SEC Filings


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


CUMMINS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
 
 
Years ended December 31,
In millions, except per share amounts
 
2018
 
2017
 
2016
NET SALES (a) (Note 2)
 
$
23,771

 
$
20,428

 
$
17,509

Cost of sales
 
18,034

 
15,328

 
13,051

GROSS MARGIN
 
5,737

 
5,100

 
4,458

OPERATING EXPENSES AND INCOME
 
 
 
 
 
 
Selling, general and administrative expenses
 
2,437

 
2,429

 
2,099

Research, development and engineering expenses
 
902

 
754

 
637

Equity, royalty and interest income from investees (Note 3)
 
394

 
357

 
301

Loss contingency (Note 9)
 

 
5

 
138

Other operating income (expense), net
 
(6
)
 
65

 
(5
)
OPERATING INCOME
 
2,786

 
2,334

 
1,880

Interest income
 
35

 
18

 
23

Interest expense (Note 10)
 
114

 
81

 
69

Other income, net
 
46

 
94

 
96

INCOME BEFORE INCOME TAXES
 
2,753

 
2,365

 
1,930

Income tax expense (Note 4)
 
566

 
1,371

 
474

CONSOLIDATED NET INCOME
 
2,187

 
994

 
1,456

Less: Net income (loss) attributable to noncontrolling interests
 
46

 
(5
)
 
62

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
2,141

 
$
999

 
$
1,394

 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. (Note 18)
 
 
 
 
 
 
Basic
 
$
13.20

 
$
5.99

 
$
8.25

Diluted
 
$
13.15

 
$
5.97

 
$
8.23

____________________________________
(a) 
Includes sales to nonconsolidated equity investees of $1,267 million, $1,174 million and $1,028 million for the years ended December 31, 2018, 2017 and 2016, respectively.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
Years ended December 31,
In millions
 
2018
 
2017
 
2016
CONSOLIDATED NET INCOME
 
$
2,187

 
$
994

 
$
1,456

Other comprehensive income (loss), net of tax (Note 15)
 
 
 
 
 
 
Change in pension and other postretirement defined benefit plans
 
18

 
(4
)
 
(31
)
Foreign currency translation adjustments
 
(356
)
 
335

 
(448
)
Unrealized gain on marketable securities
 

 
2

 
1

Unrealized gain (loss) on derivatives
 
5

 
5

 
(12
)
Total other comprehensive (loss) income, net of tax
 
(333
)
 
338

 
(490
)
COMPREHENSIVE INCOME
 
1,854

 
1,332

 
966

Less: Comprehensive income attributable to noncontrolling interests
 
17

 
15

 
45

COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
1,837

 
$
1,317

 
$
921

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

65