Meritor Acquisition and 2022 Financial Results
Table of Contents
OPERATING SEGMENT RESULTS
Our reportable operating segments consist of the Engine, Components, Distribution, Power Systems and New Power segments. This reporting structure is organized according to
the products and markets each segment serves. We use segment EBITDA as the primary basis for the Chief Operating Decision Maker to evaluate the performance of each of
our reportable operating segments. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance
on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending
upon many factors. Segment amounts exclude certain expenses not specifically identifiable to segments. See NOTE 24, "OPERATING SEGMENTS," to the Consolidated
Financial Statements for additional information and a reconciliation of our segment information to the corresponding amounts in ourConsolidated Statements of Net Income.
Following is a discussion of results for each of our operating segments.
For all prior year segment results comparisons to 2020 see the Results of Operations section of our 2021 Form 10-K
Engine Segment Results
Financial data for the Engine segment was as follows:
In millions
External sales
Intersegment sales
Total sales
Research, development and engineering expenses
Equity, royalty and interest income from investees
Interest income
Russian suspension costs (2)
Segment EBITDA
Segment EBITDA as a percentage of total sales
"NM" - not meaningful information
Favorable/(Unfavorable)
Years ended December 31,
2022 vs. 2021
2021 vs. 2020
2022
2021
2020
Amount
Percent
Amount
Percent
$
8,199
$
2,746
7,589 $
2,365
5,925
$
610
8% $ 1,664
28 %
2,097
381
16%
268
13%
10,945
9.954
8,022
991
10%
1,932
24%
506
399
290
(107)
(27)%
(109)
(38)%
166 (1)
340
312
(174)
(51)%
28
9%
14
8
9
6
75%
(1)
33 (3)
33
NM
-
(11)%
―%
1,541
1,411
1,235
130
9%
176
14%
Percentage Points
14.1
%
14.2
%
15.4
%
(0.1)
Percentage Points
(1.2)
(1) 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. In addition, on
February 7, 2022, we purchased Westport Fuel System Inc.'s stake in the Westport JV. See NOTE 2, "ACQUISITIONS," and NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial
Statements for additional information.
(2) See NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information.
(3) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income from investees line above.
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