| Financial information regarding reportable operating segments |
Summarized financial information regarding our reportable operating segments for the three months ended is shown in the table below:
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In millions |
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Engine |
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Distribution |
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Components |
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Power Systems |
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Electrified Power |
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Total Segment |
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Intersegment Eliminations (1)
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Total |
Three months ended July 1, 2018 |
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External sales |
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$ |
2,050 |
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$ |
1,988 |
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$ |
1,402 |
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$ |
691 |
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$ |
1 |
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|
$ |
6,132 |
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$ |
— |
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$ |
6,132 |
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Intersegment sales |
|
646 |
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|
6 |
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|
485 |
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|
555 |
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|
— |
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|
1,692 |
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(1,692 |
) |
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— |
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Total sales |
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2,696 |
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|
1,994 |
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|
1,887 |
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|
1,246 |
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1 |
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7,824 |
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(1,692 |
) |
|
6,132 |
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Research, development and engineering expenses |
|
76 |
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|
5 |
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|
62 |
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|
60 |
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|
16 |
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|
219 |
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— |
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219 |
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Equity, royalty and interest income from investees |
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67 |
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|
11 |
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|
14 |
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|
18 |
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— |
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|
110 |
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— |
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|
110 |
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Interest income |
|
3 |
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|
3 |
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2 |
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|
2 |
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— |
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|
10 |
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— |
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|
10 |
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Segment EBITDA |
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362 |
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|
145 |
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|
237 |
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|
186 |
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(21 |
) |
|
909 |
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(12 |
) |
|
897 |
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Depreciation and amortization (2)
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|
47 |
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|
27 |
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|
47 |
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|
32 |
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1 |
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|
154 |
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— |
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|
154 |
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Three months ended July 2, 2017 |
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External sales |
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$ |
1,711 |
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$ |
1,716 |
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$ |
1,064 |
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$ |
587 |
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$ |
— |
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$ |
5,078 |
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$ |
— |
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$ |
5,078 |
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Intersegment sales |
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596 |
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|
6 |
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|
390 |
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|
430 |
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— |
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|
1,422 |
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(1,422 |
) |
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— |
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Total sales |
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2,307 |
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|
1,722 |
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|
1,454 |
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|
1,017 |
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— |
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|
6,500 |
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(1,422 |
) |
|
5,078 |
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Research, development and engineering expenses |
|
63 |
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|
4 |
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|
58 |
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|
50 |
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|
— |
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|
175 |
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|
— |
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|
175 |
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Equity, royalty and interest income from investees |
|
56 |
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|
13 |
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|
15 |
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|
14 |
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|
— |
|
|
98 |
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|
— |
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|
98 |
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Interest income |
|
2 |
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|
1 |
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|
1 |
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|
1 |
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— |
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|
5 |
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— |
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|
5 |
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Segment EBITDA |
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323 |
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|
127 |
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|
228 |
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|
90 |
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— |
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|
768 |
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(4 |
) |
|
764 |
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Depreciation and amortization (2)
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|
46 |
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|
31 |
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|
38 |
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|
29 |
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— |
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|
144 |
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— |
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|
144 |
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____________________________________
(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 July 1, 2018 and July 2, 2017.
(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. A portion of depreciation expense is included in "Research, development and engineering expenses" above.
Summarized financial information regarding our reportable operating segments for the six months ended is shown in the table below:
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In millions |
|
Engine |
|
Distribution |
|
Components |
|
Power Systems |
|
Electrified Power |
|
Total Segment |
|
Intersegment Eliminations (1)
|
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Total |
Six months ended July 1, 2018 |
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External sales |
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$ |
3,863 |
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$ |
3,835 |
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$ |
2,715 |
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$ |
1,286 |
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$ |
3 |
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$ |
11,702 |
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$ |
— |
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$ |
11,702 |
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Intersegment sales |
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1,279 |
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|
12 |
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|
925 |
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|
1,034 |
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— |
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|
3,250 |
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(3,250 |
) |
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— |
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Total sales |
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5,142 |
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|
3,847 |
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|
3,640 |
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|
2,320 |
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3 |
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14,952 |
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(3,250 |
) |
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11,702 |
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Research, development and engineering expenses |
|
155 |
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|
10 |
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|
124 |
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|
117 |
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|
23 |
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|
429 |
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— |
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|
429 |
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Equity, royalty and interest income from investees |
|
134 |
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|
24 |
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|
30 |
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|
37 |
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— |
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|
225 |
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— |
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|
225 |
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Interest income |
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5 |
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5 |
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3 |
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4 |
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— |
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|
17 |
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— |
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|
17 |
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Segment EBITDA |
|
648 |
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|
268 |
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|
464 |
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|
328 |
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(31 |
) |
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1,677 |
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(80 |
) |
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1,597 |
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Depreciation and amortization(2)
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|
96 |
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|
54 |
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|
93 |
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|
62 |
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2 |
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|
307 |
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— |
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|
307 |
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Six months ended July 2, 2017 |
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External sales |
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$ |
3,168 |
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$ |
3,353 |
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$ |
2,044 |
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$ |
1,102 |
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$ |
— |
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$ |
9,667 |
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$ |
— |
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$ |
9,667 |
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Intersegment sales |
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1,162 |
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|
14 |
|
|
754 |
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|
797 |
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|
— |
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|
2,727 |
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(2,727 |
) |
|
— |
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Total sales |
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4,330 |
|
|
3,367 |
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|
2,798 |
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|
1,899 |
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|
— |
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|
12,394 |
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(2,727 |
) |
|
9,667 |
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Research, development and engineering expenses |
|
117 |
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|
8 |
|
|
108 |
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|
100 |
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— |
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|
333 |
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|
— |
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|
333 |
|
Equity, royalty and interest income from investees |
|
128 |
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|
24 |
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|
28 |
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|
26 |
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|
— |
|
|
206 |
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|
— |
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|
206 |
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Interest income |
|
3 |
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|
2 |
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|
1 |
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|
1 |
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— |
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7 |
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— |
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|
7 |
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Segment EBITDA |
|
596 |
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|
257 |
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|
444 |
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|
175 |
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— |
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|
1,472 |
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(3 |
) |
|
1,469 |
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Depreciation and amortization(2)
|
|
90 |
|
|
61 |
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|
75 |
|
|
57 |
|
|
— |
|
|
283 |
|
|
— |
|
|
283 |
|
____________________________________
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended July 1, 2018 and July 2, 2017.
(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 was $1 million and $1 million for the six month periods ended July 1, 2018 and July 2, 2017, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses" above.
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