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

cumminsca06.jpg

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

Date of Report:  August 1, 2017
 
  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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

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
 

1


Item 2.02. Results of Operations and Financial Condition.
 
On August 1, 2017, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the second quarter of 2017, 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 August 1, 2017


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: August 1, 2017
 
CUMMINS INC.
 /s/ CHRISTOPHER C. CLULOW
Christopher C. Clulow
Vice President - Corporate Controller
(Principal Accounting Officer)

 

2

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



 
 
Three months ended
In millions, except per share amounts
 
July 2,
2017
 
July 3,
2016
NET SALES
 
$
5,078

 
$
4,528

Cost of sales
 
3,829

 
3,331

GROSS MARGIN
 
1,249

 
1,197

OPERATING EXPENSES AND INCOME
 
 
 
 
Selling, general and administrative expenses
 
596

 
524

Research, development and engineering expenses
 
174

 
155

Equity, royalty and interest income from investees
 
98

 
88

Loss contingency
 

 
39

Other operating income (expense), net
 
18

 

OPERATING INCOME
 
595

 
567

Interest income
 
5

 
6

Interest expense
 
21

 
16

Other income (expense), net
 
20

 
18

INCOME BEFORE INCOME TAXES
 
599

 
575

Income tax expense
 
158

 
148

CONSOLIDATED NET INCOME
 
441

 
427

Less: Net income attributable to noncontrolling interests
 
17

 
21

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
424

 
$
406

 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 
 
 
Basic
 
$
2.53

 
$
2.41

Diluted
 
$
2.53

 
$
2.40

 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
 
 

 
 
Basic
 
167.3

 
168.8

Diluted
 
167.8

 
169.0

 
 
 
 
 
CASH DIVIDENDS DECLARED PER COMMON SHARE
 
$
1.025

 
$
0.975

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







3

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


 
 
 
Six months ended
In millions, except per share amounts
 
July 2,
2017
 
July 3,
2016
NET SALES
 
$
9,667

 
$
8,819

Cost of sales
 
7,290

 
6,566

GROSS MARGIN
 
2,377

 
2,253

OPERATING EXPENSES AND INCOME
 
 
 
 
Selling, general and administrative expenses
 
1,133

 
1,014

Research, development and engineering expenses
 
332

 
321

Equity, royalty and interest income from investees
 
206

 
160

Loss contingency
 

 
39

Other operating income (expense), net
 
23

 
(2
)
OPERATING INCOME
 
1,141

 
1,037

Interest income
 
7

 
12

Interest expense
 
39

 
35

Other income (expense), net
 
38

 
26

INCOME BEFORE INCOME TAXES
 
1,147

 
1,040

Income tax expense
 
301

 
280

CONSOLIDATED NET INCOME
 
846

 
760

Less: Net income attributable to noncontrolling interests
 
26

 
33

NET INCOME ATTRIBUTABLE TO CUMMINS INC.
 
$
820

 
$
727

 
 
 
 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
 
 
 
 
Basic
 
$
4.90

 
$
4.27

Diluted
 
$
4.88

 
$
4.26

 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
 
 
 
 
Basic
 
167.4

 
170.3

Diluted
 
167.9

 
170.5

 
 
 
 
 
CASH DIVIDENDS DECLARED PER COMMON SHARE
 
$
2.05

 
$
1.95

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




4

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


In millions, except par value
 
July 2,
2017
 
December 31,
2016
ASSETS
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
1,293

 
$
1,120

Marketable securities
 
174

 
260

Total cash, cash equivalents and marketable securities
 
1,467

 
1,380

Accounts and notes receivable, net
 
3,553

 
3,025

Inventories
 
2,982

 
2,675

Prepaid expenses and other current assets
 
600

 
627

Total current assets
 
8,602

 
7,707

Long-term assets
 
 
 
 
Property, plant and equipment
 
7,804

 
7,635

Accumulated depreciation
 
(4,017
)
 
(3,835
)
Property, plant and equipment, net
 
3,787

 
3,800

Investments and advances related to equity method investees
 
1,162

 
946

Goodwill
 
488

 
480

Other intangible assets, net
 
339

 
332

Pension assets
 
852

 
731

Other assets
 
1,030

 
1,015

Total assets
 
$
16,260

 
$
15,011

 
 
