10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-Q

☑     Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 

For the quarterly period ended: September 30, 2019

OR

☐     Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period From to

Commission File Number: 1-1063

Dana Incorporated

(Exact name of registrant as specified in its charter)

Delaware			26-1531856
(State of incorporation)			(IRS Employer Identification Number)
3939 Technology Drive,	Maumee,	OH	43537
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (419) 887-3000

Common stock $0.01 par value	DAN	New York Stock Exchange
(Title of each class)	(Trading Symbol)	(Name of exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☑    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   Yes  ☐    No  ☑

There were 143,923,921 shares of the registrant’s common stock outstanding at October 18, 2019.

DANA INCORPORATED – FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2019

TABLE OF CONTENTS

		10-Q Pages
PART I – FINANCIAL INFORMATION
Item 1	Financial Statements
	Consolidated Statement of Operations (Unaudited)	3
	Consolidated Statement of Comprehensive Income (Unaudited)	4
	Consolidated Balance Sheet (Unaudited)	5
	Consolidated Statement of Cash Flows (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3	Quantitative and Qualitative Disclosures About Market Risk	57
Item 4	Controls and Procedures	57
PART II – OTHER INFORMATION
Item 1	Legal Proceedings	58
Item 1A	Risk Factors	58
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	58
Item 6	Exhibits	59
Signatures		60

2

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Dana Incorporated

Consolidated Statement of Operations (Unaudited)

(In millions, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net sales	$	2,164		$	1,978		$	6,633		$	6,170
Costs and expenses
Cost of sales	1,882			1,692			5,725			5,269
Selling, general and administrative expenses	128			119			404			383
Amortization of intangibles	2			2			8			6
Restructuring charges, net	5			9			23			17
Impairment of indefinite-lived intangible asset										(20		)
Adjustment in fair value of disposal group held for sale										3
Pension settlement charge	(2		)				(260		)
Other expense, net	(8		)	(9		)	(31		)	(19		)
Earnings before interest and income taxes	137			147			182			459
Interest income	3			3			8			8
Interest expense	31			24			92			71
Earnings before income taxes	109			126			98			396
Income tax expense (benefit)	5			31			(27		)	75
Equity in earnings of affiliates	8			1			22			13
Net income	112			96			147			334
Less: Noncontrolling interests net income	3			1			9			6
Less: Redeemable noncontrolling interests net income (loss)	(2		)				(3		)	1
Net income attributable to the parent company	$	111		$	95		$	141		$	327
Net income per share available to common stockholders
Basic	$	0.77		$	0.66		$	0.98		$	2.25
Diluted	$	0.77		$	0.65		$	0.97		$	2.23
Weighted-average common shares outstanding
Basic	144.0			144.7			144.0			145.1
Diluted	144.8			145.9			144.8			146.6

The accompanying notes are an integral part of the consolidated financial statements.

3

Dana Incorporated

Consolidated Statement of Comprehensive Income (Unaudited)

(In millions)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net income	$	112		$	96		$	147		$	334
Other comprehensive income (loss), net of tax:
Currency translation adjustments	(46		)	(19		)	(16		)	(65		)
Hedging gains and losses	8			3			15			(11		)
Defined benefit plans	5			21			365			34
Other comprehensive income (loss)	(33		)	5			364			(42		)
Total comprehensive income	79			101			511			292
Less: Comprehensive loss attributable to noncontrolling interests	9						4
Less: Comprehensive income attributable to redeemable noncontrolling interests	(3		)				(6		)
Comprehensive income attributable to the parent company	$	85		$	101		$	509		$	292

The accompanying notes are an integral part of the consolidated financial statements.

4

Dana Incorporated

Consolidated Balance Sheet (Unaudited)

(In millions, except share and per share amounts)

	September 30, 2019			December 31, 2018
Assets
Current assets
Cash and cash equivalents	$	402		$	510
Marketable securities	20			21
Accounts receivable
Trade, less allowance for doubtful accounts of $8 in 2019 and $9 in 2018	1,285			1,065
Other	198			178
Inventories	1,233			1,031
Other current assets	135			102
Total current assets	3,273			2,907
Goodwill	530			264
Intangibles	232			164
Deferred tax assets	539			445
Other noncurrent assets	112			80
Investments in affiliates	172			208
Operating lease assets	174
Property, plant and equipment, net	2,199			1,850
Total assets	$	7,231		$	5,918
Liabilities and equity
Current liabilities
Short-term debt	$	109		$	8
Current portion of long-term debt	13			20
Accounts payable	1,285			1,217
Accrued payroll and employee benefits	208			186
Taxes on income	55			47
Current portion of operating lease liabilities	41
Other accrued liabilities	279			269
Total current liabilities	1,990			1,747
Long-term debt, less debt issuance costs of $27 in 2019 and $18 in 2018	2,346			1,755
Noncurrent operating lease liabilities	136
Pension and postretirement obligations	418			561
Other noncurrent liabilities	289			313
Total liabilities	5,179			4,376
Commitments and contingencies (Note 16)
Redeemable noncontrolling interests	174			100
Parent company stockholders' equity
Preferred stock, 50,000,000 shares authorized, $0.01 par value, no shares outstanding	—			—
Common stock, 450,000,000 shares authorized, $0.01 par value, 143,923,921 and 144,663,403 shares outstanding	2			2
Additional paid-in capital	2,381			2,368
Retained earnings	552			456
Treasury stock, at cost (10,103,374 and 8,342,185 shares)	(150		)	(119		)
Accumulated other comprehensive loss	(994		)	(1,362		)
Total parent company stockholders' equity	1,791			1,345
Noncontrolling interests	87			97
Total equity	1,878			1,442
Total liabilities and equity	$	7,231		$	5,918

The accompanying notes are an integral part of the consolidated financial statements.

5

Dana Incorporated

Consolidated Statement of Cash Flows (Unaudited)

(In millions)

	Nine Months Ended September 30,
	2019			2018
Operating activities
Net income	$	147		$	334
Depreciation	235			187
Amortization	12			8
Amortization of deferred financing charges	5			3
Earnings of affiliates, net of dividends received	(3		)	5
Stock compensation expense	15			13
Deferred income taxes	(120		)	(47		)
Pension expense, net	207			2
Impairment of indefinite-lived intangible asset				20
Adjustment in fair value of disposal group held for sale				(2		)
Change in working capital	(197		)	(269		)
Other, net	(13		)	(17		)
Net cash provided by operating activities	288			237
Investing activities
Purchases of property, plant and equipment	(298		)	(235		)
Acquisition of businesses, net of cash acquired	(666		)	(151		)
Proceeds from previous acquisition				9
Purchases of marketable securities	(24		)	(36		)
Proceeds from sales of marketable securities	6			6
Proceeds from maturities of marketable securities	19			30
Proceeds from sale of subsidiary, net of cash disposed	1			(6		)
Settlements of undesignated derivatives	(20		)
Other, net	(13		)	(2		)
Net cash used in investing activities	(995		)	(385		)
Financing activities
Net change in short-term debt	92			(13		)
Proceeds from long-term debt	675
Repayment of long-term debt	(121		)	(8		)
Deferred financing payments	(16		)
Dividends paid to common stockholders	(43		)	(43		)
Distributions to noncontrolling interests	(14		)	(7		)
Sale of interest to noncontrolling shareholder	53
Contributions from noncontrolling interests	4			22
Payments to acquire redeemable noncontrolling interests				(43		)
Repurchases of common stock	(25		)	(25		)
Other, net				(5		)
Net cash provided by (used in) financing activities	605			(122		)
Net decrease in cash, cash equivalents and restricted cash	(102		)	(270		)
Cash, cash equivalents and restricted cash – beginning of period	520			610
Effect of exchange rate changes on cash balances	(6		)	(13		)
Cash, cash equivalents and restricted cash – end of period (Note 6)	$	412		$	327
Non-cash investing activity
Purchases of property, plant and equipment held in accounts payable	$	79		$	93

The accompanying notes are an integral part of the consolidated financial statements.

6

Dana Incorporated

Index to Notes to Consolidated Financial Statements

1.	Organization and Summary of Significant Accounting Policies
2.	Acquisitions
3.	Disposal Groups and Divestitures
4.	Goodwill and Other Intangible Assets
5.	Restructuring of Operations
6.	Supplemental Balance Sheet and Cash Flow Information
7.	Leases
8.	Stockholders' Equity
9.	Redeemable Noncontrolling Interests
10.	Earnings per Share
11.	Stock Compensation
12.	Pension and Postretirement Benefit Plans
13.	Marketable Securities
14.	Financing Agreements
15.	Fair Value Measurements and Derivatives
16.	Commitments and Contingencies
17.	Warranty Obligations
18.	Income Taxes
19.	Other Expense, Net
20.	Revenue from Contracts with Customers
21.	Segments
22.	Equity Affiliates

7

Notes to Consolidated Financial Statements (Unaudited)

(In millions, except share and per share amounts)

Note 1. Organization and Summary of Significant Accounting Policies

General

Dana Incorporated (Dana) is headquartered in Maumee, Ohio and was incorporated in Delaware in 2007. As a global provider of high technology driveline (axles, driveshafts and transmissions); sealing and thermal-management products; and motors, power inverters, and control systems for electric vehicles our customer base includes virtually every major vehicle manufacturer in the global light vehicle, medium/heavy vehicle and off-highway markets.

The terms "Dana," "we," "our" and "us," when used in this report, are references to Dana. These references include the subsidiaries of Dana unless otherwise indicated or the context requires otherwise.

Summary of significant accounting policies

Basis of presentation — Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. These statements are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Form 10-K).

Recently adopted accounting pronouncements

On January 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), using the modified retrospective approach and an application date of January 1, 2019. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting. This transition method resulted in the recognition of a right-of-use asset and a lease liability for virtually all leases at the application date with a cumulative-effect adjustment to retained earnings. Short-term leases of less than 12 months have not been recorded on the balance sheet.

We elected the package of practical expedients, which among other things, allowed us to carry forward the historical lease classification. We did not elect the practical expedient that allowed for hindsight to determine the lease term of existing leases. We separated the lease components from the non-lease components of each lease arrangement and, therefore, did not elect the practical expedient that would enable us to not separate them.

We also adopted the following standard during the first nine months of 2019, which did not have a material impact on our financial statements or financial statement disclosures:

Standard		Effective Date
2017-11	Earnings Per Share, Distinguishing Liabilities from Equity, Derivatives and Hedging – (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception	January 1, 2019

Recently issued accounting pronouncements

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This guidance allows for capitalization of implementation costs associated with certain cloud computing arrangements. This guidance becomes effective January 1, 2020 and early adoption is permitted. The guidance is to be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We do not expect the adoption of this guidance to impact our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance eliminated certain

8

disclosures about defined benefit plans, added new disclosures, and clarified other requirements. This guidance becomes effective January 1, 2020 and early adoption is permitted. There were no changes to interim disclosure requirements. Adoption of this guidance will not have a material effect on our annual financial statement disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The guidance removed or modified some disclosures while others were added. The removal and amendment of certain disclosures can be adopted immediately with retrospective application. The additional disclosure guidance becomes effective January 1, 2020. Adoption of this guidance will not have a material effect on our financial statement disclosures.

In January 2017, the FASB issued ASU 2017-04, Goodwill – Simplifying the Test for Goodwill Impairment, guidance that simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 of the goodwill impairment test. The new guidance quantifies goodwill impairment as the amount by which the carrying amount of a reporting unit, including goodwill, exceeds its fair value, with the impairment loss limited to the total amount of goodwill allocated to that reporting unit. This guidance becomes effective January 1, 2020 and will be applied on a prospective basis. Early adoption is permitted for impairment tests performed after January 1, 2017. We do not expect the adoption of this guidance to impact our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Credit Losses – Measurement of Credit Losses on Financial Instruments, new guidance for the accounting for credit losses on certain financial instruments. This guidance introduces a new approach to estimating credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. This guidance becomes effective January 1, 2020 and is not expected to have a material impact on our consolidated financial statements.

Note 2. Acquisitions

Nordresa — On August 26, 2019, we acquired a 100% ownership interest in Nordresa Motors, Inc. (Nordresa) for consideration of $12, using cash on hand. Nordresa is a prominent integration and application engineering expert for the development and commercialization of electric powertrains for commercial vehicles. The investment further enhances Dana's electrification capabilities by combining its complete portfolio of motors, inverters, chargers, gearboxes, and thermal-management products with Nordresa's proprietary battery-management system, electric powertrain controls and integration expertise to deliver complete electric powertrain systems. The results of operations of the business are reported within our Commercial Vehicle operating segment. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented.

Hydro-Québec Relationship — On July 29, 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in S.M.E. S.p.A. (SME) and increasing its existing indirect 22.5% noncontrolling interest in Prestolite E-Propulsion Systems (Beijing) Limited (PEPS) to 45%. We received $65 at closing, consisting of $53 of cash and a note receivable of $12. The note is payable in five years and bears annual interest of 5%. Dana will continue to consolidate SME and PEPS as the governing documents continue to provide Dana with a controlling financial interest in these subsidiaries. See Note 9 for additional information. See below for a discussion of Dana's acquisitions of PEPS, SME and TM4.

Prestolite E-Propulsion Systems (Beijing) Limited — On June 6, 2019, we acquired Prestolite Electric Beijing Limited's (PEBL) 50% ownership interest in PEPS. PEPS manufactures and distributes electric mobility solutions, including electric motors, inverters, and generators for commercial vehicles and heavy machinery. PEPS has a state-of-the-art facility in China, enabling us to expand motor and inverter manufacturing capabilities in the world's largest electric-mobility market. The acquisition of PEBL's interest in PEPS, along with our existing ownership interest in PEPS through our TM4 subsidiary, provides us with a 100% ownership interest and a controlling financial interest in PEPS. We recognized a $2 gain to other expense, net on the required remeasurement of our previously held equity method investment in PEPS to fair value. See Hydro-Québec relationship discussion above for details of subsequent changes in our ownership interest in PEPS.

We paid $50 at closing using cash on hand. The purchase consideration and related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

9

Cash consideration	$	50
Fair value of previously held equity method investment	45
Total purchase consideration	$	95
Cash and cash equivalents	$	2
Accounts receivable - Trade	17
Inventories	8
Goodwill	73
Property, plant and equipment	2
Accounts payable	(4		)
Other accrued liabilities	(3		)
Total purchase consideration allocation	$	95

The fair value of the assets acquired and liabilities assumed, as well as the fair value of our previously held equity method investment, are provisional and could be revised as a result of additional information obtained regarding indemnified matters and liabilities assumed and revisions of provisional estimates of fair values, including but not limited to, the completion of independent appraisals and valuations related to inventories, intangibles and property, plant and equipment. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. We used a combination of the discounted cash flow, an income approach, and the guideline public company method, a market approach, to value our previously held equity method investment in PEPS.

The results of operations of the business are reported in our Commercial Vehicle operating segment from the date of acquisition. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented. PEPS had an insignificant impact on our consolidated results of operations during the third quarter and first nine months of 2019.

Oerlikon Drive Systems — On February 28, 2019, we acquired a 100% ownership interest in the Oerlikon Drive Systems (ODS) segment of the Oerlikon Group. ODS is a global manufacturer of high-precision gears, planetary hub drives for wheeled and tracked vehicles, and products, controls, and software that support vehicle electrification across the mobility industry. The acquisition of ODS is expected to deliver significant long-term value by accelerating our commitment to vehicle electrification and strengthening the technology portfolio for each of our end markets while further expanding and balancing the manufacturing presence of our off-highway business in key geographical markets. The business employs approximately 5,600 people and operates 11 manufacturing and engineering facilities in China, India, Italy, the United Kingdom, and the United States, with one additional facility under construction in China.

We paid $626 at closing which was funded primarily through debt proceeds. See Note 14 for additional information. The purchase consideration and related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

10

Purchase consideration paid at closing	$	626
Less purchase consideration to be recovered for indemnified matters	(4		)
Total purchase consideration	$	622
Cash and cash equivalents	$	76
Accounts receivable - Trade	150
Accounts receivable - Other	15
Inventories	190
Other current assets	15
Goodwill	123
Intangibles	58
Deferred tax assets	51
Other noncurrent assets	5
Investments in affiliates	7
Property, plant and equipment	329
Current portion of long-term debt	(2		)
Accounts payable	(151		)
Accrued payroll and employee benefits	(35		)
Other accrued liabilities	(48		)
Long-term debt	(8		)
Pension and postretirement obligations	(48		)
Other noncurrent liabilities	(97		)
Noncontrolling interests	(8		)
Total purchase consideration allocation	$	622

The purchase consideration and the fair values of the assets acquired and liabilities assumed are provisional and could be revised as a result of additional information obtained regarding indemnified matters and liabilities assumed and revisions of provisional estimates of fair values, including but not limited to, the completion of independent appraisals and valuations related to inventory, intangibles and property, plant and equipment.

Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. The provisional fair values assigned to intangibles includes $11 allocated to developed technology, $13 allocated to trademarks and trade names and $34 allocated to customer relationships. We used the relief from royalty method, an income approach, to value developed technology and trademarks and trade names. We used the multi-period excess earnings method, an income approach, to value customer relationships. We used a replacement cost method to value fixed assets. The developed technology, trademarks and trade names and customer relationship intangible assets are being amortized on a straight-line basis over seven, ten and twelve years, respectively. Property, plant and equipment is being depreciated on a straight-line basis over useful lives ranging from three to twenty-five years.

The results of operations of the business are primarily reported in our Off-Highway and Commercial Vehicle operating segments. Transaction related expenses associated with completion of the acquisition totaling $13 were charged to other expense, net. During the third quarter and first nine months of 2019, the business contributed sales of $179 and $465, respectively.

The following unaudited pro forma information has been prepared as if the ODS acquisition and the related debt financing had occurred on January 1, 2018.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net sales	$	2,164	$	2,179	$	6,778	$	6,825
Net income	$	115	$	97	$	182	$	301

The unaudited pro forma results include adjustments primarily related to purchase accounting, interest expense related to the debt proceeds used in connection with the acquisition of ODS, and non-recurring strategic transaction expenses. The unaudited pro forma financial information is not indicative of the operational results that would have been obtained had the transactions actually occurred as of that date, nor is it necessarily indicative of Dana’s future operational results.

11

SME — On January 11, 2019, we acquired a 100% ownership interest in SME. SME designs, engineers, and manufactures low-voltage AC induction and synchronous reluctance motors, inverters, and controls for a wide range of off-highway electric vehicle applications, including material handling, agriculture, construction, and automated-guided vehicles. The addition of SME's low-voltage motors and inverters, which are primarily designed to meet the evolution of electrification in off-highway equipment, significantly expands Dana's electrified product portfolio. See Hydro-Québec relationship discussion above for details of subsequent changes in our ownership interest in SME.

We paid $88 at closing, consisting of $62 in cash on hand and a note payable of $26 which allows for net settlement of potential contingencies as defined in the purchase agreement. The note is payable in five years and bears annual interest of 5%. The purchase consideration and the related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Total purchase consideration	$	88
Accounts receivable - Trade	4
Accounts receivable - Other	1
Inventories	8
Goodwill	68
Intangibles	24
Other noncurrent assets	1
Property, plant and equipment	5
Short-term debt	(8		)
Accounts payable	(6		)
Accrued payroll and employee benefits	(1		)
Other accrued liabilities	(1		)
Other noncurrent liabilities	(7		)
Total purchase consideration allocation	$	88

The fair value of the assets acquired and liabilities assumed are provisional and could be revised as a result of additional information obtained regarding liabilities assumed and revisions of provisional estimates of fair values including but not limited to, the completion of independent appraisals and valuations related to intangibles.

Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. The provisional fair values assigned to intangibles include $15 allocated to developed technology and $9 allocated to customer relationships. We used the relief from royalty method, an income approach, to value developed technology. We used the multi-period excess earnings method, an income approach, to value customer relationships. We used a replacement cost method to value fixed assets. The developed technology and customer relationship intangible assets are being amortized on a straight-line basis over twelve and ten years, respectively, and property, plant and equipment is being depreciated on a straight-line basis over useful lives ranging from one to twenty years.

The results of operations of the business are reported in our Off-Highway operating segment from the date of acquisition. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented. During the third quarter and first nine months of 2019, the business contributed sales of $4 and $16, respectively.

TM4 — On June 22, 2018, we acquired a 55% ownership interest in TM4 Inc. (TM4) from Hydro-Québec. TM4 designs and manufactures motors, power inverters, and control systems for electric vehicles, offering a complementary portfolio to Dana's electric gearboxes and thermal-management technologies for batteries, motors, and inverters. The transaction establishes Dana as the only supplier with full e-Drive design, engineering, and manufacturing capabilities – offering electro-mechanical propulsion solutions to each of its end markets. The transaction further strengthens Dana's position in China, the world's fastest-growing market for electric vehicles. The terms of the agreement provide Hydro-Québec with the right to put all, and not less than all, of its shares in TM4 to Dana at fair value any time after June 22, 2021, see Note 9 for additional information. TM4 owns a 50% interest in PEPS, a joint venture in China with PEBL, which offers electric mobility solutions throughout China and Asia. See discussion of Dana's subsequent acquisition of PEBL's 50% interest in PEPS above.

12

We paid $125 at closing, using cash on hand. The purchase consideration and the related allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Total purchase consideration	$	125
Cash and cash equivalents	$	3
Accounts receivable - Trade	3
Accounts receivable - Other	1
Inventories	4
Goodwill	148
Intangibles	24
Investments in affiliates	49
Property, plant and equipment	5
Accounts payable	(2		)
Accrued payroll and employee benefits	(1		)
Other accrued liabilities	(7		)
Redeemable noncontrolling interest	(102		)
Total purchase consideration allocation	$	125

Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. The fair values assigned to intangibles include $14 allocated to developed technology and $10 allocated to trademarks and trade names. We used the relief from royalty method, an income approach, to value developed technology and the trademarks and trade names. We used a replacement cost method to value fixed assets. We used a combination of the discounted cash flow, an income approach, and the guideline public company method, a market approach, to value the equity method investment in PEPS. The developed technology intangible assets are being amortized on a straight-line basis over ten years, and property, plant and equipment is being depreciated on a straight-line basis over useful lives ranging from five to six years. The trademarks and trade names are considered indefinite-lived intangible assets.

Dana is consolidating TM4 as the governing documents provide Dana with a controlling financial interest. The results of operations of the business are reported in our Commercial Vehicle operating segment from the date of acquisition. Transaction related expenses associated with completion of the acquisition totaling $5 were charged to other expense, net in 2018. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented. During 2018, the business contributed sales of $11.

BFP and BPT — On February 1, 2017, we acquired 80% ownership interests in Brevini Fluid Power S.p.A. (BFP) and Brevini Power Transmission S.p.A. (BPT) from Brevini Group S.p.A. (Brevini). The acquisition expands our Off-Highway operating segment product portfolio to include technologies for tracked vehicles, doubling our addressable market for off-highway driveline systems and establishing Dana as the only off-highway solutions provider that can manage the power to both move the equipment and perform its critical work functions. This acquisition also brings a platform of technologies that can be leveraged in our light and commercial-vehicle end markets, helping to accelerate our hybridization and electrification initiatives.

We paid $181 at closing, using cash on hand, and refinanced a significant portion of the debt assumed in the transaction during the first half of 2017. In December 2017, a purchase price reduction of $9 was agreed under the sale and purchase agreement provisions for determination of the net indebtedness and net working capital levels of BFP and BPT as of the closing date. In connection with the acquisition of BFP and BPT, Dana agreed to purchase certain real estate being leased by BPT from a Brevini affiliate for €25. Completion of the real estate purchase and receipt of the purchase price adjustment occurred in the second quarter of 2018 with a net cash payment of $20.

On August 8, 2018, we entered into an agreement to acquire Interfind S.p.A.'s, formerly Brevini Group S.p.A., remaining 20% ownership interests in BFP and BPT and to settle all claims between the parties. We paid $43 to acquire Interfind S.p.A.'s remaining ownership interests and received $10 in settlement of all pending and future claims. See Note 9 for additional information.

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Note 3. Disposal Groups and Divestitures

Disposal group held for sale — In December 2017, we entered into an agreement to divest our Brazil suspension components business (the disposal group) for no consideration to an unaffiliated company. The results of operations of the Brazil suspension components business were reported within our Commercial Vehicle operating segment. To effectuate the sale, Dana was obligated to contribute $10 of additional cash to the business prior to closing. We classified the disposal group as held for sale at December 31, 2017, recognizing a $27 loss to adjust the carrying value of the net assets to fair value and to recognize the liability for the additional cash required to be contributed to the business prior to closing. During the first quarter of 2018, we made the required cash contribution to the disposal group. After being unable to complete the transaction with the counterparty to the December 2017 agreement, we entered into an agreement with another third party in June 2018. The transaction with the new counterparty closed in July 2018 and we received cash proceeds of $2. We reversed $3 of the previously recognized $27 pre-tax loss, inclusive of the proceeds received in July 2018, during the second quarter of 2018.

Note 4. Goodwill and Other Intangible Assets

Goodwill — The change in the carrying amount of goodwill in 2019 is due to the acquisitions of Nordresa, PEPS, ODS and SME and currency fluctuation. See Note 2 for additional information on recent acquisitions.

Changes in the carrying amount of goodwill by segment — 

	Light Vehicle		Commercial Vehicle		Off-Highway			Power Technologies		Total
Balance, December 31, 2018	$	3	$	150	$	105		$	6	$	264
Acquisitions			85		191					276
Currency impact					(10		)			(10		)
Balance, September 30, 2019	$	3	$	235	$	286		$	6	$	530

Components of other intangible assets — 

		September 30, 2019							December 31, 2018
	Weighted Average Useful Life (years)	Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount
Amortizable intangible assets
Core technology	8	$	131	$	(91	)	$	40	$	107	$	(89	)	$	18
Trademarks and trade names	13	30		(6		)	24		16		(4		)	12
Customer relationships	9	493		(400		)	93		460		(400		)	60
Non-amortizable intangible assets
Trademarks and trade names		75					75		74					74
Used in research and development activities							—		20		(20		)	—
		$	729	$	(497	)	$	232	$	677	$	(513	)	$	164

During the third quarter of 2012, we entered a strategic alliance with Fallbrook Technologies Inc. (Fallbrook). The transaction with Fallbrook was accounted for as a business combination and the original purchase price allocation included $20 of intangible assets used in research and development activities, which had been classified as indefinite-lived. Since the third quarter of 2012, we had been working with several customers to commercialize the continuously variable planetary (CVP) technology primarily in combustion engine applications. During the second quarter of 2018 key customers notified us of their intention to redirect their development efforts to electrification and cease further development efforts of the CVP technology in combustion engine applications. We determined that it was more likely than not that the fair value of the related intangible assets was less than their carrying amount. We used the multi-period excess earnings method, an income approach, to fair value the assets used in research and development activities. Given the lack of adequate identifiable future revenue streams, it was determined that the $20 of intangible assets used in research and development activities was fully impaired during the second quarter of 2018.

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The net carrying amounts of intangible assets, other than goodwill, attributable to each of our operating segments at September 30, 2019 were as follows: Light Vehicle — $25, Commercial Vehicle — $53, Off-Highway — $146 and Power Technologies — $8.

Amortization expense related to amortizable intangible assets — 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Charged to cost of sales	$	2	$	1	$	4	$	2
Charged to amortization of intangibles	2		2		8		6
Total amortization	$	4	$	3	$	12	$	8

The following table provides the estimated aggregate pre-tax amortization expense related to intangible assets for each of the next five years based on September 30, 2019 exchange rates. Actual amounts may differ from these estimates due to such factors as currency translation, customer turnover, impairments, additional intangible asset acquisitions and other events.

	Remainder of 2019		2020		2021		2022		2023
Amortization expense	$	4	$	16	$	16	$	16	$	16

Note 5. Restructuring of Operations

Our restructuring activities have historically included rationalizing our operating footprint by consolidating facilities, positioning operations in lower cost locations and reducing overhead costs. In recent years our focus has been primarily headcount reduction initiatives to reduce operating costs, including actions taken at acquired businesses to rationalize cost structures and achieve operating synergies. Restructuring expense includes costs associated with current and previously announced actions and is comprised of contractual and noncontractual separation costs and exit costs, including certain operating costs of facilities that we are in the process of closing.

Restructuring charges of $5 in the third quarter of 2019 and $23 in the nine months ended September 30, 2019 were comprised of severance and benefit costs related to integration of recent acquisitions, headcount reductions across our operations and exit costs related to previously announced actions.

Restructuring expense of $9 in the third quarter of 2018 and $17 in the nine months ended September 30, 2018 included severance costs associated with the Voluntary Retirement Program for certain North American employees, headcount reductions in our Commercial Vehicle operations and corporate service functions in Brazil, integration of acquisitions and exit costs related to previously announced actions.

In accordance with the transition provisions of the new leasing standard, we reclassified $4 of previously accrued lease cease-use costs as an adjustment to the initial measurement of the related right-of-use operating lease asset.

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Accrued restructuring costs and activity —

	Employee Termination Benefits			Exit Costs			Total
Balance, June 30, 2019	$	23		$	—		$	23
Charges to restructuring	3			4			7
Adjustments of accruals	(2		)				(2		)
Cash payments	(9		)	(3		)	(12		)
Balance, September 30, 2019	$	15		$	1		$	16
Balance, December 31, 2018	$	25		$	4		$	29
Charges to restructuring	18			7			25
Adjustments of accruals	(2		)				(2		)
Cash payments	(26		)	(6		)	(32		)
Lease cease-use reclassification				(4		)	(4		)
Balance, September 30, 2019	$	15		$	1		$	16

At September 30, 2019, the accrued employee termination benefits include costs to reduce approximately 200 employees to be completed over the next year.

Cost to complete — The following table provides project-to-date and estimated future restructuring expenses for completion of our approved restructuring initiatives for our business segments at September 30, 2019.

	Expense Recognized						Future Cost to Complete
	Prior to 2019		2019		Total to Date
Commercial Vehicle	$	35	$	4	$	39	$	5
Off-Highway	—		1		1		1

The future cost to complete includes estimated separation costs, primarily those associated with one-time benefit programs, and exit costs through 2021, equipment transfers and other costs which are required to be recognized as closures are finalized or as incurred during the closure.

Note 6. Supplemental Balance Sheet and Cash Flow Information

Inventory components at —

	September 30, 2019			December 31, 2018
Raw materials	$	495		$	433
Work in process and finished goods	800			649
Inventory reserves	(62		)	(51		)
Total	$	1,233		$	1,031

Cash, cash equivalents and restricted cash at —

	September 30, 2019		December 31, 2018		September 30, 2018		December 31, 2017
Cash and cash equivalents	$	402	$	510	$	322	$	603
Restricted cash included in other current assets	7		7		2		3
Restricted cash included in other noncurrent assets	3		3		3		4
Total cash, cash equivalents and restricted cash	$	412	$	520	$	327	$	610

Note 7. Leases

Our global lease portfolio represents leases of real estate, including manufacturing, assembly and office facilities, while the remainder represents leases of personal property, including manufacturing, material handling and IT equipment. Leases with an

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initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Short-term lease costs were insignificant in the nine months ended September 30, 2019. We account for lease components separately from the non-lease components of each lease arrangement.

Our leases generally have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 7 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides a summary of the location and amounts related to finance leases recognized in the consolidated balance sheet.

	Classification	September 30, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	42
Finance lease liabilities	Current portion of long-term debt	5
Finance lease liabilities	Long-term debt	25

Components of lease expense —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	13	$	37
Finance lease cost:
Amortization of right-of-use assets	$	1	$	2
Interest on lease liabilities	1		1
Total finance lease cost	$	2	$	3

Supplemental cash flow information related to leases —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12	$	37
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	1		3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3	$	16
Finance leases	1		13

Supplemental balance sheet information related to leases —

	September 30, 2019
Weighted-average remaining lease term (years):
Operating leases	6
Finance leases	9
Weighted-average discount rate:
Operating leases	6.0	%
Finance leases	4.0	%

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Maturities —

	Operating Leases		Finance Leases
Remainder of 2019	$	13	$	1
2020	47		6
2021	39		6
2022	29		5
2023	22		3
Thereafter	58		14
Total lease payments	208		35
Less: interest	31		5
Present value of lease liabilities	$	177	$	30

As of September 30, 2019 we have operating lease payments that have not yet commenced of approximately $8. This lease is expected to commence in December 2019.

Disclosures related to periods prior to adoption of ASU 2016-02 —

Cash obligations under future minimum rental commitments under operating leases as of December 31, 2018 are shown in the table below. Operating lease commitments are primarily related to facilities.

	2019		2020		2021		2022		2023		Thereafter		Total
Lease commitments	$	57	$	41	$	35	$	27	$	21	$	64	$	245

Note 8. Stockholders’ Equity

Common stock — Our Board of Directors declared a cash dividend of ten cents per share of common stock in each of the first three quarters of 2019. Dividends accrue on restricted stock units (RSUs) granted under our stock compensation program and will be paid in cash or additional units when the underlying units vest.

Share repurchase program — On March 24, 2018 our Board of Directors approved an expansion of our existing common stock share repurchase program to $200. The program expires on December 31, 2019. Under the program, we spent $25 to repurchase 1,432,275 shares of our common stock during the first quarter of 2019 through open market transactions. Approximately $150 remained available for future share repurchases as of September 30, 2019.

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Changes in equity —

	Three Months Ended September 30,
2019	Common Stock		Additional Paid-In Capital		Retained Earnings			Treasury Stock			Accumulated Other Compre-hensive Loss			Non-controlling Interests			Total Equity
Balance, June 30, 2019	$	2	$	2,376	$	456		$	(150	)	$	(968	)	$	98		$	1,814
Net income					111									3			114
Other comprehensive loss											(26		)	(12		)	(38		)
Common stock dividends					(15		)										(15		)
Distributions to noncontrolling interests														(2		)	(2		)
Stock compensation			5														5
Balance, September 30, 2019	$	2	$	2,381	$	552		$	(150	)	$	(994	)	$	87		$	1,878
2018
Balance, June 30, 2018	$	2	$	2,356	$	290		$	(118	)	$	(1,385	)	$	106		$	1,251
Net income					95									1			96
Other comprehensive income (loss)											6			(1		)	5
Common stock dividends					(14		)										(14		)
Distributions to noncontrolling interests														(3		)	(3		)
Purchase of redeemable noncontrolling interests			2														2
Contribution from noncontrolling interest														22			22
Stock compensation			6														6
Stock withheld for employee taxes								(1		)							(1		)
Balance, September 30, 2018	$	2	$	2,364	$	371		$	(119	)	$	(1,379	)	$	125		$	1,364

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	Nine Months Ended September 30,
2019	Common Stock		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Compre-hensive Loss			Non-controlling Interests			Total Equity
Balance, December 31, 2018	$	2	$	2,368		$	456		$	(119	)	$	(1,362	)	$	97		$	1,442
Adoption of ASU 2016-02 leases, January 1, 2019						(1		)										(1		)
Net income						141									9			150
Other comprehensive income (loss)												368			(13		)	355
Common stock dividends						(44		)										(44		)
Distributions to noncontrolling interests															(14		)	(14		)
Increase from business combination															8			8
Common stock share repurchases									(25		)							(25		)
Stock compensation			13															13
Stock withheld for employee taxes									(6		)							(6		)
Balance, September 30, 2019	$	2	$	2,381		$	552		$	(150	)	$	(994	)	$	87		$	1,878
2018
Balance, December 31, 2017	$	2	$	2,354		$	86		$	(87	)	$	(1,342	)	$	101		$	1,114
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018						2						(2		)				—
Net income						327									6			333
Other comprehensive loss												(35		)	(6		)	(41		)
Common stock dividends						(44		)										(44		)
Distributions to noncontrolling interests															(7		)	(7		)
Purchase of noncontrolling interests			(9		)										9			—
Purchase of redeemable noncontrolling interests			2															2
Contribution from noncontrolling interest															22			22
Common stock share repurchases									(25		)							(25		)
Stock compensation			17															17
Stock withheld for employee taxes									(7		)							(7		)
Balance, September 30, 2018	$	2	$	2,364		$	371		$	(119	)	$	(1,379	)	$	125		$	1,364

During the first quarter of 2018, a wholly-owned subsidiary of Dana purchased the ownership interest in Dana Spicer (Thailand) Limited (a non wholly-owned consolidated subsidiary of Dana) held by ROC Spicer, Ltd. (a non wholly-owned consolidated subsidiary of Dana). Dana maintained its controlling financial interest in Dana Spicer (Thailand) Limited and accordingly accounted for the purchase as an equity transaction. The excess of the fair value of the consideration paid over the carrying value of the investment attributable to the noncontrolling interest in ROC Spicer, Ltd. was recognized as additional noncontrolling interest with a corresponding reduction of the additional paid-in capital of Dana. During the third quarter of 2018, Yulon Motor Co., Ltd. (Yulon) purchased a direct ownership in two of our consolidated operating subsidiaries. Yulon's ownership interest in the two operating subsidiaries did not change as a result of the transactions, as it previously owned the same percentages indirectly through a series of consolidated holding companies. The cash received from Yulon was recognized as additional noncontrolling interest.

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Changes in each component of accumulated other comprehensive income (AOCI) of the parent —

	Parent Company Stockholders
	Foreign Currency Translation			Hedging			Investments		Defined Benefit Plans			Total
Balance, June 30, 2019	$	(694	)	$	(47	)	$	—	$	(227	)	$	(968	)
Other comprehensive income (loss):
Currency translation adjustments	(39		)									(39		)
Holding gains and losses				57								57
Reclassification of amount to net income (a)				(49		)						(49		)
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)									6			6
Tax expense									(1		)	(1		)
Other comprehensive income (loss)	(39		)	8			—		5			(26		)
Balance, September 30, 2019	$	(733	)	$	(39	)	$	—	$	(222	)	$	(994	)
Balance, June 30, 2018	$	(710	)	$	(78	)	$	—	$	(597	)	$	(1,385	)
Other comprehensive income (loss):
Currency translation adjustments	(15		)									(15		)
Holding loss on net investment hedge	(3		)									(3		)
Holding gains and losses				9								9
Reclassification of amount to net income (a)				(7		)						(7		)
Actuarial gain on census update									18			18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)									9			9
Tax (expense) benefit				1					(6		)	(5		)
Other comprehensive income (loss)	(18		)	3			—		21			6
Balance, September 30, 2018	$	(728	)	$	(75	)	$	—	$	(576	)	$	(1,379	)

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	Parent Company Stockholders
	Foreign Currency Translation			Hedging			Investments			Defined Benefit Plans			Total
Balance, December 31, 2018	$	(721	)	$	(54	)	$	—		$	(587	)	$	(1,362	)
Other comprehensive income (loss):
Currency translation adjustments	(12		)										(12		)
Holding gains and losses				77									77
Reclassification of amount to net income (a)				(62		)							(62		)
Net actuarial gain										104			104
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)										282			282
Tax expense										(21		)	(21		)
Other comprehensive income	(12		)	15			—			365			368
Balance, September 30, 2019	$	(733	)	$	(39	)	$	—		$	(222	)	$	(994	)
Balance, December 31, 2017	$	(670	)	$	(64	)	$	2		$	(610	)	$	(1,342	)
Other comprehensive income (loss):
Currency translation adjustments	(55		)										(55		)
Holding loss on net investment hedge	(3		)										(3		)
Holding gains and losses				29									29
Reclassification of amount to net income (a)				(42		)							(42		)
Actuarial gain on census update										18			18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)										26			26
Tax (expense) benefit				2						(10		)	(8		)
Other comprehensive income (loss)	(58		)	(11		)	—			34			(35		)
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018							(2		)				(2		)
Balance, September 30, 2018	$	(728	)	$	(75	)	$	—		$	(576	)	$	(1,379	)

(a) Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments treated as cash flow hedges are reclassified from AOCI into the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. See Note 15 for additional details.

