 52 |
Merger, acquisition and divestiture expense | 15 | 21 | 28 | 42 |
Loss on sale | 7 | 0 | 7 | 0 |
Asset impairments | 0 | 17 | 0 | 17 |
Net gain on insurance recovery for property damage | 0 | (6) | (2) | (6) |
Other income, net | (3) | (1) | (6) | (1) |
Other operating expense, net | $ 81 | $ 68 | $ 119 | $ 104 |
OTHER OPERATING EXPENSE, NET - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
USD ($)
employee
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
USD ($)
employee
|
|
Schedule of Equity Method Investments | ||||
Merger, acquisition and divestiture expense | $ 15 | $ 21 | $ 28 | $ 42 |
Loss on sale | 7 | 0 | 7 | 0 |
Gain on business insurance recovery | $ 0 | $ 6 | $ 2 | $ 6 |
Europe | Facility Closure | ||||
Schedule of Equity Method Investments | ||||
Number of properties | employee | 2 | 2 | ||
Air Management | ||||
Schedule of Equity Method Investments | ||||
Impairment of assets to be disposed | $ 9 | $ 9 | ||
e-Propulsion & Drivetrain | ||||
Schedule of Equity Method Investments | ||||
Impairment of assets to be disposed | $ 8 | $ 8 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, continuing operations (in percent) | 9.00% | 6.00% | 16.00% | 45.00% |
Unrecognized tax benefits, Income tax penalties and Interest expense | $ 55 | $ 55 | ||
Effective tax rate includes net discrete tax benefit | $ 20 | 20 | ||
Discrete tax benefit | $ 24 | |||
Restructuring, merger, acquisition and divestiture expense | $ 94 | |||
Tax benefit recognized on restructuring expense | 9 | |||
DTA, impairment losses | $ 26 | 26 | ||
Tax benefits related to other one-time adjustments | $ 10 | |||
Restructuring, merger, acquisition, divestiture expenses, and asset impairment costs | 75 | |||
Tax benefits recognized | $ 5 |
INVENTORIES, NET (Details) - USD ($) $ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw material and supplies | $ 1,014 | $ 827 |
Work in progress | 181 | 150 |
Finished goods | 396 | 324 |
FIFO inventories | 1,591 | 1,301 |
LIFO reserve | (24) | (15) |
Inventories, net | $ 1,567 | $ 1,286 |
OTHER CURRENT AND NON-CURRENT ASSETS (Details) - USD ($) $ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Prepayments and other current assets: | ||
Prepaid tooling | $ 95 | $ 84 |
Prepaid taxes | 58 | 64 |
Customer incentive payments | 43 | 43 |
Prepaid engineering | 32 | 33 |
Contract assets | 22 | 16 |
Other | 89 | 72 |
Total prepayments and other current assets | 339 | 312 |
Investments and other long-term receivables: | ||
Investment in equity affiliates | 292 | 297 |
Equity securities | 203 | 472 |
Other long-term receivables | 51 | 51 |
Total investments and other long-term receivables | 546 | 820 |
Other non-current assets: | ||
Deferred income taxes | 317 | 291 |
Operating leases | 209 | 211 |
Customer incentive payments | 148 | 166 |
Other | 74 | 60 |
Total other non-current assets | $ 748 | $ 728 |
PRODUCT WARRANTY - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Minimum | |
Guarantor Obligations [Line Items] | |
Product warranty term | 1 year |
Maximum | |
Guarantor Obligations [Line Items] | |
Product warranty term | 3 years |
PRODUCT WARRANTY - Product Warranty Accrual Accounts (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Product warranty rollforward | |||
Beginning balance, January 1 | $ 253 | $ 116 | |
Provisions for current period sales | 52 | 27 | |
Adjustments of prior estimates | 17 | 5 | |
Payments | (73) | (28) | |
Translation adjustment | (3) | (1) | |
Ending balance, June 30 | 246 | 119 | |
Other current liabilities | 137 | $ 164 | |
Other non-current liabilities | 109 | 89 | |
Total product warranty liability | $ 246 | $ 119 | $ 253 |
OTHER CURRENT AND NON-CURRENT LIABILITIES (Details) - USD ($) $ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Other current liabilities: | ||
Payroll and employee related | $ 318 | $ 301 |
Customer related | 244 | 198 |
Product warranties | 137 | 164 |
Income taxes payable | 124 | 102 |
Employee termination benefits | 97 | 101 |
Indirect taxes | 69 | 69 |
Accrued freight | 52 | 41 |
Operating leases | 48 | 47 |
Dividends payable | 39 | 6 |
Interest | 32 | 18 |
Insurance | 19 | 20 |
Retirement related | 16 | 16 |
Contract liabilities | 16 | 22 |
Other | 271 | 304 |
Total other current liabilities | 1,482 | 1,409 |
Other non-current liabilities: | ||
Deferred income taxes | 264 | 276 |
Non-current income tax liabilities | 248 | 300 |
Operating leases | 168 | 172 |
Derivative instruments | 121 | 162 |
Product warranties | 109 | 89 |
Deferred income | 63 | 55 |
Employee termination benefits | 37 | 59 |
Other | 80 | 68 |
Total other non-current liabilities | $ 1,090 | $ 1,181 |
FAIR VALUE MEASUREMENTS (Details) - Valuation, Market Approach - Fair Value, Recurring - USD ($) $ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets: | ||
Investment in equity securities | $ 156 | $ 432 |
