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


FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report:  October 27, 2015
 
  CUMMINS INC.
(Exact name of registrant as specified in its charter)
Indiana
(State or other Jurisdiction of
Incorporation)
1-4949
 (Commission File Number)
35-0257090
 (I.R.S. Employer Identification No.)

500 Jackson Street
P. O. Box 3005
Columbus, IN  47202-3005
(Principal Executive Office)  (Zip Code)

Registrant's telephone number, including area code:  (812) 377-5000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
  
 



Item 2.02. Results of Operations and Financial Condition.
 
On October 27, 2015, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the third quarter of 2015, which is furnished herewith as Exhibit 99.

The information furnished pursuant to this Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.


Item 9.01. Financial Statements and Exhibits.
 
(d)
The following exhibit is furnished pursuant to Item 2.02 herewith: 
99-Press Release dated October 27, 2015


SIGNATURE

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: October 27, 2015
 
CUMMINS INC.
 /s/ Marsha L. Hunt
Marsha L. Hunt
Vice President - Corporate Controller
(Principal Accounting Officer)

 


CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (a)



 
 
Three months ended
In millions, except per share amounts
 
September 27,
2015
 
September 28,
2014
NET SALES
 
$
4,620

 
$
4,890

Cost of sales
 
3,412

 
3,606

GROSS MARGIN
 
1,208

 
1,284

 
 
 
 
 
OPERATING EXPENSES AND INCOME
 
 
 
 
Selling, general and administrative expenses
 
530

 
529

Research, development and engineering expenses
 
197

 
198

Equity, royalty and interest income from investees
 
78

 
99

Other operating (expense) income, net
 
(2
)
 
3

OPERATING INCOME
 
557

 
659

 
 
 
 
 
Interest income
 
9

 
6

Interest expense
 
16

 
15

Other income, net
 
11

 
19

INCOME BEFORE INCOME TAXES
 
561

 
669

 
 
 
 
 
Income tax expense
 
169

 
230

CONSOLIDATED NET INCOME
 
392

 
439

 
 
 
 
 
Less: Net income attributable to noncontrolling interests
 
12

 
16

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
380

 
$
423

 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 
 
 
Basic
 
$
2.15

 
$
2.32

Diluted
 
$
2.14

 
$
2.32

 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
 
 

 
 
Basic
 
177.0

 
182.2

Diluted
 
177.4

 
182.7

 
 
 
 
 
CASH DIVIDENDS DECLARED PER COMMON SHARE
 
$
0.975

 
$
0.78

 
 
 
 
 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.







CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (a)


 
 
Nine months ended
In millions, except per share amounts
 
September 27,
2015
 
September 28,
2014
NET SALES
 
$
14,344

 
$
14,131

Cost of sales
 
10,609

 
10,543

GROSS MARGIN
 
3,735

 
3,588

 
 
 
 
 
OPERATING EXPENSES AND INCOME
 
 
 
 
Selling, general and administrative expenses
 
1,584

 
1,527

Research, development and engineering expenses
 
558

 
567

Equity, royalty and interest income from investees
 
240

 
294

Other operating expense, net
 
(5
)
 
(4
)
OPERATING INCOME
 
1,828

 
1,784

 
 
 
 
 
Interest income
 
20

 
17

Interest expense
 
47

 
47

Other income, net
 
12

 
68

INCOME BEFORE INCOME TAXES
 
1,813

 
1,822

 
 
 
 
 
Income tax expense
 
521

 
553

CONSOLIDATED NET INCOME
 
1,292

 
1,269

 
 
 
 
 
Less: Net income attributable to noncontrolling interests
 
54

 
62

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
1,238

 
$
1,207

 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 
 
 
Basic
 
$
6.92

 
$
6.59

Diluted
 
$
6.90

 
$
6.58

 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
 
 
 
 
Basic
 
178.9

 
183.1

Diluted
 
179.3

 
183.5

 
 
 
 
 
CASH DIVIDENDS DECLARED PER COMMON SHARE
 
$
2.535

 
$
2.03

 
 
 
 
 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.



CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)


In millions, except par value
 
September 27,
2015
 
December 31,
2014
ASSETS
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
1,688

 
$
2,301

Marketable securities
 
35

 
93

Total cash, cash equivalents and marketable securities
 
1,723

 
2,394

Accounts and notes receivable, net
 
3,159

 
2,946

Inventories
 
3,059

 
2,866

Prepaid expenses and other current assets
 
921

 
849

Total current assets
 
8,862

 
9,055

Long-term assets
 
 
 
 
Property, plant and equipment
 
7,262

 
7,123

Accumulated depreciation
 
(3,545
)
 
(3,437
)
Property, plant and equipment, net
 
3,717

 
3,686

Investments and advances related to equity method investees
 
959

 
981

Goodwill
 
481

 
479

Other intangible assets, net
 
337

 
343

Pension assets
 
785

 
637

Other assets
 
656

 
595

Total assets
 
$
15,797

 
$
15,776

 
 
 
 
 
LIABILITIES
 
 
 
 
Current liabilities
 
 
 
 
Accounts payable (principally trade)
 
$
1,824

 
$
1,881

Loans payable
 
27

 
86

Current portion of accrued product warranty
 
388

 
363

Accrued compensation, benefits and retirement costs
 
505

 
508

Current portion of deferred revenue
 
414

 
401

Other accrued expenses
 
779

 
759

Current maturities of long-term debt
 
31

 
23

Total current liabilities
 
3,968

 
4,021

Long-term liabilities
 
 
 
 
Long-term debt
 
1,595

 
1,589

Postretirement benefits other than pensions
 
347

 
369

Pensions
 
292

 
289

Other liabilities and deferred revenue
 
1,514

 
1,415

Total liabilities
 
$
7,716

 
$
7,683

 
 
 
 
 
EQUITY
 
 
 
 
Cummins Inc. shareholders’ equity
 
 
 
 
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued
 
$
2,173

 
$
2,139

Retained earnings
 
10,331

 
9,545

Treasury stock, at cost, 44.7 and 40.1 shares
 
(3,486
)
 
(2,844
)
Common stock held by employee benefits trust, at cost, 1.0 and 1.1 shares
 
(11
)
 
(13
)
Accumulated other comprehensive loss
 
(1,258
)
 
(1,078
)
Total Cummins Inc. shareholders’ equity
 
7,749

 
7,749

Noncontrolling interests
 
332

 
344

Total equity
 
$
8,081

 
$
8,093

Total liabilities and equity
 
$
15,797

 
$
15,776

 
 
 
 
 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.




CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)


 
 
Nine months ended
In millions
 
September 27,
2015
 
September 28,
2014
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Consolidated net income
 
$
1,292

 
$
1,269

Adjustments to reconcile consolidated net income to net cash provided by operating activities
 
 
 
 
Depreciation and amortization
 
383

 
330

Gain on fair value adjustment for consolidated investees
 
(17
)
 
(38
)
Deferred income taxes
 
(120
)
 
(37
)
Equity in income of investees, net of dividends
 
(68
)
 
(103
)
Pension contributions in excess of expense
 
(119
)
 
(154
)
Other post-retirement benefits payments in excess of expense
 
(18
)
 
(22
)
Stock-based compensation expense
 
24

 
27

Translation and hedging activities
 
22

 
(19
)
Changes in current assets and liabilities, net of acquisitions
 
 
 
 
Accounts and notes receivable
 
(163
)
 
(236
)
Inventories
 
(179
)
 
(302
)
Other current assets
 
133

 
(6
)
Accounts payable
 
(52
)
 
316

Accrued expenses
 
(153
)
 
162

Changes in other liabilities and deferred revenue
 
219

 
184

Other, net
 
(53
)
 
17

Net cash provided by operating activities
 
1,131

 
1,388

 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Capital expenditures
 
(393
)
 
(409
)
Investments in internal use software
 
(38
)
 
(40
)
Investments in and advances to equity investees
 
(9
)
 
(39
)
Acquisitions of businesses, net of cash acquired
 
(102
)
 
(266
)
Investments in marketable securities—acquisitions
 
(175
)
 