(b) See Note 12 for additional details.

Note 9. Redeemable Noncontrolling Interests

In connection with the acquisition of a controlling financial interest in TM4 from Hydro-Québec on June 22, 2018, we recognized $102 for Hydro-Québec's 45% redeemable noncontrolling interest in TM4. On July 29, 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in SME and an additional indirect 22.5% redeemable noncontrolling interest in PEPS which resulted in recognition of additional redeemable noncontrolling interest of $64. The terms of the agreement provide Hydro-Québec with the right to put all, and not less than all, of its ownership interests in TM4, SME and PEPS to Dana at fair value any time after June 22, 2021. See Note 2 for additional information.

On August 8, 2018, we entered into an agreement to acquire Brevini's remaining 20% ownership interests in BFP and BPT and to settle all claims between the parties. We paid $43 to acquire Brevini's remaining ownership interests and received $10 in settlement of all pending and future claims. AOCI attributable to Brevini's redeemable noncontrolling interests was reclassified to AOCI of the parent company. The difference between the carrying value of Brevini's redeemable noncontrolling interests and the cash paid was recorded to additional paid-in capital of the parent company.

Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the redeemable noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values. Redeemable noncontrolling interest adjustments of redemption value are recorded in retained earnings.

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Reconciliation of changes in redeemable noncontrolling interests —

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance, beginning of period	$	105		$	149		$	100		$	47
Initial fair value of redeemable noncontrolling interests of acquired businesses										102
Purchase of redeemable noncontrolling interest				(46		)				(46		)
Sale of redeemable noncontrolling interest	64						64
Cash contributions from redeemable noncontrolling interests	2						4
Comprehensive income (loss) adjustments:
Net income (loss) attributable to redeemable noncontrolling     interests	(2		)				(3		)	1
Other comprehensive income (loss) attributable to redeemable noncontrolling interests	5						9			(1		)
Balance, end of period	$	174		$	103		$	174		$	103

Note 10. Earnings per Share

Reconciliation of the numerators and denominators of the earnings per share calculations — 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income available to common stockholders - Numerator basic and diluted	$	111	$	95	$	141	$	327
Denominator:
Weighted-average common shares outstanding - Basic	144.0		144.7		144.0		145.1
Employee compensation-related shares, including stock options	0.8		1.2		0.8		1.5
Weighted-average common shares outstanding - Diluted	144.8		145.9		144.8		146.6

The share count for diluted earnings per share is computed on the basis of the weighted-average number of common shares outstanding plus the effects of dilutive common stock equivalents (CSEs) outstanding during the period. We excluded 0.6 million and 0.1 million CSEs from the calculation of diluted earnings per share for the third quarters of 2019 and 2018 and excluded 0.2 million and 0.1 million of CSEs for the respective year-to-date periods as the effect of including them would have been anti-dilutive.

Note 11. Stock Compensation

The Compensation Committee of our Board of Directors approved the grant of RSUs and performance share units (PSUs) shown in the table below during 2019. 

	Granted (In millions)	Grant Date Fair Value*
RSUs	1.0	$	17.12
PSUs	0.4	$	16.17

* Weighted-average per share

We calculated the fair value of the RSUs at grant date based on the closing market price of our common stock at the date of grant. The number of PSUs that ultimately vest is contingent on achieving specified return on invested capital targets and specified margin targets, with an even distribution between the two targets. We estimated the fair value of the PSUs at grant date based on the closing market price of our common stock at the date of grant adjusted for the value of assumed dividends over the period because the awards are not dividend protected.

We paid $2 of cash to settle RSUs. We issued 0.7 million and 0.2 million shares of common stock based on the vesting of RSUs and PSUs during 2019. We recognized stock compensation expense of $5 and $4 during the third quarters of 2019 and

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2018 and $15 and $13 during the respective year-to-date periods. At September 30, 2019, the total unrecognized compensation cost related to the nonvested awards granted and expected to vest was $27. This cost is expected to be recognized over a weighted-average period of 1.9 years.

Note 12. Pension and Postretirement Benefit Plans

We have a number of defined contribution and defined benefit, qualified and nonqualified, pension plans covering eligible employees. Other postretirement benefits (OPEB), including medical and life insurance, are provided for certain employees upon retirement.

Components of net periodic benefit cost — 

	Pension
	2019						2018						OPEB - Non-U.S.
Three Months Ended September 30,	U.S.			Non-U.S.			U.S.			Non-U.S.			2019		2018
Interest cost	$	7		$	1		$	11		$	2		$	1	$	—
Expected return on plan assets	(10		)				(18		)	(1		)
Service cost				2						2
Settlement charge				2
Amortization of net actuarial loss	3			2			7			2
Net periodic benefit cost	$	—		$	7		$	—		$	5		$	1	$	—
Nine Months Ended September 30,
Interest cost	$	33		$	5		$	32		$	5		$	2	$	2
Expected return on plan assets	(42		)	(2		)	(53		)	(2		)
Service cost				6						6
Settlement charge	258			2
Amortization of net actuarial loss	18			5			21			5
Net periodic benefit cost	$	267		$	16		$	—		$	14		$	2	$	2

The service cost components of net periodic pension and OPEB costs are included in cost of sales and selling, general and administrative expenses as part of compensation cost and are eligible for capitalization in inventory and other assets. The non-service components are reported in other expense, net and are not eligible for capitalization.

Pension expense for 2019 increased versus the same period in 2018 as a result of a lower assumed return on plan assets, higher interest expense, and a pension settlement charge.

Plan termination — In October 2017, upon authorization by the Dana Board of Directors, we commenced the process of terminating one of our U.S. defined benefit pension plans. During the second quarter of 2019, payments were made from plan assets to those plan participants that elected to take the lump-sum payout option. In June 2019, we entered into (a) a definitive commitment agreement by and among Dana, Athene Annuity and Life Company (Athene) and State Street Global Advisors, as independent fiduciary to the plan, and (b) a definitive commitment agreement by and among Dana, Companion Life Insurance Company (Companion) and State Street Global Advisors, as independent fiduciary to the plan. Pursuant to the definitive commitment agreements, the plan purchased group annuity contracts that irrevocably transferred to the insurance companies the remaining future pension benefit obligations of the plan. Plan participant’s benefits are unchanged as a result of the termination. We contributed $62 to the plan prior to the purchase of the group annuity contracts. The purchase of group annuity contracts was then funded directly by the assets of the plan in June 2019. By irrevocably transferring the obligations to Athene and Companion, we reduced our unfunded pension obligation by approximately $165 and recognized a pre-tax pension settlement charge of $258 in the second quarter of 2019.

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Note 13. Marketable Securities 

	September 30, 2019						December 31, 2018
	Cost		Unrealized Gain (Loss)		Fair Value		Cost		Unrealized Gain (Loss)		Fair Value
U.S. government securities	$	—	$	—	$	—	$	2	$	—	$	2
Corporate securities							4				4
Certificates of deposit	20				20		15				15
Total marketable securities	$	20	$	—	$	20	$	21	$	—	$	21

U.S. government securities include bonds issued by government-sponsored agencies and Treasury notes. Corporate securities are primarily debt securities. Certificates of deposit maturing in one year or less total $20 at September 30, 2019.

Note 14. Financing Agreements

Long-term debt at —

	Interest Rate		9/30/2019			December 31, 2018
Senior Notes due September 15, 2023	6.000%		$	300		$	300
Senior Notes due December 15, 2024	5.500%		425			425
Senior Notes due April 15, 2025	5.750%	*	400			400
Senior Notes due June 1, 2026	6.500%	*	375			375
Term Facility A			474			265
Term Facility B			349
Other indebtedness			63			28
Debt issuance costs			(27		)	(18		)
			2,359			1,775
Less: Current portion of long-term debt			13			20
Long-term debt, less debt issuance costs			$	2,346		$	1,755

* In conjunction with the issuance of the April 2025 Notes we entered into 8-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of 3.850%. In conjunction with the issuance of the June 2026 Notes we entered into 10-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the June 2026 Notes to euro-denominated debt at a fixed rate of 5.140%. See Note 15 for additional information.

Interest on the senior notes is payable semi-annually and interest on the Term Facilities is payable quarterly. Other indebtedness includes the note payable to SME, borrowings from various financial institutions, finance lease obligations and the unamortized fair value adjustment related to a terminated interest rate swap. See Note 2 for additional information on the note payable to SME and Note 15 for additional information on the terminated interest rate swap.

Credit agreement — On February 28, 2019, we entered into an amended credit and guaranty agreement comprised of a $500 term facility (the Term A Facility), a $450 term facility (the Term B Facility and, together with the Term A Facility, the Term Facilities) and a $750 revolving credit facility (the Revolving Facility). The Term A Facility and the Revolving Facility were expansions of our existing facilities. On February 28, 2019, we drew the $225 available under the Term A Facility and the $450 available under the Term B Facility. The proceeds from the Term Facilities were used to acquire the Oerlikon Drive Systems segment of the Oerlikon Group and pay for related integration activities. We were required to make equal quarterly installments on the Term A Facility on the last day of each fiscal quarter of $8 beginning March 31, 2019 and 0.25% of the aggregate principal advances of the Term B Facility quarterly commencing on June 30, 2019. On August 30, 2019, we amended our credit and guaranty agreement, increasing the Revolving Facility to $1,000 and extending the maturities and reducing the interest rates of both the Revolving Facility and the Term A Facility. On August 30, we borrowed $100 on the Revolving Facility and paid down a similar amount of the Term B Facility. Outstanding borrowings on the Revolving Facility are included in short-term debt. We are now required to make quarterly installments on the Term A Facility on the last day of each fiscal quarter of $7 beginning on September 30, 2020 and are no longer required to make quarterly installments on the Term B Facility. We may prepay some or all of the amounts under the Term Facilities without penalty. We recorded deferred fees of $13 and $4 related to the amendments to the Term Facilities and the Revolving Facility, respectively. The deferred fees are being amortized over the life of the applicable facilities. Deferred financing costs on our Revolving Facility are included in other noncurrent assets. The Revolving Facility and the Term A Facility mature on August 17, 2024. The Term B Facility matures on February 28, 2026.

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The Term Facilities and the Revolving Facility are guaranteed by all of our wholly-owned domestic subsidiaries subject to certain exceptions (the guarantors) and are secured by a first-priority lien on substantially all of the assets of Dana and the guarantors, subject to certain exceptions.

Advances under the Term A Facility and the Revolving Facility bear interest at a floating rate based on, at our option, the base rate or Eurodollar rate (each as described in the credit agreement) plus a margin as set forth below:

	Margin
Total Net Leverage Ratio	Base Rate		Eurodollar Rate
Less than or equal to 1.00:1.00	0.25	%	1.25	%
Greater than 1.00:1.00 but less than or equal to 2.00:1.00	0.50	%	1.50	%
Greater than 2.00:1.00	0.75	%	1.75	%

The Term B Facility bears interest based on, at our option, the Base Rate plus 1.25% or the Eurodollar rate plus 2.25%. We have elected to pay interest on our advances under the Term Facilities at the Eurodollar Rate. The interest rate on the Term A Facility was 3.544% and the Term B Facility was 4.294%, inclusive of the applicable margins, as of September 30, 2019. We have elected to pay interest on our advances under the Revolving Facility at the Eurodollar Rate. The interest rate on the Revolving Facility was 3.544%, inclusive of the applicable margins, as of September 30, 2019.

Commitment fees are applied based on the average daily unused portion of the available amounts under the Revolving Facility as set forth below:

Total Net Leverage Ratio	Commitment Fee
Less than or equal to 1.00:1.00	0.250	%
Greater than 1.00:1.00 but less than or equal to 2.00:1.00	0.375	%
Greater than 2.00:1.00	0.500	%

Up to $275 of the Revolving Facility may be applied to letters of credit, which reduces availability. We pay a fee for issued and undrawn letters of credit in an amount per annum equal to the applicable margin for Eurodollar rate advances based on a quarterly average availability under issued and undrawn letters of credit under the Revolving Facility and a per annum fronting fee of 0.125%, payable quarterly.

As of September 30, 2019, we had outstanding borrowings of $100 under the Revolving Facility and had utilized $21 for letters of credit. We had availability at September 30, 2019 under the Revolving Facility of $879 after deducting the outstanding borrowings and letters of credit.

Debt covenants — At September 30, 2019, we were in compliance with the covenants of our financing agreements. Under the Term Facilities, Revolving Facility and the senior notes, we are required to comply with certain incurrence-based covenants customary for facilities of these types and, in the case of the Term A Facility and Revolving Facility, a maintenance covenant tested on the last day of each fiscal quarter requiring us to maintain a first lien net leverage ratio not to exceed 2.00 to 1.00.

Note 15. Fair Value Measurements and Derivatives

In measuring the fair value of our assets and liabilities, we use market data or assumptions that we believe market participants would use in pricing an asset or liability including assumptions about risk when appropriate. Our valuation techniques include a combination of observable and unobservable inputs.

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Fair value measurements on a recurring basis — Assets and liabilities that are carried in our balance sheet at fair value are as follows:

			Fair Value
Category	Balance Sheet Location	Fair Value Level	September 30, 2019		December 31, 2018
Available-for-sale securities	Marketable securities	2	$	20	$	21
Currency forward contracts
Cash flow hedges	Accounts receivable - Other	2	8		6
Cash flow hedges	Other accrued liabilities	2	6		5
Undesignated	Accounts receivable - Other	2	1		2
Undesignated	Other accrued liabilities	2	1		1
Interest rate collars	Other accrued liabilities	2	5
Currency swaps
Cash flow hedges	Other noncurrent liabilities	2	42		118

Fair Value Level 1 assets and liabilities reflect quoted prices in active markets. Fair Value Level 2 assets and liabilities reflect the use of significant other observable inputs.

Fair value of financial instruments — The financial instruments that are not carried in our balance sheet at fair value are as follows:

		September 30, 2019				December 31, 2018
	Fair Value Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	2	$	1,500	$	1,553	$	1,500	$	1,442
Term Facility	2	823		825		265		265
Other indebtedness*	2	63		58		28		23
Total		$	2,386	$	2,436	$	1,793	$	1,730

* The carrying value includes the unamortized portion of a fair value adjustment related to a terminated interest rate swap at both dates.

Interest rate derivatives — Our portfolio of derivative financial instruments periodically includes interest rate swaps and interest rate collars designed to mitigate our interest rate risk. As of September 30, 2019, no fixed-to-floating interest rate swaps remain outstanding. However, a $5 fair value adjustment to the carrying amount of our December 2024 Notes, associated with a fixed-to-floating interest rate swap that had been executed but was subsequently terminated during 2015, remains deferred at September 30, 2019. This amount is being amortized as a reduction of interest expense through the period ending December 2024, the scheduled maturity date of the December 2024 Notes. The amount amortized as a reduction of interest expense was not material during the three months and nine months ended September 30, 2019. We have outstanding interest rate collars with a notional value of $425 that will mature in December 2021. For interest rate collars, no payments or receipts are exchanged unless interest rates rise or fall in excess of a predetermined ceiling or floor rate.

Foreign currency derivatives — Our foreign currency derivatives include forward contracts associated with forecasted transactions, primarily involving the purchases and sales of inventory through the next fifteen months, as well as currency swaps associated with certain recorded external notes payable and intercompany loans receivable and payable. Periodically, our foreign currency derivatives also include net investment hedges of certain of our investments in foreign operations.

We have executed fixed-to-fixed cross-currency swaps in conjunction with the issuance of certain notes to eliminate the variability in the functional-currency-equivalent cash flows due to changes in exchange rates associated with the forecasted principal and interest payments. All of the underlying designated financial instruments, and any subsequent replacement debt, have been designated as the hedged items in each respective cash flow hedge relationship, as shown in the table below. Designated as cash flow hedges of the forecasted principal and interest payments of the underlying designated financial instruments, or subsequent replacement debt, all of the swaps economically convert the underlying designated financial instruments into the functional currency of each respective holder. The impact of the interest rate differential between the inflow and outflow rates on all fixed-to-fixed cross-currency swaps is recognized during each period as a component of interest expense.

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The following fixed-to-fixed cross-currency swaps were outstanding at September 30, 2019:

Underlying Financial Instrument						Derivative Financial Instrument
Description	Type	Face Amount		Rate		Designated Notional Amount		Traded Amount		Inflow Rate		Outflow Rate
June 2026 Notes	Payable	$	375	6.50	%	$	375	€	338	6.50	%	5.14	%
April 2025 Notes	Payable	$	400	5.75	%	$	400	€	371	5.75	%	3.85	%
Luxembourg Intercompany Notes	Receivable	€	281	3.91	%	€	281	$	300	6.00	%	3.91	%

All of the swaps are expected to be highly effective in offsetting the corresponding currency-based changes in cash outflows related to the underlying designated financial instruments. Based on our qualitative assessment that the critical terms of all of the underlying designated financial instruments and all of the associated swaps match and that all other required criteria have been met, we do not expect to incur any ineffectiveness. As effective cash flow hedges, changes in the fair value of the swaps will be recorded in OCI during each period. Additionally, to the extent the swaps remain effective, the appropriate portion of AOCI will be reclassified to earnings each period as an offset to the foreign exchange gain or loss resulting from the remeasurement of the underlying designated financial instruments. See Note 14 for additional information about the June 2026 Notes and the April 2025 Notes. To the extent the swaps are no longer effective, changes in their fair values will be recorded in earnings.

The total notional amount of outstanding foreign currency forward contracts, involving the exchange of various currencies, was $473 at September 30, 2019 and $1,007 at December 31, 2018. The total notional amount of outstanding foreign currency swaps, including the fixed-to-fixed cross-currency swaps, was $1,081 at September 30, 2019 and $1,097 at December 31, 2018.

The following currency derivatives were outstanding at September 30, 2019:

		Notional Amount (U.S. Dollar Equivalent)
Functional Currency	Traded Currency	Designated		Undesignated		Total		Maturity
U.S. dollar	Mexican peso, euro	$	145	$	8	$	153	Dec-20
Euro	U.S. dollar, Canadian dollar, Hungarian forint, British pound, Swiss franc, Indian rupee, Russian ruble, Chinese renminbi, Mexican peso, Australian dollar, Japanese yen	112		21		133		Jan-24
British pound	U.S. dollar, euro	1		2		3		Sep-20
Swedish krona	euro	3				3		Dec-19
South African rand	U.S. dollar, euro, Thai baht	7		4		11		Sep-20
Thai baht	U.S. dollar	13				13		Jun-20
Canadian dollar	U.S. dollar	17				17		Dec-20
Brazilian real	U.S. dollar, euro	51		19		70		Sep-20
Indian rupee	U.S. dollar, British pound, euro			61		61		Dec-20
Chinese renminbi	U.S. dollar, Canadian dollar, euro			7		7		Nov-19
Taiwan dollar	Chinese renminbi			2		2		Mar-20
Total forward contracts		349		124		473
U.S. dollar	euro	306				306		Sep-23
Euro	U.S. dollar	775				775		Jun-26
Total currency swaps		1,081		—		1,081
Total currency derivatives		$	1,430	$	124	$	1,554

Designated cash flow hedges — With respect to contracts designated as cash flow hedges, changes in fair value during the period in which the contracts remain outstanding are reported in OCI to the extent such contracts remain effective. Effectiveness is measured by using regression analysis to determine the degree of correlation between the change in the fair value of the derivative instrument and the change in the associated foreign currency exchange rates. Changes in fair value of contracts not designated as cash flow hedges or as net investment hedges are recognized in other expense, net in the period in

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which the changes occur. Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments, including those that have been designated as cash flow hedges and those that have not been designated, are recognized in the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. Accordingly, amounts are potentially recorded in sales, cost of sales or, in certain circumstances, other expense, net.

The following table provides a summary of deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less:

	Deferred Gain (Loss) in AOCI
	September 30, 2019			December 31, 2018			Gain (loss) expected to be reclassified into income in one year or less
Forward Contracts	$	—		$	2		$	—
Collar	(5		)
Cross-Currency Swaps	(38		)	(60		)
Total	$	(43	)	$	(58	)	$	—

The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with cash flow hedging relationships:

	Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
	Three Months Ended September 30, 2019
Derivatives Designated as Cash Flow Hedges	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	2,164	$	1,882		$	8
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(2		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(47		)
	Nine Months Ended September 30, 2019
	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	6,633	$	5,725		$	31
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(7		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(55		)

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	Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
	Three Months Ended September 30, 2018
Derivatives Designated as Cash Flow Hedges	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	1,978	$	1,692		$	9
(Gain) or loss on cash flow hedging relationships
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(7		)
	Nine Months Ended September 30, 2018
	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	6,170	$	5,269		$	19
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(2		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(40		)

The amounts reclassified from AOCI into income for the cross-currency swaps represent an offset to a foreign exchange loss on our foreign currency-denominated intercompany and external debt instruments.

Certain of our hedges of forecasted transactions have not formally been designated as cash flow hedges. As undesignated forward contracts, the changes in the fair value of such contracts are included in earnings for the duration of the outstanding forward contract. Any realized gain or loss on the settlement of such contracts is recognized in the same period and in the same line item in the consolidated statement of operations as the underlying transaction. The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with undesignated hedging relationships.

	Amount of Gain (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019			Location of Gain or (Loss) Recognized in Income
Foreign currency forward contracts	$	(3	)	$	(15	)	Other expense, net

During the first quarter of 2019 we settled the outstanding undesignated Swiss franc notional deal contingent forward related to the ODS acquisition for $21, resulting in a realized loss of $13 included in other expense, net in the first quarter of 2019.

Net investment hedges — We periodically designate derivative contracts or underlying non-derivative financial instruments as net investment hedges. With respect to contracts designated as net investment hedges, we apply the forward method, but for non-derivative financial instruments designated as net investment hedges, we apply the spot method. Under both methods, we report changes in fair value in the cumulative translation adjustment (CTA) component of OCI during the period in which the contracts remain outstanding to the extent such contracts and non-derivative financial instruments remain effective.

Note 16. Commitments and Contingencies

Product liabilities — Accrued product liability costs were $14 at September 30, 2019 and $19 at December 31, 2018. We had also recognized amounts recoverable from third parties of $14 at September 30, 2019 and $24 at December 31, 2018. Payments made to claimants precede recovery of amounts from third parties, and may result in recoverable amounts in excess of the total liability. We estimate these liabilities based on current information and assumptions about the value and likelihood of the claims against us.

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Environmental liabilities — Accrued environmental liabilities were $9 at September 30, 2019 and $10 at December 31, 2018. We consider the most probable method of remediation, current laws and regulations and existing technology in estimating our environmental liabilities.

Guarantee of lease obligations — In connection with the divestiture of our Structural Products business in 2010, leases covering three U.S. facilities were assigned to a U.S. affiliate of Metalsa. Under the terms of the sale agreement, we will guarantee the affiliate’s performance under the leases, which run through June 2025, including approximately $6 of annual payments. In the event of a required payment by Dana as guarantor, we are entitled to pursue full recovery from Metalsa of the amounts paid under the guarantee and to take possession of the leased property.

Other legal matters — We are subject to various pending or threatened legal proceedings arising out of the normal course of business or operations. In view of the inherent difficulty of predicting the outcome of such matters, we cannot state what the eventual outcome of these matters will be. However, based on current knowledge and after consultation with legal counsel, we believe that any liabilities that may result from these proceedings will not have a material adverse effect on our liquidity, financial condition or results of operations.

Note 17. Warranty Obligations

We record a liability for estimated warranty obligations at the dates our products are sold. We record the liability based on our estimate of costs to settle future claims. Adjustments to our estimated costs at time of sale are made as claim experience and other new information becomes available. Obligations for service campaigns and other occurrences are recognized as adjustments to prior estimates when the obligation is probable and can be reasonably estimated.

Changes in warranty liabilities — 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance, beginning of period	$	95		$	75		$	75		$	76
Acquisitions							17			1
Amounts accrued for current period sales	9			9			26			27
Adjustments of prior estimates				(1		)	2			(1		)
Settlements of warranty claims	(11		)	(9		)	(27		)	(28		)
Currency impact	(2		)				(2		)	(1		)
Balance, end of period	$	91		$	74		$	91		$	74

Note 18. Income Taxes

We estimate the effective tax rate expected to be applicable for the full fiscal year and use that rate to provide for income taxes in interim reporting periods. We also recognize the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.

We have generally not recognized tax benefits on losses generated in several entities where the recent history of operating losses does not allow us to satisfy the “more likely than not” criterion for the recognition of deferred tax assets. Consequently, there is no income tax expense or benefit recognized on the pre-tax income or losses in these jurisdictions as valuation allowances are adjusted to offset the associated tax expense or benefit.

We record interest and penalties related to uncertain tax positions as a component of income tax expense. Net interest expense for the periods presented herein is not significant.

We reported an income tax expense of $5 and $31 for the third quarters of 2019 and 2018 and income tax benefit of $27 and income tax expense of $75 for the respective year-to-date periods. Our effective tax rates were (28)% and 19% for the first nine months of 2019 and 2018. During the third quarter of 2019, we recognized a benefit of $22 for the release of a valuation allowance in a subsidiary in Brazil based on recent history of profitability and increased income projections. During the second quarter of 2019, a pre-tax pension settlement charge of $258 with an associated income tax benefit of $9 was recorded. Also during the second quarter of 2019, we recorded tax benefits of $48 related to tax actions that adjusted federal tax credits and

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$30 related to the development of a tax planning strategy which reduced valuation allowances on existing federal tax credits. During the first quarter of 2019, we recognized a benefit of $22 related to the reduction of valuation allowances in the U.S. based on increased income projections. Partially offsetting this benefit in the first quarter of 2019 was $6 of expense related to a U.S. state law change. Excluding these items, the effective tax rate would be 28% for the 2019 nine-month period. The 2018 tax expense reflected several discrete items in the second quarter, during which we recognized a benefit of $46 related to U.S. state law changes and the development and implementation of a tax planning strategy which adjusted federal tax credits, federal and state net operating losses and the associated valuation allowances. Partially offsetting this benefit was $7 of expense to settle outstanding tax matters in a foreign jurisdiction and foreign taxes related to cash repatriation actions. Excluding these items, the effective tax rate would be 29% for the 2018 nine-month period. Our effective income tax rates vary from the U.S. federal statutory rate of 21% due to establishment, release and adjustment of valuation allowances in several countries, nondeductible expenses and deemed income, local tax incentives in several countries outside the U.S., different statutory tax rates outside the U.S. and withholding taxes related to repatriations of international earnings. The effective income tax rate may vary significantly due to fluctuations in the amounts and sources, both foreign and domestic, of pretax income and changes in the amounts of non-deductible expenses.

Dividends of earnings from non-U.S. operations are generally no longer subjected to U.S. income tax. We continue to analyze and adjust the estimated tax impact of the income and non-U.S. withholding tax liabilities based on the amounts and sources of these earnings.

Note 19. Other Expense, Net 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Non-service cost components of pension and OPEB costs	$	(4	)	$	(3	)	$	(19	)	$	(10	)
Government grants and incentives	3			3			11			8
Foreign exchange loss	(1		)	(3		)	(11		)	(7		)
Strategic transaction expenses, net of transaction breakup fee income	(8		)	(6		)	(32		)	(13		)
Non-income tax legal judgment							6
Other, net	2						14			3
Other expense, net	$	(8	)	$	(9	)	$	(31	)	$	(19	)

Foreign exchange gains and losses on cross-currency intercompany loan balances that are not of a long-term investment nature are included above. Foreign exchange gains and losses on intercompany loans that are permanently invested are reported in OCI. Foreign exchange loss in 2019 included a loss on the undesignated Swiss franc notional deal contingent forward related to the ODS acquisition. See Note 15 for additional information.

Strategic transaction expenses relate primarily to costs incurred in connection with acquisition and divestiture related activities, including costs to complete the transaction and post-closing integration costs. Strategic transaction expenses in 2019 were primarily attributable to the acquisition of ODS. Strategic transaction expenses in 2018 were primarily attributable to our bid to acquire the driveline business of GKN plc. and our acquisition of TM4 and were partially offset by a $40 transaction breakup fee associated with the GKN plc. transaction. See Note 2 for additional information.

During the first quarter of 2019, we won a legal judgment regarding the methodology used to calculate PIS/COFINS tax in Brazil.

Note 20. Revenue from Contracts with Customers

We generate revenue from selling production parts to original equipment manufacturers (OEMs) and service parts to OEMs and aftermarket customers. While we provide production and service parts to certain OEMs under awarded multi-year programs, these multi-year programs do not contain any commitment to volume by the customer. As such, individual customer releases or purchase orders represent the contract with the customer. Our customer contracts do not provide us with an enforceable right to payment for performance completed to date throughout the contract term. As such, we recognize part sales revenue at the point in time when the parts are shipped, and risk of loss has transferred to the customer. We have elected to continue to include shipping and handling fees billed to customers in revenue, while including costs of shipping and handling in costs of sales. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate government agencies. Payment terms with our customers are established based on industry and regional practices and generally do not exceed 180 days.

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Certain of our customer contracts include rebate incentives. We estimate expected rebates and accrue the corresponding refund liability, as a reduction of revenue, at the time covered product is sold to the customer based on anticipated customer purchases during the rebate period and contractual rebate percentages. Refund liabilities are included in other accrued liabilities on our consolidated balance sheet. We provide standard fitness for use warranties on the products we sell, accruing for estimated costs related to product warranty obligations at time of sale. See Note 17 for additional information.

Contract liabilities are primarily comprised of cash deposits made by customers with cash in advance payment terms. Generally, our contract liabilities turn over frequently given our relatively short production cycles. Contract liabilities were $18 and $12 at September 30, 2019 and December 31, 2018. Contract liabilities are included in other accrued liabilities on our consolidated balance sheet.

Disaggregation of revenue —

The following table disaggregates revenue for each of our operating segments by geographical market:

Three Months Ended September 30, 2019	Light Vehicle		Commercial Vehicle		Off-Highway		Power Technologies		Total
North America	$	699	$	238	$	89	$	132	$	1,158
Europe	80		49		381		104		614
South America	34		85		11		4		134
Asia Pacific	117		26		101		14		258
Total	$	930	$	398	$	582	$	254	$	2,164
Nine Months Ended September 30, 2019
North America	$	2,042	$	745	$	245	$	412	$	3,444
Europe	256		181		1,243		325		2,005
South America	105		245		31		15		396
Asia Pacific	360		95		289		44		788
Total	$	2,763	$	1,266	$	1,808	$	796	$	6,633

Three Months Ended September 30, 2018
North America	$	605	$	232	$	35	$	141	$	1,013
Europe	83		62		322		105		572
South America	46		79		9		6		140
Asia Pacific	145		33		59		16		253
Total	$	879	$	406	$	425	$	268	$	1,978
Nine Months September 30, 2018
North America	$	1,869	$	677	$	109	$	442	$	3,097
Europe	264		206		1,083		337		1,890
South America	139		240		23		16		418
Asia Pacific	430		94		187		54		765
Total	$	2,702	$	1,217	$	1,402	$	849	$	6,170

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Note 21. Segments

We are a global provider of high-technology products to virtually every major vehicle and engine manufacturer in the world. We also serve the stationary industrial market. Our technologies include drive and motion products (axles, driveshafts, planetary hub drives, power-transmission products, tire-management products, transmissions, and motors, power inverters and controls systems for electric vehicles); sealing solutions (gaskets, seals, heat shields, and fuel-cell plates); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, and exhaust-gas heat recovery); and fluid-power products (pumps, valves, motors, and controls). We serve our global light vehicle, medium/heavy vehicle and off-highway markets through four operating segments – Light Vehicle Driveline Technologies (Light Vehicle), Commercial Vehicle Driveline Technologies (Commercial Vehicle), Off-Highway Drive and Motion Technologies (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 —

	2019							2018
Three Months Ended September 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	930	$	30		$	113	$	879	$	34		$	102
Commercial Vehicle	398		27			33		406		29			39
Off-Highway	582		3			79		425		3			69
Power Technologies	254		7			28		268		5			33
Eliminations and other			(67		)					(71		)
Total	$	2,164	$	—		$	253	$	1,978	$	—		$	243
Nine Months Ended September 30,
Light Vehicle	$	2,763	$	99		$	333	$	2,702	$	103		$	297
Commercial Vehicle	1,266		80			115		1,217		83			114
Off-Highway	1,808		13			264		1,402		8			220
Power Technologies	796		17			90		849		16			117
Eliminations and other			(209		)					(210		)
Total	$	6,633	$	—		$	802	$	6,170	$	—		$	748

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Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Segment EBITDA	$	253		$	243		$	802		$	748
Corporate expense and other items, net	(3		)	(3		)	(9		)	(14		)
Depreciation	(82		)	(63		)	(235		)	(187		)
Amortization	(4		)	(3		)	(12		)	(8		)
Non-service cost components of pension and OPEB costs	(4		)	(3		)	(19		)	(10		)
Pension settlement charge	(2		)				(260		)
Restructuring charges, net	(5		)	(9		)	(23		)	(17		)
Stock compensation expense	(5		)	(4		)	(15		)	(13		)
Strategic transaction expenses, net of transaction breakup   fee income	(8		)	(6		)	(32		)	(13		)
Acquisition related inventory adjustments	(3		)				(12		)
Non-income tax legal judgment							6
Other items				(5		)	(9		)	(10		)
Impairment of indefinite-lived intangible asset										(20		)
Adjustment in fair value of disposal group held for sale										3
Earnings before interest and income taxes	137			147			182			459
Interest expense	31			24			92			71
Interest income	3			3			8			8
Earnings before income taxes	109			126			98			396
Income tax expense (benefit)	5			31			(27		)	75
Equity in earnings of affiliates	8			1			22			13
Net income	$	112		$	96		$	147		$	334

Note 22. Equity Affiliates

We have a number of investments in entities that engage in the manufacture and supply of vehicular parts (primarily axles, driveshafts, wheel-end braking systems) and motors for electric vehicles and industrial applications.

The decrease in equity method investments from the prior period is due to our acquisition of PEBL's interest in PEPS. The acquisition of PEBL's interest in PEPS, along with our existing ownership interest in PEPS through our TM4 subsidiary, provides us with a controlling financial interest in PEPS. See Note 2 for additional information.

As part of the ODS acquisition, we acquired an ownership interest in Ashwoods Innovations Ltd. (Ashwoods). The minority shareholders in this entity have substantive participating rights that allow them to effectively participate in the decisions made in the ordinary course of business that are significant to its operations. Due to these factors, we do not have control over this entity and therefore account for this investment under the equity method of accounting. Our equity method investment in Ashwoods is included in the net assets of our Off-Highway operating segment.

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Equity method investments exceeding $5 at September 30, 2019 — 

	Ownership Percentage	Investment
Dongfeng Dana Axle Co., Ltd. (DDAC)	50%	$	90
Bendix Spicer Foundation Brake, LLC	20%	51
Axles India Limited	48%	10
Ashwoods Innovations Ltd.	58%	7
Taiway Ltd.	28%	5
All others as a group		7
Investments in equity affiliates		170
Investments in affiliates carried at cost		2
Investments in affiliates		$	172

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Dollars in millions)

Management's discussion and analysis of financial condition and results of operations should be read in conjunction with the financial statements and accompanying notes in this report.

Forward-Looking Information

Statements in this report (or otherwise made by us or on our behalf) that are not entirely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often be identified by words such as “anticipates,” “expects,” “believes,” “intends,” “plans,” “predicts,” “seeks,” “estimates,” “projects,” “outlook,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing” and similar expressions, variations or negatives of these words. These statements represent the present expectations of Dana Incorporated and its consolidated subsidiaries (Dana) based on our current information and assumptions. Forward-looking statements are inherently subject to risks and uncertainties. Our plans, actions and actual results could differ materially from our present expectations due to a number of factors, including those discussed below and elsewhere in this report and in our other filings with the Securities and Exchange Commission (SEC). All forward-looking statements speak only as of the date made and we undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this report.

Management Overview

Dana is headquartered in Maumee, Ohio, and was incorporated in Delaware in 2007. We are a global provider of high-technology products to virtually every major vehicle and engine manufacturer in the world. We also serve the stationary industrial market. Our technologies include drive and motion products (axles, driveshafts, planetary hub drives, power-transmission products, transmissions, electric motors, inverters, controls and tire-management products); sealing solutions (gaskets, seals, heat shields, and fuel-cell plates); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, and exhaust-gas heat recovery); and fluid-power products (pumps, valves, motors, and controls). We serve our global light vehicle, medium/heavy vehicle and off-highway markets through four business units – Light Vehicle Driveline Technologies (Light Vehicle), Commercial Vehicle Driveline Technologies (Commercial Vehicle), Off-Highway Drive and Motion Technologies (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. We have a diverse customer base and geographic footprint, which minimizes our exposure to individual market and segment declines. At September 30, 2019, we employed approximately 37,000 people, operated in 33 countries and had 154 major facilities housing manufacturing and distribution operations, service and assembly operations, technical and engineering centers and administrative offices.

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External sales by operating segment for the periods ended September 30, 2019 and 2018 are as follows:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2019				2018				2019				2018
			% of				% of				% of				% of
	Dollars		Total		Dollars		Total		Dollars		Total		Dollars		Total
Light Vehicle	$	930	43.0	%	$	879	44.5	%	$	2,763	41.6	%	$	2,702	43.8	%
Commercial Vehicle	398		18.4	%	406		20.5	%	1,266		19.1	%	1,217		19.7	%
Off-Highway	582		26.9	%	425		21.5	%	1,808		27.3	%	1,402		22.7	%
Power Technologies	254		11.7	%	268		13.5	%	796		12.0	%	849		13.8	%
Total	$	2,164			$	1,978			$	6,633			$	6,170

See Note 21 to our consolidated financial statements in Item 1 of Part I for further financial information about our operating segments.

Our internet address is www.dana.com. The inclusion of our website address in this report is an inactive textual reference only and is not intended to include or incorporate by reference the information on our website into this report.

Operational and Strategic Initiatives

Dana has refined the company’s enterprise strategy to build on our strong technology foundation and leverage our resources across the organization to position us for a profitable growth trajectory. The strategy is composed of five core pillars.

Central to our strategy is Leveraging Our Core, which focuses on utilizing our core capabilities in power conveyance, thermal management, and mechatronics across all three mobility markets to deliver a sustainable competitive advantage. This enables us to accelerate our speed of innovation through knowledge sharing across the enterprise, and to realize cost efficiencies delivered through shared core technologies. It also magnifies our investments by utilizing shared research and development.

