Note 19 - Equity Affiliates

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

We have a number of investments in entities that engage in the manufacture and supply of vehicular parts (primarily axles, axle housings, driveshafts and wheel-end braking systems) and motors for electric vehicles and industrial applications.

Equity method investments exceeding $5 at September 30, 2020 — 

	Ownership Percentage	Investment
Dongfeng Dana Axle Co., Ltd. (DDAC)	50%	$	94
Bendix Spicer Foundation Brake, LLC	20%		56
Axles India Limited	48%		8
All others as a group			14
Investments in equity affiliates			172
Investments in affiliates carried at cost			2
Investments in affiliates		$	174

Summarized financial information for DDAC — 

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Sales	$	236	$	178	$	691	$	616
Gross profit	$	27	$	22	$	91	$	66
Earnings before income taxes	$	13	$	9	$	35	$	29
Net income	$	11	$	9	$	29	$	30
Dana's equity in earnings of affiliate	$	6	$	4	$	14	$	14

On October 1, 2020, we received a $4 cash dividend from Bendix Spicer Foundation Brake, LLC (BSFB). Immediately following the receipt of the cash dividend, we sold our 20% ownership interest in BSFB to Bendix Commercial Vehicle Systems LLC. We received $51 at closing, consisting of $21 in cash, a note receivable of $25 and deferred proceeds of $5. The proceeds received approximated the carrying value of our investment in BSFB. The note receivable and deferred proceeds are due in one year and bear interest at 1.65%. The deferred proceeds are subject to adjustment based on BSFB’s cash, working capital and indebtedness balances as of the closing date.

On October 20, 2020, we acquired a 49% ownership interest in Pi Innovo Holdings Limited (Pi Innovo) for consideration of $17, using cash on hand. The consideration paid is subject to adjustment based on cash and working capital balances as of the closing date. Pi Innovo designs, develops and manufactures electronic control units spanning a range of applications and industries.  We will account for our investment in Pi Innovo by applying the equity method.