Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v2.4.0.6
OPERATING SEGMENTS (Tables)
3 Months Ended
Mar. 31, 2013
OPERATING SEGMENTS  
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