Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Tables)

v3.21.1
OPERATING SEGMENTS (Tables)
 3 Months Ended
Apr. 04, 2021
Segment Reporting [Abstract]  
Financial information regarding reportable operating segments
Summarized financial information regarding our reportable operating segments for the three months ended is shown in the table below:
In millions Engine Distribution Components Power Systems New Power Total Segments
Intersegment Eliminations (1)
Total
Three months ended April 4, 2021        
Segment sales $ 2,459  $ 1,835  $ 2,152  $ 1,022  $ 35  $ 7,503  $ (1,411) $ 6,092 
Less: Intersegment sales 564  8  428  410  1  1,411  (1,411) — 
External sales 1,895  1,827  1,724  612  34  6,092  —  6,092 
Research, development and engineering expenses 92  13  75  57  23  260  —  260 
Equity, royalty and interest income from investees 113  17  19  12  5  166  —  166 
Interest income 3  1  1  1  —  6  —  6 
EBITDA 354  160  421  126  (51) 1,010  (30) 980 
Depreciation and amortization (2)
51  30  48  35  5  169  —  169 
Three months ended March 29, 2020          
Segment sales $ 2,158  $ 1,814  $ 1,502  $ 884  $ 10  $ 6,368  $ (1,357) $ 5,011 
Less: Intersegment sales 579  7  387  384  —  1,357  (1,357) — 
External sales 1,579  1,807  1,115  500  10  5,011  —  5,011 
Research, development and engineering expenses 80  7  68  54  29  238  —  238 
Equity, royalty and interest income from investees 78  21  21  9  —  129  —  129 
Interest income 4  1  1  1  —  7  —  7 
EBITDA 365  158  279  77  (43) 836  10  846 
Depreciation and amortization (2)
53  31  48  32  4  168  —  168 
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended April 4, 2021 and March 29, 2020.
(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 Net Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million and less than $1 million for the three months ended April 4, 2021 and March 29, 2020, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
Reconciliation of segment information
A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:
  Three months ended
In millions April 4,
2021		 March 29,
2020
TOTAL SEGMENT EBITDA $ 1,010  $ 836 
Add:
Intersegment elimination (30) 10 
TOTAL EBITDA 980  846 
Less:
Interest expense 28  23 
Depreciation and amortization 169  168 
INCOME BEFORE INCOME TAXES 783  655 
Less: Income tax expense 172  127 
CONSOLIDATED NET INCOME 611  528 
Less: Net income attributable to noncontrolling interests 8  17 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 603  $ 511