What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-07-31 compared with 2024-04-30 · 221 added, 68 removed, 684 unchanged (30% of the section changed)

4 unchanged sentences

Three Months Ended

Six Months Ended

$ 2,738 $ 2,748 $ 5,473 $ 5,392

Costs and expenses

Cost of sales

2,483 2,477 4,974 4,892

Selling, general and administrative expenses

132 144 271 284

Amortization of intangibles

3 unchanged sentences

Earnings before interest and income taxes

104 124 174 214

Loss on extinguishment of debt

Interest income

1 unchanged sentence

Earnings before income taxes

67 89 102 149

Income tax expense

1 unchanged sentence

Noncontrolling interests net income

Redeemable noncontrolling interests net loss

Redeemable noncontrolling interests net (loss) income

( 5 ) 1 ( 13 )

Net income attributable to the parent company

$ 16 $ 30 $ 19 $ 58

Net income per share available to common stockholders

$ 0.11 $ 0.21 $ 0.13 $ 0.40

Weighted-average common shares outstanding

145.0 144.3 144.9 144.1

145.1 144.4 144.9 144.3

The accompanying notes are an integral part of the consolidated financial statements.

3 unchanged sentences

Three Months Ended

Six Months Ended

$ 16 $ 36 $ 16 $ 67

Other comprehensive income (loss), net of tax:

Currency translation adjustments

( 46 ) ( 7 ) ( 66 ) 18

Hedging gains and losses

( 26 ) 3 ( 28 ) 18

Defined benefit plans

Other comprehensive income (loss)

Total comprehensive income (loss)

Other comprehensive (loss) income

( 68 ) ( 4 ) ( 89 ) 37

Total comprehensive (loss) income

( 52 ) 32 ( 73 ) 104

Comprehensive income attributable to noncontrolling interests

( 5 ) ( 5 ) ( 9 ) ( 9 )

Comprehensive loss attributable to redeemable noncontrolling interests

Comprehensive income (loss) attributable to the parent company

Comprehensive (loss) income attributable to the parent company

$ ( 51 ) $ 27 $ ( 65 ) $ 95

51 unchanged sentences

(In millions)

Three Months Ended

Six Months Ended

Operating activities

Amortization of deferred financing charges

Write-off of deferred financing costs

Earnings of affiliates, net of dividends received

3 unchanged sentences

Change in working capital

( 195 ) ( 172 )

Loss on disposal group held for sale

Net cash used in operating activities

Net cash provided by operating activities

Investing activities

Purchases of property, plant and equipment

( 181 ) ( 242 )

Proceeds from sale of property, plant and equipment

1 unchanged sentence

Net cash used in investing activities

( 177 ) ( 245 )

Financing activities

Net change in short-term debt

Proceeds from long-term debt

Repayment of long-term debt

( 30 ) ( 204 )

Deferred financing payments

Dividends paid to common stockholders

( 29 ) ( 29 )

Distributions to noncontrolling interests

1 unchanged sentence

Contributions from redeemable noncontrolling interests

Net cash provided by financing activities

Net decrease in cash, cash equivalents and restricted cash

Net cash (used in) provided by financing activities

Net (decrease) increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash – beginning of period

39 unchanged sentences

Recently adopted accounting pronouncements

We did not adopt any new accounting pronou ncements during the three months ended March 31, 2024 .

We did not adopt any new accounting pronou ncements during the six months ended June 30, 2024 .

Recently issued accounting pronouncements

3 unchanged sentences

The guidance becomes effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

We are currently evaluating the impact of the guidance on our financial statement disclosures.

Adoption of this update will have no impact on our financial statements.

We will update our segment disclosure to conform with this update in our 2024 Form 10 -K.

In December 2023, the FASB issued ASU 2023 - 09, Improvements to Income Tax Disclosures.

8 unchanged sentences

We classified the disposal group as held for sale, recognizing a $ 30 loss to adjust the carrying value of net assets to fair value less estimated costs to sell.

The sale is expected to close during the second quarter of 2024.

The sale is expected to close during the second half of 2024.

