Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.21.2
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 04, 2021
Jun. 28, 2020
Jul. 04, 2021
Jun. 28, 2020
Segment reporting        
NET SALES (a) (Note 2) [1] $ 6,111 $ 3,852 $ 12,203 $ 8,863
Research, development and engineering expenses 276 189 536 427
Equity, royalty and interest income (loss) from investees 137 115 303 244
Interest income 5 4    
EBITDA 983 504    
Interest expense 29 23 57 46
Depreciation and amortization 166 164 335 332
INCOME BEFORE INCOME TAXES 779 362 1,562 1,017
Income tax expense (Note 5) 167 93 339 220
CONSOLIDATED NET INCOME 612 269 1,223 797
Less: Net income (loss) attributable to noncontrolling interests 12 (7) 20 10
NET INCOME ATTRIBUTABLE TO CUMMINS INC. 600 276 1,203 787
Amortization of Debt Discount (Premium)     2 1
Engine        
Segment reporting        
NET SALES (a) (Note 2) 2,491 1,423 4,950 3,581
Research, development and engineering expenses 99 65 191 145
Equity, royalty and interest income (loss) from investees 104 84 217 162
Interest income 1 1 4 5
EBITDA 402 150 756 515
Depreciation and amortization 50 51 101 104
Distribution        
Segment reporting        
NET SALES (a) (Note 2) 1,920 1,605 3,755 3,419
Research, development and engineering expenses 12 4 25 11
Equity, royalty and interest income (loss) from investees 15 11 32 32
Interest income 2 1 3 2
EBITDA 201 160 361 318
Depreciation and amortization 30 30 60 61
Components        
Segment reporting        
NET SALES (a) (Note 2) 1,994 1,150 4,146 2,652
Research, development and engineering expenses 79 55 154 123
Equity, royalty and interest income (loss) from investees 12 12 31 33
Interest income 1 1 2 2
EBITDA 301 141 722 420
Depreciation and amortization 46 47 94 95
Power Systems        
Segment reporting        
NET SALES (a) (Note 2) 1,143 777 2,165 1,661
Research, development and engineering expenses 60 41 117 95
Equity, royalty and interest income (loss) from investees 9 9 21 18
Interest income 1 1 2 2
EBITDA 139 91 265 168
Depreciation and amortization 33 32 68 64
New Power        
Segment reporting        
NET SALES (a) (Note 2) 24 10 59 20
Research, development and engineering expenses 26 24 49 53
Equity, royalty and interest income (loss) from investees (3) (1) 2 (1)
Interest income 0 0 0 0
EBITDA (60) (38) (111) (81)
Depreciation and amortization 7 4 12 8
Total Segments        
Segment reporting        
NET SALES (a) (Note 2) 7,572 4,965 15,075 11,333
Research, development and engineering expenses     536 427
Equity, royalty and interest income (loss) from investees     303 244
Interest income     11 11
EBITDA 983 504 1,993 1,340
Depreciation and amortization     335 332
Corporate and Other        
Segment reporting        
NET SALES (a) (Note 2) (1,461) (1,113) (2,872) (2,470)
EBITDA (9) 45 (39) 55
Intersegment sales | Engine        
Segment reporting        
NET SALES (a) (Note 2) 571 486 1,135 1,065
Intersegment sales | Distribution        
Segment reporting        
NET SALES (a) (Note 2) 7 4 15 11
Intersegment sales | Components        
Segment reporting        
NET SALES (a) (Note 2) 438 274 866 661
Intersegment sales | Power Systems        
Segment reporting        
NET SALES (a) (Note 2) 444 349 854 733
Intersegment sales | New Power        
Segment reporting        
NET SALES (a) (Note 2) 1 0 2 0
Intersegment sales | Total Segments        
Segment reporting        
NET SALES (a) (Note 2) 1,461 1,113 2,872 2,470
External Sales        
Segment reporting        
NET SALES (a) (Note 2) 6,111 3,852    
External Sales | Engine        
Segment reporting        
NET SALES (a) (Note 2) 1,920 937 3,815 2,516
External Sales | Distribution        
Segment reporting        
NET SALES (a) (Note 2) 1,913 1,601 3,740 3,408
External Sales | Components        
Segment reporting        
NET SALES (a) (Note 2) 1,556 876 3,280 1,991
External Sales | Power Systems        
Segment reporting        
NET SALES (a) (Note 2) 699 428 1,311 928
External Sales | New Power        
Segment reporting        
NET SALES (a) (Note 2) $ 23 $ 10 57 20
External Sales | Total Segments        
Segment reporting        
NET SALES (a) (Note 2)     $ 12,203 $ 8,863
[1] (a) Includes sales to nonconsolidated equity investees of $423 million and $901 million for the three and six months ended July 4, 2021, compared with $338 million and $595 million for the comparable periods in 2020.