UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549


FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report:  April 29, 2014
 
  CUMMINS INC.
(Exact name of registrant as specified in its charter)
Indiana
(State or other Jurisdiction of
Incorporation)
1-4949
 (Commission File Number)
35-0257090
 (I.R.S. Employer Identification No.)

500 Jackson Street
P. O. Box 3005
Columbus, IN  47202-3005
(Principal Executive Office)  (Zip Code)

Registrant's telephone number, including area code:  (812) 377-5000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
  
 



Item 2.02. Results of Operations and Financial Condition.
 
On April 29, 2014, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the first quarter of 2014, which is furnished herewith as Exhibit 99. The information furnished pursuant to this Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.


 Item 9.01. Financial Statements and Exhibits.
 
(d)
The following exhibit is furnished pursuant to Item 2.02 herewith: 
99-Press Release dated April 29, 2014


SIGNATURE

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: April 29, 2014
 
CUMMINS INC.
 /s/ Marsha L. Hunt
Marsha L. Hunt
Vice President - Corporate Controller
(Principal Accounting Officer)

 


CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (a)



 
 
Three months ended
In millions, except per share amounts
 
March 30, 2014
 
December 31, 2013
 
March 31, 2013
NET SALES 
 
$
4,406

 
$
4,588

 
$
3,922

Cost of sales
 
3,290

 
3,424

 
2,965

GROSS MARGIN
 
1,116

 
1,164

 
957

 
 
 
 
 
 
 
OPERATING EXPENSES AND INCOME
 
 
 
 
 
 
Selling, general and administrative expenses
 
502

 
500

 
444

Research, development and engineering expenses
 
190

 
181

 
182

Equity, royalty and interest income from investees (Note 1)
 
90

 
80

 
82

Other operating income (expense), net
 
(1
)
 
(10
)
 
1

OPERATING INCOME
 
513

 
553


414

 
 
 
 
 
 
 
Interest income
 
5

 
6

 
5

Interest expense
 
17

 
19

 
6

Other income, net
 
10

 
7

 
18

INCOME BEFORE INCOME TAXES
 
511

 
547

 
431

 
 
 
 
 
 
 
Income tax expense  (Note 2)
 
153

 
86

 
119

CONSOLIDATED NET INCOME
 
358

 
461

 
312

 
 
 
 
 
 
 
Less: Net income attributable to noncontrolling interests
 
20

 
29

 
30

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
338

 
$
432

 
$
282

 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 
 
 
 
 
Basic
 
$
1.83

 
$
2.33

 
$
1.50

Diluted
 
$
1.83

 
$
2.32

 
$
1.49

 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
 
 

 
 
 
 
Basic
 
184.3

 
185.7

 
188.4

Diluted
 
184.7

 
186.3

 
188.8

 
 
 
 
 
 
 
CASH DIVIDENDS DECLARED PER COMMON SHARE
 
$
0.625

 
$
0.625

 
$
0.50

 
(a)     Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.





 




CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)


In millions, except par value
 
March 30, 2014
 
December 31, 2013
ASSETS
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
2,178

 
$
2,699

Marketable securities
 
129

 
150

Total cash, cash equivalents and marketable securities
 
2,307

 
2,849

Accounts and notes receivable, net
 
2,949

 
2,649

Inventories
 
2,580

 
2,381

Prepaid expenses and other current assets
 
663

 
760

Total current assets
 
8,499

 
8,639

Long-term assets
 
 
 
 
Property, plant and equipment
 
6,563

 
6,410

Accumulated depreciation
 
(3,331
)
 
(3,254
)
Property, plant and equipment, net
 
3,232

 
3,156

Investments and advances related to equity method investees
 
966

 
931

Goodwill
 
464

 
461

Other intangible assets, net
 
357

 
357

Other assets
 
1,233

 
1,184

Total assets
 
$
14,751

 
$
14,728

 
 
 
 
 
LIABILITIES
 
 
 
 
Current liabilities
 
 
 
 
Loans payable
 
$
24

 
$
17

Accounts payable (principally trade)
 
1,887

 
1,557

Current maturities of long-term debt
 
37

 
51

Current portion of accrued product warranty
 
345

 
360

Accrued compensation, benefits and retirement costs
 
323

 
433

Deferred revenue
 
295

 
285

Taxes payable (including taxes on income)
 
