SEC Filings


10-Q
CUMMINS INC filed this Form 10-Q on 10/31/2017
Entire Document
 

PART I.  FINANCIAL INFORMATION 

ITEM 1.  Condensed Consolidated Financial Statements 
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
 
Three months ended
 
Nine months ended
In millions, except per share amounts 
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
NET SALES (a)
 
$
5,285

 
$
4,187

 
$
14,952

 
$
13,006

Cost of sales
 
3,946

 
3,108

 
11,236

 
9,674

GROSS MARGIN
 
1,339

 
1,079

 
3,716

 
3,332

OPERATING EXPENSES AND INCOME
 
 

 
 

 
 

 
 

Selling, general and administrative expenses
 
624

 
513

 
1,757

 
1,527

Research, development and engineering expenses
 
213

 
157

 
545

 
478

Equity, royalty and interest income from investees (Note 4)
 
95

 
74

 
301

 
234

Loss contingency (Note 9)
 

 
99

 

 
138

Other operating income (expense), net
 
32

 

 
55

 
(2
)
OPERATING INCOME
 
629

 
384

 
1,770

 
1,421

Interest income
 
4

 
6

 
11

 
18

Interest expense (Note 7)
 
18

 
16

 
57

 
51

Other income (expense), net
 
7

 
8

 
45

 
34

INCOME BEFORE INCOME TAXES
 
622

 
382

 
1,769

 
1,422

Income tax expense
 
165

 
82

 
466

 
362

CONSOLIDATED NET INCOME
 
457

 
300

 
1,303

 
1,060

Less: Net income attributable to noncontrolling interests
 
4

 
11

 
30

 
44

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
453

 
$
289

 
$
1,273

 
$
1,016

 
 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 

 
 

 
 

 
 

Basic
 
$
2.72

 
$
1.72

 
$
7.62

 
$
5.99

Diluted
 
$
2.71

 
$
1.72

 
$
7.60

 
$
5.99

 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
 
 

 
 

 
 

 
 

Basic
 
166.3

 
167.8

 
167.0

 
169.5

Dilutive effect of stock compensation awards
 
0.7

 
0.4

 
0.6

 
0.2

Diluted
 
167.0

 
168.2

 
167.6

 
169.7

 
 
 
 
 
 
 
 
 
CASH DIVIDENDS DECLARED PER COMMON SHARE
 
$
1.08

 
$
1.025

 
$
3.13

 
$
2.975

____________________________________
(a) Includes sales to nonconsolidated equity investees of $285 million and $835 million and $275 million and $793 million for the three and nine months ended October 1, 2017 and October 2, 2016, respectively.
 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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