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REPORTING SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTING SEGMENTS AND RELATED INFORMATION
The Company’s business is aggregated into four reporting segments which are further described below. These segments are strategic business groups, which are managed separately as each represents a specific grouping of related automotive components and systems.

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

Segment Adjusted EBIT is the measure of segment income or loss used by the Company. Segment Adjusted EBIT is comprised of earnings before interest, income taxes and noncontrolling interest (“EBIT”) adjusted for restructuring, merger, acquisition and divestiture expense, impairment charges, affiliates’ earnings and other items not reflective of on-going operating income or loss. The Company believes Segment Adjusted EBIT is most reflective of the operational profitability or loss of its reporting segments.

The following tables show segment information and Segment Adjusted EBIT for the Company’s reporting segments:
2021 Segment information
Net salesYear-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$7,146 $152 $7,298 $6,729 $305 $281 
e-Propulsion & Drivetrain5,209 169 5,378 5,527 284 237 
Fuel Injection1,637 189 1,826 1,782 142 110 
Aftermarket846 7 853 815 5 4 
Inter-segment eliminations— (517)(517)— — — 
Total14,838 — 14,838 14,853 736 632 
Corporate2
— — — 1,722 36 34 
Consolidated$14,838 $— $14,838 $16,575 $772 $666 
2020 Segment information
Net salesYear-end assets
Depreciation/ amortization3
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$5,598 $80 $5,678 $5,714 $241 $210 
e-Propulsion & Drivetrain3,940 49 3,989 5,412 261 192 
Fuel Injection435 44 479 1,964 32 21 
Aftermarket192 2 194 806 2 2 
Inter-segment eliminations— (175)(175)— — — 
Total10,165 — 10,165 13,896 536 425 
Corporate2
— — — 2,133 32 16 
Consolidated$10,165 $— $10,165 $16,029 $568 $441 
2019 Segment information
Net salesYear-end assets Depreciation/ amortization
Long-lived asset expenditures1
(in millions)CustomersInter-segmentNet
Air Management$6,153 $61 $6,214 $4,536 $227 $219 
e-Propulsion & Drivetrain4,015 — 4,015 4,075 183 254 
Inter-segment eliminations— (61)(61)— — — 
Total10,168 — 10,168 8,611 410 473 
Corporate2
— — — 1,091 29 8 
Consolidated$10,168 $— $10,168 $9,702 $439 $481 
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
3 In 2020, e-Propulsion & Drivetrain includes $38 million related to accelerated amortization for certain intangibles, refer to Note 12, “Goodwill and Other Intangibles,” for more information.
Adjusted earnings before interest, income taxes and noncontrolling interest (“Segment Adjusted EBIT”)
Year Ended December 31,
(in millions)202120202019
Air Management$1,070 $762 $995 
e-Propulsion & Drivetrain486 359 443 
Fuel Injection170 39 — 
Aftermarket107 22 — 
Segment Adjusted EBIT1,833 1,182 1,438 
Corporate, including stock-based compensation302 192 206 
Restructuring expense163 203 72 
Customer warranty settlement (Note 21)
124 — — 
Merger, acquisition and divestiture expense50 96 11 
Loss on sales of businesses29 — 7 
Asset impairments and lease modifications17 17 — 
Net gain on insurance recovery for property damage(3)(9)— 
Intangible asset accelerated amortization (Note 12)
— 38 — 
Amortization of inventory fair value adjustment— 27 — 
Gain on derecognition of subsidiary (Note 21)— — (177)
Unfavorable arbitration loss— — 14 
Officer stock awards modification— — 2 
Equity in affiliates' earnings, net of tax(48)(18)(32)
Unrealized loss (gain) on equity securities362 (382)— 
Interest expense, net93 61 43 
Other postretirement (income) expense(45)(7)27 
Earnings before income taxes and noncontrolling interest789 964 1,265 
Provision for income taxes150 397 468 
Net earnings639 567 797 
Net earnings attributable to the noncontrolling interest, net of tax102 67 51 
Net earnings attributable to BorgWarner Inc. $537 $500 $746 
Geographic Information

During the year ended December 31, 2021, approximately 83% of the Company’s consolidated net sales were outside the United States (“U.S.”), attributing sales to the location of production rather than the location of the customer. Outside the U.S., China, Mexico, Germany, Poland, South Korea and the United Kingdom exceeded 5% of consolidated net sales during the year ended December 31, 2021. The Company’s investments in equity securities are excluded from the definition of long-lived assets, as are goodwill and certain other non-current assets.
 Net salesLong-lived assets
(in millions)202120202019202120202019
United States$2,490 $2,023 $2,335 $625 $937 $752 
Europe:   
Germany1,342 1,175 1,507 405 338 328 
Poland1,121 696 627 324 352 180 
United Kingdom821 276 171 215 229 56 
Hungary469 458 589 193 184 164 
Other Europe1,452 954 916 520 620 229 
Total Europe5,205 3,559 3,810 1,657 1,723 957 
China3,518 2,269 1,711 1,042 1,055 605 
Mexico1,736 1,035 1,040 623 367 247 
South Korea1,096 814 786 256 301 221 
Other foreign793 465 486 192 208 152 
Total$14,838 $10,165 $10,168 $4,395 $4,591 $2,934 

Sales to Major Customers

Consolidated net sales to Ford (including its subsidiaries) were approximately 10%, 13% and 15% for the years ended December 31, 2021, 2020 and 2019, respectively. Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 9%, 11% and 11% for the years ended December 31, 2021, 2020 and 2019. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented.

Sales by Product Line

Sales of turbochargers for light vehicles represented approximately 19%, 24% and 28% of consolidated net sales for the years ended December 31, 2021, 2020 and 2019, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.

Subsequent Event
In January 2022, the Company announced that the starter and alternator business currently reported in its e-Propulsion & Drivetrain segment will transition to the Aftermarket segment effective January 1, 2022.