The carrying amounts of the major classes of assets and liabilities of our European hydraulics business are as follows:

10 unchanged sentences

Pension and postretirement obligations 3

Other noncurrent liabilities 1

Noncurrent liabilities of disposal group held for sale $ 4

4 unchanged sentences

Currency impact

Balance, March 31, 2024

Balance, June 30, 2024

Components of other intangible assets —

March 31, 2024

June 30, 2024

December 31, 2023

17 unchanged sentences

Net carrying amounts of intangible assets, other than goodwill, attributable to each of our operating segments—

March 31, 2024

June 30, 2024

Light Vehicle

3 unchanged sentences

Three Months Ended

Six Months Ended

Charged to cost of sales

$ 2 $ 2 $ 4 $ 4

Charged to amortization of intangibles

Total amortization

$ 6 $ 6 $ 11 $ 11

Restructuring of Operations

1 unchanged sentence

Restructuring expense includes costs associated with current and previously announced actions and is comprised of contractual and noncontractual separation costs and exit costs.

During the first quarter of 2024 , our restructuring charges were primarily comprised of separation costs related to the rationalization of the global administrative and functional services that support our manufacturing and assembly facilities and technical centers.

During the second quarter and first six months of 2024 , our restructuring charges were primarily comprised of separation costs related to the rationalization of the global administrative and functional services that support our manufacturing and assembly facilities and technical centers and realignment activities associated with our manufacturing footprint.

Accrued restructuring costs and activity —

Employee Termination Benefits

Balance, March 31, 2024

$ 10 $ — $ 10

Charges to restructuring

Cash payments

( 3 ) ( 3 ) ( 6 )

Balance, June 30, 2024

$ 16 $ — $ 16

Balance, December 31, 2023

3 unchanged sentences

( 5 ) ( 6 ) ( 11 )

Balance, March 31, 2024

Balance, June 30, 2024

$ 16 $ — $ 16

At March 31, 2024 , the accrued employee termination benefits include costs to reduce approximately 300 employees to be complet ed over the next year.

At June 30, 2024 , the accrued employee termination benefits include costs to reduce approximately 500 e mployees to be complet ed over the next year.

Supplemental Balance Sheet and Cash Flow Information

Supplier finance programs —

As of March 31, 2024 and December 31, 2023, we had $ 74 and $ 69 , respectively, of confirmed obligations subject to supplier finance programs presented as accounts payable within total current liabilities on the consolidated balance sheet.

As of June 30, 2024 and December 31, 2023 , we had $ 73 and $ 69 , respectively, of confirmed obligations subject to supplier finance programs presented as accounts payable within total current liabilities on the consolidated balance sheet.

Inventory components —

March 31, 2024

June 30, 2024

December 31, 2023

3 unchanged sentences

Cash, cash equivalents and restricted cash —

March 31, 2024

June 30, 2024

December 31, 2023

March 31, 2023

June 30, 2023

December 31, 2022

6 unchanged sentences

Stockholders’ Equity

Common stock — Our Board of Directors declared a cash dividend of ten cents per share of common stock in the first quarter of 2024.

Common stock — Our Board of Directors declared a cash dividend of ten cents per share of common stock in the first and second quarters of 2024.

Dividends accrue on restricted stock units (RSUs) granted under our stock compensation program and will be paid in cash or additional units when the underlying units vest.

12 unchanged sentences

Distributions to noncontrolling interests

Redeemable noncontrolling interest adjustment to redemption value

Redeemable noncontrolling interests adjustment to redemption value

Stock compensation

2 unchanged sentences

$ 2 $ 2,260 $ 297 $ ( 13 ) $ ( 1,007 ) $ 65 $ 1,604

Other comprehensive loss

( 67 ) ( 67 )

Common stock dividends and dividend equivalents

( 15 ) ( 15 )

Distributions to noncontrolling interests

Redeemable noncontrolling interests adjustment to redemption value

Stock compensation

Balance, June 30, 2024

$ 2 $ 2,267 $ 293 $ ( 13 ) $ ( 1,074 ) $ 69 $ 1,544

Additional Paid-In Capital

9 unchanged sentences

Distributions to noncontrolling interests

Redeemable noncontrolling interest adjustment to redemption value

Redeemable noncontrolling interests adjustment to redemption value

Stock compensation

2 unchanged sentences

$ 2 $ 2,237 $ 333 $ ( 8 ) $ ( 961 ) $ 55 $ 1,658

Other comprehensive loss

Common stock dividends and dividend equivalents

( 14 ) ( 14 )

