Dana Inc. Converts Debt with Cross-Currency Swaps

TL;DR

Dana Inc. locked in a 3.850% euro rate on April 2025 notes via swaps. Debt management move.

AI Summary

Dana Incorporated filed its 10-Q for the period ending September 30, 2024. The company entered into 8-year fixed-to-fixed cross-currency swaps related to its April 2025 Notes, effectively converting them to euro-denominated debt at a fixed rate of 3.850%. This filing provides details on financial instruments and hedging activities, including the reclassification of gains and losses from derivative instruments.

Why It Matters

This filing details how Dana Incorporated is managing its currency risk and interest rate exposure on its debt, which can impact its profitability and financial stability.

Risk Assessment

Risk Level: medium — The company's financial instruments and hedging activities introduce complexity and potential risks related to currency and interest rate fluctuations.

Key Numbers

• 3.850% — Fixed Euro-denominated Debt Rate (Achieved through cross-currency swaps on April 2025 Notes.)
• 8-year — Swap Term (Duration of the cross-currency swaps entered into.)

Key Players & Entities

• Dana Incorporated (company) — Filer of the 10-Q
• April 2025 Notes (dollar_amount) — Debt instrument subject to currency swaps
• 3.850% (dollar_amount) — Fixed interest rate after currency conversion

FAQ

Key Financial Figures

• $0.01 — Section 12(b) of the Act: Common stock $0.01 par value DAN New York Stock Exchan

Filing Documents

• dan20240930_10q.htm (10-Q) — 2496KB
• ex_718978.htm (EX-31.1) — 15KB
• ex_718979.htm (EX-31.2) — 12KB
• ex_718980.htm (EX-32) — 6KB
• 0001437749-24-032558.txt ( ) — 12192KB
• dan-20240930.xsd (EX-101.SCH) — 86KB
• dan-20240930_cal.xml (EX-101.CAL) — 71KB
• dan-20240930_def.xml (EX-101.DEF) — 531KB
• dan-20240930_lab.xml (EX-101.LAB) — 432KB
• dan-20240930_pre.xml (EX-101.PRE) — 574KB
• dan20240930_10q_htm.xml (XML) — 2951KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements 3 Consolidated Statement of Operations (Unaudited) 3 Consolidated Statement of Comprehensive Income (Unaudited) 4 Consolidated Balance Sheet (Unaudited) 5 Consolidated Statement of Cash Flows (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4

Controls and Procedures

Controls and Procedures 37

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 38 Item 1A

Risk Factors

Risk Factors 38 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 5 Other Information 38 Item 6 Exhibits 38

Signatures

Signatures 39 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Dana Incorporated Consolidated Statement of Operations (Unaudited) (In millions, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net sales $ 2,476 $ 2,669 $ 7,949 $ 8,061 Costs and expenses Cost of sales 2,231 2,433 7,205 7,325 Selling, general and administrative expenses 130 126 401 410 Amortization of intangibles 3 3 10 10 Restructuring charges, net 24 17 41 21 Gain (loss) on disposal group previously held for sale 4 ( 26 ) Other income (expense), net ( 4 ) 1 ( 4 ) 10 Earnings before interest and income taxes 88 91 262 305 Loss on extinguishment of debt ( 1 ) Interest income 4 5 10 14 Interest expense 40 41 118 114 Earnings before income taxes 52 55 154 204 Income tax expense 43 33 134 118 Equity in earnings of affiliates 2 3 7 6 Net income 11 25 27 92 Less: Noncontrolling interests net income 7 8 17 17 Less: Redeemable noncontrolling interests net loss ( 2 ) ( 13 ) ( 2 ) Net income attributable to the parent company $ 4 $ 19 $ 23 $ 77 Net income per share available to common stockholders Basic $ 0.03 $ 0.13 $ 0.16 $ 0.53 Diluted $ 0.03 $ 0.13 $ 0.16 $ 0.53 Weighted-average common shares outstanding Basic 145.0 144.3 144.9 144.2 Diluted 145.1 144.7 145.0 144.5 The accompanying notes are an integral part of the consolidated financial statements. 3 Table of Contents Dana Incorporated Consolidated Statement of Comprehensive Income (Unaudited) (In millions) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net income $ 11 $ 25 $ 27 $ 92 Other comprehensive income (loss), net of tax: Currency translation adjustments 14 ( 24 ) ( 52 ) ( 6 ) Hedging gains and

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) (In millions, except share and per share amounts) Note 1. Organization and Summary of Significant Accounting Policies General Dana Incorporated (Dana) is headquartered in Maumee, Ohio and was incorporated in Delaware in 2007. Dana is a global provider of high technology driveline (axles, driveshafts and transmissions); sealing and thermal-management products; and motors, power inverters, and control systems for electric vehicles with a customer base that includes virtually every major vehicle manufacturer in the global light vehicle, medium/heavy vehicle and off-highway markets. The terms "Dana," "we," "our" and "us," when used in this report, are references to Dana. These references include the subsidiaries of Dana unless otherwise indicated or the context requires otherwise. Summary of significant accounting policies Basis of presentation — Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. These statements are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the consolidated financial statements in Item 8 of our Annual Report on Form 10 -K for the year ended December 31, 2023 (the 2023 Form 10 -K). Certain prior year amounts have been reclassified to conform to the current presentation. Recently adopted accounting pronouncements We did not adopt any new accounting pronou ncements during the nine months ended September 30, 2024 . Recently issued accounting pronouncements We do not expect any recent

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