Note 19 - Segments

9 Months Ended

Sep. 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 September 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	1,047	$	38		$	60	$	918	$	39		$	54
Commercial Vehicle		505		26			18		396		25			20
Off-Highway		694		12			91		627		16			100
Power Technologies		289		8			21		263		6			38
Eliminations and other				(84	)						(86	)
Total	$	2,535	$	—		$	190	$	2,204	$	—		$	212
Nine Months Ended September 30,
Light Vehicle	$	3,060	$	126		$	124	$	2,799	$	126		$	241
Commercial Vehicle		1,475		84			38		1,132		73			53
Off-Highway		2,206		49			291		1,931		52			276
Power Technologies		860		21			71		810		18			111
Eliminations and other				(280	)						(269	)
Total	$	7,601	$	—		$	524	$	6,672	$	—		$	681

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Segment EBITDA	$	190		$	212		$	524		$	681
Corporate expense and other items, net		2			(2	)					(4	)
Depreciation		(88	)		(92	)		(270	)		(272	)
Amortization		(6	)		(6	)		(17	)		(18	)
Non-service cost components of pension and OPEB costs					(2	)		(3	)		(7	)
Restructuring charges, net		1			(1	)		1			(2	)
Stock compensation expense		(5	)		(6	)		(13	)		(15	)
Strategic transaction expenses		(1	)		(3	)		(6	)		(11	)
Loss on investment in Hyliion					(6	)					(20	)
Impairment of goodwill		(191	)					(191	)
Loss on disposal group held for sale											(7	)
Loss on de-designation of fixed-to-fixed cross currency swaps											(9	)
Other items		(3	)					(1	)		(1	)
Earnings (loss) before interest and income taxes		(101	)		94			24			315
Loss on extinguishment of debt											(24	)
Interest income		2			2			6			6
Interest expense		32			31			95			99
Earnings (loss) before income taxes		(131	)		65			(65	)		198
Income tax expense		31			20			67			56
Equity in earnings (loss) of affiliates		(1	)		5			(1	)		29
Net income (loss)	$	(163	)	$	50		$	(133	)	$	171