DANA Inc

Note1. Organization and Summary of Significant Accounting Policies

General

Dana Incorporated (Dana) is headquartered in Maumee, Ohio and was incorporated in Delaware in2007. 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 on-highway vehicle manufacturer in the world.

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 shouldnot necessarily be taken as indicative of results that* maybe expected for the entire year. The financial information included herein should be read in conjunction with the consolidated financial statements in Item8* of our Annual Report on Form10-K for the year ended* December 31,* 2025 (the2025 Form10-K). Certain prior year amounts have been reclassified to conform to the current presentation.

On* January 1, 2026,we completed the previously announced sale of our Off-Highway business to Allison Transmission Holdings, Inc. The sale was consummated pursuant to the terms and conditions of the definitive agreement to sell that we entered in June 2025.A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has, or will have, a major effect on the entity’s operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Off-Highway business and determined that the conditions for discontinued operations presentation have been met. As such, the financial position, results of operations and cash flows of that business are reported as discontinued operations in the accompanying consolidated financial statements. Prior period amounts have been recast to reflect discontinued operations presentation. See Note2* for additional information.

Recently adopted accounting pronouncements

In* July 2025,the FASB issued ASU2025*-05, Financial Instruments-Credit Losses (Topic326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which introduces a practical expedient that allows entities to assume conditions existing at the balance-sheet date will remain constant over the remaining life of current accounts receivable and contract assets arising from revenue transactions. We adopted this ASU effective* January 1, 2026and elected to utilize the practical expedient. The adoption of this amendment didnot* have a material impact on our consolidated financial statements.

Recently issued accounting pronouncements

In* December 2025,the Financial Accounting Standards Board (FASB) issued ASU2025*-10, Government Grants (Topic832), which addresses the recognition, measurement, presentation and disclosure of government grants, including grants related to income and grants related to assets. The new guidance leverages the principles in the accounting framework for government assistance in IFRS, specifically IAS20, with certain targeted improvements. This ASU requires entities to recognize government grants only when it is probable that the entity will meet the stipulated grant conditions and ultimately receive the grant funds. This ASU providestwo acceptable methods for accounting for grants related to assets: the grant* maybe initially recognized as deferred income, or it maybe recorded as an adjustment to reduce the cost basis of the related asset. For grants related to income, the standard mandates that these shall be consistently recognized as deferred income. Deferred grants should be recognized in earnings on a systematic and rational basis either under a general heading such as other income or deducted from the related expense. The guidance is effective for annual reporting periods beginning after December 15, 2028,and interim reporting periods within those annual reporting periods; early adoption is permitted. We donot* expect this guidance to have a material impact on our consolidated financial statements and related disclosures.

In* November 2025,the FASB issued ASU2025*-09, Derivatives and Hedging (Topic815), which provides targeted amendments to better align U.S. GAAP with common risk management practices. The guidance simplifies cash flow hedge accounting for forecasted transactions primarily by allowing entities to hedge a broader group of risks using a single derivative. Additionally, the ASU expands the scope of qualifying hedged items to include certain nonfinancial components, creates an optional accounting model for "choose-your-rate" debt instruments, and eliminates the recognition mismatch for dual hedge strategies. The guidance is effective for annual reporting periods beginning after* December 15, 2026;early adoption is permitted. We donot* expect this guidance to have a material impact on our consolidated financial statements and related disclosures.

In* September 2025,the FASB issued ASU2025*-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic350-40): Targeted Improvements to the Accounting for Internal-Use Software, which eliminates the sequential software development-stage model and requires capitalization when management authorizes and commits to funding a software project and determines it is probable of completion. In evaluating whether it is probable the project will be completed, management is required to consider whether there is significant uncertainty associated with the development activities of the software. The guidance is effective for annual reporting periods beginning after* December 15, 2027,*and interim periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the impact of the guidance on the consolidated financial statements and related disclosures.

In* November 2024,the FASB issued ASU2024*-03, Disaggregation of Income Statement Expenses (Subtopic220-40), which requires public entities to disclose detailed components of income statement expenses, such as inventory purchases, employee compensation, depreciation and amortization within relevant expense captions. Companies are also required to explain amountsnot disaggregated and define and disclose total selling expenses. The guidance is effective for fiscal years beginning after* December 15, 2026,and interim periods beginning after December 15, 2027.*We are currently evaluating the impact of the guidance on our financial statement disclosures.

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