Note 17. 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 five operating segments – two on-highway segments, Light Vehicle Driveline (LVD) and Commercial Vehicle, Off-Highway, Power Technologies and Structures. The reporting of our operating segment results was reorganized in the first quarter of 2011 in line with changes in our management structure. Certain operations in South America were moved from the LVD segment to the Commercial Vehicle segment as the activities of these operations have become more closely aligned with the commercial vehicle market. The results of these segments have been retroactively adjusted to conform to the current reporting structure.

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. Management believes that adjusted EBITDA is an important measure since the financial covenants in our debt agreements are based, in part, on adjusted EBITDA. Our segments are charged for corporate and other shared administrative costs.

We used the following information to evaluate our operating segments:

	2011							2010
			Inter-							Inter-
Three Months Ended	External		Segment			Segment		External		Segment			Segment
June 30,	Sales		Sales			EBITDA		Sales		Sales			EBITDA
LVD	$	654	$	53		$	60	$	621	$	48		$	64
Power Technologies		269		7			37		234		7			35
Commercial Vehicle		583		30			55		364		22			39
Off-Highway		414		16			51		287		10			25
Structures		13					1		18					(3	)
Eliminations and other				(106	)				2		(87	)
Total	$	1,933	$	-		$	204	$	1,526	$	-		$	160

Six Months Ended
June 30,
LVD	$	1,327	$	109		$	126	$	1,169	$	92		$	106
Power Technologies		536		14			77		462		13			62
Commercial Vehicle		1,058		59			98		695		44			63
Off-Highway		787		31			92		544		18			46
Structures		24					1		162		2			8
Eliminations and other		1		(213	)				2		(169	)
Total	$	3,733	$	-		$	394	$	3,034	$	-		$	285

The following table reconciles segment EBITDA to consolidated income (loss) before income taxes:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Segment EBITDA	$	204		$	160		$	394		$	285
Corporate expense and other items, net		(3	)		(6	)		(12	)		(23	)
Depreciation		(55	)		(61	)		(110	)		(123	)
Amortization of intangibles		(24	)		(19	)		(45	)		(38	)
Restructuring		(11	)		(31	)		(41	)		(50	)
Loss on extinguishment of debt								(53	)		(4	)
Other expenses								(4	)
Loss on sale of assets, net					(1	)		(1	)		(6	)
Stock compensation expense		(2	)		(3	)		(4	)		(5	)
Foreign exchange on intercompany loans,
Venezuelan currency devaluation and market value adjustments on forwards		(1	)		(3	)		(2	)		(15	)
Interest expense		(20	)		(20	)		(39	)		(46	)
Interest income		6			7			13			13
Income (loss) before income taxes	$	94		$	23		$	96		$	(12	)