Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.3.0.814
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 27, 2015
Sep. 28, 2014
Sep. 27, 2015
Sep. 28, 2014
Operating results:        
Total sales [1] $ 4,620 $ 4,890 $ 14,344 $ 14,131
Depreciation and amortization [2] 128 112 381 328
Research, development and engineering expenses 197 198 558 567
Equity, royalty and interest income from investees 78 99 240 294
Interest income 9 6 20 17
Segment EBIT 577 684 1,860 1,869
Less: Interest expense 16 15 47 47
INCOME BEFORE INCOME TAXES 561 669 1,813 1,822
Gain on remeasurement of pre-existing ownership interest in the acquiree company     17 38
Amortization of debt discount and deferred costs excluded     2  
Minimum        
Operating results:        
Amortization of debt discount and deferred costs excluded       2
Engine        
Operating results:        
Depreciation and amortization [2] 60 50 178 153
Research, development and engineering expenses 116 114 321 335
Equity, royalty and interest income from investees 40 40 127 117
Interest income 6 3 11 9
Segment EBIT 252 330 846 910
Distribution        
Operating results:        
Depreciation and amortization [2] 26 22 78 58
Research, development and engineering expenses 2 2 8 7
Equity, royalty and interest income from investees 19 37 60 120
Interest income 1 1 3 2
Segment EBIT [3] 123 131 324 333
Gain on remeasurement of pre-existing ownership interest in the acquiree company 17 18 17 38
Components        
Operating results:        
Depreciation and amortization [2] 28 27 82 79
Research, development and engineering expenses 65 64 183 170
Equity, royalty and interest income from investees 9 9 26 27
Interest income 1 1 3 3
Segment EBIT 156 172 574 524
Power Generation        
Operating results:        
Depreciation and amortization [2] 14 13 43 38
Research, development and engineering expenses 14 18 46 55
Equity, royalty and interest income from investees 10 13 27 30
Interest income 1 1 3 3
Segment EBIT 42 60 148 146
Non-segment items        
Operating results:        
Segment EBIT [4] 4 (9) (32) (44)
External Sales        
Operating results:        
Total sales 4,620 4,890 14,344 14,131
External Sales | Engine        
Operating results:        
Total sales 1,800 2,181 5,747 6,449
External Sales | Distribution        
Operating results:        
Total sales 1,543 1,282 4,499 3,453
External Sales | Components        
Operating results:        
Total sales 891 946 2,839 2,821
External Sales | Power Generation        
Operating results:        
Total sales 386 481 1,259 1,408
Intersegment sales | Engine        
Operating results:        
Total sales 728 635 2,174 1,674
Intersegment sales | Distribution        
Operating results:        
Total sales 8 10 23 27
Intersegment sales | Components        
Operating results:        
Total sales 349 341 1,097 976
Intersegment sales | Power Generation        
Operating results:        
Total sales 273 273 827 728
Intersegment sales | Non-segment items        
Operating results:        
Total sales [4] (1,358) (1,259) (4,121) (3,405)
Reportable segment        
Operating results:        
Total sales 4,620 4,890    
Reportable segment | Engine        
Operating results:        
Total sales 2,528 2,816 7,921 8,123
Reportable segment | Distribution        
Operating results:        
Total sales 1,551 1,292 4,522 3,480
Reportable segment | Components        
Operating results:        
Total sales 1,240 1,287 3,936 3,797
Reportable segment | Power Generation        
Operating results:        
Total sales 659 754 2,086 2,136
Reportable segment | Non-segment items        
Operating results:        
Total sales [4] $ (1,358) $ (1,259) $ (4,121) $ (3,405)
[1] Includes sales to nonconsolidated equity investees of $274 million and $956 million and $518 million and $1,656 million for the three and nine month periods ended September 27, 2015 and September 28, 2014, respectively.
[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 Income as "Interest expense." The amortization of debt discount and deferred costs were $2 million and $2 million for the nine months ended September 27, 2015 and September 28, 2014, respectively.
[3] Distribution segment EBIT included gains of $17 million for both the three and nine month periods ended September 27, 2015 and $18 million and $38 million for the three and nine month periods ended September 28, 2014, respectively, on the fair value adjustments resulting from the acquisition of the controlling interests in North American distributors. See Note 3, "ACQUISITIONS," for additional information.
[4] Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three and nine months ended September 27, 2015 and September 28, 2014.