Document Z251KKaDrzxBk3KR7yY1DJk7

Dana Corporation Page 148 of 176 Table of Contents are indicative of the reduced level of corporate expenses and interest expense anticipated following the sale of our automotive aftermarket business. The Other category includes businesses unrelated to the segments, trailing liabilities for closed plants and corporate administrative functions. For purposes of presenting operating PAT, Other also includes interest expense net of interest income, elimination of inter-segment income and adjustments to reflect the actual effective tax rate. In the net profit (loss) column, Other includes the net profit or loss of businesses not assigned to the segments and certain divested businesses (but not discontinued operations), minority interest in earnings and the tax differential. The following table reconciles the EBIT amount reported for our segments, excluding DCC, to our consolidated income (loss) before income taxes as presented in the consolidated statement of income. 2003 2002 2001 EBIT of continuing operations Restructuring and unusual items -- total operations Restructuring and unusual items -- discontinued operations Interest expense, excluding DCC Interest income, excluding DCC DCC pre-tax income $ 248 (1) 9 (160) 13 (28) $ 219 (246) 81 (175) 12 (5) $ 117 (466) 161 (200) 12 28 Income (loss) before income taxes $ 81 $(114) $(348) Restructuring and unusual items consist of the gains on sales of businesses discussed in Note 20 and the restructuring and other unusual charges discussed in Notes 21 and 23. The performance EBIT for 2003 excludes $7 of DCC-related transaction expenses recorded at the Dana parent level, the $15 of gains realized on note repurchases and $9 of additional charges associated with the Engine Management and Boston Weatherhead divestitures. An $8 profit from the sale of our Thailand structural products subsidiary is included in the EBIT of ASG because it represents the recovery of development costs previously expensed during the start-up of this operation. Because all elements of EBIT are taxed at 39% for purposes of calculating operating PAT, only $5 is included in ASG's operating PAT for this item despite its tax-free nature. Operating PAT reported by our continuing operations for 2003 excludes $9 of after-tax gains realized on the note repurchases, the $5 after-tax effect of the additional divestiture charges and $35 of net gains realized on the DCC asset sales. Unusual items excluded from performance measures in 2002 presented in the segment table and the EBIT reconciliation table includes charges related to our restructuring efforts and gains and losses on divestitures. The gains and losses recorded by DCC are not presented as unusual items excluded from performance measures in the preceding EBIT reconciliation table since we do not include DCC's results in EBIT for segment reporting. However, such pre-tax amounts are included within DCC's pre-tax income in the table. Expenses incurred in connection with our restructuring activities are included in the respective SBUs' 2003 operating results, as are credits to earnings resulting from the periodic adjustments of our http ://www. sec.gov/Archives/edgar/data/26780/000095015204001384/105571 ae 10vk.htm 8/1/2004