Note 19 - Segments

6 Months Ended

Jun. 30, 2022

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 —

	2022							2021
Three Months Ended June 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	1,028	$	40		$	33	$	890	$	47		$	87
Commercial Vehicle		507		28			10		387		24			18
Off-Highway		768		17			100		669		21			97
Power Technologies		283		6			21		259		6			32
Eliminations and other				(91	)						(98	)
Total	$	2,586	$	—		$	164	$	2,205	$	—		$	234
Six Months Ended June 30,
Light Vehicle	$	2,013	$	88		$	64	$	1,881	$	87		$	187
Commercial Vehicle		970		58			20		736		48			33
Off-Highway		1,512		37			200		1,304		36			176
Power Technologies		571		13			50		547		12			73
Eliminations and other				(196	)						(183	)
Total	$	5,066	$	—		$	334	$	4,468	$	—		$	469

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Segment EBITDA	$	164		$	234		$	334		$	469
Corporate expense and other items, net		(2	)		(1	)		(2	)		(2	)
Depreciation		(91	)		(92	)		(182	)		(180	)
Amortization		(5	)		(5	)		(11	)		(12	)
Non-service cost components of pension and OPEB costs		(3	)		(3	)		(3	)		(5	)
Restructuring charges, net		(1	)								(1	)
Stock compensation expense		(4	)		(4	)		(8	)		(9	)
Strategic transaction expenses		(1	)		(5	)		(5	)		(8	)
Gain (loss) on investment in Hyliion					3						(14	)
Loss on disposal group held for sale											(7	)
Loss on de-designation of fixed-to-fixed cross currency swaps					(9	)					(9	)
Other items		2			(5	)		2			(1	)
Earnings before interest and income taxes		59			113			125			221
Loss on extinguishment of debt					(24	)					(24	)
Interest income		2			2			4			4
Interest expense		32			34			63			68
Earnings before income taxes		29			57			66			133
Income tax expense		18			14			36			36
Equity in earnings (loss) of affiliates		(1	)		10						24
Net income	$	10		$	53		$	30		$	121