Document QgZ0g4Oj7jD8nZRzREQEYvKR

Dana Corporation Page 102 of 176 Table of Contents DCC has guaranteed portions of the borrowings of its affiliates that are accounted for under the equity method. DCC's aggregate exposure under one of the guarantees is $6. Under another guarantee, DCC's exposure for changes in interest rates resulting from specific events described in the financing arrangements would vary but should not exceed $32. Variable Interest Entities Included in the equity affiliates engaged in lease financing activities are certain affiliates that qualify as VIEs, where DCC is not the primary beneficiary. In addition, DCC has several leveraged lease investments that qualify as VIEs but are not required to be consolidated under FEN 46; accordingly, these leveraged leases have been "deconsolidated" and are now included with other investments in equity affiliates. Lastly, DCC has investments in a number of leveraged leases (through ownership interests in trusts) that qualify as VIEs that are required to be consolidated; accordingly, the classification of these leases in our financial statements has not changed. Following is summarized information relating to these investments as well as equity affiliates that qualify as VIEs: Investment in Equity Afflilates Lease financing assets $ 609 Total assets Total liabilities Total net worth DCC's share of net worth Revenue Total expenses Net income $ 803 169 $ 634 mmm $ 264 mmmm $ 71 50 $ 21 DCC's share of net income $ 13 Investment in Leveraged Leases Total minimum lease payments Residual values Nonrecourse debt service Unearned income Less -- Deferred income taxes Net investment in leveraged leases DCC's ownership interest in leases $1,443 91 (994) (196) 344 (234) $ 110 mmmm $ 56 The investment in equity affiliates that qualify as VIEs relate to investments in: power generation facilities, 12%; real estate, 24%; automotive lease portfolios, 16%; cruise ship, 25%; natural gas http://www.sec.gov/Archives/edgar/data/26780/000095015204001384/105571ael0vk.htm 8/1/2004