Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.8.0.1
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 01, 2017
Oct. 02, 2016
Oct. 01, 2017
Oct. 02, 2016
Operating results:        
Total sales [1] $ 5,285 $ 4,187 $ 14,952 $ 13,006
Depreciation and amortization [2] 148 131 431 389
Research, development and engineering expenses 213 157 545 478
Equity, royalty and interest income from investees 95 74 301 234
Loss contingency 0 99 [3] 0 138 [3]
Interest income 4 6 11 18
Segment EBIT 640 398 1,826 1,473
Less: Interest expense 18 16 57 51
INCOME BEFORE INCOME TAXES 622 382 1,769 1,422
Amortization of Debt Discount (Premium)     2 2
Engine        
Operating results:        
Total sales 2,336 1,859 6,666 5,837
Depreciation and amortization [2] 47 42 137 122
Research, development and engineering expenses 83 56 200 166
Equity, royalty and interest income from investees 58 38 186 120
Loss contingency [3]       138
Interest income 1 3 4 8
Segment EBIT 229 89 735 492
Distribution        
Operating results:        
Total sales 1,753 1,504 5,120 4,511
Depreciation and amortization [2] 29 28 90 85
Research, development and engineering expenses 6 3 14 10
Equity, royalty and interest income from investees 11 19 35 56
Interest income 2 1 4 3
Segment EBIT 91 96 287 270
Components        
Operating results:        
Total sales [4] 1,533 1,143 4,331 3,659
Depreciation and amortization [2],[4] 42 32 117 95
Research, development and engineering expenses [4] 63 54 170 161
Equity, royalty and interest income from investees [4] 12 9 40 29
Interest income [4] 0 1 1 3
Segment EBIT [4] 217 148 586 501
Power Systems        
Operating results:        
Total sales 1,056 856 2,955 2,585
Depreciation and amortization [2] 30 29 87 87
Research, development and engineering expenses 61 44 161 141
Equity, royalty and interest income from investees 14 8 40 29
Interest income 1 1 2 4
Segment EBIT 81 59 199 195
Total Segment        
Operating results:        
Total sales 6,678 5,362 19,072 16,592
Depreciation and amortization [2] 148 131 431 389
Research, development and engineering expenses 213 157 545 478
Equity, royalty and interest income from investees 95 74 301 234
Loss contingency [3]   99   138
Interest income 4 6 11 18
Segment EBIT 618 392 1,807 1,458
Intersegment Eliminations        
Operating results:        
Total sales [5] (1,393) (1,175) (4,120) (3,586)
Non-segment items        
Operating results:        
Segment EBIT [5] 22 6 19 15
External Sales        
Operating results:        
Total sales 5,285 4,187 14,952 13,006
External Sales | Engine        
Operating results:        
Total sales 1,783 1,357 4,951 4,350
External Sales | Distribution        
Operating results:        
Total sales 1,748 1,497 5,101 4,493
External Sales | Components        
Operating results:        
Total sales [4] 1,139 824 3,183 2,654
External Sales | Power Systems        
Operating results:        
Total sales 615 509 1,717 1,509
External Sales | Total Segment        
Operating results:        
Total sales 5,285 4,187 14,952 13,006
Intersegment sales | Engine        
Operating results:        
Total sales 553 502 1,715 1,487
Intersegment sales | Distribution        
Operating results:        
Total sales 5 7 19 18
Intersegment sales | Components        
Operating results:        
Total sales [4] 394 319 1,148 1,005
Intersegment sales | Power Systems        
Operating results:        
Total sales 441 347 1,238 1,076
Intersegment sales | Total Segment        
Operating results:        
Total sales 1,393 1,175 4,120 3,586
Intersegment sales | Intersegment Eliminations        
Operating results:        
Total sales [5] $ (1,393) $ (1,175) $ (4,120) $ (3,586)
[1] Includes sales to nonconsolidated equity investees of $285 million and $835 million and $275 million and $793 million for the three and nine months ended October 1, 2017 and October 2, 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 $2 million and $2 million for the nine months ended October 1, 2017 and October 2, 2016, respectively.
[3] See Note 9, "COMMITMENTS AND CONTINGENCIES," for additional information.
[4] The 2017 disclosures include Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See Note 11 , "ACQUISITION," for additional information.
[5] 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 1, 2017 and October 2, 2016.