Segments, Geographical Area and Major Customer Information

12 Months Ended

Dec. 31, 2012

Segments, Geographical Area and Major Customer Information

Note 19.  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 four operating segments: Light Vehicle Driveline, Commercial Vehicle, Off-Highway and Power Technologies.

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
2012	Sales		Sales			EBITDA		Spend		Depreciation		Assets
LVD	$	2,743	$	186		$	263	$	47	$	82	$	708
Power Technologies		1,012		21			137		24		41		394
Commercial Vehicle		1,960		134			199		30		38		757
Off-Highway		1,509		54			189		22		18		399
Eliminations and other				(395	)				41		11		365
Total	$	7,224	$	-		$	788	$	164	$	190	$	2,623
2011
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
Eliminations and other		1		(418	)				21		13		339
Total	$	7,544	$	-		$	785	$	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
Eliminations and other		3		(372	)				17		11		161
Total	$	5,921	$	-		$	589	$	120	$	238	$	2,571

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 —

	2012			2011			2010
Segment EBITDA	$	788		$	785		$	589
Corporate expense and other items, net		(11	)		(21	)		(42	)
Expenses previously allocated to Structures		(1	)		(1	)		(4	)
Depreciation		(188	)		(212	)		(232	)
Amortization of intangibles		(87	)		(90	)		(76	)
Restructuring		(47	)		(82	)		(74	)
Loss on extinguishment of debt					(53	)		(7	)
Gain on sale of equity investment					60
Strategic transaction and other expenses		(9	)		(12	)		(5	)
Impairment and loss on sale of assets		(6	)		(7	)		(3	)
Stock compensation expense		(17	)		(8	)		(14	)
Foreign exchange on intercompany loans and market value adjustments on forwards		2			(1	)		(18	)
Interest expense		(84	)		(79	)		(89	)
Interest income		24			27			30
Income from continuing operations before income taxes		364			306			55
Income tax expense		51			87			30
Equity in earnings of affiliates		2			21			11
Income from continuing operations		315			240			36
Loss from discontinued operations					(8	)		(21	)
Net income	$	315		$	232		$	15
Reconciliation of segment net assets to consolidated total assets —
	2012			2011
Net assets	$	2,623		$	2,729
Accounts payable and other current liabilities		1,100			1,293
Other current and long-term assets		1,421			1,255
Consolidated total assets	$	5,144		$	5,277

Geographic information — Of our consolidated net sales, the U.S., Italy, Brazil and Germany account for 41%, 10%, 8% 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
	2012		2011		2010		2012		2011		2010
North America
United States	$	2,975	$	2,973	$	2,551	$	300	$	327	$	363
Other North America		396		364		285		138		147		162
Total		3,371		3,337		2,836		438		474		525
Europe
Italy		731		755		517		64		64		70
Germany		408		434		360		118		123		135
Other Europe		882		905		702		158		157		168
Total		2,021		2,094		1,579		340		344		373
South America
Brazil		574		1,011		535		136		149		130
Other South America		351		323		248		73		84		75
Total		925		1,334		783		209		233		205
Asia Pacific		907		779		723		252		234		248
Total	$	7,224	$	7,544	$	5,921	$	1,239	$	1,285	$	1,351

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 $1,254 (17%) in 2012, $1,276 (17%) in 2011 and $1,180 (20%) in 2010.

Export sales from the U.S. were $321, $306 and $281 in 2012, 2011 and 2010.