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Note 19 - Segments, Geographical Area and Major Customer Information
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 19.  Segments, Geographical Area and Major Customer Information

 

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’s Chairman and Chief Executive Officer is its chief operating decision maker (CODM).

 

Dana’s CODM 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 —

 

  

Light

  

Commercial

      

Power

         

2024

 

Vehicle

  

Vehicle

  

Off-Highway

  

Technologies

  

Corporate

  

Total

 

External sales

 $4,224  $2,005  $2,767  $1,288      $10,284 

Inter-segment sales

  187   112   65   25       389 
   4,411   2,117   2,832   1,313       10,673 

Reconciliation of sales

                        

Elimination of inter-segment sales

                      (389)

Total consolidated sales

                     $10,284 

Less:

                        

Cost of sales

  3,980   1,948   2,287   1,148         

Selling, general and administrative expenses

  122   98   141   74         

Other segment items (a)

  5   (4)  15   1         

Segment EBITDA

 $314  $67  $419  $92      $892 
                         

Purchases of property, plant and equipment

 $182  $68  $66  $46  $18  $380 

Segment net assets (b)

 $285  $358  $460  $188  $(71) $1,220 

 

  

Light

  

Commercial

      

Power

         

2023

 

Vehicle

  

Vehicle

  

Off-Highway

  

Technologies

  

Corporate

  

Total

 

External sales

 $4,035  $2,092  $3,185  $1,243      $10,555 

Inter-segment sales

  190   124   61   25       400 
   4,225   2,216   3,246   1,268       10,955 

Reconciliation of sales

                        

Elimination of inter-segment sales

                      (400)

Total consolidated sales

                     $10,555 

Less:

                        

Cost of sales

  3,866   2,034   2,627   1,108         

Selling, general and administrative expenses

  131   108   165   74         

Other segment items (a)

  (16)  13   11   3         

Segment EBITDA

 $212  $87  $465  $89      $853 
                         

Purchases of property, plant and equipment

 $184  $106  $65  $120  $26  $501 

Segment net assets (b)

 $339  $354  $485  $181  $(68) $1,291 

 

  

Light

  

Commercial

      

Power

         

2022

 

Vehicle

  

Vehicle

  

Off-Highway

  

Technologies

  

Corporate

  

Total

 

External sales

 $4,090  $1,979  $2,946  $1,141      $10,156 

Inter-segment sales

  166   110   64   28       368 
   4,256   2,089   3,010   1,169       10,524 

Reconciliation of sales

                        

Elimination of inter-segment sales

                      (368)

Total consolidated sales

                     $10,156 

Less:

                        

Cost of sales

  3,982   1,947   2,489   1,013         

Selling, general and administrative expenses

  115   104   135   63         

Other segment items (a)

  (1)  5   18   1         

Segment EBITDA

 $158  $43  $404  $94      $699 
                         

Purchases of property, plant and equipment

 $201  $67  $73  $64  $35  $440 

Segment net assets (b)

 $291  $305  $494  $143  $(88) $1,145 

 

(a)

Other segment items primarily include foreign exchange gains and losses, government assistance, export incentives and the benefit of utilizing non-refundable tax credits purchased at a discount.

(b)

Segment net assets include accounts receivable - trade, inventories and accounts payable.

 

Reconciliation of segment EBITDA to consolidated net income (loss) —

 

  

2024

  

2023

  

2022

 

Segment EBITDA

 $892  $853  $699 

Corporate expense and other items, net

  (7)  (8)  1 

Depreciation

  (401)  (393)  (365)

Amortization

  (21)  (23)  (23)

Non-service cost components of pension and OPEB costs

  (18)  (13)  (7)

Restructuring charges, net

  (76)  (25)  1 

Stock compensation expense

  (30)  (26)  (19)

Strategic transaction expenses

  (9)  (5)  (8)

Loss on sale of property, plant and equipment

  (6)  (1)  (2)

Loss on disposal group previously held for sale

  (26)        

Supplier capacity charge

  (46)        

Distressed supplier costs

      (44)    

Amounts attributable to previously divested/closed operations

  (9)      (2)

Impairment of goodwill

          (191)

Other items

  (17)  1   2 

Earnings before interest and income taxes

  226   316   86 

Loss on extinguishment of debt

      (1)    

Interest income

  15   17   11 

Interest expense

  161   154   128 

Earnings (loss) before income taxes

 $80  $178  $(31)

 

Reconciliation of segment net assets to consolidated total assets —

 

  

2024

  

2023

  

2022

 

Segment net assets

 $1,220  $1,291  $1,145 

Accounts payable

  1,522   1,756   1,838 

Cash and cash equivalents

  494   529   425 

Accounts receivable - Other

  261   280   202 

Other current assets

  206   247   219 

Goodwill

  250   263   259 

Intangibles

  150   182   201 

Deferred tax assets

  560   516   397 

Other noncurrent assets

  189   140   123 

Investments in affiliates

  126   123   136 

Operating lease assets

  293   327   311 

Property, plant and equipment, net

  2,214   2,311   2,193 

Total assets

 $7,485  $7,965  $7,449 

 

Geographic information — Of our 2024 consolidated net sales, the U.S., Italy, India, Brazil, Germany and China account for 45%, 14%, 6%, 5%, 5% and 4%, respectively. No other country accounted for 5% or more of our consolidated net sales during the past three years. Sales are attributed to the location of the product entity recording the sale. Long-lived assets represent property, plant and equipment and operating lease assets.

 

  

Net Sales

  

Long-Lived Assets

 
  

2024

  

2023

  

2022

  

2024

  

2023

  

2022

 

North America

                        

United States

 $4,675  $4,492  $4,668  $1,140  $1,203  $1,185 

Other North America

  295   260   255   213   221   187 

Total

  4,970   4,752   4,923   1,353   1,424   1,372 
                         

Europe

                        

Italy

  1,434   1,705   1,535   222   237   219 

Germany

  499   549   494   129   154   131 

Other Europe

  1,213   1,296   1,030   363   331   302 

Total

  3,146   3,550   3,059   714   722   652 
                         

South America

                        

Brazil

  527   488   606   90   119   102 

Other South America

  252   243   182   24   24   22 

Total

  779   731   788   114   143   124 
                         

Asia Pacific

                        

India

  581   634   554   172   173   183 

China

  438   503   484   88   106   105 

Other Asia Pacific

  370   385   348   66   70   68 

Total

  1,389   1,522   1,386   326   349   356 

Total

 $10,284  $10,555  $10,156  $2,507  $2,638  $2,504 

 

Sales to major customers — Ford and Stellantis N.V. were the only individual customers to whom sales have exceeded 10% of our consolidated sales in one or more of the past three years. Sales to Ford were $2,409 (23%) in 2024, $2,138 (20%) in 2023 and $1,978 (19%) in 2022. Sales to Stellantis N.V. (via a directed supply relationship) were $789 (8%) in 2024, $918 (9%) in 2023 and $1,166 (11%) in 2022.