| Financial information regarding reportable operating segments |
|
In millions
|
|
Engine
|
|
Components
|
|
Power
Generation
|
|
Distribution
|
|
Non-segment
Items(1)
|
|
Total
|
|
|
Three months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
2,209
|
|
$
|
786
|
|
$
|
583
|
|
$
|
947
|
|
$
|
—
|
|
$
|
4,525
|
|
|
Intersegment sales
|
|
447
|
|
331
|
|
231
|
|
7
|
|
(1,016
|
)
|
—
|
|
|
Total sales
|
|
2,656
|
|
1,117
|
|
814
|
|
954
|
|
(1,016
|
)
|
4,525
|
|
|
Depreciation and amortization(2)
|
|
51
|
|
23
|
|
12
|
|
15
|
|
—
|
|
101
|
|
|
Research, development and engineering expenses
|
|
102
|
|
57
|
|
17
|
|
1
|
|
—
|
|
177
|
|
|
Equity, royalty and interest income from investees
|
|
52
|
|
9
|
|
10
|
|
37
|
|
—
|
|
108
|
|
|
Interest income
|
|
7
|
|
—
|
|
2
|
|
1
|
|
—
|
|
10
|
|
|
Segment EBIT
|
|
339
|
|
136
|
|
76
|
|
100
|
(3)
|
(30
|
)
|
621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended July 1, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
2,381
|
|
$
|
710
|
|
$
|
572
|
|
$
|
789
|
|
$
|
—
|
|
$
|
4,452
|
|
|
Intersegment sales
|
|
460
|
|
326
|
|
337
|
|
5
|
|
(1,128
|
)
|
—
|
|
|
Total sales
|
|
2,841
|
|
1,036
|
|
909
|
|
794
|
|
(1,128
|
)
|
4,452
|
|
|
Depreciation and amortization(2)
|
|
47
|
|
19
|
|
11
|
|
8
|
|
—
|
|
85
|
|
|
Research, development and engineering expenses
|
|
115
|
|
51
|
|
19
|
|
2
|
|
—
|
|
187
|
|
|
Equity, royalty and interest income from investees
|
|
37
|
|
8
|
|
10
|
|
49
|
|
—
|
|
104
|
|
|
Interest income
|
|
3
|
|
1
|
|
3
|
|
—
|
|
—
|
|
7
|
|
|
Segment EBIT
|
|
376
|
|
116
|
|
94
|
|
92
|
|
(9
|
)
|
669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
4,094
|
|
$
|
1,508
|
|
$
|
1,122
|
|
$
|
1,723
|
|
$
|
—
|
|
$
|
8,447
|
|
|
Intersegment sales
|
|
865
|
|
627
|
|
438
|
|
9
|
|
(1,939
|
)
|
—
|
|
|
Total sales
|
|
4,959
|
|
2,135
|
|
1,560
|
|
1,732
|
|
(1,939
|
)
|
8,447
|
|
|
Depreciation and amortization(2)
|
|
103
|
|
47
|
|
24
|
|
25
|
|
—
|
|
199
|
|
|
Research, development and engineering expenses
|
|
207
|
|
114
|
|
35
|
|
3
|
|
—
|
|
359
|
|
|
Equity, royalty and interest income from investees
|
|
75
|
|
16
|
|
17
|
|
82
|
|
—
|
|
190
|
|
|
Interest income
|
|
9
|
|
1
|
|
4
|
|
1
|
|
—
|
|
15
|
|
|
Segment EBIT
|
|
534
|
|
255
|
|
127
|
|
195
|
(3)
|
(53
|
)
|
1,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended July 1, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
4,793
|
|
$
|
1,484
|
|
$
|
1,088
|
|
$
|
1,559
|
|
$
|
—
|
|
$
|
8,924
|
|
|
Intersegment sales
|
|
907
|
|
651
|
|
601
|
|
10
|
|
(2,169
|
)
|
—
|
|
|
Total sales
|
|
5,700
|
|
2,135
|
|
1,689
|
|
1,569
|
|
(2,169
|
)
|
8,924
|
|
|
Depreciation and amortization(2)
|
|
94
|
|
38
|
|
22
|
|
15
|
|
—
|
|
169
|
|
|
Research, development and engineering expenses
|
|
226
|
|
102
|
|
37
|
|
3
|
|
—
|
|
368
|
|
|
Equity, royalty and interest income from investees
|
|
75
|
|
16
|
|
20
|
|
97
|
|
—
|
|
208
|
|
|
Interest income
|
|
7
|
|
2
|
|
5
|
|
1
|
|
—
|
|
15
|
|
|
Segment EBIT
|
|
757
|
|
259
|
|
170
|
|
186
|
|
(45
|
)
|
1,327
|
|
(1)Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. The three and six months ended July 1, 2012, include a $6 million gain ($4 million after-tax) related to adjustments from our 2011 divestitures. The gain has been excluded from segment results as it was not considered in our evaluation of operating results for the corresponding periods. There were no other significant unallocated corporate expenses for the three and six months ended June 30, 2013 and July 1, 2012.
(2)Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as “Interest expense.”
(3)Distribution segment EBIT for the three months ended June 30, 2013, includes a $5 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Rocky Mountain and for the six months ended June 30, 2013, includes a $7 million gain and $5 million gain on the fair value adjustment resulting from the acquisitions of a controlling interest in Northwest and Rocky Mountain, respectively.
|