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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
cumminslogoa02.jpg
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2023
 
Commission File Number 1-4949
CUMMINS INC.
(Exact name of registrant as specified in its charter)
Indiana35-0257090
(State of Incorporation)  (IRS Employer Identification No.)
500 Jackson Street
Box 3005
Columbus, Indiana 47202-3005
(Address of principal executive offices)
 
Telephone (812377-5000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common stock, $2.50 par valueCMINew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files). Yes x No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated FilerxAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No x
 
As of June 30, 2023, there were 141,647,129 shares of common stock outstanding with a par value of $2.50 per share.

1

Table of Contents
CUMMINS INC. AND SUBSIDIARIES
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
 
  Page
  
 Condensed Consolidated Statements of Net Income for the three and six months ended June 30, 2023 and June 30, 2022
 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and June 30, 2022
 Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022
 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and June 30, 2022
 Condensed Consolidated Statements of Changes in Redeemable Noncontrolling Interests and Equity for the three and six months ended June 30, 2023 and June 30, 2022
 
  
 



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Table of Contents
PART I.  FINANCIAL INFORMATION 
ITEM 1.  Condensed Consolidated Financial Statements 

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
Three months endedSix months ended
 June 30,June 30,
In millions, except per share amounts 2023202220232022
NET SALES (Notes 1 and 2)
$8,638 $6,586 $17,091 $12,971 
Cost of sales 6,490 4,860 12,914 9,713 
GROSS MARGIN 2,148 1,726 4,177 3,258 
OPERATING EXPENSES AND INCOME     
Selling, general and administrative expenses 873 622 1,626 1,237 
Research, development and engineering expenses 384 299 734 597 
Equity, royalty and interest income from investees (Note 4)133 95 252 191 
Other operating expense, net 27 3 46 114 
OPERATING INCOME 997 897 2,023 1,501 
Interest expense 99 34 186 51 
Other income (expense), net 51 (8)141 (17)
INCOME BEFORE INCOME TAXES 949 855 1,978 1,433 
Income tax expense (Note 5)212 148 435 303 
CONSOLIDATED NET INCOME 737 707 1,543 1,130 
Less: Net income attributable to noncontrolling interests17 5 33 10 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $720 $702 $1,510 $1,120 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.     
Basic $5.08 $4.97 $10.66 $7.90 
Diluted $5.05 $4.94 $10.60 $7.86 
 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING     
Basic 141.7 141.2 141.6 141.7 
Dilutive effect of stock compensation awards 0.8 0.8 0.9 0.8 
Diluted 142.5 142.0 142.5 142.5 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
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Table of Contents
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three months endedSix months ended
 June 30,June 30,
In millions 2023202220232022
CONSOLIDATED NET INCOME $737 $707 $1,543 $1,130 
Other comprehensive income (loss), net of tax (Note 12)    
Change in pension and other postretirement defined benefit plans 2 6 (7)22 
Foreign currency translation adjustments (110)(245)(28)(241)
Unrealized gain on derivatives 12 43 9 71 
Total other comprehensive loss, net of tax (96)(196)(26)(148)
COMPREHENSIVE INCOME 641 511 1,517 982 
Less: Comprehensive income (loss) attributable to noncontrolling interests 15 (10)34 (13)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC. $626 $521 $1,483 $995 
 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In millions, except par valueJune 30,
2023
December 31,
2022
ASSETS  
Current assets   
Cash and cash equivalents $1,802 $2,101 
Marketable securities (Note 6)512 472 
Total cash, cash equivalents and marketable securities 2,314 2,573 
Accounts and notes receivable, net 5,863 5,202 
Inventories (Note 7)6,026 5,603 
Prepaid expenses and other current assets 1,207 1,073 
Total current assets 15,410 14,451 
Long-term assets   
Property, plant and equipment 10,922 10,507 
Accumulated depreciation (5,199)(4,986)
Property, plant and equipment, net 5,723 5,521 
Investments and advances related to equity method investees 1,861 1,759 
Goodwill 2,404 2,343 
Other intangible assets, net 2,584 2,687 
Pension assets (Note 3)1,523 1,398 
Other assets (Note 8)2,230 2,140 
Total assets $31,735 $30,299 
LIABILITIES  
Current liabilities   
Accounts payable (principally trade) $4,308 $4,252 
Loans payable (Note 9)419 210 
Commercial paper (Note 9)1,617 2,574 
Current maturities of long-term debt (Note 9)575 573 
Accrued compensation, benefits and retirement costs 721 617 
Current portion of accrued product warranty (Note 10)751 726 
Current portion of deferred revenue (Note 2)1,017 1,004 
Other accrued expenses (Note 8)1,637 1,465 
Total current liabilities 11,045 11,421 
Long-term liabilities   
Long-term debt (Note 9)5,089 4,498 
Deferred revenue (Note 2)939 844 
Other liabilities (Note 8)3,306 3,311 
Total liabilities $20,379 $20,074 
Commitments and contingencies (Note 11)
Redeemable noncontrolling interests (Note 16)$ $258 
 
