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Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

cumminsca06.jpg
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended October 1, 2017
 
Commission File Number 1-4949 
CUMMINS INC.
(Exact name of registrant as specified in its charter)
Indiana
(State of Incorporation)
 
35-0257090
 (IRS Employer Identification No.)
500 Jackson Street
Box 3005
Columbus, Indiana 47202-3005
(Address of principal executive offices)
 
Telephone (812) 377-5000
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit and post such files).  Yes x  No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.  (Check one):
Large accelerated filer x
 
Accelerated filer o
 
Non-accelerated filer o
Smaller reporting company o
 
Emerging growth company o
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o   No x
 
As of October 1, 2017, there were 165,967,528 shares of common stock outstanding with a par value of $2.50 per share.
 
Website Access to Company’s Reports
 
Cummins maintains an internet website at www.cummins.com.  Investors can obtain copies of our filings from this website free of charge as soon as reasonably practicable after they are electronically filed with, or furnished, to the Securities and Exchange Commission. Cummins is not including the information provided on the website as part of, or incorporating such information by reference into, this Quarterly Report on Form 10-Q.
 


Table of Contents

CUMMINS INC. AND SUBSIDIARIES
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
 
 
 
Page
 
 
 
Condensed Consolidated Statements of Income for the three and nine months ended October 1, 2017 and October 2, 2016
 
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended October 1, 2017 and October 2, 2016
 
Condensed Consolidated Balance Sheets at October 1, 2017 and December 31, 2016
 
Condensed Consolidated Statements of Cash Flows for the nine months ended October 1, 2017 and October 2, 2016
 
Condensed Consolidated Statements of Changes in Equity for the nine months ended October 1, 2017 and October 2, 2016
 
 
 
 

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Table of Contents

PART I.  FINANCIAL INFORMATION 

ITEM 1.  Condensed Consolidated Financial Statements 
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
 
Three months ended
 
Nine months ended
In millions, except per share amounts 
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
NET SALES (a)
 
$
5,285

 
$
4,187

 
$
14,952

 
$
13,006

Cost of sales
 
3,946

 
3,108

 
11,236

 
9,674

GROSS MARGIN
 
1,339

 
1,079

 
3,716

 
3,332

OPERATING EXPENSES AND INCOME
 
 

 
 

 
 

 
 

Selling, general and administrative expenses
 
624

 
513

 
1,757

 
1,527

Research, development and engineering expenses
 
213

 
157

 
545

 
478

Equity, royalty and interest income from investees (Note 4)
 
95

 
74

 
301

 
234

Loss contingency (Note 9)
 

 
99

 

 
138

Other operating income (expense), net
 
32

 

 
55

 
(2
)
OPERATING INCOME
 
629

 
384

 
1,770

 
1,421

Interest income
 
4

 
6

 
11

 
18

Interest expense (Note 7)
 
18

 
16

 
57

 
51

Other income (expense), net
 
7

 
8

 
45

 
34

INCOME BEFORE INCOME TAXES
 
622

 
382

 
1,769

 
1,422

Income tax expense
 
165

 
82

 
466

 
362

CONSOLIDATED NET INCOME
 
457

 
300

 
1,303

 
1,060

Less: Net income attributable to noncontrolling interests
 
4

 
11

 
30

 
44

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
453

 
$
289

 
$
1,273

 
$
1,016

 
 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 

 
 

 
 

 
 

Basic
 
$
2.72

 
$
1.72

 
$
7.62

 
$
5.99

Diluted
 
$
2.71

 
$
1.72

 
$
7.60

 
$
5.99

 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
 
 

 
 

 
 

 
 

Basic
 
166.3

 
167.8

 
167.0

 
169.5

Dilutive effect of stock compensation awards
 
0.7

 
0.4

 
0.6

 
0.2

Diluted
 
167.0

 
168.2

 
167.6

 
169.7

 
 
 
 
 
 