(213
)
Investments in marketable securities—liquidations
 
228

 
316

Cash flows from derivatives not designated as hedges
 
17

 
—

Other, net
 
(5
)
 
11

Net cash used in investing activities
 
(477
)
 
(640
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Proceeds from borrowings
 
24

 
39

Payments on borrowings and capital lease obligations
 
(64
)
 
(72
)
Net payments under short-term credit agreements
 
(38
)
 
(41
)
Distributions to noncontrolling interests
 
(35
)
 
(52
)
Dividend payments on common stock
 
(452
)
 
(370
)
Repurchases of common stock
 
(650
)
 
(605
)
Other, net
 
—

 
2

Net cash used in financing activities
 
(1,215
)
 
(1,099
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
(52
)
 
(20
)
Net decrease in cash and cash equivalents
 
(613
)
 
(371
)
Cash and cash equivalents at beginning of year
 
2,301

 
2,699

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
1,688

 
$
2,328

 
 
 
 
 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.



CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

                                                  
 
In millions
 
Engine
 
Distribution
 
Components
 
Power Generation
 
Non-segment
Items (1)
 
Total
 
Three months ended September 27, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,800

 
$
1,543

 
$
891

 
$
386

 
$
—

 
$
4,620

 
Intersegment sales
 
728

 
8

 
349

 
273

 
(1,358
)
 
—

 
Total sales
 
2,528

 
1,551

 
1,240

 
659

 
(1,358
)
 
4,620

 
Depreciation and amortization(2)
 
60

 
26

 
28

 
14

 
—

 
128

 
Research, development and engineering expenses
 
116

 
2

 
65

 
14

 
—

 
197

 
Equity, royalty and interest income from investees
 
40

 
19

 
9

 
10

 
—

 
78

 
Interest income
 
6

 
1

 
1

 
1

 
—

 
9

 
Segment EBIT
 
252

 
123

(3) 
156

 
42

 
4

 
577

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
10.0
%
 
7.9
%
 
12.6
%
 
6.4
%
 
 
 
12.5
%
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Three months ended September 28, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
2,181

 
$
1,282

 
$
946

 
$
481

 
$
—

 
$
4,890

 
Intersegment sales
 
635

 
10

 
341

 
273

 
(1,259
)
 
—

 
Total sales
 
2,816

 
1,292

 
1,287

 
754

 
(1,259
)
 
4,890

 
Depreciation and amortization(2)
 
50

 
22

 
27

 
13

 
—

 
112

 
Research, development and engineering expenses
 
114

 
2

 
64

 
18

 
—

 
198

 
Equity, royalty and interest income from investees
 
40

 
37

 
9

 
13

 
—

 
99

 
Interest income
 
3

 
1

 
1

 
1

 
—

 
6

 
Segment EBIT
 
330

 
131

(3) 
172

 
60

 
(9
)
 
684

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
11.7
%
 
10.1
%
 
13.4
%
 
8.0
%
 
 
 
14.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 September 27, 2015 and September 28, 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."
(3
)
Distribution segment EBIT included gains of $17 million and $18 million on the fair value adjustments resulting from acquisitions of the controlling interests in North American distributors for the three months ended September 27, 2015 and September 28, 2014, respectively.

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

 
In millions
 
Engine
 
Distribution
 
Components
 
Power Generation
 
Non-segment Items (1)
 
Total
 
Nine months ended September 27, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
5,747

 
$
4,499

 
$
2,839

 
$
1,259

 
$
—

 
$
14,344

 
Intersegment sales
 
2,174

 
23

 
1,097

 
827

 
(4,121
)
 
—

 
Total sales
 
7,921

 
4,522

 
3,936

 
2,086

 
(4,121
)
 
14,344

 
Depreciation and amortization(2)
 
178

 
78

 
82

 
43

 
—

 
381

 
Research, development and engineering expenses
 
321

 
8

 
183

 
46

 
—

 
558

 
Equity, royalty and interest income from investees
 
127

 
60

 
26

 
27

 
—

 
240

 
Interest income
 
11

 
3

 
3

 
3

 
—

 
20

 
Segment EBIT
 
846

 
324

(3) 
574

 
148

 
(32
)
 
