Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENTS (Tables)

v3.24.0.1
OPERATING SEGMENTS (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Summarized financial information regarding our reportable operating segments at December 31, is shown in the table below:
In millions Components Engine Distribution Power Systems Accelera Total Segments
2023    
External sales $ 11,531  $ 8,874  $ 10,199  $ 3,125  $ 336  $ 34,065 
Intersegment sales 1,878  2,810  50  2,548  18  7,304 
Total sales 13,409  11,684  10,249  5,673  354  41,369 
Research, development and engineering expenses 387  614  57  237  203  1,498 
Equity, royalty and interest income (loss) from investees 97  251  97  53  (15) 483 
Interest income 31  19  34  9  2  95 
Segment EBITDA 1,840 
(1)
 1,630  1,209  836  (443) 5,072 
Depreciation and amortization (2)
491  225  115  122  63  1,016 
Net assets 6,965  930  2,348  1,938  1,159  13,340 
Investments and advances to equity investees 582  660  396  132  25  1,795 
Capital expenditures 373  538  103  115  84  1,213 
2022    
External sales $ 7,847  $ 8,199  $ 8,901  $ 2,951  $ 176  $ 28,074 
Intersegment sales 1,889  2,746  28  2,082  22  6,767 
Total sales 9,736  10,945  8,929  5,033  198  34,841 
Research, development and engineering expenses 309  506  52  240  171  1,278 
Equity, royalty and interest income (loss) from investees 71  160 
(3)
 77  43  (2) 349 
Interest income 12  14  16  7  —  49 
Russian suspension costs (4)
5  33 
(5)
 54  19  —  111 
Segment EBITDA 1,346 
(6)
 1,535  888  596  (334) 4,031 
Depreciation and amortization (2)
304  205  114  120  38  781 
Net assets 7,306  1,451  2,698  2,382  1,158  14,995 
Investments and advances to equity investees 617  617  352  138  33  1,757 
Capital expenditures 264  368  114  96  74  916 
2021
External sales $ 5,932  $ 7,589  $ 7,742  $ 2,650  $ 108  $ 24,021 
Intersegment sales 1,733  2,365  30  1,765  8  5,901 
Total sales 7,665  9,954  7,772  4,415  116  29,922 
Research, development and engineering expenses 307  399  48  234  102  1,090 
Equity, royalty and interest income from investees 50  335  63  56  2  506 
Interest income 5  8  7  5  —  25 
Segment EBITDA 1,180  1,406  731  496  (218) 3,595 
Depreciation and amortization (2)
183  205  116  131  24  659 
Net assets 2,938  1,554  2,294  2,251  602  9,639 
Investments and advances to equity investees 254  771  329  164  20  1,538 
Capital expenditures 184  341  92  80  37  734 
(1) Includes $78 million of costs associated with the IPO and separation of Atmus for the year ended December 31, 2023.
(2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs were $8 million, $3 million and $3 million for the years ended 2023, 2022 and 2021, respectively. A portion of depreciation expense is included in research, development and engineering expense.
(3) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the indefinite suspension of our Russian operations. See NOTE 22, "RUSSIAN OPERATIONS," for additional information.
(4) See NOTE 22, "RUSSIAN OPERATIONS," for additional information.
(5) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above.
(6) Includes $83 million of costs related to the acquisition and integration of Meritor and $28 million of costs associated with the separation of Atmus.
Reconciliation of segment information
A reconciliation of our segment information to the corresponding amounts in the Consolidated Statements of Net Income is shown in the table below:
  Years ended December 31,
In millions 2023 2022 2021
TOTAL SEGMENT EBITDA $ 5,072  $ 4,031  $ 3,595 
Intersegment eliminations and other (1)
(2,055) (232) (74)
Less:
Interest expense 375  199  111 
Depreciation and amortization 1,016  781  659 
INCOME BEFORE INCOME TAXES $ 1,626  $ 2,819  $ 2,751 
(1) Intersegment eliminations and other included $2.0 billion related to the Agreement in Principle, $22 million of costs associated with the IPO and separation of Atmus and $21 million of voluntary retirement and voluntary separation charges for the year ended December 31, 2023. The year ended December 31, 2022, included $53 million of costs associated with the planned separation of Atmus. See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information.
Reconciliation of segment information from net assets to total assets
A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below:
  December 31,
In millions 2023 2022
Net assets for operating segments $ 13,340  $ 14,995 
Cash, cash equivalents and marketable securities 2,741  2,573 
Net liabilities deducted in arriving at net segment assets (1)
14,531  11,270 
Pension and OPEB adjustments excluded from net segment assets 307  832 
Deferred tax assets not allocated to segments 1,082  625 
Deferred debt costs not allocated to segments 4  4 
Total assets $ 32,005  $ 30,299 
(1) Liabilities deducted in arriving at net segment assets include certain accounts payable, accrued expenses, long-term liabilities and other items.
Long-lived assets attributed to geographic areas Long-lived segment assets by geographic area were as follows:
December 31,
In millions 2023 2022
United States $ 5,013  $ 4,714 
China 1,030  1,052 
India 681  665 
Mexico 583  429 
United Kingdom 489  431 
Netherlands 437  334 
Brazil 261  256 
Canada 171  168 
Other international countries 819  731 
Total long-lived assets $ 9,484  $ 8,780