SEC Filings


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

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

Consolidated net income
 
$
1,303

 
$
1,060

Adjustments to reconcile consolidated net income to net cash provided by operating activities
 
 

 
 

Depreciation and amortization
 
433

 
391

Deferred income taxes
 
26

 
60

Equity in income of investees, net of dividends
 
(166
)
 
(94
)
Pension contributions in excess of expense (Note 3)
 
(63
)
 
(92
)
Other post retirement benefits payments in excess of expense (Note 3)
 
(4
)
 
(16
)
Stock-based compensation expense
 
34

 
28

Restructuring payments
 

 
(53
)
Loss contingency (Note 9)
 

 
138

Translation and hedging activities
 
61

 
(39
)
Changes in current assets and liabilities, net of acquisitions
 
 
 
 

Accounts and notes receivable
 
(722
)
 
(112
)
Inventories
 
(401
)
 
(150
)
Other current assets
 
(28
)
 
138

Accounts payable
 
567

 
101

Accrued expenses
 
369

 
(279
)
Changes in other liabilities and deferred revenue
 
177

 
188

Other, net
 
(115
)
 
45

Net cash provided by operating activities
 
1,471

 
1,314

 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 

 
 

Capital expenditures
 
(282
)
 
(312
)
Investments in internal use software
 
(59
)
 
(42
)
Proceeds from disposals of property, plant and equipment
 
104

 
11

Investments in and advances to equity investees
 
(71
)
 
(29
)
Acquisitions of businesses, net of cash acquired (Note 11)
 
(600
)
 
(1
)
Investments in marketable securities—acquisitions (Note 5)
 
(106
)
 
(447
)
Investments in marketable securities—liquidations (Note 5)
 
218

 
291

Cash flows from derivatives not designated as hedges
 
9

 
(64
)
Other, net
 
1

 
3

Net cash used in investing activities
 
(786
)
 
(590
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 

 
 

Proceeds from borrowings
 
4

 
111

Net borrowings of commercial paper
 
302

 
273

Payments on borrowings and capital lease obligations
 
(38
)
 
(156
)
Net borrowings under short-term credit agreements
 
19

 
25

Distributions to noncontrolling interests
 
(29
)
 
(42
)
Dividend payments on common stock
 
(522
)
 
(505
)
Repurchases of common stock
 
(391
)
 
(745
)
Other, net
 
55

 
(6
)
Net cash used in financing activities
 
(600
)
 
(1,045
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
85

 
(139
)
Net increase (decrease) in cash and cash equivalents
 
170

 
(460
)
Cash and cash equivalents at beginning of year
 
1,120

 
1,711

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
1,290

 
$
1,251


 The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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