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Note 18 - Segments
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 18. Segments

 

We are a global provider of high-technology products to virtually every major vehicle manufacturer in the world. We also serve the stationary industrial market. Our technologies include drive systems (axles, driveshafts, transmissions, and wheel and track drives); motion systems (winches, slew drives, and hub drives); electrodynamic technologies (motors, inverters, software and control systems, battery-management systems, and fuel cell plates); sealing solutions (gaskets, seals, cam covers, and oil pan modules); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding); and digital solutions (active and passive system controls and descriptive and predictive analytics). We serve our global light vehicle, medium/heavy vehicle and off-highway markets through four operating segments – Light Vehicle Drive Systems (Light Vehicle), Commercial Vehicle Drive and Motion Systems (Commercial Vehicle), Off-Highway Drive and Motion Systems (Off-Highway) and Power Technologies, which is the center of excellence for sealing and thermal-management technologies that span all customers in our on-highway and off-highway markets. These operating segments have global responsibility and accountability for business commercial activities and financial performance.

 

Dana evaluates the performance of its operating segments based on external sales and segment EBITDA. Segment EBITDA is a primary driver of cash flows from operations and a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. Our segments are charged for corporate and other shared administrative costs.  Segment EBITDA may not be comparable to similarly titled measures reported by other companies.

 

Segment information

 

   

2020

   

2019

 

Three Months Ended September 30,

 

External Sales

   

Inter-Segment Sales

   

Segment EBITDA

   

External Sales

   

Inter-Segment Sales

   

Segment EBITDA

 

Light Vehicle

  $ 913     $ 27     $ 89     $ 930     $ 30     $ 113  

Commercial Vehicle

    314       20       16       398       27       33  

Off-Highway

    507       12       65       582       3       79  

Power Technologies

    260       6       34       254       7       28  

Eliminations and other

            (65 )                     (67 )        

Total

  $ 1,994     $     $ 204     $ 2,164     $     $ 253  
                                                 

Nine Months Ended September 30,

                                               

Light Vehicle

  $ 2,058     $ 76     $ 140     $ 2,763     $ 99     $ 333  

Commercial Vehicle

    847       49       29       1,266       80       115  

Off-Highway

    1,440       30       175       1,808       13       264  

Power Technologies

    653       13       63       796       17       90  
Eliminations and other             (168 )                     (209 )        

Total

  $ 4,998     $     $ 407     $ 6,633     $     $ 802  

 

Reconciliation of segment EBITDA to consolidated net income

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2020

  

2019

  

2020

  

2019

 

Segment EBITDA

 $204  $253  $407  $802 

Corporate expense and other items, net

  (3)  (3)  (6)  (9)

Depreciation

  (88)  (82)  (257)  (235)

Amortization

  (6)  (4)  (15)  (12)

Non-service cost components of pension and OPEB costs

  (3)  (4)  (8)  (19)

Restructuring charges, net

  (2)  (5)  (21)  (23)

Stock compensation expense

  (2)  (5)  (5)  (15)

Strategic transaction expenses

  (4)  (8)  (15)  (32)

Impairment of goodwill

        (51)   

Acquisition related inventory adjustments

     (3)     (12)

Non-income tax legal judgment

           6 

Other items

  (7)     (5)  (9)

Pension settlement charges, net

     (2)     (260)

Earnings before interest and income taxes

  89   137   24   182 
Write-off deferred financing costs        (5)   

Interest income

  3   3   7   8 

Interest expense

  38   31   99   92 

Earnings (loss) before income taxes

  54   109   (73)  98 

Income tax expense (benefit)

  16   5   34   (27)

Equity in earnings of affiliates

  7   8   17   22 

Net income (loss)

 $45  $112  $(90) $147