Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v3.24.1.u1
OPERATING SEGMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
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 Components Engine Distribution Power Systems Accelera Total Segments
Three months ended March 31, 2024    
External sales $ 2,842  $ 2,240  $ 2,529  $ 708  $ 84  $ 8,403 
Intersegment sales 490  688  6  681  9  1,874 
Total sales 3,332  2,928  2,535  1,389  93  10,277 
Research, development and engineering expenses 84  154  14  60  55  367 
Equity, royalty and interest income (loss) from investees 26  57  24  19  (3) 123 
Interest income 8  7  11  3  —  29 
Segment EBITDA 473 
(1)
 414  294  237  (101) 1,317 
Depreciation and amortization (2)
125  58  31  34  14  262 
Three months ended March 31, 2023      
External sales $ 3,043  $ 2,252  $ 2,399  $ 679  $ 80  $ 8,453 
Intersegment sales 514  734  7  664  5  1,924 
Total sales 3,557  2,986  2,406  1,343  85  10,377 
Research, development and engineering expenses 91  134  14  63  48  350 
Equity, royalty and interest income (loss) from investees 21  65  24  13  (4) 119 
Interest income 6  3  7  2  —  18 
Segment EBITDA 507 
(3)
 457  335  219  (94) 1,424 
Depreciation and amortization (2)
123  51  28  29  14  245 
(1) Included $21 million costs associated with the divestiture of Atmus for the three months ended March 31, 2024. See NOTE 14, "ATMUS DIVESTITURE," for additional information.
(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 $3 million and $1 million for the three months ended March 31, 2024 and 2023, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(3) Included $12 million of costs associated with the divestiture of Atmus for the three months ended March 31, 2023.
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
  March 31,
In millions 2024 2023
TOTAL SEGMENT EBITDA $ 1,317  $ 1,424 
Intersegment eliminations and other (1)
1,255 
(2)
 (63)
(3)
Less:
Interest expense 89  87 
Depreciation and amortization 262  245 
INCOME BEFORE INCOME TAXES $ 2,221  $ 1,029 
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses.
(2) Included $1.3 billion of gain related the divestiture of Atmus and $14 million of costs associated with the divestiture of Atmus (included in corporate expenses) for the three months ended March 31, 2024. See NOTE 14, "ATMUS DIVESTITURE," for additional information.
(3) Included $6 million of costs associated with the divestiture of Atmus for the three months ended March 31, 2023.