The strategy also emphasizes Driving Customer Centricity, which has positioned us to win more than our fair share of drive systems business across all three mobility markets. As our OEM customers are faced with redeploying capital toward the emerging megatrends of mobility, autonomous driving, and digitization to remain competitive, our focus on driving customer centricity yields more OEM outsourcing opportunities.

We are also investing in capabilities to drive growth in Asia-Pacific to Expand Global Markets in the region with the highest growth rates and earliest electrification adoption. Focusing on Asia Pacific represents a significant opportunity to gain a fair share in the world’s largest mobility market.

We continue to focus on Delivering Innovative Solutions that allow us to capitalize on secular growth trends, such as engine downsizing, while driveline enhancements offer significant opportunities to expand our addressable market as physical products evolve toward digital solutions. Delivering innovative solutions yields market expansion and higher content per vehicle.

Initiatives to capitalize on evolving hybridization and electrification vehicle trends are a core ingredient of our final enterprise strategy element, Lead Electric Propulsion. Our efforts are focused on developing and delivering fully integrated e-Propulsion systems to capture opportunities to double content per vehicle as our core markets shift from internal combustion engines to electric propulsion. In addition to our current technologies in battery cooling and fuel cells, this element of our strategy is leveraging our deep expertise in driveline technology to enable the hybridization and electrification of our core markets. We are working with our customers to develop new solutions for those markets where electrification will be adopted first such as hybrid applications, buses, and urban delivery vehicles. These new solutions, which include advanced electric propulsion systems with fully integrated motors and controls, are included in our Spicer^® Electrified^™ portfolio of products. Working with our joint venture partner, our latest integrated e-Axle was launched during the first quarter of 2018 in a bus application in China. Our investment in SME in January 2019, PEPS in June 2019, Nordresa in August 2019 and TM4 in June 2018 (see Acquisitions section below) adds electric motors, power inverters, control and battery-management systems, and electric powertrain system integration expertise to our product portfolio, enhancing our range of hybrid and electric vehicle solutions for customers across all three of our end markets. Electrification creates significant opportunity in driveline applications.

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The development and implementation of our enterprise strategy is positioning Dana to grow profitably due to our increased customer focus as we leverage our core capabilities, expand into new markets, develop and commercialize new technologies and continue to lead in vehicle electrification.

Capital Structure Initiatives

In addition to investing in our business, we plan to continue prioritizing the allocation of capital to reduce debt and maintain a strong financial position. In January 2018, we announced our intention to drive toward investment grade metrics as part of a balanced approach to our capital allocation priorities and our goal of further strengthening our balance sheet.

Shareholder return actions — When evaluating capital structure initiatives, we balance our growth opportunities and shareholder value initiatives with maintaining a strong balance sheet and access to capital. Our strong financial position has enabled us to simplify our capital structure while providing returns to our shareholders in the form of cash dividends and a reduction in the number of shares outstanding. Our Board of Directors authorized a $200 share repurchase program effective in 2018 which expires at the end of 2019. Through the third quarter of 2019, we have used cash of $50 to repurchase common shares under the current program. We declared and paid quarterly common stock dividends in each of the past thirty-one quarters.

Financing actions — We have taken advantage of the lower interest rate environment to complete refinancing transactions that resulted in lower effective interest rates while extending maturities. In 2017, we completed a $400 2025 note offering and entered into a $275 floating rate term loan. The proceeds of these issuances were used to repay higher cost international debt and to repay $450 of 2021 notes. During 2019, we expanded our credit and guaranty agreement. We entered into $675 of additional floating rate term loans to fund the ODS acquisition (see Acquisitions section below) and upsized our revolving credit facility to $1,000 and extended its maturity by two years. During 2019, we terminated one of our U.S. defined benefit pension plans, settling approximately $165 of previously unfunded pension obligations and eliminating future funding risk associated with interest rate and other market developments.

Other Initiatives

Aftermarket opportunities — We have a global group dedicated to identifying and developing aftermarket growth opportunities that leverage the capabilities within our existing businesses – targeting increased future aftermarket sales. Powered by recognized brands such as Dana®, Spicer®, Victor Reinz®, Glaser®, GWB®, Thompson®, Tru-Cool®, SVL®, and Transejes™, Dana delivers a broad range of aftermarket solutions – including genuine, all makes, and value lines – servicing passenger, commercial and off-highway vehicles across the globe.

Selective acquisitions — Although transformational opportunities like the GKN plc driveline business transaction that we pursued in 2018 will be considered when strategically and economically attractive, our acquisition focus is principally directed at “bolt-on” or adjacent acquisition opportunities that have a strategic fit with our existing core businesses, particularly opportunities that support our enterprise strategy and enhance the value proposition of our product offerings. Any potential acquisition will be evaluated in the same manner we currently consider customer program opportunities and other uses of capital – with a disciplined financial approach designed to ensure profitable growth and increased shareholder value.

Hydro-Québec Relationship

On June 22, 2018, we acquired a 55% ownership interest in TM4 from Hydro-Québec. On July 29, 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in SME and increasing its existing indirect 22.5% noncontrolling interest in PEPS to 45%. We received $65 at closing, consisting of $53 of cash and a note receivable of $12. The note is payable in five years and bears annual interest of 5%. Dana will continue to consolidate SME and PEPS as the governing documents continue to provide Dana with a controlling financial interest in these subsidiaries. See Acquisitions section below for a discussion of Dana's acquisitions of PEPS, SME and TM4.

Acquisitions

Nordresa — On August 26, 2019, we acquired a 100% ownership interest in Nordresa Motors, Inc. (Nordresa) for consideration of $12, using cash on hand. Nordresa is a prominent integration and application engineering expert for the development and commercialization of electric powertrains for commercial vehicles. The investment further enhances Dana's electrification capabilities by combining its complete portfolio of motors, inverters, chargers, gearboxes, and thermal-management products with Nordresa's proprietary battery-management system, electric powertrain controls and integration expertise to deliver complete electric powertrain systems. The results of operations of Nordresa are reported within our

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Commercial Vehicle operating segment. Nordresa had an insignificant impact on our consolidated results of operations during the third quarter of 2019.

Prestolite E-Propulsion Systems (Beijing) Limited — On June 6, 2019, we acquired Prestolite Electric Beijing Limited's (PEBL) 50% ownership interest in Prestolite E-Propulsion Systems (Beijing) Limited (PEPS). PEPS manufactures and distributes electric mobility solutions, including electric motors, inverters, and generators for commercial vehicles and heavy machinery. PEPS has a state-of-the-art facility in China, enabling us to expand motor and inverter manufacturing capabilities in the world's largest electric-mobility market. The acquisition of PEBL's interest in PEPS, along with our existing ownership interest in PEPS through our TM4 subsidiary, provides us with a controlling financial interest in PEPS. We recognized a $2 gain to other expense, net on the required remeasurement of our previously held equity-method investment in PEPS to fair value. We paid $50 at closing using cash on hand. Reference is made to Note 2 of the consolidated financial statements in Item 1 of Part I for the allocation of purchase consideration to assets acquired and liabilities assumed. The results of operations of PEPS will be reported in our Commercial Vehicle operating segment from the date of acquisition. PEPS had an insignificant impact on our consolidated results of operations during the third quarter and first nine months of 2019. See Hydro-Québec relationship discussion above for details of subsequent changes in our ownership interest in PEPS.

Oerlikon Drive Systems — On February 28, 2019, we acquired the Oerlikon Drive Systems (ODS) segment of the Oerlikon Group. ODS is a global manufacturer of high-precision gears, planetary hub drives for wheeled and tracked vehicles, and products, controls, and software that support vehicle electrification across the mobility industry. The business employs approximately 5,600 people and operates 11 manufacturing and engineering facilities in China, India, Italy, the United Kingdom, and the United States, with one additional facility under construction in China. We paid $626 at closing, which was primarily funded through debt proceeds. Reference is made to Note 2 of the consolidated financial statements in Item 1 of Part I for the allocation of purchase consideration to assets acquired and liabilities assumed. The results of operations of Oerlikon Drive Systems will be reported in our Off-Highway operating segment from the date of acquisition. The ODS acquisition added $179 of sales and $26 of adjusted EBITDA during the third quarter of 2019 and $465 of sales and $62 of adjusted EBITDA during the first nine months of 2019.

SME — On January 11, 2019, we acquired a 100% ownership interest in the S.M.E. S.p.A. (SME). SME designs, engineers, and manufactures low-voltage AC induction and synchronous reluctance motors, inverters, and controls for a wide range of off-highway electric vehicle applications, including material handling, agriculture, construction, and automated-guided vehicles. The addition of SME's low-voltage motors and inverters, which are primarily designed to meet the evolution of electrification in off-highway equipment, significantly expands Dana's electrified product portfolio. We paid $88 at closing, consisting of $62 in cash on hand and a note payable of $26 which allows for net settlement of potential contingencies as defined in the purchase agreement. The note is payable in five years and bears annual interest of 5%. Reference is made to Note 2 of the consolidated financial statements in Item 1 of Part I for the allocation of purchase consideration to assets acquired and liabilities assumed.

The SME acquisition added $4 of sales and de minimis adjusted EBITDA during the third quarter of 2019 and $16 of sales and de minimis adjusted EBITDA during the first nine months of 2019. See Hydro-Québec relationship discussion above for details of subsequent changes in our ownership interest in SME.

TM4 — On June 22, 2018, we acquired a 55% ownership interest in TM4 Inc. (TM4) from Hydro-Québec. TM4 designs and manufactures motors, power inverters and control systems for electric vehicles, offering a complementary portfolio to Dana's electric gearboxes and thermal-management technologies for batteries, motors and inverters. The transaction establishes Dana as the only supplier with full e-Drive design, engineering and manufacturing capabilities – offering electro mechanical propulsion solutions to each of our end markets. TM4's technology and advanced manufacturing facility in Boucherville, Quebec will add to our global technical centers, and their 50% interest in PEPS provides an opportunity to enhance our position in the fastest growing market for electric vehicles. Dana is consolidating TM4 as the governing documents provide Dana with a controlling financial interest. Cash on hand of $125 was used to acquire the interest in TM4. Reference is made to Note 2 of the consolidated financial statements in Item 1 of Part I for the allocation of purchase consideration to assets acquired and liabilities assumed. The results of operations of the TM4 business are reported in our Commercial Vehicle operating segment from the date of acquisition. The TM4 acquisition contributed $11 of sales and de minimis adjusted EBITDA in 2018.

Divestitures

Brazil Suspension Components Operations — In December 2017, we entered into an agreement to divest our Brazil suspension components business (the disposal group). This business was non-core to our enterprise strategy and under-performing financially. As such, we agreed to divest the business for no consideration and contribute $10 of additional cash to the business prior to closing. We classified the disposal group as held for sale at December 31, 2017, recognizing a $27 loss to adjust the carrying value of the net assets to fair value and to recognize the liability for the additional cash required to be contributed to the business prior to closing. During the first quarter of 2018, we made the required cash contribution to the disposal group.

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After being unable to complete the transaction with the counterparty to the December 2017 agreement, we entered into an agreement with another third party in June 2018. The transaction with the new counterparty closed in July 2018 and we received cash proceeds of $2. We reversed $3 of the previously recognized $27 pre-tax loss, inclusive of the proceeds received in July 2018, during the second quarter of 2018. Reference is made to Note 3 of our consolidated financial statements in Item 1 of Part I for additional information. Sales of the divested business approximated $23 in 2017 and $12 in 2018 through the date of sale.

Trends in Our Markets

Global Vehicle Production (Full Year) 

				Actual
(Units in thousands)	Dana 2019 Outlook			2018	2017
North America
Light Truck (Full Frame)	4,360	to	4,660	4,476	4,331
Light Vehicle Engines	14,600	to	14,900	15,332	14,828
Medium Truck (Classes 5-7)	280	to	290	270	246
Heavy Truck (Class 8)	325	to	345	320	255
Agricultural Equipment	50	to	60	56	54
Construction/Mining Equipment	160	to	170	176	157
Europe (including Eastern Europe)
Light Truck	10,500	to	11,500	10,721	10,276
Light Vehicle Engines	22,250	to	22,750	23,098	24,096
Medium/Heavy Truck	505	to	520	506	486
Agricultural Equipment	195	to	210	204	202
Construction/Mining Equipment	330	to	350	351	309
South America
Light Truck	1,300	to	1,500	1,313	1,235
Light Vehicle Engines	2,750	to	2,850	2,797	2,412
Medium/Heavy Truck	115	to	125	113	89
Agricultural Equipment	30	to	35	34	33
Construction/Mining Equipment	8	to	12	9	9
Asia-Pacific
Light Truck	27,800	to	29,000	29,369	29,495
Light Vehicle Engines	48,000	to	49,000	52,293	52,543
Medium/Heavy Truck	1,800	to	2,000	2,004	2,039
Agricultural Equipment	620	to	660	653	653
Construction/Mining Equipment	470	to	490	495	441

North America

Light vehicle markets — Improving economic conditions during the past few years have contributed to strong light vehicle sales and production levels in North America. Overall economic conditions in North America have been relatively favorable with improving employment levels, strong consumer confidence levels and comparatively low/stable fuel prices. Strong sales levels the past few years have significantly reduced the built-up demand to replace older vehicles. As such, the overall North America light vehicle market began to show signs of weakening demand levels in 2017. To date, these effects have been most notable in passenger car sales which declined about 9% in 2017 and another 11% in 2018. Light vehicle sales for the first nine months of 2019 declined 2% compared to the first nine months of 2018, with passenger car sales down 9% and light truck sales up 2%. In the full frame light truck segment where many of our programs are focused, sales increased 3% in 2017 and another 3% in 2018. Full frame truck sales for the first nine months of 2019 were up 3% compared to the first nine months of 2018. Production levels have generally been reflective of light vehicle sales. Light vehicle production of 17.1 million units in 2017 was down 4% from 2016. Light vehicle production of 17.0 million units in 2018 was comparable to 2017. After being down 7% in 2017, light vehicle engine production increased 3% in 2018. Light vehicle engine production in this year's first nine months was down 3% compared with the first nine months of 2018. In the key full frame light truck segment, production levels in 2018 increased about 3% compared to 2017 following an increase of 3% in 2017 from the preceding year. Full frame light truck production in this year's first nine months was up 5% from the same period of 2018. Days' supply of total light vehicles in

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the U.S. at the end of September 2019 was around 66 days, up from 61 days at the end of December 2018 and comparable with the end of September 2018. In the full frame light truck segment, inventory levels were 81 days at the end of September 2019, up from 72 days at the end of December 2018 and 79 days at the end of September 2018.

The North America light truck markets are expected to be relatively flat in 2019, with the effect of stable manufacturing and construction environments being offset by the impact of less pent-up demand, increasing demand for used vehicles and higher levels of consumer debt. We expect Dana sales to continue to benefit from our net new business backlog as additional key customer programs commence production in 2019, offsetting flat light truck demand. Our full year outlook for full frame light truck production is up slightly from July 2019. Our outlook for 2019 has full frame light truck production at 4.4 to 4.7 million vehicles, up 4% to down 3% compared to 2018. Our full year outlook for light vehicle engine is up slightly from our July 2019 outlook. Our outlook for 2019 has light vehicle engine production at 14.6 to 14.9 million units, down 3 to 5% compared to 2018, driven primarily by continued softness in the passenger car market.

Medium/heavy vehicle markets — The commercial vehicle market is similarly impacted by many of the same macroeconomic developments impacting the light vehicle market. Production levels in the heavy truck segment were scaled back in 2016 in response to there being more trucks in service than required for freight demand. Class 8 production in 2016 declined 29% from 2015 while medium duty Classes 5-7 production was relatively stable. With the improving economic conditions in 2017 and scaled down build in 2016, there was increased freight-hauling demand and a strengthening order book for new trucks. Class 8 unit production was up about 12% from 2016 while medium-duty production was about 6% higher. Strong demand continued into 2018, with Class 8 production up 25% and medium-duty truck production being up 10% compared to 2017. As expected, strong demand has continued into 2019, with nine-month 2019 Class 8 production being up 11% and medium-duty truck production remaining stable compared to the same period of 2018.

Our full year 2019 production outlook for Class 8 trucks is unchanged at 325,000 to 345,000 vehicles, up 2 to 8% from 2018. In the medium duty segment, our outlook of 280,000 to 290,000 units is up slightly from our February 2019 outlook, up 4 to 7% compared to 2018.

Markets Outside of North America

Light vehicle markets — Signs of an improved overall European economy have been evident, albeit mixed at times, during the past few years. Reflective of a modestly improved economy, light vehicle production levels have increased with light vehicle engine production being up about 3% in both 2016 and 2017, and light truck production being higher by 9 to 10% in 2016 and 2017. Overall market stability continued in 2018 as light vehicle engine production was down 4% and light truck production was up 4%. The United Kingdom's decision to withdraw from the European Union, along with political developments in other European countries, continues to cast an element of uncertainty around continued economic improvement in the region. Light vehicle engine production was down 2% and light truck production was flat compared to last year's first nine months. At present, while we continue to expect overall stable to improving economic conditions across the entire region in 2019, we have lowered our 2019 outlook for light vehicle engine production. Our current full year 2019 outlook reflects light vehicle engine production being down 2 to 4%. Our full year 2019 production outlook for light truck is unchanged, with production up 7% to down 2%. The economic climate in many South American markets the past few years has been weak, volatile and challenging. After significant production declines in 2014 and 2015, there were signs that demand levels had bottomed out in 2016. Production levels in 2017 and 2018 were reflective of an improving market, with light vehicle engine production up 14% and 16% and light truck production up 26% and 6%, respectively. Light vehicle engine and light truck production in this year's first nine months were flat compared with last year. Our light truck production outlook is unchanged from April 2019, flat to up 14% compared to last year. We have lowered our April 2019 light vehicle engine production outlook, now expecting production to be up 2% to down 2% compared to 2018. The Asia Pacific markets have been relatively strong the past few years. Light truck production increased 14% in 2016 and was up another 7% in 2017, while light vehicle engine production increased 7% in 2016 and another 4% in 2017. Production leveled off in 2018, with both light truck and light vehicle engine production being flat compared to 2017 levels. Light vehicle engine and light truck production for the first nine months of 2019 were down 7% and 5%, respectively, reflecting a potential weakening of China's economy. We have reduced our full year 2019 outlook for the Asia Pacific light vehicle markets, with light truck production now being down 1 to 5% and light engine production being down 6 to 8% from 2018.

Medium/heavy vehicle markets — Some of the same factors referenced above that affected light vehicle markets outside of North America similarly affected the medium/heavy markets. A strengthening European market the past three years contributed to medium/heavy truck production increasing 7% in 2016, 5% in 2017 and another 4% in 2018. Production during the first nine months of 2019 increased 4% over the same period of 2018. Our 2019 full year outlook anticipates continued strong production at levels relatively comparable with 2018 and is unchanged from February 2019. A weakening South America economic climate beginning in 2014 led to a significant decline in medium/heavy truck production in 2015 and 2016. As with the light

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vehicle markets, improving economic conditions in the region led to medium/heavy truck production increasing 27% in 2017 and an additional 27% in 2018. Production during the first nine months of 2019 was up 12% from 2018. We continue to expect economic conditions to be relatively stable to modestly improved in 2019. Our full year 2019 outlook is unchanged with medium/heavy truck production being up 2 to 11% compared to 2018. A stronger than expected China market and an improving India market contributed to increases in medium/heavy truck production in the Asia Pacific region of about 20% in 2016 and another 23% in 2017. Production levels in 2017 were driven partly by regulatory changes in China limiting axle load and weight. With some pre-buy having occurred during the second half of 2017 as a result of the China regulatory actions, 2018 medium/heavy truck production was down 2% from 2017. Production in the first nine months of this year were down 8% from the first nine months of 2018, reflecting anticipated production declines resulting from modal transportation shifts and technology advances putting downward pressure on medium/heavy truck demand in 2019. We have reduced our full year 2019 outlook for the Asia Pacific commercial vehicle market, with medium/heavy truck production being flat to down 10% from 2018.

Off-Highway Markets — Our off-highway business has a large presence outside of North America, with 69% of its nine-month 2019 sales coming from Europe and 18% from South America and Asia Pacific combined. We serve several segments of the diverse off-highway market, including construction, agriculture, mining and material handling. Our largest markets are the

construction/mining and agricultural equipment segments which had been relatively weak for several years until beginning to rebound in 2017. Global demand in the agriculture market was down about 11% in 2014, 7% in 2015 and 5% in 2016. The construction/mining segment weakened about 4% in 2014, 11% in 2015 and 3% in 2016. These markets began to rebound in 2017 along with general economic recovery in several global markets, and in particular the European markets where this segment has a significant presence. During 2017, global production levels in the construction/mining and agriculture segments increased by about 8% and 2%, respectively. The uplift in market demand continued in 2018 with global production levels in the construction/mining and agriculture segments increasing an additional 13% and 1%, respectively. While we experienced generally steady economic conditions during the first half of 2019, the global construction/mining and agricultural equipment markets have begun to pull back during the third quarter of 2019. Our current 2019 outlook reflects production in the construction/mining segment being down 1 to 6% and the agriculture segment being down 5% to up 2% from 2018.

Foreign Currency

With 53% of our year-to-date 2019 sales coming from outside the U.S., international currency movements can have a significant effect on our sales and results of operations. The euro zone countries and Brazil accounted for 48% and 9% of our year-to-date 2019 non-U.S. sales, respectively, while Thailand, India and China each accounted for approximately 7%. Although sales in Argentina and South Africa are each less than 5% of our non-U.S. sales, exchange rate movements of those countries have been volatile and significantly impacted sales from time to time. International currencies strengthened against the U.S. dollar in 2017, increasing 2017 sales by $54. A stronger euro, Brazilian real, Thai baht and South African rand more than offset a weaker Argentine peso. Overall international currencies continued to strengthen against the U.S. dollar in 2018, with sales increasing by $16 principally due to a stronger euro, Thai baht and Chinese renminbi, partially offset by a weaker Brazilian real, Argentine peso and Indian rupee. Weaker international currencies for this year's first nine months as compared to exchange rates in the first nine months of 2018 decreased sales by $159, with the euro and Brazilian real accounting for $92 and $24 of the decrease, respectively. Based on our current sales and exchange rate outlook for 2019, we expect overall stability in international currencies with a modest reduction to sales. At sales levels in our current outlook for 2019, a 5% movement on the euro would impact our annual sales by approximately $112. A 5% change on the Brazilian real, Thai baht, Mexican peso, Chinese renminbi, British pound and Indian rupee rates would impact our annual sales in each of those countries by approximately $10 to $20.

During the second quarter of 2018, we determined that Argentina's economy met the GAAP definition of a highly inflationary economy. In assessing Argentina's economy as highly inflationary we considered its three-year cumulative inflation rate along with other factors. As a result, effective July 1, 2018, the U.S. dollar is the functional currency for our Argentine operations, rather than the Argentine peso. Beginning July 1, 2018, peso-denominated monetary assets and liabilities are remeasured into U.S. dollars using current Argentine peso exchange rates with resulting translation gains or losses included in results of operations. Nonmonetary assets and liabilities are remeasured into U.S. dollar using historic Argentine peso exchange rates.

International Markets

Trade actions initiated by the U.S. imposing tariffs on imports have been met with retaliatory tariffs by other countries, adding a level of tension and uncertainty to the global economic environment. In November 2018, the U.S., Mexico and Canada executed the U.S.-Mexico-Canada Agreement (USMCA), the successor agreement to the North American Free Trade Agreement. The draft agreement submitted for ratification includes the imposition of tariffs on vehicles that do not meet

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regional raw material (steel and aluminum), part and labor content requirements. These and other actions are likely to impact trade policies with other countries and the overall global economy. The United Kingdom's decision to exit the European Union ("Brexit") continues to provide some uncertainty and potential volatility around European currencies, along with uncertain effects of future trade and other cross-border activities of the United Kingdom with the European Union and other countries.

The Brazil market is an important market for our Commercial Vehicle segment, representing about 19% of this segment's nine-month 2019 sales. Our medium/heavy truck sales in Brazil account for approximately 80% of our nine-month 2019 sales in the country. Reduced market demand resulting from the weak economic environment in Brazil in 2015 led to production levels in the light vehicle and medium/heavy duty truck markets that were lower by about 22% and 44% from 2014. Continued weakness in 2016 resulted in further reductions in medium/heavy truck production of about 20% and a light vehicle production decline of around 10%. As a consequence, sales by our operations in Brazil for 2016 approximated $200, down from about $500 in 2014. In response to the challenging economic conditions in this country, we implemented restructuring and other cost reduction actions and reduced costs to the extent practicable. The Brazilian economy rebounded in 2017, leading to increased medium/heavy truck and light truck production of more than 25% from 2016 in each of those segments. Economic improvement and increased production continued in 2018. Sales in 2018 were up 15% from 2017 as medium/heavy truck production was 27% higher than 2017 and light truck production was up about 7%. Further economic improvement and increased production is expected in 2019. In this year's first nine months, medium/heavy truck production was 13% higher and light truck production was 7% higher than the same period of 2018.

As indicated above, Argentina has experienced significant inflationary pressures the past few years, contributing to significant devaluation of its currency among other economic challenges. Our Argentine operation supports our Light Vehicle operating segment. Our sales in Argentina for the first nine months of 2019 of approximately $67 are approximately 1% of our consolidated sales and our net asset exposure related to Argentina was approximately $26, including $6 of net fixed assets, at September 30, 2019.

Commodity Costs

The cost of our products may be significantly impacted by changes in raw material commodity prices, the most important to us being those of various grades of steel, aluminum, copper and brass. The effects of changes in commodity prices are reflected directly in our purchases of commodities and indirectly through our purchases of products such as castings, forgings, bearings and component parts that include commodities. During 2018 and the first nine months of 2019, commodity prices have been impacted by recently imposed tariffs. As suppliers paying the tariffs attempt to pass through the cost of the tariffs, we are likewise in discussions with our customers to absorb that cost. As suppliers not subject to the tariffs advantage themselves by raising prices, these price increases are generally reflected in the published commodity indexes. Most of our major customer agreements provide for the sharing of significant commodity price changes with those customers based on the movement in various published commodity indexes. Where such formal agreements are not present, we have historically been successful implementing price adjustments that largely compensate for the inflationary impact of material costs. Material cost changes will customarily have some impact on our financial results as customer pricing adjustments typically lag commodity price changes.

Prices for commodities such as steel and aluminum have risen over the past year, in part due to strong global demand and more recently due to imposition of tariffs on these products. Higher commodity prices reduced year-over-year third-quarter and nine-months earnings in 2019 by approximately $2 and $46, as compared to year-over-year earnings reductions of $37 and $79 from higher commodity prices in the same periods last year. Material cost recovery and other pricing actions decreased year-over-year third quarter earnings in 2019 by $14 while they increased year-over-year nine-months earnings in 2019 by $8, whereas pricing and recovery actions increased year-over-year third-quarter and nine-months earnings in 2018 by $22 and $44.

Sales, Earnings and Cash Flow Outlook

	2019 Outlook	2018		2017
Sales	$8,550 - $8,850	$	8,143	$	7,209
Adjusted EBITDA	$1,000 - $1,070	$	957	$	835
Net cash provided by operating activities	~7.2% of Sales	$	568	$	554
Discretionary pension contribution	~0.7% of Sales	$	—	$	—
Purchases of property, plant and equipment	~4.9% of Sales	$	325	$	393
Adjusted Free Cash Flow	~3.0% of Sales	$	243	$	161

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Adjusted EBITDA and adjusted free cash flow are non-GAAP financial measures. See the Non-GAAP Financial Measures discussion below for definitions of our non-GAAP financial measures and reconciliations to the most directly comparable U.S. generally accepted accounting principles (GAAP) measures. We have not provided a reconciliation of our adjusted EBITDA outlook to the most comparable GAAP measure of net income. Providing net income guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.

We experienced declines in total sales in 2016 due to weaker international currencies relative to the U.S. dollar. Adjusted for currency, sales in 2016 were relatively comparable to the prior year, with new customer programs largely offsetting the impacts of overall weaker end user demand across our global businesses. We experienced uneven end user markets, with some being relatively strong and others somewhat weak, and the conditions across the regions of the world differing quite dramatically. The 24% increase in sales during 2017 was driven primarily by acquisitions and stronger market demand. Acquisitions, net of divestitures, added $500 of sales, while stronger market demand and contributions from new customer programs increased sales by $829 – an organic increase of 14%. In 2017, international currencies were relatively stable, providing a $54 benefit to sales. Sales increased an additional $934, or 13%, in 2018, reflecting continued strong market demand and the contribution of net new business backlog. Strong off-highway, commercial vehicle and light truck demand combined with net new business of about $300, drove 2018 organic growth of $861, or 12%. International currencies and acquisition and divestiture activities had a negligible impact on 2018 sales. We have lowered our sales outlook to $8,550 to $8,850, approximately $275 lower than our July 2019 outlook. We are expecting sales from our Off-Highway operating segment, inclusive of sales from the Oerlikon Drive Systems acquisition, to be lower than originally anticipated as global construction/mining and agricultural markets have softened in the back half of 2019. We also expect weaker international currencies (euro, Brazilian real, South African rand, Chinese renminbi and India rupee) to have a greater impact on our 2019 sales than originally anticipated.

Adjusted EBITDA margin as a percent of sales remained relatively constant at around 11% in 2016 despite certain markets being weak and volatile. We continue to focus on margin improvement through right sizing and rationalizing our manufacturing operations, leveraging resources across the global organization, implementing other cost reduction initiatives and ensuring that customer programs are competitively priced. We achieved adjusted EBITDA margin growth in 2017 as we benefited from the operating leverage attributable to increased sales volumes, while at the same time integrating several acquisitions. Increased commodity prices adversely impacted 2018 earnings and adjusted EBITDA margin. Although we recovered a substantial share of the increased cost, with the customary lag from incurrence of the higher cost to recovery, approximately $35 was not recovered by the end of 2018. Much of the adverse earnings impact of higher commodity costs and supply chain pressures of operating at strong levels of market demand were offset with material cost savings, acquisition synergies and other cost reductions. As such, our adjusted EBITDA margin for 2018 was 11.8%, a 20 basis point improvement over 2017. At our current sales outlook for 2019, we now anticipate full year 2019 adjusted EBITDA to approximate $1,000 to $1,070. Adjusted EBITDA margin is expected to approximate 11.9%, as the benefit from higher margin net new business and synergies related to our acquisition of Oerlikon Drive Systems will be largely offset by higher commodity and other costs and increased investment to support our electrification strategy.

We have generated positive adjusted free cash flow in recent years while increasing capital spending to support organic business growth through launching new business with customers. Reduced adjusted free cash flow in 2016 was primarily attributable to our continued success in being awarded significant new customer programs. Although many of the program wins were not scheduled to begin production until 2018, certain of these programs required capital investment beginning in 2016. As such, cash used for capital investments in 2016 was $62 higher than in 2015. As planned, an elevated level of capital spending at around 5.5% of sales continued into 2017 to support new customer programs. Despite an increase in capital spending of $71 in 2017, free cash increased by $99, primarily from a stronger earnings performance which contributed to increased operating cash flows of $170. Adjusted free cash flow increased $82 in 2018, with benefits from increased operating earnings and lower required capital investment being partially offset by higher working capital requirements associated with increased sales and production levels. We expect to generate adjusted free cash flow of approximately $260, or 3% of sales for 2019. The benefit of continued growth in adjusted EBITDA in 2019 will be partially offset by higher integration costs associated with our acquisition of Oerlikon Drive Systems. We expect capital spending in 2019 to be around 4.9% of sales, slightly higher than 2018. While required capital spending to support new customer programs has begun to dissipate, we are making additional capital investment associated with the Oerlikon Drive Systems acquisition.

Among our operational and strategic initiatives are increased focus on and investment in product technology – delivering products and technology that are key to bringing solutions to issues of paramount importance to our customers. Our success on this front is measured, in part, by our sales backlog – net new business received that will be launching in the future and adding

44

to our base annual sales. This backlog excludes replacement business and represents incremental sales associated with new programs for which we have received formal customer awards. At December 31, 2018, our sales backlog of net new business for the 2019 through 2021 period was $700. We expect to realize $350 of our sales backlog in 2019, with incremental sales backlog of $200 and $150 being realized in 2020 and 2021, respectively. Our three-year sales backlog at December 31, 2018 reflects continued new business wins, as the expected impact of revised market volumes and currency effects were minimal.

Summary Consolidated Results of Operations (Third Quarter, 2019 versus 2018)

	Three Months Ended September 30,
	2019					2018
	Dollars			% of Net Sales		Dollars			% of Net Sales		Increase/ (Decrease)
Net sales	$	2,164				$	1,978				$	186
Cost of sales	1,882			87.0	%	1,692			85.5	%	190
Gross margin	282			13.0	%	286			14.5	%	(4		)
Selling, general and administrative expenses	128			5.9	%	119			6.0	%	9
Amortization of intangibles	2					2					—
Restructuring charges, net	5					9					(4		)
Pension settlement charge	(2		)								(2		)
Other expense, net	(8		)			(9		)			1
Earnings before interest and income taxes	137					147					(10		)
Interest income	3					3					—
Interest expense	31					24					7
Earnings before income taxes	109					126					(17		)
Income tax expense	5					31					(26		)
Equity in earnings of affiliates	8					1					7
Net income	112					96					16
Less: Noncontrolling interests net income	3					1					2
Less: Redeemable noncontrolling interests net loss	(2		)								(2		)
Net income attributable to the parent company	$	111				$	95				$	16

Sales — The following table shows changes in our sales by geographic region.

	Three Months Ended September 30,							Amount of Change Due To
	2019		2018		Increase/ (Decrease)			Currency Effects			Acquisitions (Divestitures)			Organic Change
North America	$	1,158	$	1,013	$	145		$	—		$	58		$	87
Europe	614		572		42			(27		)	90			(21		)
South America	134		140		(6		)				(1		)	(5		)
Asia Pacific	258		253		5			2			42			(39		)
Total	$	2,164	$	1,978	$	186		$	(25	)	$	189		$	22

Sales in 2019 were $186 higher than in 2018. Weaker international currencies decreased sales by $25, principally due to a weaker euro. The acquisitions of ODS and SME in this year's first quarter, PEPS in this year's second quarter, Nordresa in this year's third quarter and TM4 in last year's second quarter, net of the divestiture of the Brazil suspension components business in last year's third quarter, generated a year-over-year increase in sales of $189. The organic sales increase of $22, or 1%, resulted from increased full frame truck production in North America and the conversion of sales backlog, which was largely offset by lower global passenger car volumes and weaker global medium/heavy truck, construction/mining and agriculture markets. Pricing actions, including material commodity price and inflationary cost recovery, reduced sales by $14.

The North America organic sales increase of 9% was driven principally by stronger light truck production volumes and the conversion of sales backlog, partially offset by lower medium/heavy truck production volumes. Third-quarter 2019 full frame light truck production was up 10% while production of Class 8 and Classes 5-7 trucks were down 3% and 8%, respectively.

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A weaker euro was the primary driver of the decreased sales in Europe due to currency effects. Excluding currency and acquisition effects, sales in Europe were down 4% compared with 2018. With our significant Off-Highway presence in the region, softening construction/mining and agricultural markets were a major factor. Organic sales in this operating segment were down 3% compared with the third quarter of 2018.

Excluding divestiture effects, third quarter sales in South America decreased 4% compared to 2018. The region overall experienced improving markets, with medium/heavy truck production up about 16% and light truck production up about 1%. Lower Light Vehicle segment sales, primarily in Argentina, were partially offset by higher Commercial Vehicle segment sales, primarily in Brazil.

A stronger Thai baht partially offset by a weaker Chinese renminbi was the primary driver of the increased sales in Asia Pacific due to currency effects. Excluding currency and acquisition effects, sales decreased about 15% as China's economy showed signs of weakening. Light truck, light vehicle engine and medium/heavy truck production were down 1%, 5% and 10%, respectively from the third quarter of 2018.

Cost of sales and gross margin — Cost of sales for the third quarter of 2019 increased $190, or 11% when compared to 2018. Similar to the factors affecting sales, the increase was primarily due to the inclusion of acquired businesses. Cost of sales as a percent of sales in 2019 was 150 basis points higher than in the previous year. Cost of sales attributed to net acquisitions, which included $3 of incremental cost assigned to inventory as part of business combination accounting, was approximately $182. Excluding the effects of acquisitions and divestitures, cost of sales as a percent of sales was 86.1%, 60 basis points higher than in the previous year. The increased cost of sales as a percent of sales was largely attributable to higher commodity prices which increased material costs by about $2, higher depreciation expense of $4 and operational inefficiencies and other cost increases. Partially offsetting these higher costs were continued material cost savings of approximately $23.

Gross margin of $282 for 2019 decreased $4 from 2018. Gross margin as a percent of sales was 13.0% in 2019, 150 basis points lower than in 2018. The decline in margin as a percent of sales was driven principally by the cost of sales factors referenced above.

Selling, general and administrative expenses (SG&A) — SG&A expenses in 2019 were $128 (5.9% of sales) as compared to $119 (6.0% of sales) in 2018. SG&A attributed to net acquisitions was $17. Excluding the increase associated with net acquisitions, SG&A expenses were 40 basis points lower than the same period of 2018. The year-over-year decrease of $8 exclusive of net acquisitions was primarily due to lower salaries and benefits expenses resulting from the voluntary retirement program and other headcount reduction actions taken in the fourth quarter of 2018 and lower year-over-year incentive compensation.

Amortization of intangibles — Amortization expense was $2 in both 2019 and 2018. The increase in amortization expense in 2019 attributable to intangible assets obtained through the TM4, ODS and SME acquisitions, was offset by certain intangible assets becoming fully amortized in 2019. See Note 2 for additional information on recent acquisitions.

Restructuring charges — Restructuring charges of $5 in 2019 were comprised of severance and benefit costs primarily related to integration of recent acquisitions, and headcount reductions across our operations and costs related to previously announced actions. Restructuring charges of $9 in 2018 included special charges related to an early retirement offer action and continuing exit costs associated with previously announced actions.

Pension settlement charge — We recorded a $2 settlement charge during 2019 related to the termination of one of our Canadian defined benefit pension plans.

Other expense, net — The following table shows the major components of other expense, net.

	Three Months Ended September 30,
	2019			2018
Non-service cost components of pension and OPEB costs	$	(4	)	$	(3	)
Government grants and incentives	3			3
Foreign exchange loss	(1		)	(3		)
Strategic transaction expenses	(8		)	(6		)
Other, net	2
Other expense, net	$	(8	)	$	(9	)

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Strategic transaction expenses in 2019 were primarily attributable to the acquisition of ODS. Strategic transaction expenses in 2018 relate primarily to the TM4 acquisition. See Note 2 of the consolidated financial statements in Item 1 of Part I for additional information.