 
 
 
CASH DIVIDENDS DECLARED PER COMMON SHARE
 
$
1.08

 
$
1.025

 
$
3.13

 
$
2.975

____________________________________
(a) Includes sales to nonconsolidated equity investees of $285 million and $835 million and $275 million and $793 million for the three and nine months ended October 1, 2017 and October 2, 2016, respectively.
 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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Table of Contents

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
 
 
Three months ended
 
Nine months ended
In millions 
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
CONSOLIDATED NET INCOME
 
$
457

 
$
300

 
$
1,303

 
$
1,060

Other comprehensive income (loss), net of tax (Note 10)
 
 

 
 

 
 

 
 

Change in pension and other postretirement defined benefit plans
 
16

 
13

 
52

 
31

Foreign currency translation adjustments
 
94

 
(29
)
 
276

 
(299
)
Unrealized gain (loss) on marketable securities
 

 

 
1

 
1

Unrealized gain (loss) on derivatives
 
(1
)
 
7

 

 
(20
)
Total other comprehensive income (loss), net of tax
 
109

 
(9
)
 
329

 
(287
)
COMPREHENSIVE INCOME
 
566

 
291

 
1,632

 
773

Less: Comprehensive income attributable to noncontrolling interests
 
2

 
14

 
42

 
41

COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
564

 
$
277

 
$
1,590

 
$
732

 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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Table of Contents

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In millions, except par value
 
October 1,
2017
 
December 31,
2016
ASSETS
 
 

 
 

Current assets
 
 

 
 

Cash and cash equivalents
 
$
1,290

 
$
1,120

Marketable securities (Note 5)
 
154

 
260

Total cash, cash equivalents and marketable securities
 
1,444

 
1,380

Accounts and notes receivable, net
 
 
 
 
Trade and other
 
3,532

 
2,803

Nonconsolidated equity investees
 
278

 
222

Inventories (Note 6)
 
3,146

 
2,675

Prepaid expenses and other current assets
 
656

 
627

Total current assets
 
9,056

 
7,707

Long-term assets
 
 

 
 

Property, plant and equipment
 
7,901

 
7,635

Accumulated depreciation
 
(4,085
)
 
(3,835
)
Property, plant and equipment, net
 
3,816

 
3,800

Investments and advances related to equity method investees
 
1,213

 
946

Goodwill
 
1,036

 
480

Other intangible assets, net
 
964

 
332

Pension assets
 
912

 
731

Other assets
 
995

 
1,015

Total assets
 
$
17,992

 
$
15,011

 
 
 
 
 
LIABILITIES
 
 

 
 

Current liabilities
 
 

 
 

Accounts payable (principally trade)
 
$
2,486

 
$
1,854

Loans payable (Note 7)
 
64

 
41

Commercial paper (Note 7)
 
514

 
212

Accrued compensation, benefits and retirement costs
 
674

 
412

Current portion of accrued product warranty (Note 8)
 
462

 
333

Current portion of deferred revenue
 
528

 
468

Other accrued expenses
 
968

 
970

Current maturities of long-term debt (Note 7)
 
62

 
35

Total current liabilities
 
5,758

 
4,325

Long-term liabilities
 
 

 
 

Long-term debt (Note 7)
 
1,615

 
1,568

Postretirement benefits other than pensions
 
319

 
329

Pensions
 
328

 
326

Other liabilities and deferred revenue
 
1,411

 
1,289

Total liabilities
 
$
9,431

 
$
7,837

 
 
 
 
 
Commitments and contingencies (Note 9)
 


 


 
 
 

 
 

EQUITY
 
 
 
 
Cummins Inc. shareholders’ equity
 
 

 
 

Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued
 
$
2,198

 
$
2,153

Retained earnings
 
11,791

 
11,040

Treasury stock, at cost, 56.4 and 54.2 shares
 
(4,849
)
 
