The Company has identified our CODM as the Chief Executive Officer. The CODM reviews consolidated net income when assessing the Company's performance, allocating resources, and establishing management's compensation. In addition to consolidated net income, the CODM receives discrete information for net sales by product and by geographical location. Consolidated net income is used to monitor budget versus actual results.

The accounting policies of our operating segment are the same as those described in the Company's summary of significant accounting policies.

The Company derives revenues from customers through sales of turbocharging, air and fluid compression, and high-speed electric motor technologies for OEMs and independent aftermarket distributors in the mobility and industrial fields.

Sales concentration - Net sales by region (determined based on country of shipment) and product line are as follows:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
United States		$	179	$	176
Europe
Germany		93		89

Rest of Europe		410		336
Asia
China		167		153
Rest of Asia		110		104
Other International		26		20
		$	985	$	878


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Diesel		$	232	$	208
Gas		443		403
Commercial Vehicles / Industrial		181		155
Aftermarket		114		98
Other		15		14
		$	985	$	878


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Net sales		$	985	$	878
Less:
Material costs		563		501
Variable manufacturing costs (1)		117		99
Fixed manufacturing costs (2)		72		59
RD&E costs		37		40
Selling, general and administrative costs		58		59
Interest expense		27		29
Income tax expense		23		23
Other segment items (3)		(7)		7
Consolidated net income		$	95	$	62

(1) Variable manufacturing costs include freight, duties and tariffs, direct and indirect labor costs, repairs and maintenance, and variable overhead costs.

(2) Fixed manufacturing costs include depreciation and amortization, rent, overhead labor costs, repositioning costs, utilities and other fixed costs.

(3) Other segment items consist of non-service components of net periodic pension expense, interest income, equity income and other non-operating income items (if any).

The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company had capital expenditures of $29 million and $26 million for the three months ended March 31, 2026 and 2025, respectively.