Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENTS FINANCIAL INFORMATION (Details)

v3.3.1.900
OPERATING SEGMENTS FINANCIAL INFORMATION (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Operating results:      
Total sales [1] $ 19,110 $ 19,221 $ 17,301
Depreciation and amortization [2] 511 452 405
Research, development and engineering expenses 735 754 713
Equity, royalty and interest income from investees 315 370 361
Interest income 24 23 27
Segment EBIT (Excluding asset impairments and restructuring actions and other charges) 2,391    
Impairment of light-duty diesel assets 211 [3] 0 0
Restructuring actions and other charges [4] 90    
Segment EBIT 2,090 2,498 2,160
Amortization of Debt Discount (Premium) 3 3 2
Loss contingency (Note 14) 60 0 0
Gain on remeasurement of pre-existing ownership interest in the acquiree company 18 73 12
Less: Interest expense 65 64 41
INCOME BEFORE INCOME TAXES 2,025 2,434 2,119
Statement of Financial Position      
Investments and advances related to equity method investees 975 981 931
Capital expenditures 744 743 676
Net assets for operating segments 9,064 9,737 9,646
Liabilities deducted in arriving at net assets 5,920 6,009 5,103
Pension and other postretirement benefit adjustments excluded from net assets (242) (319) (346)
Deferred tax assets not allocated to segments 390 314 292
Debt-related costs not allocated to segments 2 23 33
Total assets 15,134 15,764 14,728
Engine      
Operating results:      
Depreciation and amortization [2] 239 207 205
Research, development and engineering expenses 428 438 416
Equity, royalty and interest income from investees 171 147 136
Interest income 13 12 16
Segment EBIT (Excluding asset impairments and restructuring actions and other charges) [5] 1,035    
Impairment of light-duty diesel assets [3] 202    
Restructuring actions and other charges [4] 26    
Segment EBIT 807 [5] 1,225 1,041
Loss contingency (Note 14) [5] 60    
Statement of Financial Position      
Investments and advances related to equity method investees 491 468 419
Capital expenditures 428 395 372
Net assets for operating segments 3,238 3,450 4,323
Distribution      
Operating results:      
Depreciation and amortization [2] 105 86 54
Research, development and engineering expenses 10 9 6
Equity, royalty and interest income from investees 78 148 165
Interest income 4 4 2
Segment EBIT (Excluding asset impairments and restructuring actions and other charges) [6] 435    
Restructuring actions and other charges [4] 23    
Segment EBIT [6] 412 491 388
Gain on remeasurement of pre-existing ownership interest in the acquiree company 18 73 12
Statement of Financial Position      
Investments and advances related to equity method investees 192 209 262
Capital expenditures 125 89 57
Net assets for operating segments 2,330 2,441 1,637
Components      
Operating results:      
Depreciation and amortization [2] 109 106 96
Research, development and engineering expenses 236 230 218
Equity, royalty and interest income from investees 35 36 28
Interest income 4 4 3
Segment EBIT (Excluding asset impairments and restructuring actions and other charges) 749    
Impairment of light-duty diesel assets [3] 9    
Restructuring actions and other charges [4] 13    
Segment EBIT 727 684 527
Statement of Financial Position      
Investments and advances related to equity method investees 150 164 140
Capital expenditures 137 162 141
Net assets for operating segments 1,891 2,152 1,885
Power Generation      
Operating results:      
Depreciation and amortization [2] 58 53 50
Research, development and engineering expenses 61 77 73
Equity, royalty and interest income from investees 31 39 32
Interest income 3 3 6
Segment EBIT (Excluding asset impairments and restructuring actions and other charges) 175    
Restructuring actions and other charges 19 [4] 32  
Segment EBIT 156 168 [7] 218
Statement of Financial Position      
Investments and advances related to equity method investees 142 140 110
Capital expenditures 54 97 106
Net assets for operating segments 1,605 1,694 1,801
Non-Segment      
Operating results:      
Segment EBIT (Excluding asset impairments and restructuring actions and other charges) [8] (3)    
Restructuring actions and other charges [4],[8] 9    
Segment EBIT [8] (12) (70) (14)
External Sales      
Operating results:      
Total sales 19,110 19,221 17,301
External Sales | Engine      
Operating results:      
Total sales 7,540 8,437 8,270
External Sales | Distribution      
Operating results:      
Total sales 6,198 5,135 3,726
External Sales | Components      
Operating results:      
Total sales 3,745 3,791 3,151
External Sales | Power Generation      
Operating results:      
Total sales 1,627 1,858 2,154
Intersegment Eliminations | Engine      
Operating results:      
Total sales 2,909 2,525 1,743
Intersegment Eliminations | Distribution      
Operating results:      
Total sales 31 39 23
Intersegment Eliminations | Components      
Operating results:      
Total sales 1,427 1,327 1,191
Intersegment Eliminations | Power Generation      
Operating results:      
Total sales 1,113 1,038 877
Intersegment Eliminations | Non-Segment      
Operating results:      
Total sales [8] (5,480) (4,929) (3,834)
Reportable Segment      
Operating results:      
Total sales 19,110 19,221 17,301
Reportable Segment | Engine      
Operating results:      
Total sales 10,449 10,962 10,013
Reportable Segment | Distribution      
Operating results:      
Total sales 6,229 5,174 3,749
Reportable Segment | Components      
Operating results:      
Total sales 5,172 5,118 4,342
Reportable Segment | Power Generation      
Operating results:      
Total sales 2,740 2,896 3,031
Reportable Segment | Non-segment items      
Operating results:      
Total sales [8] $ (5,480) $ (4,929) $ (3,834)
[1] Includes sales to nonconsolidated equity investees of $1,209 million, $2,063 million and $2,319 million for the years ended December 31, 2015, 2014 and 2013, respectively.
[2] Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs that are included in the Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs were $3 million, $3 million and $2 million for the years ended December 31, 2015, 2014 and 2013, respectively.
[3] See Note 3, "IMPAIRMENT OF LIGHT-DUTY DIESEL ASSETS," for additional information.
[4] See Note 4, "RESTRUCTURING ACTIONS AND OTHER CHARGES," for additional information.
[5] Engine segment EBIT for the year ended December 31, 2015 included an accrual for a loss contingency of $60 million. See Note 14, "COMMITMENTS AND CONTINGENCIES," for additional information.
[6] Distribution segment EBIT included gains on the fair value adjustment resulting from the acquisition of controlling interests in North American distributors of $18 million, $73 million and $12 million for the periods ended December 31, 2015, 2014 and 2013, respectively. See Note 20, "ACQUISITIONS," for additional information.
[7] Power Generation segment EBIT included $32 million of restructuring charges primarily related to the closure of a plant in Germany.
[8] Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. The year ended December 31, 2015, includes a $9 million corporate restructuring charge. There were no significant unallocated corporate expenses for the years ended December 31, 2014 and 2013.