Note 9 - Redeemable Noncontrolling Interests

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Redeemable Noncontrolling Interest Disclosure [Text Block]

In connection with the acquisition of a controlling interest in TM4 from Hydro-Québec on June 22, 2018, we recognized $102 for Hydro-Québec's 45% redeemable noncontrolling interest in TM4. On July 29, 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in SME and an additional indirect 22.5% redeemable noncontrolling interest in PEPS which resulted in recognition of additional redeemable noncontrolling interest of $64. On April 14, 2020, Hydro-Québec acquired an indirect 45% redeemable noncontrolling interest in Ashwoods which resulted in recognition of additional redeemable noncontrolling interest of $7. The terms of the agreement provide Hydro-Québec with the right to put all, and not less than all, of its ownership interests in TM4, SME, PEPS and Ashwoods to Dana at fair value any time after June 22, 2021. See Note 2 for additional information.

Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the redeemable noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values. Redeemable noncontrolling interest adjustments of redemption value are recorded in retained earnings. We estimate the fair value of the redemption value using an income based approach based on discounted cash flow projections.  In determining fair value using discounted cash flow projections, we make significant assumptions and estimates about the extent and timing of future cash flows, including revenue growth rates, projected EBITDA, discount rates, terminal growth rates and exit multiples.

Reconciliation of changes in redeemable noncontrolling interests —

	2020			2019
Balance, beginning of period	$	167		$	100
Capital contribution from redeemable noncontrolling interest		4			4
Sale of redeemable noncontrolling interest		7			64
Adjustment to redemption value		38
Comprehensive income (loss) adjustments:
Net loss attributable to redeemable noncontrolling interests		(30	)		(6	)
Other comprehensive income (loss) attributable to redeemable noncontrolling interests		(6	)		5
Balance, end of period	$	180		$	167