Note 17 - Segments

3 Months Ended

Mar. 31, 2023

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 —

	2023							2022
Three Months Ended March 31,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	962	$	52		$	49	$	985	$	48		$	31
Commercial Vehicle		522		32			17		463		30			10
Off-Highway		842		17			118		744		20			100
Power Technologies		318		8			23		288		7			29
Eliminations and other				(109	)						(105	)
Total	$	2,644	$	—		$	207	$	2,480	$	—		$	170

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended
	March 31,
	2023			2022
Segment EBITDA	$	207		$	170
Corporate expense and other items, net		(3	)
Depreciation		(92	)		(91	)
Amortization		(5	)		(6	)
Non-service cost components of pension and OPEB costs		(3	)
Restructuring charges, net		(1	)		1
Stock compensation expense		(6	)		(4	)
Strategic transaction expenses		(1	)		(4	)
Distressed supplier costs		(8	)
Other items		2
Earnings before interest and income taxes		90			66
Interest income		4			2
Interest expense		34			31
Earnings before income taxes		60			37
Income tax expense		30			18
Equity in earnings of affiliates		1			1
Net income	$	31		$	20