Equity Affiliates

We have a number of investments in entities that engage in the manufacture of vehicular parts – primarily axles, driveshafts and wheel-end braking systems – supplied to OEMs.

Dividends received from equity affiliates were $16, $16 and $10 in 2015, 2014 and 2013.

Equity method investments exceeding $5 at December 31, 2015 —



	Ownership Percentage	Investment
Dongfeng Dana Axle Co., Ltd.	50%	$	83
Bendix Spicer Foundation Brake, LLC	20%	49
Axles India Limited	48%	7
All others as a group		9
Investments in equity affiliates		148
Investment in affiliates carried at cost		2
Investment in affiliates		$	150

Our equity method investments in Dongfeng Dana Axle Co., Ltd. (DDAC), Bendix Spicer Foundation Brake, LLC and Axles India Limited are included in the net assets of our Commercial Vehicle operating segment.

The significant decline in China's commercial vehicle market during 2015 resulted in a series of monthly operating losses by DDAC. These factors when combined with updated long-range plan information received from DDAC in the fourth quarter of 2015, which incorporated China's projected "new normal" future growth rate, indicated that we may not be able to recover the carrying value of our investment in DDAC. During the fourth quarter of 2015, we calculated the fair value of our investment in DDAC to determine if we had an other-than-temporary decline in the carrying value of our investment. We used both the discounted cash flow (an income approach) and guideline public company (a market approach) methods, weighting each equally, to fair value our investment in DDAC. The discounted cash flow method used DDAC's updated long-range plan and focuses on estimating the expected after-tax cash flows attributable to the subject company over its life and converting these after-tax cash flows to present value through discounting. The discount rate of 16.0% which was used in our assessment accounts for both the time value of money and subject company risk factors. The guideline public company method focuses on comparing a subject company to reasonably similar (or "guideline") publicly-traded companies. Under this method, valuation multiples are: (i) derived from the operating data of selected guideline public companies; (ii) evaluated and adjusted based on the strengths and weaknesses of the subject company relative to the selected guideline companies; and (iii) applied to the operating data of the subject company to arrive at an indication of fair value. The carrying value of our investment in DDAC exceeded the calculated fair value by $39. The $39 impairment charge has been included in equity in earnings of affiliates.

The carrying value of our equity method investments at December 31, 2015 was $29 more than our share of the affiliates’ book value, including $19 attributable to goodwill. The difference between the investment carrying value and the amount of underlying equity in assets, excluding goodwill, is being amortized on a straight-line basis over the underlying assets’ estimated useful lives of five to forty-five years.

Summarized financial information for DDAC and other equity affiliates on a combined basis —



	DDAC							Other Equity Affiliates Combined
	2015			2014		2013		2015		2014		2013
Sales	$	554		$	762	$	835	$	582	$	564	$	497
Gross profit	$	45		$	82	$	82	$	113	$	100	$	79
Pre-tax income	$	(14	)	$	23	$	19	$	42	$	33	$	25
Net income	$	(6	)	$	17	$	20	$	40	$	32	$	24
Dana's equity earnings in affiliate	$	(45	)	$	5	$	7	$	11	$	8	$	5



	DDAC				Other Equity Affiliates Combined
	2015		2014		2015		2014
Current assets	$	406	$	552	$	180	$	192
Noncurrent assets	206		177		71		73
Total assets	$	612	$	729	$	251	$	265

Current liabilities	$	385	$	506	$	97	$	123
Noncurrent liabilities	95		61		12		13
Total liabilities	$	480	$	567	$	109	$	136