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, transmissions, and motors, power inverters and controls systems for electric vehicles); 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 —



2018	External Sales		Inter- Segment Sales			Segment EBITDA		Capital Spend		Depreciation		Net Assets
Light Vehicle	$	3,575	$	133		$	398	$	195	$	124	$	1,264
Commercial Vehicle	1,612		107			146		27		38		577
Off-Highway	1,844		12			285		36		43		709
Power Technologies	1,112		23			149		36		30		376
Eliminations and other			(275		)			31		25		83
Total	$	8,143	$	—		$	978	$	325	$	260	$	3,009

2017
Light Vehicle	$	3,172	$	130		$	359	$	279	$	88	$	1,192
Commercial Vehicle	1,412		97			116		31		41		575
Off-Highway	1,521		4			212		32		40		698
Power Technologies	1,104		17			168		32		29		380
Eliminations and other			(248		)			19		22		124
Total	$	7,209	$	—		$	855	$	393	$	220	$	2,969

2016
Light Vehicle	$	2,607	$	113		$	279	$	208	$	71	$	887
Commercial Vehicle	1,254		83			96		34		33		573
Off-Highway	909		3			129		21		20		267
Power Technologies	1,056		14			158		32		29		330
Eliminations and other			(213		)			27		20		308
Total	$	5,826	$	—		$	662	$	322	$	173	$	2,365

Upon our adoption of ASU 2017-07 on January 1, 2018, we changed our measurement of segment profit to exclude the non-service cost components of pension and OPEB costs. See Note 1 for additional information on ASU 2017-07. Prior period segment EBITDA amounts have not been recast due to the insignificance of the adjustments. Had the prior period amounts been recast to conform with the current presentation, segment EBITDA for 2017 and 2016 would have been $359 and $275 for Light Vehicle, $119 and $98 for Commercial Vehicle, $213 and $130 for Off-Highway and $173 and $163 for Power Technologies.

Net assets include accounts receivable, inventories, other current assets, goodwill, intangibles, investments in affiliates, other noncurrent assets, net property, plant and equipment, accounts payable and current accrued liabilities.

Reconciliation of segment EBITDA to consolidated net income —



	2018			2017			2016
Segment EBITDA	$	978		$	855		$	662
Corporate expense and other items, net	(21		)	(20		)	(2		)
Depreciation	(260		)	(220		)	(173		)
Amortization of intangibles	(10		)	(13		)	(9		)
Non-service cost components of pension and OPEB costs	(15		)
Restructuring charges, net	(25		)	(14		)	(36		)
Stock compensation expense	(16		)	(23		)	(17		)
Strategic transaction expenses, net of transaction breakup fee income	(18		)	(25		)	(13		)
Acquisition related inventory adjustments				(14		)
Other items	(17		)	(11		)	(2		)
Gain (loss) on disposal group held for sale	3			(27		)
Loss on sale of subsidiaries							(80		)
Impairment of indefinite-lived intangible asset	(20		)
Distressed supplier costs							(1		)
Amounts attributable to previously divested/closed operations				2			3
Earnings before interest and income taxes	579			490			332
Loss on extinguishment of debt				(19		)	(17		)
Interest expense	96			102			113
Interest income	11			11			13
Earnings before income taxes	494			380			215
Income tax expense (benefit)	78			283			(424		)
Equity in earnings of affiliates	24			19			14
Net income	$	440		$	116		$	653

Reconciliation of segment net assets to consolidated total assets —



	2018		2017
Segment net assets	$	3,009	$	2,969
Accounts payable and other current liabilities	1,672		1,604
Other current and long-term assets	1,237		1,071
Consolidated total assets	$	5,918	$	5,644

Geographic information — Of our 2018 consolidated net sales, the U.S., Italy and Germany account for 44%, 12% and 6%, respectively. No other country accounted for more than 5% of our consolidated net sales during 2018. 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
	2018		2017		2016		2018		2017		2016
North America
United States	$	3,613	$	3,209	$	2,695	$	860	$	828	$	634
Other North America	493		479		433		87		82		80
Total	4,106		3,688		3,128		947		910		714
Europe
Italy	971		762		499		138		122		58
Germany	513		473		377		133		149		98
Other Europe	1,000		919		740		241		211		157
Total	2,484		2,154		1,616		512		482		313
South America	546		500		338		129		153		172
Asia Pacific	1,007		867		744		262		262		214
Total	$	8,143	$	7,209	$	5,826	$	1,850	$	1,807	$	1,413

Sales to major customers — Ford is the only individual customer to whom sales have exceeded 10% of our consolidated sales in each of the past three years. Sales to Ford were $1,646 (20%) in 2018, $1,553 (22%) in 2017 and $1,300 (22%) in 2016. Sales to FCA exceeded the threshold in 2018 at $911 (11%).