EQUITY
Cummins Inc. shareholders’ equity   
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued
$2,532 $2,243 
Retained earnings 19,102 18,037 
Treasury stock, at cost, 80.9 and 81.2 shares
(9,380)(9,415)
Accumulated other comprehensive loss (Note 12)(1,917)(1,890)
Total Cummins Inc. shareholders’ equity 10,337 8,975 
Noncontrolling interests 1,019 992 
Total equity $11,356 $9,967 
Total liabilities, redeemable noncontrolling interests and equity $31,735 $30,299 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
 June 30,
In millions20232022
CASH FLOWS FROM OPERATING ACTIVITIES  
Consolidated net income $1,543 $1,130 
Adjustments to reconcile consolidated net income to net cash provided by operating activities   
Depreciation and amortization503 328 
Deferred income taxes(132)(112)
Equity in income of investees, net of dividends (113)(62)
Pension and OPEB expense (Note 3)3 17 
Pension contributions and OPEB payments (Note 3)(103)(55)
Russian suspension costs, net of recoveries (Note 14) 111 
(Gain) loss on corporate owned life insurance (20)85 
Foreign currency remeasurement and transaction exposure (59)(10)
Changes in current assets and liabilities, net of acquisitions  
Accounts and notes receivable (635)(252)
Inventories (403)(498)
Other current assets (137)(65)
Accounts payable 65 426 
Accrued expenses 261 (281)
Changes in other liabilities 75 (11)
Other, net 130 12 
Net cash provided by operating activities 978 763 
CASH FLOWS FROM INVESTING ACTIVITIES   
Capital expenditures (414)(251)
Acquisitions of businesses, net of cash acquired (Note 16)(134)(245)
Investments in marketable securities—acquisitions (648)(433)
Investments in marketable securities—liquidations (Note 6)620 461 
Other, net (30)(108)
Net cash used in investing activities (606)(576)
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds from borrowings 737 56 
Net (payments) borrowings of commercial paper (658)392 
Payments on borrowings and finance lease obligations (228)(71)
Dividend payments on common stock (445)(411)
Repurchases of common stock  (347)
Other, net (9)(10)
Net cash used in financing activities (603)(391)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (68)74 
Net decrease in cash and cash equivalents(299)(130)
Cash and cash equivalents at beginning of year 2,101 2,592 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,802 $2,462 
 The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
(Unaudited)
 
