Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.20.2
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 27, 2020
Sep. 29, 2019
Sep. 27, 2020
Sep. 29, 2019
Segment reporting        
NET SALES (a) (Note 3) [1] $ 5,118 $ 5,768 $ 13,981 $ 17,993
Research, development and engineering expenses 224 242 651 730
Equity, royalty and interest income (loss) from investees 98 68 342 256
Interest income 4 14 15 38
EBITDA 876 958 2,271 3,049
Depreciation and amortization 165 [2] 177 [2] 497 [3] 491 [3]
Less: Interest expense 25 26 71 87
INCOME BEFORE INCOME TAXES 686 755 1,703 2,471
Amortization of Debt Discount (Premium)     2 2
Engine        
Segment reporting        
NET SALES (a) (Note 3) 2,112 2,416 5,693 7,772
Research, development and engineering expenses 72 79 217 245
Equity, royalty and interest income (loss) from investees 74 34 236 152
Interest income 1 5 6 13
EBITDA 382 341 897 1,195
Depreciation and amortization 51 [2] 50 [2] 155 [3] 151 [3]
Distribution        
Segment reporting        
NET SALES (a) (Note 3) 1,721 2,004 5,140 6,033
Research, development and engineering expenses 9 7 20 21
Equity, royalty and interest income (loss) from investees 13 12 45 35
Interest income 1 4 3 12
EBITDA 182 186 500 529
Depreciation and amortization 30 [2] 29 [2] 91 [3] 86 [3]
Components        
Segment reporting        
NET SALES (a) (Note 3) 1,541 1,650 4,193 5,357
Research, development and engineering expenses 64 73 187 223
Equity, royalty and interest income (loss) from investees 13 9 46 30
Interest income 1 2 3 6
EBITDA 261 286 681 908
Depreciation and amortization 47 [2] 67 [2] 142 [3] 160 [3]
Power Systems        
Segment reporting        
NET SALES (a) (Note 3) 981 1,126 2,642 3,406
Research, development and engineering expenses 53 58 148 171
Equity, royalty and interest income (loss) from investees 0 13 18 39
Interest income 1 3 3 7
EBITDA 101 158 269 469
Depreciation and amortization 32 [2] 29 [2] 96 [3] 88 [3]
New Power        
Segment reporting        
NET SALES (a) (Note 3) 18 9 38 20
Research, development and engineering expenses 26 25 79 70
Equity, royalty and interest income (loss) from investees (2) 0 (3) 0
Interest income 0 0 0 0
EBITDA (40) (36) (121) (98)
Depreciation and amortization 5 [2] 2 [2] 13 [3] 6 [3]
Total Segments        
Segment reporting        
NET SALES (a) (Note 3) 6,373 7,205 17,706 22,588
Research, development and engineering expenses 224 242 651 730
Equity, royalty and interest income (loss) from investees 98 68 342 256
Interest income 4 14 15 38
EBITDA 886 935 2,226 3,003
Depreciation and amortization 165 [2] 177 [2] 497 [3] 491 [3]
Intersegment Eliminations        
Segment reporting        
NET SALES (a) (Note 3) (1,255) [4] (1,437) [4] (3,725) [5] (4,595) [5]
Non-segment items        
Segment reporting        
EBITDA (10) [4] 23 [4] 45 [5] 46 [5]
External Sales        
Segment reporting        
NET SALES (a) (Note 3) 5,118 5,768 13,981 17,993
External Sales | Engine        
Segment reporting        
NET SALES (a) (Note 3) 1,617 1,822 4,133 5,879
External Sales | Distribution        
Segment reporting        
NET SALES (a) (Note 3) 1,715 2,001 5,123 6,009
External Sales | Components        
Segment reporting        
NET SALES (a) (Note 3) 1,201 1,253 3,192 4,055
External Sales | Power Systems        
Segment reporting        
NET SALES (a) (Note 3) 567 683 1,495 2,030
External Sales | New Power        
Segment reporting        
NET SALES (a) (Note 3) 18 9 38 20
External Sales | Total Segments        
Segment reporting        
NET SALES (a) (Note 3) 5,118 5,768 13,981 17,993
Intersegment sales | Engine        
Segment reporting        
NET SALES (a) (Note 3) 495 594 1,560 1,893
Intersegment sales | Distribution        
Segment reporting        
NET SALES (a) (Note 3) 6 3 17 24
Intersegment sales | Components        
Segment reporting        
NET SALES (a) (Note 3) 340 397 1,001 1,302
Intersegment sales | Power Systems        
Segment reporting        
NET SALES (a) (Note 3) 414 443 1,147 1,376
Intersegment sales | New Power        
Segment reporting        
NET SALES (a) (Note 3) 0 0 0 0
Intersegment sales | Total Segments        
Segment reporting        
NET SALES (a) (Note 3) 1,255 1,437 3,725 4,595
Intersegment sales | Intersegment Eliminations        
Segment reporting        
NET SALES (a) (Note 3) $ (1,255) [4] $ (1,437) [4] $ (3,725) [5] $ (4,595) [5]
[1] (a) Includes sales to nonconsolidated equity investees of $311 million and $906 million for the three and nine months ended September 27, 2020, compared with $280 million and $882 million for the comparable periods in 2019.
[2] (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] (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 $2 million and $2 million for the nine months ended September 27, 2020 and September 29, 2019, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
[4] (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 September 27, 2020 and September 29, 2019.
[5] (1) 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 27, 2020 and September 29, 2019.