Segments, Geographical Area and Major Customer Information

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	External Sales		Inter- Segment Sales			Segment EBITDA		Capital Spend		Depreciation		Net Assets
Light Vehicle	$	3,172	$	130		$	359	$	279	$	88	$	1,538
Commercial Vehicle	1,412		97			116		31		41		714
Off-Highway	1,521		4			212		32		40		724
Power Technologies	1,104		17			168		32		29		488
Eliminations and other			(248		)			19		22		423
Total	$	7,209	$	—		$	855	$	393	$	220	$	3,887

2016
Light Vehicle	$	2,607	$	113		$	279	$	208	$	71	$	1,194
Commercial Vehicle	1,254		83			96		34		33		699
Off-Highway	909		3			129		21		20		262
Power Technologies	1,056		14			158		32		29		440
Eliminations and other			(213		)			27		20		760
Total	$	5,826	$	—		$	662	$	322	$	173	$	3,355

2015
Light Vehicle	$	2,482	$	126		$	262	$	140	$	63	$	1,002
Commercial Vehicle	1,533		95			100		33		32		692
Off-Highway	1,040		3			147		18		20		310
Power Technologies	1,005		15			149		34		28		423
Eliminations and other			(239		)			35		15		467
Total	$	6,060	$	—		$	658	$	260	$	158	$	2,894

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.

Net assets include certain cash balances, accounts receivable, inventories, other current assets, certain intangibles, investments in affiliates, other noncurrent assets, net property, plant and equipment, notes payable and short term debt, accounts payable and current accrued liabilities.

Reconciliation of segment EBITDA to consolidated net income —



	2017			2016			2015
Segment EBITDA	$	855		$	662		$	658
Corporate expense and other items, net	(20		)	(2		)	(6		)
Depreciation	(220		)	(173		)	(158		)
Amortization of intangibles	(13		)	(9		)	(16		)
Restructuring charges, net	(14		)	(36		)	(15		)
Stock compensation expense	(23		)	(17		)	(14		)
Strategic transaction expenses	(25		)	(13		)	(4		)
Acquisition related inventory adjustments	(14		)
Other items	(11		)	(2		)	(6		)
Loss on disposal group held for sale	(27		)
Loss on sale of subsidiaries				(80		)
Impairment of long-lived assets							(36		)
Distressed supplier costs				(1		)	(8		)
Amounts attributable to previously divested/closed operations	2			3			(6		)
Gain on derecognition of noncontrolling interest							5
Earnings before interest and income taxes	490			332			394
Loss on extinguishment of debt	(19		)	(17		)	(2		)
Interest expense	102			113			113
Interest income	11			13			13
Earnings from continuing operations before income taxes	380			215			292
Income tax expense (benefit)	283			(424		)	82
Equity in earnings (losses) of affiliates	19			14			(34		)
Income from continuing operations	116			653			176
Income from discontinued operations							4
Net income	$	116		$	653		$	180

Reconciliation of segment net assets to consolidated total assets —



	2017		2016
Segment net assets	$	3,887	$	3,355
Accounts payable and other current liabilities	1,704		1,254
Other current and long-term assets	53		251
Consolidated total assets	$	5,644	$	4,860

Geographic information — Of our 2017 consolidated net sales, the U.S., Italy and Germany account for 45%, 11% and 7%, respectively. No other country accounted for more than 5% of our consolidated net sales during 2017. Sales are attributed to the location of the product entity recording the sale. Long-lived assets represent property, plant and equipment.



	Net Sales						Long-Lived Assets
	2017		2016		2015		2017		2016		2015
North America
United States	$	3,209	$	2,695	$	2,805	$	828	$	634	$	441
Other North America	479		433		405		82		80		90
Total	3,688		3,128		3,210		910		714		531
Europe
Italy	762		499		570		122		58		58
Germany	473		377		368		149		98		100
Other Europe	919		740		785		211		157		153
Total	2,154		1,616		1,723		482		313		311
South America	500		338		377		153		172		99
Asia Pacific	867		744		750		262		214		226
Total	$	7,209	$	5,826	$	6,060	$	1,807	$	1,413	$	1,167

Sales to major customers — Ford is the only individual customer to whom sales have exceeded 10% of our consolidated sales in the past three years. Sales to Ford for the three most recent years were $1,553 (22%) in 2017, $1,300 (22%) in 2016 and $1,187 (20%) in 2015.