OPERATING SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Segment Reporting Information, by Segment

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



In millions	Engine			Components			Distribution		Power Systems		New Power		Total Segments
2022
External sales	$	8,199		$	7,847		$	8,901	$	2,951	$	176	$	28,074
Intersegment sales	2,746			1,889			28		2,082		22		6,767
Total sales	10,945			9,736			8,929		5,033		198		34,841
Research, development and engineering expenses	506			309			52		240		171		1,278
Equity, royalty and interest income (loss) from investees	166		(1)	71			77		43		(8)		349
Interest income	14			12			16		7		—		49





Russian suspension costs (2)	33		(3)	5			54		19		—		111
Segment EBITDA	1,541			1,346		(4)	888		596		(340)		4,031
Depreciation and amortization (5)	205			304			114		120		38		781
Net assets	1,451			7,306			2,698		2,382		1,158		14,995
Investments and advances to equity investees	590			617			352		138		60		1,757
Capital expenditures	368			264			114		96		74		916
2021
External sales	$	7,589		$	5,932		$	7,742	$	2,650	$	108	$	24,021
Intersegment sales	2,365			1,733			30		1,765		8		5,901
Total sales	9,954			7,665			7,772		4,415		116		29,922
Research, development and engineering expenses	399			307			48		234		102		1,090
Equity, royalty and interest income (loss) from investees	340			50			63		56		(3)		506
Interest income	8			5			7		5		—		25






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



Segment EBITDA	1,235			961			665		343		(172)		3,032
Depreciation and amortization (5)	208			192			122		130		18		670


Capital expenditures	202			140			89		79		18		528

(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 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information.
(2) See NOTE 23, "RUSSIAN OPERATIONS," to our 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) Includes $83 million of costs related to the acquisition and integration of Meritor and $28 million of costs associated with the planned separation of our filtration business.

(5) 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 2022, 2021 and 2020, respectively. A portion of depreciation expense is included in research, development and engineering expense.

Reconciliation of segment information

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	2022			2021		2020
TOTAL SEGMENT EBITDA	$	4,031		$	3,595	$	3,032
Intersegment eliminations and other	(232)		(1)	(74)		76

Less:
Interest expense	199			111		100
Depreciation and amortization	781			659		670
INCOME BEFORE INCOME TAXES	2,819			2,751		2,338
Less: Income tax expense	636			587		527
CONSOLIDATED NET INCOME	2,183			2,164		1,811
Less: Net income attributable to noncontrolling interests	32			33		22
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	2,151		$	2,131	$	1,789

(1)Intersegment eliminations and other included $53 million of costs associated with the planned separation of our filtration business.

Reconciliation of segment information from net assets to total assets

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	2022		2021
Net assets for operating segments	$	14,995	$	9,639
Cash, cash equivalents and marketable securities	2,573		3,187

Net liabilities deducted in arriving at net segment assets (1)	11,270		9,486
Pension and OPEB adjustments excluded from net segment assets	832		966
Deferred tax assets not allocated to segments	625		428
Deferred debt costs not allocated to segments	4		4
Total assets	$	30,299	$	23,710

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

Long-lived assets attributed to geographic areas

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



	December 31,
In millions	2022		2021
United States	$	4,714	$	3,978
China	1,052		1,136
India	665		573
United Kingdom	431		384
Mexico	429		195
Netherlands	334		314
Brazil	256		76
Canada	168		163
Other international countries	731		478
Total long-lived assets	$	8,780	$	7,297