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 segment EBITDA is an important measure since the financial covenants in our debt agreements are based, in part, on 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
September 30,	Sales			Sales			EBITDA		Sales		Sales			EBITDA
LVD	$	689		$	50		$	74	$	602	$	57		$	63
Power Technologies		256			7			31		235		7			33
Commercial Vehicle		611			34			61		394		28			41
Off-Highway		385			15			42		271		12			23
Structures		12								13		1
Eliminations and other		(1	)		(106	)				1		(105	)
Total	$	1,952		$	-		$	208	$	1,516	$	-		$	160

Nine Months Ended
September 30,
LVD	$	2,016		$	159		$	200	$	1,771	$	149		$	169
Power Technologies		792			21			108		697		20			95
Commercial Vehicle		1,669			93			159		1,089		72			104
Off-Highway		1,172			46			134		815		30			69
Structures		36						1		175		3			8
Eliminations and other					(319	)				3		(274	)
Total	$	5,685		$	-		$	602	$	4,550	$	-		$	445

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Segment EBITDA	$	208		$	160		$	602		$	445
Corporate expense and other items, net		(8	)		(12	)		(20	)		(35	)
Depreciation		(53	)		(57	)		(163	)		(180	)
Amortization of intangibles		(23	)		(19	)		(68	)		(57	)
Restructuring		(24	)		(10	)		(65	)		(60	)
Loss on extinguishment of debt					(3	)		(53	)		(7	)
Gain on sale of equity investments		60						60
Other expenses		(5	)					(9	)
Loss on sale of assets and impairments		(5	)		(1	)		(6	)		(7	)
Stock compensation expense		(1	)		(4	)		(5	)		(9	)
Foreign exchange on intercompany loans,
Venezuelan currency devaluation and market value adjustments on forwards		(1	)		2			(3	)		(13	)
Interest expense		(20	)		(22	)		(59	)		(68	)
Interest income		7			8			20			21
Income before income taxes	$	135		$	42		$	231		$	30