69

 
99

Other accrued expenses
 
575

 
566

Total current liabilities
 
3,555

 
3,368

Long-term liabilities
 
 
 
 
Long-term debt
 
1,632

 
1,672

Pensions
 
232

 
232

Postretirement benefits other than pensions
 
347

 
356

Other liabilities and deferred revenue
 
1,251

 
1,230

Total liabilities
 
7,017

 
6,858

 
 
 
 
 
EQUITY
 
 
 
 
Cummins Inc. shareholders’ equity
 
 
 
 
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued
 
2,101

 
2,099

Retained earnings
 
8,629

 
8,406

Treasury stock, at cost, 38.4 and 35.6 shares
 
(2,600
)
 
(2,195
)
Common stock held by employee benefits trust, at cost, 1.2 and 1.3 shares
 
(15
)
 
(16
)
Accumulated other comprehensive loss
 
 
 
 
Defined benefit postretirement plans
 
(607
)
 
(611
)
Other
 
(148
)
 
(173
)
Total accumulated other comprehensive loss
 
(755
)
 
(784
)
Total Cummins Inc. shareholders’ equity
 
7,360

 
7,510

Noncontrolling interests
 
374

 
360

Total equity
 
7,734

 
7,870

Total liabilities and equity
 
$
14,751

 
$
14,728

 (a)     Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)



 
 
Three months ended
In millions
 
March 30, 2014
 
March 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Consolidated net income
 
$
358

 
$
312

Adjustments to reconcile consolidated net income to net cash provided by operating activities
 
 
 
 
Depreciation and amortization
 
105

 
98

Gain on fair value adjustment for consolidated investees
 
(6
)
 
(7
)
Deferred income taxes
 
22

 
5

Equity in income of investees, net of dividends
 
(52
)
 
(36
)
Pension contributions in excess of expense
 
(100
)
 
(54
)
Other post-retirement benefits payments in excess of expense
 
(8
)
 
(8
)
Stock-based compensation expense
 
10

 
7

Excess tax benefits on stock-based awards
 
(5
)
 
(7
)
Translation and hedging activities
 
(3
)
 
(5
)
Changes in current assets and liabilities, net of acquisitions
 
 
 
 
Accounts and notes receivable
 
(232
)
 
(29
)
Inventories
 
(135
)
 
(177
)
Other current assets
 
2

 
158

Accounts payable
 
302

 
204

Accrued expenses
 
(95
)
 
(142
)
Changes in other liabilities and deferred revenue
 
50

 
47

Other, net
 
50

 
62

NET CASH PROVIDED BY OPERATING ACTIVITIES
 
263

 
428

 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Capital expenditures
 
(107
)
 
(114
)
Investments in internal use software
 
(14
)
 
(12
)
Investments in and advances to equity investees
 
(6
)
 
(24
)
Acquisitions of businesses, net of cash acquired
 
(90
)
 
(17
)
Investments in marketable securities—acquisitions
 
(84
)
 
(133
)
Investments in marketable securities—liquidations
 
108

 
187

Cash flows from derivatives not designated as hedges
 
5

 
(30
)
Other, net
 
1

 
—

Net cash used in investing activities
 
(187
)
 
(143
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Proceeds from borrowings
 
7

 
—

Payments on borrowings and capital lease obligations
 
(25
)
 
(27
)
Net borrowings (payments) under short-term credit agreements
 
(39
)
 
15

Distributions to noncontrolling interests
 
(13
)
 
(19
)
Dividend payments on common stock
 
(115
)
 
(95
)
Repurchases of common stock
 
(419
)
 
—

Excess tax benefits on stock-based awards
 
5

 
7

Other, net
 
(3
)
 
16

Net cash used in financing activities
 
(602
)
 
(103
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
5

 
(68
)
Net increase (decrease) in cash and cash equivalents
 
(521
)
 
114

Cash and cash equivalents at beginning of year
 
2,699

 
1,369

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
2,178

 
$
1,483


(a)     Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)



 
In millions
 
Engine
 
Components
 
Power Generation
 
Distribution
 
Non-segment
Items(1)
 
