SEC Filings


8-K
CUMMINS INC filed this Form 8-K on 10/31/2017
Entire Document
 
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
Earnings before interest, income taxes and noncontrolling interests
We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries. We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs. This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBIT for each of the applicable periods:
 
 
Three months ended
 
Nine months ended
In millions
 
October 1, 2017
 
October 2, 2016
 
October 1, 2017
 
October 2, 2016
Net income attributable to Cummins Inc.
 
$
453

 
$
289

 
$
1,273

 
$
1,016

 
 
 
 
 
 
 
 
 
Net income attributable to Cummins Inc. as a percentage of net sales
 
8.6
%
 
6.9
%
 
8.5
%
 
7.8
%
 
 
 
 
 
 
 
 
 
Add
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
4

 
11

 
30

 
44

Consolidated net income
 
457

 
300

 
1,303

 
1,060

 
 
 
 
 
 
 
 
 
Add
 
 
 
 
 
 
 
 
Interest expense
 
18

 
16

 
57

 
51

Income tax expense
 
165

 
82

 
466

 
362

Earnings before interest expense and income taxes
 
$
640

 
$
398

 
$
1,826

 
$
1,473

 
 
 
 
 
 
 
 
 
EBIT as a percentage of net sales
 
12.1
%
 
9.5
%
 
12.2
%
 
11.3
%
 
 
 
 
 
 
 
 
 

11