Foreign currency contracts | 16 | 5 |
Net investment hedge contracts | 6 | |
Liabilities: | ||
Foreign currency contracts | 12 | 6 |
Net investment hedge contracts | 120 | 161 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Investment in equity securities | 156 | 432 |
Foreign currency contracts | 0 | 0 |
Net investment hedge contracts | 0 | |
Liabilities: | ||
Foreign currency contracts | 0 | 0 |
Net investment hedge contracts | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Investment in equity securities | 0 | 0 |
Foreign currency contracts | 16 | 5 |
Net investment hedge contracts | 6 | |
Liabilities: | ||
Foreign currency contracts | 12 | 6 |
Net investment hedge contracts | 120 | 161 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Investment in equity securities | 0 | 0 |
Foreign currency contracts | 0 | 0 |
Net investment hedge contracts | 0 | |
Liabilities: | ||
Foreign currency contracts | 0 | 0 |
Net investment hedge contracts | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 18, 2021
EUR (€)
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2021
EUR (€)
|
Jun. 04, 2021 |
May 19, 2021
EUR (€)
|
Oct. 01, 2020
USD ($)
|
|
Derivative [Line Items] | ||||||
Deferred loss | $ | $ 50 | |||||
Senior Notes | ||||||
Derivative [Line Items] | ||||||
Debt instrument, face amount | $ | $ 800 | |||||
1.800% Senior notes due 11/07/22 (€500 million par value) | Senior Notes | ||||||
Derivative [Line Items] | ||||||
Repayment of debt | € 500,000,000 | |||||
Debt instrument stated interest rate | 1.80% | 1.80% | 1.80% | |||
Debt instrument, face amount | € 500,000,000 | € 500,000,000 | ||||
1.000% Senior Notes due 05/19/31 (€1,000 million par value) | Senior Notes | ||||||
Derivative [Line Items] | ||||||
Debt instrument stated interest rate | 1.00% | 1.00% | ||||
Debt instrument, face amount | € 1,000,000,000 | € 1,000,000,000.0 |
FINANCIAL INSTRUMENTS - Income Statement (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Derivative Instruments, Gain (Loss) | ||||
Net sales | $ 3,758 | $ 1,426 | $ 7,767 | $ 3,705 |
Cost of sales | 2,996 | 1,252 | 6,187 | 3,084 |
Selling, general and administrative expenses | 364 | 184 | 741 | 397 |
Other comprehensive income (loss) | 63 | 14 | (22) | (60) |
Gain (loss) on cash flow hedging relationships: | ||||
Gain (loss) recognized in other comprehensive income | 1 | (2) | ||
Foreign currency | ||||
Gain (loss) on cash flow hedging relationships: | ||||
Gain (loss) recognized in other comprehensive income | 3 | (3) | ||
Foreign currency | Cash Flow Hedging | Gain (loss) reclassified from AOCI to income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 1 | 0 | 1 | 0 |
Selling, general and administrative expenses | $ 0 | $ (1) | $ 0 | $ (1) |
FINANCIAL INSTRUMENTS - Other Comprehensive Income (Loss) (Details) - Net Investment Hedging - Other comprehensive income (loss) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Foreign currency | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and (losses) on derivative instruments | $ 1 | $ 0 | $ (6) | $ 1 |
Cross-currency swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and (losses) on derivative instruments | 3 | (17) | 47 | 18 |
Foreign currency-denominated debt | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and (losses) on derivative instruments | $ 12 | $ (10) | $ 37 | $ (2) |
FINANCIAL INSTRUMENTS - Derivative Instruments Gain (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Cross-currency swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Net investment hedges | $ 5 | $ 3 | $ 10 | $ 7 |
FINANCIAL INSTRUMENTS - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Foreign currency | Derivatives not designated as hedging instruments: | Selling, general and administrative expenses | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivatives not designated as hedges | $ 4 | $ 0 | $ 5 | $ 3 |
RETIREMENT BENEFIT PLANS - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Actual contribution to defined benefit pension plans | $ 12 |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, expected future employer contributions, current fiscal year | 15 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, expected future employer contributions, current fiscal year | $ 25 |
CONTINGENCIES (Details) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2021
USD ($)
site
|
Dec. 31, 2020
USD ($)
site
|
|
Commitments and Contingencies Disclosure [Abstract] | ||
Waste disposal sites with potential liability under the comprehensive environmental response, compensation and liability act | site | 26 | 26 |
Accrual for indicated environmental liabilities | $ | $ 7 | $ 7 |
REPORTING SEGMENTS AND RELATED INFORMATION - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2021
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
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