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. 29, 2015

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		Distribution			Components		Power Generation		Non-segment Items ⁽¹⁾			Total
Three months ended March 29, 2015
External sales	$	1,889	$	1,469		$	931	$	420	$	—		$	4,709
Intersegment sales	707		7			368		260		(1,342		)	—
Total sales	2,596		1,476			1,299		680		(1,342		)	4,709
Depreciation and amortization⁽²⁾	58		27			26		16		—			127
Research, development and engineering expenses	114		3			61		17		—			195
Equity, royalty and interest income from investees	30		20			9		9		—			68
Interest income	2		1			1		1		—			5
Segment EBIT	253		88			195		49		(23		)	562

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

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⁽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 29, 2015 and March 30, 2014.

⁽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." The amortization of debt discount and deferred costs were $1 million and less than $1 million for the three months ended March 29, 2015 and March 30, 2014, respectively.

⁽³⁾Distribution segment EBIT included a gain of $6 million on the fair value adjustment resulting from the acquisition of a controlling interest in a North American distributor for the three months ended March 30, 2014.

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 29, 2015		March 30, 2014
Total EBIT	$	562	$	528
Less: Interest expense	14		17
Income before income taxes	$	548	$	511

- 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