Interest income and interest expense — Interest income was $3 in both 2019 and 2018. Interest expense increased from $24 in 2018 to $31 in 2019, primarily due to an increase in borrowings to finance the ODS acquisition in the first quarter of 2019. Average effective interest rates, inclusive of amortization of debt issuance costs, approximated 5.0% in 2019 and 5.3% in 2018.

Income tax expense — Income tax expense for the third quarter was $5 in 2019 and $31 in 2018. During the third quarter of 2019, we recognized a benefit of $22 for the release of a valuation allowance in a subsidiary in Brazil based on recent history of profitability and increased income projections. Excluding this item, the effective tax rate would be 25% for the 2019 three-month period. Our effective income tax rates vary from the U.S. federal statutory rate of 21% due to establishment, release and adjustment of valuation allowances in several countries, nondeductible expenses and deemed income, local tax incentives in several countries outside the U.S., different statutory tax rates outside the U.S. and withholding taxes related to repatriations of international earnings. The effective income tax rate may vary significantly due to fluctuations in the amounts and sources, both foreign and domestic, of pretax income and changes in the amounts of non-deductible expenses.

In countries where our history of operating losses does not allow us to satisfy the “more likely than not” criterion for recognition of deferred tax assets, we have generally recognized no income tax on the pre-tax income or losses as valuation allowance adjustments offset the associated tax effects. Consequently, there is no income tax expense or benefit recognized on the pre-tax income or losses in these jurisdictions as valuation allowances are adjusted to offset the associated tax expense or benefit.

Equity in earnings of affiliates — Net earnings from equity investments was $8 in 2019 and $1 in 2018. Equity in earnings from DDAC was $4 in 2019 and de minimis in 2018. Equity in earnings from BSFB was $4 in 2019 and $2 in 2018.

Summary Consolidated Results of Operations (Year-to-Date, 2019 versus 2018)

	Nine Months Ended September 30,
	2019					2018
	Dollars			% of Net Sales		Dollars			% of Net Sales		Increase/ (Decrease)
Net sales	$	6,633				$	6,170				$	463
Cost of sales	5,725			86.3	%	5,269			85.4	%	456
Gross margin	908			13.7	%	901			14.6	%	7
Selling, general and administrative expenses	404			6.1	%	383			6.2	%	21
Amortization of intangibles	8					6					2
Restructuring charges, net	23					17					6
Impairment of indefinite-lived intangible asset						(20		)			20
Adjustment in fair value of disposal group held for sale						3					(3		)
Pension settlement charge	(260		)								(260		)
Other expense, net	(31		)			(19		)			(12		)
Earnings before interest and income taxes	182					459					(277		)
Interest income	8					8					—
Interest expense	92					71					21
Earnings before income taxes	98					396					(298		)
Income tax expense (benefit)	(27		)			75					(102		)
Equity in earnings of affiliates	22					13					9
Net income	147					334					(187		)
Less: Noncontrolling interests net income	9					6					3
Less: Redeemable noncontrolling interests net income (loss)	(3		)			1					(4		)
Net income attributable to the parent company	$	141				$	327				$	(186	)

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Sales — The following table shows changes in our sales by geographic region.

	Nine Months Ended September 30,							Amount of Change Due To
	2019		2018		Increase/ (Decrease)			Currency Effects			Acquisitions (Divestitures)			Organic Change
North America	$	3,444	$	3,097	$	347		$	(3	)	$	154		$	196
Europe	2,005		1,890		115			(115		)	228			2
South America	396		418		(22		)	(24		)	(13		)	15
Asia Pacific	788		765		23			(17		)	115			(75		)
Total	$	6,633	$	6,170	$	463		$	(159	)	$	484		$	138

Sales in 2019 were $463 higher than in 2018. Weaker international currencies decreased sales by $159, principally due to a weaker euro, Brazilian real, South African rand, Chinese renminbi and Indian rupee. The acquisitions of ODS and SME in this year's first quarter, PEPS in this year's second quarter, Nordresa in this year's third quarter and TM4 in last year's second quarter, net of the divestiture of the Brazil suspension components business in last year's third quarter, generated a year-over-year increase in sales of $484. The organic sales increase of $138, or 2%, resulted from stronger global medium/heavy truck markets and increased full frame truck production in North America. Pricing actions, including material commodity price and inflationary cost recovery, added sales of $8.

The North America organic sales increase of 6% was driven principally by stronger light truck and medium/heavy truck production volumes and the conversion of sales backlog. Full frame light truck production during the first nine months of 2019 was up 5% while production of Class 8 trucks was up 11% and production of Classes 5-7 was flat compared to 2018. In addition, realization of light truck sales backlog help to offset the year-over-year nine months sales volume-related decline attributable to one of our largest light vehicle customer programs for which production continued on the outgoing model, concurrent with production of the new model vehicle, during last year's first quarter.

A weaker euro was the primary driver of the decreased sales in Europe due to currency effects. Excluding currency and acquisition effects, sales in Europe were flat compared to 2018. Increased market demand in the first six months of 2019 in our Off-Highway segment were largely offset by weakening demand in the third quarter of 2019.

A weaker Brazilian real reduced South America sales in this year's first nine months. The region overall experienced stable to improving markets, with medium/heavy truck production up about 12% and light truck production flat relative to the first nine months of 2018.

A weaker Chinese renminbi and Indian rupee were the primary drivers of the decreased sales in Asia Pacific due to currency effects. Excluding currency and acquisition effects, sales decreased about 10% as China's economy showed signs of weakening. Light truck, light vehicle engine and medium/heavy truck production were down 5%, 7% and 8% respectively, from the first nine months of 2018.

Cost of sales and gross margin — Cost of sales for the first nine months of 2019 increased $456, or 9% when compared to 2018. Similar to the factors affecting sales, the increase was primarily due to the inclusion of acquired businesses. Cost of sales as a percent of sales in 2019 was 90 basis points higher than in the previous year. Cost of sales attributed to net acquisitions, which included $12 of incremental cost assigned to inventory as part of business combination accounting, was approximately $439. Excluding the effects of acquisitions and divestitures, cost of sales as a percent of sales was 86.0%, 60 basis points higher than in the previous year. The increased cost of sales as a percent of sales was largely attributable to higher commodity prices which increased material costs by about $46, an increase in engineering and development cost of $9, higher depreciation expense of $16 and operational inefficiencies and other cost increases. Partially offsetting these higher costs were continued material cost savings of approximately $62 and lower start-up and launch costs.

Gross margin of $908 for 2019 increased $7 from 2018. Gross margin as a percent of sales was 13.7% in 2019, 90 basis points lower than in 2018. The decline in margin as a percent of sales was driven principally by the cost of sales factors referenced above.

Selling, general and administrative expenses (SG&A) — SG&A expenses in 2019 were $404 (6.1% of sales) as compared to $383 (6.2% of sales) in 2018. SG&A attributed to net acquisitions was $44. Excluding the increase associated with net acquisitions, SG&A expenses were 30 basis points lower than the same period of 2018. The year-over-year decrease of $23 exclusive of net acquisitions was primarily due to lower salaries and benefits expenses resulting from the voluntary retirement

48

program and other headcount reduction actions taken in the fourth quarter of 2018 and lower year-over-year incentive compensation.

Amortization of intangibles — The increase of $2 in amortization expense in 2019 was attributable to intangible assets obtained through the TM4, ODS and SME acquisitions, partially offset by certain intangible assets becoming fully amortized. See Note 2 for additional information on recent acquisitions.

Restructuring charges — Restructuring charges of $23 in 2019 were comprised of severance and benefit costs primarily related to integration of recent acquisitions, and headcount reductions across our operations and costs related to previously announced actions. Restructuring charges of $17 in 2018, included an early retirement offer action in the third quarter, headcount reductions in our Commercial Vehicle operations and Corporate service functions in Brazil, integration of recent acquisitions and we continued to execute our previously announced actions.

Impairment of indefinite-lived intangible asset — During the second quarter of 2018, we wrote off the in-process research and

development intangible asset recognized as part of a 2012 acquisition. Reference is made to the Management Overview & Initiatives section in Item 2 of Part I and Note 4 of the consolidated financial statements in Item 1 of Part I for additional information.

Adjustment in fair value of disposal group held for sale — See Note 3 of the consolidated financial statements in Item 1 of Part I for a discussion of the divestiture of our Brazil suspension components business.

Pension settlement charge — See Note 12 of the consolidated financial statements in Item 1 of Part I for a discussion of the termination of one of our U.S. defined benefit pension plans.

Other expense, net — The following table shows the major components of other expense, net.

	Nine Months Ended September 30,
	2019			2018
Non-service cost components of pension and OPEB costs	$	(19	)	$	(10	)
Government grants and incentives	11			8
Foreign exchange loss	(11		)	(7		)
Strategic transaction expenses, net of transaction breakup fee income	(32		)	(13		)
Non-income tax legal judgment	6
Other, net	14			3
Other expense, net	$	(31	)	$	(19	)

Foreign exchange loss in 2019 included a loss on the undesignated Swiss franc notional deal contingent forward related to the ODS acquisition. See Note 15 of the consolidated financial statements in Item 1 of Part I for additional information. Strategic transaction expenses in 2019 were primarily attributable to the acquisition of ODS. Strategic transaction expenses in 2018 were partially offset by a $40 transaction breakup fee associated with the GKN plc. transaction. See Note 2 of the consolidated financial statements in Item 1 of Part I for additional information. During the first quarter of 2019, we won a legal judgment regarding the methodology used to calculate PIS/COFINS tax in Brazil.

Interest income and interest expense — Interest income was $8 in both 2019 and 2018. Interest expense increased from $71 in 2018 to $92 in 2019, primarily due to an increase in borrowings to finance the ODS acquisition in the first quarter of 2019. Average effective interest rates, inclusive of amortization of debt issuance costs, approximated 5.1% in 2019 and 5.2% in 2018.

Income tax expense — Income tax for the first nine months was $27 of benefit in 2019 and $75 of expense in 2018. During the third quarter of 2019, we recognized a benefit of $22 for the release of a valuation allowance in a subsidiary in Brazil based on recent history of profitability and increased income projections. During the second quarter of 2019, a pre-tax pension settlement charge of $258 with an associated income tax benefit of $9 was recorded. We also recorded tax benefits of $48 related to tax actions that adjusted federal tax credits and $30 related to the development of a tax planning strategy which reduced valuation allowances on existing federal tax credits in the second quarter. During the first quarter of 2019, we recognized a benefit of $22 related to the reduction of valuation allowances in the U.S. based on increased income projections. Partially offsetting this benefit in the first quarter of 2019 was $6 of expense related to a U.S. state law change. Excluding these items, the effective tax rate would be 28% for the 2019 nine-month period. Our effective income tax rates vary from the U.S. federal statutory rate of 21% due to establishment, release and adjustment of valuation allowances in several countries, nondeductible expenses and

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deemed income, local tax incentives in several countries outside the U.S., different statutory tax rates outside the U.S. and withholding taxes related to repatriations of international earnings. The effective income tax rate may vary significantly due to fluctuations in the amounts and sources, both foreign and domestic, of pretax income and changes in the amounts of non-deductible expenses.

In countries where our history of operating losses does not allow us to satisfy the “more likely than not” criterion for recognition of deferred tax assets, we have generally recognized no income tax on the pre-tax income or losses as valuation allowance adjustments offset the associated tax effects. Consequently, there is no income tax expense or benefit recognized on the pre-tax income or losses in these jurisdictions as valuation allowances are adjusted to offset the associated tax expense or benefit.

Equity in earnings of affiliates — Net earnings from equity investments was $22 in 2019 and $13 in 2018. Equity in earnings from DDAC was $14 in 2019 and $6 in 2018. Equity in earnings from BSFB was $8 in 2019 and $6 in 2018.

Segment Results of Operations (2019 versus 2018)

Light Vehicle

	Three Months								Nine Months
	Sales			Segment EBITDA			Segment EBITDA Margin		Sales			Segment EBITDA			Segment EBITDA Margin
2018	$	879		$	102		11.6	%	$	2,702		$	297		11.0	%
Volume and mix	57			18					85			21
Acquisition	1			—					1			—
Performance	(7		)	(7		)			(2		)	18
Currency effects	—			—					(23		)	(3		)
2019	$	930		$	113		12.2	%	$	2,763		$	333		12.1	%

Light Vehicle sales in the third quarter and first nine months of 2019, exclusive of acquisition and currency effects, were 6% and 3% higher than the same periods of 2018. Improved North American full frame truck production of 10% in this year's third quarter and 5% in the first nine months more than offset lower full frame truck production in Asia Pacific. In addition, conversion of sales backlog help to offset the year-over-year sales volume-related decline attributable to one of our largest customer programs for which production continued on the outgoing model, concurrent with production of the new model vehicle, during last year's first quarter. Net customer pricing and cost recovery actions resulted in a year-over-year decrease of $11 in the third quarter and $5 in the first nine months.

Light Vehicle segment EBITDA in this year's third quarter increased by $11 when compared to the same period of 2018, with segment EBITDA for the first nine months higher by $36. Higher sales volumes provide a year-over-year third-quarter benefit of $18 and nine-month benefit of $21. The year-over-year performance-related earnings decrease in the third quarter was driven by lower net pricing and material cost recovery of $11 and operational inefficiencies and other cost increases of $14. Material cost savings of $9, commodity cost decreases of $4, lower warranty expense of $3, lower engineering spending of $1 and lower new program start-up and launch-related costs of $1 provided a partial offset. The nine-month performance-related earnings improvement was driven by material cost savings of $26, lower new program start-up and launch-related costs of $10 and operational efficiencies and other cost decreases of $5. Commodity cost increases of $12, increased engineering spend of $6 and lower net pricing and material cost recovery of $5 reduced performance in the first nine months of 2019.

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Commercial Vehicle

	Three Months								Nine Months
	Sales			Segment EBITDA			Segment EBITDA Margin		Sales			Segment EBITDA			Segment EBITDA Margin
2018	$	406		$	39		9.6	%	$	1,217		$	114		9.4	%
Volume and mix	(10		)	—					55			12
Acquisition / Divestiture	4			(1		)			11			(2		)
Performance	2			(4		)			20			(4		)
Currency effects	(4		)	(1		)			(37		)	(5		)
2019	$	398		$	33		8.3	%	$	1,266		$	115		9.1	%

Excluding currency effects and the net impact of acquisitions and divestitures, Commercial Vehicle sales in the third quarter and first nine months of 2019 decreased 2% and increased 6% compared to last year. The volume-related increase in this year's first nine months was primarily attributable to higher production levels in North America during the first half of 2019 where Class 8 production was up 20% and Classes 5-7 production was up 4%. During the third quarter of 2019, North American production volumes have declined, with Class 8 production down 3% and Classes 5-7 down 8%. Similarly the impact of higher 2019 first-half production volumes in Europe and Asia Pacific have been largely offset by declining production volumes in both regions during the third quarter of 2019. With the improving economy in Brazil, our sale volume in 2019 benefited from year-over-year higher production levels in that country of around 16% for the third quarter and 13% for the first nine months. Net customer pricing and cost recovery actions decreased year-over-year third-quarter sales by $1 and increased year-over-year nine-month sales by $8.

Commercial Vehicle segment EBITDA in this year's third quarter was $6 lower than the same period last year, while nine-month earnings increased by $1. Lower sales volumes had a de minimis impact on third-quarter 2019 earnings while higher nine-month sales volumes increased 2019 earnings by $12. The $4 performance-related earnings decrease in this year's third quarter resulted from higher commodity costs of $3, increased engineering spend of $1, operational inefficiencies and other cost increases of $5 and lower net pricing and material cost recovery of $1, were partially offset by material cost savings of $6. Performance for the first nine months of 2019 was down $4 from the prior year. Higher commodity costs of $20, increased engineering spend of $6 and operational inefficiencies and other cost increases of $4, were partially offset by material cost savings of $14, higher net pricing and material cost recovery of $8 and net foreign currency transaction gains of $4.

Off-Highway

	Three Months								Nine Months
	Sales			Segment EBITDA			Segment EBITDA Margin		Sales			Segment EBITDA			Segment EBITDA Margin
2018	$	425		$	69		16.2	%	$	1,402		$	220		15.7	%
Volume and mix	(12		)	(5		)			2			(4		)
Acquisitions	184			26					472			63
Performance	—			(9		)			4			(7		)
Currency effects	(15		)	(2		)			(72		)	(8		)
2019	$	582		$	79		13.6	%	$	1,808		$	264		14.6	%

Excluding currency effects, primarily due to a weaker euro, and the impact of the ODS and SME acquisitions, Off-Highway segment third-quarter 2019 sales decreased 3% while nine-month 2019 sales were flat compared to last year. The construction/mining and agricultural equipment markets were relatively stable during the first half of 2019, but have begun to pull back during the third quarter.

Off-Highway segment EBITDA increased by $10 in this year's third quarter and $44 in this year's first nine months when compared with the same periods of 2018. Marginally higher market demand through the first six months of 2019 was largely offset by lower market demand in the third quarter. The performance-related deterioration in third quarter 2019 earnings was due primarily to higher commodity costs of $2, lower net pricing and material cost recovery of $1 and operational inefficiencies and other cost increases of $12, partially offset by material cost savings of $6. For this year's first nine months, year-over-year segment earnings was impacted by higher commodity costs of $6 and operational inefficiencies and other cost increases of $24, partially offset by material cost savings of $17 and net pricing and material cost recovery of $6.

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Power Technologies

	Three Months								Nine Months
	Sales			Segment EBITDA			Segment EBITDA Margin		Sales			Segment EBITDA			Segment EBITDA Margin
2018	$	268		$	33		12.3	%	$	849		$	117		13.8	%
Volume and mix	(7		)	(2		)			(24		)	(7		)
Performance	(1		)	(2		)			(2		)	(17		)
Currency effects	(6		)	(1		)			(27		)	(3		)
2019	$	254		$	28		11.0	%	$	796		$	90		11.3	%

Power Technologies primarily serves the light vehicle market but also sells product to the medium/heavy truck and off-highway markets. Net of currency effects, sales for the third quarter and first nine months of 2019 were both 3% lower than the same periods of 2018, primarily due to program roll offs and lower market demand. Light vehicle engine production declined in North America, Europe and China compared to last year's third quarter and first nine months.

Power Technologies segment EBITDA in this year's third quarter was lower by $5 when compared to the same period of 2018, while comparative nine-month earnings were lower by $27. The performance deterioration of $2 in the third quarter of 2019 resulted from higher commodity costs of $1 and lower net pricing and material cost recovery of $1. The performance deterioration of $17 in the first nine months of 2019 resulted from higher commodity costs of $8, operational inefficiencies and other cost increases of $8 and lower net pricing and material cost recovery of $1.

Non-GAAP Financial Measures

Adjusted EBITDA

We have defined adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefits (OPEB) costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings before income taxes, net income or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

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The following table provides a reconciliation of net income to adjusted EBITDA.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019			2018
Net income	$	112	$	96	$	147		$	334
Equity in earnings of affiliates	8		1		22			13
Income tax expense (benefit)	5		31		(27		)	75
Earnings before income taxes	109		126		98			396
Depreciation and amortization	86		66		247			195
Restructuring	5		9		23			17
Interest expense, net	28		21		84			63
Pension settlement charge	2				260
Acquisition related inventory adjustments	3				12
Impairment of indefinite-lived intangible asset								20
Other*	17		18		69			43
Adjusted EBITDA	$	250	$	240	$	793		$	734

* Other includes non-service cost components of pension and OPEB costs, stock compensation expense, strategic transaction expenses, net of transaction breakup fees and other items. See Note 21 to our consolidated financial statements in Item 1 of Part I for additional details.

Free Cash Flow and Adjusted Free Cash Flow

We have defined free cash flow as cash provided by (used in) operating activities less purchases of property, plant and equipment. We have defined adjusted free cash flow as cash provided by (used in) operating activities excluding discretionary pension contributions less purchases of property, plant and equipment. We believe these measures are useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Free cash flow and adjusted free cash flow are not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported under GAAP. Free cash flow and adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

The following table reconciles net cash flows provided by (used in) operating activities to adjusted free cash flow.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net cash provided by operating activities	$	231		$	124		$	288		$	237
Purchases of property, plant and equipment	(108		)	(90		)	(298		)	(235		)
Free cash flow	123			34			(10		)	2
Discretionary pension contribution	2			—			64			—
Adjusted free cash flow	$	125		$	34		$	54		$	2

Liquidity

The following table provides a reconciliation of cash and cash equivalents to liquidity, a non-GAAP measure, at September 30, 2019:

Cash and cash equivalents	$	402
Less: Deposits supporting obligations	(5		)
Available cash	397
Additional cash availability from Revolving Facility	879
Marketable securities	20
Total liquidity	$	1,296

Cash deposits are maintained to provide credit enhancement for certain agreements and are reported as part of cash and cash equivalents. For most of these deposits, the cash may be withdrawn if a comparable security is provided in the form of letters of credit. Accordingly, these deposits are not considered to be restricted.

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Marketable securities are included as a component of liquidity as these investments can be readily liquidated at our discretion.

The components of our September 30, 2019 consolidated cash balance were as follows:

	U.S.		Non-U.S.		Total
Cash and cash equivalents	$	69	$	227	$	296
Cash and cash equivalents held as deposits			5		5
Cash and cash equivalents held at less than wholly-owned subsidiaries	2		99		101
Consolidated cash balance	$	71	$	331	$	402

A portion of the non-U.S. cash and cash equivalents is utilized for working capital and other operating purposes. Several countries have local regulatory requirements that restrict the ability of our operations to repatriate this cash. Beyond these restrictions, there are practical limitations on repatriation of cash from certain subsidiaries because of the resulting tax withholdings and subsidiary by-law restrictions which could limit our ability to access cash and other assets.

The principal sources of liquidity available for our future cash requirements are expected to be (i) cash flows from operations, (ii) cash and cash equivalents on hand and (iii) borrowings from our Revolving Facility. We believe that our overall liquidity and operating cash flow will be sufficient to meet our anticipated cash requirements for capital expenditures, working capital, debt obligations, common stock repurchases and other commitments during the next twelve months. While uncertainty surrounding the current economic environment could adversely impact our business, based on our current financial position, we believe it is unlikely that any such effects would preclude us from maintaining sufficient liquidity.

On February 28, 2019, we entered into an amended credit and guaranty agreement comprised of a $500 term facility (the Term A Facility), a $450 term facility (the Term B Facility and, together with the Term A Facility, the Term Facilities) and a $750 revolving credit facility (the Revolving Facility). The Term A Facility and the Revolving Facility were expansions of our existing facilities. On February 28, 2019, we drew the $225 available under the Term A Facility and the $450 available under the Term B Facility. The proceeds from the term facilities were used to acquire the Oerlikon Drive Systems segment of the Oerlikon Group and pay for related integration activities. We were required to make equal quarterly installments on the Term A Facility on the last day of each fiscal quarter of $8 beginning March 31, 2019 and 0.25% of the aggregate principal advances of the Term B Facility quarterly commencing on June 30, 2019. On August 30, 2019, we amended our credit and guaranty agreement, increasing the Revolving Facility to $1,000 and extending the maturities and reducing the interest rates of both the Revolving Facility and the Term A Facility. On August 30, we borrowed $100 on the Revolving Facility and paid down a similar amount of the Term B Facility. Outstanding borrowings on the Revolving Facility are included in short-term debt. We are now required to make quarterly installments on the Term A Facility on the last day of each fiscal quarter of $7 beginning on September 30, 2020 and are no longer required to make quarterly installments on the Term B Facility. The Revolving Facility and the Term A Facility mature on August 17, 2024. The Term B Facility matures on February 28, 2026.

On August 26, 2019, we acquired a 100% ownership interest in Nordresa for consideration of $12. On June 6, 2019, we acquired PEBL's 50% ownership interest in PEPS paying $50 at closing. On February 28, 2019, we acquired ODS paying $626 at closing. On January 11, 2019, we acquired a 100% ownership interest in SME. We paid $88 at closing, consisting of $62 in cash on hand and a note payable of $26. The note is payable in five years and bears annual interest at 5%.

On June 22, 2018, we acquired a 55% ownership interest in TM4 from Hydro-Québec. On July 29, 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in SME and increasing its existing indirect 22.5% noncontrolling interest in PEPS to 45%. We received $65 at closing, consisting of $53 of cash and a note receivable of $12. The note is payable in five years and bears annual interest of 5%.

During the second quarter of 2019, we terminated one of our U.S. defined benefit pension plans. We contributed $62 to the plan prior to the plan's purchase of group annuity contracts from two insurance carriers. The purchase of the group annuity contracts irrevocably transferred the plans future pension benefit obligations to the insurance carriers.

At September 30, 2019, we had $100 of borrowings outstanding under the Revolving Facility and we had utilized $21 for letters of credit. We had availability at September 30, 2019 under the Revolving Facility of $879 after deducting outstanding borrowings and letters of credit.

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At September 30, 2019, we were in compliance with the covenants of our financing agreements. Under the Term Facilities, the Revolving Facility and our senior notes, we are required to comply with certain incurrence-based covenants customary for facilities of these types. The incurrence-based covenants in the Term Facilities and the Revolving Facility permit us to, among other things, (i) issue foreign subsidiary indebtedness, (ii) incur general secured indebtedness subject to a pro forma first lien net leverage ratio not to exceed 1.50:1.00 in the case of first lien debt and a pro forma secured net leverage ratio of 2.50:1.00 in the case of other secured debt and (iii) incur additional unsecured debt subject to a pro forma total net leverage ratio not to exceed 3.50:1.00, tested on the last day of each fiscal quarter. We may also make dividend payments in respect of our common stock as well as certain investments and acquisitions subject to a pro forma total net leverage ratio of 2.75:1.00. In addition, the Term A Facility and the Revolving Facility are subject to a financial covenant requiring us to maintain a first lien net leverage ratio not to exceed 2.00:1.00. The indentures governing the senior notes include other incurrence-based covenants that may subject us to additional specified limitations.

Our Board of Directors approved an expansion of our existing common stock share repurchase program from $100 to $200 on March 24, 2018. The share repurchase program expires on December 31, 2019. We plan to repurchase shares utilizing available excess cash either in the open market or through privately negotiated transactions. The stock repurchases are subject to prevailing market conditions, available growth opportunities and other considerations. During the first nine months of 2019, we paid $25 to acquire 1,432,275 shares of common stock in the open market.

From time to time, depending upon market, pricing and other conditions, as well as our cash balances and liquidity, we may seek to acquire our senior notes or other indebtedness or our common stock through open market purchases, privately negotiated transactions, tender offers, exchange offers or otherwise, upon such terms and at such prices as we may determine (or as may be provided for in the indentures governing the notes), for cash, securities or other consideration. There can be no assurance that we will pursue any such transactions in the future, as the pursuit of any alternative will depend upon numerous factors such as market conditions, our financial performance and the limitations applicable to such transactions under our financing and governance documents.

Cash Flow

	Nine Months Ended September 30,
	2019			2018
Cash used for changes in working capital	$	(197	)	$	(269	)
Other cash provided by operations	485			506
Net cash provided by operating activities	288			237
Net cash used in investing activities	(995		)	(385		)
Net cash provided by (used in) financing activities	605			(122		)
Net decrease in cash, cash equivalents and restricted cash	$	(102	)	$	(270	)

The table above summarizes our consolidated statement of cash flows.

Operating activities — Exclusive of working capital, other cash provided by operations was $485 and $506 in 2019 and 2018. The year-over-year improvement attributable to operating earnings and lower cash paid for income taxes was more than offset by a $62 discretionary pension contribution made to one of our U.S. defined benefit pension plans, higher year-over-year interest payments as a result of increased borrowings to fund our acquisition of ODS and higher cash paid for restructuring activities. Reference is made to Note 12 of the consolidated financial statements in Item 1 of Part I for a discussion of the settlement of this U.S. defined benefit pension plan.

Working capital used cash of $197 and $269 in 2019 and 2018. Cash of $81 and $262 was used to finance increased receivables in 2019 and 2018. Cash of $26 and $174 was used to fund higher inventory levels in 2019 and 2018. Cash of $90 was used to reduce accounts payable and other net liabilities in 2019, while increases in accounts payable and other net liabilities provided cash of $167 in 2018.

Investing activities — Expenditures for property, plant and equipment were $298 and $235 during 2019 and 2018. The elevated level of capital spend during 2019 is primarily in support of new customer programs and information systems upgrades. During 2019, we paid $545, net of cash and restricted cash acquired, to purchase ODS, we paid $61 to acquire SME, we paid $48, net of cash acquired, to purchase PEPS and we paid $10 to acquire Nordresa. During 2019, we paid $21 to settle the undesignated Swiss franc notional deal contingent forward related to the ODS acquisition. During 2018, we paid $122, net of cash acquired, to purchase a 55% ownership interest in TM4 and, pursuant to our purchase and sale agreement for the BFP and BPT

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acquisitions in 2017, we made a net payment of $20 to complete a required purchase of real estate and settle purchase price adjustment amounts owned by the seller. During 2018, we completed the sale of our Brazil suspension components business resulting in a net cash outflow of $6, as the cash transferred to the buyer in the transaction exceeded the proceeds received from the buyer. During 2019 and 2018, purchases of marketable securities were funded by proceeds from sales and maturities of marketable securities.

Financing activities — During 2019, we entered into an amended credit and guaranty agreement comprised of a $500 Term A Facility, a $450 Term B Facility and a $1,000 Revolving Facility. The Term A Facility was an expansion of our existing $275 term facility. We drew the $225 available under the Term A Facility and the $450 available under the Term B Facility. We paid financing costs of $16 to amend the credit and guaranty agreement. During 2019, we drew $100 on our Revolving Facility and made combined principle payments of $117 on the Term Facilities. During the third quarter of 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in SME and increasing its existing indirect 22.5% noncontrolling interest in PEPS to an indirect 45% redeemable noncontrolling interest. We received $53 of cash at closing. During 2018, we paid $43 to acquire Brevini's remaining 20% ownership interest in BFP and BPT. Also during 2018, Yulon Motor Co., Ltd. (Yulon) paid $22 to acquire a direct ownership interest in two of our consolidated subsidiaries. Yulon's ownership interest in the two consolidated operating subsidiaries did not change as a result of the transactions, as it previously owned the same percentages indirectly through a series of consolidated holding companies. We used $43 for dividend payments to common stockholders during both 2019 and 2018. We used cash of $25 to repurchase 1,432,275 shares of our common stock during 2019 and $25 to repurchase 1,055,000 shares of our common stock during 2018.

Off-Balance Sheet Arrangements

There have been no material changes at September 30, 2019 in our off-balance sheet arrangements from those reported or estimated in the disclosures in Item 7 of our 2018 Form 10-K.

Contractual Obligations

The SME acquisition purchase consideration included a note payable of $26 which allows for net settlement of potential contingencies as defined in the purchase agreement. The note is payable in five years and bears annual interest of 5%. See Note 2 to our consolidated financial statements in Item 1 of Part I for additional information.

During 2019, we expanded our credit and guaranty agreement. We entered into $675 of additional floating rate term loans to fund the ODS acquisition and upsized our revolving credit facility to $1,000. See Note 14 to our consolidated financial statements in Item 1 of Part I for additional information.

Contingencies

For a summary of litigation and other contingencies, see Note 16 to our consolidated financial statements in Item 1 of Part I. Based on information available to us at the present time, we do not believe that any liabilities beyond the amounts already accrued that may result from these contingencies will have a material adverse effect on our liquidity, financial condition or results of operations.

Critical Accounting Estimates

The preparation of our consolidated financial statements in accordance with GAAP requires us to use estimates and make judgments that affect the reported amounts of assets, liabilities, revenue and expenses and the related disclosures. See Item 7 in our 2018 Form 10-K for a description of our critical accounting estimates and Note 1 to our consolidated financial statements in Item 8 of our 2018 Form 10-K for our significant accounting policies. There were no changes to our critical accounting estimates in the nine months ended September 30, 2019. See Note 1 to our consolidated financial statements in this Form 10-Q for a discussion of new accounting guidance adopted during the first nine months of 2019.

Long-term interest rates on high quality corporate debt instruments, which are used to determine the discount rates used in the valuation of our other U.S. defined benefit pension obligations, have decreased during 2019. The lower interest rates, if unchanged during the fourth quarter, would result in a year-end discount rate of 3.10% for our U.S. plans versus the 4.22% discount rate used at the end of 2018. Our return on pension assets through the first nine months of 2019 has been higher than our 6.0% annual expected return on the related plan assets. Notwithstanding other changes in assumptions, we would expect the use of a discount rate of 3.10% and earning a 6.0% annualized return on plan assets during the fourth quarter to result in an immaterial actuarial loss for these U.S. defined benefit plans at December 31, 2019.

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Considering the impacts described above, the funded status of our U.S. defined benefit pension plans would approximate 93% at the end of 2019, comparable to the funded position at the end of 2018. We currently expect there to be no minimum funding requirements for our U.S. plans in 2020.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to market risk exposures related to changes in currency exchange rates, interest rates or commodity costs from those discussed in Item 7A of our 2018 Form 10-K.

Item 4. Controls and Procedures

Disclosure controls and procedures — We maintain disclosure controls and procedures that are designed to ensure that the information disclosed in the reports we file with the SEC under the Securities Exchange Act of 1934, as amended (the Exchange Act), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to allow timely decisions regarding required disclosure.

Our management, with the participation of our CEO and CFO, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report on Form 10-Q. Our CEO and CFO have concluded that, as of the end of the period covered by this Report on Form 10-Q, our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective.

Changes in internal control over financial reporting — There was no change in our internal control over financial reporting that occurred during our fiscal quarter ended September 30, 2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. During the quarter ended March 31, 2019, we acquired a 100% interest in Oerlikon Drive Systems segment of the Oerlikon Group and a 100% ownership interest in S.M.E. S.p.A. During the quarter ended June 30, 2019, we increased our ownership interest in Prestolite E-Propulsion Systems (Beijing) Limited (PEPS) to 100%, thereby obtaining a controlling financial interest in PEPS. During the quarter ended September 30, 2019, we acquired a 100% interest in Nordresa Motors, Inc. We are currently integrating these acquisitions into our operations, compliance programs and internal control processes. As permitted by SEC guidance, management intends to exclude them from its assessment of internal controls over financial reporting as of December 31, 2019.

CEO and CFO certifications — The certifications of our CEO and CFO that are attached to this report as Exhibits 31.1 and 31.2 include information about our disclosure controls and procedures and internal control over financial reporting. These certifications should be read in conjunction with the information contained in this Item 4 and in Item 9A of Part II of our 2018 Form 10-K for a more complete understanding of the matters covered by the certifications.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are a party to various pending judicial and administrative proceedings that arose in the ordinary course of business. After reviewing the currently pending lawsuits and proceedings (including the probable outcomes, reasonably anticipated costs and expenses and our established reserves for uninsured liabilities), we do not believe that any liabilities that may result from these proceedings are reasonably likely to have a material adverse effect on our liquidity, financial condition or results of operations. Legal proceedings are also discussed in Note 16 to our consolidated financial statements in Item 1 of Part I of this Form 10-Q.

Item 1A. Risk Factors

There have been no material changes in our risk factors disclosed in Item 1A of our 2018 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer's purchases of equity securities — Our Board of Directors approved an expansion of our existing common stock share repurchase program from $100 to $200 on March 24, 2018. The share repurchase program expires on December 31, 2019. We repurchase shares utilizing available excess cash either in the open market or through privately negotiated transactions. The stock repurchases are subject to prevailing market conditions, available growth opportunities and other considerations. No shares of our common stock were repurchased under the program during the third quarter of 2019.

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Item 6. Exhibits

Exhibit No.	Description
10.1	Amendment No. 3 to Credit and Guaranty Agreement, dated as of August 30, 2019, among Dana Incorporated, as a borrower, Dana International Luxembourg S.à r.l., as a borrower, the guarantors party thereto, the lenders party thereto and Citibank, N.A, as administrative agent and collateral agent. Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed September 4, 2019 and incorporated by reference herein.
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. Filed with this Report.
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. Filed with this Report.
32	Section 1350 Certifications (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002). Filed with this Report.
101	The following materials from Dana Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Consolidated Statement of Operations, (ii) the Consolidated Statement of Comprehensive Income, (iii) the Consolidated Balance Sheet, (iv) the Consolidated Statement of Cash Flows and (v) Notes to the Consolidated Financial Statements. Filed with this Report.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

59

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		DANA INCORPORATED
Date:	October 30, 2019	By:	/s/ Jonathan M. Collins
			Jonathan M. Collins
			Executive Vice President and
			Chief Financial Officer

60

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

I, James K. Kamsickas, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Dana Incorporated;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4.  The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 30, 2019

/s/ James K. Kamsickas

James K. Kamsickas

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

I, Jonathan M. Collins, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Dana Incorporated;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4.  The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 30, 2019

/s/ Jonathan M. Collins

Jonathan M. Collins

Executive Vice President and Chief Financial Officer

EX-32

EXHIBIT 32

Certifications Pursuant to 18 U.S.C. Section 1350

In connection with the Quarterly Report of Dana Incorporated (Dana) on Form 10-Q for the three months ended September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the Report), each of the undersigned officers of Dana certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to such officer's knowledge:

(1)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Dana as of the dates and for the periods expressed in the Report.

