Note 20 - Segments, Geographical Area and Major Customer Information

12 Months Ended

Dec. 31, 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.

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 —

			Inter-
	External		Segment			Segment		Capital				Net
2022	Sales		Sales			EBITDA		Spend		Depreciation		Assets
Light Vehicle	$	4,090	$	166		$	158	$	201	$	175	$	1,331
Commercial Vehicle		1,979		110			43		67		32		708
Off-Highway		2,946		64			404		73		101		1,278
Power Technologies		1,141		28			94		64		32		389
Eliminations and other				(368	)				35		25		104
Total	$	10,156	$	—		$	699	$	440	$	365	$	3,810
2021
Light Vehicle	$	3,773	$	166		$	274	$	154	$	175	$	1,492
Commercial Vehicle		1,532		100			48		53		31		941
Off-Highway		2,593		67			353		75		102		1,342
Power Technologies		1,047		23			123		39		36		389
Eliminations and other				(356	)				48		21		161
Total	$	8,945	$	—		$	798	$	369	$	365	$	4,325
2020
Light Vehicle	$	3,038	$	104		$	239	$	131	$	167	$	1,432
Commercial Vehicle		1,185		70			40		39		32		796
Off-Highway		1,966		48			230		69		93		1,360
Power Technologies		917		19			94		38		32		360
Eliminations and other				(241	)				49		21		146
Total	$	7,106	$	—		$	603	$	326	$	345	$	4,094

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 (loss) —

	2022			2021			2020
Segment EBITDA	$	699		$	798		$	603
Corporate expense and other items, net		1			(3	)		(10	)
Depreciation		(365	)		(365	)		(345	)
Amortization		(23	)		(24	)		(20	)
Non-service cost components of pension and OPEB costs		(7	)		(10	)		(10	)
Restructuring charges, net		1						(34	)
Stock compensation expense		(19	)		(17	)		(14	)
Strategic transaction expenses		(8	)		(13	)		(20	)
Amounts attributable to previously divested/closed operations		(2	)		(2	)		(1	)
Gain (loss) on investment in Hyliion					(20	)		33
Loss on disposal group held for sale					(7	)
Loss on de-designation of fixed-to-fixed cross currency swaps					(9	)
Gain on sale leaseback					66
Impairment of goodwill		(191	)					(51	)
Other items					1			(7	)
Earnings before interest and income taxes		86			395			124
Loss on extinguishment of debt					(29	)		(8	)
Interest income		11			9			9
Interest expense		128			131			138
Earnings (loss) before income taxes		(31	)		244			(13	)
Income tax expense		284			72			58
Equity in earnings of affiliates		4			28			20
Net income (loss)	$	(311	)	$	200		$	(51	)

Reconciliation of segment net assets to consolidated total assets —

	2022		2021
Segment net assets	$	3,810	$	4,325
Accounts payable and other current liabilities		2,383		2,099
Other current and long-term assets		1,256		1,208
Consolidated total assets	$	7,449	$	7,632

Geographic information — Of our 2022 consolidated net sales, the U.S., Italy, Brazil and India account for 46%, 15%, 6%, and 6%, respectively. No other country accounted for more than 5% of our consolidated net sales during 2022. 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
	2022		2021		2020		2022		2021		2020
North America
United States	$	4,668	$	4,035	$	3,404	$	994	$	981	$	957
Other North America		255		195		198		151		114		106
Total		4,923		4,230		3,602		1,145		1,095		1,063
Europe
Italy		1,535		1,356		993		211		225		252
Other Europe		1,524		1,480		1,216		400		401		442
Total		3,059		2,836		2,209		611		626		694
South America
Brazil		606		451		264		88		80		87
Other South America		182		139		94		21		16		10
Total		788		590		358		109		96		97
Asia Pacific
India		554		458		276		174		200		198
Other Asia Pacific		832		831		661		154		182		199
Total		1,386		1,289		937		328		382		397
Total	$	10,156	$	8,945	$	7,106	$	2,193	$	2,199	$	2,251

Sales to major customers — Ford and Stellantis N.V. were the only individual customers to whom sales have exceeded 10% of our consolidated sales in the past three years. Sales to Ford were $1,978 (19%) in 2022, $1,729 (19%) in 2021 and $1,456 (20%) in 2020. Sales to Stellantis N.V. (via a directed supply relationship) were $1,166 (11%) in 2022, $1,068 (12%) in 2021 and $871 (12%) in 2020.