Exhibit 99

Contact:

Mark Land

Executive Director - Corporate Communications

(317) 610-2456

mark.d.land@cummins.com

February 1, 2011

Cummins reports best year in Company history in 2010; expects to earn 13.5 percent EBIT on $16 billion in sales in 2011

COLUMBUS, IND – Cummins Inc. (NYSE: CMI) today reported record profits for all of 2010, as well as record quarterly sales and profits for the fourth quarter, on the strength of significant growth in key international markets and improved productivity in its global manufacturing operations.

Fourth quarter sales were $4.14 billion, up 22 percent from $3.40 billion during the same period in 2009. Earnings Before Interest and taxes (EBIT) were $541 million, or 13.1 percent of sales, a 41 percent increase from $383 million, or 11.3 percent of sales. The fourth quarter 2009 results include a pre-tax charge of $4 million to cover the costs associated with restructuring.

Net income attributable to Cummins Inc. was $362 million ($1.84 per share) compared to $270 million ($1.36 per share) in the fourth quarter 2009.

For the fourth quarter, the Engine, Components and Distribution segments all reported record sales and segment EBIT. The Power Generation segment, which was affected by the recession later than the Company’s other business segments, continued to rebound and reported strongly higher sales and segment EBIT than during the same period in 2009.

For the full year, sales were $13.23 billion, up 22 percent from $10.80 billion in 2009. EBIT of $1.66 billion, or 12.5 percent of sales, increased 114 percent from $774 million, or 7.2 percent of sales excluding restructuring and other charges, in 2009.

Net income attributable to Cummins Inc. was $1.04 billion ($5.28 per share) from $428 million ($2.16 per share) in 2009. Results for 2009 included restructuring and other charges of $0.33 per share.

Full-year 2010 sales were second only to 2008, while EBIT and net income attributable to Cummins Inc. were Company records. Three of the Company’s four business segments – Engine, Components and Distribution – reported full-year record earnings, while Power Generation also posted strong sales and profit gains from the previous year.

The Company’s strong performance in 2010 came despite a significant decline in its important North American truck engine markets, which were affected by the continued weakness in the U.S. economy and a change in emissions standards. Engine shipments to the North American heavy-duty truck market fell 61 percent and 44 percent to the North American medium-duty truck and bus markets.

Those decreases were more than offset by growth in international markets, particularly China, India and Brazil, and the Company continues to benefit from actions taken over the past two years to improve the productivity of its manufacturing operations around the world.

Sales in China and Brazil increased by more than 70 percent, while sales in India rose 37 percent for the year. Cummins’ total international sales increased by 48 percent from 2009 and accounted for 64 percent of the Company’s total sales in 2010.

“2010 was the best year in the Company’s history,” said Chairman and Chief Executive Officer Tim Solso. “The fact that we were able to achieve record profitability in the face of a sharp decline in large North American on-highway markets speaks to the global strength of our business and the work we did to keep the Company strong during the recession.

“Given our strong balance sheet, the expected recovery of our North American markets and the global growth opportunities in front of us, we are forecasting further significant growth in 2011 and beyond.”

Based on its current forecasts, Cummins expects sales to grow to $16 billion in 2011 and EBIT to be 13.5 percent of sales.

The Company is forecasting sales to grow by 25 percent in its Engine and Components segments in 2011, led by recovery in the North American truck markets. The Company expects sales to increase by 15 percent in both its Power Generation and Distribution segments, driven by improving markets in North America and continued strength in key international markets.

In addition to the expected economic recovery in North America, the Company also is forecasting further strong growth in China, India and Brazil as well as in other parts of the world, including Mexico, the Middle East and Europe.

The Company expects to invest $600-$650 million in capital expenditures in its consolidated operations. In addition, the Company expects its joint ventures to make $300 million worth of capital investments in their operations to expand their businesses.

“We have significant growth opportunities in markets around the world, and we are well positioned to take advantage of those opportunities,” said President and Chief Operating Officer Tom Linebarger. “In particular, we expect a significant recovery in the North American truck markets this year, where our new engines are performing very well.

“We shipped 62,000 engines to the North American truck markets in 2010 equipped with Selective Catalytic Reduction systems, which have allowed us to meet the stringent EPA emission standards and provide improved fuel economy to our customers.”

In other recent highlights:

In mid-January, Cummins dedicated its new “megasite” facility in Phaltan, India. The site will allow Cummins to significantly expand production capacity for engines, components and generators, and eventually use India as a base for exports to Asia, the Middle East and Africa. The Company plans to invest $300 million in the 300-acre campus over the next several years.
Cummins finished 2010 as one of the top performing stocks in the Standard & Poor’s 500 index. Cummins’ stock price appreciated by nearly 140 percent in 2010 and the Company further returned value to shareholders by increasing its dividend by 50 percent in the third quarter of 2010.