Total
 
Three months ended March 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
2,090

 
$
922

 
$
452

 
$
942

 
$
—

 
$
4,406

 
Intersegment sales
 
473

 
308

 
187

 
8

 
(976
)
 
—

 
Total sales
 
2,563

 
1,230

 
639

 
950

 
(976
)
 
4,406

 
Depreciation and amortization(2)
 
51

 
26

 
12

 
16

 
—

 
105

 
Research, development and engineering expenses
 
116

 
53

 
19

 
2

 
—

 
190

 
Equity, royalty and interest income from investees
 
32

 
9

 
8

 
41

 
—

 
90

 
Interest income
 
2

 
1

 
1

 
1

 
—

 
5

 
Segment EBIT
 
269

 
167

 
25

 
76

(3) 
(9
)
 
528

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
10.5
%
 
13.6
%
 
3.9
%
 
8.0
%
 
 
 
12.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
2,131

 
$
859

 
$
533

 
$
1,065

 
$
—

 
$
4,588

 
Intersegment sales
 
431

 
276

 
226

 
8

 
(941
)
 
—

 
Total sales
 
2,562

 
1,135

 
759

 
1,073

 
(941
)
 
4,588

 
Depreciation and amortization(2)
 
49

 
25

 
13

 
14

 
—

 
101

 
Research, development and engineering expenses
 
106

 
53

 
20

 
2

 
—

 
181

 
Equity, royalty and interest income from investees
 
30

 
7

 
2

 
41

 
—

 
80

 
Interest income
 
3

 
1

 
1

 
1

 
—

 
6

 
Segment EBIT
 
235

 
140

 
46

 
107

 
38

 
566

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
9.2
%
 
12.3
%
 
6.1
%
 
10.0
%
 
 
 
12.3
%
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,885

 
$
722

 
$
539

 
$
776

 
$
—

 
$
3,922

 
Intersegment sales
 
418

 
296

 
207

 
2

 
(923
)
 
—

 
Total sales
 
2,303

 
1,018

 
746

 
778

 
(923
)
 
3,922

 
Depreciation and amortization(2)
 
52

 
24

 
12

 
10

 
—

 
98

 
Research, development and engineering expenses
 
105

 
57

 
18

 
2

 
—

 
182

 
Equity, royalty and interest income from investees
 
23

 
7

 
7

 
45

 
—

 
82

 
Interest income
 
2

 
1

 
2

 
—

 
—

 
5

 
Segment EBIT
 
195

 
119

 
51

 
95

(3) 
(23
)
 
437

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
8.5
%
 
11.7
%
 
6.8
%
 
12.2
%
 
 
 
11.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 30, 2014, December 31, 2013 and March 31, 2013.
(2
)
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."
(3
)
Distribution segment EBIT for the three months ended March 30, 2014, included a $6 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Mid-South LLC. Distribution segment EBIT for the three months ended March 31, 2013, included a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Northwest LLC.
 

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)


A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:
 
 
 
Three months ended
In millions
 
March 30, 2014
 
December 31, 2013
 
March 31, 2013
Total EBIT
 
$
528

 
$
566

 
$
437

Less: Interest expense
 
17

 
19

 
6

Income before income taxes
 
$
511

 
$
547

 
$
431


CUMMINS INC. AND SUBSIDIARIES
SELECTED FOOTNOTE DATA
(Unaudited)




NOTE 1.  EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the reporting periods was as follows:
 
 
Three months ended
In millions
 
March 30, 2014
 
December 31, 2013
 
March 31, 2013
Distribution Entities
 
 
 
 
 
 
North American distributors
 
$
32

 
$
31

 
$
35

Komatsu Cummins Chile, Ltda.
 
6

 
8

 
5

All other distributors
 
1

 
—

 
—

Manufacturing Entities
 
 

 
 

 
 
Dongfeng Cummins Engine Company, Ltd.
 
14

 
18

 
12

Chongqing Cummins Engine Company, Ltd.
 
11

 
14

 
12

Beijing Foton Cummins Engine Co., Ltd. (Light-duty)
 
6

 
3

 
1

Shanghai Fleetguard Filter Co., Ltd.
 
