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 June 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
LVD	$	673	$	33		$	71	$	735	$	44		$	76
Power Technologies	265		6			39		262		6			37
Commercial Vehicle	498		32			61		513		39			57
Off-Highway	364		12			46		426		17			56
Eliminations and other			(83		)					(106		)
Total	$	1,800	$	—		$	217	$	1,936	$	—		$	226

Six Months Ended June 30,
LVD	$	1,292	$	66		$	112	$	1,462	$	102		$	139
Power Technologies	521		11			75		530		11			77
Commercial Vehicle	956		64			102		1,064		72			118
Off-Highway	707		24			87		844		32			105
Eliminations and other			(165		)					(217		)
Total	$	3,476	$	—		$	376	$	3,900	$	—		$	439

Reconciliation of segment EBITDA to consolidated net income —



	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Segment EBITDA	$	217		$	226		$	376		$	439
Corporate expense and other items, net	(2		)	(4		)	(3		)	(7		)
Depreciation	(40		)	(46		)	(82		)	(94		)
Amortization of intangibles	(21		)	(22		)	(43		)	(44		)
Restructuring	(4		)	(19		)	(6		)	(24		)
Strategic transaction and other items	(3		)	(1		)	(6		)	(5		)
Write off of deferred financing costs	(2		)				(2		)
Recognition of unrealized gain on payment-in-kind note receivable	5						5
Impairment and loss on sale of assets				(3		)				(6		)
Stock compensation expense	(4		)	(2		)	(9		)	(9		)
Foreign exchange on intercompany loans and market value adjustments on forwards	(1		)	(1		)
Interest expense	(21		)	(20		)	(42		)	(41		)
Interest income	5			5			12			11
Income from continuing operations before income taxes	129			113			200			220
Income tax expense	35			27			62			64
Equity in earnings of affiliates	3			2			7			6
Income from continuing operations	97			88			145			162
Income (loss) from discontinued operations	(1		)	1			1
Net income	$	96		$	89		$	146		$	162