Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v3.20.1
OPERATING SEGMENTS (Tables)
3 Months Ended
Mar. 29, 2020
Segment Reporting [Abstract]  
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:
In millions Engine Distribution   Components Power Systems New Power Total Segments
Intersegment Eliminations (1)
Total
Three months ended March 29, 2020            
External sales $ 1,579    $ 1,807      $ 1,115    $ 500    $ 10    $ 5,011    $ —    $ 5,011   
Intersegment sales 579        387    384    —    1,357    (1,357)   —   
Total sales 2,158    1,814      1,502    884    10    6,368    (1,357)   5,011   
Research, development and engineering expenses 80        68    54    29    238    —    238   
Equity, royalty and interest income from investees 78    21      21      —    129    —    129   
Interest income (2)
          —      —     
Segment EBITDA 365    158    279    77    (43)   836    10    846   
Depreciation and amortization (3)
53    31      48    32      168    —    168   
Three months ended March 31, 2019            
External sales $ 1,984    $ 1,993    $ 1,401    $ 623    $   $ 6,004    $ —    $ 6,004   
Intersegment sales 669      460    454    —    1,591    (1,591)   —   
Total sales 2,653    2,001    1,861    1,077      7,595    (1,591)   6,004   
Research, development and engineering expenses 78      75    56    21    237    —    237   
Equity, royalty and interest income from investees 56    11    10    15    —    92    —    92   
Interest income (2)
        —    12    —    12   
Segment EBITDA 438    171    325    138    (29)   1,043    (10)   1,033   
Depreciation and amortization (3)
50    29    46    29      156    —    156   
(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 March 29, 2020 and March 31, 2019.
(2) "Interest income" is managed at the corporate level and allocated to each operating segment.
(3) 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 Net Income as "Interest expense." The amortization of debt discount and deferred costs was less than $1 million and $1 million for the three months ended March 29, 2020 and March 31, 2019, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
Reconciliation of segment information
A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:
  Three months ended
In millions March 29,
2020
March 31,
2019
Total EBITDA $ 846    $ 1,033   
Less:
Depreciation and amortization 168    156   
Interest expense 23    32   
Income before income taxes $ 655    $ 845