Segments

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segments

Segments

The components that management establishes for purposes of making decisions about an enterprise’s operating matters are referred to as “operating segments.” We manage our operations globally through four operating segments: Light Vehicle Driveline, Commercial Vehicle, Off-Highway and Power Technologies.

We report the results of our operating segments and related disclosures about each of our segments on the basis that is used internally for evaluating segment performance and deciding how to allocate resources to those segments. The primary measure of operating results is segment EBITDA. The most significant impact on our ongoing results of operations as a result of applying fresh start accounting following our emergence from bankruptcy was higher depreciation and amortization. Management believes by using segment EBITDA, a performance measure which excludes depreciation and amortization, the comparability of results is enhanced. In addition, segment EBITDA is an important measure since the financial covenants in our debt agreements are based, in part, on EBITDA. Our segments are charged for corporate and other shared administrative costs.

Segment information —

	2013							2012
Three Months Ended March 31,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
LVD	$	619	$	33		$	41	$	727	$	58		$	63
Power Technologies	256		5			36		268		5			40
Commercial Vehicle	458		32			41		551		33			61
Off-Highway	343		12			41		418		15			49
Eliminations and other			(82		)					(111		)
Total	$	1,676	$	—		$	159	$	1,964	$	—		$	213

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended March 31,
	2013			2012
Segment EBITDA	$	159		$	213
Corporate expense and other items, net	(1		)	(3		)
Depreciation	(42		)	(48		)
Amortization of intangibles	(22		)	(22		)
Restructuring	(2		)	(5		)
Strategic transaction and other expenses	(3		)	(4		)
Impairment and loss on sale of assets				(3		)
Stock compensation expense	(5		)	(7		)
Foreign exchange on intercompany loans and market value adjustments on forwards	1			1
Interest expense	(21		)	(21		)
Interest income	7			6
Income from continuing operations before income taxes	71			107
Income tax expense	27			37
Equity in earnings of affiliates	4			4
Income from continuing operations	48			74
Income (loss) from discontinued operations	2			(1		)
Net income	$	50		$	73