Meritor Acquisition and 2022 Financial Results slide image

Meritor Acquisition and 2022 Financial Results

Table of Contents Unfavorable foreign currency fluctuations, primarily in the Euro, Indian rupee and Chinese renminbi. Segment EBITDA Components segment EBITDA increased $166 million, mainly due to favorable pricing, improved mix and increased volumes (including axles and brakes since the completion of the Meritor acquisition), partially offset by higher material costs and Meritor acquisition and integration costs. Distribution Segment Results Financial data for the Distribution segment was as follows: In millions External sales Intersegment sales Total sales Research, development and engineering expenses Equity, royalty and interest income from investees Interest income Russian suspension costs (¹) Segment EBITDA Segment EBITDA as a percentage of total sales "NM" not meaningful information Favorable/(Unfavorable) Years ended December 31, 2022 vs. 2021 2021 vs. 2020 2022 2021 2020 Amount Percent Amount Percent $ 8,901 $ 7,742 $ 7,110 $ 1,159 15 % $ 632 % 28 30 26 (2) (7)% 4 15 % 8,929 7,772 7,136 1,157 15 % 636 9 % 52 48 31 (4) (8)% (17) (55)% 77 63 62 14 22 % 1 2 % 16 7 4 9 NM 3 75 % 54 54 NM ― % 888 731 665 157 21 % 66 10 % Percentage Points Percentage Points 9.9 % 9.4 % 9.3 % 0.5 0.1 (1) See NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information. Sales for our Distribution segment by region were as follows: In millions North America Asia Pacific Europe China Commonwealth of Independent States Africa and Middle East India Latin America Total sales Favorable/(Unfavorable) Years ended December 31, 2022 vs. 2021 2021 vs. 2020 2022 2021 2020 Amount Percent Amount $ 5,948 $ 4,912 $ 4,696 $ 1,036 21 % $ 216 Percent 5 % 1,016 906 805 110 12 % 101 13 % 720 650 598 70 11 % 52 9 % 355 330 346 25 8 % (16) (5)% 232 335 194 (103) (31)% 141 73 % 228 259 200 (31) (12)% 59 30 % 220 198 150 22 11 % 48 32 % 210 182 147 28 15 % 35 24 % $ 8,929 $ 7,772 $ 7,136 $ 1,157 15 % $ 636 9 % 44
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