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Non-GAAP Reconciliation –
     EBIT
  Millions                                                                   Three Months Ended                        Nine Months Ended


                                                                  Sept. 25,       Sept. 26,          June 26,      Sept. 25,       Sept. 26,
                                                                   2005            2004                2005         2005            2004

  Earnings before interest, income taxes, minority                $     240      $      145      $        235      $     638       $    371
  interest and restructuring charges
  Restructuring, asset impairment and other                       $      -       $        -      $         -       $       -       $      -


  Earnings before interest, income taxes and                      $     240      $      145      $        235      $     638       $    371
  minority interest
  Interest Expense                                                $     (27)     $      (27)     $        (28)     $      (83)     $     (81)


  Provision for income taxes                                      $     (61)     $        4      $        (58)     $    (153)      $     (44)


  Minority Interests in earnings of unconsolidated                $      (7)     $        (6)    $         (8)     $      (19)     $     (15)
  subsidiaries
  Net Earnings                                                    $     145      $      116      $        141      $     383       $    231

EBIT = Earnings before interest, taxes, and minority interests.

We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation
programs. The table above reconciles EBIT, a non-GAAP financial measure, to our consolidated net earnings, for each of the applicable periods.
Non-GAAP Reconciliation – Net
  Assets
Millions                                      Sept. 25   Sept. 26,   June 26,
                                                2005        2004        2005
Net assets for operating segments             $ 3,312    $ 2,876     $ 3,143
Liabilities deducted in computing net           3,421      3,040       3,292
assets
Minimum pension liability excluded from net     (826)       (698)      (826)
    assets
Deferred tax assets not allocated to              928        903         943
segments
Debt-related costs not allocated to                27          28         28
segments
Total assets                                  $ 6,862    $ 6,149     $ 6,580
Non-GAAP Reconciliation – ROANA

Millions                                      Three Months        Nine Months
                                                 Ended               Ended
                                              Sept. 26, 2005     Sept. 26, 2005


Earnings before interest, income taxes and           $    240           $    638
    minority interest
Net Assets for operating segments at                     3,143              3,151
beginning of period
Net Assets for operating segments at end of              3,312              3,312
period
Average Net Assets for operating segments                3,228              3,232
    for period
ROANA                                                    30%                26%

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Cummins_Q32005

  • 1. Non-GAAP Reconciliation – EBIT Millions Three Months Ended Nine Months Ended Sept. 25, Sept. 26, June 26, Sept. 25, Sept. 26, 2005 2004 2005 2005 2004 Earnings before interest, income taxes, minority $ 240 $ 145 $ 235 $ 638 $ 371 interest and restructuring charges Restructuring, asset impairment and other $ - $ - $ - $ - $ - Earnings before interest, income taxes and $ 240 $ 145 $ 235 $ 638 $ 371 minority interest Interest Expense $ (27) $ (27) $ (28) $ (83) $ (81) Provision for income taxes $ (61) $ 4 $ (58) $ (153) $ (44) Minority Interests in earnings of unconsolidated $ (7) $ (6) $ (8) $ (19) $ (15) subsidiaries Net Earnings $ 145 $ 116 $ 141 $ 383 $ 231 EBIT = Earnings before interest, taxes, and minority interests. We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs. The table above reconciles EBIT, a non-GAAP financial measure, to our consolidated net earnings, for each of the applicable periods.
  • 2. Non-GAAP Reconciliation – Net Assets Millions Sept. 25 Sept. 26, June 26, 2005 2004 2005 Net assets for operating segments $ 3,312 $ 2,876 $ 3,143 Liabilities deducted in computing net 3,421 3,040 3,292 assets Minimum pension liability excluded from net (826) (698) (826) assets Deferred tax assets not allocated to 928 903 943 segments Debt-related costs not allocated to 27 28 28 segments Total assets $ 6,862 $ 6,149 $ 6,580
  • 3. Non-GAAP Reconciliation – ROANA Millions Three Months Nine Months Ended Ended Sept. 26, 2005 Sept. 26, 2005 Earnings before interest, income taxes and $ 240 $ 638 minority interest Net Assets for operating segments at 3,143 3,151 beginning of period Net Assets for operating segments at end of 3,312 3,312 period Average Net Assets for operating segments 3,228 3,232 for period ROANA 30% 26%