 
 
 
LIABILITIES
 
 
 
 
Current liabilities
 
 
 
 
Accounts payable (principally trade)
 
$
2,300

 
$
1,854

Loans payable
 
54

 
41

Commercial paper
 
134

 
212

Accrued compensation, benefits and retirement costs
 
475

 
412

Current portion of accrued product warranty
 
392

 
333

Current portion of deferred revenue
 
520

 
468

Other accrued expenses
 
974

 
970

Current maturities of long-term debt
 
45

 
35

Total current liabilities
 
4,894

 
4,325

Long-term liabilities
 
 
 
 
Long-term debt
 
1,564

 
1,568

Postretirement benefits other than pensions
 
318

 
329

Pensions
 
327

 
326

Other liabilities and deferred revenue
 
1,335

 
1,289

Total liabilities
 
$
8,438

 
$
7,837

 
 
 
 
 
EQUITY
 
 
 
 
Cummins Inc. shareholders’ equity
 
 
 
 
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.4 shares issued
 
$
2,184

 
$
2,153

Retained earnings
 
11,517

 
11,040

Treasury stock, at cost, 54.7 and 54.2 shares
 
(4,586
)
 
(4,489
)
Common stock held by employee benefits trust, at cost, 0.6 and 0.7 shares
 
(7
)
 
(8
)
Accumulated other comprehensive loss
 
(1,615
)
 
(1,821
)
Total Cummins Inc. shareholders’ equity
 
7,493

 
6,875

Noncontrolling interests
 
329

 
299

Total equity
 
$
7,822

 
$
7,174

Total liabilities and equity
 
$
16,260

 
$
15,011

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




5

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


 
 
Six months ended
In millions
 
July 2, 2017
 
July 3, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Consolidated net income
 
$
846

 
$
760

Adjustments to reconcile consolidated net income to net cash provided by operating activities
 
 
 
 
Depreciation and amortization
 
284

 
259

Deferred income taxes
 

 
2

Equity in income of investees, net of dividends
 
(132
)
 
(87
)
Pension contributions in excess of expense
 
(44
)
 
(82
)
Other post-retirement benefits payments in excess of expense
 
(8
)
 
(17
)
Stock-based compensation expense
 
23

 
20

Restructuring payments
 

 
(42
)
Loss contingency
 

 
39

Translation and hedging activities
 
31

 
(45
)
Changes in current assets and liabilities
 
 
 
 
Accounts and notes receivable
 
(488
)
 
(252
)
Inventories
 
(264
)
 
(101
)
Other current assets
 
21

 
189

Accounts payable
 
403

 
143

Accrued expenses
 
132

 
(209
)
Changes in other liabilities and deferred revenue
 
103

 
129

Other, net
 
(81
)
 
32

Net cash provided by operating activities
 
826

 
738

CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Capital expenditures
 
(182
)
 
(189
)
Investments in internal use software
 
(40
)
 
(27
)
Investments in and advances to equity investees
 
(64
)
 
(17
)
Investments in marketable securities—acquisitions
 
(69
)
 
(379
)
Investments in marketable securities—liquidations
 
162

 
237

Cash flows from derivatives not designated as hedges
 
19

 
(21
)
Other, net
 
14

 
5

Net cash used in investing activities
 
(160
)
 
(391
)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Proceeds from borrowings
 
2

 
109

Net (payments) borrowings of commercial paper
 
(78
)
 
200

Payments on borrowings and capital lease obligations
 
(29
)
 
(133
)
Distributions to noncontrolling interests
 
(10
)
 
(24
)
Dividend payments on common stock
 
(343
)
 
(333
)
Repurchases of common stock
 
(120
)
 
(695
)
Other, net
 
34

 
(20
)
Net cash used in financing activities
 
(544
)
 
(896
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
51

 
(117
)
Net increase (decrease) in cash and cash equivalents
 
173

 
(666
)
Cash and cash equivalents at beginning of year
 
1,120

 
1,711

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
1,293

 
$
1,045

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

6

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

 
In millions
 
Engine
 
Distribution
 
Components
 
Power Systems
 
Intersegment Eliminations (1)
 
