EXHIBIT 99

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For Immediate Release

February 3, 2022

Cummins Reports Fourth Quarter and Full Year 2021 Results

•Full year revenues of $24 billion; GAAP1 Net Income of $2.1 billion
•EBITDA for the full year was 14.7 percent of sales; Diluted EPS of $14.61
•Fourth quarter revenues of $5.9 billion; GAAP1 Net Income of $394 million
•Fourth quarter EBITDA of 12.1 percent; Diluted EPS of $2.73
•The company expects full year 2022 revenues to be up 6 percent, EBITDA expected to be approximately 15.5 percent

COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) today reported full year 2021 results.

Revenues for the full year were $24 billion, 21 percent higher than 2020. Sales in North America increased 17 percent and international revenues increased 27 percent. Sales increased in all major regions compared to the prior year, which was severely impacted by the height of the COVID-19 pandemic.

EBITDA for the year was $3.5 billion (14.7 percent of sales) compared to $3.1 billion (15.7 percent of sales) in 2020.

Net income attributable to Cummins for the full year was $2.1 billion ($14.61 per diluted share), compared to net income of $1.8 billion ($12.01 per diluted share) in 2020. The tax rate for 2021 was 21.3 percent.

Fourth quarter revenues of $5.9 billion were flat with the same quarter in 2020. Sales in North America decreased 4 percent while international revenues increased 6 percent driven by strong demand across most global markets, with the exception of China, compared to the same quarter in 2020.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter were $705 million (12.1 percent of sales), compared to $837 million (14.4 percent of sales) a year ago.

Net income attributable to Cummins in the fourth quarter was $394 million ($2.73 per diluted share) compared to $501 million ($3.36 per diluted share) in 2020. The tax rate in the fourth quarter was 22.2 percent.

“Strong economic recovery combined with high demand for our products resulted in record full year revenues in 2021. Our industry continues to experience significant supply chain constraints resulting in elevated manufacturing, logistics, and material costs resulting in margins below our expectations, particularly in the fourth quarter,” said Chairman and CEO Tom Linebarger. “We have taken actions to improve margins in 2022 and expect to generate strong incremental margins through increased pricing, surcharges, a number of cost reduction initiatives and operational improvements. Having effectively managed through a challenging
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2021, Cummins is in a solid position to keep investing in future growth while continuing to return cash to shareholders. The transition to low carbon power across industries will be a significant driver in the fight against climate change and will require a broad mix of innovative technologies to achieve these goals. This decarbonization effort represents a significant growth opportunity for Cummins as many of our OEM partners and end customers look to achieve their climate goals, while still having power solutions that fulfill their needs. Cummins key capabilities uniquely position us to lead in the transition to zero emissions.”

2022 Outlook:
Based on the current forecast, Cummins projects full year 2022 revenues to be up 6 percent, and EBITDA to be approximately 15.5 percent of sales. We expect revenues to increase in all regions and major markets except China where we expect demand to moderate after a record year in 2021.

The company plans to continue to generate strong operating cash flow and returns for shareholders.

2021 Highlights:

•Cummins increased its cash dividend for the 12th straight year and returned a total of $2.2 billion to shareholders in the form of dividends and share repurchases. The Board of Directors authorized the repurchase of up to $2 billion in shares of common stock upon completion of the company’s 2019 $2 billion share repurchase program, reinforcing the company’s commitment to deliver strong returns to shareholders and confidence in long-term performance.

•Cummins announced that it will bring to market a 15-liter natural gas engine for heavy-duty trucks. The 15-liter natural gas engine is an important part of Destination Zero, Cummins strategy for the best way to decarbonize our industry, focusing on reducing carbon from the technologies that are widely available today, while investing in the infrastructure capabilities and technologies with the potential to reach zero. The strategy focuses on new powertrains including advanced diesel, natural gas, hydrogen engines, hybrids, battery electric, and fuel cells along with an increased use of low carbon fuels and renewable electricity. The expanding product lineup will help achieve Cummins’ PLANET 2050 environmental goals which include lowering emissions from newly sold products by 30% by 2030 and a goal of carbon neutrality by 2050, aligned with the Paris Climate Accord targets.

