Meritor Acquisition and 2022 Financial Results
Table of Contents
On August 16, 2022, the U.S. federal government enacted the Inflation Reduction Act of 2022 into law effective beginning in 2023. The bill includes numerous tax provisions,
including a 15 percent corporate minimum tax as well as a one percent excise tax on share repurchases. We do not currently expect the legislation will have a material effect on
our results of operations or liquidity.
Net Income Attributable to Noncontrolling Interests
Noncontrolling interests eliminate the income or loss attributable to non-Cummins ownership interests in our consolidated entities. Noncontrolling interests in income of
consolidated subsidiaries decreased $1 million principally due to lower earnings at Hydrogenics Corporation, partially offset by higher earnings at Eaton Cummins Joint
Venture.
2021 vs. 2020
For prior year results of operations comparisons to 2020 see the Results of Operations section of our 2021 Form 10-K.
Comprehensive Income - Foreign Currency Translation Adjustment
The foreign currency translation adjustment was a net loss of $384 million and $9 million for the years ended December 31, 2022 and 2021, respectively. The details were as
follows:
2021
Primary currency driver vs. U.S.
dollar
Brazilian real, British pound,
Indian rupee and Euro, partially
offset by Chinese renminbi
Chinese renminbi, partially offset
by Indian rupee
(5) Indian rupee
Years ended December 31,
2022
In millions
Translation
adjustment
Primary currency driver vs. U.S.
dollar
Translation
adjustment
Wholly-owned subsidiaries
$
(250)
Chinese renminbi and Indian
$
(23)
rupee
Equity method investments
(94)
Chinese renminbi
19
Consolidated subsidiaries with a
noncontrolling interest
(40) Indian rupee
Total
(384)
(9)
2021 vs. 2020
For prior year foreign currency translation adjustment comparisons to 2020 see the Results of Operations section of our 2021 Form 10-K.
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