Total
 
Three months ended July 2, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,711

 
$
1,716

 
$
1,064

 
$
587

 
$

 
$
5,078

 
Intersegment sales
 
596

 
6

 
390

 
430

 
(1,422
)
 

 
Total sales
 
2,307

 
1,722

 
1,454

 
1,017

 
(1,422
)
 
5,078

 
Depreciation and amortization (2)
 
46

 
31

 
38

 
29

 

 
144

 
Research, development and engineering expenses
 
63

 
4

 
57

 
50

 

 
174

 
Equity, royalty and interest income from investees
 
56

 
13

 
15

 
14

 

 
98

 
Interest income
 
2

 
1

 
1

 
1

 

 
5

 
Segment EBIT
 
277

 
96

 
190

 
61

 
(4
)
 
620

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
12.0
%
 
5.6
%
 
13.1
%
 
6.0
%
 
 
 
12.2
%
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Three months ended July 3, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
1,504

 
$
1,538

 
$
933

 
$
553

 
$

 
$
4,528

 
Intersegment sales
 
498

 
6

 
346

 
368

 
(1,218
)
 

 
Total sales
 
2,002

 
1,544

 
1,279

 
921

 
(1,218
)
 
4,528

 
Depreciation and amortization (2)
 
41

 
29

 
32

 
29

 

 
131

 
Research, development and engineering expenses
 
53

 
3

 
51

 
48

 

 
155

 
Equity, royalty and interest income from investees
 
46

 
19

 
12

 
11

 

 
88

 
Loss contingency
 
39

 

 

 

 

 
39

 
Interest income
 
3

 
1

 
1

 
1

 

 
6

 
Segment EBIT
 
206

 
87

 
190

 
90

 
18

 
591

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
10.3
%
 
5.6
%
 
14.9
%
 
9.8
%
 
 
 
13.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 July 2, 2017 and July 3, 2016.
(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."

7

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In millions
 
Engine
 
Distribution
 
Components
 
Power Systems
 
Intersegment Eliminations (1)
 
Total
 
Six months ended July 2, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
3,168

 
$
3,353

 
$
2,044

 
$
1,102

 
$

 
$
9,667

 
Intersegment sales
 
1,162

 
14

 
754

 
797

 
(2,727
)
 

 
Total sales
 
4,330

 
3,367

 
2,798

 
1,899

 
(2,727
)
 
9,667

 
Depreciation and amortization (2)
 
90

 
61

 
75

 
57

 

 
283

 
Research, development and engineering expenses
 
117

 
8

 
107

 
100

 

 
332

 
Equity, royalty and interest income from investees
 
128

 
24

 
28

 
26

 

 
206

 
Interest income
 
3

 
2

 
1

 
1

 

 
7

 
Segment EBIT
 
506

 
196

 
369

 
118

 
(3
)
 
1,186

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
11.7
%
 
5.8
%
 
13.2
%
 
6.2
%
 
 
 
12.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended July 3, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
External sales
 
$
2,993

 
$
2,996

 
$
1,830

 
$
1,000

 
$

 
$
8,819

 
Intersegment sales
 
985

 
11

 
686

 
729

 
(2,411
)
 

 
Total sales
 
3,978

 
3,007

 
2,516

 
1,729

 
(2,411
)
 
8,819

 
Depreciation and amortization (2)
 
80

 
57

 
63

 
58

 

 
258

 
Research, development and engineering expenses
 
110

 
7

 
107

 
97

 

 
321

 
Equity, royalty and interest income from investees
 
82

 
37

 
20

 
21

 

 
160

 
Loss contingency
 
39

 

 

 

 

 
39

 
Interest income
 
5

 
2

  
2

 
3

 

 
12

 
Segment EBIT
 
403

 
174

 
353

 
136

 
9

 
1,075

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBIT as a percentage of total sales
 
10.1
%
 
5.8
%
 
14.0
%
 
7.9
%
 
 
 
12.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended July 2, 2017 and July 3, 2016.
(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 was $1 million for both of the six months ended July 2, 2017 and July 3, 2016.