•Cummins and Sinopec announced the formation of a 50:50 joint venture, Cummins Enze, to accelerate the affordability and availability of green hydrogen in China. The joint venture will invest in an electrolyzer plant with annual capacity starting at 500 megawatts in 2023, and scalable to one gigawatt within 5 years after completion. Cummins Enze will also provide a variety of hydrogen generation system solutions to meet diversified application requirements for both small and large scale hydrogen production.

•In August, the company announced its exploration of strategic alternatives for its Filtration business unit. The company believes the separation will create value for both companies by enabling enhanced focus on key strategic initiatives, continued innovation in core and new technologies for Cummins, and greater focus and operating flexibility for the Filtration business. The method and timing of the separation are under evaluation.

•In response to the COVID-19 pandemic, the company launched an aggressive global effort to acquire vaccines and provide them onsite or near-site to our employees, their families and other stakeholders. By partnering with governments and health care providers, we facilitated the delivery of over 45,000 doses of approved vaccines to employees. This includes over 5,000 shots in the U.S., over 30,000
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shots in India and over 10,000 shots in Mexico.

•In October 2021, Cummins was named to the S&P Dow Jones World and North American Sustainability Indexes. It was the 16th consecutive time the company was named to the North American index and the first time on the world index since 2013. The prestigious indices rate companies on their environmental, social and governance performance.

Fourth quarter 2021 detail (all comparisons to same period in 2020):

Engine Segment

•Sales - $2.4 billion, up 4 percent
•Segment EBITDA - $264 million, or 10.9 percent of sales, compared to $338 million or 14.5 percent of sales
•On-highway revenues increased 5 percent and off-highway revenues increased 2 percent
•Sales in North America decreased 4 percent while international sales increased 26 percent driven by demand across Australia, Europe, and Latin America

Distribution Segment

•Sales - $2.1 billion, up 3 percent
•Segment EBITDA - $178 million, or 8.6 percent of sales, compared to $165 million or 8.3 percent of sales
•Revenues in North America were down 1 percent while international sales increased by 10 percent driven by strong demand in Russia
•Increased engine and aftermarket demand offset a decline in power generation

Components Segment

•Sales - $1.7 billion, down 6 percent
•Segment EBITDA - $205 million, or 11.9 percent of sales, compared to $280 million or 15.3 percent of sales
•Revenues in North America increased 1 percent and international sales decreased 12 percent due to lower demand in China

Power Systems Segment

•Sales - $1.1 billion, up 10 percent
•Segment EBITDA - $97 million, or 8.9 percent of sales, compared to $74 million, or 7.5 percent of sales
•Power generation revenues decreased by 6 percent while industrial revenues increased 37 percent driven by strong mining demand

New Power Segment

•Sales - $34 million, flat with the same quarter last year
•Segment EBITDA loss - $54 million
•Continued investment in the development of fuel cells and electrolyzers as well as products to support battery electric vehicles is expected to support strong growth in 2022 and beyond and is contributing to current EBITDA losses.

1 Generally Accepted Accounting Principles

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About Cummins Inc.
Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen generation and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 59,900 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $2.1 billion on sales of $24.0 billion in 2021. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/always-on.

Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse results of our internal review into our emissions certification process and compliance with emission standards; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; policy changes in international trade; any adverse effects of the U.S. government's COVID-19 vaccine mandates; the U.K.'s exit from the European Union; changes in taxation; global legal and ethical compliance costs and risks; increasingly stringent environmental laws and regulations; future bans or limitations on the use of diesel-powered products; supply shortages and supplier financial risk, particularly from any of our single-sourced suppliers, including suppliers that may be impacted by the COVID-19 pandemic; market slowdown due to the impacts from the COVID-19 pandemic, other public health crises, epidemics or pandemics; impacts to manufacturing and supply chain abilities from an extended shutdown or disruption of our operations due to the COVID-19 pandemic; aligning our capacity and production with our demand, including impacts of COVID-19; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, particularly related to the COVID-19 pandemic, bankruptcy or change in control; a slowdown in infrastructure development and/or depressed commodity prices; failure to realize expected results from our investment in Eaton Cummins Automated Transmission Technologies joint venture; the actions of, and income from, joint ventures and other investees that we do not directly control; product recalls; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; variability in material and commodity costs; product liability claims; our sales mix of products; protection and validity of our patent and other intellectual property rights; disruptions in global credit and financial markets as the result of the COVID-19 pandemic; labor relations or work stoppages; reliance on our executive leadership team and other key personnel; climate change and global warming; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; exposure to potential security breaches or other disruptions to our information technology systems and data security; political, economic and other risks from operations in numerous countries; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates, particularly those related to the sustained slowdown of the global economy due to the COVID-19 pandemic; the price and availability of energy; the outcome of pending and future litigation and governmental proceedings; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2020 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

