Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v3.7.0.1
OPERATING SEGMENTS (Tables)
 3 Months Ended
Apr. 02, 2017
Segment Reporting [Abstract]  
Financial information regarding reportable operating segments
Summarized financial information regarding our reportable operating segments is shown in the table below:
In millions
 
Engine
 
Distribution
 
Components
 
Power Systems
 
Non-segment
Items (1)
 
Total
Three months ended April 2, 2017
 
 

 
 
 
 

 
 

 
 

 
 

External sales
 
$
1,457

 
$
1,637

 
$
980

 
$
515

 
$
—

 
$
4,589

Intersegment sales
 
566

 
8

 
364

 
367

 
(1,305
)
 
—

Total sales
 
2,023

 
1,645

 
1,344

 
882

 
(1,305
)
 
4,589

Depreciation and amortization (2)
 
44

 
30

 
37

 
28

 
—

 
139

Research, development and engineering expenses
 
54

 
4

 
50

 
50

 
—

 
158

Equity, royalty and interest income from investees
 
72

 
11

 
13

 
12

 
—

 
108

Interest income
 
1

 
1

 
—

 
—

 
—

 
2

Segment EBIT
 
229

 
100

 
179

 
57

 
1

 
566

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended April 3, 2016 (3)
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,489

 
$
1,458

 
$
897

 
$
447

 
$
—

 
$
4,291

Intersegment sales
 
487

 
5

 
340

 
361

 
(1,193
)
 
—

Total sales
 
1,976

 
1,463

 
1,237

 
808

 
(1,193
)
 
4,291

Depreciation and amortization (2)
 
39

 
28

 
31

 
29

 
—

 
127

Research, development and engineering expenses
 
57

 
4

 
56

 
49

 
—

 
166

Equity, royalty and interest income from investees
 
36

 
18

 
8

 
10

 
—

 
72

Interest income
 
2

 
1

 
1

 
2

 
—

 
6

Segment EBIT
 
197

 
87

 
163

 
46

 
(9
)
 
484

____________________________________
(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 2, 2017 and April 3, 2016.
(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."
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 2,
2017
 
April 3,
2016
Total segment EBIT
 
$
566

 
$
484

Less: Interest expense
 
18

 
19

Income before income taxes
 
$
548

 
$
465