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Note 7 - Redeemable Noncontrolling Interests
6 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Redeemable Noncontrolling Interest Disclosure [Text Block]

Note 7. Redeemable Noncontrolling Interests

 

Hydro-Québec holds direct 45% redeemable noncontrolling interest in Dana TM4 Inc. and Dana TM4 USA, LLC and indirect 45% ownership interests in Dana (Beijing) Electric Motor Co., Ltd., Dana TM4 Italia S.r.l., Ashwoods Innovations Ltd. and Dana TM4 Private Limited (together Dana TM4). Hydro-Québec may put all, and not less than all, of its ownership interests in Dana TM4 to Dana at fair value. 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

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2021

  

2020

  

2021

  

2020

 

Balance, beginning of period

 $182  $155  $180  $167 

Capital contribution from redeemable noncontrolling interest

  2       3   2 

Sale of redeemable noncontrolling interest

      7       7 

Adjustment to redemption value

  4       8    

Other

  (1)      (1)    

Comprehensive income (loss) adjustments:

                

Net income (loss) attributable to redeemable noncontrolling interests

  (4)  1   (8)  (21)

Other comprehensive income (loss) attributable to redeemable noncontrolling interests

  11   (4)  12   4 

Balance, end of period

 $194  $159  $194  $159