Acquisitions of businesses, net of cash acquired (Note 16)

[Table of Contents](#ib75a44f638b042a5a7472d3f3be80b22_7)CUMMINS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | Nine months ended |
| In millions |  | September 30,2022 |  | October 3,2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |   |  |   |
| Consolidated net income  |  | $ | 1,539  |  |  | $ | 1,764  |  |
| Adjustments to reconcile consolidated net income to net cash provided by operating activities  |  |   |  |   |
| Depreciation and amortization |  | 544  |  |  | 497  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Deferred income taxes |  | (194) |  |  | 44  |  |
| Equity in income of investees, net of dividends  |  | (30) |  |  | (150) |  |
| Pension and OPEB expense (Note 4) |  | 23  |  |  | 62  |  |
| Pension contributions and OPEB payments (Note 4) |  | (71) |  |  | (86) |  |
| Share-based compensation expense  |  | 24  |  |  | 25  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Russian suspension costs, net of recoveries (Note 3) |  | 112  |  |  | —  |  |
| Asset impairments and other charges  |  | 36  |  |  | —  |  |
| Loss on corporate owned life insurance  |  | 114  |  |  | 11  |  |
|  |  |  |  |  |
| Foreign currency remeasurement and transaction exposure  |  | (136) |  |  | 27  |  |
| Changes in current assets and liabilities, net of acquisitions  |  |  |  |   |
| Accounts and notes receivable  |  | (333) |  |  | (353) |  |
| Inventories  |  | (597) |  |  | (919) |  |
| Other current assets  |  | (18) |  |  | (45) |  |
| Accounts payable  |  | 353  |  |  | 416  |  |
| Accrued expenses  |  | (124) |  |  | 435  |  |
| Changes in other liabilities  |  | (41) |  |  | (59) |  |
|  |  |  |  |  |
| Other, net  |  | (56) |  |  | (145) |  |
| Net cash provided by operating activities  |  | 1,145  |  |  | 1,524  |  |
|  |  |  |  |  |
| CASH FLOWS FROM INVESTING ACTIVITIES  |  |   |  |   |
| Capital expenditures  |  | (453) |  |  | (362) |  |
| Investments in internal use software  |  | (44) |  |  | (36) |  |
|  |  |  |  |  |
| Proceeds from sale of land |  | —  |  |  | 20  |  |
| Investments in and net advances from (to) equity investees  |  | (50) |  |  | 3  |  |
| Acquisitions of businesses, net of cash acquired (Note 16) |  | (3,008) |  |  | —  |  |
|  |  |  |  |  |
| Investments in marketable securities—acquisitions  |  | (738) |  |  | (569) |  |
| Investments in marketable securities—liquidations (Note 7) |  | 819  |  |  | 602  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Cash flows from derivatives not designated as hedges  |  | (29) |  |  | 19  |  |
| Other, net  |  | 7  |  |  | 45  |  |
| Net cash used in investing activities  |  | (3,496) |  |  | (278) |  |
|  |  |  |  |  |
| CASH FLOWS FROM FINANCING ACTIVITIES  |  |   |  |   |
| Proceeds from borrowings (Notes 11 and 16) |  | 2,076  |  |  | 35  |  |
| Net borrowings (payments) of commercial paper  |  | 2,080  |  |  | (123) |  |
| Payments on borrowings and finance lease obligations  |  | (1,070) |  |  | (57) |  |
| Net borrowings (payments) under short-term credit agreements  |  | 21  |  |  | (93) |  |
| Distributions to noncontrolling interests  |  | (38) |  |  | (28) |  |
| Dividend payments on common stock  |  | (633) |  |  | (601) |  |
| Repurchases of common stock  |  | (370) |  |  | (1,228) |  |
| Proceeds from issuing common stock  |  | 36  |  |  | 27  |  |
|  |  |  |  |  |
| Other, net  |  | 9  |  |  | (11) |  |
| Net cash provided by (used in) financing activities  |  | 2,111  |  |  | (2,079) |  |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS  |  | 147  |  |  | 20  |  |
| Net decrease in cash and cash equivalents |  | (93) |  |  | (813) |  |
| Cash and cash equivalents at beginning of year  |  | 2,592  |  |  | 3,401  |  |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD  |  | $ | 2,499  |  |  | $ | 2,588  |  |

 The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.6