Date: October 30, 2019

/s/ James K. Kamsickas

James K. Kamsickas

President and Chief Executive Officer

/s/ Jonathan M. Collins

Jonathan M. Collins

Executive Vice President and Chief Financial Officer

XML

Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions					9 Months Ended
	Jun. 06, 2019	Feb. 28, 2019	Jan. 11, 2019	Jun. 22, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross					$ 666	$ 151
Business Combination, Goodwill					$ 530		$ 264
Prestolite E-Propulsion Systems Limited (PEPS) [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 50
Business Combination, Consideration Transferred, Other	45
Total purchase consideration	95
Business Combination, Cash and cash equivalents	2
Business Combination, Accounts receivable - Trade	17
Business Combination, Inventories	8
Business Combination, Goodwill	73
Business Combination, Property, plant and equipment	2
Business Combination, Accounts payable	(4)
Business Combination, Other accrued liabilities	(3)
Business Combination, Total purchase consideration allocation	$ 95
ODS [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 626
Business Combination, Purchase Price Adjustments		(4)
Total purchase consideration		622
Business Combination, Cash and cash equivalents		76
Business Combination, Accounts receivable - Trade		150
Business Combination, Accounts receivable - Other		15
Business Combination, Inventories		190
Business Combination, Other current assets		15
Business Combination, Goodwill		123
Business Combination, Intangibles		58
Business Combination, Deferred tax assets		51
Business Combination, Other noncurrent assets		5
Business Combination, Investments in affiliates		7
Business Combination, Property, plant and equipment		329
Business Combination, Notes payable, including current portion of long-term debt		(2)
Business Combination, Accounts payable		(151)
Business Combination, Accrued payroll and employee benefits		(35)
Business Combination, Other accrued liabilities		(48)
Business Combination, Long-term debt		(8)
Business Combination, Pension and postretirement obligations		(48)
Business Combination, Other noncurrent liabilities		(97)
Business Combination, Noncontrolling interests		(8)
Business Combination, Total purchase consideration allocation		$ 622
SME [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross			$ 62
Total purchase consideration			88
Business Combination, Accounts receivable - Trade			4
Business Combination, Accounts receivable - Other			1
Business Combination, Inventories			8
Business Combination, Goodwill			68
Business Combination, Intangibles			24
Business Combination, Other noncurrent assets			1
Business Combination, Property, plant and equipment			5
Business Combination, Notes payable, including current portion of long-term debt			(8)
Business Combination, Accounts payable			(6)
Business Combination, Accrued payroll and employee benefits			(1)
Business Combination, Other accrued liabilities			(1)
Business Combination, Other noncurrent liabilities			(7)
Business Combination, Total purchase consideration allocation			$ 88
TM4 [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross				$ 125
Total purchase consideration				125
Business Combination, Cash and cash equivalents				3
Business Combination, Accounts receivable - Trade				3
Business Combination, Accounts receivable - Other				1
Business Combination, Inventories				4
Business Combination, Goodwill				148
Business Combination, Intangibles				24
Business Combination, Investments in affiliates				49
Business Combination, Property, plant and equipment				5
Business Combination, Accounts payable				(2)
Business Combination, Accrued payroll and employee benefits				(1)
Business Combination, Other accrued liabilities				(7)
Business Combination, Redeemable noncontrolling interest				(102)
Business Combination, Total purchase consideration allocation				$ 125

XML

Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

Disaggregation of revenue —

The following table disaggregates revenue for each of our operating segments by geographical market:

Three Months Ended September 30, 2019	Light Vehicle		Commercial Vehicle		Off-Highway		Power Technologies		Total
North America	$	699	$	238	$	89	$	132	$	1,158
Europe	80		49		381		104		614
South America	34		85		11		4		134
Asia Pacific	117		26		101		14		258
Total	$	930	$	398	$	582	$	254	$	2,164
Nine Months Ended September 30, 2019
North America	$	2,042	$	745	$	245	$	412	$	3,444
Europe	256		181		1,243		325		2,005
South America	105		245		31		15		396
Asia Pacific	360		95		289		44		788
Total	$	2,763	$	1,266	$	1,808	$	796	$	6,633

Three Months Ended September 30, 2018
North America	$	605	$	232	$	35	$	141	$	1,013
Europe	83		62		322		105		572
South America	46		79		9		6		140
Asia Pacific	145		33		59		16		253
Total	$	879	$	406	$	425	$	268	$	1,978
Nine Months September 30, 2018
North America	$	1,869	$	677	$	109	$	442	$	3,097
Europe	264		206		1,083		337		1,890
South America	139		240		23		16		418
Asia Pacific	430		94		187		54		765
Total	$	2,702	$	1,217	$	1,402	$	849	$	6,170

XML

Financing Agreements (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

Long-term debt at —

	Interest Rate		9/30/2019			December 31, 2018
Senior Notes due September 15, 2023	6.000%		$	300		$	300
Senior Notes due December 15, 2024	5.500%		425			425
Senior Notes due April 15, 2025	5.750%	*	400			400
Senior Notes due June 1, 2026	6.500%	*	375			375
Term Facility A			474			265
Term Facility B			349
Other indebtedness			63			28
Debt issuance costs			(27		)	(18		)
			2,359			1,775
Less: Current portion of long-term debt			13			20
Long-term debt, less debt issuance costs			$	2,346		$	1,755

*

In conjunction with the issuance of the April 2025 Notes we entered into 8-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of 3.850%. In conjunction with the issuance of the June 2026 Notes we entered into 10-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the June 2026 Notes to euro-denominated debt at a fixed rate of 5.140%. See Note 15 for additional information.

Schedule of Term A Facility and Revolving Facility Margin Arrangements [Table Text Block]

Advances under the Term A Facility and the Revolving Facility bear interest at a floating rate based on, at our option, the base rate or Eurodollar rate (each as described in the credit agreement) plus a margin as set forth below:

	Margin
Total Net Leverage Ratio	Base Rate		Eurodollar Rate
Less than or equal to 1.00:1.00	0.25	%	1.25	%
Greater than 1.00:1.00 but less than or equal to 2.00:1.00	0.50	%	1.50	%
Greater than 2.00:1.00	0.75	%	1.75	%

Schedule of Revolving Facility Commitment Fee Arrangements [Table Text Block]

Commitment fees are applied based on the average daily unused portion of the available amounts under the Revolving Facility as set forth below:

Total Net Leverage Ratio	Commitment Fee
Less than or equal to 1.00:1.00	0.250	%
Greater than 1.00:1.00 but less than or equal to 2.00:1.00	0.375	%
Greater than 2.00:1.00	0.500	%

XML

Acquisitions

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Acquisitions

Nordresa — On August 26, 2019, we acquired a 100% ownership interest in Nordresa Motors, Inc. (Nordresa) for consideration of $12, using cash on hand. Nordresa is a prominent integration and application engineering expert for the development and commercialization of electric powertrains for commercial vehicles. The investment further enhances Dana's electrification capabilities by combining its complete portfolio of motors, inverters, chargers, gearboxes, and thermal-management products with Nordresa's proprietary battery-management system, electric powertrain controls and integration expertise to deliver complete electric powertrain systems. The results of operations of the business are reported within our Commercial Vehicle operating segment. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented.

Hydro-Québec Relationship — On July 29, 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in S.M.E. S.p.A. (SME) and increasing its existing indirect 22.5% noncontrolling interest in Prestolite E-Propulsion Systems (Beijing) Limited (PEPS) to 45%. We received $65 at closing, consisting of $53 of cash and a note receivable of $12. The note is payable in five years and bears annual interest of 5%. Dana will continue to consolidate SME and PEPS as the governing documents continue to provide Dana with a controlling financial interest in these subsidiaries. See Note 9 for additional information. See below for a discussion of Dana's acquisitions of PEPS, SME and TM4.

Prestolite E-Propulsion Systems (Beijing) Limited — On June 6, 2019, we acquired Prestolite Electric Beijing Limited's (PEBL) 50% ownership interest in PEPS. PEPS manufactures and distributes electric mobility solutions, including electric motors, inverters, and generators for commercial vehicles and heavy machinery. PEPS has a state-of-the-art facility in China, enabling us to expand motor and inverter manufacturing capabilities in the world's largest electric-mobility market. The acquisition of PEBL's interest in PEPS, along with our existing ownership interest in PEPS through our TM4 subsidiary, provides us with a 100% ownership interest and a controlling financial interest in PEPS. We recognized a $2 gain to other expense, net on the required remeasurement of our previously held equity method investment in PEPS to fair value. See Hydro-Québec relationship discussion above for details of subsequent changes in our ownership interest in PEPS.

We paid $50 at closing using cash on hand. The purchase consideration and related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Cash consideration	$	50
Fair value of previously held equity method investment	45
Total purchase consideration	$	95
Cash and cash equivalents	$	2
Accounts receivable - Trade	17
Inventories	8
Goodwill	73
Property, plant and equipment	2
Accounts payable	(4		)
Other accrued liabilities	(3		)
Total purchase consideration allocation	$	95

The fair value of the assets acquired and liabilities assumed, as well as the fair value of our previously held equity method investment, are provisional and could be revised as a result of additional information obtained regarding indemnified matters and liabilities assumed and revisions of provisional estimates of fair values, including but not limited to, the completion of independent appraisals and valuations related to inventories, intangibles and property, plant and equipment. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. We used a combination of the discounted cash flow, an income approach, and the guideline public company method, a market approach, to value our previously held equity method investment in PEPS.

The results of operations of the business are reported in our Commercial Vehicle operating segment from the date of acquisition. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented. PEPS had an insignificant impact on our consolidated results of operations during the third quarter and first nine months of 2019.

Oerlikon Drive Systems — On February 28, 2019, we acquired a 100% ownership interest in the Oerlikon Drive Systems (ODS) segment of the Oerlikon Group. ODS is a global manufacturer of high-precision gears, planetary hub drives for wheeled and tracked vehicles, and products, controls, and software that support vehicle electrification across the mobility industry. The acquisition of ODS is expected to deliver significant long-term value by accelerating our commitment to vehicle electrification and strengthening the technology portfolio for each of our end markets while further expanding and balancing the manufacturing presence of our off-highway business in key geographical markets. The business employs approximately 5,600 people and operates 11 manufacturing and engineering facilities in China, India, Italy, the United Kingdom, and the United States, with one additional facility under construction in China.

We paid $626 at closing which was funded primarily through debt proceeds. See Note 14 for additional information. The purchase consideration and related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Purchase consideration paid at closing	$	626
Less purchase consideration to be recovered for indemnified matters	(4		)
Total purchase consideration	$	622
Cash and cash equivalents	$	76
Accounts receivable - Trade	150
Accounts receivable - Other	15
Inventories	190
Other current assets	15
Goodwill	123
Intangibles	58
Deferred tax assets	51
Other noncurrent assets	5
Investments in affiliates	7
Property, plant and equipment	329
Current portion of long-term debt	(2		)
Accounts payable	(151		)
Accrued payroll and employee benefits	(35		)
Other accrued liabilities	(48		)
Long-term debt	(8		)
Pension and postretirement obligations	(48		)
Other noncurrent liabilities	(97		)
Noncontrolling interests	(8		)
Total purchase consideration allocation	$	622

The purchase consideration and the fair values of the assets acquired and liabilities assumed are provisional and could be revised as a result of additional information obtained regarding indemnified matters and liabilities assumed and revisions of provisional estimates of fair values, including but not limited to, the completion of independent appraisals and valuations related to inventory, intangibles and property, plant and equipment.

Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. The provisional fair values assigned to intangibles includes $11 allocated to developed technology, $13 allocated to trademarks and trade names and $34 allocated to customer relationships. We used the relief from royalty method, an income approach, to value developed technology and trademarks and trade names. We used the multi-period excess earnings method, an income approach, to value customer relationships. We used a replacement cost method to value fixed assets. The developed technology, trademarks and trade names and customer relationship intangible assets are being amortized on a straight-line basis over seven, ten and twelve years, respectively. Property, plant and equipment is being depreciated on a straight-line basis over useful lives ranging from three to twenty-five years.

The results of operations of the business are primarily reported in our Off-Highway and Commercial Vehicle operating segments. Transaction related expenses associated with completion of the acquisition totaling $13 were charged to other expense, net. During the third quarter and first nine months of 2019, the business contributed sales of $179 and $465, respectively.

The following unaudited pro forma information has been prepared as if the ODS acquisition and the related debt financing had occurred on January 1, 2018.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net sales	$	2,164	$	2,179	$	6,778	$	6,825
Net income	$	115	$	97	$	182	$	301

The unaudited pro forma results include adjustments primarily related to purchase accounting, interest expense related to the debt proceeds used in connection with the acquisition of ODS, and non-recurring strategic transaction expenses. The unaudited pro forma financial information is not indicative of the operational results that would have been obtained had the transactions actually occurred as of that date, nor is it necessarily indicative of Dana’s future operational results.

SME — On January 11, 2019, we acquired a 100% ownership interest in SME. SME designs, engineers, and manufactures low-voltage AC induction and synchronous reluctance motors, inverters, and controls for a wide range of off-highway electric vehicle applications, including material handling, agriculture, construction, and automated-guided vehicles. The addition of SME's low-voltage motors and inverters, which are primarily designed to meet the evolution of electrification in off-highway equipment, significantly expands Dana's electrified product portfolio. See Hydro-Québec relationship discussion above for details of subsequent changes in our ownership interest in SME.

We paid $88 at closing, consisting of $62 in cash on hand and a note payable of $26 which allows for net settlement of potential contingencies as defined in the purchase agreement. The note is payable in five years and bears annual interest of 5%. The purchase consideration and the related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Total purchase consideration	$	88
Accounts receivable - Trade	4
Accounts receivable - Other	1
Inventories	8
Goodwill	68
Intangibles	24
Other noncurrent assets	1
Property, plant and equipment	5
Short-term debt	(8		)
Accounts payable	(6		)
Accrued payroll and employee benefits	(1		)
Other accrued liabilities	(1		)
Other noncurrent liabilities	(7		)
Total purchase consideration allocation	$	88

The fair value of the assets acquired and liabilities assumed are provisional and could be revised as a result of additional information obtained regarding liabilities assumed and revisions of provisional estimates of fair values including but not limited to, the completion of independent appraisals and valuations related to intangibles.

Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. The provisional fair values assigned to intangibles include $15 allocated to developed technology and $9 allocated to customer relationships. We used the relief from royalty method, an income approach, to value developed technology. We used the multi-period excess earnings method, an income approach, to value customer relationships. We used a replacement cost method to value fixed assets. The developed technology and customer relationship intangible assets are being amortized on a straight-line basis over twelve and ten years, respectively, and property, plant and equipment is being depreciated on a straight-line basis over useful lives ranging from one to twenty years.

The results of operations of the business are reported in our Off-Highway operating segment from the date of acquisition. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented. During the third quarter and first nine months of 2019, the business contributed sales of $4 and $16, respectively.

TM4 — On June 22, 2018, we acquired a 55% ownership interest in TM4 Inc. (TM4) from Hydro-Québec. TM4 designs and manufactures motors, power inverters, and control systems for electric vehicles, offering a complementary portfolio to Dana's electric gearboxes and thermal-management technologies for batteries, motors, and inverters. The transaction establishes Dana as the only supplier with full e-Drive design, engineering, and manufacturing capabilities – offering electro-mechanical propulsion solutions to each of its end markets. The transaction further strengthens Dana's position in China, the world's fastest-growing market for electric vehicles. The terms of the agreement provide Hydro-Québec with the right to put all, and not less than all, of its shares in TM4 to Dana at fair value any time after June 22, 2021, see Note 9 for additional information. TM4 owns a 50% interest in PEPS, a joint venture in China with PEBL, which offers electric mobility solutions throughout China and Asia. See discussion of Dana's subsequent acquisition of PEBL's 50% interest in PEPS above.

We paid $125 at closing, using cash on hand. The purchase consideration and the related allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Total purchase consideration	$	125
Cash and cash equivalents	$	3
Accounts receivable - Trade	3
Accounts receivable - Other	1
Inventories	4
Goodwill	148
Intangibles	24
Investments in affiliates	49
Property, plant and equipment	5
Accounts payable	(2		)
Accrued payroll and employee benefits	(1		)
Other accrued liabilities	(7		)
Redeemable noncontrolling interest	(102		)
Total purchase consideration allocation	$	125

Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce and is not deductible for tax purposes. The fair values assigned to intangibles include $14 allocated to developed technology and $10 allocated to trademarks and trade names. We used the relief from royalty method, an income approach, to value developed technology and the trademarks and trade names. We used a replacement cost method to value fixed assets. We used a combination of the discounted cash flow, an income approach, and the guideline public company method, a market approach, to value the equity method investment in PEPS. The developed technology intangible assets are being amortized on a straight-line basis over ten years, and property, plant and equipment is being depreciated on a straight-line basis over useful lives ranging from five to six years. The trademarks and trade names are considered indefinite-lived intangible assets.

Dana is consolidating TM4 as the governing documents provide Dana with a controlling financial interest. The results of operations of the business are reported in our Commercial Vehicle operating segment from the date of acquisition. Transaction related expenses associated with completion of the acquisition totaling $5 were charged to other expense, net in 2018. The pro forma effects of this acquisition would not materially impact our reported results for any period presented, and as a result no pro forma financial information is presented. During 2018, the business contributed sales of $11.

BFP and BPT — On February 1, 2017, we acquired 80% ownership interests in Brevini Fluid Power S.p.A. (BFP) and Brevini Power Transmission S.p.A. (BPT) from Brevini Group S.p.A. (Brevini). The acquisition expands our Off-Highway operating segment product portfolio to include technologies for tracked vehicles, doubling our addressable market for off-highway driveline systems and establishing Dana as the only off-highway solutions provider that can manage the power to both move the equipment and perform its critical work functions. This acquisition also brings a platform of technologies that can be leveraged in our light and commercial-vehicle end markets, helping to accelerate our hybridization and electrification initiatives.

We paid $181 at closing, using cash on hand, and refinanced a significant portion of the debt assumed in the transaction during the first half of 2017. In December 2017, a purchase price reduction of $9 was agreed under the sale and purchase agreement provisions for determination of the net indebtedness and net working capital levels of BFP and BPT as of the closing date. In connection with the acquisition of BFP and BPT, Dana agreed to purchase certain real estate being leased by BPT from a Brevini affiliate for €25. Completion of the real estate purchase and receipt of the purchase price adjustment occurred in the second quarter of 2018 with a net cash payment of $20.

On August 8, 2018, we entered into an agreement to acquire Interfind S.p.A.'s, formerly Brevini Group S.p.A., remaining 20% ownership interests in BFP and BPT and to settle all claims between the parties. We paid $43 to acquire Interfind S.p.A.'s remaining ownership interests and received $10 in settlement of all pending and future claims. See Note 9 for additional information.

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Fair Value Measurements and Derivatives - Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net sales	$ 2,164	$ 1,978	$ 6,633	$ 6,170
Cost of sales	1,882	1,692	5,725	5,269
Other expense, net	8	9	31	19
Cash Flow Hedging [Member] | Forward Contracts [Member] | Net Sales [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification from AOCI
Cash Flow Hedging [Member] | Forward Contracts [Member] | Cost of Sales [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification from AOCI	(2)		(7)	(2)
Cash Flow Hedging [Member] | Currency Swap [Member] | Other Expense, Net [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification from AOCI	$ (47)	$ (7)	$ (55)	$ (40)

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Consolidated Balance Sheet (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets [Abstract]
Cash and cash equivalents	$ 402,000,000	$ 510,000,000
Marketable securities	20,000,000	21,000,000
Accounts receivable [Abstract]
Trade, less allowance for doubtful accounts of $8 in 2019 and $9 in 2018	1,285,000,000	1,065,000,000
Other	198,000,000	178,000,000
Inventories	1,233,000,000	1,031,000,000
Other current assets	135,000,000	102,000,000
Total current assets	3,273,000,000	2,907,000,000
Goodwill	530,000,000	264,000,000
Intangibles	232,000,000	164,000,000
Deferred tax assets	539,000,000	445,000,000
Other noncurrent assets	112,000,000	80,000,000
Investments in affiliates	172,000,000	208,000,000
Operating lease assets	174,000,000
Property, plant and equipment, net	2,199,000,000	1,850,000,000
Total assets	7,231,000,000	5,918,000,000
Current liabilities [Abstract]
Short-term debt	109,000,000	8,000,000
Current portion of long-term debt	13,000,000	20,000,000
Accounts payable	1,285,000,000	1,217,000,000
Accrued payroll and employee benefits	208,000,000	186,000,000
Taxes on income	55,000,000	47,000,000
Current portion of operating lease liabilities	41,000,000
Other accrued liabilities	279,000,000	269,000,000
Total current liabilities	1,990,000,000	1,747,000,000
Long-term debt, less debt issuance costs of $27 in 2019 and $18 in 2018	2,346,000,000	1,755,000,000
Noncurrent operating lease liabilities	136,000,000
Pension and postretirement obligations	418,000,000	561,000,000
Other noncurrent liabilities	289,000,000	313,000,000
Total liabilities	5,179,000,000	4,376,000,000
Commitments and contingencies (Note 16)
Redeemable noncontrolling interests	174,000,000	100,000,000
Parent company stockholders' equity
Preferred stock, 50,000,000 shares authorized, $0.01 par value, no shares outstanding	0	0
Common stock, 450,000,000 shares authorized, $0.01 par value, 143,923,921 and 144,663,403 shares outstanding	2,000,000	2,000,000
Additional paid-in capital	2,381,000,000	2,368,000,000
Retained earnings	552,000,000	456,000,000
Treasury stock, at cost (10,103,374 and 8,342,185 shares)	(150,000,000)	(119,000,000)
Accumulated other comprehensive loss	(994,000,000)	(1,362,000,000)
Total parent company stockholders' equity	1,791,000,000	1,345,000,000
Noncontrolling interests	87,000,000	97,000,000
Total equity	1,878,000,000	1,442,000,000
Total liabilities and equity	$ 7,231,000,000	$ 5,918,000,000

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Leases - Additional Information (Details) $ in Millions	Sep. 30, 2019 USD ($)
Operating Leases, Lease payments of leases not yet commenced	$ 8
Minimum [Member]
Operating Leases, Term of leases	1 year
Finance Lease, Term of lease	1 year
Maximum [Member]
Operating Leases, Term of leases	11 years
Operating Leases, Options to extend the terms	7 years
Finance Lease, Term of lease	11 years
Finance Lease, Options to extend the terms	7 years

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Leases - Supplemental Balance Sheet Information Related to Leases (Details)	Sep. 30, 2019
Weighted-average remaining lease term (years):
Operating leases	6 years
Finance leases	9 years
Weighted-average discount rate:
Operating leases	6.00%
Finance leases	4.00%

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended					9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income tax expense (benefit)	$ 5			$ 31		$ (27)	$ 75
Effective income tax rate						(28.00%)	19.00%
Release of valuation allowance		$ 30
Pension settlement charge	2	258				$ 260
Pension settlement charge associated income tax benefit		9
Other adjustments		$ (48)	$ 6		$ (46)
Effective income tax rate, excluding effects of special items						28.00%	29.00%
Tax settlements					$ 7
US federal statutory income tax rate						21.00%
BRAZIL
Release of valuation allowance	$ 22
UNITED STATES
Release of valuation allowance			$ 22

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Financing Agreements

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Financing Agreements [Text Block]

Financing Agreements

Long-term debt at —

	Interest Rate		9/30/2019			December 31, 2018
Senior Notes due September 15, 2023	6.000%		$	300		$	300
Senior Notes due December 15, 2024	5.500%		425			425
Senior Notes due April 15, 2025	5.750%	*	400			400
Senior Notes due June 1, 2026	6.500%	*	375			375
Term Facility A			474			265
Term Facility B			349
Other indebtedness			63			28
Debt issuance costs			(27		)	(18		)
			2,359			1,775
Less: Current portion of long-term debt			13			20
Long-term debt, less debt issuance costs			$	2,346		$	1,755

* In conjunction with the issuance of the April 2025 Notes we entered into 8-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of 3.850%. In conjunction with the issuance of the June 2026 Notes we entered into 10-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the June 2026 Notes to euro-denominated debt at a fixed rate of 5.140%. See Note 15 for additional information.

Interest on the senior notes is payable semi-annually and interest on the Term Facilities is payable quarterly. Other indebtedness includes the note payable to SME, borrowings from various financial institutions, finance lease obligations and the unamortized fair value adjustment related to a terminated interest rate swap. See Note 2 for additional information on the note payable to SME and Note 15 for additional information on the terminated interest rate swap.

Credit agreement — On February 28, 2019, we entered into an amended credit and guaranty agreement comprised of a $500 term facility (the Term A Facility), a $450 term facility (the Term B Facility and, together with the Term A Facility, the Term Facilities) and a $750 revolving credit facility (the Revolving Facility). The Term A Facility and the Revolving Facility were expansions of our existing facilities. On February 28, 2019, we drew the $225 available under the Term A Facility and the $450 available under the Term B Facility. The proceeds from the Term Facilities were used to acquire the Oerlikon Drive Systems segment of the Oerlikon Group and pay for related integration activities. We were required to make equal quarterly installments on the Term A Facility on the last day of each fiscal quarter of $8 beginning March 31, 2019 and 0.25% of the aggregate principal advances of the Term B Facility quarterly commencing on June 30, 2019. On August 30, 2019, we amended our credit and guaranty agreement, increasing the Revolving Facility to $1,000 and extending the maturities and reducing the interest rates of both the Revolving Facility and the Term A Facility. On August 30, we borrowed $100 on the Revolving Facility and paid down a similar amount of the Term B Facility. Outstanding borrowings on the Revolving Facility are included in short-term debt. We are now required to make quarterly installments on the Term A Facility on the last day of each fiscal quarter of $7 beginning on September 30, 2020 and are no longer required to make quarterly installments on the Term B Facility. We may prepay some or all of the amounts under the Term Facilities without penalty. We recorded deferred fees of $13 and $4 related to the amendments to the Term Facilities and the Revolving Facility, respectively. The deferred fees are being amortized over the life of the applicable facilities. Deferred financing costs on our Revolving Facility are included in other noncurrent assets. The Revolving Facility and the Term A Facility mature on August 17, 2024. The Term B Facility matures on February 28, 2026.

The Term Facilities and the Revolving Facility are guaranteed by all of our wholly-owned domestic subsidiaries subject to certain exceptions (the guarantors) and are secured by a first-priority lien on substantially all of the assets of Dana and the guarantors, subject to certain exceptions.

Advances under the Term A Facility and the Revolving Facility bear interest at a floating rate based on, at our option, the base rate or Eurodollar rate (each as described in the credit agreement) plus a margin as set forth below:

	Margin
Total Net Leverage Ratio	Base Rate		Eurodollar Rate
Less than or equal to 1.00:1.00	0.25	%	1.25	%
Greater than 1.00:1.00 but less than or equal to 2.00:1.00	0.50	%	1.50	%
Greater than 2.00:1.00	0.75	%	1.75	%

The Term B Facility bears interest based on, at our option, the Base Rate plus 1.25% or the Eurodollar rate plus 2.25%. We have elected to pay interest on our advances under the Term Facilities at the Eurodollar Rate. The interest rate on the Term A Facility was 3.544% and the Term B Facility was 4.294%, inclusive of the applicable margins, as of September 30, 2019. We have elected to pay interest on our advances under the Revolving Facility at the Eurodollar Rate. The interest rate on the Revolving Facility was 3.544%, inclusive of the applicable margins, as of September 30, 2019.

Commitment fees are applied based on the average daily unused portion of the available amounts under the Revolving Facility as set forth below:

Total Net Leverage Ratio	Commitment Fee
Less than or equal to 1.00:1.00	0.250	%
Greater than 1.00:1.00 but less than or equal to 2.00:1.00	0.375	%
Greater than 2.00:1.00	0.500	%

Up to $275 of the Revolving Facility may be applied to letters of credit, which reduces availability. We pay a fee for issued and undrawn letters of credit in an amount per annum equal to the applicable margin for Eurodollar rate advances based on a quarterly average availability under issued and undrawn letters of credit under the Revolving Facility and a per annum fronting fee of 0.125%, payable quarterly.

As of September 30, 2019, we had outstanding borrowings of $100 under the Revolving Facility and had utilized $21 for letters of credit. We had availability at September 30, 2019 under the Revolving Facility of $879 after deducting the outstanding borrowings and letters of credit.

Debt covenants — At September 30, 2019, we were in compliance with the covenants of our financing agreements. Under the Term Facilities, Revolving Facility and the senior notes, we are required to comply with certain incurrence-based covenants customary for facilities of these types and, in the case of the Term A Facility and Revolving Facility, a maintenance covenant tested on the last day of each fiscal quarter requiring us to maintain a first lien net leverage ratio not to exceed 2.00 to 1.00.

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Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

Income Taxes

We estimate the effective tax rate expected to be applicable for the full fiscal year and use that rate to provide for income taxes in interim reporting periods. We also recognize the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.

We have generally not recognized tax benefits on losses generated in several entities where the recent history of operating losses does not allow us to satisfy the “more likely than not” criterion for the recognition of deferred tax assets. Consequently, there is no income tax expense or benefit recognized on the pre-tax income or losses in these jurisdictions as valuation allowances are adjusted to offset the associated tax expense or benefit.

We record interest and penalties related to uncertain tax positions as a component of income tax expense. Net interest expense for the periods presented herein is not significant.

We reported an income tax expense of $5 and $31 for the third quarters of 2019 and 2018 and income tax benefit of $27 and income tax expense of $75 for the respective year-to-date periods. Our effective tax rates were (28)% and 19% for the first nine months of 2019 and 2018. During the third quarter of 2019, we recognized a benefit of $22 for the release of a valuation allowance in a subsidiary in Brazil based on recent history of profitability and increased income projections. During the second quarter of 2019, a pre-tax pension settlement charge of $258 with an associated income tax benefit of $9 was recorded. Also during the second quarter of 2019, we recorded tax benefits of $48 related to tax actions that adjusted federal tax credits and

$30 related to the development of a tax planning strategy which reduced valuation allowances on existing federal tax credits. During the first quarter of 2019, we recognized a benefit of $22 related to the reduction of valuation allowances in the U.S. based on increased income projections. Partially offsetting this benefit in the first quarter of 2019 was $6 of expense related to a U.S. state law change. Excluding these items, the effective tax rate would be 28% for the 2019 nine-month period. The 2018 tax expense reflected several discrete items in the second quarter, during which we recognized a benefit of $46 related to U.S. state law changes and the development and implementation of a tax planning strategy which adjusted federal tax credits, federal and state net operating losses and the associated valuation allowances. Partially offsetting this benefit was $7 of expense to settle outstanding tax matters in a foreign jurisdiction and foreign taxes related to cash repatriation actions. Excluding these items, the effective tax rate would be 29% for the 2018 nine-month period. Our effective income tax rates vary from the U.S. federal statutory rate of 21% due to establishment, release and adjustment of valuation allowances in several countries, nondeductible expenses and deemed income, local tax incentives in several countries outside the U.S., different statutory tax rates outside the U.S. and withholding taxes related to repatriations of international earnings. The effective income tax rate may vary significantly due to fluctuations in the amounts and sources, both foreign and domestic, of pretax income and changes in the amounts of non-deductible expenses.

Dividends of earnings from non-U.S. operations are generally no longer subjected to U.S. income tax. We continue to analyze and adjust the estimated tax impact of the income and non-U.S. withholding tax liabilities based on the amounts and sources of these earnings.

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Equity Affiliates

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Affiliates [Text Block]

Equity Affiliates

We have a number of investments in entities that engage in the manufacture and supply of vehicular parts (primarily axles, driveshafts, wheel-end braking systems) and motors for electric vehicles and industrial applications.

The decrease in equity method investments from the prior period is due to our acquisition of PEBL's interest in PEPS. The acquisition of PEBL's interest in PEPS, along with our existing ownership interest in PEPS through our TM4 subsidiary, provides us with a controlling financial interest in PEPS. See Note 2 for additional information.

As part of the ODS acquisition, we acquired an ownership interest in Ashwoods Innovations Ltd. (Ashwoods). The minority shareholders in this entity have substantive participating rights that allow them to effectively participate in the decisions made in the ordinary course of business that are significant to its operations. Due to these factors, we do not have control over this entity and therefore account for this investment under the equity method of accounting. Our equity method investment in Ashwoods is included in the net assets of our Off-Highway operating segment.

Equity method investments exceeding $5 at September 30, 2019 — 

	Ownership Percentage	Investment
Dongfeng Dana Axle Co., Ltd. (DDAC)	50%	$	90
Bendix Spicer Foundation Brake, LLC	20%	51
Axles India Limited	48%	10
Ashwoods Innovations Ltd.	58%	7
Taiway Ltd.	28%	5
All others as a group		7
Investments in equity affiliates		170
Investments in affiliates carried at cost		2
Investments in affiliates		$	172

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Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 2,164	$ 1,978	$ 6,633	$ 6,170
North America [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,158	1,013	3,444	3,097
Europe [Member]
Disaggregation of Revenue [Line Items]
Net sales	614	572	2,005	1,890
South America [Member]
Disaggregation of Revenue [Line Items]
Net sales	134	140	396	418
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Net sales	258	253	788	765
Light Vehicle Segment [Member]
Disaggregation of Revenue [Line Items]
Net sales	930	879	2,763	2,702
Light Vehicle Segment [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Net sales	699	605	2,042	1,869
Light Vehicle Segment [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Net sales	80	83	256	264
Light Vehicle Segment [Member] | South America [Member]
Disaggregation of Revenue [Line Items]
Net sales	34	46	105	139
Light Vehicle Segment [Member] | Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Net sales	117	145	360	430
Commercial Vehicle Segment [Member]
Disaggregation of Revenue [Line Items]
Net sales	398	406	1,266	1,217
Commercial Vehicle Segment [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Net sales	238	232	745	677
Commercial Vehicle Segment [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Net sales	49	62	181	206
Commercial Vehicle Segment [Member] | South America [Member]
Disaggregation of Revenue [Line Items]
Net sales	85	79	245	240
Commercial Vehicle Segment [Member] | Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Net sales	26	33	95	94
Off-Highway Segment [Member]
Disaggregation of Revenue [Line Items]
Net sales	582	425	1,808	1,402
Off-Highway Segment [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Net sales	89	35	245	109
Off-Highway Segment [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Net sales	381	322	1,243	1,083
Off-Highway Segment [Member] | South America [Member]
Disaggregation of Revenue [Line Items]
Net sales	11	9	31	23
Off-Highway Segment [Member] | Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Net sales	101	59	289	187
Power Technologies Segment [Member]
Disaggregation of Revenue [Line Items]
Net sales	254	268	796	849
Power Technologies Segment [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Net sales	132	141	412	442
Power Technologies Segment [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Net sales	104	105	325	337
Power Technologies Segment [Member] | South America [Member]
Disaggregation of Revenue [Line Items]
Net sales	4	6	15	16
Power Technologies Segment [Member] | Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 14	$ 16	$ 44	$ 54

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Equity Affiliates - Additional Information (Details) $ in Millions	Sep. 30, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity method investments exceeding minimum value	$ 170
Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investments exceeding minimum value	$ 5

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Supplemental Balance Sheet and Cash Flow Information

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Supplemental Balance Sheet and Cash Flow Information [Text Block]

Supplemental Balance Sheet and Cash Flow Information

Inventory components at —

	September 30, 2019			December 31, 2018
Raw materials	$	495		$	433
Work in process and finished goods	800			649
Inventory reserves	(62		)	(51		)
Total	$	1,233		$	1,031

Cash, cash equivalents and restricted cash at —

	September 30, 2019		December 31, 2018		September 30, 2018		December 31, 2017
Cash and cash equivalents	$	402	$	510	$	322	$	603
Restricted cash included in other current assets	7		7		2		3
Restricted cash included in other noncurrent assets	3		3		3		4
Total cash, cash equivalents and restricted cash	$	412	$	520	$	327	$	610

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Earnings Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings per Share

Reconciliation of the numerators and denominators of the earnings per share calculations — 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income available to common stockholders - Numerator basic and diluted	$	111	$	95	$	141	$	327
Denominator:
Weighted-average common shares outstanding - Basic	144.0		144.7		144.0		145.1
Employee compensation-related shares, including stock options	0.8		1.2		0.8		1.5
Weighted-average common shares outstanding - Diluted	144.8		145.9		144.8		146.6

The share count for diluted earnings per share is computed on the basis of the weighted-average number of common shares outstanding plus the effects of dilutive common stock equivalents (CSEs) outstanding during the period. We excluded 0.6 million and 0.1 million CSEs from the calculation of diluted earnings per share for the third quarters of 2019 and 2018 and excluded 0.2 million and 0.1 million of CSEs for the respective year-to-date periods as the effect of including them would have been anti-dilutive.

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Pension and Postretirement Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost (Credit) [Table Text Block]

Components of net periodic benefit cost — 

	Pension
	2019						2018						OPEB - Non-U.S.
Three Months Ended September 30,	U.S.			Non-U.S.			U.S.			Non-U.S.			2019		2018
Interest cost	$	7		$	1		$	11		$	2		$	1	$	—
Expected return on plan assets	(10		)				(18		)	(1		)
Service cost				2						2
Settlement charge				2
Amortization of net actuarial loss	3			2			7			2
Net periodic benefit cost	$	—		$	7		$	—		$	5		$	1	$	—
Nine Months Ended September 30,
Interest cost	$	33		$	5		$	32		$	5		$	2	$	2
Expected return on plan assets	(42		)	(2		)	(53		)	(2		)
Service cost				6						6
Settlement charge	258			2
Amortization of net actuarial loss	18			5			21			5
Net periodic benefit cost	$	267		$	16		$	—		$	14		$	2	$	2

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Changes in Equity [Table Text Block]

Changes in equity —

	Three Months Ended September 30,
2019	Common Stock		Additional Paid-In Capital		Retained Earnings			Treasury Stock			Accumulated Other Compre-hensive Loss			Non-controlling Interests			Total Equity
Balance, June 30, 2019	$	2	$	2,376	$	456		$	(150	)	$	(968	)	$	98		$	1,814
Net income					111									3			114
Other comprehensive loss											(26		)	(12		)	(38		)
Common stock dividends					(15		)										(15		)
Distributions to noncontrolling interests														(2		)	(2		)
Stock compensation			5														5
Balance, September 30, 2019	$	2	$	2,381	$	552		$	(150	)	$	(994	)	$	87		$	1,878
2018
Balance, June 30, 2018	$	2	$	2,356	$	290		$	(118	)	$	(1,385	)	$	106		$	1,251
Net income					95									1			96
Other comprehensive income (loss)											6			(1		)	5
Common stock dividends					(14		)										(14		)
Distributions to noncontrolling interests														(3		)	(3		)
Purchase of redeemable noncontrolling interests			2														2
Contribution from noncontrolling interest														22			22
Stock compensation			6														6
Stock withheld for employee taxes								(1		)							(1		)
Balance, September 30, 2018	$	2	$	2,364	$	371		$	(119	)	$	(1,379	)	$	125		$	1,364

	Nine Months Ended September 30,
2019	Common Stock		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Compre-hensive Loss			Non-controlling Interests			Total Equity
Balance, December 31, 2018	$	2	$	2,368		$	456		$	(119	)	$	(1,362	)	$	97		$	1,442
Adoption of ASU 2016-02 leases, January 1, 2019						(1		)										(1		)
Net income						141									9			150
Other comprehensive income (loss)												368			(13		)	355
Common stock dividends						(44		)										(44		)
Distributions to noncontrolling interests															(14		)	(14		)
Increase from business combination															8			8
Common stock share repurchases									(25		)							(25		)
Stock compensation			13															13
Stock withheld for employee taxes									(6		)							(6		)
Balance, September 30, 2019	$	2	$	2,381		$	552		$	(150	)	$	(994	)	$	87		$	1,878
2018
Balance, December 31, 2017	$	2	$	2,354		$	86		$	(87	)	$	(1,342	)	$	101		$	1,114
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018						2						(2		)				—
Net income						327									6			333
Other comprehensive loss												(35		)	(6		)	(41		)
Common stock dividends						(44		)										(44		)
Distributions to noncontrolling interests															(7		)	(7		)
Purchase of noncontrolling interests			(9		)										9			—
Purchase of redeemable noncontrolling interests			2															2
Contribution from noncontrolling interest															22			22
Common stock share repurchases									(25		)							(25		)
Stock compensation			17															17
Stock withheld for employee taxes									(7		)							(7		)
Balance, September 30, 2018	$	2	$	2,364		$	371		$	(119	)	$	(1,379	)	$	125		$	1,364

Changes in Each Component of Accumulated Other Comprehensive Income of the Parent [Table Text Block]

Changes in each component of accumulated other comprehensive income (AOCI) of the parent —

	Parent Company Stockholders
	Foreign Currency Translation			Hedging			Investments		Defined Benefit Plans			Total
Balance, June 30, 2019	$	(694	)	$	(47	)	$	—	$	(227	)	$	(968	)
Other comprehensive income (loss):
Currency translation adjustments	(39		)									(39		)
Holding gains and losses				57								57
Reclassification of amount to net income (a)				(49		)						(49		)
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)									6			6
Tax expense									(1		)	(1		)
Other comprehensive income (loss)	(39		)	8			—		5			(26		)
Balance, September 30, 2019	$	(733	)	$	(39	)	$	—	$	(222	)	$	(994	)
Balance, June 30, 2018	$	(710	)	$	(78	)	$	—	$	(597	)	$	(1,385	)
Other comprehensive income (loss):
Currency translation adjustments	(15		)									(15		)
Holding loss on net investment hedge	(3		)									(3		)
Holding gains and losses				9								9
Reclassification of amount to net income (a)				(7		)						(7		)
Actuarial gain on census update									18			18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)									9			9
Tax (expense) benefit				1					(6		)	(5		)
Other comprehensive income (loss)	(18		)	3			—		21			6
Balance, September 30, 2018	$	(728	)	$	(75	)	$	—	$	(576	)	$	(1,379	)

	Parent Company Stockholders
	Foreign Currency Translation			Hedging			Investments			Defined Benefit Plans			Total
Balance, December 31, 2018	$	(721	)	$	(54	)	$	—		$	(587	)	$	(1,362	)
Other comprehensive income (loss):
Currency translation adjustments	(12		)										(12		)
Holding gains and losses				77									77
Reclassification of amount to net income (a)				(62		)							(62		)
Net actuarial gain										104			104
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)										282			282
Tax expense										(21		)	(21		)
Other comprehensive income	(12		)	15			—			365			368
Balance, September 30, 2019	$	(733	)	$	(39	)	$	—		$	(222	)	$	(994	)
Balance, December 31, 2017	$	(670	)	$	(64	)	$	2		$	(610	)	$	(1,342	)
Other comprehensive income (loss):
Currency translation adjustments	(55		)										(55		)
Holding loss on net investment hedge	(3		)										(3		)
Holding gains and losses				29									29
Reclassification of amount to net income (a)				(42		)							(42		)
Actuarial gain on census update										18			18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)										26			26
Tax (expense) benefit				2						(10		)	(8		)
Other comprehensive income (loss)	(58		)	(11		)	—			34			(35		)
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018							(2		)				(2		)
Balance, September 30, 2018	$	(728	)	$	(75	)	$	—		$	(576	)	$	(1,379	)

(a) Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments treated as cash flow hedges are reclassified from AOCI into the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. See Note 15 for additional details.