(4,489
)
Common stock held by employee benefits trust, at cost, 0.6 and 0.7 shares
 
(7
)
 
(8
)
Accumulated other comprehensive loss (Note 10)
 
(1,504
)
 
(1,821
)
Total Cummins Inc. shareholders’ equity
 
7,629

 
6,875

Noncontrolling interests
 
932

 
299

Total equity
 
$
8,561

 
$
7,174

Total liabilities and equity
 
$
17,992

 
$
15,011


The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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Table of Contents

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

Consolidated net income
 
$
1,303

 
$
1,060

Adjustments to reconcile consolidated net income to net cash provided by operating activities
 
 

 
 

Depreciation and amortization
 
433

 
391

Deferred income taxes
 
26

 
60

Equity in income of investees, net of dividends
 
(166
)
 
(94
)
Pension contributions in excess of expense (Note 3)
 
(63
)
 
(92
)
Other post retirement benefits payments in excess of expense (Note 3)
 
(4
)
 
(16
)
Stock-based compensation expense
 
34

 
28

Restructuring payments
 

 
(53
)
Loss contingency (Note 9)
 

 
138

Translation and hedging activities
 
61

 
(39
)
Changes in current assets and liabilities, net of acquisitions
 
 
 
 

Accounts and notes receivable
 
(722
)
 
(112
)
Inventories
 
(401
)
 
(150
)
Other current assets
 
(28
)
 
138

Accounts payable
 
567

 
101

Accrued expenses
 
369

 
(279
)
Changes in other liabilities and deferred revenue
 
177

 
188

Other, net
 
(115
)
 
45

Net cash provided by operating activities
 
1,471

 
1,314

 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 

 
 

Capital expenditures
 
(282
)
 
(312
)
Investments in internal use software
 
(59
)
 
(42
)
Proceeds from disposals of property, plant and equipment
 
104

 
11

Investments in and advances to equity investees
 
(71
)
 
(29
)
Acquisitions of businesses, net of cash acquired (Note 11)
 
(600
)
 
(1
)
Investments in marketable securities—acquisitions (Note 5)
 
(106
)
 
(447
)
Investments in marketable securities—liquidations (Note 5)
 
218

 
291

Cash flows from derivatives not designated as hedges
 
9

 
(64
)
Other, net
 
1

 
3

Net cash used in investing activities
 
(786
)
 
(590
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 

 
 

Proceeds from borrowings
 
4

 
111

Net borrowings of commercial paper
 
302

 
273

Payments on borrowings and capital lease obligations
 
(38
)
 
(156
)
Net borrowings under short-term credit agreements
 
19

 
25

Distributions to noncontrolling interests
 
(29
)
 
(42
)
Dividend payments on common stock
 
(522
)
 
(505
)
Repurchases of common stock
 
(391
)
 
(745
)
Other, net
 
55

 
(6
)
Net cash used in financing activities
 
(600
)
 
(1,045
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
85

 
(139
)
Net increase (decrease) in cash and cash equivalents
 
170

 
(460
)
Cash and cash equivalents at beginning of year
 
1,120

 
1,711

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
1,290

 
$
1,251


 The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

6

Table of Contents

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
 
In millions
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Treasury
Stock
 
Common
Stock
Held in
Trust
 
Accumulated
Other
Comprehensive
Loss
 
Total
Cummins Inc.
Shareholders’
Equity
 
Noncontrolling
Interests
 
Total
Equity
BALANCE AT DECEMBER 31, 2015
$
556

 
$
1,622

 
$
10,322

 
$
(3,735
)
 
$
(11
)
 
$
(1,348
)
 
$
7,406

 
$
344

 
$
7,750

Net income


 


 
1,016

 


 


 


 
1,016

 
44

 
1,060

Other comprehensive income (loss), net of tax (Note 10)


 


 


 


 


 
(284
)
 
(284
)
 
(3
)
 
(287
)
Issuance of common stock


 
5

 


