CUMMINS INC

Previous wording

As disclosed in Part I,“Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, we operate our business on a global basis and changes in international, national and regional trade laws, regulations and policies affecting and/or restricting international trade, including higher tariffs, trade disruptions (such as embargoes, sanctions and export controls) and broader geopolitical tensions, could adversely impact the demand for our products and our competitive position. In 2025, the U.S. imposed tariffs on certain countries and products, which was followed by retaliatory tariffs and other trade actions against U.S. goods and services. On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the U.S. were unauthorized. After this ruling, new tariffs were subsequently imposed under different statutes. The global trade environment has contributed to ongoing market volatility and heightened concerns about potential economic impacts. Our primary risks include reduced global movement of goods impacting freight activity, increased costs for suppliers and end-users and uncertainty around supply availability. These factors could lead to a decline in business confidence, reduced demand for our products and increased product costs. We continue to pursue mitigation strategies, including engaging with our suppliers, exploring alternative sourcing and negotiating agreements with our customers to recover tariff-related costs. The financial impact of tariffs, net of mitigation actions and U.S. government tariff refunds (net of amounts to be returned to customers), was immaterial to our profitability and operating cash flows during the first quarter of 2026. However, continued and increasing tariff costs, the effectiveness of our mitigation efforts and ongoing market volatility could materially and adversely affect our results of operations, financial condition and cash flows in the future. We continue to monitor developments and take actions to minimize the related impacts to our business to the extent possible. See the “OUTLOOK” section for a discussion of the potential tariff impacts for the remainder of 2026.

Current wording

As disclosed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, we operate our business on a global basis and changes in international, national and regional trade laws, regulations and policies affecting and/or restricting international trade, including higher tariffs, trade disruptions (such as embargoes, sanctions and export controls) and broader geopolitical tensions, could adversely impact the demand for our products and our competitive position. In 2025, the U.S. imposed tariffs on certain countries and products, which was followed by retaliatory tariffs and other trade actions against U.S. goods and services. On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the U.S. were unauthorized. After this ruling, new tariffs were subsequently imposed under different statutes. The global trade environment has contributed to ongoing market volatility and heightened concerns about potential economic impacts. Our primary risks include reduced global movement of goods impacting freight activity, increased costs for suppliers and end-users and uncertainty around supply availability. These factors could lead to a decline in business confidence, reduced demand for our products and increased product costs. We continue to pursue mitigation strategies, including engaging with our suppliers, exploring alternative sourcing and negotiating agreements with our customers to recover tariff-related costs. The financial impact of tariffs, net of mitigation actions and U.S. government tariff refunds (net of amounts to be returned to customers), was immaterial to our profitability and operating cash flows during the three and six months ended June 30, 2026. However, continued and increasing tariff costs, the effectiveness of our mitigation efforts and ongoing market volatility could materially and adversely affect our results of operations, financial condition and cash flows in the future. We continue to monitor developments and take actions to minimize the related impacts to our business to the extent possible. See the “OUTLOOK” section for a discussion of the potential tariff impacts for the remainder of 2026.

Previous wording

Net income attributable to Cummins Inc. was $654 million, or $4.71 per diluted share, on sales of $8.4 billion for the three months ended March 31, 2026, versus the comparable prior year period net income attributable to Cummins Inc. of $824 million, or $5.96 per diluted share, on sales of $8.2 billion. The decreases in net income attributable to Cummins Inc. and earnings per diluted share were driven by the loss on sale of business and settlement of current and future customer obligations as well as higher compensation costs, partially offset by improved gross margin and favorable foreign currency fluctuations (primarily in the Euro). See NOTE 14, “REPORTABLE SEGMENTS,” to our Condensed Consolidated Financial Statements for additional information on loss on sale of business and settlement of current and future customer obligations.

Current wording

Net income attributable to Cummins Inc. was $1.6 billion, or $11.44 per diluted share, on sales of $17.9 billion for the six months ended June 30, 2026, versus the comparable prior year period net income attributable to Cummins Inc. of $1.7 billion, or $12.38 per diluted share, on sales of $16.8 billion. The decreases in net income attributable to Cummins Inc. and earnings per diluted share were primarily driven by the loss on sale of business and settlement of current and future customer obligations as well as higher compensation costs, partially offset by higher sales leading to improved gross margin and favorable currency fluctuations (mainly in the Euro and Brazilian real). Diluted earnings per common share for the six months ended June 30, 2026, benefited $0.03 from fewer weighted-average shares outstanding due to stock repurchase programs. See NOTE 14, “REPORTABLE SEGMENTS,” to our Condensed Consolidated Financial Statements for additional information on loss on sale of business and settlement of current and future customer obligations.

