Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.7.0.1
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 02, 2017
Apr. 03, 2016
Operating results:    
Total sales [1] $ 4,589 $ 4,291 [2]
Depreciation and amortization [3] 139 127 [2]
Research, development and engineering expenses 158 166 [2]
Equity, royalty and interest income from investees 108 72 [2]
Interest income 2 6 [2]
Segment EBIT 566 484 [2]
Less: Interest expense 18 19
INCOME BEFORE INCOME TAXES 548 465
Amortization of Debt Discount (Premium) 0 1
Engine    
Operating results:    
Total sales 2,023 1,976 [2]
Depreciation and amortization [3] 44 39 [2]
Research, development and engineering expenses 54 57 [2]
Equity, royalty and interest income from investees 72 36 [2]
Interest income 1 2 [2]
Segment EBIT 229 197 [2]
Distribution    
Operating results:    
Total sales 1,645 1,463 [2]
Depreciation and amortization [3] 30 28 [2]
Research, development and engineering expenses 4 4 [2]
Equity, royalty and interest income from investees 11 18 [2]
Interest income 1 1 [2]
Segment EBIT 100 87 [2]
Components    
Operating results:    
Total sales 1,344 1,237 [2]
Depreciation and amortization [3] 37 31 [2]
Research, development and engineering expenses 50 56 [2]
Equity, royalty and interest income from investees 13 8 [2]
Interest income 0 1 [2]
Segment EBIT 179 163 [2]
Power Systems    
Operating results:    
Total sales 882 808 [2]
Depreciation and amortization [3] 28 29 [2]
Research, development and engineering expenses 50 49 [2]
Equity, royalty and interest income from investees 12 10 [2]
Interest income 0 2 [2]
Segment EBIT 57 46 [2]
Non-segment items    
Operating results:    
Total sales [4] (1,305) (1,193) [2]
Segment EBIT [4] 1 (9) [2]
External Sales    
Operating results:    
Total sales 4,589 4,291 [2]
External Sales | Engine    
Operating results:    
Total sales 1,457 1,489 [2]
External Sales | Distribution    
Operating results:    
Total sales 1,637 1,458 [2]
External Sales | Components    
Operating results:    
Total sales 980 897 [2]
External Sales | Power Systems    
Operating results:    
Total sales 515 447 [2]
Intersegment sales | Engine    
Operating results:    
Total sales 566 487 [2]
Intersegment sales | Distribution    
Operating results:    
Total sales 8 5 [2]
Intersegment sales | Components    
Operating results:    
Total sales 364 340 [2]
Intersegment sales | Power Systems    
Operating results:    
Total sales 367 361 [2]
Intersegment sales | Non-segment items    
Operating results:    
Total sales [4] $ (1,305) $ (1,193) [2]
[1] Includes sales to nonconsolidated equity investees of $267 million and $242 million for the three months ended April 2, 2017 and April 3, 2016, respectively.
[2] In the second quarter of 2016, we realigned our reportable operating segments. The three months ended April 3, 2016, were revised retrospectively to conform with these changes.
[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 Income as "Interest expense." The amortization of debt discount and deferred costs were less than $1 million and $1 million for the three months ended April 2, 2017 and April 3, 2016, respectively.
[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 April 2, 2017 and April 3, 2016.