Fourth quarter details (all comparisons to same period in 2009)

Engine Segment
●	Sales - $2.5 billion, up 15 percent
●	Segment EBIT – $256 million, or 10.3 percent of sales, compared to $211 million or 9.7 percent of sales.
●	Total on-highway engine sales decreased 18 percent
	○	Medium-duty truck engine sales increased 11 percent on strength of Brazilian truck market; North American medium-duty truck engine sales declined 42 percent.
	○	Light-duty auto sales increased 1 percent.
	○	Global heavy-duty truck engine sales declined 45 percent as result of continued weakness in North America.
●	Industrial sales increased 89 percent
	○	Worldwide construction sales rose 138 percent, led by market recovery in North America and continued infrastructure investment in China, India and Brazil.
	○	Mining sales rose 163 percent
	○	Agriculture market sales increased 87 percent
●	Stationary power engine sales increased by 86 percent, primarily due to increased power generation demand, especially for high horsepower engines.

Power Generation
●	Sales – $903 million, up 50 percent
●	Segment EBIT – $92 million, or 10.2 percent of sales, compared to $34 million or 5.7 percent of sales.
●	Commercial Products sales rose 59 percent; Commercial Projects up 66 percent; Consumer sales increased 15 percent; Generator Technologies rose 42 percent; and Power Electronics increased 8 percent.
●	Segment continues to recover from low point of economic cycle in Q3 2009 as sales increased in most geographic markets.

Components
●	Sales – $918 million up 25 percent
●	Segment EBIT – $83 million, or 9.0 percent of sales, compared to $73 million, or 10.0 percent of sales
●	Emission Solutions sales increased by 70 percent; Filtration up 18 percent; Turbo Technologies rose 17 percent; Fuel Systems decreased 2 percent.

●	Increased aftertreatment content on 2010 North American truck engines led Emission Solutions sales gains; Filtration sales benefited from strong increase in aftermarket sales; Turbo Technologies led by gains in China, India and Europe.

Distribution
●	Sales – $699 million, an increase of 44 percent
●	Segment EBIT – $82 million, or 11.7 percent of sales, compared to $67 million, or 13.8 percent of sales
●	Consolidation of Western Canada and the Cummins Northeast distributors accounted for $102 million in sales during quarter.
●	Sales increased in all product/service segments (engines, power generation, parts, and service), led by strong gains for engines and power generation in Western Europe.

Presentation of Non-GAAP Financial Information

EBIT 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 EBIT 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.

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins employs approximately 40,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,000 dealer locations. Cummins earned $1.0 billion on sales of $13.2 billion in 2010. Press releases can be found on the Web at www.cummins.com.

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 the company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company’s 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, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.

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

		Three months ended
		December 31,		September 26,		December 31,
In millions, except per share amounts		2010		2010		2009
NET SALES		$	4,139	$	3,401	$	3,400
Cost of sales			3,155		2,571		2,627
GROSS MARGIN			984		830		773

OPERATING EXPENSES AND INCOME
	Selling, general and administrative expenses		423		375		348
	Research, development and engineering expenses		123		103		108
	Equity, royalty and interest income from investees (Note 1)		90		88		67
	Restructuring and other charges		-		-		4
	Other operating (expense) income, net		(3)		(5)		5
OPERATING INCOME			525		435		385

Interest income			7		6		3
Interest expense			11		11		9
Other income (expense), net (Note 2)			9		8		(5)
INCOME BEFORE INCOME TAXES			530		438		374

Income tax expense (Note 3)			139		129		84
CONSOLIDATED NET INCOME			391		309		290

Less: Net income attributable to noncontrolling interests			29		26		20
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$	362	$	283	$	270

EARNINGS PER COMMON SHARE ATTRIBUTABLE
	TO CUMMINS INC.
	Basic	$	1.85	$	1.45	$	1.36
	Diluted	$	1.84	$	1.44	$	1.36

WEIGHTED AVERAGE SHARES OUTSANDING
	Basic		195.8		195.8		198.4
	Diluted		196.4		196.3		198.7

CASH DIVIDENDS DECLARED PER COMMON SHARE		$	0.2625	$	0.2625	$	0.175

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

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

		For the years ended
		December 31,		December 31,
In millions, except per share amounts		2010		2009
NET SALES		$	13,226		10,800
Cost of sales			10,058		8,631
GROSS MARGIN			3,168		2,169