Previous wording

Worldwide revenues increased by 3 percent in the three months ended March 31, 2026, compared to the same period in 2025, primarily due to higher demand in power generation markets, especially data center and commercial markets, partially offset by weaker demand in on-highway commercial truck markets. International sales (excludes the U.S. and Canada) improved 16 percent primarily due to higher sales in China and Europe. The increase in international sales was primarily due to higher power generation demand and favorable foreign currency fluctuation impacts of 5 percent (primarily the Euro and Chinese renminbi). Net sales in the U.S. and Canada declined 6 percent primarily due to lower demand in medium-duty and heavy-duty truck markets, partially offset by higher sales in power generation markets.

Current wording

Worldwide revenues increased by 6 percent in the six months ended June 30, 2026, compared to the same period in 2025, mainly due to higher demand for power generation equipment, especially in data center and commercial applications, and in international construction markets, partially offset by lower demand in most on-highway markets. International sales (excludes the U.S. and Canada) improved 14 percent primarily due to higher sales in China, Europe and Asia Pacific. The increase in international sales was driven by higher demand for power generation equipment and in construction markets as well as favorable foreign currency fluctuations of 4 percent (primarily the Euro and Chinese renminbi). Net sales in the U.S. and Canada improved 1 percent mainly due to higher demand for power generation equipment, partially offset by lower demand in most on-highway markets.

Previous wording

The following table contains sales and EBITDA (defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests) by reportable segment for the three months ended March 31, 2026 and 2025. See NOTE 14, “REPORTABLE SEGMENTS,” to our Condensed Consolidated Financial Statements for additional information and a reconciliation of our segment information to the corresponding amounts in our Condensed Consolidated Statements of Net Income.

Current wording

The following tables contain sales and EBITDA (defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests) by reportable segment for the three and six months ended June 30, 2026 and 2025. See NOTE 14, “REPORTABLE SEGMENTS,” to our Condensed Consolidated Financial Statements for additional information and a reconciliation of our segment information to the corresponding amounts in our Condensed Consolidated Statements of Net Income.

Previous wording

We generated $309 million in cash from operations for the three months ended March 31, 2026, compared to using $3 million for the comparable period in 2025. See the section titled “Cash Flows” in the “LIQUIDITY AND CAPITAL RESOURCES” section for a discussion of items impacting cash flows.

Current wording

We generated $1,808 million in cash from operations for the six months ended June 30, 2026, compared to $782 million for the comparable period in 2025. See the section titled “Cash Flows” in the “LIQUIDITY AND CAPITAL RESOURCES” section for a discussion of items impacting cash flows.

Previous wording

Our debt to capital ratio (total capital defined as debt plus equity) at March 31, 2026, was 36.5 percent, compared to 36.0 percent at December 31, 2025. The increase was primarily due to a higher debt balance since December 31, 2025. At March 31, 2026, we had $3.2 billion in cash and marketable securities on hand and access to our $4.0 billion credit facilities (net of $349 million of commercial paper outstanding), if necessary, to meet working capital, investment, acquisition and funding needs.

Current wording

Our debt to capital ratio (total capital defined as debt plus equity) at June 30, 2026, was 35.6 percent, compared to 36.0 percent at December 31, 2025. The decrease was primarily due to an increased equity balance from strong earnings since December 31, 2025, partially offset by a higher total debt balance at June 30, 2026. At June 30, 2026, we had $3.9 billion in cash and marketable securities on hand and access to our $4.0 billion credit facilities (net of $348 million of commercial paper outstanding), if necessary, to meet working capital, investment, acquisition and funding needs.

Previous wording

In the first quarter of 2026, we repurchased $243 million, or 0.5 million shares, of common stock.

Current wording

In the first half of 2026, we repurchased $468 million, or 0.8 million shares, of common stock.

Previous wording

In January 2026, we entered into a series of interest rates swaps to convert $150 million of our senior notes, due in 2054, from a fixed rate of 5.45 percent to a floating rate equal to the daily Secured Overnight Financing Rate (SOFR) plus a spread. See NOTE 13, “DERIVATIVES,” to our Condensed Consolidated Financial Statements.

