OPERATING SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Financial information regarding reportable operating segments

Summarized financial information regarding our reportable operating segments for the three months ended is shown in the table below:


In millions	Engine			Distribution		Components		Power Systems		New Power		Total Segments
Three months ended March 31, 2022
External sales	$	2,049		$	2,111	$	1,517	$	683	$	25	$	6,385
Intersegment sales	704			6		471		477		6		1,664
Total sales	2,753			2,117		1,988		1,160		31		8,049



Research, development and engineering expenses	109			13		76		64		36		298
Equity, royalty and interest income (loss) from investees	44		(1)	16		28		11		(3)		96

Interest income	4			2		1		1		—		8

Russian suspension costs(2)	32		(3)	100		6		20		—		158

Segment EBITDA	392			110		320		90		(67)		845
Depreciation and amortization(4)	51			28		43		31		7		160



Three months ended April 4, 2021
External sales	$	1,895		$	1,827	$	1,724	$	612	$	34	$	6,092
Intersegment sales	564			8		428		410		1		1,411
Total sales	2,459			1,835		2,152		1,022		35		7,503



Research, development and engineering expenses	92			13		75		57		23		260
Equity, royalty and interest income from investees	113			17		19		12		5		166

Interest income	3			1		1		1		—		6
Segment EBITDA	354			160		421		126		(51)		1,010
Depreciation and amortization(4)	51			30		48		35		5		169






(1) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. See Note 3, "RUSSIAN OPERATIONS" to our Condensed Consolidated Financial Statements for additional information.
(2) See Note 3, "RUSSIAN OPERATIONS" to our Condensed Consolidated Financial Statements for additional information.
(3) Includes $31 million of Russian suspension costs reflected in the Equity, royalty and interest income (loss) from investees line above.
(4) 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 Net Income as Interest expense. The amortization of debt discount and deferred costs was $1 million and $1 million for the three months ended March 31, 2022 and April 4, 2021, respectively. A portion of depreciation expense is included in Research, development and engineering expenses.

Reconciliation of Revenue from Segments to Consolidated

A reconciliation of our total segment sales to total net sales in the Condensed Consolidated Statements of Net Income was as follows:


	Three months ended
In millions	March 31, 2022		April 4, 2021
Total segment sales	$	8,049	$	7,503
Elimination of intersegment sales	(1,664)		(1,411)
Total net sales	$	6,385	$	6,092

Reconciliation of segment information

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:


	Three months ended
In millions	March 31, 2022		April 4, 2021
TOTAL SEGMENT EBITDA	$	845	$	1,010

Intersegment eliminations and other (1)	(90)		(30)

Less:
Interest expense	17		28
Depreciation and amortization	160		169
INCOME BEFORE INCOME TAXES	578		783
Less: Income tax expense	155		172
CONSOLIDATED NET INCOME	423		611
Less: Net income attributable to noncontrolling interests	5		8
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	418	$	603

(1)Intersegment eliminations and other for the three months ended March 31, 2022, included $17 million of costs associated with the planned separation of our Filtration business.