Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.5.0.2
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 03, 2016
Dec. 31, 2015
Jun. 28, 2015
Jul. 03, 2016
Jun. 28, 2015
Operating results:          
Total sales [1] $ 4,528   $ 5,015 $ 8,819 $ 9,724
Depreciation and amortization [2] 131   126 258 253
Research, development and engineering expenses 155   166 321 361
Equity, royalty and interest income from investees 88   94 160 162
Interest income 6   6 12 11
Segment EBIT 591   721 1,075 1,283
Less: Interest expense 16   17 35 31
INCOME BEFORE INCOME TAXES 575   704 1,040 1,252
Amortization of Debt Discount (Premium)       1 1
Loss Contingency, Loss in Period       39 0
Engine          
Operating results:          
Total sales 2,002   2,325 3,978 4,470
Depreciation and amortization [2] 41   47 80 93
Research, development and engineering expenses 53   53 110 122
Equity, royalty and interest income from investees 46   51 82 74
Interest income 3   2 5 4
Segment EBIT 206 [3]   278 403 [3] 478
Loss Contingency, Loss in Period 39 $ 60   39  
Distribution          
Operating results:          
Total sales 1,544   1,495 3,007 2,971
Depreciation and amortization [2] 29   25 57 52
Research, development and engineering expenses 3   3 7 6
Equity, royalty and interest income from investees 19   21 37 41
Interest income 1   1 2 2
Segment EBIT 87   113 174 201
Components          
Operating results:          
Total sales 1,279   1,397 2,516 2,696
Depreciation and amortization [2] 32   28 63 54
Research, development and engineering expenses 51   57 107 118
Equity, royalty and interest income from investees 12   8 20 17
Interest income 1   1 2 2
Segment EBIT 190   223 353 418
Power Systems          
Operating results:          
Total sales 921   1,097 1,729 2,099
Depreciation and amortization [2] 29   26 58 54
Research, development and engineering expenses 48   53 97 115
Equity, royalty and interest income from investees 11   14 21 30
Interest income 1   2 3 3
Segment EBIT 90   127 136 228
Non-segment items          
Operating results:          
Total sales [4] (1,218)   (1,299) (2,411) (2,512)
Segment EBIT [4] 18   (20) 9 (42)
External Sales          
Operating results:          
Total sales 4,528   5,015 8,819 9,724
External Sales | Engine          
Operating results:          
Total sales 1,504   1,834 2,993 3,523
External Sales | Distribution          
Operating results:          
Total sales 1,538   1,487 2,996 2,956
External Sales | Components          
Operating results:          
Total sales 933   1,017 1,830 1,948
External Sales | Power Systems          
Operating results:          
Total sales 553   677 1,000 1,297
Intersegment sales | Engine          
Operating results:          
Total sales 498   491 985 947
Intersegment sales | Distribution          
Operating results:          
Total sales 6   8 11 15
Intersegment sales | Components          
Operating results:          
Total sales 346   380 686 748
Intersegment sales | Power Systems          
Operating results:          
Total sales 368   420 729 802
Intersegment sales | Non-segment items          
Operating results:          
Total sales [4] $ (1,218)   $ (1,299) $ (2,411) $ (2,512)
[1] Includes sales to nonconsolidated equity investees of $276 million and $518 million and $357 million and $682 million for the three and six months ended July 3, 2016 and June 28, 2015, 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 July 3, 2016 and June 28, 2015, respectively.
[3] Engine segment EBIT for the three and six months ended July 3, 2016 included an accrual for a loss contingency of $39 million. See Note 10, "COMMITMENTS AND CONTINGENCIES," for additional information.
[4] Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three and six months ended July 3, 2016 and June 28, 2015.