Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.5.0.2
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 02, 2016
Jul. 03, 2016
Dec. 31, 2015
Sep. 27, 2015
Oct. 02, 2016
Sep. 27, 2015
Operating results:            
Total sales [1] $ 4,187     $ 4,620 $ 13,006 $ 14,344
Depreciation and amortization [2] 131     128 389 381
Research, development and engineering expenses 157     197 478 558
Equity, royalty and interest income from investees 74     78 234 240
Loss Contingency, Loss in Period 99     0 138 0
Interest income 6     9 18 20
Segment EBIT 398     577 1,473 1,860
Less: Interest expense 16     16 51 47
INCOME BEFORE INCOME TAXES 382     561 1,422 1,813
Amortization of Debt Discount (Premium)         2 2
Engine            
Operating results:            
Total sales 1,859     2,102 5,837 6,572
Depreciation and amortization [2] 42     47 121 140
Research, development and engineering expenses 56     73 166 195
Equity, royalty and interest income from investees 38     33 120 107
Loss Contingency, Loss in Period 99 [3] $ 39 $ 60   138 [3]  
Interest income 3     6 8 10
Segment EBIT 89     217 492 695
Distribution            
Operating results:            
Total sales 1,504     1,551 4,511 4,522
Depreciation and amortization [2] 28     26 86 78
Research, development and engineering expenses 3     2 10 8
Equity, royalty and interest income from investees 19     19 56 60
Interest income 1     1 3 3
Segment EBIT 96     123 270 324
Components            
Operating results:            
Total sales 1,143     1,240 3,659 3,936
Depreciation and amortization [2] 32     28 95 82
Research, development and engineering expenses 54     65 161 183
Equity, royalty and interest income from investees 9     9 29 26
Interest income 1     1 3 3
Segment EBIT 148     156 501 574
Power Systems            
Operating results:            
Total sales 856     982 2,585 3,081
Depreciation and amortization [2] 29     27 87 81
Research, development and engineering expenses 44     57 141 172
Equity, royalty and interest income from investees 8     17 29 47
Interest income 1     1 4 4
Segment EBIT 59     74 195 302
Non-segment items            
Operating results:            
Total sales [4] (1,175)     (1,255) (3,586) (3,767)
Segment EBIT [4] 6     7 15 (35)
External Sales            
Operating results:            
Total sales 4,187     4,620 13,006 14,344
External Sales | Engine            
Operating results:            
Total sales 1,357     1,627 4,350 5,150
External Sales | Distribution            
Operating results:            
Total sales 1,497     1,543 4,493 4,499
External Sales | Components            
Operating results:            
Total sales 824     891 2,654 2,839
External Sales | Power Systems            
Operating results:            
Total sales 509     559 1,509 1,856
Intersegment sales | Engine            
Operating results:            
Total sales 502     475 1,487 1,422
Intersegment sales | Distribution            
Operating results:            
Total sales 7     8 18 23
Intersegment sales | Components            
Operating results:            
Total sales 319     349 1,005 1,097
Intersegment sales | Power Systems            
Operating results:            
Total sales 347     423 1,076 1,225
Intersegment sales | Non-segment items            
Operating results:            
Total sales [4] $ (1,175)     $ (1,255) $ (3,586) $ (3,767)
[1] Includes sales to nonconsolidated equity investees of $275 million and $793 million and $274 million and $956 million for the three and nine months ended October 2, 2016 and September 27, 2015, 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."
[3] See Note 10, "COMMITMENTS AND CONTINGENCIES," 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 October 2, 2016 and September 27, 2015.