Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v3.19.1
OPERATING SEGMENTS (Tables)
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Financial information regarding reportable operating segments Summarized financial information regarding our reportable operating segments for the three months ended is shown in the table below:
In millions
 
Engine
 
Distribution
 
Components
 
Power Systems
 
Electrified Power
 
Total Segments
 
Intersegment Eliminations (1)
 
Total
Three months ended March 31, 2019
 
 

 
 
 
 

 
 

 
 
 
 
 
 

 
 

External sales
 
$
1,984

 
$
1,993

 
$
1,401

 
$
623

 
$
3

 
$
6,004

 
$

 
$
6,004

Intersegment sales
 
669

 
8

 
460

 
454

 

 
1,591

 
(1,591
)
 

Total sales
 
2,653

 
2,001

 
1,861

 
1,077

 
3

 
7,595

 
(1,591
)
 
6,004

Research, development and engineering expenses
 
78

 
7

 
75

 
56

 
21

 
237

 

 
237

Equity, royalty and interest income from investees
 
56

 
11

 
10

 
15

 

 
92

 

 
92

Interest income
 
4

 
4

 
2

 
2

 

 
12

 

 
12

Segment EBITDA
 
438

 
171

 
325

 
138

 
(29
)
 
1,043

 
(10
)
 
1,033

Depreciation and amortization (2)
 
50

 
29

 
46

 
29

 
2

 
156

 

 
156

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended April 1, 2018
 
 

 
 

 
 

 
 

 
 
 
 
 
 

 
 

External sales
 
$
1,813

 
$
1,847

 
$
1,313

 
$
595

 
$
2

 
$
5,570

 
$

 
$
5,570

Intersegment sales
 
633

 
6

 
440

 
479

 

 
1,558

 
(1,558
)
 

Total sales
 
2,446

 
1,853

 
1,753

 
1,074

 
2

 
7,128

 
(1,558
)
 
5,570

Research, development and engineering expenses
 
79

 
5

 
62

 
57

 
7

 
210

 

 
210

Equity, royalty and interest income from investees
 
67

 
13

 
16

 
19

 

 
115

 

 
115

Interest income
 
2

 
2

 
1

 
2

 

 
7

 

 
7

Segment EBITDA
 
286

 
123

 
227

 
142

 
(10
)
 
768

 
(68
)
 
700

Depreciation and amortization (2)
 
49

 
27

 
46

 
30

 
1

 
153

 

 
153

____________________________________
(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 March 31, 2019 and April 1, 2018.
(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 Net Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million and $1 million for the three month periods ended March 31, 2019 and April 1, 2018. A portion of depreciation expense is included in "Research, development and engineering expenses."
Reconciliation of segment information A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:
 
 
Three months ended
In millions
 
March 31,
2019
 
April 1,
2018
Total EBITDA
 
$
1,033

 
$
700

Less:
 
 
 
 
Depreciation and amortization
 
156

 
153

Interest expense
 
32

 
24

Income before income taxes
 
$
845

 
$
523