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OPERATING SEGMENTS (Tables) | 3 Months Ended
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Mar. 29, 2020
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 |  | Engine |  | Distribution |  | Components |  | Power Systems |  | New Power |  | Total Segments |  | Intersegment Eliminations (1) |  | Total
Three months ended March 29, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
External sales |  | $ | 1,579 |  |  | $ | 1,807 |  |  | $ | 1,115 |  |  | $ | 500 |  |  | $ | 10 |  |  | $ | 5,011 |  |  | $ | — |  |  | $ | 5,011 |
Intersegment sales |  | 579 |  |  | 7 |  |  | 387 |  |  | 384 |  |  | — |  |  | 1,357 |  |  | (1,357) |  |  | — |
Total sales |  | 2,158 |  |  | 1,814 |  |  | 1,502 |  |  | 884 |  |  | 10 |  |  | 6,368 |  |  | (1,357) |  |  | 5,011 |
Research, development and engineering expenses |  | 80 |  |  | 7 |  |  | 68 |  |  | 54 |  |  | 29 |  |  | 238 |  |  | — |  |  | 238 |
Equity, royalty and interest income from investees |  | 78 |  |  | 21 |  |  | 21 |  |  | 9 |  |  | — |  |  | 129 |  |  | — |  |  | 129 |
Interest income (2) |  | 4 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | 7 |  |  | — |  |  | 7 |
Segment EBITDA |  | 365 |  |  | 158 |  |  | 279 |  |  | 77 |  |  | (43) |  |  | 836 |  |  | 10 |  |  | 846 |
Depreciation and amortization (3) |  | 53 |  |  | 31 |  |  | 48 |  |  | 32 |  |  | 4 |  |  | 168 |  |  | — |  |  | 168 |
Three months ended March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
External sales |  | $ | 1,984 |  |  | $ | 1,993 |  |  | $ | 1,401 |  |  | $ | 623 |  |  | $ | 3 |  |  | $ | 6,004 |  |  | $ | — |  |  | $ | 6,004 |
Intersegment sales |  | 669 |  |  | 8 |  |  | 460 |  |  | 454 |  |  | — |  |  | 1,591 |  |  | (1,591) |  |  | — |
Total sales |  | 2,653 |  |  | 2,001 |  |  | 1,861 |  |  | 1,077 |  |  | 3 |  |  | 7,595 |  |  | (1,591) |  |  | 6,004 |
Research, development and engineering expenses |  | 78 |  |  | 7 |  |  | 75 |  |  | 56 |  |  | 21 |  |  | 237 |  |  | — |  |  | 237 |
Equity, royalty and interest income from investees |  | 56 |  |  | 11 |  |  | 10 |  |  | 15 |  |  | — |  |  | 92 |  |  | — |  |  | 92 |
Interest income (2) |  | 4 |  |  | 4 |  |  | 2 |  |  | 2 |  |  | — |  |  | 12 |  |  | — |  |  | 12 |
Segment EBITDA |  | 438 |  |  | 171 |  |  | 325 |  |  | 138 |  |  | (29) |  |  | 1,043 |  |  | (10) |  |  | 1,033 |
Depreciation and amortization (3) |  | 50 |  |  | 29 |  |  | 46 |  |  | 29 |  |  | 2 |  |  | 156 |  |  | — |  |  | 156 |
(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 March 29, 2020 and March 31, 2019. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(2) "Interest income" is managed at the corporate level and allocated to each operating segment. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(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 less than $1 million and $1 million for the three months ended March 29, 2020 and March 31, 2019, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses." |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |  |  |  |  |  |
In millions |  | March 29, 2020 |  | March 31, 2019 |  |  |  |
Total EBITDA |  | $ | 846 |  |  | $ | 1,033 |  |  |  |  |
Less: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 168 |  |  | 156 |  |  |  |  |
Interest expense |  | 23 |  |  | 32 |  |  |  |  |
Income before income taxes |  | $ | 655 |  |  | $ | 845 |  |  |  |  |

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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