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Presentation of Non-GAAP Financial Information
EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

Webcast information
Cummins management will host a teleconference to discuss these results today at 10 a.m. EST. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

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

 Three months ended December 31,
In millions, except per share amounts20212020
NET SALES$5,850 $5,830 
Cost of sales4,533 4,469 
GROSS MARGIN 1,317 1,361 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses 629 576 
Research, development and engineering expenses288 255 
Equity, royalty and interest income from investees109 110 
Other operating expense, net(14)(11)
OPERATING INCOME 495 629 
Interest expense26 29 
Other income, net45 35 
INCOME BEFORE INCOME TAXES 514 635 
Income tax expense114 125 
CONSOLIDATED NET INCOME 400 510 
Less: Net income attributable to noncontrolling interests6 9 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $394 $501 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $2.76 $3.39 
Diluted $2.73 $3.36 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING   
Basic 142.9 148.0 
Diluted 144.1 149.3 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.








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

 Years ended December 31,
In millions, except per share amounts20212020
NET SALES$24,021 $19,811 
Cost of sales18,326 14,917 
GROSS MARGIN 5,695 4,894 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses2,374 2,125 
Research, development and engineering expenses1,090 906 
Equity, royalty and interest income from investees506 452 
Other operating expense, net(31)(46)
OPERATING INCOME 2,706 2,269 
Interest expense111 100 
Other income, net156 169 
INCOME BEFORE INCOME TAXES 2,751 2,338 
Income tax expense587 527 
CONSOLIDATED NET INCOME 2,164 1,811 
Less: Net income attributable to noncontrolling interests33 22 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $2,131 $1,789 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $14.74 $12.07 
Diluted $14.61 $12.01 
 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic 144.6 148.2 
Diluted 145.9 149.0 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.


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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
In millions, except par valueDecember 31,
2021		December 31,
2020
ASSETS  
Current assets   
Cash and cash equivalents $2,592 $3,401 
Marketable securities595 461 
Total cash, cash equivalents and marketable securities 3,187 3,862 
Accounts and notes receivable, net 3,990 3,820 
Inventories4,355 3,425 
Prepaid expenses and other current assets 777 790 
Total current assets 12,309 11,897 
Long-term assets   
Property, plant and equipment, net4,422 4,255 
Investments and advances related to equity method investees1,538 1,441 
Goodwill1,287 1,293 
Other intangible assets, net900 963 
Pension assets1,488 1,042 
Other assets1,766 1,733 
Total assets $23,710 $22,624 
LIABILITIES  
Current liabilities   
Accounts payable (principally trade) $3,021 $2,820 
Loans payable208 169 
Commercial paper313 323 
Accrued compensation, benefits and retirement costs 683 484 
Current portion of accrued product warranty755 674 
Current portion of deferred revenue855 691 
Other accrued expenses1,190 1,112 
Current maturities of long-term debt59 62 
Total current liabilities 7,084 6,335 
Long-term liabilities   
Long-term debt3,579 3,610 
Pensions and other postretirement benefits604 630 
Accrued product warranty684 672 
Deferred revenue850 840 
Other liabilities1,508 1,548 
Total liabilities $14,309 $13,635 
EQUITY
Cummins Inc. shareholders’ equity  
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.4 shares issued $2,427 $2,404 
Retained earnings 16,741 15,419 
Treasury stock, at cost, 80.0 and 74.8 shares (9,123)(7,779)
Accumulated other comprehensive loss(1,571)(1,982)
Total Cummins Inc. shareholders’ equity 8,474 8,062 
Noncontrolling interests927 927 
Total equity $9,401 $8,989 
Total liabilities and equity $23,710 $22,624 
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.


