Financial information regarding reportable operating segments |
Summarized financial information regarding our reportable operating segments for the three and nine months ended September 30, 2024 and 2023 is shown in the table below:
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In millions |
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Components |
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Engine |
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Distribution |
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Power Systems |
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Accelera |
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Total Segments |
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Three months ended September 30, 2024 |
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External sales |
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$ |
2,287
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$ |
2,215
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$ |
2,942
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$ |
912
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$ |
100
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$ |
8,456
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Intersegment sales |
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437
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698
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10
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775
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10
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1,930
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Total sales |
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2,724
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2,913
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2,952
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1,687
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110
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10,386
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Research, development and engineering expenses |
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85
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147
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13
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57
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57
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359
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Equity, royalty and interest income (loss) from investees |
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12
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53
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25
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20
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(11) |
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99
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Interest income |
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4
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2
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7
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1
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—
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14
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Segment EBITDA |
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351
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427
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370
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328
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(115) |
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1,361
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Depreciation and amortization (1)
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121
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62
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31
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33
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16
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263
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Three months ended September 30, 2023 |
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External sales |
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$ |
2,780 |
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$ |
2,236 |
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$ |
2,519 |
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$ |
798 |
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$ |
98 |
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$ |
8,431 |
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Intersegment sales |
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456 |
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|
695 |
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16 |
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646 |
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5 |
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1,818 |
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Total sales |
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3,236 |
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2,931 |
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2,535 |
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1,444 |
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103 |
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10,249 |
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Research, development and engineering expenses |
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93 |
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|
159 |
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14 |
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60 |
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50 |
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376 |
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Equity, royalty and interest income (loss) from investees |
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26 |
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62 |
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22 |
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11 |
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(3) |
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118 |
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Interest income |
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8 |
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4 |
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9 |
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3 |
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— |
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24 |
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Segment EBITDA |
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441 |
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(2) |
395 |
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|
306 |
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|
234 |
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(114) |
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1,262 |
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Depreciation and amortization (1)
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|
120 |
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59 |
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28 |
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30 |
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18 |
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255 |
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Nine months ended September 30, 2024 |
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External sales |
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$ |
7,647
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$ |
6,923
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$ |
8,292
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$ |
2,508
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$ |
285
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$ |
25,655
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Intersegment sales |
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1,391
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2,069
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24
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2,157
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29
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5,670
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Total sales |
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9,038
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8,992
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8,316
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4,665
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314
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31,325
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Research, development and engineering expenses |
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250
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468
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41
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180
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166
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1,105
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Equity, royalty and interest income (loss) from investees |
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51
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158
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73
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|
65
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(22) |
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|
325
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Interest income |
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21
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16
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29
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7
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—
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73
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Segment EBITDA |
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1,230
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(2) |
1,286
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978
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866
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(333) |
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4,027
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Depreciation and amortization (1)
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|
367
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181
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92
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99
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45
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784
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Nine months ended September 30, 2023 |
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External sales |
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$ |
8,747 |
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$ |
6,751 |
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$ |
7,494 |
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$ |
2,271 |
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$ |
259 |
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$ |
25,522 |
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Intersegment sales |
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1,471 |
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2,154 |
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|
42 |
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1,973 |
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14 |
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5,654 |
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Total sales |
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10,218 |
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8,905 |
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7,536 |
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4,244 |
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|
273 |
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31,176 |
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Research, development and engineering expenses |
|
287 |
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|
441 |
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43 |
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|
189 |
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|
150 |
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1,110 |
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Equity, royalty and interest income (loss) from investees |
|
71 |
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|
198 |
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|
70 |
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|
42 |
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(11) |
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|
370 |
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Interest income |
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21 |
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|
14 |
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24 |
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7 |
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1 |
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67 |
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Segment EBITDA |
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1,434 |
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(2) |
1,277 |
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|
940 |
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|
654 |
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(322) |
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3,983 |
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Depreciation and amortization (1)
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|
368 |
|
|
166 |
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|
84 |
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|
91 |
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|
47 |
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|
756 |
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(1) 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 $10 million and $4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
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(2) Included $21 million of costs associated with the divestiture of Atmus for the nine months ended September 30, 2024. Included $20 million and $50 million of costs associated with the divestiture of Atmus for the three and nine months ended September 30, 2023. See NOTE 14, "ATMUS INITIAL PUBLIC OFFERING (IPO) AND DIVESTITURE," for additional information.
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Reconciliation of segment information |
A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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In millions |
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2024 |
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2023 |
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2024 |
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2023 |
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TOTAL SEGMENT EBITDA |
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$ |
1,361
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$ |
1,262 |
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$ |
4,027
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$ |
3,983 |
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Intersegment eliminations and other (1)
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28
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(32) |
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(2) |
1,279
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(3) |
(88) |
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(2) |
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Less: |
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Interest expense |
|
83
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|
97 |
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|
281
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|
283 |
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Depreciation and amortization |
|
263
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|
255 |
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|
784
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|
756 |
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INCOME BEFORE INCOME TAXES |
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$ |
1,043
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$ |
878 |
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$ |
4,241
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$ |
2,856 |
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(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses.
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(2) Included $6 million and $17 million of costs associated with the divestiture of Atmus for the three and nine months ended September 30, 2023.
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(3) Included a $1.3 billion gain related the divestiture of Atmus and $14 million of costs associated with the divestiture of Atmus (included in corporate expenses) for the nine months ended September 30, 2024. See NOTE 14, "ATMUS INITIAL PUBLIC OFFERING (IPO) AND DIVESTITURE," for additional information.
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