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
 
Six months ended
In millions
 
July 2,
2017
 
July 3,
2016
 
July 2,
2017
 
July 3,
2016
Total segment EBIT
 
$
620

 
$
591

 
$
1,186

 
$
1,075

Less: Interest expense
 
21

 
16

 
39

 
35

Income before income taxes
 
$
599

 
$
575

 
$
1,147

 
$
1,040



8

CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)


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
 
Six months ended
In millions
 
July 2,
2017
 
July 3,
2016
 
July 2,
2017
 
July 3,
2016
Distribution entities
 
 
 
 
 
 
 
 
Komatsu Cummins Chile, Ltda.
 
$
8

 
$
8

 
$
15

 
$
18

North American distributors
 

 
6

 

 
11

All other distributors
 

 
1

 

 
1

Manufacturing entities
 
 

 
 
 
 

 
 
Beijing Foton Cummins Engine Co., Ltd.
 
22

 
22

 
55

 
40

Dongfeng Cummins Engine Company, Ltd.
 
19

 
15

 
41

 
22

Chongqing Cummins Engine Company, Ltd.
 
10

 
9

 
19

 
17

All other manufacturers
 
27

 
16

 
51

 
32

Cummins share of net income
 
86

 
77

 
181

 
141

Royalty and interest income
 
12

 
11

 
25

 
19

Equity, royalty and interest income from investees
 
$
98

 
$
88

 
$
206

 
$
160

 

9

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. 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, accounting principles generally accepted in the United States and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBIT for each of the applicable periods:
 
 
Three months ended
 
Six months ended
In millions
 
July 2, 2017
 
July 3, 2016
 
July 2, 2017
 
July 3, 2016
Net income attributable to Cummins Inc.
 
$
424

 
$
406

 
$
820

 
$
727

 
 
 
 
 
 
 
 
 
Net income attributable to Cummins Inc. as a percentage of net sales
 
8.3
%
 
9.0
%
 
8.5
%
 
8.2
%
 
 
 
 
 
 
 
 
 
Add
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
17

 
21

 
26

 
33

Consolidated net income
 
441

 
427

 
846

 
760

 
 
 
 
 
 
 
 
 
Add
 
 
 
 
 
 
 
 
Interest expense
 
21

 
16

 
39

 
35

Income tax expense
 
158

 
148

 
301

 
280

Earnings before interest expense and income taxes
 
$
620

 
$
591

 
$
1,186

 
$
1,075

 
 
 
 
 
 
 
 
 
EBIT as a percentage of net sales
 
12.2
%
 
13.1
%
 
12.3
%
 
12.2
%
 
 
 
 
 
 
 
 
 

10

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


Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2017
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
620

 
$
714

 
$

 
$

 
$
1,334

Medium-duty truck and bus
 
544

 
701

 

 

 
1,245

Light-duty automotive
 
423

 
429

 

 

 
852

Off-highway
 
436

 
463

 

 

 
899

Total sales
 
$
2,023

 
$
2,307

 
$

 
$

 
$
4,330

 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty truck
 
$
631

 
$
622

 
$
625

 
$
565

 
$
2,443

Medium-duty truck and bus
 
549

 
600

 
517

 
606

 
2,272

Light-duty automotive
 
433

 
394

 
345

 
409

 
1,581

Off-highway
 
363

 
386

 
372

 
387

 
1,508

Total sales
 
$
1,976

 
$
2,002

 
$
1,859

 
$
1,967

 
$
7,804

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2017
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty
 
19,200

 
24,100

 

 

 
43,300

Medium-duty
 
60,300

 
71,600

 

 

 
131,900

Light-duty
 
63,100

 
65,600

 

 

 
128,700

Total units
 
142,600

 
161,300

 

 

 
303,900

 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Heavy-duty
 
19,700

 
20,700

 
20,100

 
18,500

 
79,000

Medium-duty
 
55,400

 
62,300

 
53,400

 
58,000

 
229,100

Light-duty
 
61,700

 
57,100

 
49,800

 
60,000

 
228,600

Total units
 
136,800

 
140,100

 
123,300

 
136,500

 
536,700


11

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


Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2017
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts
 