OPERATING EXPENSES AND INCOME
	Selling, general and administrative expenses		1,487		1,239
	Research, development and engineering expenses		414		362
	Equity, royalty and interest income from investees (Note 1)		351		214
	Restructuring and other charges		-		99
	Other operating (expense) income, net		(16)		(1)
OPERATING INCOME			1,602		682

Interest income			21		8
Interest expense			40		35
Other income (expense), net (Note 2)			34		(15)
INCOME BEFORE INCOME TAXES			1,617		640

Income tax expense (Note 3)			477		156
CONSOLIDATED NET INCOME			1,140		484

Less: Net income attributable to noncontrolling interests			100		56
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$	1,040	$	428

EARNINGS PER COMMON SHARE ATTRIBUTABLE
	TO CUMMINS INC.
	Basic	$	5.29	$	2.17
	Diluted	$	5.28	$	2.16

WEIGHTED AVERAGE SHARES OUTSTANDING
	Basic		196.7		197.4
	Diluted		197.1		197.7

CASH DIVIDENDS DECLARED PER COMMON SHARE		$	0.875	$	0.70

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

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

					December 31,		December 31,
In millions, except par value					2010		2009
ASSETS
Current assets
	Cash and cash equivalents				$	1,023	$	930
	Marketable securities					339		190
	Accounts and notes receivable, net					2,243		2,004
	Inventories					1,977		1,341
	Prepaid expenses and other current assets					707		538
		Total current assets				6,289		5,003
Long-term assets
	Property, plant and equipment, net					2,041		1,886
	Investments and advances related to equity method investees					734		574
	Goodwill and other intangibles, net					589		592
	Other assets					749		761
		Total assets			$	10,402	$	8,816

LIABILITIES
Current liabilities
	Loans payable				$	82	$	37
	Accounts payable (principally trade)					1,362		957
	Accrued expenses					1,816		1,438
		Total current liabilities				3,260		2,432
Long-term liabilities
	Long-term debt					709		637
	Other liabilities					1,437		1,727
		Total liabilities				5,406		4,796

EQUITY
	Cummins Inc. shareholders’ equity
		Common stock, $2.50 par value, 500 shares authorized, 221.8 and 222.0 shares issued				1,934		1,860
		Retained earnings				4,445		3,575
		Treasury stock, at cost, 24.0 and 20.7 shares				(964)		(731)
		Common stock held by employee benefits trust, at cost, 2.1 and 3.0 shares				(25)		(36)
		Accumulated other comprehensive loss				(720)		(895)
			Total Cummins Inc. shareholders’ equity			4,670		3,773
	Noncontrolling interests					326		247
				Total equity		4,996		4,020
Total liabilities and equity					$	10,402	$	8,816

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

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

		For the years ended
		December 31,		December 31,
In millions		2010		2009
NET CASH PROVIDED BY OPERATING ACTIVITIES (Note 4)		$	1,006	$	1,137

CASH FLOWS FROM INVESTING ACTIVITIES
	Capital expenditures		(364)		(310)
	Investments in internal use software		(43)		(35)
	Proceeds from disposals of property, plant and equipment		55		10
	Investments in and advances to equity investees		(2)		(3)
	Acquisition of businesses, net of cash acquired		(104)		(2)
	Investments in marketable securities-acquisitions		(823)		(431)
	Investments in marketable securities-liquidations		690		335
	Purchases of other investments		(62)		(62)
	Cash flows from derivatives not designated as hedges		2		(18)
	Other, net		-		7
Net cash used in investing activities			(651)		(509)

CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from borrowings		214		76
	Payments on borrowings and capital lease obligations		(143)		(97)
	Net borrowings (payments) under short-term credit agreements		9		(2)
	Distributions to noncontrolling interests		(28)		(34)
	Dividend payments on common stock		(172)		(141)
	Proceeds from sale of common stock held by employee benefit trust		58		72
	Repurchases of common stock		(241)		(20)
	Other, net		36		5
Net cash used in financing activities			(267)		(141)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			5		17
Net increase in cash and cash equivalents			93		504
Cash and cash equivalents at beginning of year			930		426
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	1,023	$	930

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

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

In millions		Engine		Power Generation		Components		Distribution		Non-segment Items⁽¹⁾		Total

Three months ended December 31, 2010
External sales		$	2,099	$	690	$	656	$	694	$	-	$	4,139
Intersegment sales			398		213		262		5		(878)		-
Total sales			2,497		903		918		699		(878)		4,139
Depreciation and amortization⁽²⁾			46		10		18		6		-		80
Research, development and engineering expenses			76		13		33		1		-		123
Equity, royalty and interest income from investees			37		8		6		39		-		90
Interest income			5		1		1		-		-		7
Segment EBIT			256		92		83		82		28		541