1,860

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
10.7
%
 
7.2
%
 
14.6
%
 
7.1
%
 
 
 
13.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 28, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
6,449

 
$
3,453

 
$
2,821

 
$
1,408

 
$
—

 
$
14,131

 
Intersegment sales
 
1,674

 
27

 
976

 
728

 
(3,405
)
 
—

 
Total sales
 
8,123

 
3,480

 
3,797

 
2,136

 
(3,405
)
 
14,131

 
Depreciation and amortization(2)
 
153

 
58

 
79

 
38

 
—

 
328

 
Research, development and engineering expenses
 
335

 
7

 
170

 
55

 
—

 
567

 
Equity, royalty and interest income from investees
 
117

 
120

 
27

 
30

 
—

 
294

 
Interest income
 
9

 
2

 
3

 
3

 
—

 
17

 
Segment EBIT
 
910

 
333

(3) 
524

 
146

 
(44
)
 
1,869

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
11.2
%
 
9.6
%
 
13.8
%
 
6.8
%
 
 
 
13.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended September 27, 2015 and September 28, 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 $2 million for both the nine months ended September 27, 2015 and September 28, 2014.
(3
)
Distribution segment EBIT included gains of $17 million and $38 million on the fair value adjustments resulting from the acquisitions of the controlling interests in North American distributors for the nine months ended September 27, 2015 and September 28, 2014, respectively.

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 27,
2015
 
September 28,
2014
 
September 27,
2015
 
September 28,
2014
Total EBIT
 
$
577

 
$
684

 
$
1,860

 
$
1,869

Less: Interest expense
 
16

 
15

 
47

 
47

Income before income taxes
 
$
561

 
$
669

 
$
1,813

 
$
1,822



CUMMINS INC. AND SUBSIDIARIES
SELECTED FOOTNOTE DATA
(Unaudited)




NOTE 1.  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
 
September 27,
2015
 
September 28,
2014
 
September 27,
2015
 
September 28,
2014
Distribution Entities
 
 
 
 
 
 
 
 
North American distributors
 
$
9

 
$
27

 
$
27

 
$
89

Komatsu Cummins Chile, Ltda.
 
8

 
8

 
23

 
22

All other distributors
 
1

 
—

 
2

 
2

Manufacturing Entities
 
 

 
 
 
 

 
 
Beijing Foton Cummins Engine Co., Ltd
 
18

 
5

 
47

 
6

Dongfeng Cummins Engine Company, Ltd.
 
11

 
15

 
40

 
51

Chongqing Cummins Engine Company, Ltd.
 
9

 
13

 
32

 
39

All other manufacturers
 
13

 
20

 
41

 
54

Cummins share of net income
 
69

 
88

 
212

 
263

Royalty and interest income
 
9

 
11

 
28

 
31

Equity, royalty and interest income from investees
 
$
78

 
$
99

 
$
240

 
$
294

 
NOTE 2.  INCOME TAXES

The effective tax rate for the three and nine month periods ended September 27, 2015, was 30.1 percent and 28.7 percent, respectively. The tax rate for the nine month period ended September 27, 2015, included a net $14 million discrete tax benefit primarily to reflect the release of reserves for uncertain tax positions related to a favorable federal audit settlement.


CUMMINS INC. AND SUBSIDIARIES
SELECTED FOOTNOTE DATA
(Unaudited)



NOTE 3. ACQUISITIONS
The Distribution segment North American distributor acquisitions in the third quarter of 2015 were as follows:
Entity Acquired
 
Date of Acquisition
 
Additional Percent Interest Acquired
 
Payments to Former Owners
 
Acquisition Related Debt Retirements
 
Total Purchase Consideration
 
Type of Acquisition(1)
 
Gain Recognized(1)
 
Goodwill Acquired
 
Intangibles Recognized(2)
 
Net Sales Previous Fiscal Year Ended(3)
Cummins Crosspoint LLC (4)
 
08/03/15
 
50
%
 
$
20

 
$
36

 
$
65

(5) 
COMB
 
$
10

 
$
7

 
$
2

 
$
258

Cummins Atlantic LLC (4)
 