(b) See Note 12 for additional details.

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill by Segment [Table Text Block]

Changes in the carrying amount of goodwill by segment — 

	Light Vehicle		Commercial Vehicle		Off-Highway			Power Technologies		Total
Balance, December 31, 2018	$	3	$	150	$	105		$	6	$	264
Acquisitions			85		191					276
Currency impact					(10		)			(10		)
Balance, September 30, 2019	$	3	$	235	$	286		$	6	$	530

Components of Other (Finite-Lived) Intangible Assets [Table Text Block]

Components of other intangible assets — 

		September 30, 2019							December 31, 2018
	Weighted Average Useful Life (years)	Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount
Amortizable intangible assets
Core technology	8	$	131	$	(91	)	$	40	$	107	$	(89	)	$	18
Trademarks and trade names	13	30		(6		)	24		16		(4		)	12
Customer relationships	9	493		(400		)	93		460		(400		)	60
Non-amortizable intangible assets
Trademarks and trade names		75					75		74					74
Used in research and development activities							—		20		(20		)	—
		$	729	$	(497	)	$	232	$	677	$	(513	)	$	164

Components of Other (Indefinite-Lived) Intangible Assets [Table Text Block]

Components of other intangible assets — 

		September 30, 2019							December 31, 2018
	Weighted Average Useful Life (years)	Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount
Amortizable intangible assets
Core technology	8	$	131	$	(91	)	$	40	$	107	$	(89	)	$	18
Trademarks and trade names	13	30		(6		)	24		16		(4		)	12
Customer relationships	9	493		(400		)	93		460		(400		)	60
Non-amortizable intangible assets
Trademarks and trade names		75					75		74					74
Used in research and development activities							—		20		(20		)	—
		$	729	$	(497	)	$	232	$	677	$	(513	)	$	164

Amortization Expense Related to Amortizable Intangible Assets [Table Text Block]

Amortization expense related to amortizable intangible assets — 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Charged to cost of sales	$	2	$	1	$	4	$	2
Charged to amortization of intangibles	2		2		8		6
Total amortization	$	4	$	3	$	12	$	8

Estimated Aggregate Pre-tax Amortization Expense Related to Intangible Assets [Table Text Block]

The following table provides the estimated aggregate pre-tax amortization expense related to intangible assets for each of the next five years based on September 30, 2019 exchange rates. Actual amounts may differ from these estimates due to such factors as currency translation, customer turnover, impairments, additional intangible asset acquisitions and other events.

	Remainder of 2019		2020		2021		2022		2023
Amortization expense	$	4	$	16	$	16	$	16	$	16

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Acquisitions - Pro Forma Information (Details) - ODS [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue	$ 2,164	$ 2,179	$ 6,778	$ 6,825
Business Acquisition, Pro Forma Net Income (Loss)	$ 115	$ 97	$ 182	$ 301

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Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Sep. 30, 2012
Net carrying amounts of intangible assets, other than goodwill	$ 232	$ 164
Light Vehicle Segment [Member]
Net carrying amounts of intangible assets, other than goodwill	25
Commercial Vehicle Segment [Member]
Net carrying amounts of intangible assets, other than goodwill	53
Off-Highway Segment [Member]
Net carrying amounts of intangible assets, other than goodwill	146
Power Technologies Segment [Member]
Net carrying amounts of intangible assets, other than goodwill	8
Used In Research And Development [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross		$ 20	$ 20	$ 20

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Restructuring of Operations - Accrued Restructuring Costs and Activity (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Jan. 01, 2019	Sep. 30, 2019	Sep. 30, 2019
Restructuring Reserve [Roll Forward]
Beginning balance	$ 29	$ 23	$ 29
Charges to restructuring		7	25
Adjustments of accruals		(2)	(2)
Cash payments		(12)	(32)
Lease cease-use reclassification	4		(4)
Ending balance		16	16
Employee Termination Benefits [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	25	23	25
Charges to restructuring		3	18
Adjustments of accruals		(2)	(2)
Cash payments		(9)	(26)
Ending balance		15	15
Exit Costs [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	$ 4	0	4
Charges to restructuring		4	7
Adjustments of accruals
Cash payments		(3)	(6)
Lease cease-use reclassification			(4)
Ending balance		$ 1	$ 1

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Fair Value Measurements and Derivatives - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Carrying Value		$ 2,386	$ 1,793
Fair Value		2,436	1,730
Other indebtedness [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Carrying Value		63	28
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Senior Notes Total [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Carrying Value		1,500	1,500
Fair Value		1,553	1,442
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Term Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Carrying Value		823	265
Fair Value		825	265
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other indebtedness [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Carrying Value	[1]	63	28
Fair Value		$ 58	$ 23

[1] * The carrying value includes the unamortized portion of a fair value adjustment related to a terminated interest rate swap at both dates.

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Stock Compensation - Additional Information (Details) shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($) perf_measure	Sep. 30, 2019 USD ($) perf_measure	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) perf_measure shares	Sep. 30, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of performance measures | perf_measure	2	2		2
Cash paid to settle RSUs				$ 2
Stock compensation expense		$ 5	$ 4	15	$ 13
Total unrecognized compensation cost related to nonvested awards granted and expected to vest	$ 27	$ 27		$ 27
Weighted-average period in which the total unrecognized compensation cost is expected to be recognized	1 year 10 months 24 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in period | shares				0.7
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in period | shares				0.2

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Redeemable Noncontrolling Interests - Reconciliation of Changes in Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance, beginning of period	$ 105	$ 149	$ 100	$ 47
Initial fair value of redeemable noncontrolling interests of acquired businesses				102
Purchase of redeemable noncontrolling interest		(46)		(46)
Sale of redeemable noncontrolling interest	64		64
Cash contributions from redeemable noncontrolling interests	2		4
Net income (loss) attributable to redeemable noncontrolling interests	(2)		(3)	1
Other comprehensive income (loss) attributable to redeemable noncontrolling interests	5		9	(1)
Balance, end of period	$ 174	$ 103	$ 174	$ 103

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Financing Agreements - Additional Information (Details) - USD ($)				9 Months Ended
	Sep. 30, 2020	Aug. 30, 2019	Feb. 28, 2019	Sep. 30, 2019
Term A Facility [Member]
Debt Instrument [Line Items]
Current aggregate facility			$ 500,000,000
Net proceeds			225,000,000
Periodic installments			8,000,000
Interest rate at period end				3.544%
Term B Facility [Member]
Debt Instrument [Line Items]
Current aggregate facility			450,000,000
Net proceeds			$ 450,000,000
Periodic payments as a percentage of the aggregate principal advances			0.25%
Interest rate at period end				4.294%
Term Facility [Member]
Debt Instrument [Line Items]
Financing costs				$ 13,000,000
Revolving Facility [Member]
Debt Instrument [Line Items]
Current aggregate facility		$ 1,000,000,000	$ 750,000,000
Net proceeds		$ 100,000,000
Financing costs				$ 4,000,000
Interest rate at period end				3.544%
Fronting fee rate				0.125%
Amount outstanding				$ 100,000,000
Utilized for letters of credit				21,000,000
Available borrowing capacity				879,000,000
Revolving Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Amount that may be applied to letters of credit				$ 275,000,000
Base Rate [Member] | Term B Facility [Member]
Debt Instrument [Line Items]
Margin rate				1.25%
Eurodollar Rate [Member] | Term B Facility [Member]
Debt Instrument [Line Items]
Margin rate				2.25%
Forecast [Member] | Term A Facility [Member]
Debt Instrument [Line Items]
Periodic installments	$ 7,000,000

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Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leases

Our global lease portfolio represents leases of real estate, including manufacturing, assembly and office facilities, while the remainder represents leases of personal property, including manufacturing, material handling and IT equipment. Leases with an

initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Short-term lease costs were insignificant in the nine months ended September 30, 2019. We account for lease components separately from the non-lease components of each lease arrangement.

Our leases generally have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 7 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides a summary of the location and amounts related to finance leases recognized in the consolidated balance sheet.

	Classification	September 30, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	42
Finance lease liabilities	Current portion of long-term debt	5
Finance lease liabilities	Long-term debt	25

Components of lease expense —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	13	$	37
Finance lease cost:
Amortization of right-of-use assets	$	1	$	2
Interest on lease liabilities	1		1
Total finance lease cost	$	2	$	3

Supplemental cash flow information related to leases —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12	$	37
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	1		3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3	$	16
Finance leases	1		13

Supplemental balance sheet information related to leases —

	September 30, 2019
Weighted-average remaining lease term (years):
Operating leases	6
Finance leases	9
Weighted-average discount rate:
Operating leases	6.0	%
Finance leases	4.0	%

Maturities —

	Operating Leases		Finance Leases
Remainder of 2019	$	13	$	1
2020	47		6
2021	39		6
2022	29		5
2023	22		3
Thereafter	58		14
Total lease payments	208		35
Less: interest	31		5
Present value of lease liabilities	$	177	$	30

As of September 30, 2019 we have operating lease payments that have not yet commenced of approximately $8. This lease is expected to commence in December 2019.

Disclosures related to periods prior to adoption of ASU 2016-02 —

Cash obligations under future minimum rental commitments under operating leases as of December 31, 2018 are shown in the table below. Operating lease commitments are primarily related to facilities.

	2019		2020		2021		2022		2023		Thereafter		Total
Lease commitments	$	57	$	41	$	35	$	27	$	21	$	64	$	245

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Stock Compensation

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Stock Compensation [Text Block]

Stock Compensation

The Compensation Committee of our Board of Directors approved the grant of RSUs and performance share units (PSUs) shown in the table below during 2019. 

	Granted (In millions)	Grant Date Fair Value*
RSUs	1.0	$	17.12
PSUs	0.4	$	16.17

* Weighted-average per share

We calculated the fair value of the RSUs at grant date based on the closing market price of our common stock at the date of grant. The number of PSUs that ultimately vest is contingent on achieving specified return on invested capital targets and specified margin targets, with an even distribution between the two targets. We estimated the fair value of the PSUs at grant date based on the closing market price of our common stock at the date of grant adjusted for the value of assumed dividends over the period because the awards are not dividend protected.

We paid $2 of cash to settle RSUs. We issued 0.7 million and 0.2 million shares of common stock based on the vesting of RSUs and PSUs during 2019. We recognized stock compensation expense of $5 and $4 during the third quarters of 2019 and

2018 and $15 and $13 during the respective year-to-date periods. At September 30, 2019, the total unrecognized compensation cost related to the nonvested awards granted and expected to vest was $27. This cost is expected to be recognized over a weighted-average period of 1.9 years.

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Segments - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019 operating_segment
Segment Reporting [Abstract]
Number of Operating Segments	4

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Equity Affiliates - Principal Components of Investments in Equity Affiliates (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Investments in equity affiliates	$ 170
Investments in affiliates carried at cost	2
Investments in affiliates	$ 172	$ 208
Dongfeng Dana Axle Co., Ltd. (DDAC) [Member]
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	50.00%
Investments in equity affiliates	$ 90
Bendix Spicer Foundation Brake, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	20.00%
Investments in equity affiliates	$ 51
Axles India Limited [Member]
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	48.00%
Investments in equity affiliates	$ 10
Ashwoods Innovations Ltd. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	58.00%
Investments in equity affiliates	$ 7
Taiway Ltd. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	28.00%
Investments in equity affiliates	$ 5
All others as a group [Member]
Schedule of Equity Method Investments [Line Items]
Investments in equity affiliates	$ 7

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Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Summary of Location and Amounts Related to Finance Leases [Table Text Block]

The following table provides a summary of the location and amounts related to finance leases recognized in the consolidated balance sheet.

	Classification	September 30, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	42
Finance lease liabilities	Current portion of long-term debt	5
Finance lease liabilities	Long-term debt	25

Components of Lease Expense [Table Text Block]

Components of lease expense —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	13	$	37
Finance lease cost:
Amortization of right-of-use assets	$	1	$	2
Interest on lease liabilities	1		1
Total finance lease cost	$	2	$	3

Supplemental Cash Flow Information Related to Leases [Table Text Block]

Supplemental cash flow information related to leases —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12	$	37
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	1		3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3	$	16
Finance leases	1		13

Supplemental Balance Sheet Information Related To Leases [Table Text Block]

Supplemental balance sheet information related to leases —

	September 30, 2019
Weighted-average remaining lease term (years):
Operating leases	6
Finance leases	9
Weighted-average discount rate:
Operating leases	6.0	%
Finance leases	4.0	%

Maturities of Operating Leases [Table Text Block]

Maturities —

	Operating Leases		Finance Leases
Remainder of 2019	$	13	$	1
2020	47		6
2021	39		6
2022	29		5
2023	22		3
Thereafter	58		14
Total lease payments	208		35
Less: interest	31		5
Present value of lease liabilities	$	177	$	30

Maturities of Finance Leases [Table Text Block]

Maturities —

	Operating Leases		Finance Leases
Remainder of 2019	$	13	$	1
2020	47		6
2021	39		6
2022	29		5
2023	22		3
Thereafter	58		14
Total lease payments	208		35
Less: interest	31		5
Present value of lease liabilities	$	177	$	30

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Cash obligations under future minimum rental commitments under operating leases as of December 31, 2018 are shown in the table below. Operating lease commitments are primarily related to facilities.

	2019		2020		2021		2022		2023		Thereafter		Total
Lease commitments	$	57	$	41	$	35	$	27	$	21	$	64	$	245

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The purchase consideration and the related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Total purchase consideration	$	88
Accounts receivable - Trade	4
Accounts receivable - Other	1
Inventories	8
Goodwill	68
Intangibles	24
Other noncurrent assets	1
Property, plant and equipment	5
Short-term debt	(8		)
Accounts payable	(6		)
Accrued payroll and employee benefits	(1		)
Other accrued liabilities	(1		)
Other noncurrent liabilities	(7		)
Total purchase consideration allocation	$	88

The purchase consideration and the related allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Total purchase consideration	$	125
Cash and cash equivalents	$	3
Accounts receivable - Trade	3
Accounts receivable - Other	1
Inventories	4
Goodwill	148
Intangibles	24
Investments in affiliates	49
Property, plant and equipment	5
Accounts payable	(2		)
Accrued payroll and employee benefits	(1		)
Other accrued liabilities	(7		)
Redeemable noncontrolling interest	(102		)
Total purchase consideration allocation	$	125

The purchase consideration and related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Purchase consideration paid at closing	$	626
Less purchase consideration to be recovered for indemnified matters	(4		)
Total purchase consideration	$	622
Cash and cash equivalents	$	76
Accounts receivable - Trade	150
Accounts receivable - Other	15
Inventories	190
Other current assets	15
Goodwill	123
Intangibles	58
Deferred tax assets	51
Other noncurrent assets	5
Investments in affiliates	7
Property, plant and equipment	329
Current portion of long-term debt	(2		)
Accounts payable	(151		)
Accrued payroll and employee benefits	(35		)
Other accrued liabilities	(48		)
Long-term debt	(8		)
Pension and postretirement obligations	(48		)
Other noncurrent liabilities	(97		)
Noncontrolling interests	(8		)
Total purchase consideration allocation	$	622

The purchase consideration and related provisional allocation to the acquisition date fair values of the assets acquired and liabilities assumed are presented in the following table:

Cash consideration	$	50
Fair value of previously held equity method investment	45
Total purchase consideration	$	95
Cash and cash equivalents	$	2
Accounts receivable - Trade	17
Inventories	8
Goodwill	73
Property, plant and equipment	2
Accounts payable	(4		)
Other accrued liabilities	(3		)
Total purchase consideration allocation	$	95

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro forma information has been prepared as if the ODS acquisition and the related debt financing had occurred on January 1, 2018.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net sales	$	2,164	$	2,179	$	6,778	$	6,825
Net income	$	115	$	97	$	182	$	301

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Stock Compensation (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Granted Awards Activity [Table Text Block]

The Compensation Committee of our Board of Directors approved the grant of RSUs and performance share units (PSUs) shown in the table below during 2019. 

	Granted (In millions)	Grant Date Fair Value*
RSUs	1.0	$	17.12
PSUs	0.4	$	16.17

* Weighted-average per share

XML

Restructuring of Operations - Cost to Complete (Details) - USD ($) $ in Millions	9 Months Ended	102 Months Ended	111 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2019
Commercial Vehicle Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs incurred	$ 4	$ 35	$ 39
Future Cost to Complete	5		5
Off-Highway Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs incurred	1
Future Cost to Complete	$ 1		$ 1

XML

Disposal Groups and Divestitures - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended			9 Months Ended		12 Months Ended
	Jul. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017
Loss on disposal group held for sale					$ 3,000,000		$ 3,000,000	$ (27,000,000)
Proceeds from sale of subsidiary	$ 2,000,000					$ 1,000,000
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Brazil Suspension Components Business [Member]
Consideration		$ 0						0
Contribution obligation		10,000,000						$ 10,000,000
Loss on disposal group held for sale		$ (27,000,000)

XML

Goodwill and Other Intangible Assets - Amortization Expense Related to Amortizable Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Charged to cost of sales	$ 2	$ 1	$ 4	$ 2
Charged to amortization of intangibles	2	2	8	6
Amortization	$ 4	$ 3	$ 12	$ 8

XML

Fair Value Measurements and Derivatives - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	$ 20	$ 21
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Currency contracts asset value	1	2
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Currency contracts liability value	1	1
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Currency contracts asset value	8	6
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Currency contracts liability value	6	5
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Interest rate contracts	5
Currency Swap [Member] | Cash Flow Hedging [Member] | Other Noncurrent Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Currency contracts liability value	$ 42	$ 118

XML

Stock Compensation - Granted Awards Activity (Details) shares in Millions	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options - Granted | shares	1.0
Other than options - Weighted Average Per Share Grant Date Fair Value | $ / shares	$ 17.12
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options - Granted | shares	0.4
Other than options - Weighted Average Per Share Grant Date Fair Value | $ / shares	$ 16.17

XML

Redeemable Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Millions				3 Months Ended		9 Months Ended
	Jul. 29, 2019	Aug. 08, 2018	Jun. 22, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jul. 28, 2019	Feb. 01, 2017
Business Acquisition [Line Items]
Initial fair value of redeemable noncontrolling interests of acquired businesses							$ 102
Recognition of additional redeemable noncontrolling interest				$ 64		64
Payments to acquire redeemable noncontrolling interests							$ 43
TM4 [Member]
Business Acquisition [Line Items]
Initial fair value of redeemable noncontrolling interests of acquired businesses			$ 102
SME And Prestolite E-Propulsion Systems Limited (PEPS) [Member]
Business Acquisition [Line Items]
Recognition of additional redeemable noncontrolling interest	$ 64
BFP and BPT [Member]
Business Acquisition [Line Items]
Payments to acquire redeemable noncontrolling interests		$ 43
Received in settlement of all pending and future claims		$ 10
Hydro-Quebec [Member] | TM4 [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners			45.00%
Hydro-Quebec [Member] | SME [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners	45.00%
Hydro-Quebec [Member] | Prestolite E-Propulsion Systems Limited (PEPS) [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners	45.00%							22.50%
Ownership percentage increase by noncontrolling owners	22.50%
Brevini Group S.p.A. [Member] | BFP and BPT [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners									20.00%

XML

Financing Agreements - Long-term Debt (Details) - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Principal		$ 2,386	$ 1,793
Debt issuance costs		(27)	(18)
Long-term Debt and Lease Obligation, Including Current Maturities		2,359	1,775
Less: Current portion of long-term debt		13	20
Long-term debt, less debt issuance costs		$ 2,346	$ 1,755
Senior Notes Due September 2023 [Member]
Debt Instrument [Line Items]
Interest rate		6.00%	6.00%
Principal		$ 300	$ 300
Senior Notes Due December 2024 [Member]
Debt Instrument [Line Items]
Interest rate		5.50%	5.50%
Principal		$ 425	$ 425
Senior Notes Due April 2025 [Member]
Debt Instrument [Line Items]
Interest rate	[1]	5.75%	5.75%
Principal		$ 400	$ 400
Senior Notes Due April 2025 [Member] | Cash Flow Hedging [Member]
Debt Instrument [Line Items]
Interest rate		5.75%
Derivative, fixed interest rate		3.85%
Senior Notes Due June 2026 [Member]
Debt Instrument [Line Items]
Interest rate	[1]	6.50%	6.50%
Principal		$ 375	$ 375
Senior Notes Due June 2026 [Member] | Cash Flow Hedging [Member]
Debt Instrument [Line Items]
Interest rate		6.50%
Derivative, fixed interest rate		5.14%
Term A Facility [Member]
Debt Instrument [Line Items]
Principal		$ 474	265
Term B Facility [Member]
Debt Instrument [Line Items]
Principal		349
Other indebtedness [Member]
Debt Instrument [Line Items]
Principal		$ 63	$ 28

[1] In conjunction with the issuance of the April 2025 Notes we entered into 8-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of 3.850%. In conjunction with the issuance of the June 2026 Notes we entered into 10-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the June 2026 Notes to euro-denominated debt at a fixed rate of 5.140%. See Note 15 for additional information.

XML

Other Expense, Net (Tables)

9 Months Ended

Sep. 30, 2019

Other Income and Expenses [Abstract]

Schedule of Other Income and Other Expenses, Net [Table Text Block]

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Non-service cost components of pension and OPEB costs	$	(4	)	$	(3	)	$	(19	)	$	(10	)
Government grants and incentives	3			3			11			8
Foreign exchange loss	(1		)	(3		)	(11		)	(7		)
Strategic transaction expenses, net of transaction breakup fee income	(8		)	(6		)	(32		)	(13		)
Non-income tax legal judgment							6
Other, net	2						14			3
Other expense, net	$	(8	)	$	(9	)	$	(31	)	$	(19	)

XML

Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Marketable Securities [Table Text Block]

	September 30, 2019						December 31, 2018
	Cost		Unrealized Gain (Loss)		Fair Value		Cost		Unrealized Gain (Loss)		Fair Value
U.S. government securities	$	—	$	—	$	—	$	2	$	—	$	2
Corporate securities							4				4
Certificates of deposit	20				20		15				15
Total marketable securities	$	20	$	—	$	20	$	21	$	—	$	21

XML

Acquisitions - Additional Information (Details) € in Millions, $ in Millions									1 Months Ended	3 Months Ended				6 Months Ended	9 Months Ended		12 Months Ended
	Aug. 26, 2019 USD ($)	Jul. 29, 2019 USD ($)	Jun. 06, 2019 USD ($)	Feb. 28, 2019 USD ($) employee Facility	Jan. 11, 2019 USD ($)	Aug. 08, 2018 USD ($)	Jun. 22, 2018 USD ($)	Feb. 01, 2017 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Jul. 28, 2019	Dec. 31, 2017 EUR (€)
Business Acquisition [Line Items]
Consideration received from sale of interest to noncontrolling shareholder		$ 65
Proceeds from sale of interest to noncontrolling shareholder		53													$ 53
Note receivable related to sale of interest to noncontrolling shareholder		$ 12
Note receivable term		5 years
Interest rate on note receivable		5.00%
Gain recognized on remeasurement of previously held equity method investment											$ 2
Purchase price, cash consideration															666	$ 151
Strategic transaction expenses										$ 8		$ 6			32	13
Net sales										2,164		$ 1,978			6,633	6,170
Payments to acquire redeemable noncontrolling interests																$ 43
Core Technology [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets										131				$ 107	131		$ 107
Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets										30				16	30		16
Customer Relationships [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets										$ 493				460	$ 493		460
Prestolite E-Propulsion Systems Limited (PEPS) [Member]
Business Acquisition [Line Items]
Ownership interest in joint venture							50.00%
Nordresa [Member]
Business Acquisition [Line Items]
Percent of ownership interest acquired	100.00%
Total purchase consideration	$ 12
Prestolite E-Propulsion Systems Limited (PEPS) [Member]
Business Acquisition [Line Items]
Percent of ownership interest acquired			50.00%							100.00%					100.00%
Total purchase consideration			$ 95
Purchase price, cash consideration			$ 50
Prestolite E-Propulsion Systems Limited (PEPS) [Member] | Hydro-Quebec [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners		45.00%																22.50%
ODS [Member]
Business Acquisition [Line Items]
Percent of ownership interest acquired				100.00%
Total purchase consideration				$ 622
Purchase price, cash consideration				$ 626
Number of employees | employee				5,600
Number of facilities | Facility				11
Strategic transaction expenses															$ 13
Net sales										$ 179					465
Purchase price adjustments				$ (4)
ODS [Member] | Minimum [Member]
Business Acquisition [Line Items]
Fixed asset, useful life				3 years
ODS [Member] | Maximum [Member]
Business Acquisition [Line Items]
Fixed asset, useful life				25 years
ODS [Member] | Core Technology [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets				$ 11
Acquired finite-lived intangible assets, weighted average useful life				7 years
ODS [Member] | Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets				$ 13
Acquired finite-lived intangible assets, weighted average useful life				10 years
ODS [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets				$ 34
Acquired finite-lived intangible assets, weighted average useful life				12 years
ODS [Member] | CHINA
Business Acquisition [Line Items]
Number of facilities | Facility				1
SME [Member]
Business Acquisition [Line Items]
Percent of ownership interest acquired					100.00%
Total purchase consideration					$ 88
Purchase price, cash consideration					62
Net sales										$ 4					$ 16
Notes Issued					$ 26
SME [Member] | Minimum [Member]
Business Acquisition [Line Items]
Fixed asset, useful life					1 year
SME [Member] | Maximum [Member]
Business Acquisition [Line Items]
Fixed asset, useful life					20 years
SME [Member] | Core Technology [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets					$ 15
Acquired finite-lived intangible assets, weighted average useful life					12 years
SME [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets					$ 9
Acquired finite-lived intangible assets, weighted average useful life					10 years
SME [Member] | Note Payable SME [Member]
Business Acquisition [Line Items]
Notes term					5 years
Interest rate					5.00%
SME [Member] | Hydro-Quebec [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners		45.00%
TM4 [Member]
Business Acquisition [Line Items]
Percent of ownership interest acquired							55.00%
Total purchase consideration							$ 125
Purchase price, cash consideration							$ 125
Strategic transaction expenses																	$ 5
Net sales														$ 11
TM4 [Member] | Minimum [Member]
Business Acquisition [Line Items]
Fixed asset, useful life							5 years
TM4 [Member] | Maximum [Member]
Business Acquisition [Line Items]
Fixed asset, useful life							6 years
TM4 [Member] | Core Technology [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets							$ 14
Acquired finite-lived intangible assets, weighted average useful life							10 years
TM4 [Member] | Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Indefinite-lived intangible assets							$ 10
TM4 [Member] | Hydro-Quebec [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners							45.00%
BFP and BPT [Member]
Business Acquisition [Line Items]
Percent of ownership interest acquired								80.00%
Purchase price, cash consideration								$ 181
Purchase price adjustments									$ 9
Agreement to purchase certain real estate | €																			€ 25
Net cash payment													$ 20
Payments to acquire redeemable noncontrolling interests						$ 43
Received in settlement of all pending and future claims						$ 10
BFP and BPT [Member] | Brevini Group S.p.A. [Member]
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners								20.00%

XML

Fair Value Measurements and Derivatives - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Other Expense, Net [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in income on foreign currency derivatives not designated as hedging instruments	$ (3)	$ (15)

XML

Consolidated Balance Sheet (Parenthetical) (Unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Trade, allowance for doubtful accounts	$ 8	$ 9
Deferred debt issuance costs	$ 27	$ 18
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	450,000,000	450,000,000
Common stock, outstanding	143,923,921	144,663,403
Treasury stock, shares	10,103,374	8,342,185

XML

Leases - Summary of Location and Amounts Related to Finance Leases (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
Finance lease right-of-use assets, Property, plant and equipment, net	$ 42
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentMember
Finance lease liabilities, Current portion of long-term debt	$ 5
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherCurrentLiabilitiesMember
Finance lease liabilities, Long-term debt	$ 25
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtMember

XML

Leases - Maturities (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
Operating Leases, Remainder of 2019	$ 13
Operating Leases, 2020	47
Operating Leases, 2021	39
Operating Leases, 2022	29
Operating Leases, 2023	22
Operating Leases, Thereafter	58
Operating Leases, Total lease payments	208
Operating Leases, Less: interest	31
Operating Leases, Present value of lease liabilities	177
Finance Leases, Remainder of 2019	1
Finance Leases, 2020	6
Finance Leases, 2021	6
Finance Leases, 2022	5
Finance Leases, 2023	3
Finance Leases, Thereafter	14
Finance Leases, Total lease payments	35
Finance Leases, Less: interest	5
Finance Leases, Present value of lease liabilities	$ 30

XML

Other Expense, Net - (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Income and Expenses [Abstract]
Non-service cost components of pension and OPEB costs	$ (4)	$ (3)	$ (19)	$ (10)
Government grants and incentives	3	3	11	8
Foreign exchange loss	(1)	(3)	(11)	(7)
Strategic transaction expenses, net of transaction breakup fee income	(8)	(6)	(32)	(13)
Non-income tax legal judgment			6
Other, net	2		14	3
Other expense, net	$ (8)	$ (9)	$ (31)	$ (19)

XML

Cover - shares	9 Months Ended
	Sep. 30, 2019	Oct. 18, 2019
Cover page.
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity File Number	1-1063
Entity Registrant Name	Dana Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1531856
Entity Address, Address Line One	3939 Technology Drive,
Entity Address, City or Town	Maumee,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43537
City Area Code	419
Local Phone Number	887-3000
Title of 12(b) Security	Common stock $0.01 par value
Trading Symbol	DAN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		143,923,921
Amendment Flag	false
Entity Central Index Key	0000026780
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false

XML

Disposal Groups and Divestitures

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups and Divestitures [Text Block]

Disposal Groups and DivestituresDisposal group held for sale — In December 2017, we entered into an agreement to divest our Brazil suspension components business (the disposal group) for no consideration to an unaffiliated company. The results of operations of the Brazil suspension components business were reported within our Commercial Vehicle operating segment. To effectuate the sale, Dana was obligated to contribute $10 of additional cash to the business prior to closing. We classified the disposal group as held for sale at December 31, 2017, recognizing a $27 loss to adjust the carrying value of the net assets to fair value and to recognize the liability for the additional cash required to be contributed to the business prior to closing. During the first quarter of 2018, we made the required cash contribution to the disposal group. After being unable to complete the transaction with the counterparty to the December 2017 agreement, we entered into an agreement with another third party in June 2018. The transaction with the new counterparty closed in July 2018 and we received cash proceeds of $2. We reversed $3 of the previously recognized $27 pre-tax loss, inclusive of the proceeds received in July 2018, during the second quarter of 2018.

XML

Organization and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation [Policy Text Block]

Basis of presentation — Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. These statements are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Form 10-K).

Recently Adopted Accounting Pronouncements [Policy Text Block]

Recently adopted accounting pronouncements

On January 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), using the modified retrospective approach and an application date of January 1, 2019. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting. This transition method resulted in the recognition of a right-of-use asset and a lease liability for virtually all leases at the application date with a cumulative-effect adjustment to retained earnings. Short-term leases of less than 12 months have not been recorded on the balance sheet.

We elected the package of practical expedients, which among other things, allowed us to carry forward the historical lease classification. We did not elect the practical expedient that allowed for hindsight to determine the lease term of existing leases. We separated the lease components from the non-lease components of each lease arrangement and, therefore, did not elect the practical expedient that would enable us to not separate them.

We also adopted the following standard during the first nine months of 2019, which did not have a material impact on our financial statements or financial statement disclosures:

Standard		Effective Date
2017-11	Earnings Per Share, Distinguishing Liabilities from Equity, Derivatives and Hedging – (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception	January 1, 2019

Recently Issued Accounting Pronouncements [Policy Text Block]

Recently issued accounting pronouncements

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This guidance allows for capitalization of implementation costs associated with certain cloud computing arrangements. This guidance becomes effective January 1, 2020 and early adoption is permitted. The guidance is to be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We do not expect the adoption of this guidance to impact our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance eliminated certain

disclosures about defined benefit plans, added new disclosures, and clarified other requirements. This guidance becomes effective January 1, 2020 and early adoption is permitted. There were no changes to interim disclosure requirements. Adoption of this guidance will not have a material effect on our annual financial statement disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The guidance removed or modified some disclosures while others were added. The removal and amendment of certain disclosures can be adopted immediately with retrospective application. The additional disclosure guidance becomes effective January 1, 2020. Adoption of this guidance will not have a material effect on our financial statement disclosures.

In January 2017, the FASB issued ASU 2017-04, Goodwill – Simplifying the Test for Goodwill Impairment, guidance that simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 of the goodwill impairment test. The new guidance quantifies goodwill impairment as the amount by which the carrying amount of a reporting unit, including goodwill, exceeds its fair value, with the impairment loss limited to the total amount of goodwill allocated to that reporting unit. This guidance becomes effective January 1, 2020 and will be applied on a prospective basis. Early adoption is permitted for impairment tests performed after January 1, 2017. We do not expect the adoption of this guidance to impact our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Credit Losses – Measurement of Credit Losses on Financial Instruments, new guidance for the accounting for credit losses on certain financial instruments. This guidance introduces a new approach to estimating credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. This guidance becomes effective January 1, 2020 and is not expected to have a material impact on our consolidated financial statements.

XML

Fair Value Measurements and Derivatives

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements and Derivatives [Text Block]

Fair Value Measurements and Derivatives

In measuring the fair value of our assets and liabilities, we use market data or assumptions that we believe market participants would use in pricing an asset or liability including assumptions about risk when appropriate. Our valuation techniques include a combination of observable and unobservable inputs.

Fair value measurements on a recurring basis — Assets and liabilities that are carried in our balance sheet at fair value are as follows:

			Fair Value
Category	Balance Sheet Location	Fair Value Level	September 30, 2019		December 31, 2018
Available-for-sale securities	Marketable securities	2	$	20	$	21
Currency forward contracts
Cash flow hedges	Accounts receivable - Other	2	8		6
Cash flow hedges	Other accrued liabilities	2	6		5
Undesignated	Accounts receivable - Other	2	1		2
Undesignated	Other accrued liabilities	2	1		1
Interest rate collars	Other accrued liabilities	2	5
Currency swaps
Cash flow hedges	Other noncurrent liabilities	2	42		118

Fair Value Level 1 assets and liabilities reflect quoted prices in active markets. Fair Value Level 2 assets and liabilities reflect the use of significant other observable inputs.

Fair value of financial instruments — The financial instruments that are not carried in our balance sheet at fair value are as follows:

		September 30, 2019				December 31, 2018
	Fair Value Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	2	$	1,500	$	1,553	$	1,500	$	1,442
Term Facility	2	823		825		265		265
Other indebtedness*	2	63		58		28		23
Total		$	2,386	$	2,436	$	1,793	$	1,730

* The carrying value includes the unamortized portion of a fair value adjustment related to a terminated interest rate swap at both dates.

Interest rate derivatives — Our portfolio of derivative financial instruments periodically includes interest rate swaps and interest rate collars designed to mitigate our interest rate risk. As of September 30, 2019, no fixed-to-floating interest rate swaps remain outstanding. However, a $5 fair value adjustment to the carrying amount of our December 2024 Notes, associated with a fixed-to-floating interest rate swap that had been executed but was subsequently terminated during 2015, remains deferred at September 30, 2019. This amount is being amortized as a reduction of interest expense through the period ending December 2024, the scheduled maturity date of the December 2024 Notes. The amount amortized as a reduction of interest expense was not material during the three months and nine months ended September 30, 2019. We have outstanding interest rate collars with a notional value of $425 that will mature in December 2021. For interest rate collars, no payments or receipts are exchanged unless interest rates rise or fall in excess of a predetermined ceiling or floor rate.

Foreign currency derivatives — Our foreign currency derivatives include forward contracts associated with forecasted transactions, primarily involving the purchases and sales of inventory through the next fifteen months, as well as currency swaps associated with certain recorded external notes payable and intercompany loans receivable and payable. Periodically, our foreign currency derivatives also include net investment hedges of certain of our investments in foreign operations.

We have executed fixed-to-fixed cross-currency swaps in conjunction with the issuance of certain notes to eliminate the variability in the functional-currency-equivalent cash flows due to changes in exchange rates associated with the forecasted principal and interest payments. All of the underlying designated financial instruments, and any subsequent replacement debt, have been designated as the hedged items in each respective cash flow hedge relationship, as shown in the table below. Designated as cash flow hedges of the forecasted principal and interest payments of the underlying designated financial instruments, or subsequent replacement debt, all of the swaps economically convert the underlying designated financial instruments into the functional currency of each respective holder. The impact of the interest rate differential between the inflow and outflow rates on all fixed-to-fixed cross-currency swaps is recognized during each period as a component of interest expense.

