CUMMINS INC
For the period ended Sep 30, 2024. Filed Nov 5, 2024.
View on SEC.govAbout 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.
Sep 30, 2024 · Filed Nov 5, 2024
CMI$454.18-2.6%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
ITEM 1. Condensed Consolidated Financial Statements (Unaudited)
ITEM 1. Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 |
| NET SALES (Notes 1 and 2) | $8,456 | $8,431 | $25,655 | $25,522 |
| Cost of sales | 6,285 | 6,360 | 19,250 | 19,274 |
| GROSS MARGIN | 2,171 | 2,071 | 6,405 | 6,248 |
| OPERATING EXPENSES AND INCOME | ||||
| Selling, general and administrative expenses | 807 | 831 | 2,474 | 2,457 |
| Research, development and engineering expenses | 359 | 376 | 1,107 | 1,110 |
| Equity, royalty and interest income from investees (Note 4) | 99 | 118 | 325 | 370 |
| Other operating expense, net | 54 | 32 | 131 | 78 |
| OPERATING INCOME | 1,050 | 950 | 3,018 | 2,973 |
| Interest expense | 83 | 97 | 281 | 283 |
| Other income, net (Note 14) | 76 | 25 | 1,504 | 166 |
| INCOME BEFORE INCOME TAXES | 1,043 | 878 | 4,241 | 2,856 |
| Income tax expense (Note 5) | 200 | 188 | 618 | 623 |
| CONSOLIDATED NET INCOME | 843 | 690 | 3,623 | 2,233 |
| Less: Net income attributable to noncontrolling interests | 34 | 34 | 95 | 67 |
| NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $809 | $656 | $3,528 | $2,166 |
| EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. | ||||
| Basic | $5.90 | $4.63 | $25.47 | $15.29 |
| Diluted | $5.86 | $4.59 | $25.31 | $15.19 |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||
| Basic | 137.2 | 141.8 | 138.5 | 141.7 |
| Dilutive effect of stock compensation awards | 0.9 | 1.0 | 0.9 | 0.9 |
| Diluted | 138.1 | 142.8 | 139.4 | 142.6 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| In millions | 2024 | 2023 | 2024 | 2023 |
| CONSOLIDATED NET INCOME | $843 | $690 | $3,623 | $2,233 |
| Other comprehensive income (loss), net of tax (Note 12) | ||||
| Change in pension and other postretirement defined benefit plans | 5 | 3 | 5 | (4) |
| Foreign currency translation adjustments | 165 | (163) | 22 | (191) |
| Unrealized (loss) gain on derivatives | (7) | 19 | 2 | 28 |
| Total other comprehensive income (loss), net of tax | 163 | (141) | 29 | (167) |
| COMPREHENSIVE INCOME | 1,006 | 549 | 3,652 | 2,066 |
| Less: Comprehensive income attributable to noncontrolling interests | 36 | 27 | 92 | 61 |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC. | $970 | $522 | $3,560 | $2,005 |
CONDENSED CONSOLIDATED BALANCE SHEETS
| In millions, except par value | September 30,2024 | December 31,2023 |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $1,733 | $2,179 |
| Marketable securities (Note 6) | 518 | 562 |
| Total cash, cash equivalents and marketable securities | 2,251 | 2,741 |
| Accounts and notes receivable, net | 5,387 | 5,583 |
| Inventories (Note 7) | 6,134 | 5,677 |
| Prepaid expenses and other current assets | 1,544 | 1,197 |
| Total current assets | 15,316 | 15,198 |
| Long-term assets | ||
| Property, plant and equipment | 11,603 | 11,674 |
| Accumulated depreciation | (5,427) | (5,425) |
| Property, plant and equipment, net | 6,176 | 6,249 |
| Investments and advances related to equity method investees | 1,922 | 1,800 |
| Goodwill | 2,412 | 2,499 |
| Other intangible assets, net | 2,462 | 2,519 |
| Pension assets (Note 3) | 1,208 | 1,197 |
| Other assets (Note 8) | 2,556 | 2,543 |
| Total assets | $32,052 | $32,005 |
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable (principally trade) | $4,206 | $4,260 |
| Loans payable (Note 9) | 441 | 280 |