Distributions to noncontrolling interests

Stock compensation

Balance, June 30, 2023

$ 2 $ 2,244 $ 349 $ ( 8 ) $ ( 964 ) $ 58 $ 1,681

Changes in each component of accumulated other comprehensive income (loss) (AOCI) of the parent —

15 unchanged sentences

$ ( 884 ) $ 18 $ ( 141 ) $ ( 1,007 )

Currency translation adjustments

( 45 ) ( 45 )

Holding gains and losses

( 23 ) ( 23 )

Reclassification of amount to net income (a)

Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)

Other comprehensive income (loss)

( 45 ) ( 26 ) 4 ( 67 )

Balance, June 30, 2024

$ ( 929 ) $ ( 8 ) $ ( 137 ) $ ( 1,074 )

Parent Company Stockholders

7 unchanged sentences

Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)

Other comprehensive income (loss)

Other comprehensive income

Balance, March 31, 2023

$ ( 871 ) $ 36 $ ( 126 ) $ ( 961 )

Currency translation adjustments

Holding gains and losses

Reclassification of amount to net income (a)

Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b)

Other comprehensive income (loss)

( 6 ) 3 — ( 3 )

Balance, June 30, 2023

$ ( 877 ) $ 39 $ ( 126 ) $ ( 964 )

(a) Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments treated as cash flow hedges are reclassified from AOCI into the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded.

4 unchanged sentences

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.

Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the redeemable noncontrolling interest balances adjusted for comprehensive income (loss) items and distributions or the redemption value.

Redeemable noncontrolling interest adjustments of redemption value are recorded in retained earnings.

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

Balance, beginning of period

$ 197 $ 206 $ 191 $ 195

Capital contribution from redeemable noncontrolling interests

1 unchanged sentence

Comprehensive income (loss) adjustments:

Net loss attributable to redeemable noncontrolling interests

Other comprehensive income (loss) attributable to redeemable noncontrolling interests

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

Earnings per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

Net income available to common stockholders - Numerator basic and diluted

$ 16 $ 30 $ 19 $ 58

Weighted-average common shares outstanding - Basic

145.0 144.3 144.9 144.1

Employee compensation-related shares

0.1 0.1 — 0.2

Weighted-average common shares outstanding - Diluted

145.1 144.4 144.9 144.3

The share count for diluted earnings per share is computed on the basis of the weighted-average number of common shares outstanding plus the effects of dilutive common stock equivalents (CSEs) outstanding during the period.

We excluded 2.2 million and 0.2 million CSEs from the calculation of diluted earnings per share for the first quarters of 2024 and 2023 as the effect of including them would have been anti-dilutive.

We excluded 0.2 million and 2.0 million CSEs from the calculation of diluted earnings per share for the second quarters of 2024 and 2023 and excluded 2.1 million and 0.3 million of CSEs for the respective year-to-date periods as the effect of including them would have been anti-dilutive.

Stock Compensation

The Compensation Committee of our Board of Directors approved the grant of RSUs and performance share units (PSUs) shown in the table below during 2024 .

The Compensation Committee of our Board of Directors approved the grant of RSUs and performance share units (PSUs) shown in the table below during the six months ended June 30, 2024 .

(In millions)

9 unchanged sentences

The estimated volatility of 47.7 % was based on observed historical volatility of daily stock returns for the 3 -year period preceding the grant date.

During 2024 , we paid $ 2 of cash to settle RSUs and issued 0.9 million shares of common stock based on the vesting of RSUs.

We recognized stock compensation expense of $ 6 in both the first quarter of 2024 and 2023 .

At March 31, 2024 , the total unrecognized compensation cost related to the nonvested awards granted and expected to vest was $ 49 .

During the six months ended June 30, 2024 , we paid $ 2 of cash to settle RSUs and issued 0.9 million shares of common stock based on the vesting of RSUs.

We recognized stock compensation expense of $ 8 in both the second quarters of 2024 and 2023 and expense of $ 14 during both respective year-to-date periods.

At June 30, 2024 , the total unrecognized compensation cost related to the nonvested awards granted and expected to vest was $ 42 .

This cost is expected to be recognized over a weighted-average period of 1.9 years.

