Note 17 - Segments

9 Months Ended

Sep. 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 September 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	1,084	$	47		$	75	$	1,047	$	38		$	60
Commercial Vehicle		535		34			29		505		26			18
Off-Highway		739		13			110		694		12			91
Power Technologies		311		7			28		289		8			21
Eliminations and other				(101	)						(84	)
Total	$	2,669	$	—		$	242	$	2,535	$	—		$	190
Nine Months Ended September 30,
Light Vehicle	$	3,112	$	145		$	190	$	3,060	$	126		$	124
Commercial Vehicle		1,583		97			74		1,475		84			38
Off-Highway		2,423		46			359		2,206		49			291
Power Technologies		943		21			70		860		21			71
Eliminations and other				(309	)						(280	)
Total	$	8,061	$	—		$	693	$	7,601	$	—		$	524

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Segment EBITDA	$	242		$	190		$	693		$	524
Corporate expense and other items, net					2			(4	)
Depreciation		(101	)		(88	)		(287	)		(270	)
Amortization		(6	)		(6	)		(17	)		(17	)
Non-service cost components of pension and OPEB costs		(4	)					(10	)		(3	)
Restructuring charges, net		(17	)		1			(21	)		1
Stock compensation expense		(5	)		(5	)		(19	)		(13	)
Strategic transaction expenses		(2	)		(1	)		(4	)		(6	)
Distressed supplier costs		(14	)					(26	)
Impairment of goodwill					(191	)					(191	)
Other items		(2	)		(3	)					(1	)
Earnings (loss) before interest and income taxes		91			(101	)		305			24
Loss on extinguishment of debt								(1	)
Interest income		5			2			14			6
Interest expense		41			32			114			95
Earnings (loss) before income taxes		55			(131	)		204			(65	)
Income tax expense		33			31			118			67
Equity in earnings (loss) of affiliates		3			(1	)		6			(1	)
Net income (loss)	$	25		$	(163	)	$	92		$	(133	)