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OPERATING SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Financial information regarding reportable operating segments

Summarized financial information regarding our reportable operating segments for the three and nine months ended September 30, 2024 and 2023 is shown in the table below:

In millions						Components						Engine						Distribution												Power Systems						Accelera						Total Segments
Three months ended September 30, 2024
External sales						$	2,287					$	2,215					$	2,942											$	912					$	100					$	8,456
Intersegment sales						437						698						10												775						10						1,930
Total sales						2,724						2,913						2,952												1,687						110						10,386
Research, development and engineering expenses						85						147						13												57						57						359
Equity, royalty and interest income (loss) from investees						12						53						25												20						(11)						99
Interest income						4						2						7												1						—						14
Segment EBITDA						351						427						370												328						(115)						1,361
Depreciation and amortization (1)						121						62						31												33						16						263
Three months ended September 30, 2023
External sales						$	2,780					$	2,236					$	2,519											$	798					$	98					$	8,431
Intersegment sales						456						695						16												646						5						1,818
Total sales						3,236						2,931						2,535												1,444						103						10,249
Research, development and engineering expenses						93						159						14												60						50						376
Equity, royalty and interest income (loss) from investees						26						62						22												11						(3)						118
Interest income						8						4						9												3						—						24
Segment EBITDA						441			(2)			395						306												234						(114)						1,262
Depreciation and amortization (1)						120						59						28												30						18						255
Nine months ended September 30, 2024
External sales						$	7,647					$	6,923					$	8,292											$	2,508					$	285					$	25,655
Intersegment sales						1,391						2,069						24												2,157						29						5,670
Total sales						9,038						8,992						8,316												4,665						314						31,325
Research, development and engineering expenses						250						468						41												180						166						1,105
Equity, royalty and interest income (loss) from investees						51						158						73												65						(22)						325
Interest income						21						16						29												7						—						73
Segment EBITDA						1,230			(2)			1,286						978												866						(333)						4,027
Depreciation and amortization (1)						367						181						92												99						45						784
Nine months ended September 30, 2023
External sales						$	8,747					$	6,751					$	7,494											$	2,271					$	259					$	25,522
Intersegment sales						1,471						2,154						42												1,973						14						5,654
Total sales						10,218						8,905						7,536												4,244						273						31,176
Research, development and engineering expenses						287						441						43												189						150						1,110
Equity, royalty and interest income (loss) from investees						71						198						70												42						(11)						370
Interest income						21						14						24												7						1						67
Segment EBITDA						1,434			(2)			1,277						940												654						(322)						3,983
Depreciation and amortization (1)						368						166						84												91						47						756
(1) 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 $10 million and $4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(2) Included $21 million of costs associated with the divestiture of Atmus for the nine months ended September 30, 2024. Included $20 million and $50 million of costs associated with the divestiture of Atmus for the three and nine months ended September 30, 2023. See NOTE 14, "ATMUS INITIAL PUBLIC OFFERING (IPO) AND DIVESTITURE," for additional information.

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												Nine months ended
						September 30,												September 30,
In millions						2024						2023						2024						2023
TOTAL SEGMENT EBITDA						$	1,361					$	1,262					$	4,027					$	3,983
Intersegment eliminations and other (1)						28						(32)			(2)			1,279			(3)			(88)			(2)
Less:
Interest expense						83						97						281						283
Depreciation and amortization						263						255						784						756
INCOME BEFORE INCOME TAXES						$	1,043					$	878					$	4,241					$	2,856
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses.
(2) Included $6 million and $17 million of costs associated with the divestiture of Atmus for the three and nine months ended September 30, 2023.
(3) Included a $1.3 billion gain related the divestiture of Atmus and $14 million of costs associated with the divestiture of Atmus (included in corporate expenses) for the nine months ended September 30, 2024. See NOTE 14, "ATMUS INITIAL PUBLIC OFFERING (IPO) AND DIVESTITURE," for additional information.

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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

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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

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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
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