BorgWarner Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>BorgWarner Inc. has submitted its 2023 Form 10-K, detailing its financial and operational performance for the fiscal year ending December 31, 2023.</b>

AI Summary

BORGWARNER INC (BWA) filed a Annual Report (10-K) with the SEC on February 8, 2024. BorgWarner Inc. filed its 2023 Form 10-K on February 8, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers the company's financial performance and business operations for the fiscal year 2023. Key financial data and disclosures for the period are included in the report. The company's principal executive offices are located at 3850 Hamlin Rd., Auburn Hills, MI 48326. BorgWarner Inc. was formerly known as Borg Warner Automotive Inc. and changed its name on June 28, 1993.

Why It Matters

For investors and stakeholders tracking BORGWARNER INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of BorgWarner's financial health, strategic initiatives, and risk factors for investors and stakeholders. The report is crucial for understanding the company's performance in the automotive parts and accessories industry and its outlook for the upcoming fiscal year.

Risk Assessment

Risk Level: medium — BORGWARNER INC shows moderate risk based on this filing. The company operates in the automotive parts and accessories industry, which is subject to cyclical economic conditions and rapid technological changes, posing medium risk to its financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess BorgWarner's performance and future prospects.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-08 — Filing Date (Date of submission)
• 3714 — SIC Code (Industry classification)
• 2487549200 — Business Phone (Contact number)

Key Players & Entities

• BORGWARNER INC (company) — Filer name
• BWA (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-08 (date) — Filing date
• MOTOR VEHICLE PARTS & ACCESSORIES (industry) — Standard Industrial Classification
• 3714 (industry) — Standard Industrial Classification code
• DE (jurisdiction) — State of incorporation
• AUBURN HILLS (location) — Business address city

Forward-Looking Statements

• BorgWarner will continue to focus on adapting its product portfolio to the evolving automotive industry, particularly in electrification. (BORGWARNER INC) — medium confidence, target: 2025-12-31

FAQ

Industry Context

BorgWarner Inc. operates in the Motor Vehicle Parts & Accessories industry, a sector characterized by its integral role in the automotive supply chain and susceptibility to global economic trends.

Regulatory Implications

As a publicly traded company, BorgWarner Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Review BorgWarner's detailed financial statements for the fiscal year 2023.
2. Analyze the company's business operations and strategic initiatives outlined in the 10-K.
3. Assess the identified risk factors and their potential impact on future performance.

Key Dates

• 2023-12-31: Fiscal Year End — The end date for the reporting period covered by the 10-K.
• 2024-02-08: Filing Date — The date BorgWarner Inc. officially submitted its 10-K report to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, superseding previous filings and providing updated financial and operational information.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share BWA New York Stock Exchange
• $10 billion — ects that by 2027, it will achieve over $10 billion in annual eProduct sales, deliver eProd
• $2.0 b — ny's eProduct revenue was approximately $2.0 billion, or 14% of its total revenue. O
• $78 million — ctronics. The Company paid 72 million ( $78 million ) at closing, with up to 175 million ($
• $191 million — n ) at closing, with up to 175 million ($191 million) in earn-out payments that could be pai
• $42 million — he total consideration was 288 million ($42 million), including 268 million ($39 million) o
• $39 million — n ($42 million), including 268 million ($39 million) of base purchase price and 20 million
• $3 million — of base purchase price and 20 million ($3 million) of estimated earn-out payments. The Co
• $31 million — payments. The Company paid 217 million ($31 million) of the base purchase price in the year
• $8 million — ber 31, 2023. The remaining 51 million ($8 million) of base purchase price is payable in t
• $15 million — e obligated to remit up to 103 million ($15 million), in the form of contingent payments ov
• $29 million — The total consideration was 27 million ($29 million) of base purchase price paid at closing
• $10 million — price paid at closing, and 10 million ($10 million) of estimated earn-out payments that co
• $131 million — its charging business. The Company paid $131 million at closing, and up to $30 million could
• $30 million — paid $131 million at closing, and up to $30 million could be paid in the form of contingent

Filing Documents

• bwa-20231231.htm (10-K) — 3836KB
• a20231231ex211-subsidiarie.htm (EX-21.1) — 90KB
• a20231231ex-231x10k.htm (EX-23.1) — 2KB
• a20231231ex-311x10k.htm (EX-31.1) — 10KB
• a20231231ex-312x10k.htm (EX-31.2) — 10KB
• a20231231ex-321x10k.htm (EX-32.1) — 7KB
• sectionx-appendixaxclawbac.htm (EX-97.1) — 25KB
• bwa-20231231_g1.jpg (GRAPHIC) — 119KB
• 0000908255-24-000007.txt (&nbsp;) — 23104KB
• bwa-20231231.xsd (EX-101.SCH) — 121KB
• bwa-20231231_cal.xml (EX-101.CAL) — 203KB
• bwa-20231231_def.xml (EX-101.DEF) — 750KB
• bwa-20231231_lab.xml (EX-101.LAB) — 1492KB
• bwa-20231231_pre.xml (EX-101.PRE) — 1116KB
• bwa-20231231_htm.xml (XML) — 4901KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 18 Item 1B . Unresolved Staff Comments 30 Item 1C . Cybersecurity 30 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4 . Mine Safety Disclosures 32 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6 . [Reserved] 35 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 58 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 59 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 130 Item 9A.

Controls and Procedures

Controls and Procedures 130 Item 9B. Other Information 131 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 131 PART III. Item 10. Directors, Executive Officers and Corporate Governance 131 Item 11.

Executive Compensation

Executive Compensation 132 Item 12 .

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 132 Item 13. Certain Relationships and Related Transactions and Director Independence 132 Item 14. Principal Accountant Fees and Services 132 PART IV. Item 15. Exhibits and Financial Statement Schedules 132 Item 16. Form 10-K Summary 133 3 Table of Contents CAUTIONARY STATEMENTS FOR FORWARD-LOOKING INFORMATION

Business

Item 1. Business BorgWarner Inc. (together with its Consolidated Subsidiaries, the "Company" or "BorgWarner") is a Delaware corporation incorporated in 1987. The Company is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products help improve vehicle performance, propulsion efficiency, stability and air quality. The Company manufactures and sells these products worldwide, primarily to original equipment manufacturers ("OEMs") of light vehicles (passenger cars, sport-utility vehicles ("SUVs"), vans and light trucks). The Company's products are also sold to OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks and buses) and off-highway vehicles (agricultural and construction machinery and marine applications). The Company also manufactures and sells its products to certain tier one vehicle systems suppliers and into the aftermarket for light, commercial and off-highway vehicles. The Company operates manufacturing facilities serving customers in Europe, the Americas and Asia and is an original equipment supplier to nearly every major automotive OEM in the world. Charging Forward - Electrification Portfolio Strategy In 2021, the Company announced its strategy to aggressively grow its eProducts over time through organic investments and technology-focused acquisitions. eProducts include all products utilized on or for electric vehicles ("EVs") plus those same products and components that are included in hybrid powertrains whose underlying technologies are adaptable or applicable to those used in or for EVs. The Company believes it is well positioned for the industry's anticipated migration to EVs. In June 2023, the Company announced the next phase of its Charging Forward strategy, which focuses on profitably growing eProducts while maximizing the value of the Company's Foundational products portfolio. Foundational products include all products utilized on internal combustion engine

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View this 10-K filing on SEC EDGAR