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## Note 17. Guarantees, Commitments and Other Contingencies: 

At December 31, 2000, the Company had the following minimum rental commitments for noncancelable operating leases: $45 million in 2001, $37 million in 2002, $31 million in 2003, $22 million in 2004, $13 million in 2005 and $63 million thereafter. Rental expense under these leases approximated $79 million in 2000, $75 million in 1999 and $70 million in 1998. 

Commitments under outstanding letters of credit, guarantees and contingencies at December 31, 2000, approximated $89 million. 

Cummins and its subsidiaries are defendants in a number of pending legal actions, including actions related to use and performance of the CompanyGLYPH<213>s products. The Company carries product liability insurance covering significant claims for damages involving personal injury and property damage. 

## Note 18. Quarterly Financial Data (unaudited): 

In the event the Company is determined to be liable for damages in connection with actions and proceedings, the unreserved portion of such liability is not expected to be material. The Company also has been identified as a potentially responsible party at several waste disposal sites under U.S. and related state environmental statutes and regulations and has joint and several liability for any investigation and remedia- tion costs incurred with respect to such sites. The Company denies liability with respect to many of these legal actions and environmental proceedings and is vigorously defending such actions or proceedings. The Company has established reserves that it believes are adequate for its expected future liability in such actions and proceedings where the nature and extent of such liability can be estimated reasonably based upon presently available information. The Company is working to comply with U.S. EPA regulations with respect to emissions which are scheduled to become more restrictive in 2002 and beyond. 

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Fourth quarter 2000 net earnings included restructuring, asset impairment and other special charges of $103 million, net of tax ($160 million pretax), or $2.71 per share. 

Fourth quarter 1999 net earnings included a charge of $45 million, net of tax ($60 million pretax), or $1.17 per share, for the termination of the Cummins WGLYPH<138>rtsilGLYPH<138> joint venture. 

