BorgWarner Inc. Files 10-Q for Q2 2024

TL;DR

BorgWarner's Q2 2024 10-Q is in, detailing segment performance and Phinia's discontinued ops. Check the numbers.

AI Summary

BorgWarner Inc. reported its financial results for the period ending June 30, 2024. The company's filing covers its performance across various segments, including discontinued operations related to Phinia. Specific financial figures and comparative data from prior periods are detailed within the report.

Why It Matters

This 10-Q filing provides investors and analysts with a detailed look at BorgWarner's financial health and operational performance for the second quarter of 2024, including segment-specific data and discontinued operations.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the inclusion of discontinued operations (Phinia) adds a layer of complexity that warrants careful review.

Key Numbers

• 2024 Q2 — Reporting Period (Financial results for the second quarter of 2024.)
• 2024-01-01 to 2024-06-30 — Year-to-Date Period (Consolidated financial data for the first six months of 2024.)
• 2023-01-01 to 2023-06-30 — Prior Year-to-Date Period (Comparative financial data for the first six months of 2023.)

Key Players & Entities

• BORGWARNER INC (company) — Filer
• Phinia (company) — Segment Discontinued Operations
• 20240630 (date) — Period of Report
• 20240731 (date) — Filed as of Date

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share BWA New York Stock Exchange

Filing Documents

• bwa-20240630.htm (10-Q) — 2226KB
• executiveseveranceplan-may.htm (EX-10.1) — 202KB
• retentionaward-calaway.htm (EX-10.2) — 44KB
• bwa_2024restrictedstockagr.htm (EX-10.3) — 27KB
• a2024063010qexhibit311.htm (EX-31.1) — 10KB
• a2024063010qexhibit312.htm (EX-31.2) — 10KB
• a2024063010qexhibit321.htm (EX-32.1) — 7KB
• 0000908255-24-000036.txt ( ) — 13747KB
• bwa-20240630.xsd (EX-101.SCH) — 73KB
• bwa-20240630_cal.xml (EX-101.CAL) — 129KB
• bwa-20240630_def.xml (EX-101.DEF) — 381KB
• bwa-20240630_lab.xml (EX-101.LAB) — 845KB
• bwa-20240630_pre.xml (EX-101.PRE) — 645KB
• bwa-20240630_htm.xml (XML) — 2985KB

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets as of June 30 , 2024 and December 31, 2023 (Unaudited) 1 Condensed Consolidated Statements of Operations for the three and six months ended June 30 , 2024 and 2023 (Unaudited) 2 Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and s ix months ended June 30 , 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Cash Flows for the six months ended June 30 , 2024 and 2023 (Unaudited) 4 Notes to Condensed Consolidated Financial Statements (Unaudited) 5

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 53

Controls and Procedures

Item 4. Controls and Procedures 54

Other Information

PART II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 55

Risk Factors

Item 1A. Risk Factors 55

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 55

Other Information

Item 5. Other Information 56

Exhibits

Item 6. Exhibits 56

SIGNATURES

SIGNATURES 57 Table of Contents CAUTIONARY STATEMENTS FOR FORWARD-LOOKING STATEMENTS

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements BORGWARNER INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions) June 30, 2024 December 31, 2023 ASSETS Cash, cash equivalents and restricted cash $ 1,288 $ 1,534 Receivables, net 3,111 3,109 Inventories, net 1,322 1,313 Prepayments and other current assets 283 261 Total current assets 6,004 6,217 Property, plant and equipment, net 3,736 3,783 Investments and long-term receivables 342 364 Goodwill 2,965 3,013 Other intangible assets, net 521 564 Other non-current assets 540 512 Total assets $ 14,108 $ 14,453 LIABILITIES AND EQUITY Short-term debt $ 445 $ 73 Accounts payable 2,202 2,546 Other current liabilities 1,065 1,148 Total current liabilities 3,712 3,767 Long-term debt 3,283 3,707 Retirement-related liabilities 141 146 Other non-current liabilities 687 767 Total liabilities 7,823 8,387 Commitments and contingencies Common stock 3 3 Capital in excess of par value 2,645 2,689 Retained earnings 6,620 6,152 Accumulated other comprehensive loss ( 938 ) ( 828 ) Common stock held in treasury, at cost ( 2,237 ) ( 2,188 ) Total BorgWarner Inc. stockholders' equity 6,093 5,828 Noncontrolling interest 192 238 Total equity 6,285 6,066 Total liabilities and equity $ 14,108 $ 14,453 See accompanying Notes to Condensed Consolidated Financial Statements. 1 Table of Contents BORGWARNER INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2024 2023 2024 2023 Net sales $ 3,603 $ 3,671 $ 7,198 $ 7,054 Cost of sales 2,918 2,991 5,869 5,797 Gross profit 685 680 1,329 1,257 Selling, general and administrative expenses 341 334 670 633 Restructuring expense 25 9 44 12 Other operating expense, net 22 4 23 5 Operating income 297 333 592 607 Equity in affiliates' earnings, net of tax ( 12 ) ( 12 ) ( 17 ) ( 13 ) Unre

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View this 10-Q filing on SEC EDGAR