Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.2.0.727
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 28, 2015
Jun. 29, 2014
Jun. 28, 2015
Jun. 29, 2014
Operating results:        
Total sales [1] $ 5,015 $ 4,835 $ 9,724 $ 9,241
Depreciation and amortization [2] 126 111 253 216
Research, development and engineering expenses 166 179 361 369
Equity, royalty and interest income from investees 94 105 162 195
Interest income 6 6 11 11
Segment EBIT 721 657 1,283 1,185
Less: Interest expense 17 15 31 32
INCOME BEFORE INCOME TAXES 704 642 1,252 1,153
Gain on remeasurement of pre-existing ownership interest in the acquiree company   14   20
Amortization of debt discount and deferred costs excluded     1  
Minimum        
Operating results:        
Amortization of debt discount and deferred costs excluded       1
Engine        
Operating results:        
Depreciation and amortization [2] 60 52 118 103
Research, development and engineering expenses 91 105 205 221
Equity, royalty and interest income from investees 57 45 87 77
Interest income 3 4 5 6
Segment EBIT 341 311 594 580
Distribution        
Operating results:        
Depreciation and amortization [2] 25 20 52 36
Research, development and engineering expenses 3 3 6 5
Equity, royalty and interest income from investees 21 42 41 83
Interest income 1 0 2 1
Segment EBIT 113 [3] 126 [3] 201 202 [3]
Components        
Operating results:        
Depreciation and amortization [2] 28 26 54 52
Research, development and engineering expenses 57 53 118 106
Equity, royalty and interest income from investees 8 9 17 18
Interest income 1 1 2 2
Segment EBIT 223 185 418 352
Power Generation        
Operating results:        
Depreciation and amortization [2] 13 13 29 25
Research, development and engineering expenses 15 18 32 37
Equity, royalty and interest income from investees 8 9 17 17
Interest income 1 1 2 2
Segment EBIT 57 61 106 86
Non-segment items        
Operating results:        
Segment EBIT [4] (13) (26) (36) (35)
External Sales        
Operating results:        
Total sales 5,015 4,835 9,724 9,241
External Sales | Engine        
Operating results:        
Total sales 2,058 2,178 3,947 4,268
External Sales | Distribution        
Operating results:        
Total sales 1,487 1,229 2,956 2,171
External Sales | Components        
Operating results:        
Total sales 1,017 953 1,948 1,875
External Sales | Power Generation        
Operating results:        
Total sales 453 475 873 927
Intersegment sales | Engine        
Operating results:        
Total sales 739 566 1,446 1,039
Intersegment sales | Distribution        
Operating results:        
Total sales 8 9 15 17
Intersegment sales | Components        
Operating results:        
Total sales 380 327 748 635
Intersegment sales | Power Generation        
Operating results:        
Total sales 294 268 554 455
Intersegment sales | Non-segment items        
Operating results:        
Total sales [4] (1,421) (1,170) (2,763) (2,146)
Reportable segment        
Operating results:        
Total sales 5,015 4,835    
Reportable segment | Engine        
Operating results:        
Total sales 2,797 2,744 5,393 5,307
Reportable segment | Distribution        
Operating results:        
Total sales 1,495 1,238 2,971 2,188
Reportable segment | Components        
Operating results:        
Total sales 1,397 1,280 2,696 2,510
Reportable segment | Power Generation        
Operating results:        
Total sales 747 743 1,427 1,382
Reportable segment | Non-segment items        
Operating results:        
Total sales [4] $ (1,421) $ (1,170) $ (2,763) $ (2,146)
[1] Includes sales to nonconsolidated equity investees of $357 million and $682 million and $546 million and $1,138 million for the three and six month periods ended June 28, 2015 and June 29, 2014, respectively.
[2] 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 Income as "Interest expense." The amortization of debt discount and deferred costs were $1 million and $1 million for the six months ended June 28, 2015 and June 29, 2014, respectively.
[3] Distribution segment EBIT included gains of $14 million and $20 million on the fair value adjustments resulting from the acquisition of the controlling interests in North American distributors for the three and six month periods ended June 29, 2014.
[4] Includes inter-segment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three and six months ended June 28, 2015 and June 29, 2014.