Note 7 - Redeemable Noncontrolling Interests

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Redeemable Noncontrolling Interest Disclosure [Text Block]

Note 7. Redeemable Noncontrolling Interests

Hydro-Québec owns a 45% redeemable noncontrolling interest in Dana TM4 Inc., Dana TM4 Electric Holdings BV and Dana TM4 USA, LLC. The terms of the joint venture agreement provide Hydro-Québec with the right to put all, and not less than all, of its ownership interests in Dana TM4 Inc., Dana TM4 Electric Holdings BV and Dana TM4 USA, LLC to Dana at fair value. We estimate the fair value of the redemption value using an income-based approach based on discounted cash flow projections. In determining fair value using discounted cash flow projections, we make significant assumptions and estimates about the extent and timing of future cash flows, including revenue growth rates, projected EBITDA, discount rates, and terminal growth rates.

On May 6, 2024, Hydro-Québec provided Dana with its put notice. Subsequent to May 6, 2024, Dana will no longer attribute net income (loss) and other comprehensive income (loss) items of Dana TM4 Inc., Dana TM4 Electric Holdings BV and Dana TM4 USA, LLC to Hydro-Québec's redeemable noncontrolling interest. Closure of the transaction will proceed in accordance with the provisions of the shareholders agreement.

Reconciliation of changes in redeemable noncontrolling interests —

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Balance, beginning of period	$	197		$	206		$	191		$	195
Capital contribution from redeemable noncontrolling interests		9			7			18			17
Adjustment to redemption value		5						13			1
Comprehensive income (loss) adjustments:
Net income (loss) attributable to redeemable noncontrolling interests		(5	)		1			(13	)
Other comprehensive loss attributable to redeemable noncontrolling interests		(1	)		(1	)		(4	)
Balance, end of period	$	205		$	213		$	205		$	213