Note 16 - Other Income (Expense), Net

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Other Income and Other Expense Disclosure [Text Block]

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Non-service cost components of pension and OPEB costs	$	(3	)	$	(4	)	$	(8	)	$	(19	)
Government grants and incentives		3			3			9			11
Foreign exchange gain (loss)		(2	)		(1	)		5			(11	)
Strategic transaction expenses		(4	)		(8	)		(15	)		(32	)
Non-income tax legal judgment											6
Other, net		(2	)		2			4			14
Other income (expense), net	$	(8	)	$	(8	)	$	(5	)	$	(31	)

Foreign exchange gains and losses on cross-currency intercompany loan balances that are not of a long-term investment nature are included above. Foreign exchange gains and losses on intercompany loans that are permanently invested are reported in OCI. Foreign exchange loss in 2019 included a loss on the undesignated Swiss franc notional deal contingent forward related to the ODS acquisition. See Note 12 for additional information.

Strategic transaction expenses relate primarily to costs incurred in connection with acquisition and divestiture related activities, including costs to complete the transaction and post-closing integration costs. Strategic transaction expenses in 2020 were primarily attributable to the acquisitions of ODS and Nordresa and certain other strategic initiatives. Strategic transaction expenses in 2019 were primarily attributable to the acquisition of ODS. See Note 2 for additional information.

During the first quarter of 2019, we won a legal judgment regarding the methodology used to calculate PIS/COFINS tax in Brazil.

Included in other noncurrent assets in our September 30, 2020 balance sheet are $16 of convertible notes receivable from our investment in Hyliion Inc. On October 1, 2020, Hyliion completed its merger with Tortoise Acquisition Corp. The business combination will result in the combined company being renamed Hyliion Holdings Corp., with its common stock being listed on the New York Stock Exchange under the ticker symbol HYLN. Effective with the completed merger, our notes receivable were converted into 2,988,229 common shares of HYLN. Our investment in Hyliion will be included in noncurrent marketable securities and carried at fair value with changes in fair value included in net income in future periods. The strategic partnership with Hyliion establishes Dana as the preferred supplier for e-propulsion systems to Hyliion as long as Dana maintains a minimum equity investment in Hyliion.