SEC Filings


10-K
CUMMINS INC filed this Form 10-K on 02/11/2019
Entire Document
 

A reconciliation of our segment information to the corresponding amounts in the Consolidated Statements of Income is shown in the table below:
 
 
Years ended December 31,
In millions
 
2018
 
2017
 
2016
Total EBITDA
 
$
3,476

 
$
3,026

 
$
2,526

Less:
 
 
 
 
 
 
Depreciation and amortization
 
609

 
$
580

 
527

Interest expense
 
114

 
$
81

 
$
69

Income before income taxes
 
$
2,753

 
$
2,365

 
$
1,930



A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below:
 
 
December 31,
In millions
 
2018
 
2017
 
2016
Net assets for operating segments (1)
 
$
9,220

 
$
8,574

 
$
7,336

Cash, cash equivalents and marketable securities
 
1,525

 
1,567

 
1,380

Brammo Inc. assets
 

 
72

(2) 

Liabilities deducted in arriving at net assets
 
7,836

 
7,398

 
6,157

Pension and other postretirement benefit adjustments excluded from net assets
 
68

 
156

 
(284
)
Deferred tax assets not allocated to segments
 
410

 
306

 
420

Deferred debt costs not allocated to segments
 
3

 
2

 
2

Total assets
 
$
19,062

 
$
18,075

 
$
15,011

____________________________________________________
(1) 
In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level.  
(2) 
Assets associated with the Brammo Inc. acquisition were presented as a reconciling item as Brammo Inc. had not yet been assigned to a reportable segment at December 31, 2017. See Note 19, "ACQUISITIONS," for additional information.
See Note 2, "DISAGGREGATION OF REVENUE," for segment net sales by geographic area.
 
Long-lived assets include property, plant and equipment, net of depreciation, investments and advances to equity investees and other assets, excluding deferred tax assets, refundable taxes and deferred debt expenses. Long-lived segment assets by geographic area were as follows:
 
 
December 31,
In millions
 
2018
 
2017
 
2016
United States
 
$
3,174

 
$
3,157

 
$
3,092

China
 
823

 
795

 
652

India
 
577

 
563

 
475

United Kingdom
 
337

 
339

 
254

Netherlands
 
234

 
221

 
197

Mexico
 
171

 
136

 
131

Canada
 
114

 
116

 
132

Brazil
 
104

 
149

 
149

Other international countries
 
329

 
293

 
236

Total long-lived assets
 
$
5,863

 
$
5,769

 
$
5,318


Our largest customer is PACCAR Inc. Worldwide sales to this customer were $3,643 million, $2,893 million and $2,359 million for the years ended December 31, 2018, 2017 and 2016, representing 15 percent, 14 percent and 13 percent, respectively, of our consolidated net sales. No other customer accounted for more than 10 percent of consolidated net sales.



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