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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
 Three months ended December 31,
In millions20212020
NET CASH PROVIDED BY OPERATING ACTIVITIES$732 $1,142 
CASH FLOWS FROM INVESTING ACTIVITIES  
Capital expenditures(372)(260)
Investments in internal use software(16)(14)
Investments in and advances to equity investees(51)(21)
Investments in marketable securities—acquisitions(237)(171)
Investments in marketable securities—liquidations71 61 
Cash flows from derivatives not designated as hedges30 19 
Other, net(20)4 
Net cash used in investing activities(595)(382)
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from borrowings44 15 
Net borrowings of commercial paper113 7 
Payments on borrowings and finance lease obligations(16)(32)
Net borrowings under short-term credit agreements65 4 
Dividend payments on common stock(208)(200)
Repurchases of common stock(174)(91)
Proceeds from issuing common stock 29 10 
Other, net(1)3 
Net cash used in financing activities(148)(284)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 15 (42)
Net increase in cash and cash equivalents4 434 
Cash and cash equivalents at beginning of period2,588 2,967 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,592 $3,401 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

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

 Years ended December 31,
In millions20212020
NET CASH PROVIDED BY OPERATING ACTIVITIES$2,256 $2,722 
CASH FLOWS FROM INVESTING ACTIVITIES   
Capital expenditures(734)(528)
Investments in internal use software(52)(47)
Proceeds from sale of land20 — 
Investments in and advances to equity investees(48)(51)
Investments in marketable securities—acquisitions(806)(593)
Investments in marketable securities—liquidations673 469 
Cash flows from derivatives not designated as hedges49 4 
Other, net25 27 
Net cash used in investing activities(873)(719)
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds from borrowings79 2,014 
Net payments of commercial paper(10)(337)
Payments on borrowings and finance lease obligations(73)(73)
Net (payments) borrowings under short-term credit agreements(28)10 
Distributions to noncontrolling interests(28)(26)
Dividend payments on common stock(809)(782)
Repurchases of common stock(1,402)(641)
Proceeds from issuing common stock 56 88 
Other, net(12)27 
Net cash (used in) provided by financing activities (2,227)280 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 35 (11)
Net (decrease) increase in cash and cash equivalents(809)2,272 
Cash and cash equivalents at beginning of year 3,401 1,129 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,592 $3,401 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
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CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsEngineDistributionComponentsPower SystemsNew PowerTotal Segments
Intersegment Eliminations (1)
Total
Three months ended December 31, 2021      
External sales$1,813 $2,050 $1,305 $651 $31 $5,850 $— $5,850 
Intersegment sales613 8 421 435 3 1,480 (1,480)— 
Total sales2,426 2,058 1,726 1,086 34 7,330 (1,480)5,850 
Research, development and engineering expenses111 13 75 62 27 288 — 288 
Equity, royalty and interest income (loss) from investees62 16 9 24 (2)109 — 109 
Interest income1 2 2 2 — 7 — 7 
EBITDA (2)
264 178 205 97 (54)690 15 705 
Depreciation and amortization (3)
51 28 45 34 7 165 — 165 
EBITDA as a percentage of segment sales10.9 %8.6 %11.9 %8.9 %NM9.4 %12.1 %
Three months ended December 31, 2020
External sales$1,792 $1,987 $1,458 $560 $33 $5,830 $— $5,830 
Intersegment sales537 9 373 429 1 1,349 (1,349)— 
Total sales2,329 1,996 1,831 989 34 7,179 (1,349)5,830 
Research, development and engineering expenses73 11 77 64 30 255 — 255 
Equity, royalty and interest income (loss) from investees76 17 15 3 (1)110 — 110 
Interest income3 1 1 1 — 6 — 6 
EBITDA (2)
338 165 280 74 (51)806 31 837 
Depreciation and amortization (3)
53 31 50 34 5 173 — 173 
EBITDA as a percentage of segment sales14.5 %8.3 %15.3 %7.5 %NM11.2 %14.4 %
"NM" - not meaningful information
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended December 31, 2021 and 2020.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.
(3) 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 Net Income as "Interest expense." A portion of depreciation expense is included in "Research, development and engineering expenses."


