Note 17 - Segments

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 17. Segments

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 June 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	1,066	$	46		$	66	$	1,028	$	40		$	33
Commercial Vehicle		526		31			28		507		28			10
Off-Highway		842		16			131		768		17			100
Power Technologies		314		6			19		283		6			21
Eliminations and other				(99	)						(91	)
Total	$	2,748	$	—		$	244	$	2,586	$	—		$	164
Six Months Ended June 30,
Light Vehicle	$	2,028	$	98		$	115	$	2,013	$	88		$	64
Commercial Vehicle		1,048		63			45		970		58			20
Off-Highway		1,684		33			249		1,512		37			200
Power Technologies		632		14			42		571		13			50
Eliminations and other				(208	)						(196	)
Total	$	5,392	$	—		$	451	$	5,066	$	—		$	334

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Segment EBITDA	$	244		$	164		$	451		$	334
Corporate expense and other items, net		(1	)		(2	)		(4	)		(2	)
Depreciation		(94	)		(91	)		(186	)		(182	)
Amortization		(6	)		(5	)		(11	)		(11	)
Non-service cost components of pension and OPEB costs		(3	)		(3	)		(6	)		(3	)
Restructuring charges, net		(3	)		(1	)		(4	)
Stock compensation expense		(8	)		(4	)		(14	)		(8	)
Strategic transaction expenses		(1	)		(1	)		(2	)		(5	)
Distressed supplier costs		(4	)					(12	)
Other items					2			2			2
Earnings before interest and income taxes		124			59			214			125
Loss on extinguishment of debt		(1	)					(1	)
Interest income		5			2			9			4
Interest expense		39			32			73			63
Earnings before income taxes		89			29			149			66
Income tax expense		55			18			85			36
Equity in earnings (loss) of affiliates		2			(1	)		3			—
Net income	$	36		$	10		$	67		$	30