Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.7.0.1
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 02, 2017
Oct. 02, 2016
Jul. 03, 2016
Dec. 31, 2015
Jul. 02, 2017
Jul. 03, 2016
Operating results:            
Total sales [1] $ 5,078   $ 4,528   $ 9,667 $ 8,819
Depreciation and amortization [2] 144   131   283 258
Research, development and engineering expenses 174   155   332 321
Equity, royalty and interest income from investees 98   88   206 160
Loss contingency 0   39 [3] $ 60 0 39 [3]
Interest income 5   6   7 12
Segment EBIT 620   591   1,186 1,075
Less: Interest expense 21   16   39 35
INCOME BEFORE INCOME TAXES 599   575   1,147 1,040
Amortization of Debt Discount (Premium)         1 1
Engine            
Operating results:            
Total sales 2,307   2,002   4,330 3,978
Depreciation and amortization [2] 46   41   90 80
Research, development and engineering expenses 63   53   117 110
Equity, royalty and interest income from investees 56   46   128 82
Loss contingency   $ 99 39 [3]     39 [3]
Interest income 2   3   3 5
Segment EBIT 277   206   506 403
Distribution            
Operating results:            
Total sales 1,722   1,544   3,367 3,007
Depreciation and amortization [2] 31   29   61 57
Research, development and engineering expenses 4   3   8 7
Equity, royalty and interest income from investees 13   19   24 37
Interest income 1   1   2 2
Segment EBIT 96   87   196 174
Components            
Operating results:            
Total sales 1,454   1,279   2,798 2,516
Depreciation and amortization [2] 38   32   75 63
Research, development and engineering expenses 57   51   107 107
Equity, royalty and interest income from investees 15   12   28 20
Interest income 1   1   1 2
Segment EBIT 190   190   369 353
Power Systems            
Operating results:            
Total sales 1,017   921   1,899 1,729
Depreciation and amortization [2] 29   29   57 58
Research, development and engineering expenses 50   48   100 97
Equity, royalty and interest income from investees 14   11   26 21
Interest income 1   1   1 3
Segment EBIT 61   90   118 136
Intersegment Eliminations            
Operating results:            
Total sales [4] (1,422)   (1,218)   (2,727) (2,411)
Non-segment items            
Operating results:            
Segment EBIT [4] (4)   18   (3) 9
External Sales            
Operating results:            
Total sales 5,078   4,528   9,667 8,819
External Sales | Engine            
Operating results:            
Total sales 1,711   1,504   3,168 2,993
External Sales | Distribution            
Operating results:            
Total sales 1,716   1,538   3,353 2,996
External Sales | Components            
Operating results:            
Total sales 1,064   933   2,044 1,830
External Sales | Power Systems            
Operating results:            
Total sales 587   553   1,102 1,000
Intersegment sales | Engine            
Operating results:            
Total sales 596   498   1,162 985
Intersegment sales | Distribution            
Operating results:            
Total sales 6   6   14 11
Intersegment sales | Components            
Operating results:            
Total sales 390   346   754 686
Intersegment sales | Power Systems            
Operating results:            
Total sales 430   368   797 729
Intersegment sales | Intersegment Eliminations            
Operating results:            
Total sales [4] $ (1,422)   $ (1,218)   $ (2,727) $ (2,411)
[1] Includes sales to nonconsolidated equity investees of $283 million and $550 million and $276 million and $518 million for the three and six months ended July 2, 2017 and July 3, 2016, 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 $1 million and $1 million for the six months ended July 2, 2017 and July 3, 2016, respectively.
[3] See Note 9, "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 six months ended July 2, 2017 and July 3, 2016.