Segments

3 Months Ended

Mar. 31, 2012

Segments

Note 16. 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 – LVD and Commercial

Vehicle – Off-Highway, Power Technologies and Structures.

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 —

	2012							2011
			Inter-							Inter-
Three Months Ended	External		Segment			Segment		External		Segment			Segment
March 31,	Sales		Sales			EBITDA		Sales		Sales			EBITDA
LVD	$	727	$	58		$	63	$	673	$	56		$	66
Power Technologies		268		5			40		267		7			40
Commercial Vehicle		551		33			61		475		29			43
Off-Highway		418		15			49		373		15			41
Structures		13					2		11
Eliminations and other				(111	)				1		(107	)
Total	$	1,977	$	-		$	215	$	1,800	$	-		$	190

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

	Three Months Ended
	March 31,
	2012			2011
Segment EBITDA	$	215		$	190
Corporate expense and other items, net		(3	)		(9	)
Depreciation		(49	)		(55	)
Amortization of intangibles		(22	)		(21	)
Restructuring		(6	)		(30	)
Loss on extinguishment of debt					(53	)
Strategic transaction and other expenses		(5	)		(4	)
Loss on sale of assets		(3	)		(1	)
Stock compensation expense		(7	)		(2	)
Foreign exchange on intercompany loans
and market value adjustments on forwards		1			(1	)
Interest expense		(21	)		(19	)
Interest income		6			7
Income before income taxes		106			2
Income tax expense		37			31
Equity in earnings of affiliates		4			4
Net income (loss)	$	73		$	(25	)