Three months ended September 26, 2010
External sales		$	1,727	$	564	$	540	$	570	$	-	$	3,401
Intersegment sales			342		227		229		3		(801)		-
	Total sales		2,069		791		769		573		(801)		3,401
Depreciation and amortization⁽²⁾			42		10		20		5		-		77
Research, development and engineering expenses			65		8		30		-		-		103
Equity, royalty and interest income from investees			37		12		6		33		-		88
Interest income			3		2		-		1		-		6
Segment EBIT			223		97		63		74		(8)		449

Three months ended December 31, 2009
External sales		$	1,974	$	477	$	466	$	483	$	-	$	3,400
Intersegment sales			194		124		266		3		(587)		-
	Total sales		2,168		601		732		486		(587)		3,400
Depreciation and amortization⁽²⁾			50		14		20		3		-		87
Research, development and engineering expenses			73		8		27		-		-		108
Equity, royalty and interest income from investees			24		6		4		33		-		67
Restructuring and other charges			-		-		-		-		4		4
Interest income			1		2		-		-		-		3
Segment EBIT			211		34		73		67		(2)		383

For the year ended December 31, 2010
External sales		$	6,594	$	2,150	$	2,171	$	2,311	$	-	$	13,226
Intersegment sales			1,294		769		875		13		(2,951)		-
	Total sales		7,888		2,919		3,046		2,324		(2,951)		13,226
Depreciation and amortization⁽²⁾			171		41		79		25		-		316
Research, development and engineering expenses			263		36		114		1		-		414
Equity, royalty and interest income from investees			161		35		23		132		-		351
Interest income			12		5		2		2		-		21
Segment EBIT			809		299		278		297		(26)		1,657

For the year ended December 31, 2009
External sales		$	5,582	$	1,879	$	1,562	$	1,777	$	-	$	10,800
Intersegment sales			823		538		793		7		(2,161)		-
	Total sales		6,405		2,417		2,355		1,784		(2,161)		10,800
Depreciation and amortization⁽²⁾			185		49		73		17		-		324
Research, development and engineering expenses			241		33		88		-		-		362
Equity, royalty and interest income from investees			54		22		13		125		-		214
Restructuring and other charges			-		-		-		-		99		99
Interest income			3		3		1		1		-		8
Segment EBIT			252		167		95		235		(74)		675

(1)		Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. For the three months ended December 31, 2010, there were no unallocated corporate expenses. For the three months ended September 26, 2010 and the year ended December 31, 2010 unallocated corporate expenses included $32 million in Brazil tax recoveries ($21 million after-tax) and $2 million in flood damage expenses. This tax recovery has been excluded from segment results as it was not considered by management in its evaluation of operating results for the three months ended September 26, 2010 or the year ended December 31, 2010. For the three months and the year ended December 31, 2009, unallocated corporate expenses included $4 million and $99 million of restructuring and other charges and gains of $7 million and $12 million related to flood damages, respectively.
(2)	Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Consolidated Statements of Income as “interest expense.”

CUMMINS INC. AND SUBSIDIARIES

RECONCILIATION OF 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						For the years ended
		December 31,		September 26,		December 31,		December 31,		December 31,
In millions		2010		2010		2009		2010		2009
Segment EBIT		$	541	$	449	$	383	$	1,657	$	675
Less:
	Interest expense		11		11		9		40		35
Income before income taxes		$	530	$	438	$	374	$	1,617	$	640

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

Earnings before interest, taxes, noncontrolling interests and restructuring and other charges

We define EBIT as earnings or loss before interest expense, income tax expense, noncontrolling interests in income of consolidated subsidiaries and restructuring and other charges (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. Below is a reconciliation of EBIT, a non-GAAP financial measure, to “Net income attributable to Cummins Inc.,” for each of the applicable periods:

		Three months ended						For the years ended
		December 31,		September 26,		December 31,		December 31,		December 31,
In millions		2010		2010		2009		2010		2009
Earnings before interest expense, income taxes and
	restructuring and other charges	$	541	$	449	$	387	$	1,657	$	774

Earnings before interest expense, income taxes and restructuring
	and other charges as a percentage of net sales		*13.1%*		13.2%		11.4%		*12.5%*		7.2%

Less:
	Restructuring and other charges		-		-		4		-		99

Earnings before interest and income taxes		$	541	$	449	$	383	$	1,657	$	675

EBIT as a percentage of net sales			*13.1%*		13.2%		11.3%		*12.5%*		6.3%

Less:
	Interest expense		11		11		9		40		35
	Income tax expense		139		129		84		477		156
Consolidated net income			391		309		290		1,140		484