Three months ended
In millions, except per share amountsRedeemable Noncontrolling InterestsCommon StockAdditional Paid-in CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Cummins Inc. Shareholders’ EquityNoncontrolling InterestsTotal Equity
BALANCE AT MARCH 31, 2023$261 $556 $1,674 $18,605 $(9,389)$(1,823)$9,623 $997 $10,620 
Net income (12)720 720 29 749 
Other comprehensive loss, net of tax (Note 12)(94)(94)(2)(96)
Issuance of common stock 2 2  2 
Cash dividends on common stock, $1.57 per share
(223)(223) (223)
Distributions to noncontrolling interests  (2)(2)
Share-based awards 1 7 8  8 
Fair value adjustment of redeemable noncontrolling interests22 (22)(22) (22)
Acquisition of redeemable noncontrolling interests (Note 16)(271)   
Sale of Atmus stock (Note 15)285 285 (3)282 
Other shareholder transactions 36 2 38  38 
BALANCE AT JUNE 30, 2023$ $556 $1,976 $19,102 $(9,380)$(1,917)$10,337 $1,019 $11,356 
BALANCE AT MARCH 31, 2022$392 $556 $1,497 $16,952 $(9,412)$(1,515)$8,078 $893 $8,971 
Net income(7)702 702 12 714 
Other comprehensive loss, net of tax (Note 12)(181)(181)(15)(196)
Issuance of common stock1 1 — 1 
Repurchases of common stock(36)(36)— (36)
Cash dividends on common stock, $1.45 per share
(204)(204)— (204)
Share-based awards2 8 10 — 10 
Fair value adjustment of redeemable noncontrolling interests(159)159 159 — 159 
Other shareholder transactions9 1 10 — 10 
BALANCE AT JUNE 30, 2022$226 $556 $1,668 $17,450 $(9,439)$(1,696)$8,539 $890 $9,429 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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Six months ended
In millions, except per share amountsRedeemable Noncontrolling InterestsCommon
Stock
Additional
Paid-in
Capital
Retained
Earnings
Treasury
Stock
Accumulated
Other
Comprehensive
Loss
Total
Cummins Inc.
Shareholders’
Equity
Noncontrolling
Interests
Total
Equity
BALANCE AT DECEMBER 31, 2022$258 $556 $1,687 $18,037 $(9,415)$(1,890)$8,975 $992 $9,967 
Net income (20)1,510 1,510 53 1,563 
Other comprehensive (loss) income, net of tax (Note 12)(27)(27)1 (26)
Issuance of common stock 2 2  2 
Cash dividends on common stock, $3.14 per share
(445)(445) (445)
Distributions to noncontrolling interests  (24)(24)
Share-based awards (4)32 28  28 
Fair value adjustment of redeemable noncontrolling interests33 (33)(33) (33)
Acquisition of redeemable noncontrolling interests (Note 16)(271)   
Sale of Atmus stock (Note 15)285 285 (3)282 
Other shareholder transactions 39 3 42  42 
BALANCE AT JUNE 30, 2023$ $556 $1,976 $19,102 $(9,380)$(1,917)$10,337 $1,019 $11,356 
BALANCE AT DECEMBER 31, 2021$366 $556 $1,543 $16,741 $(9,123)$(1,571)$8,146 $889 $9,035 
Net income (11)1,120 1,120 21 1,141 
Other comprehensive loss, net of tax (Note 12)(125)(125)(23)(148)
Issuance of common stock 1 1 — 1 
Repurchases of common stock(347)(347)— (347)
Cash dividends on common stock, $2.90 per share
(411)(411)— (411)
Distributions to noncontrolling interests — (14)(14)
Share-based awards (7)26 19 — 19 
Fair value adjustment of redeemable noncontrolling interests(129)129 129 — 129 
Other shareholder transactions 2 5 7 17 24 
BALANCE AT JUNE 30, 2022$226 $556 $1,668 $17,450 $(9,439)$(1,696)$8,539 $890 $9,429 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
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CUMMINS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Overview
Cummins Inc. (“Cummins,” “we,” “our” or “us”) was founded in 1919 as Cummins Engine Company, a corporation in Columbus, Indiana, and one of the first diesel engine manufacturers. In 2001, we changed our name to Cummins Inc. We are a global power leader that designs, manufactures, distributes and services diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, electric powertrains, hydrogen production and fuel cell products. We sell our products to original equipment manufacturers (OEMs), distributors, dealers and other customers worldwide. We serve our customers through a service network of approximately 460 wholly-owned, joint venture and independent distributor locations and more than 10,000 Cummins certified dealer locations in approximately 190 countries and territories.
Interim Condensed Financial Statements
The unaudited Condensed Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows. All such adjustments are of a normal recurring nature. The Condensed Consolidated Financial Statements were prepared in accordance with accounting principles in the United States of America (GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements were condensed or omitted as permitted by such rules and regulations.
These interim condensed financial statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. Our interim period financial results for the three and six month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all required annual disclosures.
Reclassifications
Certain amounts for prior year periods were reclassified to conform to the current year presentation.
Use of Estimates in Preparation of Financial Statements
Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Condensed Consolidated Financial Statements. Significant estimates and assumptions in these Condensed Consolidated Financial Statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.
Weighted-Average Diluted Shares Outstanding
The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows:
 