| Commercial paper (Note 9) | 1,636 | 1,496 |
| Current maturities of long-term debt (Note 9) | 654 | 118 |
| Accrued compensation, benefits and retirement costs | 1,011 | 1,108 |
| Current portion of accrued product warranty (Note 10) | 685 | 667 |
| Current portion of deferred revenue (Note 2) | 1,225 | 1,220 |
| Other accrued expenses (Note 8) | 1,745 | 3,754 |
| Total current liabilities | 11,603 | 12,903 |
| Long-term liabilities | ||
| Long-term debt (Note 9) | 4,856 | 4,802 |
| Deferred revenue (Note 2) | 1,090 | 966 |
| Other liabilities (Note 8) | 3,162 | 3,430 |
| Total liabilities | $20,711 | $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 | $2,612 | $2,564 |
| Retained earnings | 20,660 | 17,851 |
| Treasury stock, at cost, 85.4 and 80.7 shares | (10,783) | (9,359) |
| Accumulated other comprehensive loss (Note 12) | (2,174) | (2,206) |
| Total Cummins Inc. shareholders’ equity | 10,315 | 8,850 |
| Noncontrolling interests | 1,026 | 1,054 |
| Total equity | $11,341 | $9,904 |
| Total liabilities and equity | $32,052 | $32,005 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine months ended | ||
|---|---|---|
| September 30, | ||
| In millions | 2024 | 2023 |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Consolidated net income | $3,623 | $2,233 |
| 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 | 794 | 760 |
| Deferred income taxes | (106) | (238) |
| Equity in income of investees, net of dividends | (74) | (100) |
| Pension and OPEB expense (Note 3) | 28 | 4 |
| Pension contributions and OPEB payments (Note 3) | (72) | (115) |
| Changes in current assets and liabilities, net of acquisitions and divestiture | ||
| Accounts and notes receivable | 109 | (447) |
| Inventories | (726) | (318) |
| Other current assets | (370) | (191) |
| Accounts payable | 27 | 43 |
| Accrued expenses (Notes 1 and 11) | (2,000) | 543 |
| Other, net | 165 | 333 |
| Net cash provided by operating activities | 65 | 2,507 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Capital expenditures | (668) | (694) |
| Acquisition of businesses, net of cash acquired (Note 15) | (58) | (127) |
| Investments in marketable securities—acquisitions | (1,062) | (976) |
| Investments in marketable securities—liquidations (Note 6) | 1,113 | 1,002 |
| Cash associated with Atmus divestiture | (174) | — |
| Other, net | (220) | (65) |
| Net cash used in investing activities | (1,069) | (860) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from borrowings | 2,623 | 779 |
| Net borrowings (payments) of commercial paper | 140 | (566) |
| Payments on borrowings and finance lease obligations | (1,386) | (391) |
| Dividend payments on common stock | (719) | (683) |
| Payments for purchase of redeemable noncontrolling interests (Note 15) | — | (175) |
| Other, net | (94) | (33) |
| Net cash provided by (used in) financing activities | 564 | (1,069) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (6) | (67) |
| Net (decrease) increase in cash and cash equivalents | (446) | 511 |
| Cash and cash equivalents at beginning of year | 2,179 | 2,101 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $1,733 | $2,612 |
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 JUNE 30, 2024 | $— | $556 | $2,026 | $20,101 | $(10,797) | $(2,335) | $9,551 | $1,025 | $10,576 | ||||||||
| Net income | 809 | 809 | 34 | 843 | |||||||||||||
| Other comprehensive income, net of tax (Note 12) | 161 | 161 | 2 | 163 | |||||||||||||
| Issuance of common stock | 7 | 7 | — | 7 | |||||||||||||