08/03/15
 
51
%
 
14

 
28

 
48

(5) 
COMB
 
7

 
2

 
6

 
245

Cummins Central Power LLC
 
06/29/15
 
20.01
%
 
8

 
—

 
8

(5) 
EQUITY
 
—

 
—

 
—

 
—

____________________________________________________
(1) 
All results from acquired entities were included in Distribution segment results subsequent to the acquisition date. Previously consolidated entities were accounted for as equity transactions (EQUITY). Newly consolidated entities were accounted for as business combinations (COMB) with gains recognized based on the requirement to remeasure our pre-existing ownership to fair value in accordance with GAAP.
(2)  
Intangible assets acquired in business combinations were mostly customer related, the majority of which will be amortized over a period of up to five years from the date of the acquisition.
(3) Sales amounts are not fully incremental to our consolidated sales as the amount would be reduced by the elimination of sales to the previously unconsolidated entity.
(4) 
Purchase accounting for this acquisition is preliminary awaiting customary adjustments to purchase price in accordance with the purchase agreements.
(5) 
The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. In some instances a portion of the acquisition payment has not yet been made and will be paid in future periods in accordance with the purchase contract. The total outstanding consideration at September 27, 2015 for these entities was $15 million.



CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

 
Earnings before interest, income taxes and noncontrolling interests
 
We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries (EBIT). We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs. This measure is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of EBIT to “Net income attributable to Cummins Inc.” for each of the applicable periods:
 
 
Three months ended
 
Nine months ended
In millions
 
September 27, 2015
 
September 28, 2014
 
September 27, 2015
 
September 28, 2014
Earnings before interest expense and income taxes
 
$
577

 
$
684

 
$
1,860

 
$
1,869

 
 
 
 
 
 
 
 
 
EBIT as a percentage of net sales
 
12.5
%
 
14.0
%
 
13.0
%
 
13.2
%
 
 
 
 
 
 
 
 
 
Less
 
 
 
 
 
 
 
 
Interest expense
 
16

 
15

 
47

 
47

Income tax expense
 
169

 
230

 
521

 
553

Consolidated net income
 
392

 
439

 
1,292

 
1,269

 
 
 
 
 
 
 
 
 
Less
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
12

 
16

 
54

 
62

Net income attributable to Cummins Inc.
 
$
380

 
$
423

 
$
1,238

 
$
1,207

 
 
 
 
 
 
 
 
 
Net income attributable to Cummins Inc. as a percentage of net sales
 
8.2
%
 
8.7
%
 
8.6
%
 
8.5
%



CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)


Engine Segment Sales by Market and Unit Shipments by Engine Classification
In the first quarter of 2015, our Engine segment reorganized its reporting structure to include the following markets: heavy-duty truck, medium-duty truck and bus, light-duty automotive (pickup and light commercial vehicle), industrial and stationary power. Sales by market for our Engine segment by business (including 2014 and 2013 reorganized balances) were as follows:
2015
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
757

 
$
875

 
$
784

 
$
—

 
$
2,416

Medium-duty truck and bus
 
608

 
674

 
585

 
—

 
1,867

Light-duty automotive
 
381

 
354

 
339

 
—

 
1,074

Industrial
 
616

 
624

 
617

 
—

 
1,857

Stationary power
 
234

 
270

 
203

 
—

 
707

Total sales
 
$
2,596

 
$
2,797

 
$
2,528

 
$
—

 
$
7,921

 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
718

 
$
769

 
$
801

 
$
784

 
$
3,072

Medium-duty truck and bus
 
575

 
605

 
599

 
652

 
2,431

Light-duty automotive
 
391

 
392

 
396

 
388

 
1,567

Industrial
 
669

 
739

 
768

 
775

 
2,951

Stationary power
 
210

 
239

 
252

 
240

 
941

Total sales
 
$
2,563

 
$
2,744

 
$
2,816

 
$
2,839

 
$
10,962

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
In millions
 
YTD
 
 
 
 
 
 
 
 
Heavy-duty truck
 
$
2,618

 
 
 
 
 
 
 
 
Medium-duty truck and bus
 
2,064

 
 
 
 
 
 
 
 