The following fixed-to-fixed cross-currency swaps were outstanding at September 30, 2019:

Underlying Financial Instrument						Derivative Financial Instrument
Description	Type	Face Amount		Rate		Designated Notional Amount		Traded Amount		Inflow Rate		Outflow Rate
June 2026 Notes	Payable	$	375	6.50	%	$	375	€	338	6.50	%	5.14	%
April 2025 Notes	Payable	$	400	5.75	%	$	400	€	371	5.75	%	3.85	%
Luxembourg Intercompany Notes	Receivable	€	281	3.91	%	€	281	$	300	6.00	%	3.91	%

All of the swaps are expected to be highly effective in offsetting the corresponding currency-based changes in cash outflows related to the underlying designated financial instruments. Based on our qualitative assessment that the critical terms of all of the underlying designated financial instruments and all of the associated swaps match and that all other required criteria have been met, we do not expect to incur any ineffectiveness. As effective cash flow hedges, changes in the fair value of the swaps will be recorded in OCI during each period. Additionally, to the extent the swaps remain effective, the appropriate portion of AOCI will be reclassified to earnings each period as an offset to the foreign exchange gain or loss resulting from the remeasurement of the underlying designated financial instruments. See Note 14 for additional information about the June 2026 Notes and the April 2025 Notes. To the extent the swaps are no longer effective, changes in their fair values will be recorded in earnings.

The total notional amount of outstanding foreign currency forward contracts, involving the exchange of various currencies, was $473 at September 30, 2019 and $1,007 at December 31, 2018. The total notional amount of outstanding foreign currency swaps, including the fixed-to-fixed cross-currency swaps, was $1,081 at September 30, 2019 and $1,097 at December 31, 2018.

The following currency derivatives were outstanding at September 30, 2019:

		Notional Amount (U.S. Dollar Equivalent)
Functional Currency	Traded Currency	Designated		Undesignated		Total		Maturity
U.S. dollar	Mexican peso, euro	$	145	$	8	$	153	Dec-20
Euro	U.S. dollar, Canadian dollar, Hungarian forint, British pound, Swiss franc, Indian rupee, Russian ruble, Chinese renminbi, Mexican peso, Australian dollar, Japanese yen	112		21		133		Jan-24
British pound	U.S. dollar, euro	1		2		3		Sep-20
Swedish krona	euro	3				3		Dec-19
South African rand	U.S. dollar, euro, Thai baht	7		4		11		Sep-20
Thai baht	U.S. dollar	13				13		Jun-20
Canadian dollar	U.S. dollar	17				17		Dec-20
Brazilian real	U.S. dollar, euro	51		19		70		Sep-20
Indian rupee	U.S. dollar, British pound, euro			61		61		Dec-20
Chinese renminbi	U.S. dollar, Canadian dollar, euro			7		7		Nov-19
Taiwan dollar	Chinese renminbi			2		2		Mar-20
Total forward contracts		349		124		473
U.S. dollar	euro	306				306		Sep-23
Euro	U.S. dollar	775				775		Jun-26
Total currency swaps		1,081		—		1,081
Total currency derivatives		$	1,430	$	124	$	1,554

Designated cash flow hedges — With respect to contracts designated as cash flow hedges, changes in fair value during the period in which the contracts remain outstanding are reported in OCI to the extent such contracts remain effective. Effectiveness is measured by using regression analysis to determine the degree of correlation between the change in the fair value of the derivative instrument and the change in the associated foreign currency exchange rates. Changes in fair value of contracts not designated as cash flow hedges or as net investment hedges are recognized in other expense, net in the period in

which the changes occur. Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments, including those that have been designated as cash flow hedges and those that have not been designated, are recognized in the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. Accordingly, amounts are potentially recorded in sales, cost of sales or, in certain circumstances, other expense, net.

The following table provides a summary of deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less:

	Deferred Gain (Loss) in AOCI
	September 30, 2019			December 31, 2018			Gain (loss) expected to be reclassified into income in one year or less
Forward Contracts	$	—		$	2		$	—
Collar	(5		)
Cross-Currency Swaps	(38		)	(60		)
Total	$	(43	)	$	(58	)	$	—

The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with cash flow hedging relationships:

	Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
	Three Months Ended September 30, 2019
Derivatives Designated as Cash Flow Hedges	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	2,164	$	1,882		$	8
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(2		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(47		)
	Nine Months Ended September 30, 2019
	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	6,633	$	5,725		$	31
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(7		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(55		)

	Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
	Three Months Ended September 30, 2018
Derivatives Designated as Cash Flow Hedges	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	1,978	$	1,692		$	9
(Gain) or loss on cash flow hedging relationships
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(7		)
	Nine Months Ended September 30, 2018
	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	6,170	$	5,269		$	19
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(2		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(40		)

The amounts reclassified from AOCI into income for the cross-currency swaps represent an offset to a foreign exchange loss on our foreign currency-denominated intercompany and external debt instruments.

Certain of our hedges of forecasted transactions have not formally been designated as cash flow hedges. As undesignated forward contracts, the changes in the fair value of such contracts are included in earnings for the duration of the outstanding forward contract. Any realized gain or loss on the settlement of such contracts is recognized in the same period and in the same line item in the consolidated statement of operations as the underlying transaction. The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with undesignated hedging relationships.

	Amount of Gain (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019			Location of Gain or (Loss) Recognized in Income
Foreign currency forward contracts	$	(3	)	$	(15	)	Other expense, net

During the first quarter of 2019 we settled the outstanding undesignated Swiss franc notional deal contingent forward related to the ODS acquisition for $21, resulting in a realized loss of $13 included in other expense, net in the first quarter of 2019.

Net investment hedges — We periodically designate derivative contracts or underlying non-derivative financial instruments as net investment hedges. With respect to contracts designated as net investment hedges, we apply the forward method, but for non-derivative financial instruments designated as net investment hedges, we apply the spot method. Under both methods, we report changes in fair value in the cumulative translation adjustment (CTA) component of OCI during the period in which the contracts remain outstanding to the extent such contracts and non-derivative financial instruments remain effective.

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Other Expense, Net

9 Months Ended

Sep. 30, 2019

Other Income and Expenses [Abstract]

Other Income and Other Expense, Net [Text Block]

Other Expense, Net 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Non-service cost components of pension and OPEB costs	$	(4	)	$	(3	)	$	(19	)	$	(10	)
Government grants and incentives	3			3			11			8
Foreign exchange loss	(1		)	(3		)	(11		)	(7		)
Strategic transaction expenses, net of transaction breakup fee income	(8		)	(6		)	(32		)	(13		)
Non-income tax legal judgment							6
Other, net	2						14			3
Other expense, net	$	(8	)	$	(9	)	$	(31	)	$	(19	)

Foreign exchange gains and losses on cross-currency intercompany loan balances that are not of a long-term investment nature are included above. Foreign exchange gains and losses on intercompany loans that are permanently invested are reported in OCI. Foreign exchange loss in 2019 included a loss on the undesignated Swiss franc notional deal contingent forward related to the ODS acquisition. See Note 15 for additional information.

Strategic transaction expenses relate primarily to costs incurred in connection with acquisition and divestiture related activities, including costs to complete the transaction and post-closing integration costs. Strategic transaction expenses in 2019 were primarily attributable to the acquisition of ODS. Strategic transaction expenses in 2018 were primarily attributable to our bid to acquire the driveline business of GKN plc. and our acquisition of TM4 and were partially offset by a $40 transaction breakup fee associated with the GKN plc. transaction. See Note 2 for additional information.

During the first quarter of 2019, we won a legal judgment regarding the methodology used to calculate PIS/COFINS tax in Brazil.

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Redeemable Noncontrolling Interests (Tables)

9 Months Ended

Sep. 30, 2019

Temporary Equity Disclosure [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

Reconciliation of changes in redeemable noncontrolling interests —

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance, beginning of period	$	105		$	149		$	100		$	47
Initial fair value of redeemable noncontrolling interests of acquired businesses										102
Purchase of redeemable noncontrolling interest				(46		)				(46		)
Sale of redeemable noncontrolling interest	64						64
Cash contributions from redeemable noncontrolling interests	2						4
Comprehensive income (loss) adjustments:
Net income (loss) attributable to redeemable noncontrolling     interests	(2		)				(3		)	1
Other comprehensive income (loss) attributable to redeemable noncontrolling interests	5						9			(1		)
Balance, end of period	$	174		$	103		$	174		$	103

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Restructuring of Operations (Tables)

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Accrued Restructuring Costs and Activity [Table Text Block]

Accrued restructuring costs and activity —

	Employee Termination Benefits			Exit Costs			Total
Balance, June 30, 2019	$	23		$	—		$	23
Charges to restructuring	3			4			7
Adjustments of accruals	(2		)				(2		)
Cash payments	(9		)	(3		)	(12		)
Balance, September 30, 2019	$	15		$	1		$	16
Balance, December 31, 2018	$	25		$	4		$	29
Charges to restructuring	18			7			25
Adjustments of accruals	(2		)				(2		)
Cash payments	(26		)	(6		)	(32		)
Lease cease-use reclassification				(4		)	(4		)
Balance, September 30, 2019	$	15		$	1		$	16

Cost to Complete [Table Text Block]

Cost to complete — The following table provides project-to-date and estimated future restructuring expenses for completion of our approved restructuring initiatives for our business segments at September 30, 2019.

	Expense Recognized						Future Cost to Complete
	Prior to 2019		2019		Total to Date
Commercial Vehicle	$	35	$	4	$	39	$	5
Off-Highway	—		1		1		1

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Restructuring of Operations

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring of Operations [Text Block]

Restructuring of Operations

Our restructuring activities have historically included rationalizing our operating footprint by consolidating facilities, positioning operations in lower cost locations and reducing overhead costs. In recent years our focus has been primarily headcount reduction initiatives to reduce operating costs, including actions taken at acquired businesses to rationalize cost structures and achieve operating synergies. Restructuring expense includes costs associated with current and previously announced actions and is comprised of contractual and noncontractual separation costs and exit costs, including certain operating costs of facilities that we are in the process of closing.

Restructuring charges of $5 in the third quarter of 2019 and $23 in the nine months ended September 30, 2019 were comprised of severance and benefit costs related to integration of recent acquisitions, headcount reductions across our operations and exit costs related to previously announced actions.

Restructuring expense of $9 in the third quarter of 2018 and $17 in the nine months ended September 30, 2018 included severance costs associated with the Voluntary Retirement Program for certain North American employees, headcount reductions in our Commercial Vehicle operations and corporate service functions in Brazil, integration of acquisitions and exit costs related to previously announced actions.

In accordance with the transition provisions of the new leasing standard, we reclassified $4 of previously accrued lease cease-use costs as an adjustment to the initial measurement of the related right-of-use operating lease asset.

Accrued restructuring costs and activity —

	Employee Termination Benefits			Exit Costs			Total
Balance, June 30, 2019	$	23		$	—		$	23
Charges to restructuring	3			4			7
Adjustments of accruals	(2		)				(2		)
Cash payments	(9		)	(3		)	(12		)
Balance, September 30, 2019	$	15		$	1		$	16
Balance, December 31, 2018	$	25		$	4		$	29
Charges to restructuring	18			7			25
Adjustments of accruals	(2		)				(2		)
Cash payments	(26		)	(6		)	(32		)
Lease cease-use reclassification				(4		)	(4		)
Balance, September 30, 2019	$	15		$	1		$	16

At September 30, 2019, the accrued employee termination benefits include costs to reduce approximately 200 employees to be completed over the next year.

Cost to complete — The following table provides project-to-date and estimated future restructuring expenses for completion of our approved restructuring initiatives for our business segments at September 30, 2019.

	Expense Recognized						Future Cost to Complete
	Prior to 2019		2019		Total to Date
Commercial Vehicle	$	35	$	4	$	39	$	5
Off-Highway	—		1		1		1

The future cost to complete includes estimated separation costs, primarily those associated with one-time benefit programs, and exit costs through 2021, equipment transfers and other costs which are required to be recognized as closures are finalized or as incurred during the closure.

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Redeemable Noncontrolling Interests

9 Months Ended

Sep. 30, 2019

Temporary Equity Disclosure [Abstract]

Redeemable Noncontrolling Interest Disclosure [Text Block]

Redeemable Noncontrolling Interests

In connection with the acquisition of a controlling financial interest in TM4 from Hydro-Québec on June 22, 2018, we recognized $102 for Hydro-Québec's 45% redeemable noncontrolling interest in TM4. On July 29, 2019, we broadened our relationship with Hydro-Québec, with Hydro-Québec acquiring an indirect 45% redeemable noncontrolling interest in SME and an additional indirect 22.5% redeemable noncontrolling interest in PEPS which resulted in recognition of additional redeemable noncontrolling interest of $64. The terms of the agreement provide Hydro-Québec with the right to put all, and not less than all, of its ownership interests in TM4, SME and PEPS to Dana at fair value any time after June 22, 2021. See Note 2 for additional information.

On August 8, 2018, we entered into an agreement to acquire Brevini's remaining 20% ownership interests in BFP and BPT and to settle all claims between the parties. We paid $43 to acquire Brevini's remaining ownership interests and received $10 in settlement of all pending and future claims. AOCI attributable to Brevini's redeemable noncontrolling interests was reclassified to AOCI of the parent company. The difference between the carrying value of Brevini's redeemable noncontrolling interests and the cash paid was recorded to additional paid-in capital of the parent company.

Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the redeemable noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values. Redeemable noncontrolling interest adjustments of redemption value are recorded in retained earnings.

Reconciliation of changes in redeemable noncontrolling interests —

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance, beginning of period	$	105		$	149		$	100		$	47
Initial fair value of redeemable noncontrolling interests of acquired businesses										102
Purchase of redeemable noncontrolling interest				(46		)				(46		)
Sale of redeemable noncontrolling interest	64						64
Cash contributions from redeemable noncontrolling interests	2						4
Comprehensive income (loss) adjustments:
Net income (loss) attributable to redeemable noncontrolling     interests	(2		)				(3		)	1
Other comprehensive income (loss) attributable to redeemable noncontrolling interests	5						9			(1		)
Balance, end of period	$	174		$	103		$	174		$	103

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Segments - Reconciliation of Segment EBITDA to Consolidated Net Income (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017
Segment Reporting [Abstract]
Segment EBITDA	$ 253		$ 243		$ 802	$ 748
Corporate expense and other items, net	(3)		(3)		(9)	(14)
Depreciation	(82)		(63)		(235)	(187)
Amortization	(4)		(3)		(12)	(8)
Non-service cost components of pension and OPEB costs	(4)		(3)		(19)	(10)
Pension settlement charge	(2)	$ (258)			(260)
Restructuring charges, net	(5)		(9)		(23)	(17)
Stock compensation expense	(5)		(4)		(15)	(13)
Strategic transaction expenses, net of transaction breakup fee income	(8)		(6)		(32)	(13)
Acquisition related inventory adjustments	(3)				(12)
Non-income tax legal judgment					6
Other items			(5)		(9)	(10)
Impairment of indefinite-lived intangible asset						(20)
Adjustment in fair value of disposal group held for sale				$ 3		3	$ (27)
Earnings before interest and income taxes	137		147		182	459
Interest expense	31		24		92	71
Interest income	3		3		8	8
Earnings before income taxes	109		126		98	396
Income tax expense (benefit)	5		31		(27)	75
Equity in earnings of affiliates	8		1		22	13
Net income	$ 112		$ 96		$ 147	$ 334

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Marketable Securities

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Marketable Securities [Text Block]

Marketable Securities 

	September 30, 2019						December 31, 2018
	Cost		Unrealized Gain (Loss)		Fair Value		Cost		Unrealized Gain (Loss)		Fair Value
U.S. government securities	$	—	$	—	$	—	$	2	$	—	$	2
Corporate securities							4				4
Certificates of deposit	20				20		15				15
Total marketable securities	$	20	$	—	$	20	$	21	$	—	$	21

U.S. government securities include bonds issued by government-sponsored agencies and Treasury notes. Corporate securities are primarily debt securities. Certificates of deposit maturing in one year or less total $20 at September 30, 2019.

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Pension and Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Defined Benefit Plan Disclosure [Line Items]
Settlement charge	$ 2	$ 258		$ 260
Pension Plan [Member] | UNITED STATES
Defined Benefit Plan Disclosure [Line Items]
Interest cost	7		$ 11	33	$ 32
Expected return on plan assets	(10)		(18)	(42)	(53)
Service cost
Settlement charge				258
Amortization of net actuarial loss	3		7	18	21
Net periodic benefit cost	0		0	267	0
Pension Plan [Member] | Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1		2	5	5
Expected return on plan assets			(1)	(2)	(2)
Service cost	2		2	6	6
Settlement charge	2			2
Amortization of net actuarial loss	2		2	5	5
Net periodic benefit cost	7		5	16	14
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1		0	2	2
Expected return on plan assets
Service cost
Settlement charge
Amortization of net actuarial loss
Net periodic benefit cost	$ 1		$ 0	$ 2	$ 2

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Fair Value Measurements and Derivatives - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Settlements of undesignated derivatives				$ 20
Interest Rate Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 0	$ 0		0
Fair value adjustment to the carrying amount of the December 2024 Notes	5	5		5
Interest Rate Contract [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 425	425		425
Forward Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum remaining maturity of foreign currency derivatives	15 months
Foreign Exchange Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 473	473		473	$ 1,007
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	349	349		349
Currency Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	1,081	1,081		1,081	$ 1,097
Currency Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	1,081	1,081		1,081
Other Expense, Net [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss on undesignated foreign currency derivative		(3)		(15)
Swedish krona [Member] | Foreign Exchange Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	3	3		3
Swedish krona [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	3	3		3
Swedish krona [Member] | Other Expense, Net [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss on undesignated foreign currency derivative			$ (13)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	124	124		124
Not Designated as Hedging Instrument [Member] | Currency Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 0	$ 0		$ 0
Not Designated as Hedging Instrument [Member] | Swedish krona [Member] | Foreign Exchange Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Settlements of undesignated derivatives			$ 21

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Financing Agreements - Schedule of Term A Facility and Revolving Facility Margins (Details) - Term A Facility And Revolving Facility [Member]	9 Months Ended
	Sep. 30, 2019
Base Rate [Member] | Less than or equal to 1.00:1.00 [Member]
Debt Instrument [Line Items]
Margin rate	0.25%
Base Rate [Member] | Greater than 1.00:1.00 but less than or equal to 2.00:1.00 [Member]
Debt Instrument [Line Items]
Margin rate	0.50%
Base Rate [Member] | Greater than 2.00:1.00 [Member]
Debt Instrument [Line Items]
Margin rate	0.75%
Eurodollar Rate [Member] | Less than or equal to 1.00:1.00 [Member]
Debt Instrument [Line Items]
Margin rate	1.25%
Eurodollar Rate [Member] | Greater than 1.00:1.00 but less than or equal to 2.00:1.00 [Member]
Debt Instrument [Line Items]
Margin rate	1.50%
Eurodollar Rate [Member] | Greater than 2.00:1.00 [Member]
Debt Instrument [Line Items]
Margin rate	1.75%

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Earnings Per Share - Reconciliation of the Numerators and Denominators of the Earnings Per Share Calculations (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income available to common stockholders - Numerator diluted	$ 111	$ 95	$ 141	$ 327
Net income available to common stockholders - Numerator basic	$ 111	$ 95	$ 141	$ 327
Weighted-average common shares outstanding - Basic	144.0	144.7	144.0	145.1
Employee compensation-related shares, including stock options	0.8	1.2	0.8	1.5
Weighted-average common shares outstanding - Diluted	144.8	145.9	144.8	146.6

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Stockholders' Equity - Changes in Equity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 1,814	$ 1,251	$ 1,442	$ 1,114
Net income	112	96	147	334
Net income	114	96	150	333
Other comprehensive income (loss)	(33)	5	364	(42)
Other comprehensive income (loss) including portion attributable to nonredeemable noncontrolling interest	(38)	5	355	(41)
Common stock dividends	(15)	(14)	(44)	(44)
Distributions to noncontrolling interests	(2)	(3)	(14)	(7)
Increase from business combination			8
Purchase of noncontrolling interests				0
Purchase of redeemable noncontrolling interests		2		2
Contribution from noncontrolling interest		22		22
Common stock share repurchases			(25)	(25)
Stock compensation	5	6	13	17
Stock withheld for employee taxes		(1)	(6)	(7)
Ending Balance	1,878	1,364	1,878	1,364
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	2	2	2	2
Ending Balance	2	2	2	2
Additional Paid-in Capital [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	2,376	2,356	2,368	2,354
Purchase of noncontrolling interests				(9)
Purchase of redeemable noncontrolling interests		2		2
Stock compensation	5	6	13	17
Ending Balance	2,381	2,364	2,381	2,364
Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	456	290	456	86
Net income	111	95	141	327
Common stock dividends	(15)	(14)	(44)	(44)
Ending Balance	552	371	552	371
Treasury Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(150)	(118)	(119)	(87)
Common stock share repurchases			(25)	(25)
Stock withheld for employee taxes		(1)	(6)	(7)
Ending Balance	(150)	(119)	(150)	(119)
AOCI Attributable to Parent [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(968)	(1,385)	(1,362)	(1,342)
Other comprehensive income (loss)	(26)	6	368	(35)
Ending Balance	(994)	(1,379)	(994)	(1,379)
Non-Controlling Interests [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	98	106	97	101
Net income	3	1	9	6
Other comprehensive income (loss)	(12)	(1)	(13)	(6)
Distributions to noncontrolling interests	(2)	(3)	(14)	(7)
Increase from business combination			8
Purchase of noncontrolling Interests				9
Contribution from noncontrolling interest		22		22
Ending Balance	$ 87	$ 125	$ 87	$ 125
Accounting Standards Update 2016-02 [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact on retained earnings					$ (1)
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact on retained earnings					$ (1)
Accounting Standards Update 2016-01 [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact on retained earnings						$ 0
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact on retained earnings						2
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact on retained earnings						$ (2)

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Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Marketable Securities [Line Items]
Marketable Securities, Cost	$ 20	$ 21
Unrealized Gain (Loss)	0	0
Marketable Securities, Fair Value	20	21
US Treasury and Government [Member]
Marketable Securities [Line Items]
Debt Securities, Cost	0	2
Debt Securities, Unrealized Gain	0	0
Debt Securities, Fair Value	0	2
Corporate Debt Securities [Member]
Marketable Securities [Line Items]
Debt Securities, Cost		4
Debt Securities, Unrealized Gain
Debt Securities, Fair Value		4
Certificates of Deposit [Member]
Marketable Securities [Line Items]
Debt Securities, Cost	20	15
Debt Securities, Unrealized Gain
Debt Securities, Fair Value	$ 20	$ 15

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Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Sep. 30, 2012
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Impairment and Amortization	$ (497,000,000)	$ (513,000,000)
Intangible Assets, Gross (Excluding Goodwill)	729,000,000	677,000,000
Intangible Assets, Net (Excluding Goodwill)	232,000,000	164,000,000
Trademarks and Trade Names [Member]
Indefinite-lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill), Net	75,000,000	74,000,000
Used In Research And Development [Member]
Indefinite-lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill), Net	0	0
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross		20,000,000	$ 20,000,000	$ 20,000,000
Indefinite-Lived Intangible Assets (Excluding Goodwill), Accumulated Impairment Loss		(20,000,000)
Core Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful life	8 years
Finite-Lived Intangible Assets, Gross	$ 131,000,000	107,000,000
Finite-Lived Intangible Assets, Accumulated Impairment and Amortization	(91,000,000)	(89,000,000)
Finite-Lived Intangible Assets, Net Carrying Amount	$ 40,000,000	18,000,000
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful life	13 years
Finite-Lived Intangible Assets, Gross	$ 30,000,000	16,000,000
Finite-Lived Intangible Assets, Accumulated Impairment and Amortization	(6,000,000)	(4,000,000)
Finite-Lived Intangible Assets, Net Carrying Amount	$ 24,000,000	12,000,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful life	9 years
Finite-Lived Intangible Assets, Gross	$ 493,000,000	460,000,000
Finite-Lived Intangible Assets, Accumulated Impairment and Amortization	(400,000,000)	(400,000,000)
Finite-Lived Intangible Assets, Net Carrying Amount	$ 93,000,000	$ 60,000,000

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Restructuring of Operations - Additional Information (Details) $ in Millions			3 Months Ended		9 Months Ended
	Sep. 30, 2019 employee	Jan. 01, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Restructuring and Related Activities [Abstract]
Restructuring charges			$ 5	$ 9	$ 23	$ 17
Reclassification of accrued lease cease-use costs after adopting new leasing standard		$ 4			$ (4)
Estimated reduction of employees | employee	200

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Organization and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Summary of Significant Accounting Policies [Text Block]

Organization and Summary of Significant Accounting Policies

General

Dana Incorporated (Dana) is headquartered in Maumee, Ohio and was incorporated in Delaware in 2007. As a global provider of high technology driveline (axles, driveshafts and transmissions); sealing and thermal-management products; and motors, power inverters, and control systems for electric vehicles our customer base includes virtually every major vehicle manufacturer in the global light vehicle, medium/heavy vehicle and off-highway markets.

The terms "Dana," "we," "our" and "us," when used in this report, are references to Dana. These references include the subsidiaries of Dana unless otherwise indicated or the context requires otherwise.

Summary of significant accounting policies

Basis of presentation — Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. These statements are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Form 10-K).

Recently adopted accounting pronouncements

On January 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), using the modified retrospective approach and an application date of January 1, 2019. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting. This transition method resulted in the recognition of a right-of-use asset and a lease liability for virtually all leases at the application date with a cumulative-effect adjustment to retained earnings. Short-term leases of less than 12 months have not been recorded on the balance sheet.

We elected the package of practical expedients, which among other things, allowed us to carry forward the historical lease classification. We did not elect the practical expedient that allowed for hindsight to determine the lease term of existing leases. We separated the lease components from the non-lease components of each lease arrangement and, therefore, did not elect the practical expedient that would enable us to not separate them.

We also adopted the following standard during the first nine months of 2019, which did not have a material impact on our financial statements or financial statement disclosures:

Standard		Effective Date
2017-11	Earnings Per Share, Distinguishing Liabilities from Equity, Derivatives and Hedging – (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception	January 1, 2019

Recently issued accounting pronouncements

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This guidance allows for capitalization of implementation costs associated with certain cloud computing arrangements. This guidance becomes effective January 1, 2020 and early adoption is permitted. The guidance is to be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We do not expect the adoption of this guidance to impact our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance eliminated certain

disclosures about defined benefit plans, added new disclosures, and clarified other requirements. This guidance becomes effective January 1, 2020 and early adoption is permitted. There were no changes to interim disclosure requirements. Adoption of this guidance will not have a material effect on our annual financial statement disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The guidance removed or modified some disclosures while others were added. The removal and amendment of certain disclosures can be adopted immediately with retrospective application. The additional disclosure guidance becomes effective January 1, 2020. Adoption of this guidance will not have a material effect on our financial statement disclosures.

In January 2017, the FASB issued ASU 2017-04, Goodwill – Simplifying the Test for Goodwill Impairment, guidance that simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 of the goodwill impairment test. The new guidance quantifies goodwill impairment as the amount by which the carrying amount of a reporting unit, including goodwill, exceeds its fair value, with the impairment loss limited to the total amount of goodwill allocated to that reporting unit. This guidance becomes effective January 1, 2020 and will be applied on a prospective basis. Early adoption is permitted for impairment tests performed after January 1, 2017. We do not expect the adoption of this guidance to impact our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Credit Losses – Measurement of Credit Losses on Financial Instruments, new guidance for the accounting for credit losses on certain financial instruments. This guidance introduces a new approach to estimating credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. This guidance becomes effective January 1, 2020 and is not expected to have a material impact on our consolidated financial statements.

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Fair Value Measurements and Derivatives - Deferred Gain (Loss) in AOCI on Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	$ 0
Forward Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	0
Currency Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months
Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
AOCI before Tax	(43)	$ (58)
Cash Flow Hedging [Member] | Forward Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
AOCI before Tax	0	2
Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
AOCI before Tax	(5)
Cash Flow Hedging [Member] | Currency Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
AOCI before Tax	$ (38)	$ (60)

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Supplemental Balance Sheet and Cash Flow Information - Cash, Cash Equivalents And Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Text Block [Abstract]
Cash and cash equivalents	$ 402	$ 510	$ 322	$ 603
Restricted cash included in other current assets	7	7	2	3
Restricted cash included in other noncurrent assets	3	3	3	4
Total cash, cash equivalents and restricted cash	$ 412	$ 520	$ 327	$ 610

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Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 12	$ 37
Operating cash flows from finance leases	1	1
Financing cash flows from finance leases	1	3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	3	16
Finance leases	$ 1	$ 13

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Consolidated Statement Of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income	$ 112	$ 96	$ 147	$ 334
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Currency translation adjustments	(46)	(19)	(16)	(65)
Hedging gains and losses	8	3	15	(11)
Defined benefit plans	5	21	365	34
Other comprehensive income (loss)	(33)	5	364	(42)
Total comprehensive income	79	101	511	292
Less: Comprehensive loss attributable to noncontrolling interests	9		4
Less: Comprehensive income attributable to redeemable noncontrolling interests	(3)		(6)
Comprehensive income attributable to the parent company	$ 85	$ 101	$ 509	$ 292

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Warranty Obligations - Changes in Warranty Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance, beginning of period	$ 95	$ 75	$ 75	$ 76
Acquisitions			17	1
Amounts accrued for current period sales	9	9	26	27
Adjustments of prior estimates		(1)	2	(1)
Settlements of warranty claims	(11)	(9)	(27)	(28)
Currency impact	(2)		(2)	(1)
Balance, end of period	$ 91	$ 74	$ 91	$ 74

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Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Contract liabilities with customers	$ 18	$ 12
Maximum [Member]
Customer payment terms	180 days

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Stockholders' Equity - Additional Information (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Mar. 24, 2018
Equity [Abstract]
Cash dividends declared per share	$ 0.10	$ 0.10	$ 0.10
Stock Repurchase Program, Authorized Amount						$ 200,000,000
Cash spent under share repurchase program			$ 25,000,000	$ 25,000,000	$ 25,000,000
Shares repurchased during period			1,432,275
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 150,000,000			$ 150,000,000

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Segments (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Information [Table Text Block]

Segment information —

	2019							2018
Three Months Ended September 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	930	$	30		$	113	$	879	$	34		$	102
Commercial Vehicle	398		27			33		406		29			39
Off-Highway	582		3			79		425		3			69
Power Technologies	254		7			28		268		5			33
Eliminations and other			(67		)					(71		)
Total	$	2,164	$	—		$	253	$	1,978	$	—		$	243
Nine Months Ended September 30,
Light Vehicle	$	2,763	$	99		$	333	$	2,702	$	103		$	297
Commercial Vehicle	1,266		80			115		1,217		83			114
Off-Highway	1,808		13			264		1,402		8			220
Power Technologies	796		17			90		849		16			117
Eliminations and other			(209		)					(210		)
Total	$	6,633	$	—		$	802	$	6,170	$	—		$	748

Reconciliation of Segment EBITDA to Consolidated Net Income [Table Text Block]

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Segment EBITDA	$	253		$	243		$	802		$	748
Corporate expense and other items, net	(3		)	(3		)	(9		)	(14		)
Depreciation	(82		)	(63		)	(235		)	(187		)
Amortization	(4		)	(3		)	(12		)	(8		)
Non-service cost components of pension and OPEB costs	(4		)	(3		)	(19		)	(10		)
Pension settlement charge	(2		)				(260		)
Restructuring charges, net	(5		)	(9		)	(23		)	(17		)
Stock compensation expense	(5		)	(4		)	(15		)	(13		)
Strategic transaction expenses, net of transaction breakup   fee income	(8		)	(6		)	(32		)	(13		)
Acquisition related inventory adjustments	(3		)				(12		)
Non-income tax legal judgment							6
Other items				(5		)	(9		)	(10		)
Impairment of indefinite-lived intangible asset										(20		)
Adjustment in fair value of disposal group held for sale										3
Earnings before interest and income taxes	137			147			182			459
Interest expense	31			24			92			71
Interest income	3			3			8			8
Earnings before income taxes	109			126			98			396
Income tax expense (benefit)	5			31			(27		)	75
Equity in earnings of affiliates	8			1			22			13
Net income	$	112		$	96		$	147		$	334

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Fair Value Measurements and Derivatives (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block]

Fair value measurements on a recurring basis — Assets and liabilities that are carried in our balance sheet at fair value are as follows:

			Fair Value
Category	Balance Sheet Location	Fair Value Level	September 30, 2019		December 31, 2018
Available-for-sale securities	Marketable securities	2	$	20	$	21
Currency forward contracts
Cash flow hedges	Accounts receivable - Other	2	8		6
Cash flow hedges	Other accrued liabilities	2	6		5
Undesignated	Accounts receivable - Other	2	1		2
Undesignated	Other accrued liabilities	2	1		1
Interest rate collars	Other accrued liabilities	2	5
Currency swaps
Cash flow hedges	Other noncurrent liabilities	2	42		118

Carrying Amounts and Fair Values of Financial Instruments [Table Text Block]

Fair value of financial instruments — The financial instruments that are not carried in our balance sheet at fair value are as follows:

		September 30, 2019				December 31, 2018
	Fair Value Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	2	$	1,500	$	1,553	$	1,500	$	1,442
Term Facility	2	823		825		265		265
Other indebtedness*	2	63		58		28		23
Total		$	2,386	$	2,436	$	1,793	$	1,730

*

The carrying value includes the unamortized portion of a fair value adjustment related to a terminated interest rate swap at both dates.

Summary of Fixed-to-Fixed Cross-Currency Swaps [Table Text Block]

The following fixed-to-fixed cross-currency swaps were outstanding at September 30, 2019:

Underlying Financial Instrument						Derivative Financial Instrument
Description	Type	Face Amount		Rate		Designated Notional Amount		Traded Amount		Inflow Rate		Outflow Rate
June 2026 Notes	Payable	$	375	6.50	%	$	375	€	338	6.50	%	5.14	%
April 2025 Notes	Payable	$	400	5.75	%	$	400	€	371	5.75	%	3.85	%
Luxembourg Intercompany Notes	Receivable	€	281	3.91	%	€	281	$	300	6.00	%	3.91	%

Notional Amount of Currency Derivatives [Table Text Block]

The following currency derivatives were outstanding at September 30, 2019:

		Notional Amount (U.S. Dollar Equivalent)
Functional Currency	Traded Currency	Designated		Undesignated		Total		Maturity
U.S. dollar	Mexican peso, euro	$	145	$	8	$	153	Dec-20
Euro	U.S. dollar, Canadian dollar, Hungarian forint, British pound, Swiss franc, Indian rupee, Russian ruble, Chinese renminbi, Mexican peso, Australian dollar, Japanese yen	112		21		133		Jan-24
British pound	U.S. dollar, euro	1		2		3		Sep-20
Swedish krona	euro	3				3		Dec-19
South African rand	U.S. dollar, euro, Thai baht	7		4		11		Sep-20
Thai baht	U.S. dollar	13				13		Jun-20
Canadian dollar	U.S. dollar	17				17		Dec-20
Brazilian real	U.S. dollar, euro	51		19		70		Sep-20
Indian rupee	U.S. dollar, British pound, euro			61		61		Dec-20
Chinese renminbi	U.S. dollar, Canadian dollar, euro			7		7		Nov-19
Taiwan dollar	Chinese renminbi			2		2		Mar-20
Total forward contracts		349		124		473
U.S. dollar	euro	306				306		Sep-23
Euro	U.S. dollar	775				775		Jun-26
Total currency swaps		1,081		—		1,081
Total currency derivatives		$	1,430	$	124	$	1,554

Derivatives in Cash Flow Hedging Relationships [Table Text Block]

The following table provides a summary of deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less:

	Deferred Gain (Loss) in AOCI
	September 30, 2019			December 31, 2018			Gain (loss) expected to be reclassified into income in one year or less
Forward Contracts	$	—		$	2		$	—
Collar	(5		)
Cross-Currency Swaps	(38		)	(60		)
Total	$	(43	)	$	(58	)	$	—

Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships [Table Text Block]

The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with cash flow hedging relationships:

	Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
	Three Months Ended September 30, 2019
Derivatives Designated as Cash Flow Hedges	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	2,164	$	1,882		$	8
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(2		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(47		)
	Nine Months Ended September 30, 2019
	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	6,633	$	5,725		$	31
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(7		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(55		)

	Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
	Three Months Ended September 30, 2018
Derivatives Designated as Cash Flow Hedges	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	1,978	$	1,692		$	9
(Gain) or loss on cash flow hedging relationships
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(7		)
	Nine Months Ended September 30, 2018
	Net sales		Cost of sales			Other expense, net
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded	$	6,170	$	5,269		$	19
(Gain) or loss on cash flow hedging relationships
Foreign currency forwards
Amount of (gain) loss reclassified from AOCI into income			(2		)
Cross-currency swaps
Amount of (gain) loss reclassified from AOCI into income						(40		)

Derivatives Not Designated as Hedging Instruments [Table Text Block]

The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with undesignated hedging relationships.

	Amount of Gain (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019			Location of Gain or (Loss) Recognized in Income
Foreign currency forward contracts	$	(3	)	$	(15	)	Other expense, net

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Warranty Obligations

9 Months Ended

Sep. 30, 2019

Product Warranties Disclosures [Abstract]

Warranty Obligations [Text Block]

Warranty Obligations

We record a liability for estimated warranty obligations at the dates our products are sold. We record the liability based on our estimate of costs to settle future claims. Adjustments to our estimated costs at time of sale are made as claim experience and other new information becomes available. Obligations for service campaigns and other occurrences are recognized as adjustments to prior estimates when the obligation is probable and can be reasonably estimated.

