Segments, Geographical Area and Major Customer Information

12 Months Ended

Dec. 31, 2011

Segments, Geographical Area and Major Customer Information

Note 18.Segments, Geographical Area and Major Customer Information

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.

In March 2010, we completed the sale of substantially all of our Structures segment with the sale of the Venezuelan operation being completed in December 2010. These operations were included in the Structures segment through the close date of the sale along with the Longview, Texas facility, which we retained.

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. The most significant impact on our ongoing results of operations as a result of applying fresh start accounting following our emergence from bankruptcy was higher depreciation and amortization. Management believes by using segment EBITDA, a performance measure which excludes depreciation and amortization, the comparability of results is enhanced. In addition, 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.

Segment information —

			Inter-
	External		Segment			Segment		Capital				Net
2011	Sales		Sales			EBITDA		Spend		Depreciation		Assets
LVD	$	2,696	$	206		$	262	$	71	$	90	$	730
Power Technologies		1,042		27			139		34		46		420
Commercial Vehicle		2,245		122			218		49		46		808
Off-Highway		1,560		63			166		21		22		432
Structures		48					1				6		25
Eliminations and other		1		(418	)				21		7		314
Total	$	7,592	$	-		$	786	$	196	$	217	$	2,729
2010
LVD	$	2,397	$	201		$	227	$	61	$	107	$	831
Power Technologies		927		26			125		17		50		434
Commercial Vehicle		1,463		102			139		15		46		664
Off-Highway		1,131		43			98		10		24		481
Structures		188		3			6		2		6		29
Eliminations and other		3		(375	)				15		5		132
Total	$	6,109	$	-		$	595	$	120	$	238	$	2,571
2009
LVD	$	1,884	$	127		$	122	$	30	$	129	$	925
Power Technologies		714		17			29		29		51		469
Commercial Vehicle		1,188		70			90		23		49		708
Off-Highway		850		26			38		4		29		563
Structures		592		9			35		9		44		148
Eliminations and other				(249	)				4		9		122
Total	$	5,228	$	-		$	314	$	99	$	311	$	2,935

Assets and liabilities of the Structures segment declined with the sale of substantially all of the Structural Products business in 2010. See Note 2 for more information.

Net assets include accounts receivable, inventories, prepaid expenses (excluding taxes), goodwill, investments in affiliates, net property, plant and equipment, accounts payable and certain accrued liabilities.

Reconciliation of segment EBITDA to consolidated net income (loss) —

	2011			2010			2009
Segment EBITDA	$	786		$	595		$	314
Corporate expense and other items, net		(21	)		(42	)		12
Depreciation		(217	)		(238	)		(311	)
Amortization of intangibles		(90	)		(76	)		(86	)
Restructuring		(87	)		(73	)		(118	)
Impairment of long-lived assets		(5	)					(156	)
Gain (loss) on extinguishment of debt		(53	)		(7	)		35
Gain on sale of equity investment		60
Warranty settlement					(25	)
Strategic transaction and other expenses		(14	)		(5	)		(14	)
Loss on sale of assets		(2	)		(3	)		(8	)
Stock compensation expense		(8	)		(14	)		(13	)
Foreign exchange on intercompany loans,
Venezuelan currency devaluation and
market value adjustments on forwards		(1	)		(18	)		6
Interest expense		(79	)		(89	)		(139	)
Interest income		27			30			24
Income (loss) before income taxes		296			35			(454	)
Income tax benefit (expense)		(85	)		(31	)		27
Equity in earnings of affiliates		21			11			(8	)
Net income (loss)	$	232		$	15		$	(435	)

Reconciliation of segment net assets to consolidated total assets —

	2011		2010
Net assets	$	2,729	$	2,571
Accounts payable and other current liabilities		1,321		1,167
Other current and long-term assets		1,255		1,363
Consolidated total assets	$	5,305	$	5,101

Geographic information — Of our consolidated net sales, the U.S., Brazil, Italy and Germany account for 40%, 13%, 10% and 6%, respectively. No other country accounts for more than 5% of our consolidated net sales. 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
	2011		2010		2009		2011		2010		2009
North America
United States	$	3,021	$	2,675	$	2,402	$	327	$	363	$	420
Other North America		364		285		257		147		162		178
Total		3,385		2,960		2,659		474		525		598
Europe
Italy		755		517		378		64		70		80
Germany		434		360		333		123		135		155
Other Europe		905		702		537		157		168		188
Total		2,094		1,579		1,248		344		373		423
South America
Brazil		1,011		535		426		149		130		157
Other South America		323		304		372		84		75		129
Total		1,334		839		798		233		205		286
Asia Pacific		779		731		523		234		248		242
Total	$	7,592	$	6,109	$	5,228	$	1,285	$	1,351	$	1,549

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 $1,276 (17%) in 2011, $1,180 (19%) in 2010 and $1,058 (20%) in 2009.

Export sales from the U.S. were $306, $281 and $228 in 2011, 2010 and 2009.