 


 


 


 
5

 

 
5

Employee benefits trust activity


 
19

 


 


 
3

 


 
22

 

 
22

Repurchases of common stock


 


 


 
(745
)
 


 


 
(745
)
 

 
(745
)
Cash dividends on common stock


 


 
(505
)
 


 


 


 
(505
)
 

 
(505
)
Distributions to noncontrolling interests


 


 


 


 


 


 

 
(49
)
 
(49
)
Stock based awards


 
(7
)
 


 
12

 


 


 
5

 

 
5

Other shareholder transactions


 
14

 


 


 


 


 
14

 
(6
)
 
8

BALANCE AT OCTOBER 2, 2016
$
556

 
$
1,653

 
$
10,833

 
$
(4,468
)
 
$
(8
)
 
$
(1,632
)
 
$
6,934

 
$
330

 
$
7,264

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE AT DECEMBER 31, 2016
$
556

 
$
1,597

 
$
11,040

 
$
(4,489
)
 
$
(8
)
 
$
(1,821
)
 
$
6,875

 
$
299

 
$
7,174

Net income


 


 
1,273

 


 


 


 
1,273

 
30

 
1,303

Other comprehensive income (loss), net of tax (Note 10)


 


 


 


 


 
317

 
317

 
12

 
329

Issuance of common stock


 
5

 


 


 


 


 
5

 

 
5

Employee benefits trust activity


 
14

 


 


 
1

 


 
15

 

 
15

Repurchases of common stock


 


 


 
(391
)
 


 


 
(391
)
 

 
(391
)
Cash dividends on common stock


 


 
(522
)
 


 


 


 
(522
)
 

 
(522
)
Distributions to noncontrolling interests


 


 


 


 


 


 

 
(29
)
 
(29
)
Stock based awards


 
2

 


 
31

 


 


 
33

 

 
33

Acquisition of business
 
 
 
 
 
 
 
 
 
 
 
 

 
600

 
600

Other shareholder transactions


 
24

 


 


 


 


 
24

 
20

 
44

BALANCE AT OCTOBER 1, 2017
$
556

 
$
1,642

 
$
11,791

 
$
(4,849
)
 
$
(7
)
 
$
(1,504
)
 
$
7,629

 
$
932

 
$
8,561

 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

7

Table of Contents

CUMMINS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. NATURE OF OPERATIONS
Cummins Inc. (“Cummins,” “we,” “our” or “us”) was founded in 1919 as Cummins Engine Company, a corporation in Columbus, Indiana, as one of the first diesel engine manufacturers. We changed our name to Cummins Inc. in 2001. We are a global power leader that designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, transmissions and electric power generation systems. We sell our products to original equipment manufacturers (OEMs), distributors and other customers worldwide. We serve our customers through a network of approximately 600 wholly-owned and independent distributor locations and over 7,400 dealer locations in more than 190 countries and territories.
NOTE 2. BASIS OF PRESENTATION
Interim Condensed Financial Statements
The unaudited Condensed Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows. All such adjustments are of a normal recurring nature. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles in the United States of America (GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations.
These interim condensed financial statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016. Our interim period financial results for the three and nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.
Reclassifications
Certain amounts for prior year periods have been reclassified to conform to the presentation of the current year.
Use of Estimates in Preparation of Financial Statements
Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Condensed Consolidated Financial Statements. Significant estimates and assumptions in these Condensed Consolidated Financial Statements require the exercise of judgment and are used for, but not limited to, allowance for doubtful accounts, estimates of future cash flows and other assumptions associated with goodwill and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, determination of discount rate and other assumptions for pension and other postretirement benefit costs, income taxes and deferred tax valuation allowances, lease classification and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.
Reporting Period
Our reporting period usually ends on the Sunday closest to the last day of the quarterly calendar period. The third quarters of 2017 and 2016 ended on October 1 and October 2, respectively. Our fiscal year ends on December 31, regardless of the day of the week on which December 31 falls.
Weighted-average Diluted Shares Outstanding
The weighted-average diluted common shares outstanding excludes the anti-dilutive effect of certain stock options since such options had an exercise price in excess of the monthly average market value of our common stock. The options excluded from diluted earnings per share were as follows:

