v3.24.2
Note 18 - Segments
 6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 18. 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 —

 

  

2024

  

2023

 

Three Months Ended June 30,

 

External Sales

  

Inter-Segment Sales

  

Segment EBITDA

  

External Sales

  

Inter-Segment Sales

  

Segment EBITDA

 

Light Vehicle

 $1,132  $48  $84  $1,066  $46  $66 

Commercial Vehicle

  527   28   23   526   31   28 

Off-Highway

  746   16   116   842   16   131 

Power Technologies

  333   6   22   314   6   19 

Eliminations and other

      (98)          (99)    

Total

 $2,738  $—  $245  $2,748  $—  $244 
                   

Six Months Ended June 30,

                  

Light Vehicle

 $2,230  $99  $151  $2,028  $98  $115 

Commercial Vehicle

  1,051   57   40   1,048   63   45 

Off-Highway

  1,527   33   231   1,684   33   249 

Power Technologies

  665   12   49   632   14   42 

Eliminations and other

      (201)          (208)    

Total

 $5,473  $—  $471  $5,392  $—  $451 

 

Reconciliation of segment EBITDA to consolidated net income —

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2024

  

2023

  

2024

  

2023

 

Segment EBITDA

 $245  $244  $471  $451 

Corporate expense and other items, net

  (1)  (1)  (4)  (4)

Depreciation

  (106)  (94)  (207)  (186)

Amortization

  (6)  (6)  (11)  (11)

Non-service cost components of pension and OPEB costs

  (2)  (3)  (6)  (6)

Restructuring charges, net

  (12)  (3)  (17)  (4)

Stock compensation expense

  (8)  (8)  (14)  (14)

Strategic transaction expenses

  (2)  (1)  (4)  (2)

Distressed supplier costs

      (4)      (12)

Loss on disposal group held for sale

  (1)      (30)    

Other items

  (3)      (4)  2 

Earnings before interest and income taxes

  104   124   174   214 

Loss on extinguishment of debt

      (1)      (1)

Interest income

  2   5   6   9 

Interest expense

  39   39   78   73 

Earnings before income taxes

  67   89   102   149 

Income tax expense

  54   55   91   85 

Equity in earnings of affiliates

  3   2   5   3 

Net income

 $16  $36  $16  $67