3

 
2

 
3

Tata Cummins, Ltd.
 
2

 
1

 
1

Cummins Westport, Inc.
 
1

 
(1
)
 
—

Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty)
 
(6
)
 
(7
)
 
(3
)
All other manufacturers
 
9

 
2

 
7

Cummins share of net income
 
79

 
71

 
73

Royalty and interest income
 
11

 
9

 
9

Equity, royalty and interest income from investees
 
$
90

 
$
80

 
$
82

 
NOTE 2.  INCOME TAXES

Our effective tax rate for the year is expected to approximate 28.5 percent, excluding any one-time items that may arise.  The research tax credit expired December 31, 2013 and has not yet been renewed by Congress. Our tax rate is generally less than the 35 percent U.S. statutory income tax rate primarily due to lower tax rates on foreign income.  The effective tax rate for the three months ended March 30, 2014, was 29.9 percent.  This tax rate includes a $12 million discrete tax expense primarily attributable to state deferred tax adjustments, as well as a $5 million discrete net tax benefit resulting from a $70 million dividend paid from China earnings generated prior to 2012.

Our tax rate for the three month period ended December 31, 2013 was 15.7 percent. We recorded $70 million or $0.38 per share of tax benefits in the fourth quarter of 2013. The income tax provision for the fourth quarter of 2013 was net of the following items:
One-time impacts of foreign legal entity restructuring actions
 
$
16

One-time impacts of reconciliation of state income tax provision to tax return
 
17

Lower operating rate primarily resulting from recognition of state and federal research and development credits and the recurring impacts of foreign legal entity restructuring actions
 
37

Total
 
$
70

Our effective tax rate for the three months ended March 31, 2013, was 27.6 percent. This tax rate included a discrete tax benefit of $28 million attributable to the 2012 research credit reinstated in January 2013 as well as a discrete tax expense of $17 million, which primarily related to the write-off of a deferred tax asset deemed unrecoverable. The increase in the three month effective tax rate from 2013 to 2014 is attributable primarily to one-time discrete tax benefits in 2013 that did not repeat in 2014 and changes in U.S. state tax legislation that unfavorably impacted our 2014 effective tax rate.




NOTE 3. ACQUISITION  
Cummins Mid-South LLC
On February 14, 2014, we acquired the remaining 62.2 percent interest in Cummins Mid-South LLC (Mid-South) from the former distributor principal. The preliminary purchase consideration was $116 million, which included $32 million in cash and an additional $61 million paid to eliminate outstanding debt. The remaining $23 million will be paid in future periods, subject to customary purchase price adjustments. The acquisition was accounted for as a business combination and the results of the acquired entity were included in the Distribution operating segment subsequent to the acquisition date. As a result of this transaction, first quarter 2014 Distribution segment results included a $6 million gain, as we were required to re-measure our pre-existing 37.8 percent ownership interest in Mid-South to fair value. The transaction generated $3 million of goodwill based on the preliminary purchase price allocation. Net sales for Mid-South were $368 million for the year ended December 31, 2013. This amount is not fully incremental to our consolidated sales as the amount would be reduced by the elimination of sales to the previously unconsolidated entity.



CUMMINS INC. AND SUBSIDIARIES
FINANICAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

 
Earnings before interest, taxes and noncontrolling interests
 
We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries (EBIT).  We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs.  This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of EBIT to “Net income attributable to Cummins Inc.,” for each of the applicable periods:
 
 
Three months ended
In millions
 
March 30, 2014
 
December 31, 2013
 
March 31, 2013
Earnings before interest expense and income taxes
 
$
528

 
$
566

 
$
437

 
 
 
 
 
 
 
EBIT as a percentage of net sales
 
12.0
%
 
12.3
%
 
11.1
%
 
 
 
 
 
 
 
Less
 
 
 
 
 
 
Interest expense
 
17

 
19

 
6

Income tax expense
 
153

 
86

 
119

Consolidated net income
 
358

 
461

 
312

 
 
 
 
 
 
 
Less
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
20

 
29

 
30

Net income attributable to Cummins Inc.
 
