Management's discussion and analysis of financial condition and results of operations should be read in conjunction with  the financial statements and accompanying notes in Item 8. Management Overview Operational and Strategic Initiatives 14 Geographic expansion  — While growth opportunities are present in each region of the world, we have a primary focus on  building our presence and local capability in the  Asia Pacific region, especially India and China. In addition to new engineering  facilities in India and China, new gear manufacturing facilities were established in India and  Thailand in recent years. We  completed two transactions in 2011 – increasing the ownership interest in our China-based joint venture with Dongfeng Motor  Co., Ltd. (Dongfeng) to 50% and acquiring the axle drive head and final assembly business from our  Axles India Limited (AIL)  Additional engineering and operational investment is being channeled into reinvigorating our product portfolio and  capitalizing on technology advancement opportunities. Combined engineering centers of our Light  Vehicle and Commercial  Vehicle segments allow us the opportunity to better share technologies among these businesses. New engineering facilities in  India and China were opened in the past few years and are now on line, more than doubling our engineering presence in the  Asia Pacific region with state-of-the-art development and test capabilities that globally support each of our businesses.  Technology leadership  — With a clear focus on market based value drivers, global mega trends and customer sustainability  objectives and requirements, we are driving innovation to create dif ferentiated value for our customers, moving from a  “product push” to a “market pull” product pipeline.  We are committed to making investments and diversifying our product  offerings to strengthen our competitive position in our core driveline, sealing and thermal technologies businesses, creating  value for our customers through improved fuel ef ficiency, emission control, electric and hybrid electric solutions, durability and  cost of ownership, software integration and systems solutions. Our September 2012 strategic alliance with Fallbrook  Technologies Inc. (Fallbrook) provides us the opportunity to leverage leading edge continuously variable planetary (CVP)  technology into the development of advanced drivetrain and transmission solutions for customers in our end markets. In 2014,  we opened a new technology center in Cedar Park, Texas to support our CVP technology development initiatives. In December 2014 and the first quarter of 2015, we completed a tender of fer for our senior notes maturing in 2019,  replacing them with senior notes having lower interest rates maturing in 2024.  Additionally, we completed a voluntary program  offered to deferred vested salaried participants in our U.S. pension plans.With this program, we reduced plan benefit  obligations by $171 with lump sum payments of $133 from plan assets. Shareholder returns and capital structure actions  — Our strong financial position enabled us to provide returns to our common  shareholders in the form of cash dividends and the reduction in the number of common share equivalents outstanding. We  declared and paid four quarterly common stock dividends of five cents per share in each of the past three years. During 2013,  we redeemed our Series A preferred stock, the equivalent of 21 million common shares on an as converted basis, for $474. In  2014, we exercised our option to convert all remaining outstanding preferred shares to common shares. In 2014, our Board of  Directors approved the expansion of our existing share repurchase program from $1,000 to $1,400 and, through December 31,  2014, we had repurchased 30 million common shares for $614. In recent years, we have significantly improved our overall financial prospects — improving the overall profitability of our  business, simplifying our capital structure, maintaining strong cash flows and addressing structural costs.  We have also  strengthened our leadership team and streamlined our operating segments to focus on our core competencies of driveline  technologies, sealing systems and thermal management.  As a result, we believe that we are well-positioned to place increasing  focus on profitable growth and shareholder returns. We are a global provider of high technology driveline, sealing and thermal-management products for virtually every major  vehicle manufacturer in the on-highway and of f-highway markets. Our driveline products – axles, driveshafts and transmissions  – are delivered through our Light Vehicle Driveline Technologies (Light Vehicle), Commercial Vehicle Driveline Technologies  (Commercial Vehicle) and Off-Highway Driveline Technologies (Off-Highway) operating segments. Our fourth global  operating segment – Power Technologies – is the center of excellence for the sealing and thermal technologies that span all  customers in our on-highway and of f-highway markets. We have a diverse customer base and geographic footprint which  minimizes our exposure to individual market and segment declines. In  2014, 47% of our sales came from North  American  operations and 53% from operations throughout the rest of the world. Our sales by operating segment were Light  Vehicle –  38%, Commercial Vehicle – 27%, Off-Highway – 19% and Power Technologies – 16%. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Dollars in millions)