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Note 2 - Discontinued Operations

9 Months Ended

Sep. 30, 2025

Discontinued Operations, Disposed of by Sale [Member]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 2. Discontinued Operations

In June 2025, we entered into a definitive agreement to sell our Off-Highway business to Allison Transmission Holdings, Inc. (Allison) for $2,732. The sale price is subject to adjustment based on net working capital and net indebtedness balances as of the closing date. The transaction is currently expected to close during the fourth quarter of 2025, subject to satisfaction of regulatory approvals and other customary conditions.

At closing of the transaction, Dana will enter into a transition services agreement, engineering services agreement, intellectual property and trademark license agreements, and certain supply agreements with Allison. Services to be provided by Dana under the transition services agreement include finance, information technology, human resources and certain other administrative services for periods up to 24 months.

The major classes of line items included in net income from discontinued operations are as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Net sales	$	625		$	619		$	1,888		$	2,103
Cost of sales		500			496			1,539			1,710
Selling, general and administrative expenses		23			24			78			73
Amortization of intangibles					1			2			4
Restructuring charges, net					4			2			5
Other income (expense), net		(7	)		2			(32	)		10
Earnings from discontinued operations before interest and income taxes		95			96			235			321
Interest income		1			(1	)		3			1
Interest expense		1			1			1			1
Earnings from discontinued operations before income taxes		95			94			237			321
Income tax expense		21			62			73			147
Net income from discontinued operations	$	74		$	32		$	164		$	174

During the three and nine months ended September 2025, we incurred $20 and $54, respectively, of Off-Highway business divestiture transaction related costs. These costs were attributed to discontinued operations and included in other income (expense), net in the table above.

The carrying amounts of the major classes of assets and liabilities of our Off-Highway business are as follows:

	September 30,		December 31,
	2025		2024
Accounts receivable - Trade	$	385	$	305
Accounts receivable - Other		40		41
Inventories		543		500
Other current assets		72		58
Current assets of disposal group held for sale	$	1,040	$	904

Goodwill	$	270	$	250
Intangibles		72		70
Deferred tax assets		90		64
Other noncurrent assets		46		71
Operating lease assets		43		37
Property, plant and equipment, net		454		384
Noncurrent assets of disposal group held for sale	$	975	$	876

Current portion of long-term debt	$	2	$	—
Accounts payable		431		402
Accrued payroll and employee benefits		80		60
Taxes on income		3
Current portion of operating lease liabilities		10		10
Other accrued liabilities		167		154
Current liabilities of disposal group held for sale	$	693	$	626

Long-term debt	$	32	$	2
Noncurrent operating lease liabilities		34		27
Pension and postretirement obligations		64		62
Other noncurrent liabilities		89		94
Noncurrent liabilities of disposal group held for sale	$	219	$	185