Cummins__q206nongaap

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Page 1: Cummins__q206nongaap

Non-GAAP Reconciliation –EBITNon-GAAP Reconciliation –EBIT

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 earnings before income taxes and minority interests, for each of the applicable periods.

$ 228$ 207$ 299Earnings before income taxes and minority interests

$ (27)$ (28)$ (26)Interest Expense

$ 255$ 235$ 325Segment EBIT

April 2,2006

June 26, 2005

July 2, 2006

Millions

Three Months Ended

Page 2: Cummins__q206nongaap

Non-GAAP Reconciliation –EBITNon-GAAP Reconciliation –EBIT

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 earnings before income taxes and minority interests, for each of the applicable periods.

$ 342$ 527Earnings before income taxes and minority interests

$ (56)$ (53)Interest Expense

$ 398$ 580Segment EBIT

June 26,2005

July 2, 2006

Millions

Six Months Ended