$
338

 
$
432

 
$
282

 
 
 
 
 
 
 
Net income attributable to Cummins Inc. as a percentage of net sales
 
7.7
%
 
9.4
%
 
7.2
%



CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)



Engine segment net sales by market
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
722

 
$
—

 
$
—

 
$
—

 
$
722

Medium-duty truck and bus
 
601

 
—

 
—

 
—

 
601

Light-duty automotive and RV
 
361

 
—

 
—

 
—

 
361

Industrial
 
700

 
—

 
—

 
—

 
700

Stationary power
 
179

 
—

 
—

 
—

 
179

Total sales
 
$
2,563

 
$
—

 
$
—

 
$
—

 
$
2,563

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
654

 
$
723

 
$
690

 
$
638

 
$
2,705

Medium-duty truck and bus
 
448

 
595

 
570

 
572

 
2,185

Light-duty automotive and RV
 
260

 
345

 
330

 
365

 
1,300

Industrial
 
714

 
762

 
709

 
811

 
2,996

Stationary power
 
227

 
231

 
193

 
176

 
827

Total sales
 
$
2,303

 
$
2,656

 
$
2,492

 
$
2,562

 
$
10,013

 
Unit shipments by engine classification (including unit shipments to Power Generation)
2014
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Midrange
 
118,900

 
—

 
—

 
—

 
118,900

Heavy-duty
 
28,800

 
—

 
—

 
—

 
28,800

High-horsepower
 
3,400

 
—

 
—

 
—

 
3,400

Total units
 
151,100

 
—

 
—

 
—

 
151,100

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Midrange
 
94,600

 
121,900

 
113,800

 
115,700

 
446,000

Heavy-duty
 
24,900

 
28,300

 
26,500

 
25,700

 
105,400

High-horsepower
 
4,200

 
3,600

 
3,500

 
3,500

 
14,800

Total units
 
123,700

 
153,800

 
143,800

 
144,900

 
566,200


Component segment sales by business 
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission Solutions
 
$
543

 
$
—

 
$
—

 
$
—

 
$
543

Turbo Technologies
 
313

 
—

 
—

 
—

 
313

Filtration
 
265

 
—

 
—

 
—

 
265

Fuel systems
 
109

 
—

 
—

 
—

 
109

Total sales
 
$
1,230

 
$
—

 
$
—

 
$
—

 
$
1,230

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission Solutions
 
$
400

 
$
444

 
$
458

 
$
489

 
$
1,791

Turbo Technologies
 
266

 
294

 
263

 
292

 
1,115

Filtration
 
255

 
271

 
248

 
254

 
1,028

Fuel systems
 
97

 
108

 
103

 
100

 
408

Total sales
 
$
1,018

 
$
1,117

 
$
1,072

 
$
1,135

 
$
4,342



CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)


Power Generation segment sales by business
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power products
 
$
373

 
$
—

 
$
—

 
$
—

 
$
373

Power systems
 
137

 
—

 
—

 
—

 
137

Alternators
 
105

 
—

 
—

 
—

 
105

Power solutions
 
24

 
—

 
—

 
—

 
24

Total sales
 
$
639

 
$
—

 
$
—

 
$
—

 
$
639

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power products
 
$
409

 
$
474

 
$
421

 
$
421

 
$
1,725

Power systems
 
179

 
187

 
122

 
168

 
656

Alternators
 
126

 
125

 
126

 
119

 
496

Power solutions
 
32

 
28

 
43

 
51

 
154

Total sales
 
$
746

 
$
814

 
$
712

 
$
759

 
$
3,031

 
Distribution segment sales by business
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts and filtration
 
$
382

 
$
—

 
$
—

 
$
—

 
$
382

Power generation
 
193

 
—

 
—

 
—

 
193

Engines
 
174

 
—

 
—

 
—

 
174

Service
 
201

 
—

 
—

 
—

 
201

Total sales
 
$
950

 
$
—

 
$
—

 
$
—

 
$
950

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts and filtration
 
$
322

 
$
369

 
$
377

 
$
397

 
$
1,465

Power generation
 
163

 
241

 
234

 
293

 
931

Engines
 
152

 
183

 
170

 
208

 
713

Service
 
141

 
161

 
163

 
175

 
640

Total sales
 
$
778

 
$
954

 
$
944

 
$
1,073

 
$
3,749