SEC Filings


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

CUMMINS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Years ended December 31,
In millions
 
2018
 
2017
 
2016
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
2,187

 
$
994

 
$
1,456

Adjustments to reconcile consolidated net income to net cash provided by operating activities
 
 
 
 
 
 
Impact of tax legislation, net (Note 4)
 
15

 
820

 

Depreciation and amortization
 
611

 
583

 
530

Deferred income taxes (Note 4)
 
(97
)
 
(54
)
 
50

Equity in income of investees, net of dividends
 
(93
)
 
(123
)
 
(46
)
Pension contributions under (in excess of) expense, net (Note 11)
 
49

 
(161
)
 
(92
)
Other post retirement benefits payments in excess of expense, net (Note 11)
 
(19
)
 
(5
)
 
(25
)
Stock-based compensation expense (Note 16)
 
53

 
41

 
32

Loss contingency charges, net of payments (Note 9)
 
(62
)
 
5

 
122

Loss (gain) on corporate owned life insurance
 
26

 
(52
)
 
(22
)
Foreign currency remeasurement and transaction exposure
 
(46
)
 
71

 
(55
)
Changes in current assets and liabilities, net of acquisitions
 
 
 
 
 
 
Accounts and notes receivable
 
(363
)
 
(508
)
 
(265
)
Inventories
 
(695
)
 
(407
)
 
(4
)
Other current assets
 
(162
)
 
(12
)
 
14

Accounts payable
 
302

 
639

 
188

Accrued expenses
 
433

 
378

 
(195
)
Changes in other liabilities
 
75

 
241

 
200

Other, net
 
164

 
(173
)
 
51

Net cash provided by operating activities
 
2,378

 
2,277

 
1,939

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
Capital expenditures
 
(709
)
 
(506
)
 
(531
)
Investments in internal use software
 
(75
)
 
(81
)
 
(63
)
Proceeds from disposals of property, plant and equipment
 
20

 
110

 
14

Investments in and advances to equity investees
 
(37
)
 
(66
)
 
(41
)
Acquisitions of businesses, net of cash acquired (Note 19)
 
(70
)
 
(662
)
 
(94
)
Investments in marketable securities—acquisitions (Note 5)
 
(368
)
 
(194
)
 
(478
)
Investments in marketable securities—liquidations (Note 5)
 
331

 
266

 
306

Proceeds from sale of equity investees (Note 3)
 

 

 
60

Cash flows from derivatives not designated as hedges
 
(102
)
 
76

 
(102
)
Other, net
 
36

 
5

 
12

Net cash used in investing activities
 
(974
)
 
(1,052
)
 
(917
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
Proceeds from borrowings
 
36

 
6

 
111

Net borrowings of commercial paper (Note 10)
 
482

 
86

 
212

Payments on borrowings and capital lease obligations
 
(62
)
 
(60
)
 
(163
)
Net borrowings under short-term credit agreements
 
1

 
12

 
19

Distributions to noncontrolling interests
 
(30
)
 
(29
)
 
(65
)
Dividend payments on common stock (Note 14)
 
(718
)
 
(701
)
 
(676
)
Repurchases of common stock (Note 14)
 
(1,140
)
 
(451
)
 
(778
)
Acquisitions of noncontrolling interests (Note 19)
 

 

 
(98
)
Other, net
 
31

 
63

 
25

Net cash used in financing activities
 
(1,400
)
 
(1,074
)
 
(1,413
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
(70
)
 
98

 
(200
)
Net (decrease) increase in cash and cash equivalents
 
(66
)
 
249


(591
)
Cash and cash equivalents at beginning of year
 
1,369

 
1,120

 
1,711

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
1,303

 
$
1,369

 
$
1,120

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

67