CUMMINS INC

For the period ended Mar 31, 2024. Filed May 2, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 2, 2024

CMI$454.18-2.6%Stored close · as of Nov 10, 2026

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Contents

ITEM 1. Condensed Consolidated Financial Statements (Unaudited)

ITEM 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

	Three months ended
	March 31,
In millions, except per share amounts	2024	2023
NET SALES (Notes 1 and 2)	$8,403	$8,453
Cost of sales	6,362	6,424
GROSS MARGIN	2,041	2,029
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	839	753
Research, development and engineering expenses	369	350
Equity, royalty and interest income from investees (Note 4)	123	119
Other operating expense, net	33	19
OPERATING INCOME	923	1,026
Interest expense	89	87
Other income, net (Note 14)	1,387	90
INCOME BEFORE INCOME TAXES	2,221	1,029
Income tax expense (Note 5)	193	223
CONSOLIDATED NET INCOME	2,028	806
Less: Net income attributable to noncontrolling interests	35	16
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$1,993	$790
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$14.10	$5.58
Diluted	$14.03	$5.55
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic	141.3	141.5
Dilutive effect of stock compensation awards	0.8	0.9
Diluted	142.1	142.4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended
	March 31,
In millions	2024	2023
CONSOLIDATED NET INCOME	$2,028	$806
Other comprehensive (loss) income, net of tax (Note 12)
Change in pension and other postretirement defined benefit plans	(13)	(9)
Foreign currency translation adjustments	(60)	82
Unrealized gain (loss) on derivatives	12	(3)
Total other comprehensive (loss) income, net of tax	(61)	70
COMPREHENSIVE INCOME	1,967	876
Less: Comprehensive income attributable to noncontrolling interests	32	19
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$1,935	$857

CONDENSED CONSOLIDATED BALANCE SHEETS

In millions, except par value	March 31,2024	December 31,2023
ASSETS
Current assets
Cash and cash equivalents	$2,541	$2,179
Marketable securities (Note 6)	510	562
Total cash, cash equivalents and marketable securities	3,051	2,741
Accounts and notes receivable, net	5,463	5,583
Inventories (Note 7)	5,758	5,677
Prepaid expenses and other current assets	1,348	1,197
Total current assets	15,620	15,198
Long-term assets
Property, plant and equipment	11,253	11,674
Accumulated depreciation	(5,242)	(5,425)
Property, plant and equipment, net	6,011	6,249
Investments and advances related to equity method investees	1,774	1,800
Goodwill	2,406	2,499
Other intangible assets, net	2,455	2,519
Pension assets (Note 3)	1,187	1,197
Other assets (Note 8)	2,374	2,543
Total assets	$31,827	$32,005
LIABILITIES
Current liabilities
Accounts payable (principally trade)	$4,476	$4,260
Loans payable (Note 9)	342	280
Commercial paper (Note 9)	609	1,496
Current maturities of long-term debt (Note 9)	113	118
Accrued compensation, benefits and retirement costs	561	1,108
Current portion of accrued product warranty (Note 10)	652	667
Current portion of deferred revenue (Note 2)	1,236	1,220
Other accrued expenses (Note 8)	3,697	3,754
Total current liabilities	11,686	12,903
Long-term liabilities
Long-term debt (Note 9)	5,771	4,802
Deferred revenue (Note 2)	1,061	966
Other liabilities (Note 8)	3,208	3,430
Total liabilities	$21,726	$22,101
Commitments and contingencies (Note 11)
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	$2,557	$2,564
Retained earnings	19,605	17,851
Treasury stock, at cost, 85.7 and 80.7 shares	(10,831)	(9,359)
Accumulated other comprehensive loss (Note 12)	(2,264)	(2,206)
Total Cummins Inc. shareholders’ equity	9,067	8,850
Noncontrolling interests	1,034	1,054
Total equity	$10,101	$9,904
Total liabilities and equity	$31,827	$32,005

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended
	March 31,
In millions	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$2,028	$806
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Gain related to divestiture of Atmus (Note 14)	(1,333)	—
Depreciation and amortization	265	246
Deferred income taxes	(38)	(38)
Equity in income of investees, net of dividends	(78)	(67)
Pension and OPEB expense (Note 3)	9	1
Pension contributions and OPEB payments (Note 3)	(48)	(92)
Changes in current assets and liabilities, net of acquisitions and divestitures
Accounts and notes receivable	(11)	(621)
Inventories	(354)	(263)
Other current assets	(175)	(142)
Accounts payable	327	381
Accrued expenses	(393)	151
Other, net	77	133
Net cash provided by operating activities	276	495
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(169)	(193)
Acquisition of business, net of cash acquired	(59)	—
Investments in marketable securities—acquisitions	(379)	(326)
Investments in marketable securities—liquidations (Note 6)	431	345
Cash associated with Atmus divestiture	(174)	—
Other, net	(56)	(54)
Net cash used in investing activities	(406)	(228)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	2,398	43
Net payments of commercial paper	(887)	(29)
Payments on borrowings and finance lease obligations	(748)	(142)
Dividend payments on common stock	(239)	(222)
Other, net	(25)	(13)
Net cash provided by (used in) financing activities	499	(363)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(7)	(25)
Net increase (decrease) in cash and cash equivalents	362	(121)
Cash and cash equivalents at beginning of year	2,179	2,101
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$2,541	$1,980

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

	Three months ended
In millions, except per share amounts · Redeemable Noncontrolling Interests · Common Stock · Additional Paid-in Capital · Retained Earnings · Treasury Stock · Accumulated Other Comprehensive Loss · Total Cummins Inc. Shareholders’ Equity · Noncontrolling Interests · Total Equity
BALANCE AT DECEMBER 31, 2023	$—	$556			$2,008			$17,851			$(9,359)			$(2,206)			$8,850			$1,054	$9,904
Net income					1,993							1,993			35			2,028
Other comprehensive loss, net of tax (Note 12)									(119)			(119)			(3)			(122)
Cash dividends on common stock, $1.68 per share					(239)							(239)			—			(239)
Distributions to noncontrolling interests											—			(33)			(33)
Share-based awards			(6)					60					54			—			54
Divestiture of Atmus (Note 14)							(1,532)			61			(1,471)			(19)			(1,490)
Other shareholder transactions			(1)									(1)			—			(1)
BALANCE AT MARCH 31, 2024	$—	$556			$2,001			$19,605			$(10,831)			$(2,264)			$9,067			$1,034	$10,101
BALANCE AT DECEMBER 31, 2022	$258	$556			$1,687			$18,037			$(9,415)			$(1,890)			$8,975			$992	$9,967
Net income	(8)					790							790			24			814
Other comprehensive income, net of tax (Note 12)									67			67			3			70
Cash dividends on common stock, $1.57 per share					(222)							(222)			—			(222)
Distributions to noncontrolling interests											—			(22)			(22)
Share-based awards			(5)					25					20			—			20
Fair value adjustment of redeemable noncontrolling interests	11			(11)									(11)			—			(11)
Other shareholder transactions			3					1					4			—			4
BALANCE AT MARCH 31, 2023	$261	$556			$1,674			$18,605			$(9,389)			$(1,823)			$9,623			$997	$10,620

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