Three months endedSix months ended
 June 30,June 30,
 2023202220232022
Options excluded14,210 33,100 9,522 26,782 

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Related Party Transactions
In accordance with the provisions of various joint venture agreements, we may purchase products and components from our joint ventures, sell products and components to our joint ventures and our joint ventures may sell products and components to unrelated parties.
The following is a summary of sales to and purchases from nonconsolidated equity investees:
Three months ended Six months ended
 June 30,June 30,
In millions2023202220232022
Sales to nonconsolidated equity investees$320 $281 $696 $625 
Purchases from nonconsolidated equity investees687 328 1,391 755 
The following is a summary of accounts receivable from and accounts payable to nonconsolidated equity investees:
In millionsJune 30,
2023
December 31,
2022
Balance Sheet Location
Accounts receivable from nonconsolidated equity investees$466 $376 Accounts and notes receivable, net
Accounts payable to nonconsolidated equity investees332 292 Accounts payable (principally trade)
Supply Chain Financing
We currently have supply chain financing programs with financial intermediaries, which provide certain vendors the option to be paid by financial intermediaries earlier than the due date on the applicable invoice. When a vendor utilizes the program and receives an early payment from a financial intermediary, they take a discount on the invoice. We then pay the financial intermediary the face amount of the invoice on the original due date. The maximum amount that we could have outstanding under the program was $482 million at June 30, 2023. We do not reimburse vendors for any costs they incur for participation in the program, their participation is completely voluntary and there are no assets pledged as security or other forms of guarantees provided for the committed payment to the finance provider or intermediary. As a result, all amounts owed to the financial intermediaries are presented as accounts payable in our Condensed Consolidated Balance Sheets. Amounts due to the financial intermediaries reflected in accounts payable at June 30, 2023 and December 31, 2022, were $231 million and $331 million, respectively.
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Contracts
The majority of our contracts are for a period of less than one year. We have certain arrangements, primarily long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that were not satisfied as of June 30, 2023, was $730 million. We expect to recognize the related revenue of $232 million over the next 12 months and $498 million over periods up to 10 years. See NOTE 10, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties.
Deferred and Unbilled Revenue
The following is a summary of our unbilled and deferred revenue and related activity:
In millionsJune 30,
2023
December 31,
2022
Unbilled revenue$299 $257 
Deferred revenue1,956 1,848 
We recognized revenue of $178 million and $384 million for the three and six months ended June 30, 2023, compared with $176 million and $416 million for the comparable periods in 2022, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2023 or 2022.
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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.
Three months endedSix months ended
 June 30,June 30,
In millions2023202220232022
United States$4,937 $3,788 $9,739 $7,245 
China762 520 1,552 1,173 
India413 311 824 620 
Other international2,526 1,967 4,976 3,933 
Total net sales$8,638 $6,586 $17,091 $12,971 
Segment Revenue