3 unchanged sentences

Components of net periodic benefit cost (credit) —

Three Months Ended March 31,

Three Months Ended June 30,

Interest cost

2 unchanged sentences

( 8 ) ( 1 ) ( 7 ) ( 1 )

Amortization of net actuarial (gain) loss

Amortization of net actuarial loss (gain)

Net periodic benefit (credit) cost

$ ( 1 ) $ 4 $ 2 $ 4 $ — $ ( 1 )

Net periodic benefit cost

Six Months Ended June 30,

Interest cost

$ 13 $ 7 $ 14 $ 6 $ 1 $ 1

Expected return on plan assets

( 15 ) ( 2 ) ( 15 ) ( 2 )

Amortization of net actuarial loss (gain)

3 4 ( 1 ) ( 2 )

Net periodic benefit cost (credit)

$ 1 $ 8 $ 3 $ 7 $ — $ ( 1 )

The service cost components of net periodic pension and OPEB costs are included in cost of sales and selling, general and administrative expenses as part of compensation cost and are eligible for capitalization in inventory and other assets.

3 unchanged sentences

Interest Rate

March 31, 2024

June 30, 2024

December 31, 2023

45 unchanged sentences

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 May 1, 2024, we may redeem up to 40% of the aggregate principal amount of the September 2030 Notes in an amount not to exceed the amount of proceeds of one or more equity offerings, at a price equal to 104.250 % of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, provided that at least 50 % of the aggregate principal amount of the September 2030 Notes remains outstanding after the redemption.

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.

27 unchanged sentences

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 March 31, 2024 , we had $ 15 of outstanding borrowings under the Revolving Facility and had utilized $ 9 for letters of credit.

We had availability at March 31, 2024 under the Revolving Facility of $ 1,126 after deducting the outstanding letters of credit.

Debt covenants — At March 31, 2024 , we were in compliance with the covenants of our financing agreements.

At June 30, 2024 , we had no outstanding borrowings under the Revolving Facility and had utilized $ 9 for letters of credit.

We had availability at June 30, 2024 under the Revolving Facility of $ 1,141 after deducting the outstanding letters of credit.

Debt covenants — At June 30, 2024 , 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.

5 unchanged sentences

Fair Value Level

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Currency forward contracts

13 unchanged sentences

Fair value of financial instruments — The financial instruments that are not carried in our balance sheets at fair value are as follows:

March 31, 2024

June 30, 2024

December 31, 2023

10 unchanged sentences

The impact of the interest rate differential between the inflow and outflow rates on fixed-to-fixed cross-currency swaps is recognized during each period as a component of interest expense for hedges of external debt and as a component of other income (expense), net for hedges of intercompany debt.

The following fixed-to-fixed cross-currency swaps were outstanding at March 31, 2024 :

The following fixed-to-fixed cross-currency swaps were outstanding at June 30, 2024 :

Underlying Financial Instrument

17 unchanged sentences

To the extent the swaps are no longer effective, changes in their fair values will be recorded in earnings.

The total notional amount of outstanding foreign currency forward contracts, involving the exchange of various currencies, was $ 947 at March 31, 2024 and $ 776 at December 31, 2023 .

The total notional amount of outstanding foreign currency swaps, including the fixed-to-fixed cross-currency swaps, was $ 970 at March 31, 2024 and $ 981 at December 31, 2023 .

The following currency derivatives were outstanding at March 31, 2024 :

The total notional amount of outstanding foreign currency forward contracts, involving the exchange of various currencies, was $ 1,014 at June 30, 2024 and $ 776 at December 31, 2023 .

The total notional amount of outstanding foreign currency swaps, including the fixed-to-fixed cross-currency swaps, was $ 967 at June 30, 2024 and $ 981 at December 31, 2023 .

The following currency derivatives were outstanding at June 30, 2024 :

Notional Amount (U.S.

2 unchanged sentences

Traded Currency

Mexican peso, Thai baht, Indian rupee

$ 307 $ 36 $ 343 Mar-2025

Chinese renminbi, Indian rupee, Mexican peso, Thai baht, South African rand

$ 426 $ 21 $ 447 Sep-2025

dollar, Australian dollar, Swiss franc, Chinese renminbi, British pound, Hungarian forint, Indian rupee, Mexican peso, Norwegian krone, Swedish krona, South African rand