$
745

 
$
759

 
$

 
$

 
$
1,504

Service
 
319

 
320

 

 

 
639

Power generation
 
306

 
329

 

 

 
635

Engines
 
275

 
314

 

 

 
589

Total sales
 
$
1,645

 
$
1,722

 
$

 
$

 
$
3,367

 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Parts
 
$
648

 
$
642

 
$
643

 
$
694

 
$
2,627

Service
 
299

 
297

 
299

 
320

 
1,215

Power generation
 
275

 
326

 
291

 
347

 
1,239

Engines
 
241

 
279

 
271

 
309

 
1,100

Total sales
 
$
1,463

 
$
1,544

 
$
1,504

 
$
1,670

 
$
6,181


Component Segment Sales by Business
In the first quarter of 2017, our Components segment reorganized its reporting structure to move an element of the emission solutions business to the fuel systems business to enhance operational, administrative and product development efficiencies. Prior year sales were reclassified to conform with this change.
Sales for our Components segment by product line were as follows:

2017
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission solutions
 
$
616

 
$
674

 
$

 
$

 
$
1,290

Turbo technologies
 
287

 
307

 

 

 
594

Filtration
 
277

 
291

 

 

 
568

Fuel systems
 
164

 
182

 

 

 
346

Total sales
 
$
1,344

 
$
1,454

 
$

 
$

 
$
2,798

 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Emission solutions
 
$
589

 
$
603

 
$
522

 
$
524

 
$
2,238

Turbo technologies
 
265

 
276

 
241

 
254

 
1,036

Filtration
 
252

 
262

 
244

 
252

 
1,010

Fuel systems
 
131

 
138

 
136

 
147

 
552

Total sales
 
$
1,237

 
$
1,279

 
$
1,143

 
$
1,177

 
$
4,836

 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
In millions
 
YTD
 
 
 
 
 
 
 
 
Emission solutions
 
$
2,449

 
 
 
 
 
 
 
 
Turbo technologies
 
1,141

 
 
 
 
 
 
 
 
Filtration
 
1,010

 
 
 
 
 
 
 
 
Fuel systems
 
572

 
 
 
 
 
 
 
 
Total sales
 
$
5,172

 
 
 
 
 
 
 
 

12

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


Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification
In the first quarter of 2017, our Power Systems segment reorganized its product lines to better reflect how the segment is managed. Prior year sales were reclassified to reflect these changes.
Sales for our Power Systems segment by product line were as follows:
2017
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
$
526

 
$
570

 
$

 
$

 
$
1,096

Industrial
 
275

 
353

 

 

 
628

Generator technologies
 
81

 
94

 

 

 
175

Total sales
 
$
882

 
$
1,017

 
$

 
$

 
$
1,899

 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
In millions
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
$
518

 
$
602

 
$
543

 
$
593

 
$
2,256

Industrial
 
215

 
236

 
235

 
255

 
941

Generator technologies
 
75

 
83

 
78

 
84

 
320

Total sales
 
$
808

 
$
921

 
$
856

 
$
932

 
$
3,517

 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
In millions
 
YTD
 
 
 
 
 
 
 
 
Power generation
 
$
2,588

 
 
 
 
 
 
 
 
Industrial
 
1,121

 
 
 
 
 
 
 
 
Generator technologies
 
358

 
 
 
 
 
 
 
 
Total sales
 
$
4,067

 
 
 
 
 
 
 
 
High-horsepower unit shipments by engine classification were as follows: 
2017
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
1,900

 
2,100

 

 

 
4,000

Industrial
 
1,300

 
1,700

 

 

 
3,000

Total units
 
3,200

 
3,800

 

 

 
7,000

 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
Units
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Power generation
 
1,800

 
2,200

 
2,000

 
1,900

 
7,900

Industrial
 
1,000

 
1,100

 
1,000

 
1,300

 
4,400

Total units
 
2,800

 
3,300

 
3,000

 
3,200

 
12,300




13