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v3.25.3

Note 12 - Financing Agreements | 9 Months Ended
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Sep. 30, 2025
Notes to Financial Statements |
Debt Disclosure [Text Block] | Note 12. Financing Agreements Long-term debt at —
|  | Interest Rate |  |  | September 30, 2025 |  |  | December 31, 2024 |
Senior Notes due April 15, 2025 |  |  | 5.750 | % | * | $ | — |  |  | $ | 200 |
Senior Notes due November 15, 2027 |  |  | 5.375 | % |  |  | 400 |  |  |  | 400 |
Senior Notes due June 15, 2028 |  |  | 5.625 | % |  |  | 400 |  |  |  | 400 |
Senior Euro Notes due July 15, 2029 |  |  | 3.000 | % |  |  | 381 |  |  |  | 337 |
Senior Notes due September 1, 2030 |  |  | 4.250 | % |  |  | 400 |  |  |  | 400 |
Senior Euro Notes due July 15, 2031 |  |  | 8.500 | % |  |  | 499 |  |  |  | 440 |
Senior Notes due February 15, 2032 |  |  | 4.500 | % |  |  | 350 |  |  |  | 350 |
Other indebtedness |  |  |  |  |  |  | 174 |  |  |  | 93 |
Debt issuance costs |  |  |  |  |  |  | (17 | ) |  |  | (19 | )
|  |  |  |  |  |  | 2,587 |  |  |  | 2,601 |
Less: Current portion of long-term debt |  |  |  |  |  |  | 22 |  |  |  | 214 |
Long-term debt, less debt issuance costs |  |  |  |  |  | $ | 2,565 |  |  | $ | 2,387 |
* | In conjunction with the issuance of the April 2025 Notes, we entered into 8-year fixed-to-fixed cross-currency swaps which had the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of 3.850%. See Note 13 for additional information.
Interest on the senior notes is payable semi-annually. Other indebtedness includes borrowings from various financial institutions and finance lease obligations. Senior notes activity — On April 15, 2025, Dana retired its remaining April 2025 Notes. Senior notes redemption provisions — We may redeem some or all of the senior notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date, if redeemed during the 12-month period commencing on the anniversary date of the senior notes in the year set forth below:
|  | Redemption Price |
|  | November |  |  | June |  |  | July |  |  | September |  |  | July |  |  | February |
Year |  | 2027 Notes |  |  | 2028 Notes |  |  | 2029 Notes |  |  | 2030 Notes |  |  | 2031 Notes |  |  | 2032 Notes |
2024 |  |  | 100.000 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2025 |  |  | 100.000 | % |  |  | 100.000 | % |  |  | 100.750 | % |  |  |  |  |  |  |  |  |  |  |  |
2026 |  |  | 100.000 | % |  |  | 100.000 | % |  |  | 100.000 | % |  |  | 102.125 | % |  |  | 104.250 | % |  |  |  |
2027 |  |  |  |  |  |  | 100.000 | % |  |  | 100.000 | % |  |  | 101.417 | % |  |  | 102.125 | % |  |  | 102.250 | %
2028 |  |  |  |  |  |  |  |  |  |  | 100.000 | % |  |  | 100.708 | % |  |  | 100.000 | % |  |  | 101.500 | %
2029 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100.000 | % |  |  | 100.000 | % |  |  | 100.750 | %
2030 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100.000 | % |  |  | 100.000 | %
2031 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100.000 | %
Prior to May 1, 2026, we may redeem some or all of the September 2030 Notes at a redemption price equal to 100% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a “make-whole” premium. We have not separated the make-whole premium from the underlying debt instrument to account for it as a derivative instrument as the economic characteristics and the risks of this embedded derivative are clearly and closely related to the economic characteristics and risks of the underlying debt. At any time prior to July 15, 2026, we may redeem up to 40% of the aggregate principal amount of the July 2031 Notes in an amount not to exceed the amount of proceeds of one or more equity offerings, at a price equal to 108.500% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, provided that at least 50% of the aggregate principal amount of the July 2031 Notes remain outstanding after the redemption. Prior to July 15, 2026, we may also redeem some or all of the July 2031 Notes at a redemption price equal to 100% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a “make-whole” premium. We have not separated the make-whole premium from the underlying debt instrument to account for it as a derivative instrument as the economic characteristics and the risks of this embedded derivative are clearly and closely related to the economic characteristics and risks of the underlying debt. Prior to February 15, 2027, we may redeem some or all of the February 2032 Notes at a redemption price equal to 100% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a “make-whole” premium. We have not separated the make-whole premium from the underlying debt instrument to account for it as a derivative instrument as the economic characteristics and the risks of this embedded derivative are clearly and closely related to the economic characteristics and risks of the underlying debt. Credit agreement — On July 31, 2025, we amended our credit and guaranty agreement to include a $250 Term A Facility. Borrowings under the Term A Facility bear interest at a floating rate based on Term Secured Overnight Financing Rate ("SOFR") (as described in the credit agreement) plus a margin. The Term A Facility matures at the earlier of five business days after the consummation of the Off-Highway business sale or July 30, 2026. We are required to make quarterly installments on the Term A Facility on the last day of each quarter commencing on December 31, 2025 in an amount equal to 10% of the original amount borrowed adjusted for any prepayments. On July 31, 2025, we fully drew the Term A Facility and used the proceeds to pay down outstanding borrowings on our Revolving Facility. Deferred financing costs on our Revolving Facility are included in other noncurrent assets and are being amortized over the life of the Revolving Facility. Each the Revolving Facility and Term A Facility is guaranteed by all of our wholly-owned domestic subsidiaries subject to certain exceptions (the guarantors) and is secured by a first-priority lien on substantially all of the assets of Dana and the guarantors, subject to certain exceptions. Advances under the Revolving Facility bear interest at a floating rate based on, at our option, the base rate or the SOFR (each as described in the credit agreement) plus a margin as set forth below:
|  | Margin |
Total Net Leverage Ratio |  | Base Rate |  |  | SOFR 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 | %
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 SOFR 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. At September 30, 2025, we had $375 of outstanding borrowings under the Revolving Facility and had utilized $10 for letters of credit. We had availability at September 30, 2025 under the Revolving Facility of $765 after deducting outstanding borrowings and letters of credit. Debt covenants — At September 30, 2025, we were in compliance with the covenants of our financing agreements. Under the 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 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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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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