Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.19.3
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 29, 2019
Sep. 30, 2018
Sep. 29, 2019
Sep. 30, 2018
Segment reporting        
Net Sales [1] $ 5,768 $ 5,943 $ 17,993 $ 17,645
Research, development and engineering expenses 242 229 730 658
Equity, royalty and interest income from investees 68 90 256 315
Interest income 14 9 38 26
Segment EBITDA 958 983 3,049 2,580
Depreciation and amortization 177 148 491 455
Less: Interest expense 26 30 87 82
INCOME BEFORE INCOME TAXES 755 805 2,471 2,043
Amortization of Debt Discount (Premium)     2 1
Engine        
Segment reporting        
Net Sales 2,416 2,726 7,772 7,868
Research, development and engineering expenses 79 74 245 229
Equity, royalty and interest income from investees 34 55 152 189
Interest income 5 3 13 8
Segment EBITDA 341 405 1,195 1,053
Depreciation and amortization 50 [2] 46 [2] 151 [3] 142 [3]
Distribution        
Segment reporting        
Net Sales 2,004 1,931 6,033 5,778
Research, development and engineering expenses 7 5 21 15
Equity, royalty and interest income from investees 12 9 35 33
Interest income 4 4 12 9
Segment EBITDA 186 155 529 423
Depreciation and amortization 29 [2] 27 [2] 86 [3] 81 [3]
Components        
Segment reporting        
Net Sales 1,650 1,754 5,357 5,394
Research, development and engineering expenses 73 71 223 195
Equity, royalty and interest income from investees 9 12 30 42
Interest income 2 1 6 4
Segment EBITDA 286 288 908 752
Depreciation and amortization 67 [2] 44 [2] 160 [3] 137 [3]
Power Systems        
Segment reporting        
Net Sales 1,126 1,107 3,406 3,427
Research, development and engineering expenses 58 57 171 174
Equity, royalty and interest income from investees 13 14 39 51
Interest income 3 1 7 5
Segment EBITDA 158 163 469 491
Depreciation and amortization 29 [2] 29 [2] 88 [3] 91 [3]
Electrified Power        
Segment reporting        
Net Sales 9 2 20 5
Research, development and engineering expenses 25 22 70 45
Equity, royalty and interest income from investees 0 0 0 0
Interest income 0 0 0 0
Segment EBITDA (36) (30) (98) (61)
Depreciation and amortization 2 [2] 2 [2] 6 [3] 4 [3]
Total Segments        
Segment reporting        
Net Sales 7,205 7,520 22,588 22,472
Research, development and engineering expenses 242 229 730 658
Equity, royalty and interest income from investees 68 90 256 315
Interest income 14 9 38 26
Segment EBITDA 935 981 3,003 2,658
Depreciation and amortization 177 [2] 148 [2] 491 [3] 455 [3]
Intersegment Eliminations        
Segment reporting        
Net Sales (1,437) [4] (1,577) [4] (4,595) [5] (4,827) [5]
Non-segment items        
Segment reporting        
Segment EBITDA 23 [4] 2 [4] 46 [5] (78) [5]
External Sales        
Segment reporting        
Net Sales 5,768 5,943 17,993 17,645
External Sales | Engine        
Segment reporting        
Net Sales 1,822 2,082 5,879 5,945
External Sales | Distribution        
Segment reporting        
Net Sales 2,001 1,927 6,009 5,762
External Sales | Components        
Segment reporting        
Net Sales 1,253 1,297 4,055 4,012
External Sales | Power Systems        
Segment reporting        
Net Sales 683 636 2,030 1,922
External Sales | Electrified Power        
Segment reporting        
Net Sales 9 1 20 4
External Sales | Total Segments        
Segment reporting        
Net Sales 5,768 5,943 17,993 17,645
Intersegment sales | Engine        
Segment reporting        
Net Sales 594 644 1,893 1,923
Intersegment sales | Distribution        
Segment reporting        
Net Sales 3 4 24 16
Intersegment sales | Components        
Segment reporting        
Net Sales 397 457 1,302 1,382
Intersegment sales | Power Systems        
Segment reporting        
Net Sales 443 471 1,376 1,505
Intersegment sales | Electrified Power        
Segment reporting        
Net Sales 0 1 0 1
Intersegment sales | Total Segments        
Segment reporting        
Net Sales 1,437 1,577 4,595 4,827
Intersegment sales | Intersegment Eliminations        
Segment reporting        
Net Sales $ (1,437) [4] $ (1,577) [4] $ (4,595) [5] $ (4,827) [5]
[1] Includes sales to nonconsolidated equity investees of $280 million and $882 million for the three and nine months ended September 29, 2019, compared with $314 million and $951 million for the comparable periods in 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." 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 Net Income as "Interest expense." The amortization of debt discount and deferred costs was $2 million and $1 million for the nine months ended September 29, 2019 and September 30, 2018, 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 29, 2019 and September 30, 2018.
[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 29, 2019 and September 30, 2018.