| Financial information regarding reportable operating segments |
|
|
In millions
|
|
Engine
|
|
Components
|
|
Power
Generation
|
|
Distribution
|
|
Non-segment
Items(1)
|
|
Total
|
|
|
Three months ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
2,131
|
|
$
|
663
|
|
$
|
526
|
|
$
|
798
|
|
$
|
—
|
|
$
|
4,118
|
|
|
Intersegment sales
|
|
396
|
|
275
|
|
288
|
|
3
|
|
(962
|
)
|
—
|
|
|
Total sales
|
|
2,527
|
|
938
|
|
814
|
|
801
|
|
(962
|
)
|
4,118
|
|
|
Depreciation and amortization(2)
|
|
48
|
|
21
|
|
12
|
|
8
|
|
—
|
|
89
|
|
|
Research, development and engineering expenses
|
|
115
|
|
51
|
|
19
|
|
1
|
|
—
|
|
186
|
|
|
Equity, royalty and interest income from investees
|
|
25
|
|
7
|
|
12
|
|
50
|
|
—
|
|
94
|
|
|
Interest income
|
|
2
|
|
1
|
|
2
|
|
—
|
|
—
|
|
5
|
|
|
Segment EBIT
|
|
239
|
|
89
|
|
73
|
|
99
|
|
(4
|
)
|
496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 25, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
2,539
|
|
$
|
704
|
|
$
|
604
|
|
$
|
779
|
|
$
|
—
|
|
$
|
4,626
|
|
|
Intersegment sales
|
|
416
|
|
311
|
|
270
|
|
4
|
|
(1,001
|
)
|
—
|
|
|
Total sales
|
|
2,955
|
|
1,015
|
|
874
|
|
783
|
|
(1,001
|
)
|
4,626
|
|
|
Depreciation and amortization(2)
|
|
46
|
|
19
|
|
11
|
|
6
|
|
—
|
|
82
|
|
|
Research, development and engineering expenses
|
|
103
|
|
46
|
|
14
|
|
1
|
|
—
|
|
164
|
|
|
Equity, royalty and interest income from investees
|
|
35
|
|
7
|
|
16
|
|
44
|
|
—
|
|
102
|
|
|
Interest income
|
|
5
|
|
1
|
|
2
|
|
1
|
|
—
|
|
9
|
|
|
Segment EBIT
|
|
349
|
|
113
|
|
92
|
|
104
|
|
(18
|
)
|
640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
6,924
|
|
$
|
2,147
|
|
$
|
1,614
|
|
$
|
2,357
|
|
$
|
—
|
|
$
|
13,042
|
|
|
Intersegment sales
|
|
1,303
|
|
926
|
|
889
|
|
13
|
|
(3,131
|
)
|
—
|
|
|
Total sales
|
|
8,227
|
|
3,073
|
|
2,503
|
|
2,370
|
|
(3,131
|
)
|
13,042
|
|
|
Depreciation and amortization(2)
|
|
142
|
|
59
|
|
34
|
|
23
|
|
—
|
|
258
|
|
|
Research, development and engineering expenses
|
|
341
|
|
153
|
|
56
|
|
4
|
|
—
|
|
554
|
|
|
Equity, royalty and interest income from investees
|
|
100
|
|
23
|
|
32
|
|
147
|
|
—
|
|
302
|
|
|
Interest income
|
|
9
|
|
3
|
|
7
|
|
1
|
|
—
|
|
20
|
|
|
Segment EBIT
|
|
996
|
|
348
|
|
243
|
|
285
|
|
(49
|
)
|
1,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 25, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
|
$
|
7,021
|
|
$
|
2,105
|
|
$
|
1,810
|
|
$
|
2,191
|
|
$
|
—
|
|
$
|
13,127
|
|
|
Intersegment sales
|
|
1,225
|
|
866
|
|
768
|
|
19
|
|
(2,878
|
)
|
—
|
|
|
Total sales
|
|
8,246
|
|
2,971
|
|
2,578
|
|
2,210
|
|
(2,878
|
)
|
13,127
|
|
|
Depreciation and amortization(2)
|
|
135
|
|
55
|
|
32
|
|
17
|
|
—
|
|
239
|
|
|
Research, development and engineering expenses
|
|
285
|
|
126
|
|
37
|
|
2
|
|
—
|
|
450
|
|
|
Equity, royalty and interest income from investees
|
|
126
|
|
24
|
|
37
|
|
128
|
|
—
|
|
315
|
|
|
Interest income
|
|
14
|
|
3
|
|
6
|
|
2
|
|
—
|
|
25
|
|
|
Segment EBIT
|
|
1,016
|
|
338
|
|
286
|
|
299
|
|
8
|
|
1,947
|
|
|
(1)
|
Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended September 30, 2012 and September 25, 2011. The nine months ended September 30, 2012, include a $6 million gain ($4 million after-tax) related to adjustments from our 2011 divestitures. The nine months ended September 25, 2011, include a $68 million gain ($37 million after-tax) related to the sale of certain assets and liabilities of our exhaust business from the Components segment. The gains have been excluded from segment results as they were not considered in our evaluation of operating results for the corresponding periods. There were no other significant unallocated corporate expenses.
|
|
(2)
|
Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as “Interest expense.”
|
|
|
|
| Reconciliation of segment information |
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
|
September 30,
|
|
September 25,
|
|
September 30,
|
|
September 25,
|
|
|
In millions
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Segment EBIT
|
|
$
|
496
|
|
$
|
640
|
|
$
|
1,823
|
|
$
|
1,947
|
|
|
Less: Interest expense
|
|
9
|
|
11
|
|
25
|
|
34
|
|
|
Income before income taxes
|
|
$
|
487
|
|
$
|
629
|
|
$
|
1,798
|
|
$
|
1,913
|
|
|
|
|