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CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsEngineDistributionComponentsPower SystemsNew PowerTotal Segments
Intersegment Eliminations (1)
Total
Year ended December 31, 2021
External sales$7,589 $7,742  $5,932 $2,650 $108 $24,021 $— $24,021 
Intersegment sales2,365 30  1,733 1,765 8 5,901 (5,901)— 
Total sales9,954 7,772  7,665 4,415 116 29,922 (5,901)24,021 
Research, development and engineering expenses399 48  307 234 102 1,090 — 1,090 
Equity, royalty and interest income (loss) from investees340 63  50 56 (3)506 — 506 
Interest income8 7  5 5 — 25 — 25 
EBITDA (2)
1,411 731 1,180 496 (223)3,595 (74)3,521 
Depreciation and amortization (3)
205 116  183 131 24 659 — 659 
EBITDA as a percentage of total sales14.2 %9.4 %15.4 %11.2 %NM12.0 %14.7 %
Year ended December 31, 2020
External sales$5,925 $7,110  $4,650 $2,055 $71 $19,811 $— $19,811 
Intersegment sales2,097 26  1,374 1,576 1 5,074 (5,074)— 
Total sales8,022 7,136  6,024 3,631 72 24,885 (5,074)19,811 
Research, development and engineering expenses290 31  264 212 109 906 — 906 
Equity, royalty and interest income (loss) from investees312 62  61 21 (4)452 — 452 
Interest income9 4 
 
4 4 — 21 — 21 
EBITDA (2)
1,235 665 961 343 (172)3,032 76 3,108 
Depreciation and amortization (3)
208 122  192 130 18 670 — 670 
EBITDA as a percentage of total sales15.4 %9.3 %16.0 %9.4 %NM12.2 %15.7 %
"NM" - not meaningful information
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the years ended December 31, 2021 and 2020.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.
(3) 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 Net Income as "Interest expense." The amortization of debt discount and deferred costs was $3 million and $3 million for the years ended December 31, 2021 and 2020, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."

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CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:
 Three months ended December 31,Years ended December 31,
In millions2021202020212020
EBITDA$705 $837 $3,521 $3,108 
EBITDA as a percentage of net sales12.1 %14.4 %14.7 %15.7 %
Less:
Interest expense26 29 111 100 
Depreciation and amortization165 173 659 670 
INCOME BEFORE INCOME TAXES514 635 2,751 2,338 
Less: Income tax expense114 125 587 527 
CONSOLIDATED NET INCOME400 510 2,164 1,811 
Less: Net income attributable to noncontrolling interests6 9 33 22 
NET INCOME ATTRIBUTABLE TO CUMMINS INC.$394 $501 $2,131 $1,789 
Net income attributable to Cummins Inc. as a percentage of net sales6.7 %8.6 %8.9 %9.0 %

We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.

EBITDA is not in accordance with, or an alternative for, accounting principles generally accepted in the United States (GAAP) and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Above is a reconciliation of EBITDA to “Net income attributable to Cummins Inc.” for each of the applicable periods.
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CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)


EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:
 Three months ended December 31,Years ended December 31,
In millions2021202020212020
Manufacturing entities
Dongfeng Cummins Engine Company, Ltd.$19 $9 $82 $63 
Chongqing Cummins Engine Company, Ltd.11 8 39 35 
Beijing Foton Cummins Engine Co., Ltd.4 32 112 113 
All other manufacturers32 

34 
(1)
149 

134 
(1)(2)
Distribution entities
Komatsu Cummins Chile, Ltda.9 8 32 31 
All other distributors4 1 10 2 
Cummins share of net income79 92 424 378 
Royalty and interest income30 18 82 74 
Equity, royalty and interest income from investees$109 $110 $506 $452 
(1) Includes loss on sale of business of $8 million for a joint venture in the Power Systems segment.
(2) Includes $37 million in favorable adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Changes) passed in March 2020 and impairment charges of $13 million for a joint venture in the Power Systems segment.

INCOME TAXES
Our effective tax rate for 2022 is expected to approximate 21.5 percent, excluding any discrete items that may arise.
Our effective tax rates for the three months and year ended December 31, 2021, were 22.2 percent and 21.3 percent, respectively.
The three months ended December 31, 2021, contained unfavorable discrete tax items of $17 million, or $0.12 per share, primarily due to $11 million of unfavorable changes in U.S. research and development tax reserve and $6 million of net unfavorable other discrete tax items.
The year ended December 31, 2021, contained unfavorable net discrete tax items of $9 million, or $0.06 per share, primarily due to $12 million of unfavorable provision to return adjustments related to the 2020 filed tax returns, partially offset by $3 million of favorable other discrete tax items.

