Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENTS (Tables)

v2.4.0.6
OPERATING SEGMENTS (Tables)
12 Months Ended
Dec. 31, 2012
OPERATING SEGMENTS  
Financial information regarding reportable operating segments

 

 

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

2012

                                     

External sales

  $ 9,101   $ 2,809   $ 2,163   $ 3,261   $   $ 17,334  

Intersegment sales

    1,632     1,203     1,105     16     (3,956 )    
                           

Total sales

    10,733     4,012     3,268     3,277     (3,956 )   17,334  

Depreciation and amortization(2)

    192     82     47     34         355  

Research, development and engineering expenses

    433     213     76     6         728  

Equity, royalty and interest income from investees

    127     29     40     188         384  

Interest income

    11     3     9     2         25  

Segment EBIT(3)

    1,248     426     285     369     (25 )   2,303  

Net assets

    3,373     1,830     1,582     1,392         8,177  

Investments and advances to equity investees

    401     127     88     281         897  

Capital expenditures

    399     134     95     62         690  

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  

(1)
Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. The year ended December 31, 2012, includes a $6 million gain ($4 million after-tax) related to adjustments from our 2011 divestitures and a $20 million reserve ($12 million after-tax) related to legal matters. 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. 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 gains and losses have been excluded from segment results as they were not considered in our evaluation of operating results for the years ended December 31, 2012, 2011 and 2010.

(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."

(3)
Segment EBIT includes restructuring and other charges for each business segment of $20 million for the Engine segment, $6 million for the Components segment, $12 million for the Power Generation segment and $14 million for the Distribution segment. See Note 19, "RESTRUCTURING CHARGES," for additional detail.
Reconciliation of segment information

 

 

 
  Years ended December 31,  
In millions
  2012   2011   2010  

Segment EBIT

  $ 2,303   $ 2,715   $ 1,657  

Less: Interest expense

    32     44     40  
               

Income before income taxes

  $ 2,271   $ 2,671   $ 1,617  
               
Reconciliation of segment information from net assets to total assets

 

 
  December 31,  
In millions
  2012   2011   2010  

Net assets for operating segments

  $ 8,177   $ 7,304   $ 6,327  

Liabilities deducted in arriving at net assets

    4,913     4,832     4,412  

Pension and other postretirement benefit adjustments excluded from net assets

    (977 )   (928 )   (879 )

Deferred tax assets not allocated to segments

    410     435     517  

Debt-related costs not allocated to segments

    25     25     25  
               

Total assets

  $ 12,548   $ 11,668   $ 10,402  
               
Net sales attributed to geographic areas based on the location of the customer

 

 

 
  Years ended and as of
December 31,
 
In millions
Net Sales
  2012   2011   2010  

United States

  $ 8,107   $ 7,354   $ 4,817  

China

    1,056     1,452     1,206  

Brazil

    798     1,286     1,014  

India

    757     859     808  

Mexico

    692     631     415  

United Kingdom

    660     727     562  

Canada

    642     653     506  

Other foreign countries

    4,622     5,086     3,898  
               

Total net sales

  $ 17,334   $ 18,048   $ 13,226  
               
Long-lived assets attributed to geographic areas

 

 
  Years ended and as of
December 31,
 
In millions
Long-lived assets
  2012   2011   2010  

United States

  $ 2,440   $ 2,218   $ 1,981  

China

    589     520     446  

United Kingdom

    339     318     266  

India

    243     203     173  

Brazil

    170     151     146  

Netherlands

    130     111      

Mexico

    77     72     62  

Canada

    69     64     64  

Germany

    49     47     44  

Korea

    37     27     19  

Turkey

    29     19     1  

Australia

    25     34     48  

United Arab Emirates

    16     14     9  

Singapore

    16     9     7  

Romania

    15     10     10  

France

    13     13     14  

Other foreign countries

    33     32     32  
               

Total long-lived assets

  $ 4,290   $ 3,862   $ 3,322