Current wording

In the first half of 2026, we entered into a series of interest rates swaps to convert $350 million of our senior notes, due in 2054, from a fixed rate of 5.45 percent to a floating rate equal to the daily Secured Overnight Financing Rate (SOFR) plus a spread. See NOTE 13, “DERIVATIVES,” to our Condensed Consolidated Financial Statements.

Previous wording

Net sales for the three months ended March 31, 2026, increased by $224 million versus the comparable period in 2025. The primary drivers were as follows:

Current wording

Net sales for the three months ended June 30, 2026, increased by $814 million versus the comparable period in 2025. The primary drivers were as follows:

Previous wording

•Power Systems segment sales increased 19 percent primarily due to higher demand in power generation markets, especially in China and North America.

Current wording

•Power Systems segment sales increased 19 percent primarily due to higher demand for power generation equipment, especially in China and North America.

Previous wording

•Engine segment sales decreased 4 percent largely due to lower demand in North American medium-duty and heavy-duty truck markets.

Current wording

•Engine segment sales increased 6 percent largely due to higher demand in construction markets in China and medium-duty truck markets in North America.

Previous wording

Gross margin increased $88 million for the three months ended March 31, 2026, and increased 0.3 points as a percentage of net sales versus the comparable period in 2025. The increases in gross margin and gross margin as a percentage of sales were primarily due to favorable pricing, improved mix and favorable foreign currency impacts (primarily in the Euro and Brazilian real), partially offset by increased compensation expenses. The net impact of tariff costs and related recoveries was immaterial for the three month period ended March 31, 2026.

Current wording

Gross margin increased $184 million for the three months ended June 30, 2026, and decreased 0.3 points as a percentage of net sales versus the comparable period in 2025. The increase in gross margin was primarily due to higher volumes and favorable pricing, partially offset by increased compensation expenses. Gross margin as a percentage of sales decreased due to higher compensation expenses. The net impact of tariff costs and related recoveries was immaterial for the three month period ended June 30, 2026.

Previous wording

The provision for base warranties issued as a percentage of sales for the three months ended March 31, 2026, was 1.9 percent compared to 1.9 percent for the comparable period in 2025.

Current wording

The provision for base warranties issued as a percentage of sales for the three and six months ended June 30, 2026, was 1.9 percent and 1.9 percent, respectively, compared to 1.9 percent and 1.9 percent for the comparable periods in 2025.

Previous wording

Selling, general and administrative expenses increased $74 million for the three months ended March 31, 2026, and increased 0.7 points as a percentage of net sales versus the comparable period in 2025. The increases were mainly due to higher compensation expenses. Compensation and related expenses included salaries, fringe benefits and variable compensation.

Current wording

Selling, general and administrative expenses increased $114 million and $188 million and increased 0.4 points and 0.5 points as a percentage of net sales, respectively, for the three and six months ended June 30, 2026, versus the comparable periods in 2025. The increases were primarily due to higher compensation expenses and increased consulting costs. Compensation and related expenses included salaries, fringe benefits and variable compensation.

Previous wording

Research, development and engineering expenses increased $14 million for the three months ended March 31, 2026, and increased 0.1 points as a percentage of net sales versus the comparable period in 2025. The increases were mainly due to higher compensation expenses. Compensation and related expenses included salaries, fringe benefits and variable compensation.

Current wording

Research, development and engineering expenses increased $28 million and $42 million for the three and six months ended June 30, 2026, respectively, versus the comparable periods in 2025, primarily due to higher compensation expenses. Compensation and related expenses included salaries, fringe benefits and variable compensation. Overall research, development and engineering expenses as a percentage of net sales remained flat for both the three and six months ended June 30, 2026 versus the comparable periods in 2025.

Previous wording

Equity, royalty and interest income from investees increased $17 million for the three months ended March 31, 2026, versus the comparable period in 2025, primarily due to increased earnings at Beijing Foton Cummins Engine Co., Ltd., Chongqing Cummins Engine Co., Ltd., Dongfeng Cummins Engine Co., Ltd., Guangxi Cummins Industrial Power Co., Ltd. and Xian Cummins Engine Company Limited, partially offset by lower royalty and interest income from investees.