| Cash dividends on common stock, $1.82 per share | (250) | (250) | — | (250) | |||||||||||||
| Distributions to noncontrolling interests | — | (35) | (35) | ||||||||||||||
| Share-based awards | 2 | 13 | 15 | — | 15 | ||||||||||||
| Other shareholder transactions | 21 | 1 | 22 | — | 22 | ||||||||||||
| BALANCE AT SEPTEMBER 30, 2024 | $— | $556 | $2,056 | $20,660 | $(10,783) | $(2,174) | $10,315 | $1,026 | $11,341 | ||||||||
| BALANCE AT JUNE 30, 2023 | $— | $556 | $1,976 | $19,102 | $(9,380) | $(1,917) | $10,337 | $1,019 | $11,356 | ||||||||
| Net income | 656 | 656 | 34 | 690 | |||||||||||||
| Other comprehensive loss, net of tax (Note 12) | (134) | (134) | (7) | (141) | |||||||||||||
| Issuance of common stock | 1 | 1 | — | 1 | |||||||||||||
| Cash dividends on common stock, $1.68 per share | (238) | (238) | — | (238) | |||||||||||||
| Distributions to noncontrolling interests | — | (26) | (26) | ||||||||||||||
| Share-based awards | 3 | 10 | 13 | — | 13 | ||||||||||||
| Other shareholder transactions | 22 | 1 | 23 | — | 23 | ||||||||||||
| BALANCE AT SEPTEMBER 30, 2023 | $— | $556 | $2,002 | $19,520 | $(9,369) | $(2,051) | $10,658 | $1,020 | $11,678 | ||||||||
| Nine months ended | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In millions, except per share amounts · Redeemable Noncontrolling Interests · CommonStock · Additional Paid-inCapital · RetainedEarnings · TreasuryStock · AccumulatedOtherComprehensiveLoss · TotalCummins Inc.Shareholders’Equity · NoncontrollingInterests · TotalEquity | |||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2023 | $— | $556 | $2,008 | $17,851 | $(9,359) | $(2,206) | $8,850 | $1,054 | $9,904 | ||||||||||||
| Net income | 3,528 | 3,528 | 95 | 3,623 | |||||||||||||||||
| Other comprehensive loss, net of tax (Note 12) | (29) | (29) | (3) | (32) | |||||||||||||||||
| Issuance of common stock | 8 | 8 | — | 8 | |||||||||||||||||
| Cash dividends on common stock, $5.18 per share | (719) | (719) | — | (719) | |||||||||||||||||
| Distributions to noncontrolling interests | — | (68) | (68) | ||||||||||||||||||
| Share-based awards | (6) | 106 | 100 | — | 100 | ||||||||||||||||
| Divestiture of Atmus (Note 14) | (1,532) | 61 | (1,471) | (19) | (1,490) | ||||||||||||||||
| Other shareholder transactions | 46 | 2 | 48 | (33) | 15 | ||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2024 | $— | $556 | $2,056 | $20,660 | $(10,783) | $(2,174) | $10,315 | $1,026 | $11,341 | ||||||||||||
| BALANCE AT DECEMBER 31, 2022 | $258 | $556 | $1,687 | $18,037 | $(9,415) | $(1,890) | $8,975 | $992 | $9,967 | ||||||||||||
| Net income | (20) | 2,166 | 2,166 | 87 | 2,253 | ||||||||||||||||
| Other comprehensive loss, net of tax (Note 12) | (161) | (161) | (6) | (167) | |||||||||||||||||
| Issuance of common stock | 3 | 3 | — | 3 | |||||||||||||||||
| Cash dividends on common stock, $4.82 per share | (683) | (683) | — | (683) | |||||||||||||||||
| Distributions to noncontrolling interests | — | (50) | (50) | ||||||||||||||||||
| Share-based awards | (1) | 42 | 41 | — | 41 | ||||||||||||||||
| Fair value adjustment of redeemable noncontrolling interests | 33 | (33) | (33) | — | (33) | ||||||||||||||||
| Acquisition of redeemable noncontrolling interests (Note 15) | (271) | — | — | — | |||||||||||||||||
| Sale of Atmus stock (Note 14) | 285 | 285 | (3) | 282 | |||||||||||||||||
| Other shareholder transactions | 61 | 4 | 65 | — | 65 | ||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2023 | $— | $556 | $2,002 | $19,520 | $(9,369) | $(2,051) | $10,658 | $1,020 | $11,678 | ||||||||||||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.