As previously announced, our Components segment reorganized its reporting structure to carve out the electronics business into the newly formed software and electronics business and combined the turbo technologies and fuel systems businesses into the newly formed engine components business. We started reporting results for the reorganized business in the first quarter of 2023 and reflected these changes for prior periods. On May 26, 2023, with the Atmus Filtration Technologies Inc. (Atmus) initial public offering (IPO), we changed the name of our Components' filtration business to Atmus. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information.
Components segment external sales by business were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Axles and brakes$1,249 $ $2,521 $ 
Emission solutions842 767 1,781 1,575 
Atmus341 319 683 627 
Engine components283 223 575 463 
Automated transmissions180 143 358 277 
Software and electronics29 25 49 52 
Total sales$2,924 $1,477 $5,967 $2,994 
Engine segment external sales by market were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Heavy-duty truck$856 $797 $1,716 $1,481 
Medium-duty truck and bus687 620 1,304 1,211 
Light-duty automotive444 425 885 912 
Total on-highway1,987 1,842 3,905 3,604 
Off-highway276 250 610 537 
Total sales$2,263 $2,092 $4,515 $4,141 
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As previously announced, due to the indefinite suspension of operations in Russia, we reorganized the regional management structure of our Distribution segment and moved all Commonwealth of Independent States (CIS) sales into the Europe and Africa and Middle East regions. The Russian portion of prior period CIS sales moved to the Europe region. We started to report results for our new regional management structure in the first quarter of 2023 and reflected these changes for historical periods.
Distribution segment external sales by region were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
North America$1,783 $1,491 $3,476 $2,862 
Asia Pacific265 242 504 486 
Europe213 246 407 521 
China112 99 213 181 
Africa and Middle East80 61 142 111 
India63 52 120 100 
Latin America60 56 113 97 
Total sales$2,576 $2,247 $4,975 $4,358 
Distribution segment external sales by product line were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Parts$1,011 $987 $2,063 $1,913 
Power generation609 440 1,100 838 
Engines527 428 983 866 
Service429 392 829 741 
Total sales$2,576 $2,247 $4,975 $4,358 
Power Systems segment external sales by product line were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2023202220232022
Power generation$447 $408 $827 $807 
Industrial218 213 407 401 
Generator technologies129 113 239 209 
Total sales$794 $734 $1,473 $1,417 
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NOTE 3. PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit (OPEB) plans. Contributions to these plans were as follows:
Three months endedSix months ended
 June 30,June 30,
In millions2023202220232022
Defined benefit pension contributions$6 $6 $94 $39 
OPEB payments, net5 6 9 16 
Defined contribution pension plans30 20 73 56 
We anticipate making additional defined benefit pension contributions during the remainder of 2023 of $20 million for our U.S. and U.K. qualified and non-qualified pension plans. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2023 annual net periodic pension cost to be near zero.
The components of net periodic pension and OPEB expense (income) under our plans were as follows:
 Pension  
 U.S. PlansU.K. PlansOPEB
 Three months ended June 30,
In millions202320222023202220232022
Service cost$29 $34 $4 $8 $ $ 
Interest cost42 22 18 9 2 1 
Expected return on plan assets(69)(52)(27)(20)  
Amortization of prior service cost1      
Recognized net actuarial loss2 6  —   
Net periodic benefit expense (income)$5 $10 $(5)$(3)$2 $1 
 Pension
 U.S. PlansU.K. PlansOPEB
 Six months ended June 30,
In millions202320222023202220232022
Service cost$58 $68 $8 $16 $ $ 
Interest cost84 44 35 18 4 2 
Expected return on plan assets(138)(104)(52)(40)  
Amortization of prior service cost1      
Recognized net actuarial loss (gain)4 12  1 (1) 
Net periodic benefit expense (income)$