Current wording

Equity, royalty and interest income from investees increased $36 million for the three months ended June 30, 2026, versus the comparable period in 2025, primarily due to increased earnings at Dongfeng Cummins Engine Co., Ltd., Chongqing Cummins Engine Co., Ltd., Beijing Foton Cummins Engine Co., Ltd., Komatsu Cummins Chile, Ltda. and higher royalty and interest income from investees.

Previous wording

The three months ended March 31, 2026, had an unfavorable discrete tax impact due to the $199 million loss on sale of business and settlement of current and future customer obligations for which no tax benefit was recognized. Other discrete items were net favorable by $7 million. See NOTE 14, “REPORTABLE SEGMENTS,” to our Condensed Consolidated Financial Statements for additional information on loss on sale and settlement of current and future customer obligations.

Current wording

The six months ended June 30, 2026, had an unfavorable discrete tax impact due to the $199 million loss on sale of business and settlement of current and future customer obligations for which no tax benefit was recognized. Other discrete items were net unfavorable $22 million, primarily due to $23 million of unfavorable return to provision adjustments, partially offset by $1 million of other net favorable discrete tax items. See NOTE 14, “REPORTABLE SEGMENTS,” to our Condensed Consolidated Financial Statements for additional information on loss on sale of business and settlement of current and future customer obligations.

Previous wording

The three months ended March 31, 2025, contained net favorable discrete tax items of $7 million, primarily due to $8 million of favorable share-based compensation tax benefits, partially offset by $1 million of other unfavorable adjustments.

Current wording

The three months ended June 30, 2025, contained net favorable discrete tax items of $3 million, primarily due to $4 million of favorable adjustments for uncertain tax positions, partially offset by $1 million of other unfavorable adjustments.

Previous wording

The foreign currency translation adjustment was a net loss of $109 million for the three months ended March 31, 2026, compared to a net gain of $117 million for the three months ended March 31, 2025, driven by the following:

Current wording

The foreign currency translation adjustment was a net gain of $23 million and a net loss of $86 million for the three and six months ended June 30, 2026, respectively, compared to a net gain of $197 million and $314 million for the three and six months ended June 30, 2025, respectively, driven by the following:

Previous wording

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

Current wording

Total engine shipments by engine classification, including on and off-highway units, were as follows:

Previous wording

These decreases were partially offset by an increase in off-highway sales of $111 million principally due to higher international construction demand, especially in China.

Current wording

•Off-highway sales increased $108 million primarily due to higher international construction demand, especially in China.

Previous wording

•Medium-duty truck and bus sales decreased $115 million primarily due to lower truck demand, especially in North America with shipments down 25 percent.

Current wording

•Medium-duty truck and bus sales increased $80 million primarily due to higher truck demand, especially in North America, with shipments up 15 percent.

Previous wording

Engine segment EBITDA for the three months ended March 31, 2026, decreased $179 million versus the comparable period in 2025, primarily due to lower volumes, higher compensation expenses and increased product coverage costs.

Current wording

Engine segment EBITDA for the three months ended June 30, 2026, decreased $14 million versus the comparable period in 2025, primarily due to higher compensation expenses and increased freight costs, partially offset by improved tariff recovery.

Previous wording

These increases were partially offset by the following:

Current wording

These increases were offset by the following decreases:

Previous wording

•Drivetrain and braking systems sales decreased $137 million mainly due to lower demand in North America and lower sales in India due to changes in our business model.

Current wording

•Drivetrain and braking systems sales decreased $110 million mainly due to lower demand in India and North America.

Previous wording

•Automated transmissions sales decreased $29 million primarily due to lower demand in North America.

Current wording

•Automated transmissions sales decreased $28 million primarily due to lower demand in North America and China.

Previous wording

Components segment EBITDA for the three months ended March 31, 2026, decreased $45 million versus the comparable period in 2025, mainly due to lower volumes and higher material costs, partially offset by favorable pricing.

Current wording

Components segment EBITDA for the three months ended June 30, 2026, decreased $16 million versus the comparable period in 2025, mainly due to increased product coverage costs and higher compensation expenses, partially offset by favorable pricing.

Previous wording

Distribution segment sales for the three months ended March 31, 2026, increased $209 million versus the comparable period in 2025, primarily due to increased demand in power generation markets in North America and Asia Pacific, especially in data center and commercial markets, and favorable foreign currency fluctuations, primarily in the Euro, Australian dollar and Canadian dollar.

