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. 31, 2013

Financial information regarding reportable operating segments

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

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

(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 31, 2013, and April 1, 2012.

(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.”

(3) Distribution segment EBIT includes a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Northwest.

Reconciliation of segment information

	Three months ended
In millions	March 31, 2013		April 1, 2012
Segment EBIT	$	437	$	658
Less: Interest expense	6		8
Income before income taxes	$	431	$	650

- 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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