Note 21 - Segments, Geographical Area and Major Customer Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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 —

			Inter-
	External		Segment			Segment		Capital				Net
2020	Sales		Sales			EBITDA		Spend		Depreciation		Assets
Light Vehicle	$	3,038	$	104		$	239	$	131	$	167	$	1,432
Commercial Vehicle		1,181		71			36		41		34		808
Off-Highway		1,970		44			234		67		91		1,348
Power Technologies		917		19			94		38		32		360
Eliminations and other				(238	)				49		21		146
Total	$	7,106	$	—		$	603	$	326	$	345	$	4,094
2019
Light Vehicle	$	3,609	$	124		$	438	$	179	$	149	$	1,369
Commercial Vehicle		1,611		100			138		52		37		897
Off-Highway		2,360		17			330		85		87		1,364
Power Technologies		1,040		23			117		46		30		367
Eliminations and other				(264	)				64		19		124
Total	$	8,620	$	—		$	1,023	$	426	$	322	$	4,121
2018
Light Vehicle	$	3,575	$	133		$	398	$	195	$	124	$	1,288
Commercial Vehicle		1,612		107			146		27		38		811
Off-Highway		1,844		12			285		36		43		707
Power Technologies		1,112		23			149		36		30		363
Eliminations and other				(275	)				31		25		29
Total	$	8,143	$	—		$	978	$	325	$	260	$	3,198

Net assets include accounts receivable, inventories, other current assets, goodwill, intangibles, investments in affiliates, other noncurrent assets, net property, plant and equipment, accounts payable and current accrued liabilities.

Reconciliation of segment EBITDA to consolidated net income —

	2020			2019			2018
Segment EBITDA	$	603		$	1,023		$	978
Corporate expense and other items, net		(10	)		(4	)		(21	)
Depreciation		(345	)		(322	)		(260	)
Amortization		(20	)		(17	)		(10	)
Non-service cost components of pension and OPEB costs		(10	)		(23	)		(15	)
Restructuring charges, net		(34	)		(29	)		(25	)
Stock compensation expense		(14	)		(19	)		(16	)
Strategic transaction expenses, net of transaction breakup fee income		(20	)		(41	)		(18	)
Amounts attributable to previously divested/closed operations		(1	)		(5	)
Impairment of goodwill and indefinite-lived intangible asset		(51	)		(6	)		(20	)
Gain on investment in Hyliion		33
Acquisition related inventory adjustments					(13	)
Non-income tax legal judgment					6
Pension settlement charges					(259	)
Gain on disposal group held for sale								3
Gain on liquidation of foreign subsidiary					12
Other items		(7	)		(11	)		(17	)
Earnings before interest and income taxes		124			292			579
Loss on extinguishment of debt		(8	)		(9	)
Interest income		9			10			11
Interest expense		138			122			96
Earnings (loss) before income taxes		(13	)		171			494
Income tax expense (benefit)		58			(32	)		78
Equity in earnings of affiliates		20			30			24
Net income (loss)	$	(51	)	$	233		$	440

Reconciliation of segment net assets to consolidated total assets —

	2020		2019
Segment net assets	$	4,094	$	4,121
Accounts payable and other current liabilities		1,863		1,769
Other current and long-term assets		1,419		1,330
Consolidated total assets	$	7,376	$	7,220

Geographic information — Of our 2020 consolidated net sales, the U.S., Italy, Germany and China account for 48%, 14%, 6% and 5%, respectively. No other country accounted for more than 5% of our consolidated net sales during 2020. 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
	2020		2019		2018		2020		2019		2018
North America
United States	$	3,404	$	4,069	$	3,613	$	957	$	972	$	860
Other North America		198		404		493		106		105		87
Total		3,602		4,473		4,106		1,063		1,077		947
Europe
Italy		993		1,186		971		252		248		138
Germany		429		478		513		132		131		133
Other Europe		787		942		1,000		310		265		241
Total		2,209		2,606		2,484		694		644		512
South America		358		509		546		97		126		129
Asia Pacific
China		379		321		311		111		106		91
Other Asia Pacific		558		711		696		286		312		171
Total		937		1,032		1,007		397		418		262
Total	$	7,106	$	8,620	$	8,143	$	2,251	$	2,265	$	1,850

Sales to major customers — Ford and FCA are the only individual customers to whom sales have exceeded 10% of our consolidated sales in each of the past three years. Sales to Ford were $1,436 (20%) in 2020, $1,753 (20%) in 2019 and $1,646 (20%) in 2018. Sales to FCA (via a directed supply relationship) exceeded the threshold in 2020 at $839 (12%), 2019 at $988 (11%) and 2018 at $911 (11%).