Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.10.0.1
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2018
Oct. 01, 2017
Sep. 30, 2018
Oct. 01, 2017
Segment reporting        
Revenues [1] $ 5,943 $ 5,285 $ 17,645 $ 14,952
Research, development and engineering expenses 229 213 658 546
Equity, royalty and interest income from investees 90 95 315 301
Interest income 9 4 26 11
Segment EBITDA 983 788 2,580 2,257
Depreciation and amortization (2) 148 [2] 148 [2] 455 [3] 431 [3]
Less: Interest expense 30 18 82 57
INCOME BEFORE INCOME TAXES 805 622 2,043 1,769
Amortization of Debt Discount (Premium)     1 2
Engine        
Segment reporting        
Revenues 2,726 2,336 7,868 6,666
Research, development and engineering expenses 74 83 229 200
Equity, royalty and interest income from investees 55 58 189 186
Interest income 3 1 8 4
Segment EBITDA 405 276 1,053 872
Depreciation and amortization (2) 46 [2] 47 [2] 142 [3] 137 [3]
Distribution        
Segment reporting        
Revenues 1,931 1,753 5,778 5,120
Research, development and engineering expenses 5 6 15 14
Equity, royalty and interest income from investees 9 11 33 35
Interest income 4 2 9 4
Segment EBITDA 155 120 423 377
Depreciation and amortization (2) 27 [2] 29 [2] 81 [3] 90 [3]
Components        
Segment reporting        
Revenues 1,754 1,533 5,394 4,331
Research, development and engineering expenses 71 63 195 171
Equity, royalty and interest income from investees 12 12 42 40
Interest income 1 0 4 1
Segment EBITDA 288 259 752 703
Depreciation and amortization (2) 44 [2] 42 [2] 137 [3] 117 [3]
Power Systems        
Segment reporting        
Revenues 1,107 1,056 3,427 2,955
Research, development and engineering expenses 57 61 174 161
Equity, royalty and interest income from investees 14 14 51 40
Interest income 1 1 5 2
Segment EBITDA 163 111 491 286
Depreciation and amortization (2) 29 [2] 30 [2] 91 [3] 87 [3]
Electrified Power        
Segment reporting        
Revenues 2 0 5 0
Research, development and engineering expenses 22 0 45 0
Equity, royalty and interest income from investees 0 0 0 0
Interest income 0 0 0 0
Segment EBITDA (30) 0 (61) 0
Depreciation and amortization (2) 2 [2] 0 [2] 4 [3] 0 [3]
Total Segments        
Segment reporting        
Revenues 7,520 6,678 22,472 19,072
Research, development and engineering expenses 229 213 658 546
Equity, royalty and interest income from investees 90 95 315 301
Interest income 9 4 26 11
Segment EBITDA 981 766 2,658 2,238
Depreciation and amortization (2) 148 [2] 148 [2] 455 [3] 431 [3]
Intersegment Eliminations        
Segment reporting        
Revenues (1,577) [4] (1,393) [4] (4,827) [5] (4,120) [5]
Non-segment items        
Segment reporting        
Segment EBITDA 2 [4] 22 [4] (78) [5] 19 [5]
External Sales        
Segment reporting        
Revenues 5,943 5,285 17,645 14,952
External Sales | Engine        
Segment reporting        
Revenues 2,082 1,783 5,945 4,951
External Sales | Distribution        
Segment reporting        
Revenues 1,927 1,748 5,762 5,101
External Sales | Components        
Segment reporting        
Revenues 1,297 1,139 4,012 3,183
External Sales | Power Systems        
Segment reporting        
Revenues 636 615 1,922 1,717
External Sales | Electrified Power        
Segment reporting        
Revenues 1 0 4 0
External Sales | Total Segments        
Segment reporting        
Revenues 5,943 5,285 17,645 14,952
Intersegment sales | Engine        
Segment reporting        
Revenues 644 553 1,923 1,715
Intersegment sales | Distribution        
Segment reporting        
Revenues 4 5 16 19
Intersegment sales | Components        
Segment reporting        
Revenues 457 394 1,382 1,148
Intersegment sales | Power Systems        
Segment reporting        
Revenues 471 441 1,505 1,238
Intersegment sales | Electrified Power        
Segment reporting        
Revenues 1 0 1 0
Intersegment sales | Total Segments        
Segment reporting        
Revenues 1,577 1,393 4,827 4,120
Intersegment sales | Intersegment Eliminations        
Segment reporting        
Revenues $ (1,577) [4] $ (1,393) [4] $ (4,827) [5] $ (4,120) [5]
[1] Includes sales to nonconsolidated equity investees of $314 million and $951 million and $285 million and $835 million for the three and nine months ended September 30, 2018 and October 1, 2017, 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." A portion of depreciation expense is included in "Research, development and engineering expenses."
[3] 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 was $1 million and $2 million for the nine month periods ended September 30, 2018 and October 1, 2017, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
[4] Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended September 30, 2018 and October 1, 2017.
[5] Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended September 30, 2018 and October 1, 2017.