293 32 325 Sep-2027

British pound

4 5 9 Dec-2024

dollar, euro, British pound

97 97 Jun-2025

Brazilian real

56 6 62 Mar-2025

South African rand

dollar, euro, Thai baht

11 11 May-2024

26 26 Apr-2024

21 21 Aug-2024

Canadian dollar

1 17 18 Oct-2024

Brazilian real

6 10 16 Nov-2024

British pound

6 7 13 Mar-2025

dollar, euro, British pound

129 129 Jun-2025

Chinese renminbi

dollar, euro, Canadian dollar

Swedish krona

Australian dollar

Total forward contracts

788 226 1,014

298 181 479 Nov-2027

10 unchanged sentences

Deferred Gain (Loss) in AOCI

March 31, 2024

June 30, 2024

December 31, 2023

6 unchanged sentences

Three Months Ended

Six Months Ended

Derivatives Designated as Cash Flow Hedges

2 unchanged sentences

Cost of sales

2,483 2,477 4,974 4,892

Other income (expense), net

3 unchanged sentences

Cost of sales

( 7 ) ( 8 ) ( 16 ) ( 13 )

Other income (expense), net

4 ( 3 ) 15 ( 5 )

Cross-currency swaps

1 unchanged sentence

Other income (expense), net

( 4 ) 5 ( 18 ) 12

The amounts reclassified from AOCI into income for the cross-currency swaps represent an offset to a foreign exchange loss on our foreign currency-denominated intercompany and external debt instruments.

4 unchanged sentences

Three Months Ended

Six Months Ended

Derivatives Not Designated as Hedging Instruments

2 unchanged sentences

Cost of sales

$ 2 $ 1 $ 2 $ —

Other income (expense), net

( 1 ) ( 10 ) 1 ( 7 )

Net investment hedges — We periodically designate derivative contracts or underlying non-derivative financial instruments as net investment hedges.

1 unchanged sentence

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 second quarter of 2024, we entered into foreign currency forwards with a notional value of $ 100 that we designated as a net investment hedge of the foreign currency exposure related to a China renminbi denominated subsidiary.

These forwards will mature in September 2025.

Commitments and Contingencies

Environmental liabilities — Accrued environmental liabilities were $ 6 both at March 31, 2024 and December 31, 2023 .

Environmental liabilities — Accrued environmental liabilities were $ 5 and $ 6 at June 30, 2024 and December 31, 2023 .

We consider the most probable method of remediation, current laws and regulations and existing technology in estimating our environmental liabilities.

14 unchanged sentences

Three Months Ended

Six Months Ended

Balance, beginning of period

$ 115 $ 108 $ 116 $ 108

Amounts accrued for current period sales

4 unchanged sentences

Balance, end of period

$ 117 $ 106 $ 117 $ 106

We estimate the effective tax rate expected to be applicable for the full fiscal year and use that rate to provide for income taxes in interim reporting periods.

4 unchanged sentences

Net interest expense for the periods presented herein is not significant.

We reported i ncome tax expense of $ 37 and $ 30 for the first quarter of 2024 and 2023, respectively.

Our effective tax rates were 106 % and 50 % for the first three months ended March 31, 2024 and 2023 .

During the first quarter of 2024, we recorded tax expense of $ 11 for valuation allowances related to foreign locations.

We reported i ncome tax expense of $ 54 and $ 55 for the second quarters of 2024 and 2023 and income tax expense of $ 91 and $ 85 for the respective year-to-date periods.

Our effective tax rates were 89 % and 57 % for the six months ended June 30, 2024 and 2023 .

During the first six months of 2024, we recorded tax expense of $ 11 for valuation allowances related to foreign jurisdictions and tax expense of $ 11 due to revisions in our assertions on unremitted earnings in foreign jurisdictions.

During the second quarter of 2023, we recorded tax expense of $ 19 for income tax reserves associated with prior tax years in foreign jurisdictions.

Our effective income tax rates vary from the U.S.

4 unchanged sentences

Three Months Ended

Six Months Ended

Non-service cost components of pension and OPEB costs

2 unchanged sentences

Foreign exchange gain (loss)

( 5 ) ( 3 ) ( 4 ) 1

Strategic transaction expenses

( 2 ) ( 1 ) ( 4 ) ( 2 )

Other income (expense), net

$ ( 2 ) $ 4 $ — $ 9

Foreign exchange gains and losses on cross-currency intercompany loan balances that are not of a long-term investment nature are included above.

1 unchanged sentence

Strategic transaction expenses relate primarily to costs incurred in connection with acquisition and divestiture related activities, including costs to complete the transaction and post-closing integration costs, and other strategic initiatives.