Less:
	Net income attributable to noncontrolling interests		29		26		20		100		56
Net income attributable to Cummins Inc.		$	362	$	283	$	270	$	1,040	$	428

Net income attributable to Cummins Inc. as a percentage of
	net sales		*8.7%*		8.3%		7.9%		*7.9%*		4.0%

CUMMINS INC. AND SUBSIDIARIES

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding restructuring and other charges

We believe this is a useful measure of our operating performance for the period presented as it illustrates our operating performance without regard to restructuring. 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. The following table reconciles net income attributable to Cummins Inc. excluding restructuring and other charges to net income attributable to Cummins Inc. for the three months and the year ended December 31, 2009.

	Three months ended				Year ended
	December 31, 2009				December 31, 2009
In millions	Net Income		Diluted EPS		Net Income		Diluted EPS
Net income attributable to Cummins Inc. excluding restructuring and other charges	$	272	$	1.37	$	493	$	2.49
Less:
Restructuring and other charges, net⁽¹⁾	2		0.01		65		0.33
Net income attributable to Cummins Inc.	$	270	$	1.36	$	428	$	2.16
⁽¹⁾ During the three months ended December 31, 2009, management approved and committed to undertake restructuring actions. These actions resulted in pretax restructuring and other charges of $4 million. For the year ended December 31, 2009, the total pretax restructuring and other charges were $99 million. These charges included employee-related liabilities for severance and benefits, exit costs and pension and other postretirement benefit curtailment charges.

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 interim reporting periods was as follows:

		Three months ended						For the years ended
		December 31,		September 26,		December 31,		December 31,		December 31,
In millions		2010		2010		2009		2010		2009
Distribution Entities
North American distributors		$	29	$	26	$	26	$	101	$	100
Komatsu Cummins Chile, Ltda			5		4		3		16		12
All other distributors			1		1		1		3		3

Manufacturing Entities
Dongfeng Cummins Engine Company, Ltd.			23		24		15		99		33
Chongqing Cummins Engine Company, Ltd.			11		12		8		46		36
Tata Cummins, Ltd.			3		4		3		14		5
Shanghai Fleetguard Filter Co., Ltd.			3		3		2		12		7
Komatsu manufacturing alliances			4		2		-		11		(2)
Cummins Westport, Inc			3		2		1		10		3
Valvoline Cummins, Ltd.			1		2		2		8		7
Cummins MerCruiser Diesel Marine, LLC			(2)		(1)		(5)		(3)		(10)
Beijing Foton Cummins Engine Co., Ltd.			(4)		(6)		-		(16)		(5)
All other manufacturers			5		8		4		20		7
	Cummins share of net income		82		81		60		321		196
Royalty and interest income			8		7		7		30		18
Equity, royalty and interest income from investees		$	90	$	88	$	67	$	351	$	214

NOTE 2. OTHER INCOME (EXPENSE)

Other income (expense) included the following:

	Three months ended						For the years ended
	December 31,		September 26,		December 31,		December 31,		December 31,
In millions	2010		2010		2009		2010		2009
Change in cash surrender value of corporate owned life insurance	$	1	$	11	$	(5)	$	12	$	(4)
Gain on acquisition of Cummins Western Canada (CWC)		-		-		-		12		-
Dividend income		2		2		2		7		5
Life insurance proceeds		7		-		-		7		-
Foreign currency losses, net		(5)		(5)		(2)		(1)		(20)
Bank charges		(4)		(4)		(4)		(15)		(14)
Other, net		8		4		4		12		18
	$	9	$	8	$	(5)	$	34	$	(15)

NOTE 3. INCOME TAXES

Our income tax rates are generally less than the 35 percent U.S. income tax rate primarily because of lower taxes on foreign earnings and research tax credits. Our effective tax rate for the fourth quarter and full year of 2010 was 26.2 percent and 29.5 percent, respectively. Our income tax provision for the fourth quarter includes benefits totaling $17 million related to the legislative reinstatement of the U.S. research tax credit. Our effective tax rate for the fourth quarter and full year of 2009 was 22.5 percent and 24.4 percent, respectively. In 2009, we released $19 million of deferred tax liabilities on foreign earnings now considered to be permanently reinvested outside of the United States and recorded a deferred tax asset of $10 million related to prior period matters.

We expect our 2011 effective tax rate to be 30 percent excluding any discrete items that may arise.

NOTE 4. DEPRECIATION AND AMORTIZATION

Depreciation and amortization expense included in operating activities of the Condensed Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009, was $320 million and $326 million, respectively.