Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.20.1
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2020
Mar. 31, 2019
Segment reporting    
NET SALES (a) (Note 3) [1] $ 5,011 $ 6,004
Research, development and engineering expenses 238 237
Equity, royalty and interest income from investees 129 92
Interest income [2] 7 12
Segment EBITDA 846 1,033
Depreciation and amortization [3] 168 156
Less: Interest expense 23 32
INCOME BEFORE INCOME TAXES 655 845
Amortization of Debt Discount (Premium)   1
Maximum    
Segment reporting    
Amortization of Debt Discount (Premium) 1  
Engine    
Segment reporting    
NET SALES (a) (Note 3) 2,158 2,653
Research, development and engineering expenses 80 78
Equity, royalty and interest income from investees 78 56
Interest income [2] 4 4
Segment EBITDA 365 438
Depreciation and amortization [3] 53 50
Distribution    
Segment reporting    
NET SALES (a) (Note 3) 1,814 2,001
Research, development and engineering expenses 7 7
Equity, royalty and interest income from investees 21 11
Interest income [2] 1 4
Segment EBITDA 158 171
Depreciation and amortization [3] 31 29
Components    
Segment reporting    
NET SALES (a) (Note 3) 1,502 1,861
Research, development and engineering expenses 68 75
Equity, royalty and interest income from investees 21 10
Interest income [2] 1 2
Segment EBITDA 279 325
Depreciation and amortization [3] 48 46
Power Systems    
Segment reporting    
NET SALES (a) (Note 3) 884 1,077
Research, development and engineering expenses 54 56
Equity, royalty and interest income from investees 9 15
Interest income [2] 1 2
Segment EBITDA 77 138
Depreciation and amortization [3] 32 29
New Power    
Segment reporting    
NET SALES (a) (Note 3) 10 3
Research, development and engineering expenses 29 21
Equity, royalty and interest income from investees 0 0
Interest income [2] 0 0
Segment EBITDA (43) (29)
Depreciation and amortization [3] 4 2
Total Segments    
Segment reporting    
NET SALES (a) (Note 3) 6,368 7,595
Research, development and engineering expenses 238 237
Equity, royalty and interest income from investees 129 92
Interest income [2] 7 12
Segment EBITDA 836 1,043
Depreciation and amortization [3] 168 156
Intersegment Eliminations    
Segment reporting    
NET SALES (a) (Note 3) [4] (1,357) (1,591)
Non-segment items    
Segment reporting    
Segment EBITDA [4] 10 (10)
External Sales    
Segment reporting    
NET SALES (a) (Note 3) 5,011 6,004
External Sales | Engine    
Segment reporting    
NET SALES (a) (Note 3) 1,579 1,984
External Sales | Distribution    
Segment reporting    
NET SALES (a) (Note 3) 1,807 1,993
External Sales | Components    
Segment reporting    
NET SALES (a) (Note 3) 1,115 1,401
External Sales | Power Systems    
Segment reporting    
NET SALES (a) (Note 3) 500 623
External Sales | New Power    
Segment reporting    
NET SALES (a) (Note 3) 10 3
External Sales | Total Segments    
Segment reporting    
NET SALES (a) (Note 3) 5,011 6,004
Intersegment sales | Engine    
Segment reporting    
NET SALES (a) (Note 3) 579 669
Intersegment sales | Distribution    
Segment reporting    
NET SALES (a) (Note 3) 7 8
Intersegment sales | Components    
Segment reporting    
NET SALES (a) (Note 3) 387 460
Intersegment sales | Power Systems    
Segment reporting    
NET SALES (a) (Note 3) 384 454
Intersegment sales | New Power    
Segment reporting    
NET SALES (a) (Note 3) 0 0
Intersegment sales | Total Segments    
Segment reporting    
NET SALES (a) (Note 3) 1,357 1,591
Intersegment sales | Intersegment Eliminations    
Segment reporting    
NET SALES (a) (Note 3) [4] $ (1,357) $ (1,591)
[1] (a) Includes sales to nonconsolidated equity investees of $257 million and $285 million for the three months ended March 29, 2020 and March 31, 2019, respectively.
[2] (2) "Interest income" is managed at the corporate level and allocated to each operating segment.
[3] (3) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." The amortization of debt discount and deferred costs was less than $1 million and $1 million for the three months ended March 29, 2020 and March 31, 2019, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
[4] (1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 29, 2020 and March 31, 2019.