Note 19 - Segments

6 Months Ended

Jun. 30, 2021

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.

During the second quarter of 2021, we realigned certain of our Indian operations previously reported in our Commercial Vehicle operating segment to be reported within our Off-Highway operating segment and we realigned certain of our Brazilian operations previously reported in our Off-Highway operating segment to be reported within our Commercial Vehicle operating segment. Prior period amounts have been recast to conform with our current operating segment reporting structure.

Segment information —

	2021							2020
Three Months Ended June 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	890	$	47		$	87	$	337	$	19		$	(32	)
Commercial Vehicle		387		23			18		203		8			(6	)
Off-Highway		669		22			97		398		9			36
Power Technologies		259		6			32		140		1			(1	)
Eliminations and other				(98	)						(37	)
Total	$	2,205	$	—		$	234	$	1,078	$	—		$	(3	)
Six Months Ended June 30,
Light Vehicle	$	1,881	$	87		$	187	$	1,145	$	49		$	51
Commercial Vehicle		736		48			33		535		28			15
Off-Highway		1,304		36			176		931		19			108
Power Technologies		547		12			73		393		7			29
Eliminations and other				(183	)						(103	)
Total	$	4,468	$	—		$	469	$	3,004	$	—		$	203

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Segment EBITDA	$	234		$	(3	)	$	469		$	203
Corporate expense and other items, net		(1	)		(2	)		(2	)		(3	)
Depreciation		(92	)		(84	)		(180	)		(169	)
Amortization		(5	)		(5	)		(12	)		(9	)
Non-service cost components of pension and OPEB costs		(3	)		(3	)		(5	)		(5	)
Restructuring charges, net					(16	)		(1	)		(19	)
Stock compensation expense		(4	)		1			(9	)		(3	)
Strategic transaction expenses		(5	)		(5	)		(8	)		(11	)
Gain (loss) on investment in Hyliion		3						(14	)
Impairment of goodwill											(51	)
Loss on disposal group held for sale								(7	)
Loss on de-designation of fixed-to-fixed cross currency swaps		(9	)					(9	)
Other items		(5	)		5			(1	)		2
Earnings (loss) before interest and income taxes		113			(112	)		221			(65	)
Loss on extinguishment of debt		(24	)		(5	)		(24	)		(5	)
Interest income		2			2			4			4
Interest expense		34			32			68			61
Earnings (loss) before income taxes		57			(147	)		133			(127	)
Income tax expense		14			34			36			18
Equity in earnings of affiliates		10			8			24			10
Net income (loss)	$	53		$	(173	)	$	121		$	(135	)