Current wording

Distribution segment sales for the six months ended June 30, 2026, increased $494 million versus the comparable period in 2025, mainly due to increased demand in power generation equipment in North America, especially in data center and commercial applications.

Previous wording

Distribution segment EBITDA for the three months ended March 31, 2026, increased $68 million versus the comparable period in 2025, primarily due to favorable mix and increased volumes, partially offset by higher compensation expenses.

Current wording

Distribution segment EBITDA for the six months ended June 30, 2026, increased $74 million versus the comparable period in 2025, primarily due to favorable mix and increased volumes, partially offset by higher compensation expenses.

Previous wording

Power Systems segment sales for the three months ended March 31, 2026, increased $307 million versus the comparable period in 2025, primarily due toincreased power generation sales of $282 million resulting from higher demand in China and North America.

Current wording

Power Systems segment sales for the three and six months ended June 30, 2026, increased $366 million and $673 million, respectively, versus the comparable periods in 2025, primarily due toincreased power generation sales resulting from higher demand in China and North America.

Previous wording

Power Systems segment EBITDA for the three months ended March 31, 2026, increased $188 million versus the comparable period in 2025, mainly due to higher volumes, improved operational leverage, lower net tariff costs and favorable pricing.

Current wording

Power Systems segment EBITDA for the six months ended June 30, 2026, increased $310 million versus the comparable period in 2025, mainly due to higher volumes and improved operational leverage.

Previous wording

Accelera segment sales for the three months ended March 31, 2026, decreased $2 million versus the comparable period in 2025, mainly due to lower sales for electrified powertrains, partially offset by increased sales for electrolyzers.

Current wording

Accelera segment sales for the three months ended June 30, 2026, increased $40 million versus the comparable period in 2025, mainly due to higher sales for electrified powertrains and electrolyzers.

Previous wording

On March 31, 2026, we sold our low pressure fuel cell business to a customer, cancelled future commitments and resolved certain claims against us with that customer resulting in a net payment by us of $175 million. These transactions resulted in a net charge of $199 million which is reflected in other operating expense, net in our Condensed Consolidated Statements of Net Income.

Current wording

In the first quarter of 2026, we sold our low pressure fuel cell business to a customer, cancelled future commitments and resolved certain claims against us with that customer resulting in a net payment by us of $175 million. These transactions resulted in a net charge of $199 million which is reflected in other operating expense, net in our Condensed Consolidated Statements of Net Income.

Previous wording

•We expect demand for medium-duty and heavy-duty trucks in North America to begin improving over the remainder of 2026.

Current wording

•We expect strong demand for medium-duty and heavy-duty trucks in North America to continue for the remainder of 2026.

Previous wording

•Our engines are subject to extensive statutory and regulatory requirements governing emissions, including greenhouse gas (GHG) standards set by the EPA and fuel consumption standards set by the National Highway Traffic Safety Administration (NHTSA). To comply with these regulations, we utilize banking and trading of regulatory compliance credits. In June 2025, NHTSA published an interpretive rule questioning the current regulatory framework of allowing credits as a compliance vehicle. In July 2025, the EPA published a proposed rule that would repeal GHG emissions standards and thus remove the requirement for vehicle and engine manufacturers to measure, control and report these emissions from vehicles. In February 2026, the EPA finalized the rescission of the 2009 Greenhouse Gas Endangerment Finding and repealed all GHG emission standards for on-highway vehicles and engines with an effective date of April 20, 2026. NHTSA rules currently still allow credits as a compliance vehicle. Depending on NHTSA's future rulemaking as indicated by the June 2025 interpretive rule, we may no longer utilize emission compliance credits on future engines sales and the credits could have a minimal, if any value to us. While the rules will likely be subject to legal challenges, in the period NHTSA finalizes a rule, we could be required to incur a non-cash expense up to the value of our existing credits. At March 31, 2026, we had $99 million of emission compliance credits.

