OPERATING SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Summarized financial information regarding our reportable operating segments at December 31, is shown in the table below:



In millions	Engine		Distribution		Components		Power Systems		New Power		Total Segments
2021
External sales	$	7,589	$	7,742	$	5,932	$	2,650	$	108	$	24,021
Intersegment sales	2,365		30		1,733		1,765		8		5,901
Total sales	9,954		7,772		7,665		4,415		116		29,922
Research, development and engineering expenses	399		48		307		234		102		1,090
Equity, royalty and interest income (loss) from investees	340		63		50		56		(3)		506
Interest income	8		7		5		5		—		25





Segment EBITDA	1,411		731		1,180		496		(223)		3,595
Depreciation and amortization (1)	205		116		183		131		24		659
Net assets	1,554		2,294		2,938		2,251		602		9,639
Investments and advances to equity investees	742		329		254		164		49		1,538
Capital expenditures	341		92		184		80		37		734
2020
External sales	$	5,925	$	7,110	$	4,650	$	2,055	$	71	$	19,811
Intersegment sales	2,097		26		1,374		1,576		1		5,074
Total sales	8,022		7,136		6,024		3,631		72		24,885
Research, development and engineering expenses	290		31		264		212		109		906
Equity, royalty and interest income (loss) from investees	312		62		61		21		(4)		452
Interest income	9		4		4		4		—		21






Segment EBITDA	1,235		665		961		343		(172)		3,032
Depreciation and amortization (1)	208		122		192		130		18		670
Net assets	1,306		2,444		2,878		2,134		504		9,266
Investments and advances to equity investees	681		313		215		200		32		1,441
Capital expenditures	202		89		140		79		18		528

(Table continued on next page)



In millions	Engine		Distribution		Components		Power Systems		New Power		Total Segments
2019
External sales	$	7,570	$	8,040	$	5,253	$	2,670	$	38	$	23,571
Intersegment sales	2,486		31		1,661		1,790		—		5,968
Total sales	10,056		8,071		6,914		4,460		38		29,539
Research, development and engineering expenses	337		28		300		230		106		1,001
Equity, royalty and interest income from investees	200		52		40		38		—		330
Interest income	15		15		8		8		—		46

Segment EBITDA (excluding restructuring actions)	1,472		693		1,117		524		(148)		3,658
Restructuring actions (2)	18		37		20		12		1		88
Segment EBITDA	1,454		656		1,097		512		(149)		3,570
Depreciation and amortization (1)	202		115		222		118		12		669


Capital expenditures	240		136		191		107		26		700


(1) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Consolidated Statements of Net Income as "Interest expense." The amortization of debt discount and deferred costs were $3 million, $3 million and $3 million for the years ended 2021, 2020 and 2019, respectively. A portion of depreciation expense is included in "Research, development and engineering expense."
(2) See Note 21 "RESTRUCTURING ACTIONS," for additional information.

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


	Years ended December 31,
In millions	2021		2020		2019
Total segment sales	$	29,922	$	24,885	$	29,539
Elimination of intersegment sales	(5,901)		(5,074)		(5,968)
Total net sales	$	24,021	$	19,811	$	23,571

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


	Years ended December 31,
In millions	2021		2020		2019
TOTAL SEGMENT EBITDA	$	3,595	$	3,032	$	3,570
Intersegment elimination	(74)		76		42

Less:
Interest expense	111		100		109
Depreciation and amortization	659		670		669
INCOME BEFORE INCOME TAXES	2,751		2,338		2,834
Less: Income tax expense	587		527		566
CONSOLIDATED NET INCOME	2,164		1,811		2,268
Less: Net income attributable to noncontrolling interests	33		22		8
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	2,131	$	1,789	$	2,260

A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below:


	December 31,
In millions	2021		2020
Net assets for operating segments	$	9,639	$	9,266
Cash, cash equivalents and marketable securities	3,187		3,862

Net liabilities deducted in arriving at net assets (1)	9,486		8,947
Pension and OPEB adjustments excluded from net assets	966		67
Deferred tax assets not allocated to segments	428		479
Deferred debt costs not allocated to segments	4		3
Total assets	$	23,710	$	22,624

(1) Liabilities deducted in arriving at net assets include certain accounts payable, accrued expenses, long-term liabilities and other items.

Long-lived segment assets by geographic area were as follows:



	December 31,
In millions	2021		2020
United States	$	3,978	$	3,776
China	1,136		1,010
India	573		595
United Kingdom	384		370
Netherlands	314		295
Mexico	195		187
Canada	163		149

Other international countries	554		545
Total long-lived assets	$	7,297	$	6,927