Cummins Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 2)

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Less Significant Plan Defined Benefit [Member]
Less Significant Defined Benefit and Postretirement Plans
Number of countries with less significant defined benefit plans	14
Maximum percentage of defined benefit plan assets included in Plans reflected in Other liabilities and deferred revenue (as a percent)	3.00%
Maximum percentage of defined benefit plan obligations included in Plans reflected in Other liabilities and deferred revenue (as a percent)	5.00%
Less Significant Other Postretirement Benefit Plans Defined Benefit
Less Significant Defined Benefit and Postretirement Plans
Number of countries with less significant Postretirement benefit plans	4
Maximum percentage of defined benefit plan obligations included in Plans reflected in Other liabilities and deferred revenue (as a percent)	7.00%
Pension
Changes in benefit obligations and plan assets recognized in other comprehensive income
Amortization of prior service (cost) credit	$ 1,000,000	$ 1,000,000	$ (1,000,000)
Recognized net actuarial gain (loss)	(57,000,000)	(86,000,000)	(61,000,000)
Incurred actuarial (gain) loss	133,000,000	(168,000,000)	124,000,000
Incurred prior service cost (credit)			1,000,000
Foreign exchange translation adjustments	(18,000,000)	10,000,000	16,000,000
Total recognized in other comprehensive income	59,000,000	(243,000,000)	79,000,000
Total amount recognized in net periodic benefit cost and other comprehensive income	116,000,000	(156,000,000)	143,000,000
Net actuarial loss anticipated to be recognized in the next fiscal year	71,000,000
U.S. Plans
Pension and other postretirement benefits
Total accumulated benefit obligation	2,539,000,000	2,231,000,000
Plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation	261,000,000	212,000,000
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	301,000,000	243,000,000
Components of Net Periodic Benefit Cost
Service cost	66,000,000	70,000,000	58,000,000
Interest cost	105,000,000	93,000,000	103,000,000
Expected return on plan assets	(173,000,000)	(167,000,000)	(157,000,000)
Amortization of prior service (credit) cost	(1,000,000)	(1,000,000)	(1,000,000)
Recognized net actuarial loss	31,000,000	62,000,000	47,000,000
Net periodic benefit cost	28,000,000	57,000,000	50,000,000
Non-U.S. Plans
Pension and other postretirement benefits
Total accumulated benefit obligation	1,402,000,000	1,309,000,000
Components of Net Periodic Benefit Cost
Service cost	24,000,000	21,000,000	21,000,000
Interest cost	63,000,000	57,000,000	59,000,000
Expected return on plan assets	(84,000,000)	(72,000,000)	(81,000,000)
Amortization of prior service (credit) cost			1,000,000
Recognized net actuarial loss	26,000,000	24,000,000	14,000,000
Net periodic benefit cost	29,000,000	30,000,000	14,000,000
Other Postretirement Benefits
Components of Net Periodic Benefit Cost
Interest cost	17,000,000	17,000,000	21,000,000
Amortization of prior service (credit) cost			(5,000,000)
Recognized net actuarial loss		6,000,000	3,000,000
Defined Benefit Plan, Other Costs			1,000,000
Net periodic benefit cost	17,000,000	23,000,000	20,000,000
Changes in benefit obligations and plan assets recognized in other comprehensive income
Amortization of prior service (cost) credit			5,000,000
Recognized net actuarial gain (loss)		(6,000,000)	(3,000,000)
Incurred actuarial (gain) loss	38,000,000	(49,000,000)	20,000,000
Incurred prior service cost (credit)			(4,000,000)
Other			(1,000,000)
Total recognized in other comprehensive income	38,000,000	(55,000,000)	17,000,000
Total amount recognized in net periodic benefit cost and other comprehensive income	55,000,000	(32,000,000)	37,000,000
Net actuarial loss anticipated to be recognized in the next fiscal year	$ 5,000,000