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)

9 Months Ended

Sep. 29, 2013

Financial information regarding reportable operating segments

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



In millions	Engine		Components		Power Generation		Distribution			Non-segment Items ⁽¹⁾			Total
Three months ended September 29, 2013
External sales	$	2,045	$	784	$	499	$	938		$	—		$	4,266
Intersegment sales	447		288		213		6			(954		)	—
Total sales	2,492		1,072		712		944			(954		)	4,266
Depreciation and amortization⁽²⁾	53		24		13		15			—			105
Research, development and engineering expenses	103		51		18		1			—			173
Equity, royalty and interest income from investees	31		5		13		42			—			91
Interest income	4		1		1		—			—			6
Segment EBIT	272		132		45		86			1			536

Three months ended September 30, 2012
External sales	$	2,131	$	663	$	526	$	798		$	—		$	4,118
Intersegment sales	396		275		288		3			(962		)	—
Total sales	2,527		938		814		801			(962		)	4,118
Depreciation and amortization⁽²⁾	48		21		12		8			—			89
Research, development and engineering expenses	115		51		19		1			—			186
Equity, royalty and interest income from investees	25		7		12		50			—			94
Interest income	2		1		2		—			—			5
Segment EBIT	239		89		73		99		⁽³⁾	(4		)	496

Nine months ended September 29, 2013
External sales	$	6,139	$	2,292	$	1,621	$	2,661		$	—		$	12,713
Intersegment sales	1,312		915		651		15			(2,893		)	—
Total sales	7,451		3,207		2,272		2,676			(2,893		)	12,713
Depreciation and amortization⁽²⁾	156		71		37		40			—			304
Research, development and engineering expenses	310		165		53		4			—			532
Equity, royalty and interest income from investees	106		21		30		124			—			281
Interest income	13		2		5		1			—			21
Segment EBIT	806		387		172		281		⁽³⁾	(52		)	1,594

Nine months ended September 30, 2012
External sales	$	6,924	$	2,147	$	1,614	$	2,357		$	—		$	13,042
Intersegment sales	1,303		926		889		13			(3,131		)	—
Total sales	8,227		3,073		2,503		2,370			(3,131		)	13,042
Depreciation and amortization⁽²⁾	142		59		34		23			—			258
Research, development and engineering expenses	341		153		56		4			—			554
Equity, royalty and interest income from investees	100		23		32		147			—			302
Interest income	9		3		7		1			—			20
Segment EBIT	996		348		243		285		⁽³⁾	(49		)	1,823

_________________________________________________________________

⁽¹⁾Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. The three and nine months ended September 30, 2012, included a $6 million gain ($4 million after-tax) related to adjustments from our 2011 divestitures. The gain has been excluded from segment results as it was not considered in our evaluation of operating results for the corresponding periods. There were no other significant unallocated corporate expenses for the three and nine months ended September 29, 2013 and September 30, 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 for the nine months ended September 29, 2013, included a $7 million gain and $5 million gain on the fair value adjustment resulting from the acquisitions of a controlling interest in Northwest and Rocky Mountain, respectively. Distribution segment EBIT for the three and nine months ended September 30, 2012, included a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Central Power.

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				Nine months ended
In millions	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Total EBIT	$	536	$	496	$	1,594	$	1,823
Less: Interest expense	8		9		22		25
Income before income taxes	$	528	$	487	$	1,572	$	1,798

- 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