OPERATING SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2023

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, 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		(1)	457			335		219		(94)		1,424
Depreciation and amortization(2)	123			51			28		29		14		245


Three months ended March 31, 2022
External sales	$	1,517		$	2,049		$	2,111	$	683	$	25	$	6,385
Intersegment sales	471			704			6		477		6		1,664
Total sales	1,988			2,753			2,117		1,160		31		8,049



Research, development and engineering expenses	76			109			13		64		36		298
Equity, royalty and interest income (loss) from investees	28			42		(3)	16		11		(1)		96

Interest income	1			4			2		1		—		8
Russian suspension costs(4)	6			32		(5)	100		20		—		158
Segment EBITDA	320			390			110		90		(65)		845
Depreciation and amortization(2)	43			51			28		31		7		160


(1) Includes $12 million of costs associated with the planned separation of our filtration business.
(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 $1 million and $1 million for the three months ended March 31, 2023 and March 31, 2022, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(3) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. See NOTE 15, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information.
(4) See NOTE 15, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information.
(5) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above.

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	2023		2022
TOTAL SEGMENT EBITDA	$	1,424	$	845

Intersegment eliminations and other(1)	(63)		(90)

Less:
Interest expense	87		17
Depreciation and amortization	245		160
INCOME BEFORE INCOME TAXES	$	1,029	$	578





(1)Intersegment eliminations and other included $6 million and $17 million of costs associated with the planned separation of our filtration business for the three months ended March 31, 2023 and 2022.