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

Quarterly report pursuant to Section 13 or 15(d)

LEASES FOOTNOTE DISCLOSURE (Tables)

LEASES FOOTNOTE DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2019

The components of our lease expense were as follows:



	Three months ended		Six months ended
In millions	June 30, 2019		June 30, 2019
Operating lease cost	$	54	$	104
Finance lease cost
Amortization of right-of-use asset	4		9
Interest expense	3		6
Short-term lease cost	1		2
Variable lease cost	1		2
Total lease cost	$	63	$	123

Schedule Of Supplemental Balance Sheet Information Related To Leases Table



	Three months ended		Six months ended
In millions	June 30, 2019		June 30, 2019
Operating lease cost	$	54	$	104
Finance lease cost
Amortization of right-of-use asset	4		9
Interest expense	3		6
Short-term lease cost	1		2
Variable lease cost	1		2
Total lease cost	$	63	$	123

Supplemental balance sheet information related to leases:



In millions	June 30, 2019		Balance Sheet Location
Assets
Operating lease assets	$	434	Other assets
Finance lease assets⁽¹⁾	128		Property, plant and equipment, net
Total lease assets	$	562

Liabilities
Current
Operating	$	125	Other accrued expenses
Finance	12		Current maturities of long-term debt
Long-term
Operating	321		Other liabilities
Finance	113		Long-term debt
Total lease liabilities	$	571

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⁽¹⁾ Finance lease assets are recorded net of accumulated amortization of $61 million at June 30, 2019

Schedule Of Supplemental Cash Flow Information Related To Leases Table

Supplemental cash flow and other information related to leases:



	Three months ended		Six months ended
In millions	June 30, 2019		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	41	$	77
Operating cash flows from finance leases	3		5
Financing cash flows from finance leases	3		7

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	60		78
Finance leases	5		6

Schedule Of Supplemental Other Information Related To Leases Table

Additional information related to leases:



	June 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	5.2
Finance leases	14.2

Weighted-average discount rate
Operating leases	3.4	%
Finance leases	4.2	%

Lessee, Operating Lease, Liability, Maturity

Following is a summary of the future minimum lease payments due to finance and operating leases with terms of more than one year at June 30, 2019, together with the net present value of the minimum payments due to finance leases:



In millions	Finance Leases			Operating Leases
2019	$	10		$	73
2020	19			121
2021	16			93
2022	15			69
2023	14			45
After 2023	144			96
Total minimum lease payments	$	218		$	497
Interest	(93		)	(51		)
Present value of net minimum lease payments	$	125		$	446

Schedule of Future Minimum Rental Payments for Operating Leases Prior to Adoption of New Standard[Table Text Block]

Following is a summary of the future minimum lease payments due to capital and operating leases with terms of more than one year at December 31, 2018, together with the net present value of the minimum payments due to capital leases under the previous lease standard:



In millions	Capital Leases			Operating Leases
2019	$	30		$	138
2020	21			109
2021	16			81
2022	14			60
2023	13			39
After 2023	144			81
Total minimum lease payments	$	238		$	508
Interest	(106		)
Present value of net minimum lease payments	$	132