SEC Filings


8-K
CUMMINS INC filed this Form 8-K on 02/06/2018
Entire Document
 
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

 
In millions
 
Engine
 
Distribution
 
Components (1)
 
Power Systems
 
Total Segment
 
Intersegment Eliminations (2)
 
Total
 
Three months ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,710

 
$
1,928

 
$
1,180

 
$
658

 
$
5,476

 
$

 
$
5,476

 
Intersegment sales
 
577

 
10

 
378

 
445

 
1,410

 
(1,410
)
 

 
Total sales
 
2,287

 
1,938

 
1,558

 
1,103

 
6,886

 
(1,410
)
 
5,476

 
Depreciation and amortization (3)
 
47

 
26

 
46

 
30

 
149

 

 
149

 
Research, development and engineering expenses
 
79

 
5

 
70

 
53

 
207

 

 
207

 
Equity, royalty and interest income from investees (4)
 
33

 
9

 

 
14

 
56

 

 
56

 
Interest income
 
2

 
2

 
2

 
1

 
7

 

 
7

 
EBIT
 
224

 
97

 
168

 
95

 
584

 
36

 
620

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT as a percentage of total sales
 
9.8
%
 
5.0
%
 
10.8
%
 
8.6
%
 
8.5
%
 
 
 
11.3
%
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,424

 
$
1,664

 
$
860

 
$
555

 
$
4,503

 
$

 
$
4,503

 
Intersegment sales
 
543

 
6

 
317

 
377

 
1,243

 
(1,243
)
 

 
Total sales
 
1,967

 
1,670

 
1,177

 
932

 
5,746

 
(1,243
)
 
4,503

 
Depreciation and amortization (3)
 
41

 
31

 
38

 
28

 
138

 

 
138

 
Research, development and engineering expenses
 
60

 
3

 
47

 
48

 
158

 

 
158

 
Equity, royalty and interest income from investees
 
28

 
14

 
12

 
13

 
67

 

 
67

 
Interest income
 
2

 
1

 
1

 
1

 
5

 

 
5

 
EBIT
 
194

 
122

(5) 
140

 
68

(6) 
524

 
2

 
526

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT as a percentage of total sales
 
9.9
%
 
7.3
%
 
11.9
%
 
7.3
%
 
9.1
%
 
 
 
11.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
The 2017 disclosures include Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017.
(2
)
Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended December 31, 2017 and 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."
(4
)
U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million, $4 million and $12 million for the Engine, Distribution and Components segments, respectively.
(5
)
Distribution segment EBIT included a gain of $15 million on the fair value adjustment resulting from the acquisition of the controlling interest in a North American distributor in the fourth quarter of 2016.
(6
)
In the fourth quarter of 2016, we sold our remaining 49 percent interest in Cummins Olayan Energy for $61 million and recognized a gain of $17 million.

7