SEC Filings


8-K
CUMMINS INC filed this Form 8-K on 10/31/2017
Entire Document
 
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In millions
 
Engine
 
Distribution
 
Components(1)
 
Power Systems
 
Total Segment
 
Intersegment Eliminations (2)
 
Total
 
Nine months ended October 1, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
4,951

 
$
5,101

 
$
3,183

 
$
1,717

 
$
14,952

 
$

 
$
14,952

 
Intersegment sales
 
1,715

 
19

 
1,148

 
1,238

 
4,120

 
(4,120
)
 

 
Total sales
 
6,666

 
5,120

 
4,331

 
2,955

 
19,072

 
(4,120
)
 
14,952

 
Depreciation and amortization (3)
 
137

 
90

 
117

 
87

 
431

 

 
431

 
Research, development and engineering expenses
 
200

 
14

 
170

 
161

 
545

 

 
545

 
Equity, royalty and interest income from investees
 
186

 
35

 
40

 
40

 
301

 

 
301

 
Interest income
 
4

 
4

 
1

 
2

 
11

 

 
11

 
EBIT
 
735

 
287

 
586

 
199

 
1,807

 
19

 
1,826

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT as a percentage of total sales
 
11.0
%
 
5.6
%
 
13.5
%
 
6.7
%
 
9.5
%
 
 
 
12.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended October 2, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
4,350

 
$
4,493

 
$
2,654

 
$
1,509

 
$
13,006

 
$

 
$
13,006

 
Intersegment sales
 
1,487

 
18

 
1,005

 
1,076

 
3,586

 
(3,586
)
 

 
Total sales
 
5,837

 
4,511

 
3,659

 
2,585

 
16,592

 
(3,586
)
 
13,006

 
Depreciation and amortization (3)
 
122

 
85

 
95

 
87

 
389

 

 
389

 
Research, development and engineering expenses
 
166

 
10

 
161

 
141

 
478

 

 
478

 
Equity, royalty and interest income from investees
 
120

 
56

 
29

 
29

 
234

 

 
234

 
Loss contingency
 
138

 

 

 

 
138

 

 
138

 
Interest income
 
8

 
3

  
3

 
4

 
18

 

 
18

 
EBIT
 
492

 
270

 
501

 
195

 
1,458

 
15

 
1,473

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT as a percentage of total sales
 
8.4
%
 
6.0
%
 
13.7
%
 
7.5
%
 
8.8
%
 
 
 
11.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
The 2017 disclosures include Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See "ACQUISITION," footnote for additional information.

(2
)
Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended October 1, 2017 and October 2, 2016.
(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 Income as "Interest expense." The amortization of debt discount and deferred costs was $2 million for both of the nine months ended October 1, 2017 and October 2, 2016.


A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:
 
 
 
Three months ended
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Total EBIT
 
$
640

 
$
398

 
$
1,826

 
$
1,473

Less: Interest expense
 
18

 
16

 
57

 
51

Income before income taxes
 
$
622

 
$
382

 
$
1,769

 
$
1,422



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