Light-duty automotive
 
1,465

 
 
 
 
 
 
 
 
Industrial
 
2,921

 
 
 
 
 
 
 
 
Stationary power
 
945

 
 
 
 
 
 
 
 
Total sales
 
$
10,013

 
 
 
 
 
 
 
 
 
Unit shipments by engine classification (including unit shipments to Power Generation):
2015
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Mid-range
 
112,400

 
120,000

 
107,400

 
—

 
339,800

Heavy-duty
 
28,700

 
32,800

 
28,600

 
—

 
90,100

High-horsepower
 
3,500

 
3,700

 
3,200

 
—

 
10,400

Total units
 
144,600

 
156,500

 
139,200

 
—

 
440,300

 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Mid-range
 
118,900

 
118,700

 
117,700

 
115,900

 
471,200

Heavy-duty
 
28,800

 
30,300

 
32,300

 
30,700

 
122,100

High-horsepower
 
3,400

 
3,900

 
3,900

 
3,600

 
14,800

Total units
 
151,100

 
152,900

 
153,900

 
150,200

 
608,100










CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)


Distribution Segment Sales by Business
2015
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts and filtration
 
$
573

 
$
598

 
$
604

 
$
—

 
$
1,775

Engines
 
321

 
318

 
323

 
—

 
962

Power generation
 
298

 
272

 
323

 
—

 
893

Service
 
284

 
307

 
301

 
—

 
892

Total sales
 
$
1,476

 
$
1,495

 
$
1,551

 
$
—

 
$
4,522

 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts and filtration
 
$
382

 
$
461

 
$
491

 
$
590

 
$
1,924

Engines
 
174

 
249

 
270

 
368

 
1,061

Power generation
 
193

 
278

 
279

 
413

 
1,163

Service
 
201

 
250

 
252

 
323

 
1,026

Total sales
 
$
950

 
$
1,238

 
$
1,292

 
$
1,694

 
$
5,174


Component Segment Sales by Business
2015
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission solutions
 
$
613

 
$
679

 
$
607

 
$
—

 
$
1,899

Turbo technologies
 
301

 
307

 
266

 
—

 
874

Filtration
 
255

 
266

 
240

 
—

 
761

Fuel systems
 
130

 
145

 
127

 
—

 
402

Total sales
 
$
1,299

 
$
1,397

 
$
1,240

 
$
—

 
$
3,936

 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission solutions
 
$
543

 
$
582

 
$
598

 
$
620

 
$
2,343

Turbo technologies
 
313

 
307

 
297

 
305

 
1,222

Filtration
 
265

 
275

 
268

 
267

 
1,075

Fuel systems
 
109

 
116

 
124

 
129

 
478

Total sales
 
$
1,230

 
$
1,280

 
$
1,287

 
$
1,321

 
$
5,118




CUMMINS INC. AND SUBSIDIARIES
BUSINESS UNIT SALES DATA
(Unaudited)


Power Generation Segment Sales by Business
In the first quarter of 2015, our Power Generation segment reorganized its reporting structure to include the following businesses: power systems, alternators and power solutions. Sales for our Power Generation segment by business (including 2014 and 2013 reorganized balances) were as follows:
2015
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power systems
 
$
543

 
$
611

 
$
551

 
$
—

 
$
1,705

Alternators
 
98

 
92

 
86

 
—

 
276

Power solutions
 
39

 
44

 
22

 
—

 
105

Total sales
 
$
680

 
$
747

 
$
659

 
$
—

 
$
2,086

 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power systems
 
$
510

 
$
586

 
$
598

 
$
606

 
$
2,300

Alternators
 
105

 
126

 
115

 
103

 
449

Power solutions
 
24

 
31

 
41

 
51

 
147

Total sales
 
$
639

 
$
743

 
$
754

 
$
760

 
$
2,896

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
In millions
 
YTD
 
 
 
 
 
 
 
 
Power systems
 
$
2,381

 
 
 
 
 
 
 
 
Alternators
 
496

 
 
 
 
 
 
 
 
Power solutions
 
154

 
 
 
 
 
 
 
 
Total sales
 
$
3,031