Note 20 - Segments, Geographical Area and Major Customer Information

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 20.  Segments, Geographical Area and Major Customer Information

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 —

			Inter-
	External		Segment			Segment		Capital				Net
2023	Sales		Sales			EBITDA		Spend		Depreciation		Assets
Light Vehicle	$	4,035	$	190		$	212	$	184	$	187	$	1,354
Commercial Vehicle		2,092		124			87		106		38		836
Off-Highway		3,185		61			465		65		103		1,238
Power Technologies		1,243		25			89		120		39		485
Eliminations and other				(400	)				26		26		75
Total	$	10,555	$	—		$	853	$	501	$	393	$	3,988
2022
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

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) —

	2023			2022			2021
Segment EBITDA	$	853		$	699		$	798
Corporate expense and other items, net		(8	)		1			(3	)
Depreciation		(393	)		(365	)		(365	)
Amortization		(23	)		(23	)		(24	)
Non-service cost components of pension and OPEB costs		(13	)		(7	)		(10	)
Restructuring charges, net		(25	)		1
Stock compensation expense		(26	)		(19	)		(17	)
Strategic transaction expenses		(5	)		(8	)		(13	)
Distressed supplier costs		(44	)
Amounts attributable to previously divested/closed operations					(2	)		(2	)
Loss on investment in Hyliion								(20	)
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	)
Other items								1
Earnings before interest and income taxes		316			86			395
Loss on extinguishment of debt		(1	)					(29	)
Interest income		17			11			9
Interest expense		154			128			131
Earnings (loss) before income taxes		178			(31	)		244
Income tax expense		121			284			72
Equity in earnings of affiliates		(9	)		4			28
Net income (loss)	$	48		$	(311	)	$	200

Reconciliation of segment net assets to consolidated total assets —

	2023		2022
Segment net assets	$	3,988	$	3,810
Accounts payable and other current liabilities		2,503		2,383
Other current and long-term assets		1,474		1,256
Consolidated total assets	$	7,965	$	7,449

Geographic information — Of our 2023 consolidated net sales, the U.S., Italy, India, Germany, China and Brazil account for 43%, 16%, 6%, 5%, 5% and 5%, respectively. No other country accounted for 5% or more of our consolidated net sales during 2023. 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
	2023		2022		2021		2023		2022		2021
North America
United States	$	4,492	$	4,668	$	4,035	$	1,019	$	994	$	981
Other North America		260		255		195		171		151		114
Total		4,752		4,923		4,230		1,190		1,145		1,095
Europe
Italy		1,705		1,535		1,356		223		211		225
Germany		549		494		496		148		126		121
Other Europe		1,296		1,030		984		303		274		280
Total		3,550		3,059		2,836		674		611		626
South America
Brazil		488		606		451		104		88		80
Other South America		243		182		139		24		21		16
Total		731		788		590		128		109		96
Asia Pacific
India		634		554		458		163		174		200
China		503		484		493		92		88		104
Other Asia Pacific		385		348		338		64		66		78
Total		1,522		1,386		1,289		319		328		382
Total	$	10,555	$	10,156	$	8,945	$	2,311	$	2,193	$	2,199

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 one or more of the past three years. Sales to Ford were $2,138 (20%) in 2023, $1,978 (19%) in 2022 and $1,729 (19%) in 2021. Sales to Stellantis N.V. (via a directed supply relationship) were $918 (9%) in 2023, $1,166 (11%) in 2022 and $1,068 (12%) in 2021.