Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v3.4.0.3
OPERATING SEGMENTS (Tables)
 3 Months Ended
Apr. 03, 2016
Segment Reporting [Abstract]  
Financial information regarding reportable operating segments
Summarized financial information regarding our reportable operating segments for the three month periods is shown in the table below:
In millions
 
Engine
 
Distribution
 
Components
 
Power Generation
 
Non-segment
Items (1)
 
Total
Three months ended April 3, 2016
 
 

 
 
 
 

 
 

 
 

 
 

External sales
 
$
1,624

 
$
1,458

 
$
897

 
$
312

 
$
—

 
$
4,291

Intersegment sales
 
710

 
5

 
340

 
238

 
(1,293
)
 
—

Total sales
 
2,334

 
1,463

 
1,237

 
550

 
(1,293
)
 
4,291

Depreciation and amortization(2)
 
58

 
26

 
27

 
16

 
—

 
127

Research, development and engineering expenses
 
97

 
2

 
54

 
13

 
—

 
166

Equity, royalty and interest income from investees
 
41

 
18

 
8

 
5

 
—

 
72

Interest income
 
3

 
1

 
1

 
1

 
—

 
6

Segment EBIT
 
200

 
95

 
173

 
31

 
(15
)
 
484

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 29, 2015
 
 

 
 

 
 

 
 

 
 

 
 

External sales
 
$
1,889

 
$
1,469

 
$
931

 
$
420

 
$
—

 
$
4,709

Intersegment sales
 
707

 
7

 
368

 
260

 
(1,342
)
 
—

Total sales
 
2,596

 
1,476

 
1,299

 
680

 
(1,342
)
 
4,709

Depreciation and amortization(2)
 
58

 
27

 
26

 
16

 
—

 
127

Research, development and engineering expenses
 
114

 
3

 
61

 
17

 
—

 
195

Equity, royalty and interest income from investees
 
30

 
20

 
9

 
9

 
—

 
68

Interest income
 
2

 
1

 
1

 
1

 
—

 
5

Segment EBIT
 
253

 
88

 
195

 
49

 
(23
)
 
562

____________________________________
(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 April 3, 2016 and March 29, 2015.
(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 $1 million and $1 million for the three months ended April 3, 2016 and March 29, 2015, respectively.
Reconciliation of segment information
A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:
 
 
Three months ended
In millions
 
April 3,
2016
 
March 29,
2015
Total segment EBIT
 
$
484

 
$
562

Less: Interest expense
 
19

 
14

Income before income taxes
 
$
465

 
$
548