Current wording

•Our engines are subject to extensive statutory and regulatory requirements governing emissions, including greenhouse gas (GHG) standards set by the EPA and fuel consumption standards set by the National Highway Traffic Safety Administration (NHTSA). To comply with these regulations, we utilize banking and trading of regulatory compliance credits. In June 2025, NHTSA published an interpretive rule questioning the current regulatory framework of allowing credits as a compliance vehicle. In July 2025, the EPA published a proposed rule that would repeal GHG emissions standards and thus remove the requirement for vehicle and engine manufacturers to measure, control and report these emissions from vehicles. In February 2026, the EPA finalized the rescission of the 2009 Greenhouse Gas Endangerment Finding and repealed all GHG emission standards for on-highway vehicles and engines with an effective date of April 20, 2026. NHTSA rules currently still allow credits as a compliance vehicle. Depending on NHTSA's future rulemaking as indicated by the June 2025 interpretive rule, we may no longer utilize emission compliance credits on future engines sales and the credits could have a minimal, if any value to us. While the rules will likely be subject to legal challenges, in the period NHTSA finalizes a rule, we could be required to incur a non-cash expense up to the value of our existing credits. At June 30, 2026, we had $89 million of GHG emission compliance credits.

Previous wording

Net cash provided by operating activities increased $312 million for the three months ended March 31, 2026, versus the comparable period in 2025, primarily due to lower working capital requirements of $382 million. The lower working capital requirements resulted in a cash outflow of $599 million compared to a cash outflow of $981 million in the comparable period of 2025, mainly due to favorable changes in accrued expenses and accounts payable, partially offset by unfavorable changes in accounts and notes receivable.

Current wording

Net cash provided by operating activities increased $1,026 million for the six months ended June 30, 2026, versus the comparable period in 2025, primarily due to lower working capital requirements of $970 million. The lower working capital requirements resulted in a cash outflow of $377 million compared to a cash outflow of $1,347 million in the comparable period of 2025, mainly due to favorable changes in accounts payable and accrued expenses, partially offset by unfavorable changes in inventories.

Previous wording

Net cash used in investing activities decreased $236 million for the three months ended March 31, 2026, versus the comparable period in 2025, primarily due to lower net investments in marketable securities.

Current wording

Net cash used in investing activities decreased $186 million for the six months ended June 30, 2026, versus the comparable period in 2025, primarily due to lower net investments in marketable securities.

Previous wording

Net cash used in financing activities increased $609 million for the three months ended March 31, 2026, versus the comparable period in 2025, primarily due to decreased net borrowings of commercial paper of $485 million and higher repurchases of common stock of $243 million, partially offset by increased proceeds from borrowings of $161 million.

Current wording

Net cash used in financing activities increased $1,465 million for the six months ended June 30, 2026, versus the comparable period in 2025, primarily due to lower proceeds from borrowings of $1,826 million and higher repurchases of common stock of $468 million, partially offset by lower payments of commercial paper of $901 million.

Previous wording

The effect of exchange rate changes on cash and cash equivalents for the three months ended March 31, 2026, versus the comparable period in 2025, declined $31 million primarily due to unfavorable fluctuations in the British pound and Euro.

Current wording

The effect of exchange rate changes on cash and cash equivalents for the six months ended June 30, 2026, versus the comparable period in 2025, declined $61 million primarily due to unfavorable fluctuations in the British pound and Euro.

Previous wording

Our committed credit facilities also provide access up to $4.0 billion of unsecured, short-term promissory notes (commercial paper) pursuant to the Board of Directors (the Board) authorized commercial paper programs. These programs facilitate the private placement of unsecured short-term debt through third-party brokers. We intend to use the net proceeds from the commercial paper borrowings for general corporate purposes. The total combined borrowing capacity under the revolving credit facilities and commercial paper programs should not exceed $4.0 billion. At March 31, 2026, we had $349 million of commercial paper outstanding, which effectively reduced our available capacity under our revolving credit facilities to $3.7 billion. See NOTE 9, “DEBT,” to our Condensed Consolidated Financial Statements for additional information.

Current wording

Our committed credit facilities also provide access up to $4.0 billion of unsecured, short-term promissory notes (commercial paper) pursuant to the Board authorized commercial paper programs. These programs facilitate the private placement of unsecured short-term debt through third-party brokers. We intend to use the net proceeds from the commercial paper borrowings for general corporate purposes. The total combined borrowing capacity under the revolving credit facilities and commercial paper programs should not exceed $4.0 billion. At June 30, 2026, we had $348 million of commercial paper outstanding, which effectively reduced our available capacity under our revolving credit facilities to $3.7 billion. See NOTE 9, “DEBT,” to our Condensed Consolidated Financial Statements for additional information.