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

Mar. 30, 2014

Financial information regarding reportable operating segments

Summarized financial information regarding our reportable operating segments for the three month periods is shown in the table below:



In millions	Engine		Components		Power Generation		Distribution			Non-segment Items ⁽¹⁾			Total
Three months ended March 30, 2014
External sales	$	2,090	$	922	$	452	$	942		$	—		$	4,406
Intersegment sales	473		308		187		8			(976		)	—
Total sales	2,563		1,230		639		950			(976		)	4,406
Depreciation and amortization⁽²⁾	51		26		12		16			—			105
Research, development and engineering expenses	116		53		19		2			—			190
Equity, royalty and interest income from investees	32		9		8		41			—			90
Interest income	2		1		1		1			—			5
Segment EBIT	269		167		25		76		⁽³⁾	(9		)	528

Three months ended March 31, 2013
External sales	$	1,885	$	722	$	539	$	776		$	—		$	3,922
Intersegment sales	418		296		207		2			(923		)	—
Total sales	2,303		1,018		746		778			(923		)	3,922
Depreciation and amortization⁽²⁾	52		24		12		10			—			98
Research, development and engineering expenses	105		57		18		2			—			182
Equity, royalty and interest income from investees	23		7		7		45			—			82
Interest income	2		1		2		—			—			5
Segment EBIT	195		119		51		95		⁽³⁾	(23		)	437

_________________________________________________________________

⁽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 March 30, 2014 and March 31, 2013.

⁽²⁾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 Income as "Interest expense."

⁽³⁾Distribution segment EBIT for the three months ended March 30, 2014, included a $6 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Mid-South. Distribution segment EBIT for the three months ended March 31, 2013, included a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Northwest.

Reconciliation of segment information

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
In millions	March 30, 2014		March 31, 2013
Total EBIT	$	528	$	437
Less: Interest expense	17		6
Income before income taxes	$	511	$	431

- 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.

+ References + Details