Note 21 - Segments, Geographical Area and Major Customer Information

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

We are a global provider of high-technology products to virtually every major vehicle manufacturer in the world. We also serve the stationary industrial market. Our technologies include drive systems (axles, driveshafts, transmissions, and wheel and track drives); motion systems (winches, slew drives, and hub drives); electrodynamic technologies (motors, inverters, software and control systems, battery-management systems, and fuel cell plates); sealing solutions (gaskets, seals, cam covers, and oil pan modules); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding); and digital solutions (active and passive system controls and descriptive and predictive analytics). We serve our global light vehicle, medium/heavy vehicle and off-highway markets through four operating segments – Light Vehicle Drive Systems (Light Vehicle), Commercial Vehicle Drive and Motion Systems (Commercial Vehicle), Off-Highway Drive and Motion Systems (Off-Highway) and Power Technologies, which is the center of excellence for sealing and thermal-management technologies that span all customers in our on-highway and off-highway markets. These operating segments have global responsibility and accountability for business commercial activities and financial performance.

Dana evaluates the performance of its operating segments based on external sales and segment EBITDA. Segment EBITDA is a primary driver of cash flows from operations and a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. Our segments are charged for corporate and other shared administrative costs.  Segment EBITDA may not be comparable to similarly titled measures reported by other companies.

During the second quarter of 2021, we realigned certain of our Indian operations previously reported in our Commercial Vehicle operating segment to be reported within our Off-Highway operating segment and we realigned certain of our Brazilian operations previously reported in our Off-Highway operating segment to be reported within our Commercial Vehicle operating segment. Prior period amounts have been recast to conform with our current operating segment reporting structure.

Segment information —

			Inter-
	External		Segment			Segment		Capital				Net
2021	Sales		Sales			EBITDA		Spend		Depreciation		Assets
Light Vehicle	$	3,773	$	166		$	274	$	154	$	175	$	1,492
Commercial Vehicle		1,532		100			48		53		31		941
Off-Highway		2,593		67			353		75		102		1,342
Power Technologies		1,047		23			123		39		36		389
Eliminations and other				(356	)				48		21		161
Total	$	8,945	$	—		$	798	$	369	$	365	$	4,325
2020
Light Vehicle	$	3,038	$	104		$	239	$	131	$	167	$	1,432
Commercial Vehicle		1,185		70			40		39		32		796
Off-Highway		1,966		48			230		69		93		1,360
Power Technologies		917		19			94		38		32		360
Eliminations and other				(241	)				49		21		146
Total	$	7,106	$	—		$	603	$	326	$	345	$	4,094
2019
Light Vehicle	$	3,609	$	124		$	438	$	179	$	149	$	1,369
Commercial Vehicle		1,599		100			140		48		36		882
Off-Highway		2,372		20			328		89		88		1,379
Power Technologies		1,040		23			117		46		30		367
Eliminations and other				(267	)				64		19		124
Total	$	8,620	$	—		$	1,023	$	426	$	322	$	4,121

Net assets include accounts receivable, inventories, other current assets, goodwill, intangibles, investments in affiliates, other noncurrent assets, net property, plant and equipment, accounts payable and current accrued liabilities.

Reconciliation of segment EBITDA to consolidated net income —

	2021			2020			2019
Segment EBITDA	$	798		$	603		$	1,023
Corporate expense and other items, net		(3	)		(10	)		(4	)
Depreciation		(365	)		(345	)		(322	)
Amortization		(24	)		(20	)		(17	)
Non-service cost components of pension and OPEB costs		(10	)		(10	)		(23	)
Restructuring charges, net					(34	)		(29	)
Stock compensation expense		(17	)		(14	)		(19	)
Strategic transaction expenses		(13	)		(20	)		(41	)
Amounts attributable to previously divested/closed operations		(2	)		(1	)		(5	)
Gain (loss) on investment in Hyliion		(20	)		33
Loss on disposal group held for sale		(7	)
Loss on de-designation of fixed-to-fixed cross currency swaps		(9	)
Gain on sale leaseback		66
Impairment of goodwill					(51	)		(6	)
Acquisition related inventory adjustments								(13	)
Non-income tax legal judgment								6
Pension settlement charges								(259	)
Gain on liquidation of foreign subsidiary								12
Other items		1			(7	)		(11	)
Earnings before interest and income taxes		395			124			292
Loss on extinguishment of debt		(29	)		(8	)		(9	)
Interest income		9			9			10
Interest expense		131			138			122
Earnings (loss) before income taxes		244			(13	)		171
Income tax expense (benefit)		72			58			(32	)
Equity in earnings of affiliates		28			20			30
Net income (loss)	$	200		$	(51	)	$	233

Reconciliation of segment net assets to consolidated total assets —

	2021		2020
Segment net assets	$	4,325	$	4,094
Accounts payable and other current liabilities		2,099		1,863
Other current and long-term assets		1,208		1,419
Consolidated total assets	$	7,632	$	7,376

Geographic information — Of our 2021 consolidated net sales, the U.S., Italy, Germany, China and India account for 45%, 15%, 6%, 6% and 5%, respectively. No other country accounted for more than 5% of our consolidated net sales during 2021. Sales are attributed to the location of the product entity recording the sale. Long-lived assets represent property, plant and equipment.

	Net Sales						Long-Lived Assets
	2021		2020		2019		2021		2020		2019
North America
United States	$	4,035	$	3,404	$	4,069	$	981	$	957	$	972
Other North America		195		198		404		114		106		105
Total		4,230		3,602		4,473		1,095		1,063		1,077
Europe
Italy		1,356		993		1,186		225		252		248
Germany		496		429		478		121		132		131
Other Europe		984		787		942		280		310		265
Total		2,836		2,209		2,606		626		694		644
South America		590		358		509		96		97		126
Asia Pacific
China		493		379		321		104		111		106
India		458		276		322		200		198		203
Other Asia Pacific		338		282		389		78		88		109
Total		1,289		937		1,032		382		397		418
Total	$	8,945	$	7,106	$	8,620	$	2,199	$	2,251	$	2,265

Sales to major customers — Ford, Stellantis N.V. and Fiat Chrysler Automobiles N.V. (FCA) were the only individual customers to whom sales have exceeded 10% of our consolidated sales in the past three years. Sales to Ford were $1,729 (19%) in 2021, $1,436 (20%) in 2020 and $1,753 (20%) in 2019. Sales to Stellantis N.V. (via a directed supply relationship) were  $1,068 (12%) in 2021 and $871 (12%) in 2020. Sales to FCA (via a directed supply relationship) were $988 (11%) in 2019.