DANA Inc Goodwill & Intangibles Disclosure

Note 3.  Other Intangible Assets

 

Non-amortizable intangible assets — Our non-amortizable intangible assets include a portion of our trademarks and trade names. Non-amortizable trademarks and trade names consist of the Dana®, Spicer® and TM4® trademarks and trade names utilized in our Commercial Vehicle segment. We value trademarks and trade names using a relief from royalty method which is based on revenue streams. No impairment was recorded during the three years ended  December 31, 2025 in connection with the required annual assessment for trademarks and trade names.

 

Amortizable intangible assets — Our amortizable intangible assets include core technology and customer relationships. Core technology includes the proprietary know-how and expertise that is inherent in our products and manufacturing processes. Customer relationships include the established relationships with our customers and the related ability of these customers to continue to generate future recurring revenue and income. 

 

These assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. We group the assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the undiscounted future cash flows. We use our internal forecasts, which we update quarterly, to develop our cash flow projections. These forecasts are based on our knowledge of our customers’ production forecasts, our assessment of market growth rates, net new business, material and labor cost estimates, cost recovery agreements with customers and our estimate of savings expected from our restructuring activities. The most likely factors that would significantly impact our forecasts are changes in customer production levels and loss of significant portions of our business. Our valuation is applied over the life of the primary assets within the asset groups. If the undiscounted cash flows do not indicate that the carrying amount of the asset group is recoverable, an impairment charge is recorded if the carrying amount of the asset group exceeds its fair value based on discounted cash flow analyses or appraisals. There were no impairments recorded during the three years ended December 31, 2025.

  

Components of other intangible assets (excluding fully-amortized other intangible assets) —

 

						December 31, 2025												December 31, 2024
		Weighted
		Average				Gross				Accumulated				Net				Gross				Accumulated				Net
		Useful Life				Carrying				Impairment and				Carrying				Carrying				Impairment and				Carrying
		(years)				Amount				Amortization				Amount				Amount				Amortization				Amount
Amortizable intangible assets
Core technology			11			$	50			$	(32	)		$	18			$	47			$	(25	)		$	22
Customer relationships			10				67				(53	)			14				65				(45	)			20
Non-amortizable intangible assets
Trademarks and trade names							39								39				38								38
						$	156			$	(85	)		$	71			$	150			$	(70	)		$	80

 

The net carrying amounts of intangible assets attributable to each of our operating segments at December 31, 2025 were as follows: Light Vehicle Systems (Light Vehicle) – $8 and Commercial Vehicle Systems (Commercial Vehicle) – $63.

 

Amortization expense related to amortizable intangible assets —

 

		2025				2024				2023
Charged to cost of sales		$	5			$	5			$	8
Charged to amortization of intangibles			7				8				8
Total amortization		$	12			$	13			$	16

 

The following table provides the estimated aggregate pre-tax amortization expense related to intangible assets for each of the next five years based on  December 31, 2025 exchange rates. Actual amounts may differ from these estimates due to such factors as currency translation, customer turnover, impairments, additional intangible asset acquisitions and other events.

 

		2026				2027				2028				2029				2030
Amortization expense		$	11			$	10			$	6			$	3			$	2