Summary
This 8-K filing from Cummins Inc. (CMI) on February 25, 2009, primarily serves to amend previously reported fourth quarter and full-year 2008 financial results. The company announced a revision to its warranty liability estimate, leading to an $82 million increase in that liability. This adjustment negatively impacted earnings per diluted share by $0.23 for the fourth quarter and $0.24 for the full year. While the increased warranty liability was a significant factor, it was partially offset by a $9 million reduction in variable and incentive compensation and a $27 million decrease in income tax expense. These changes are reflected in cost of sales, SG&A expenses, and accrued expenses on the financial statements, and will be incorporated into the upcoming Form 10-K filing.
Key Highlights
- 1Cummins Inc. is revising its previously issued fourth quarter and full year 2008 financial results.
- 2The revision is primarily due to an $82 million increase in the company's warranty liability estimate.
- 3This adjustment will decrease reported earnings per diluted share by $0.23 for Q4 2008 and $0.24 for the full year 2008.
- 4The increased warranty liability is partially offset by a $9 million reduction in variable and incentive compensation expenses.
- 5Income tax expense for the period decreased by $27 million due to these adjustments.
- 6The revised financial figures will be incorporated into the company's 2008 Form 10-K filing, expected by March 2, 2009.
- 7The filing includes updated Condensed Consolidated Statements of Income, Balance Sheets, and Cash Flows for 2008 and 2007, along with segment information.