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CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)
Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2021     
In millionsQ1Q2Q3Q4YTD
Heavy-duty truck$827 $839 $861 $801 $3,328 
Medium-duty truck and bus674 688 713 702 2,777 
Light-duty automotive481 484 515 432 1,912 
Off-highway477 480 489 491 1,937 
Total sales$2,459 $2,491 $2,578 $2,426 $9,954 
2020     
In millionsQ1Q2Q3Q4YTD
Heavy-duty truck$750 $415 $694 $789 $2,648 
Medium-duty truck and bus618 391 492 565 2,066 
Light-duty automotive353 180 522 492 1,547 
Off-highway437 437 404 483 1,761 
Total sales$2,158 $1,423 $2,112 $2,329 $8,022 

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2021     
UnitsQ1Q2Q3Q4YTD
Heavy-duty30,700 29,400 29,200 28,300 117,600 
Medium-duty73,100 67,500 65,200 68,000 273,800 
Light-duty68,500 68,100 73,900 62,800 273,300 
Total units172,300 165,000 168,300 159,100 664,700 
2020     
UnitsQ1Q2Q3Q4YTD
Heavy-duty25,800 15,900 23,300 27,500 92,500 
Medium-duty61,200 44,900 50,100 64,700 220,900 
Light-duty49,400 29,800 67,200 69,400 215,800 
Total units136,400 90,600 140,600 161,600 529,200 










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Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2021     
In millionsQ1Q2Q3Q4YTD
Parts$757 $765 $800 $823 $3,145 
Power generation418 454 438 452 1,762 
Engines334 351 377 437 1,499 
Service326 350 344 346 1,366 
Total sales$1,835 $1,920 $1,959 $2,058 $7,772 
2020     
In millionsQ1Q2Q3Q4YTD
Parts$787 $654 $722 $768 $2,931 
Power generation376 377 416 523 1,692 
Engines323 277 279 371 1,250 
Service328 297 304 334 1,263 
Total sales$1,814 $1,605 $1,721 $1,996 $7,136 

Component Segment Sales by Business
Sales for our Components segment by business were as follows:
2021     
In millionsQ1Q2Q3Q4YTD
Emission solutions$1,035 $882 $793 $789 $3,499 
Filtration372 374 354 338 1,438 
Turbo technologies367 351 325 308 1,351 
Electronics and fuel systems263 241 210 185 899 
Automated transmissions115 146 111 106 478 
Total sales$2,152 $1,994 $1,793 $1,726 $7,665 
2020     
In millionsQ1Q2Q3Q4YTD
Emission solutions$664 $472 $665 $831 $2,632 
Filtration312 255 314 351 1,232 
Turbo technologies270 216 281 331 1,098 
Electronics and fuel systems174 164 187 229 754 
Automated transmissions82 43 94 89 308 
Total sales$1,502 $1,150 $1,541 $1,831 $6,024 







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Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification
Sales for our Power Systems segment by product line were as follows:
2021     
In millionsQ1Q2Q3Q4YTD
Power generation$611 $655 $664 $585 $2,515 
Industrial324 399 412 399 1,534 
Generator technologies87 89 88 102 366 
Total sales$1,022 $1,143 $1,164 $1,086 $4,415 
2020     
In millionsQ1Q2Q3Q4YTD
Power generation$519 $424 $601 $623 $2,167 
Industrial296 291 309 292 1,188 
Generator technologies69 62 71 74 276 
Total sales$884 $777 $981 $989 $3,631 

High-horsepower unit shipments by engine classification were as follows:
2021     
UnitsQ1Q2Q3Q4YTD
Power generation2,100 1,800 2,500 2,000 8,400 
Industrial1,000 1,200 1,900 1,300 5,400 
Total units3,100 3,000 4,400 3,300 13,800 
2020     
UnitsQ1Q2Q3Q4YTD
Power generation1,800 1,000 2,300 2,600 7,700 
Industrial1,000 1,000 1,200 1,100 4,300 
Total units2,800 2,000 3,500 3,700 12,000 

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