Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v3.23.1
OPERATING SEGMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
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 Components Engine Distribution Power Systems Accelera Total Segments
Three months ended March 31, 2023    
External sales $ 3,043  $ 2,252  $ 2,399  $ 679  $ 80  $ 8,453 
Intersegment sales 514  734  7  664  5  1,924 
Total sales 3,557  2,986  2,406  1,343  85  10,377 
Research, development and engineering expenses 91  134  14  63  48  350 
Equity, royalty and interest income (loss) from investees 21  65  24  13  (4) 119 
Interest income 6  3  7  2  —  18 
Segment EBITDA 507 
(1)
 457  335  219  (94) 1,424 
Depreciation and amortization(2)
123  51  28  29  14  245 
Three months ended March 31, 2022    
External sales $ 1,517  $ 2,049  $ 2,111  $ 683  $ 25  $ 6,385 
Intersegment sales 471  704  6  477  6  1,664 
Total sales 1,988  2,753  2,117  1,160  31  8,049 
Research, development and engineering expenses 76  109  13  64  36  298 
Equity, royalty and interest income (loss) from investees 28  42 
(3)
 16  11  (1) 96 
Interest income 1  4  2  1  —  8 
Russian suspension costs(4)
6  32 
(5)
 100  20  —  158 
Segment EBITDA 320  390  110  90  (65) 845 
Depreciation and amortization(2)
43  51  28  31  7  160 
(1) Includes $12 million of costs associated with the planned separation of our filtration business.
(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 Net Income as interest expense. The amortization of debt discount and deferred costs was $1 million and $1 million for the three months ended March 31, 2023 and March 31, 2022, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(3) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. See NOTE 15, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information.
(4) See NOTE 15, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information.
(5) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above.
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
  March 31,
In millions 2023 2022
TOTAL SEGMENT EBITDA $ 1,424  $ 845 
Intersegment eliminations and other(1)
(63) (90)
Less:
Interest expense 87  17 
Depreciation and amortization 245  160 
INCOME BEFORE INCOME TAXES $ 1,029  $ 578 
(1)Intersegment eliminations and other included $6 million and $17 million of costs associated with the planned separation of our filtration business for the three months ended March 31, 2023 and 2022.