Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.19.1
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2019
Apr. 01, 2018
Segment reporting    
Net Sales [1] $ 6,004 $ 5,570
Research, development and engineering expenses 237 210
Equity, royalty and interest income from investees 92 115
Interest income 12 7
Segment EBITDA 1,033 700
Depreciation and amortization (2) [2] 156 153
Less: Interest expense 32 24
INCOME BEFORE INCOME TAXES 845 523
Amortization of Debt Discount (Premium) 1 1
Engine    
Segment reporting    
Net Sales 2,653 2,446
Research, development and engineering expenses 78 79
Equity, royalty and interest income from investees 56 67
Interest income 4 2
Segment EBITDA 438 286
Depreciation and amortization (2) [2] 50 49
Distribution    
Segment reporting    
Net Sales 2,001 1,853
Research, development and engineering expenses 7 5
Equity, royalty and interest income from investees 11 13
Interest income 4 2
Segment EBITDA 171 123
Depreciation and amortization (2) [2] 29 27
Components    
Segment reporting    
Net Sales 1,861 1,753
Research, development and engineering expenses 75 62
Equity, royalty and interest income from investees 10 16
Interest income 2 1
Segment EBITDA 325 227
Depreciation and amortization (2) [2] 46 46
Power Systems    
Segment reporting    
Net Sales 1,077 1,074
Research, development and engineering expenses 56 57
Equity, royalty and interest income from investees 15 19
Interest income 2 2
Segment EBITDA 138 142
Depreciation and amortization (2) [2] 29 30
Electrified Power    
Segment reporting    
Net Sales 3 2
Research, development and engineering expenses 21 7
Equity, royalty and interest income from investees 0 0
Interest income 0 0
Segment EBITDA (29) (10)
Depreciation and amortization (2) [2] 2 1
Total Segments    
Segment reporting    
Net Sales 7,595 7,128
Research, development and engineering expenses 237 210
Equity, royalty and interest income from investees 92 115
Interest income 12 7
Segment EBITDA 1,043 768
Depreciation and amortization (2) [2] 156 153
Intersegment Eliminations    
Segment reporting    
Net Sales [3] (1,591) (1,558)
Non-segment items    
Segment reporting    
Segment EBITDA [3] (10) (68)
External Sales    
Segment reporting    
Net Sales 6,004 5,570
External Sales | Engine    
Segment reporting    
Net Sales 1,984 1,813
External Sales | Distribution    
Segment reporting    
Net Sales 1,993 1,847
External Sales | Components    
Segment reporting    
Net Sales 1,401 1,313
External Sales | Power Systems    
Segment reporting    
Net Sales 623 595
External Sales | Electrified Power    
Segment reporting    
Net Sales 3 2
External Sales | Total Segments    
Segment reporting    
Net Sales 6,004 5,570
Intersegment sales | Engine    
Segment reporting    
Net Sales 669 633
Intersegment sales | Distribution    
Segment reporting    
Net Sales 8 6
Intersegment sales | Components    
Segment reporting    
Net Sales 460 440
Intersegment sales | Power Systems    
Segment reporting    
Net Sales 454 479
Intersegment sales | Electrified Power    
Segment reporting    
Net Sales 0 0
Intersegment sales | Total Segments    
Segment reporting    
Net Sales 1,591 1,558
Intersegment sales | Intersegment Eliminations    
Segment reporting    
Net Sales [3] $ (1,591) $ (1,558)
[1] Includes sales to nonconsolidated equity investees of $285 million and $297 million for the three months ended March 31, 2019 and April 1, 2018, 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 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."
[3] 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.