Changes in warranty liabilities — 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance, beginning of period	$	95		$	75		$	75		$	76
Acquisitions							17			1
Amounts accrued for current period sales	9			9			26			27
Adjustments of prior estimates				(1		)	2			(1		)
Settlements of warranty claims	(11		)	(9		)	(27		)	(28		)
Currency impact	(2		)				(2		)	(1		)
Balance, end of period	$	91		$	74		$	91		$	74

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Segments

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segments [Text Block]

Segments

We are a global provider of high-technology products to virtually every major vehicle and engine manufacturer in the world. We also serve the stationary industrial market. Our technologies include drive and motion products (axles, driveshafts, planetary hub drives, power-transmission products, tire-management products, transmissions, and motors, power inverters and controls systems for electric vehicles); sealing solutions (gaskets, seals, heat shields, and fuel-cell plates); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, and exhaust-gas heat recovery); and fluid-power products (pumps, valves, motors, and controls). We serve our global light vehicle, medium/heavy vehicle and off-highway markets through four operating segments – Light Vehicle Driveline Technologies (Light Vehicle), Commercial Vehicle Driveline Technologies (Commercial Vehicle), Off-Highway Drive and Motion Technologies (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 —

	2019							2018
Three Months Ended September 30,	External Sales		Inter-Segment Sales			Segment EBITDA		External Sales		Inter-Segment Sales			Segment EBITDA
Light Vehicle	$	930	$	30		$	113	$	879	$	34		$	102
Commercial Vehicle	398		27			33		406		29			39
Off-Highway	582		3			79		425		3			69
Power Technologies	254		7			28		268		5			33
Eliminations and other			(67		)					(71		)
Total	$	2,164	$	—		$	253	$	1,978	$	—		$	243
Nine Months Ended September 30,
Light Vehicle	$	2,763	$	99		$	333	$	2,702	$	103		$	297
Commercial Vehicle	1,266		80			115		1,217		83			114
Off-Highway	1,808		13			264		1,402		8			220
Power Technologies	796		17			90		849		16			117
Eliminations and other			(209		)					(210		)
Total	$	6,633	$	—		$	802	$	6,170	$	—		$	748

Reconciliation of segment EBITDA to consolidated net income —

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Segment EBITDA	$	253		$	243		$	802		$	748
Corporate expense and other items, net	(3		)	(3		)	(9		)	(14		)
Depreciation	(82		)	(63		)	(235		)	(187		)
Amortization	(4		)	(3		)	(12		)	(8		)
Non-service cost components of pension and OPEB costs	(4		)	(3		)	(19		)	(10		)
Pension settlement charge	(2		)				(260		)
Restructuring charges, net	(5		)	(9		)	(23		)	(17		)
Stock compensation expense	(5		)	(4		)	(15		)	(13		)
Strategic transaction expenses, net of transaction breakup   fee income	(8		)	(6		)	(32		)	(13		)
Acquisition related inventory adjustments	(3		)				(12		)
Non-income tax legal judgment							6
Other items				(5		)	(9		)	(10		)
Impairment of indefinite-lived intangible asset										(20		)
Adjustment in fair value of disposal group held for sale										3
Earnings before interest and income taxes	137			147			182			459
Interest expense	31			24			92			71
Interest income	3			3			8			8
Earnings before income taxes	109			126			98			396
Income tax expense (benefit)	5			31			(27		)	75
Equity in earnings of affiliates	8			1			22			13
Net income	$	112		$	96		$	147		$	334

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Other Expense, Net - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Other Income and Expenses [Abstract]
Business Transaction Breakup Fee Income	$ 40

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Leases - Lease Commitments (Details) $ in Millions	Dec. 31, 2018 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating lease commitments due 2019	$ 57
Operating lease commitments due 2020	41
Operating lease commitments due 2021	35
Operating lease commitments due 2022	27
Operating lease commitments due 2023	21
Operating lease commitments due thereafter	64
Operating lease commitments total	$ 245

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Consolidated Statement Of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities [Abstract]
Net income	$ 147	$ 334
Depreciation	235	187
Amortization	12	8
Amortization of deferred financing charges	5	3
Earnings of affiliates, net of dividends received	(3)	5
Stock compensation expense	15	13
Deferred income taxes	(120)	(47)
Pension expense, net	207	2
Impairment of indefinite-lived intangible asset		20
Adjustment in fair value of disposal group held for sale		(2)
Change in working capital	(197)	(269)
Other, net	(13)	(17)
Net cash provided by operating activities	288	237
Investing activities [Abstract]
Purchases of property, plant and equipment	(298)	(235)
Acquisition of businesses, net of cash acquired	(666)	(151)
Proceeds from previous acquisition		9
Purchases of marketable securities	(24)	(36)
Proceeds from sales of marketable securities	6	6
Proceeds from maturities of marketable securities	19	30
Proceeds from sale of subsidiary, net of cash disposed	1
Proceeds from sale of subsidiary, net of cash disposed		(6)
Settlements of undesignated derivatives	(20)
Other, net	(13)	(2)
Net cash used in investing activities	(995)	(385)
Financing activities [Abstract]
Net change in short-term debt	92	(13)
Proceeds from long-term debt	675
Repayment of long-term debt	(121)	(8)
Deferred financing payments	(16)
Dividends paid to common stockholders	(43)	(43)
Distributions to noncontrolling interests	(14)	(7)
Sale of interest to noncontrolling shareholder	53
Contributions from noncontrolling interests	4	22
Payments to acquire redeemable noncontrolling interests		(43)
Repurchase of common stock	(25)	(25)
Other, net		(5)
Net cash provided by (used in) financing activities	605	(122)
Net decrease in cash, cash equivalents and restricted cash	(102)	(270)
Cash, cash equivalents and restricted cash - beginning of period	520	610
Effect of exchange rate changes on cash balances	(6)	(13)
Cash, cash equivalents and restricted cash - end of period	412	327
Non-cash investing activity [Abstract]
Purchases of property, plant and equipment held in accounts payable	$ 79	$ 93

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Fair Value Measurements and Derivatives - Notional Amount of Currency Derivatives (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Foreign Exchange Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 473	$ 1,007
Foreign Exchange Forward [Member] | United States of America, Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	Mexican peso, euro
Derivative, Notional Amount	$ 153
Foreign Exchange Forward [Member] | Euro Member Countries, Euro [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar, Canadian dollar, Hungarian forint, British pound, Swiss franc, Indian rupee, Russian ruble, Chinese renminbi, Mexican peso, Australian dollar, Japanese yen
Derivative, Notional Amount	$ 133
Foreign Exchange Forward [Member] | United Kingdom, Pounds [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar, euro
Derivative, Notional Amount	$ 3
Foreign Exchange Forward [Member] | Swedish krona [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	euro
Derivative, Notional Amount	$ 3
Foreign Exchange Forward [Member] | South Africa Rand [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar, euro, Thai baht
Derivative, Notional Amount	$ 11
Foreign Exchange Forward [Member] | Thailand, Baht [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar
Derivative, Notional Amount	$ 13
Foreign Exchange Forward [Member] | Canada, Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar
Derivative, Notional Amount	$ 17
Foreign Exchange Forward [Member] | Brazil, Brazil Real [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar, euro
Derivative, Notional Amount	$ 70
Foreign Exchange Forward [Member] | Indian rupee [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar, British pound, euro
Derivative, Notional Amount	$ 61
Foreign Exchange Forward [Member] | China, Yuan Renminbi [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar, Canadian dollar, euro
Derivative, Notional Amount	$ 7
Foreign Exchange Forward [Member] | Taiwan, New Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	Chinese renminbi
Derivative, Notional Amount	$ 2
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	124
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | United States of America, Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	8
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Euro Member Countries, Euro [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	21
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | United Kingdom, Pounds [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	2
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | South Africa Rand [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	4
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Brazil, Brazil Real [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	19
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Indian rupee [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	61
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | China, Yuan Renminbi [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	7
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Taiwan, New Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	2
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	349
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | United States of America, Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	145
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Euro Member Countries, Euro [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	112
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | United Kingdom, Pounds [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	1
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Swedish krona [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	3
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | South Africa Rand [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	7
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Thailand, Baht [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	13
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Canada, Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	17
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Brazil, Brazil Real [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	51
Currency Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 1,081	$ 1,097
Currency Swap [Member] | United States of America, Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	euro
Derivative, Notional Amount	$ 306
Currency Swap [Member] | Euro Member Countries, Euro [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Traded Currency	U.S. dollar
Derivative, Notional Amount	$ 775
Currency Swap [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	0
Currency Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	1,081
Currency Swap [Member] | Cash Flow Hedging [Member] | United States of America, Dollars [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	306
Currency Swap [Member] | Cash Flow Hedging [Member] | Euro Member Countries, Euro [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	775
Foreign Exchange Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	1,554
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	124
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 1,430

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Supplemental Balance Sheet and Cash Flow Information - Inventory Components (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Text Block [Abstract]
Raw materials	$ 495	$ 433
Work in process and finished goods	800	649
Inventory reserves	(62)	(51)
Total	$ 1,233	$ 1,031

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Leases - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease cost	$ 13	$ 37
Finance lease cost:
Amortization of right-of-use assets	1	2
Interest on lease liabilities	1	1
Total finance lease cost	$ 2	$ 3

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Consolidated Statement Of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net sales	$ 2,164	$ 1,978	$ 6,633	$ 6,170
Costs and expenses
Cost of sales	1,882	1,692	5,725	5,269
Selling, general and administrative expenses	128	119	404	383
Amortization of intangibles	2	2	8	6
Restructuring charges, net	5	9	23	17
Impairment of indefinite-lived intangible asset				(20)
Adjustment in fair value of disposal group held for sale				3
Pension settlement charge	(2)		(260)
Other expense, net	(8)	(9)	(31)	(19)
Earnings before interest and income taxes	137	147	182	459
Interest income	3	3	8	8
Interest expense	31	24	92	71
Earnings before income taxes	109	126	98	396
Income tax expense (benefit)	5	31	(27)	75
Equity in earnings of affiliates	8	1	22	13
Net income	112	96	147	334
Less: Noncontrolling interests net income	3	1	9	6
Less: Redeemable noncontrolling interests net income (loss)	(2)		(3)	1
Net income attributable to the parent company	$ 111	$ 95	$ 141	$ 327
Net income per share available to common stockholders
Basic	$ 0.77	$ 0.66	$ 0.98	$ 2.25
Diluted	$ 0.77	$ 0.65	$ 0.97	$ 2.23
Weighted-average common shares outstanding - Basic	144.0	144.7	144.0	145.1
Weighted-average common shares outstanding - Diluted	144.8	145.9	144.8	146.6

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Commitments and Contingencies - Additional Information (Details) $ in Millions	Sep. 30, 2019 USD ($) Lease	Dec. 31, 2018 USD ($)
Loss Contingencies [Line Items]
Accrued product liabilities	$ 14	$ 19
Accrued environmental liabilities	9	10
Damages from Product Defects [Member]
Loss Contingencies [Line Items]
Probable recovery receivable	$ 14	$ 24
Property Lease Guarantee [Member] | Structural Products [Member]
Loss Contingencies [Line Items]
Guarantee of lease obligations, number of leases assigned | Lease	3
Guaranteed annual lease payments through June 2025 related to divested business	$ 6

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Equity Affiliates (Tables)

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments [Table Text Block]

Equity method investments exceeding $5 at September 30, 2019 — 

	Ownership Percentage	Investment
Dongfeng Dana Axle Co., Ltd. (DDAC)	50%	$	90
Bendix Spicer Foundation Brake, LLC	20%	51
Axles India Limited	48%	10
Ashwoods Innovations Ltd.	58%	7
Taiway Ltd.	28%	5
All others as a group		7
Investments in equity affiliates		170
Investments in affiliates carried at cost		2
Investments in affiliates		$	172

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Warranty Obligations (Tables)

9 Months Ended

Sep. 30, 2019

Product Warranties Disclosures [Abstract]

Changes in Warranty Liabilities [Table Text Block]

Changes in warranty liabilities — 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance, beginning of period	$	95		$	75		$	75		$	76
Acquisitions							17			1
Amounts accrued for current period sales	9			9			26			27
Adjustments of prior estimates				(1		)	2			(1		)
Settlements of warranty claims	(11		)	(9		)	(27		)	(28		)
Currency impact	(2		)				(2		)	(1		)
Balance, end of period	$	91		$	74		$	91		$	74

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies [Text Block]

Commitments and Contingencies

Product liabilities — Accrued product liability costs were $14 at September 30, 2019 and $19 at December 31, 2018. We had also recognized amounts recoverable from third parties of $14 at September 30, 2019 and $24 at December 31, 2018. Payments made to claimants precede recovery of amounts from third parties, and may result in recoverable amounts in excess of the total liability. We estimate these liabilities based on current information and assumptions about the value and likelihood of the claims against us.

Environmental liabilities — Accrued environmental liabilities were $9 at September 30, 2019 and $10 at December 31, 2018. We consider the most probable method of remediation, current laws and regulations and existing technology in estimating our environmental liabilities.

Guarantee of lease obligations — In connection with the divestiture of our Structural Products business in 2010, leases covering three U.S. facilities were assigned to a U.S. affiliate of Metalsa. Under the terms of the sale agreement, we will guarantee the affiliate’s performance under the leases, which run through June 2025, including approximately $6 of annual payments. In the event of a required payment by Dana as guarantor, we are entitled to pursue full recovery from Metalsa of the amounts paid under the guarantee and to take possession of the leased property.

Other legal matters — We are subject to various pending or threatened legal proceedings arising out of the normal course of business or operations. In view of the inherent difficulty of predicting the outcome of such matters, we cannot state what the eventual outcome of these matters will be. However, based on current knowledge and after consultation with legal counsel, we believe that any liabilities that may result from these proceedings will not have a material adverse effect on our liquidity, financial condition or results of operations.

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Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers [Text Block]

Revenue from Contracts with Customers

We generate revenue from selling production parts to original equipment manufacturers (OEMs) and service parts to OEMs and aftermarket customers. While we provide production and service parts to certain OEMs under awarded multi-year programs, these multi-year programs do not contain any commitment to volume by the customer. As such, individual customer releases or purchase orders represent the contract with the customer. Our customer contracts do not provide us with an enforceable right to payment for performance completed to date throughout the contract term. As such, we recognize part sales revenue at the point in time when the parts are shipped, and risk of loss has transferred to the customer. We have elected to continue to include shipping and handling fees billed to customers in revenue, while including costs of shipping and handling in costs of sales. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate government agencies. Payment terms with our customers are established based on industry and regional practices and generally do not exceed 180 days.

Certain of our customer contracts include rebate incentives. We estimate expected rebates and accrue the corresponding refund liability, as a reduction of revenue, at the time covered product is sold to the customer based on anticipated customer purchases during the rebate period and contractual rebate percentages. Refund liabilities are included in other accrued liabilities on our consolidated balance sheet. We provide standard fitness for use warranties on the products we sell, accruing for estimated costs related to product warranty obligations at time of sale. See Note 17 for additional information.

Contract liabilities are primarily comprised of cash deposits made by customers with cash in advance payment terms. Generally, our contract liabilities turn over frequently given our relatively short production cycles. Contract liabilities were $18 and $12 at September 30, 2019 and December 31, 2018. Contract liabilities are included in other accrued liabilities on our consolidated balance sheet.

Disaggregation of revenue —

The following table disaggregates revenue for each of our operating segments by geographical market:

Three Months Ended September 30, 2019	Light Vehicle		Commercial Vehicle		Off-Highway		Power Technologies		Total
North America	$	699	$	238	$	89	$	132	$	1,158
Europe	80		49		381		104		614
South America	34		85		11		4		134
Asia Pacific	117		26		101		14		258
Total	$	930	$	398	$	582	$	254	$	2,164
Nine Months Ended September 30, 2019
North America	$	2,042	$	745	$	245	$	412	$	3,444
Europe	256		181		1,243		325		2,005
South America	105		245		31		15		396
Asia Pacific	360		95		289		44		788
Total	$	2,763	$	1,266	$	1,808	$	796	$	6,633

Three Months Ended September 30, 2018
North America	$	605	$	232	$	35	$	141	$	1,013
Europe	83		62		322		105		572
South America	46		79		9		6		140
Asia Pacific	145		33		59		16		253
Total	$	879	$	406	$	425	$	268	$	1,978
Nine Months September 30, 2018
North America	$	1,869	$	677	$	109	$	442	$	3,097
Europe	264		206		1,083		337		1,890
South America	139		240		23		16		418
Asia Pacific	430		94		187		54		765
Total	$	2,702	$	1,217	$	1,402	$	849	$	6,170

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Reconciliation of Numerators and Denominators of Earnings Per Share Calculations [Table Text Block]

Reconciliation of the numerators and denominators of the earnings per share calculations — 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income available to common stockholders - Numerator basic and diluted	$	111	$	95	$	141	$	327
Denominator:
Weighted-average common shares outstanding - Basic	144.0		144.7		144.0		145.1
Employee compensation-related shares, including stock options	0.8		1.2		0.8		1.5
Weighted-average common shares outstanding - Diluted	144.8		145.9		144.8		146.6

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Supplemental Balance Sheet and Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Supplemental Balance Sheet Information [Text Block]

Inventory components at —

	September 30, 2019			December 31, 2018
Raw materials	$	495		$	433
Work in process and finished goods	800			649
Inventory reserves	(62		)	(51		)
Total	$	1,233		$	1,031

Supplemental Cash Flow Information [Table Text Block]

Cash, cash equivalents and restricted cash at —

	September 30, 2019		December 31, 2018		September 30, 2018		December 31, 2017
Cash and cash equivalents	$	402	$	510	$	322	$	603
Restricted cash included in other current assets	7		7		2		3
Restricted cash included in other noncurrent assets	3		3		3		4
Total cash, cash equivalents and restricted cash	$	412	$	520	$	327	$	610

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Segments - Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Net sales	$ 2,164	$ 1,978	$ 6,633	$ 6,170
Segment EBITDA	253	243	802	748
Light Vehicle Segment [Member]
Segment Reporting Information [Line Items]
Net sales	930	879	2,763	2,702
Segment EBITDA	113	102	333	297
Commercial Vehicle Segment [Member]
Segment Reporting Information [Line Items]
Net sales	398	406	1,266	1,217
Segment EBITDA	33	39	115	114
Off-Highway Segment [Member]
Segment Reporting Information [Line Items]
Net sales	582	425	1,808	1,402
Segment EBITDA	79	69	264	220
Power Technologies Segment [Member]
Segment Reporting Information [Line Items]
Net sales	254	268	796	849
Segment EBITDA	28	33	90	117
Eliminations and other [Member]
Segment Reporting Information [Line Items]
Net sales
Segment EBITDA
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Intersegment Eliminations [Member] | Light Vehicle Segment [Member]
Segment Reporting Information [Line Items]
Net sales	30	34	99	103
Intersegment Eliminations [Member] | Commercial Vehicle Segment [Member]
Segment Reporting Information [Line Items]
Net sales	27	29	80	83
Intersegment Eliminations [Member] | Off-Highway Segment [Member]
Segment Reporting Information [Line Items]
Net sales	3	3	13	8
Intersegment Eliminations [Member] | Power Technologies Segment [Member]
Segment Reporting Information [Line Items]
Net sales	7	5	17	16
Intersegment Eliminations [Member] | Eliminations and other [Member]
Segment Reporting Information [Line Items]
Net sales	$ (67)	$ (71)	$ (209)	$ (210)

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Pension and Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Pension and Postretirement Benefit Plans [Text Block]

Pension and Postretirement Benefit Plans

We have a number of defined contribution and defined benefit, qualified and nonqualified, pension plans covering eligible employees. Other postretirement benefits (OPEB), including medical and life insurance, are provided for certain employees upon retirement.

Components of net periodic benefit cost — 

	Pension
	2019						2018						OPEB - Non-U.S.
Three Months Ended September 30,	U.S.			Non-U.S.			U.S.			Non-U.S.			2019		2018
Interest cost	$	7		$	1		$	11		$	2		$	1	$	—
Expected return on plan assets	(10		)				(18		)	(1		)
Service cost				2						2
Settlement charge				2
Amortization of net actuarial loss	3			2			7			2
Net periodic benefit cost	$	—		$	7		$	—		$	5		$	1	$	—
Nine Months Ended September 30,
Interest cost	$	33		$	5		$	32		$	5		$	2	$	2
Expected return on plan assets	(42		)	(2		)	(53		)	(2		)
Service cost				6						6
Settlement charge	258			2
Amortization of net actuarial loss	18			5			21			5
Net periodic benefit cost	$	267		$	16		$	—		$	14		$	2	$	2

The service cost components of net periodic pension and OPEB costs are included in cost of sales and selling, general and administrative expenses as part of compensation cost and are eligible for capitalization in inventory and other assets. The non-service components are reported in other expense, net and are not eligible for capitalization.

Pension expense for 2019 increased versus the same period in 2018 as a result of a lower assumed return on plan assets, higher interest expense, and a pension settlement charge.

Plan termination — In October 2017, upon authorization by the Dana Board of Directors, we commenced the process of terminating one of our U.S. defined benefit pension plans. During the second quarter of 2019, payments were made from plan assets to those plan participants that elected to take the lump-sum payout option. In June 2019, we entered into (a) a definitive commitment agreement by and among Dana, Athene Annuity and Life Company (Athene) and State Street Global Advisors, as independent fiduciary to the plan, and (b) a definitive commitment agreement by and among Dana, Companion Life Insurance Company (Companion) and State Street Global Advisors, as independent fiduciary to the plan. Pursuant to the definitive commitment agreements, the plan purchased group annuity contracts that irrevocably transferred to the insurance companies the remaining future pension benefit obligations of the plan. Plan participant’s benefits are unchanged as a result of the termination. We contributed $62 to the plan prior to the purchase of the group annuity contracts. The purchase of group annuity contracts was then funded directly by the assets of the plan in June 2019. By irrevocably transferring the obligations to Athene and Companion, we reduced our unfunded pension obligation by approximately $165 and recognized a pre-tax pension settlement charge of $258 in the second quarter of 2019.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets [Text Block]

Goodwill and Other Intangible Assets

Goodwill — The change in the carrying amount of goodwill in 2019 is due to the acquisitions of Nordresa, PEPS, ODS and SME and currency fluctuation. See Note 2 for additional information on recent acquisitions.

Changes in the carrying amount of goodwill by segment — 

	Light Vehicle		Commercial Vehicle		Off-Highway			Power Technologies		Total
Balance, December 31, 2018	$	3	$	150	$	105		$	6	$	264
Acquisitions			85		191					276
Currency impact					(10		)			(10		)
Balance, September 30, 2019	$	3	$	235	$	286		$	6	$	530

Components of other intangible assets — 

		September 30, 2019							December 31, 2018
	Weighted Average Useful Life (years)	Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount
Amortizable intangible assets
Core technology	8	$	131	$	(91	)	$	40	$	107	$	(89	)	$	18
Trademarks and trade names	13	30		(6		)	24		16		(4		)	12
Customer relationships	9	493		(400		)	93		460		(400		)	60
Non-amortizable intangible assets
Trademarks and trade names		75					75		74					74
Used in research and development activities							—		20		(20		)	—
		$	729	$	(497	)	$	232	$	677	$	(513	)	$	164

During the third quarter of 2012, we entered a strategic alliance with Fallbrook Technologies Inc. (Fallbrook). The transaction with Fallbrook was accounted for as a business combination and the original purchase price allocation included $20 of intangible assets used in research and development activities, which had been classified as indefinite-lived. Since the third quarter of 2012, we had been working with several customers to commercialize the continuously variable planetary (CVP) technology primarily in combustion engine applications. During the second quarter of 2018 key customers notified us of their intention to redirect their development efforts to electrification and cease further development efforts of the CVP technology in combustion engine applications. We determined that it was more likely than not that the fair value of the related intangible assets was less than their carrying amount. We used the multi-period excess earnings method, an income approach, to fair value the assets used in research and development activities. Given the lack of adequate identifiable future revenue streams, it was determined that the $20 of intangible assets used in research and development activities was fully impaired during the second quarter of 2018.

The net carrying amounts of intangible assets, other than goodwill, attributable to each of our operating segments at September 30, 2019 were as follows: Light Vehicle — $25, Commercial Vehicle — $53, Off-Highway — $146 and Power Technologies — $8.

Amortization expense related to amortizable intangible assets — 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Charged to cost of sales	$	2	$	1	$	4	$	2
Charged to amortization of intangibles	2		2		8		6
Total amortization	$	4	$	3	$	12	$	8

The following table provides the estimated aggregate pre-tax amortization expense related to intangible assets for each of the next five years based on September 30, 2019 exchange rates. Actual amounts may differ from these estimates due to such factors as currency translation, customer turnover, impairments, additional intangible asset acquisitions and other events.

	Remainder of 2019		2020		2021		2022		2023
Amortization expense	$	4	$	16	$	16	$	16	$	16

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Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity [Text Block]

Stockholders’ Equity

Common stock — Our Board of Directors declared a cash dividend of ten cents per share of common stock in each of the first three quarters of 2019. Dividends accrue on restricted stock units (RSUs) granted under our stock compensation program and will be paid in cash or additional units when the underlying units vest.

Share repurchase program — On March 24, 2018 our Board of Directors approved an expansion of our existing common stock share repurchase program to $200. The program expires on December 31, 2019. Under the program, we spent $25 to repurchase 1,432,275 shares of our common stock during the first quarter of 2019 through open market transactions. Approximately $150 remained available for future share repurchases as of September 30, 2019.

Changes in equity —

	Three Months Ended September 30,
2019	Common Stock		Additional Paid-In Capital		Retained Earnings			Treasury Stock			Accumulated Other Compre-hensive Loss			Non-controlling Interests			Total Equity
Balance, June 30, 2019	$	2	$	2,376	$	456		$	(150	)	$	(968	)	$	98		$	1,814
Net income					111									3			114
Other comprehensive loss											(26		)	(12		)	(38		)
Common stock dividends					(15		)										(15		)
Distributions to noncontrolling interests														(2		)	(2		)
Stock compensation			5														5
Balance, September 30, 2019	$	2	$	2,381	$	552		$	(150	)	$	(994	)	$	87		$	1,878
2018
Balance, June 30, 2018	$	2	$	2,356	$	290		$	(118	)	$	(1,385	)	$	106		$	1,251
Net income					95									1			96
Other comprehensive income (loss)											6			(1		)	5
Common stock dividends					(14		)										(14		)
Distributions to noncontrolling interests														(3		)	(3		)
Purchase of redeemable noncontrolling interests			2														2
Contribution from noncontrolling interest														22			22
Stock compensation			6														6
Stock withheld for employee taxes								(1		)							(1		)
Balance, September 30, 2018	$	2	$	2,364	$	371		$	(119	)	$	(1,379	)	$	125		$	1,364

	Nine Months Ended September 30,
2019	Common Stock		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Compre-hensive Loss			Non-controlling Interests			Total Equity
Balance, December 31, 2018	$	2	$	2,368		$	456		$	(119	)	$	(1,362	)	$	97		$	1,442
Adoption of ASU 2016-02 leases, January 1, 2019						(1		)										(1		)
Net income						141									9			150
Other comprehensive income (loss)												368			(13		)	355
Common stock dividends						(44		)										(44		)
Distributions to noncontrolling interests															(14		)	(14		)
Increase from business combination															8			8
Common stock share repurchases									(25		)							(25		)
Stock compensation			13															13
Stock withheld for employee taxes									(6		)							(6		)
Balance, September 30, 2019	$	2	$	2,381		$	552		$	(150	)	$	(994	)	$	87		$	1,878
2018
Balance, December 31, 2017	$	2	$	2,354		$	86		$	(87	)	$	(1,342	)	$	101		$	1,114
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018						2						(2		)				—
Net income						327									6			333
Other comprehensive loss												(35		)	(6		)	(41		)
Common stock dividends						(44		)										(44		)
Distributions to noncontrolling interests															(7		)	(7		)
Purchase of noncontrolling interests			(9		)										9			—
Purchase of redeemable noncontrolling interests			2															2
Contribution from noncontrolling interest															22			22
Common stock share repurchases									(25		)							(25		)
Stock compensation			17															17
Stock withheld for employee taxes									(7		)							(7		)
Balance, September 30, 2018	$	2	$	2,364		$	371		$	(119	)	$	(1,379	)	$	125		$	1,364

During the first quarter of 2018, a wholly-owned subsidiary of Dana purchased the ownership interest in Dana Spicer (Thailand) Limited (a non wholly-owned consolidated subsidiary of Dana) held by ROC Spicer, Ltd. (a non wholly-owned consolidated subsidiary of Dana). Dana maintained its controlling financial interest in Dana Spicer (Thailand) Limited and accordingly accounted for the purchase as an equity transaction. The excess of the fair value of the consideration paid over the carrying value of the investment attributable to the noncontrolling interest in ROC Spicer, Ltd. was recognized as additional noncontrolling interest with a corresponding reduction of the additional paid-in capital of Dana. During the third quarter of 2018, Yulon Motor Co., Ltd. (Yulon) purchased a direct ownership in two of our consolidated operating subsidiaries. Yulon's ownership interest in the two operating subsidiaries did not change as a result of the transactions, as it previously owned the same percentages indirectly through a series of consolidated holding companies. The cash received from Yulon was recognized as additional noncontrolling interest.

Changes in each component of accumulated other comprehensive income (AOCI) of the parent —

	Parent Company Stockholders
	Foreign Currency Translation			Hedging			Investments		Defined Benefit Plans			Total
Balance, June 30, 2019	$	(694	)	$	(47	)	$	—	$	(227	)	$	(968	)
Other comprehensive income (loss):
Currency translation adjustments	(39		)									(39		)
Holding gains and losses				57								57
Reclassification of amount to net income (a)				(49		)						(49		)
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)									6			6
Tax expense									(1		)	(1		)
Other comprehensive income (loss)	(39		)	8			—		5			(26		)
Balance, September 30, 2019	$	(733	)	$	(39	)	$	—	$	(222	)	$	(994	)
Balance, June 30, 2018	$	(710	)	$	(78	)	$	—	$	(597	)	$	(1,385	)
Other comprehensive income (loss):
Currency translation adjustments	(15		)									(15		)
Holding loss on net investment hedge	(3		)									(3		)
Holding gains and losses				9								9
Reclassification of amount to net income (a)				(7		)						(7		)
Actuarial gain on census update									18			18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)									9			9
Tax (expense) benefit				1					(6		)	(5		)
Other comprehensive income (loss)	(18		)	3			—		21			6
Balance, September 30, 2018	$	(728	)	$	(75	)	$	—	$	(576	)	$	(1,379	)

	Parent Company Stockholders
	Foreign Currency Translation			Hedging			Investments			Defined Benefit Plans			Total
Balance, December 31, 2018	$	(721	)	$	(54	)	$	—		$	(587	)	$	(1,362	)
Other comprehensive income (loss):
Currency translation adjustments	(12		)										(12		)
Holding gains and losses				77									77
Reclassification of amount to net income (a)				(62		)							(62		)
Net actuarial gain										104			104
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)										282			282
Tax expense										(21		)	(21		)
Other comprehensive income	(12		)	15			—			365			368
Balance, September 30, 2019	$	(733	)	$	(39	)	$	—		$	(222	)	$	(994	)
Balance, December 31, 2017	$	(670	)	$	(64	)	$	2		$	(610	)	$	(1,342	)
Other comprehensive income (loss):
Currency translation adjustments	(55		)										(55		)
Holding loss on net investment hedge	(3		)										(3		)
Holding gains and losses				29									29
Reclassification of amount to net income (a)				(42		)							(42		)
Actuarial gain on census update										18			18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)										26			26
Tax (expense) benefit				2						(10		)	(8		)
Other comprehensive income (loss)	(58		)	(11		)	—			34			(35		)
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018							(2		)				(2		)
Balance, September 30, 2018	$	(728	)	$	(75	)	$	—		$	(576	)	$	(1,379	)

(a) Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments treated as cash flow hedges are reclassified from AOCI into the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. See Note 15 for additional details.

(b) See Note 12 for additional details.

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Financing Agreements - Schedule of Revolving Facility Commitment Fees (Details) - Revolving Facility [Member]	9 Months Ended
	Sep. 30, 2019
Less than or equal to 1.00:1.00 [Member]
Debt Instrument [Line Items]
Unused capacity, Commitment fee rate	0.25%
Greater than 1.00:1.00 but less than or equal to 2.00:1.00 [Member]
Debt Instrument [Line Items]
Unused capacity, Commitment fee rate	0.375%
Greater than 2.00:1.00 [Member]
Debt Instrument [Line Items]
Unused capacity, Commitment fee rate	0.50%

XML

Earnings Per Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Common Stock Equivalents [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculations of earnings per share as the effect of including them would have been anti-dilutive	0.6	0.1	0.2	0.1

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Stockholders' Equity - Changes in Each Component of AOCI of the Parent (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance,				$ (1,362)
Other comprehensive income (loss):
Balance,		$ (994)		(994)
Accounting Standards Update 2016-01 [Member]
Other comprehensive income (loss):
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018						$ 0
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance,		(694)	$ (710)	(721)	$ (670)
Other comprehensive income (loss):
Currency translation adjustments		(39)	(15)	(12)	(55)
Holding loss on net investment hedge			(3)		(3)
Tax (expense) benefit
Other comprehensive income (loss)		(39)	(18)	(12)	(58)
Balance,		(733)	(728)	(733)	(728)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance,		(47)	(78)	(54)	(64)
Other comprehensive income (loss):
Holding gains and losses		57	9	77	29
Reclassification of amount to net income	[1]	(49)	(7)	(62)	(42)
Tax (expense) benefit			1		2
Other comprehensive income (loss)		8	3	15	(11)
Balance,		(39)	(75)	(39)	(75)
Accumulated Net Gain (Loss) from Investments Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance,		0	0	0	2
Other comprehensive income (loss):
Holding gains and losses
Reclassification of amount to net income	[1]
Tax (expense) benefit
Other comprehensive income (loss)		0	0	0	0
Balance,		0	0	0	0
Accumulated Net Gain (Loss) from Investments Attributable to Parent [Member] | Accounting Standards Update 2016-01 [Member]
Other comprehensive income (loss):
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018						(2)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance,		(227)	(597)	(587)	(610)
Other comprehensive income (loss):
Net actuarial gain			18	104	18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost	[2]	6	9	282	26
Tax (expense) benefit		(1)	(6)	(21)	(10)
Other comprehensive income (loss)		5	21	365	34
Balance,		(222)	(576)	(222)	(576)
AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance,		(968)	(1,385)	(1,362)	(1,342)
Other comprehensive income (loss):
Currency translation adjustments		(39)	(15)	(12)	(55)
Holding loss on net investment hedge			(3)		(3)
Holding gains and losses		57	9	77	29
Reclassification of amount to net income	[1]	(49)	(7)	(62)	(42)
Net actuarial gain			18	104	18
Reclassification adjustment for net actuarial losses included in net periodic benefit cost	[2]	6	9	282	26
Tax (expense) benefit		(1)	(5)	(21)	(8)
Other comprehensive income (loss)		(26)	6	368	(35)
Balance,		$ (994)	$ (1,379)	$ (994)	$ (1,379)
AOCI Attributable to Parent [Member] | Accounting Standards Update 2016-01 [Member]
Other comprehensive income (loss):
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018						$ (2)

[1] Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments treated as cash flow hedges are reclassified from AOCI into the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. See Note 15 for additional details.

[2] See Note 12 for additional details.

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Marketable Securities - Additional Information (Details) $ in Millions	Sep. 30, 2019 USD ($)
Certificates of Deposit [Member]
Debt Securities, Available-for-sale [Line Items]
Marketable securities, maturing in one year or less	$ 20

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Pension and Postretirement Benefit Plans - Additional Information (Details) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2017 plan
Defined Benefit Plan Disclosure [Line Items]
Pension settlement charge	$ 2	$ 258		$ 260
Pension Plan [Member] | UNITED STATES
Defined Benefit Plan Disclosure [Line Items]
Number Of Plans Terminated | plan						1
Pension settlement charge				$ 258
Pension Plan [Member] | UNITED STATES | Terminated Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Contribution to the terminated plan		62
Unfunded pension obligation reduction		165
Pension settlement charge		$ 258

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Fair Value Measurements and Derivatives - Summary of Fixed-to-Fixed Cross-Currency Swaps (Details) € in Millions, $ in Millions		Sep. 30, 2019 USD ($)	Sep. 30, 2019 EUR (€)	Dec. 31, 2018 USD ($)
Senior Notes Due June 2026 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	[1]	6.50%	6.50%	6.50%
Senior Notes Due April 2025 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	[1]	5.75%	5.75%	5.75%
Cash Flow Hedging [Member] | Senior Notes Due June 2026 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, amount of hedged item		$ 375
Interest rate		6.50%	6.50%
Derivative, fixed interest rate		5.14%	5.14%
Cash Flow Hedging [Member] | Senior Notes Due April 2025 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, amount of hedged item		$ 400
Interest rate		5.75%	5.75%
Derivative, fixed interest rate		3.85%	3.85%
Cash Flow Hedging [Member] | Intercompany Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, amount of hedged item | €			€ 281
Interest rate		3.91%	3.91%
Currency Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		$ 1,081		$ 1,097
Currency Swap [Member] | United States of America, Dollars [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		306
Currency Swap [Member] | Euro Member Countries, Euro [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		775
Currency Swap [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		1,081
Currency Swap [Member] | Cash Flow Hedging [Member] | United States of America, Dollars [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		306
Currency Swap [Member] | Cash Flow Hedging [Member] | Euro Member Countries, Euro [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		775
Currency Swap [Member] | Cash Flow Hedging [Member] | Senior Notes Due June 2026 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		$ 375	€ 338
Currency Swap [Member] | Cash Flow Hedging [Member] | Senior Notes Due June 2026 [Member] | United States of America, Dollars [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate		6.50%	6.50%
Currency Swap [Member] | Cash Flow Hedging [Member] | Senior Notes Due June 2026 [Member] | Euro Member Countries, Euro [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate		5.14%	5.14%
Currency Swap [Member] | Cash Flow Hedging [Member] | Senior Notes Due April 2025 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		$ 400	€ 371
Currency Swap [Member] | Cash Flow Hedging [Member] | Senior Notes Due April 2025 [Member] | United States of America, Dollars [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate		5.75%	5.75%
Currency Swap [Member] | Cash Flow Hedging [Member] | Senior Notes Due April 2025 [Member] | Euro Member Countries, Euro [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate		3.85%	3.85%
Currency Swap [Member] | Cash Flow Hedging [Member] | Intercompany Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Notional Amount		$ 300	€ 281
Currency Swap [Member] | Cash Flow Hedging [Member] | Intercompany Notes [Member] | United States of America, Dollars [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate		6.00%	6.00%
Currency Swap [Member] | Cash Flow Hedging [Member] | Intercompany Notes [Member] | Euro Member Countries, Euro [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate		3.91%	3.91%

[1] In conjunction with the issuance of the April 2025 Notes we entered into 8-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of 3.850%. In conjunction with the issuance of the June 2026 Notes we entered into 10-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the June 2026 Notes to euro-denominated debt at a fixed rate of 5.140%. See Note 15 for additional information.

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Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 264
Acquisitions	276
Currency impact	(10)
Ending balance	530
Light Vehicle Segment [Member]
Goodwill [Roll Forward]
Beginning balance	3
Acquisitions
Currency impact
Ending balance	3
Commercial Vehicle Segment [Member]
Goodwill [Roll Forward]
Beginning balance	150
Acquisitions	85
Currency impact
Ending balance	235
Off-Highway Segment [Member]
Goodwill [Roll Forward]
Beginning balance	105
Acquisitions	191
Currency impact	(10)
Ending balance	286
Power Technologies Segment [Member]
Goodwill [Roll Forward]
Beginning balance	6
Acquisitions
Currency impact
Ending balance	$ 6

XML

Goodwill and Other Intangible Assets - Estimated Aggregate Pre-Tax Amortization Expense Related to Intangible Assets (Details) $ in Millions	Sep. 30, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense remainder of 2019	$ 4
Amortization expense 2020	16
Amortization expense 2021	16
Amortization expense 2022	16
Amortization expense 2023	$ 16