Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENTS (Tables)

v2.4.0.6
OPERATING SEGMENTS (Tables)
12 Months Ended
Dec. 31, 2011
OPERATING SEGMENTS  
Financial information regarding reportable operating segments

 

 

In millions
  Engine   Components   Power
Generation
  Distribution   Non-segment
Items(1)
  Total  

2011

                                     

External sales

  $ 9,649   $ 2,886   $ 2,492   $ 3,021   $   $ 18,048  

Intersegment sales

    1,658     1,177     1,006     23     (3,864 )    
                           

Total sales

    11,307     4,063     3,498     3,044     (3,864 )   18,048  

Depreciation and amortization(2)

    181     73     42     25         321  

Research, development and engineering expenses

    397     175     54     3         629  

Equity, royalty and interest income from investees

    166     31     47     172         416  

Interest income

    18     5     8     3         34  

Segment EBIT

    1,384     470     373     386     102     2,715  

Net assets

    3,167     1,467     1,547     1,123         7,304  

Investments and advances to equity investees

    398     123     79     238         838  

Capital expenditures

    339     141     87     55         622  

2010

                                     

External sales

  $ 6,594   $ 2,171   $ 2,150   $ 2,311   $   $ 13,226  

Intersegment sales

    1,294     875     769     13     (2,951 )    
                           

Total sales

    7,888     3,046     2,919     2,324     (2,951 )   13,226  

Depreciation and amortization(2)

    171     79     41     25         316  

Research, development and engineering expenses

    263     114     36     1         414  

Equity, royalty and interest income from investees

    161     23     35     132         351  

Interest income

    12     2     5     2         21  

Segment EBIT

    809     278     299     297     (26 )   1,657  

Net assets

    2,662     1,450     1,286     929         6,327  

Investments and advances to equity investees

    355     106     73     200         734  

Capital expenditures

    197     78     53     36         364  

2009

                                     

External sales

  $ 5,582   $ 1,562   $ 1,879   $ 1,777   $   $ 10,800  

Intersegment sales

    823     793     538     7     (2,161 )    
                           

Total sales

    6,405     2,355     2,417     1,784     (2,161 )   10,800  

Depreciation and amortization(2)

    185     73     49     17         324  

Research, development and engineering expenses

    241     88     33             362  

Equity, royalty and interest income from investees

    54     13     22     125         214  

Restructuring and other charges

                    99     99  

Interest income

    3     1     3     1         8  

Segment EBIT

    252     95     167     235     (74 )   675  

Net assets

    2,176     1,287     1,123     687         5,273  

Investments and advances to equity investees

    261     91     50     172         574  

Capital expenditures

    207     59     34     10         310  

(1)
Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. The year ended December 31, 2011, includes a $68 million gain ($37 million after-tax) related to the sale of certain assets and liabilities of our exhaust business and a $53 million gain ($33 million after-tax) recorded for the sale of certain assets and liabilities of our light-duty filtration business, both from the Components segment, and a $38 million gain ($24 million after-tax) related to flood damage recoveries from the insurance settlement regarding a June 2008 flood in Southern Indiana. The gains have been excluded from segment results as they were not considered in our evaluation of operating results for the year ended December 31, 2011. For the year ended December 31, 2010, unallocated corporate expenses include $32 million in Brazil tax recoveries ($21 million after-tax) and $2 million in flood damage expenses. The Brazil tax recovery has been excluded from segment results as it was not considered in our evaluation of operating results for the year ended December 31, 2010. For the year ended December 31, 2009, unallocated corporate expenses included $99 million in restructuring and other charges and a gain of $12 million related to flood damage recoveries.

(2)
Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Consolidated Statements of Income as "Interest expense."
Reconciliation of segment information

 

 

 
  Years ended December 31,  
In millions
  2011   2010   2009  

Segment EBIT

  $ 2,715   $ 1,657   $ 675  

Less:

                   

Interest expense

    44     40     35  
               

Income before income taxes

  $ 2,671   $ 1,617   $ 640  
               
Reconciliation of segment information from net assets to total assets


 
  December 31,  
In millions
  2011   2010   2009  

Net assets for operating segments

  $ 7,304   $ 6,327   $ 5,273  

Liabilities deducted in arriving at net assets

    4,832     4,412     4,018  

Pension and other postretirement benefit adjustments excluded from net assets

    (928 )   (879 )   (1,180 )

Deferred tax assets not allocated to segments

    435     517     680  

Debt-related costs not allocated to segments

    25     25     25  
               

Total assets

  $ 11,668   $ 10,402   $ 8,816  
               
Net sales attributed to geographic areas based on the location of the customer

 

 

 
  Years ended and as of
December 31,
 
In millions
  2011   2010   2009  

Net Sales

                   

United States

  $ 7,354   $ 4,817   $ 5,141  

China

    1,452     1,206     630  

Brazil

    1,286     1,014     596  

India

    859     808     592  

United Kingdom

    727     562     406  

Canada

    653     506     327  

Mexico

    631     415     240  

Other foreign countries

    5,086     3,898     2,868  
               

Total net sales

  $ 18,048   $ 13,226   $ 10,800  
               
Long-lived assets attributed to geographic areas


 
  Years ended and as of
December 31,
 
In millions
  2011   2010   2009  

Long-lived assets

                   

United States

  $ 2,218   $ 1,981   $ 1,811  

China

    520     446     322  

United Kingdom

    318     266     188  

India

    203     173     134  

Brazil

    151     146     125  

Netherlands

    111          

Mexico

    72     62     54  

Canada

    64     64     27  

Germany

    47     44     37  

Australia

    34     48     11  

Korea

    27     19     2  

Turkey

    19     1     1  

Other foreign countries

    78     72     74  
               

Total long-lived assets

  $ 3,862   $ 3,322   $ 2,786