Cummins Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)

3 Months Ended

Apr. 01, 2012

Financial information regarding reportable operating segments

In millions	Engine		Components		Power Generation		Distribution		Non-segment Items(1)			Total
Three months ended April 1, 2012
External sales	$	2,412	$	774	$	516	$	770	$	—		$	4,472
Intersegment sales	447		325		264		5		(1,041		)	—
Total sales	2,859		1,099		780		775		(1,041		)	4,472
Depreciation and amortization(2)	47		19		11		7		—			84
Research, development and engineering expenses	111		51		18		1		—			181
Equity, royalty and interest income from investees	38		8		10		48		—			104
Interest income	4		1		2		1		—			8
Segment EBIT	381		143		76		94		(36		)	658

Three months ended March 27, 2011
External sales	$	2,006	$	660	$	557	$	637	$	—		$	3,860
Intersegment sales	385		264		238		5		(892		)	—
Total sales	2,391		924		795		642		(892		)	3,860
Depreciation and amortization(2)	45		18		10		6		—			79
Research, development and engineering expenses	80		37		11		1		—			129
Equity, royalty and interest income from investees	42		8		8		38		—			96
Interest income	3		1		1		1		—			6
Segment EBIT	290		105		89		89		(41		)	532

(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 April 1, 2012, and March 27, 2011.

(2) Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as “Interest expense.”

Reconciliation of segment information

	Three months ended
In millions	April 1, 2012		March 27, 2011
Segment EBIT	$	658	$	532
Less
Interest expense	8		10
Income before income taxes	$	650	$	522

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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