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Fair Value Measurements and Derivatives | 12 Months Ended
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Dec. 31, 2017
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 |  | December 31, 2017 |  | December 31, 2016
Available-for-sale securities |  | Marketable securities |  | 1 |  | $ | 5 |  |  | $ | 4 |
Available-for-sale securities |  | Marketable securities |  | 2 |  | 35 |  |  | 26 |
Currency forward contracts |  |  |  |  |  |  |  |
Cash flow hedges |  | Accounts receivable - Other |  | 2 |  | 1 |  |  | 2 |
Cash flow hedges |  | Other accrued liabilities |  | 2 |  | 5 |  |  | 4 |
Undesignated |  | Accounts receivable - Other |  | 2 |  | 1 |  |  | 1 |
Undesignated |  | Other accrued liabilities |  | 2 |  | 3 |  |  | 1 |
Currency swaps |  |  |  |  |  |  |  |
Cash flow hedges |  | Other noncurrent liabilities |  | 2 |  | 177 |  |  | 12 |
Undesignated |  | Other accrued liabilities |  | 2 |  | — |  |  | 3 |
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:
| 2017 |  | 2016
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Senior notes | $ | 1,500 |  |  | $ | 1,592 |  |  | $ | 1,550 |  |  | $ | 1,612 |
Term Facility | 275 |  |  | 275 |  |  | — |  |  | — |
Other indebtedness* | 29 |  |  | 22 |  |  | 120 |  |  | 101 |
Total | $ | 1,804 |  |  | $ | 1,889 |  |  | $ | 1,670 |  |  | $ | 1,713 |
* | The carrying value includes the unamortized portion of a fair value adjustment related to a terminated interest rate swap at both dates. The carrying value and fair value also include a financial liability associated with certain build-to-suit lease arrangements at both dates.
The fair value of our senior notes and Term Facility are estimated based upon a market approach (Level 2) while the fair value of our other indebtedness is based upon an income approach (Level 2). The fair value of the Term Facility approximates its carrying value as it is a floating-rate facility. See Note 14 for additional information about financing arrangements. Fair value measurements on a nonrecurring basis — Certain assets are measured at fair value on a nonrecurring basis. These are long-lived assets that are subject to fair value adjustments only in certain circumstances. These assets include intangible assets and property, plant and equipment which may be written down to fair value when they are held for sale or as a result of impairment. Interest rate derivatives — Our portfolio of derivative financial instruments periodically includes interest rate swaps designed to mitigate our interest rate risk. As of December 31, 2017, no fixed-to-floating interest rate swaps remain outstanding. However, a $6 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 December 31, 2017. 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. Approximately $1 was amortized as a reduction of interest expense during 2017. 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 eighteen 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. During the first quarter of 2017, in conjunction with the issuance of €281 of euro-denominated intercompany notes payable, issued by certain of our Luxembourg subsidiaries (the "Luxembourg Intercompany Notes") and payable to USD-functional Dana, Inc., we executed fixed-to-fixed cross-currency swaps with the same critical terms as the Luxembourg Intercompany Notes. The risk management objective of these swaps is to eliminate the variability in the functional-currency-equivalent cash flows due to changes in the euro / U.S. dollar exchange rates associated with the forecasted principal and interest payments. Additionally, during the first quarter of 2017, in conjunction with the issuance of an aggregate $15 of U.S. dollar-denominated short-term notes payable by one of our Brazilian subsidiaries (the "Brazilian Notes"), we executed fixed-to-fixed cross-currency swaps with the same critical terms as the Brazilian Notes to eliminate the variability in the functional-currency-equivalent cash flows due to changes in the U.S. dollar / Brazilian real exchange rates. During September 2017, the Brazilian Notes and the associated swaps were settled. During March 2017, in conjunction with the planned April 2017 issuance of the $400 of U.S. dollar-denominated April 2025 Notes by euro-functional Dana Financing Luxembourg S.à r.l., we executed fixed-to-fixed cross-currency swaps with the same critical terms as the April 2025 Notes to eliminate the variability in the functional-currency-equivalent cash flows due to changes in the U.S. dollar / euro exchange rates associated with the forecasted principal and interest payments. During May 2016, in conjunction with the issuance of the $375 of U.S. dollar-denominated June 2026 Notes by euro-functional Dana Financing Luxembourg S.à r.l., we executed fixed-to-fixed cross-currency swaps with the same critical terms as the June 2026 Notes to eliminate the variability in the functional-currency-equivalent cash flows due to changes in the U.S. dollar / euro 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 December 31, 2017:
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. In the event our ongoing assessment demonstrates that the critical terms of either the swaps or the underlying designated financial instruments have changed, or that there have been adverse developments regarding counterparty risk, we will use the long haul method to assess ineffectiveness of the hedging relationship. To the extent the swaps are no longer effective, changes in their fair values will be recorded in earnings. During 2017, deferred losses of $32 associated with all of the fixed-to-fixed cross-currency swaps were recorded in OCI and reflect the net impact of a $165 unfavorable change in the fair value of the swaps and a $133 reclassification from AOCI to earnings. The reclassification from AOCI to earnings represents an offset to a foreign exchange remeasurement gain on all of the designated debt instruments outstanding during the year ended December 31, 2017. The total notional amount of outstanding foreign currency forward contracts, involving the exchange of various currencies, was $306 at December 31, 2017 and $143 at December 31, 2016. The total notional amount of outstanding foreign currency swaps, including the fixed-to-fixed cross-currency swaps, was $1,112 at December 31, 2017 and $571 at December 31, 2016. The following currency derivatives were outstanding at December 31, 2017:
|  |  |  | Notional Amount (U.S. Dollar Equivalent)
Functional Currency |  | Traded Currency |  | Designated as Cash Flow Hedges |  | Undesignated |  | Total |  | Maturity
U.S. dollar |  | Mexican peso |  | $ | 109 |  |  |  |  |  | $ | 109 |  |  | Dec-18
Euro |  | U.S. dollar, Canadian dollar, Hungarian forint, British pound, Swiss franc, Indian rupee, Russian ruble, Chinese renminbi |  | 45 |  |  | 6 |  |  | 51 |  |  | Mar-19
British pound |  | U.S. dollar, Euro |  | 1 |  |  |  |  |  | 1 |  |  | Nov-18
Swedish krona |  | Euro, U.S. dollar |  | 29 |  |  |  |  |  | 29 |  |  | Feb-19
South African rand |  | U.S. dollar, Euro, Thai baht |  |  |  |  | 9 |  |  | 9 |  |  | Sep-18
Canadian dollar |  | U.S. dollar |  |  |  | 11 |  |  | 11 |  |  | Mar-19
Thai baht |  | U.S. dollar, Australian dollar |  |  |  | 31 |  |  | 31 |  |  | Dec-18
Brazilian real |  | U.S. dollar, Euro |  |  |  | 33 |  |  | 33 |  |  | Dec-18
Indian rupee |  | U.S. dollar, British pound, Euro |  |  |  |  | 32 |  |  | 32 |  |  | Jun-19
Total forward contracts |  |  |  | 184 |  |  | 122 |  |  | 306 |  |  |
U.S. dollar |  | Euro |  | 337 |  |  |  |  |  | 337 |  |  | Sep-23
Euro |  | U.S. dollar |  | 775 |  |  |  |  |  | 775 |  |  | Jun-26
Total currency swaps |  |  |  | 1,112 |  |  | — |  |  | 1,112 |  |  |
Total currency derivatives |  |  |  | $ | 1,296 |  |  | $ | 122 |  |  | $ | 1,418 |  |  |
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 income (expense), net in the period in which the changes occur. Realized gains and losses from currency-related forward contracts, including those that have been designated as cash flow hedges and those that have not been designated, are recognized in other income (expense), net. 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. During the first quarter of 2017, we designated the principal amount of an existing non-derivative Mexican peso-denominated intercompany note payable (the "MXN-denominated intercompany note") by Dana European Holdings Luxembourg S.à r.l. to Dana de Mexico Corporacion S. de R.L. de C.V., one of our Mexican subsidiaries, as a net investment hedge of the equivalent portion of the investment in the associated Mexican operations. At December 31, 2017, the principal amount of the MXN-denominated intercompany note is 1,465 Mexican pesos, or approximately $74. During 2017, we recorded a deferred loss of $2 in the CTA component of OCI associated with the MXN-denominated intercompany note. Amounts recorded in CTA remain deferred in AOCI until such time as the investments in the associated subsidiaries are substantially liquidated. Amounts to be reclassified to earnings — Deferred gains or losses associated with effective cash flow hedges of forecasted transactions are reported in AOCI and are reclassified to earnings in the same periods in which the underlying transactions affect earnings. Amounts expected to be reclassified to earnings assume no change in the current hedge relationships or to December 31, 2017 exchange rates. Deferred losses of $4 at December 31, 2017 are expected to be reclassified to earnings during the next twelve months, compared to deferred losses of $2 at December 31, 2016. Amounts reclassified from AOCI to earnings arising from the discontinuation of cash flow hedge accounting treatment were not material during 2017.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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