Segments

We are a global provider of high-technology products to virtually every major vehicle and engine manufacturer in the world. We also serve the stationary industrial market. Our technologies include drive and motion products (axles, driveshafts, planetary hub drives, power-transmission products, tire-management products, and transmissions); sealing solutions (gaskets, seals, heat shields, and fuel-cell plates); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, and exhaust-gas heat recovery); and fluid-power products (pumps, valves, motors, and controls). We serve our global light vehicle, medium/heavy vehicle and off-highway markets through four operating segments – Light Vehicle Driveline Technologies (Light Vehicle), Commercial Vehicle Driveline Technologies (Commercial Vehicle), Off-Highway Drive and Motion Technologies (Off-Highway) and Power Technologies, which is the center of excellence for sealing and thermal-management technologies that span all customers in our on-highway and off-highway markets. These operating segments have global responsibility and accountability for business commercial activities and financial performance.

Dana evaluates the performance of its operating segments based on external sales and segment EBITDA. Segment EBITDA is a primary driver of cash flows from operations and a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. Our segments are charged for corporate and other shared administrative costs. Segment EBITDA may not be comparable to similarly titled measures reported by other companies.

Segment information —



	2017							2016
Three Months Ended September 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	805	$	33		$	91	$	631	$	27		$	73
Commercial Vehicle	371		25			33		294		21			23
Off-Highway	384		1			55		199					28
Power Technologies	271		5			41		260		3			42
Eliminations and other			(64		)					(51		)
Total	$	1,831	$	—		$	220	$	1,384	$	—		$	166

Nine Months Ended September 30,
Light Vehicle	$	2,369	$	96		$	273	$	1,913	$	91		$	202
Commercial Vehicle	1,057		72			91		976		64			81
Off-Highway	1,107		2			157		692		2			97
Power Technologies	839		12			132		798		11			120
Eliminations and other			(182		)					(168		)
Total	$	5,372	$	—		$	653	$	4,379	$	—		$	500

Prior to the third quarter of 2017, our Crossville, Tennessee, distribution center rolled up within our Commercial Vehicle operating segment for purposes of inter-segment sales reporting. Beginning in the third quarter of 2017, the distribution center has been split between our Commercial Vehicle and Off-Highway operating segments. This change in management reporting has resulted in a decrease in the inter-segment sales reported by our Off-Highway operating segment. Prior period amounts have been recast to conform with the current presentation. This change in management reporting had no impact on segment reporting of external sales or segment EBITDA.

Reconciliation of segment EBITDA to consolidated net income —



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Segment EBITDA	$	220		$	166		$	653		$	500
Corporate expense and other items, net	(4		)	2			(15		)	(6		)
Depreciation	(58		)	(45		)	(162		)	(129		)
Amortization of intangibles	(4		)	(3		)	(10		)	(7		)
Restructuring	(2		)	(17		)	(14		)	(23		)
Stock compensation expense	(7		)	(4		)	(17		)	(11		)
Strategic transaction expenses	(3		)	(3		)	(20		)	(6		)
Acquisition related inventory adjustments							(14		)
Other items	(2		)				(5		)	(4		)
Amounts attributable to previously divested/closed operations	(1		)				2			3
Earnings before interest and income taxes	139			96			398			317
Loss on extinguishment of debt	(13		)				(19		)	(17		)
Interest expense	(25		)	(27		)	(79		)	(84		)
Interest income	3			3			8			8
Earnings before income taxes	104			72			308			224
Income tax expense	33			13			94			66
Equity in earnings of affiliates	2			2			12			6
Net income	$	73		$	61		$	226		$	164