SEC Filings


8-K
CUMMINS INC filed this Form 8-K on 02/06/2018
Entire Document
 
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)


Reconciliation of Non GAAP measures - 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
 
Years ended
In millions
 
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
Net (loss) income attributable to Cummins Inc.
 
$
(274
)
 
$
378

 
$
999

 
$
1,394

 
 
 
 
 
 
 
 
 
Net (loss) income attributable to Cummins Inc. as a percentage of net sales
 
(5.0
)%
 
8.4
%
 
4.9
%
 
8.0
%
 
 
 
 
 
 
 
 
 
Add
 
 
 
 
 
 
 
 
Net (loss) income attributable to noncontrolling interests
 
(35
)
 
18

 
(5
)
 
62

Consolidated net (loss) income
 
(309
)
 
396

 
994

 
1,456

 
 
 
 
 
 
 
 
 
Add
 
 
 
 
 
 
 
 
Interest expense
 
24

 
18

 
81

 
69

Income tax expense
 
905

 
112

 
1,371

 
474

EBIT
 
620

 
526

 
2,446

 
1,999

 
 
 
 
 
 
 
 
 
EBIT as a percentage of net sales
 
11.3
 %
 
11.7
%
 
12.0
%
 
11.4
%
 
 
 
 
 
 
 
 
 
Impact of tax legislation on equity investees
 
39

 

 
39

 

 
 
 
 
 
 
 
 
 
EBIT, excluding impact of tax legislation on equity investees
 
$
659

 
$
526

 
$
2,485

 
$
1,999

 
 
 
 
 
 
 
 
 
EBIT, excluding impact of tax legislation on equity investees, as a percentage of net sales
 
12.0
 %
 
11.7
%
 
12.2
%
 
11.4
%


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