Strategic transaction expenses in the three months ended March 31, 2024 and 2023 were primarily attributable to investigating potential acquisitions and business ventures and other strategic initiatives.

Strategic transaction expenses in the six months ended June 30, 2024 and 2023 were primarily attributable to investigating potential acquisitions and business ventures and other strategic initiatives.

Revenue from Contracts with Customers

12 unchanged sentences

We evaluate the amounts capitalized each period for recoverability and expense any amounts that are no longer expected to be recovered.

We had $ 5 and $ 5 recorded in other current assets and $ 33 and $ 34 recorded in other noncurrent assets at March 31, 2024 and December 31, 2023 .

We had $ 6 and $ 5 recorded in other current assets and $ 29 and $ 34 recorded in other noncurrent assets at June 30, 2024 and December 31, 2023 .

Certain of our customer contracts include rebate incentives.

5 unchanged sentences

Generally, our contract liabilities turn over frequently given our relatively short production cycles.

Contract liabilities were $ 57 and $ 50 at March 31, 2024 and December 31, 2023 .

Contract liabilities were $ 39 and $ 50 at June 30, 2024 and December 31, 2023 .

Contract liabilities are included in other accrued liabilities on our consolidated balance sheets.

2 unchanged sentences

Three Months Ended

Six Months Ended

Light Vehicle

North America

$ 758 $ 728 $ 1,513 $ 1,368

160 142 309 274

South America

76 59 138 112

138 137 270 274

$ 1,132 $ 1,066 $ 2,230 $ 2,028

Commercial Vehicle

North America

$ 297 $ 290 $ 590 $ 577

74 83 158 164

South America

117 98 226 201

$ 527 $ 526 $ 1,051 $ 1,048

North America

$ 94 $ 89 $ 186 $ 186

492 593 1,017 1,166

South America

154 154 313 322

$ 746 $ 842 $ 1,527 $ 1,684

Power Technologies

North America

$ 193 $ 159 $ 380 $ 318

114 129 231 263

South America

$ 333 $ 314 $ 665 $ 632

North America

$ 1,342 $ 1,266 $ 2,669 $ 2,449

840 947 1,715 1,867

South America

205 171 389 339

351 364 700 737

$ 2,738 $ 2,748 $ 5,473 $ 5,392

We are a global provider of high technology products to virtually every major vehicle manufacturer in the world.

13 unchanged sentences

Segment information —

Three Months Ended March 31,

Three Months Ended June 30,

External Sales

14 unchanged sentences

$ 2,738 $ — $ 245 $ 2,748 $ — $ 244

Six Months Ended June 30,

Light Vehicle

$ 2,230 $ 99 $ 151 $ 2,028 $ 98 $ 115

Commercial Vehicle

1,051 57 40 1,048 63 45

1,527 33 231 1,684 33 249

Power Technologies

665 12 49 632 14 42

Eliminations and other

( 201 ) ( 208 )

$ 5,473 $ — $ 471 $ 5,392 $ — $ 451

Reconciliation of segment EBITDA to consolidated net income —

Three Months Ended

Six Months Ended

Segment EBITDA

$ 245 $ 244 $ 471 $ 451

Corporate expense and other items, net

( 1 ) ( 1 ) ( 4 ) ( 4 )

( 106 ) ( 94 ) ( 207 ) ( 186 )

( 6 ) ( 6 ) ( 11 ) ( 11 )

Non-service cost components of pension and OPEB costs

( 2 ) ( 3 ) ( 6 ) ( 6 )

Restructuring charges, net

( 12 ) ( 3 ) ( 17 ) ( 4 )

Stock compensation expense

( 8 ) ( 8 ) ( 14 ) ( 14 )

Strategic transaction expenses

( 2 ) ( 1 ) ( 4 ) ( 2 )

Distressed supplier costs

Loss on disposal group held for sale

( 3 ) ( 4 ) 2

Earnings before interest and income taxes

104 124 174 214

Loss on extinguishment of debt

Interest income

1 unchanged sentence

Earnings before income taxes

67 89 102 149

Income tax expense

Equity in earnings of affiliates

$ 16 $ 36 $ 16 $ 67

Equity Affiliates

We have a number of investments in entities that engage in the manufacture and supply of vehicular parts (primarily axles, axle housings and driveshafts).

Equity method investments at March 31, 2024 —

Equity method investments at June 30, 2024 —

Ownership Percentage

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements