SEC Filings


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

similar to the treatment for operating leases under today's standards. Finance leases will result in an accelerated expense similar to the accounting for capital leases under today's standards. The determination of a lease classification as operating or finance will occur in a manner similar to today's standard. The new standard also contains amended guidance regarding the identification of embedded leases in service contracts and the identification of lease and non-lease components of an arrangement. The new standard is effective on January 1, 2019 and we will adopt on a modified retrospective basis with a cumulative effect adjustment, if any, to be recorded in retained earnings on January 1, 2019. We do not expect this adjustment to be material. Based on our current lease portfolio, adoption of the standard will result in an increase in operating lease assets and liabilities in a range of $445 million to $495 million with an immaterial impact on our Consolidated Statements of Income; however this estimate is subject to change as we finalize our implementation. We are implementing enhanced internal controls and a software solution to comply with the requirements of the standard.
NOTE 2. DISAGGREGATION OF REVENUE
Consolidated Revenue
The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer.
 
 
Years ended December 31,
In millions
 
2018
 
2017
 
2016
United States
 
$
13,218

 
$
11,010

 
$
9,476

China
 
2,324

 
2,137

 
1,544

India
 
965

 
805

 
621

Other international
 
7,264

 
6,476

 
5,868

Total net sales
 
$
23,771

 
$
20,428

 
$
17,509



Segment Revenue
Engine segment external sales by market were as follows:
In millions
 
Year ended December 31, 2018
Heavy-duty truck
 
$
2,885

Medium-duty truck and bus
 
2,536

Light-duty automotive
 
1,501

Total on-highway
 
6,922

Off-highway
 
1,080

Total sales
 
$
8,002


Distribution segment external sales by region were as follows:
In millions
 
Year ended December 31, 2018
North America
 
$
5,331

Asia Pacific
 
851

Europe
 
536

China
 
317

Africa and Middle East
 
242

India
 
192

Latin America
 
169

Russia
 
169

Total sales
 
$
7,807



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