8

Table of Contents

 
 
Three months ended
 
Nine months ended
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Options excluded
3,728

 
936,857

 
42,139

 
1,295,664


NOTE 3. PENSION AND OTHER POSTRETIREMENT BENEFITS
We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement plans. Contributions to these plans were as follows:
 
 
 
Three months ended
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Defined benefit pension plans
 
 

 
 

 
 

 
 

Voluntary contribution
 
$
41

 
$
16

 
$
125

 
$
101

Mandatory contribution
 

 
5

 

 
23

Defined benefit pension contributions
 
$
41

 
$
21

 
$
125

 
$
124

 
 
 
 
 
 
 
 
 
Other postretirement plans
 
$
1

 
$
4

 
$
19

 
$
32

 
 
 
 
 
 
 
 
 
Defined contribution pension plans
 
$
19

 
$
17

 
$
67

 
$
53


We anticipate making additional defined benefit pension contributions during the remainder of 2017 of $10 million for our U.S. and U.K. pension plans. Approximately $134 million of the estimated $135 million of pension contributions for the full year are voluntary. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2017 net periodic pension cost to approximate $83 million.
The components of net periodic pension and other postretirement benefit costs under our plans were as follows:
 
 
Pension
 
 
 
 
 
 
U.S. Plans
 
U.K. Plans
 
Other Postretirement Benefits
 
 
Three months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Service cost
 
$
27

 
$
22

 
$
7

 
$
5

 
$

 
$

Interest cost
 
26

 
26

 
10

 
13

 
3

 
4

Expected return on plan assets
 
(50
)
 
(50
)
 
(18
)
 
(17
)
 

 

Recognized net actuarial loss
 
10

 
9

 
10

 
3

 
2

 
1

Net periodic benefit cost
 
$
13

 
$
7

 
$
9

 
$
4

 
$
5

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension
 
 
 
 
 
 
U.S. Plans
 
U.K. Plans
 
Other Postretirement Benefits
 
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Service cost
 
$
80

 
$
68

 
$
20

 
$
16

 
$

 
$

Interest cost
 
79

 
82

 
30

 
39

 
10

 
12

Expected return on plan assets
 
(153
)
 
(152
)
 
(52
)
 
(55
)
 

 

Recognized net actuarial loss
 
28

 
23

 
30

 
11

 
5

 
4

Net periodic benefit cost
 
$
34

 
$
21

 
$
28

 
$
11

 
$
15

 
$
16



9

Table of Contents

NOTE 4. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the reporting periods was as follows: 
 
 
Three months ended
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Distribution entities
 
 
 
 
 
 
 
 
Komatsu Cummins Chile, Ltda.
 
$
8

 
$
8

 
$
23

 
$
26

North American distributors
 

 
7

 

 
18

All other distributors
 
(1
)
 
1

 
(1
)
 
2

Manufacturing entities
 
 
 
 
 
 

 
 

Beijing Foton Cummins Engine Co., Ltd.
 
24

 
19

 
79

 
59

Dongfeng Cummins Engine Company, Ltd.
 
15

 
10

 
56

 
32

Chongqing Cummins Engine Company, Ltd.
 
11

 
11

 
30

 
28

All other manufacturers
 
27

 
8

 
78

 
40

Cummins share of net income
 
84

 
64

 
265

 
205

Royalty and interest income
 
11

 
10

 
36

 
29

Equity, royalty and interest income from investees
 
$
95

 
$
74

 
$
301

 
$
234


NOTE 5. MARKETABLE SECURITIES
A summary of marketable securities, all of which are classified as current, was as follows: