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NOTE 13. ACCUMULATED OTHER COMPREHENSIVE LOSS
Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended:
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Three months ended |
In millions |
|
Change in
pensions and
other
postretirement
defined benefit
plans |
|
Foreign
currency
translation
adjustment |
|
Unrealized gain
(loss) on
marketable
securities |
|
Unrealized gain
(loss) on
derivatives |
|
Total
attributable to
Cummins Inc. |
|
Noncontrolling
interests |
|
Total |
Balance at July 2, 2017 |
|
$ |
(649 |
) |
|
$ |
(959 |
) |
|
$ |
— |
|
|
$ |
(7 |
) |
|
$ |
(1,615 |
) |
|
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|
|
|
|
Other comprehensive income before reclassifications |
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Before tax amount |
|
— |
|
|
106 |
|
|
— |
|
|
(6 |
) |
|
100 |
|
|
$ |
(2 |
) |
|
$ |
98 |
|
Tax benefit (expense) |
|
— |
|
|
(10 |
) |
|
1 |
|
|
2 |
|
|
(7 |
) |
|
— |
|
|
(7 |
) |
After tax amount |
|
— |
|
|
96 |
|
|
1 |
|
|
(4 |
) |
|
93 |
|
|
(2 |
) |
|
91 |
|
Amounts reclassified from accumulated other comprehensive loss(1)
|
|
16 |
|
|
— |
|
|
(1 |
) |
|
3 |
|
|
18 |
|
|
— |
|
|
18 |
|
Net current period other comprehensive income (loss) |
|
16 |
|
|
96 |
|
|
— |
|
|
(1 |
) |
|
111 |
|
|
$ |
(2 |
) |
|
$ |
109 |
|
Balance at October 1, 2017 |
|
$ |
(633 |
) |
|
$ |
(863 |
) |
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
(1,504 |
) |
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Balance at July 1, 2018 |
|
$ |
(668 |
) |
|
$ |
(1,003 |
) |
|
$ |
— |
|
|
$ |
4 |
|
|
$ |
(1,667 |
) |
|
|
|
|
|
|
Other comprehensive income before reclassifications |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
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Before tax amount |
|
— |
|
|
(139 |
) |
|
2 |
|
|
1 |
|
|
(136 |
) |
|
$ |
(17 |
) |
|
$ |
(153 |
) |
Tax benefit (expense) |
|
— |
|
|
(3 |
) |
|
— |
|
|
— |
|
|
(3 |
) |
|
— |
|
|
(3 |
) |
After tax amount |
|
— |
|
|
(142 |
) |
|
2 |
|
|
1 |
|
|
(139 |
) |
|
(17 |
) |
|
(156 |
) |
Amounts reclassified from accumulated other comprehensive loss(1)
|
|
13 |
|
|
— |
|
|
(2 |
) |
|
(4 |
) |
|
7 |
|
|
— |
|
|
7 |
|
Net current period other comprehensive income (loss) |
|
13 |
|
|
(142 |
) |
|
— |
|
|
(3 |
) |
|
(132 |
) |
|
$ |
(17 |
) |
|
$ |
(149 |
) |
Balance at September 30, 2018 |
|
$ |
(655 |
) |
|
$ |
(1,145 |
) |
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
(1,799 |
) |
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____________________________________
(¹) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.
Following are the changes in accumulated other comprehensive income (loss) by component for the nine months ended:
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Nine months ended |
In millions |
|
Change in
pensions and
other
postretirement
defined benefit
plans |
|
Foreign
currency
translation
adjustment |
|
Unrealized gain (loss) on marketable securities(1)
|
|
Unrealized gain
(loss) on
derivatives |
|
Total
attributable to
Cummins Inc. |
|
Noncontrolling
interests |
|
Total |
Balance at December 31, 2016 |
|
$ |
(685 |
) |
|
$ |
(1,127 |
) |
|
$ |
(1 |
) |
|
$ |
(8 |
) |
|
$ |
(1,821 |
) |
|
|
|
|
|
|
Other comprehensive income before reclassifications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before tax amount |
|
8 |
|
|
286 |
|
|
2 |
|
|
(14 |
) |
|
282 |
|
|
$ |
12 |
|
|
$ |
294 |
|
Tax benefit (expense) |
|
(3 |
) |
|
(22 |
) |
|
— |
|
|
5 |
|
|
(20 |
) |
|
— |
|
|
(20 |
) |
After tax amount |
|
5 |
|
|
264 |
|
|
2 |
|
|
(9 |
) |
|
262 |
|
|
12 |
|
|
274 |
|
Amounts reclassified from accumulated other comprehensive loss(2)
|
|
47 |
|
|
— |
|
|
(1 |
) |
|
9 |
|
|
55 |
|
|
— |
|
|
55 |
|
Net current period other comprehensive income (loss) |
|
52 |
|
|
264 |
|
|
1 |
|
|
— |
|
|
317 |
|
|
$ |
12 |
|
|
$ |
329 |
|
Balance at October 1, 2017 |
|
$ |
(633 |
) |
|
$ |
(863 |
) |
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
(1,504 |
) |
|
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Balance at December 31, 2017 |
|
$ |
(689 |
) |
|
$ |
(812 |
) |
|
$ |
1 |
|
|
$ |
(3 |
) |
|
$ |
(1,503 |
) |
|
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|
Other comprehensive income before reclassifications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Before tax amount |
|
(8 |
) |
|
(342 |
) |
|
2 |
|
|
16 |
|
|
(332 |
) |
|
$ |
(41 |
) |
|
$ |
(373 |
) |
Tax benefit (expense) |
|
2 |
|
|
9 |
|
|
— |
|
|
(6 |
) |
|
5 |
|
|
— |
|
|
5 |
|
After tax amount |
|
(6 |
) |
|
(333 |
) |
|
2 |
|
|
10 |
|
|
(327 |
) |
|
(41 |
) |
|
(368 |
) |
Amounts reclassified from accumulated other comprehensive loss(2)
|
|
40 |
|
|
— |
|
|
(3 |
) |
|
(6 |
) |
|
31 |
|
|
1 |
|
|
32 |
|
Net current period other comprehensive income (loss) |
|
34 |
|
|
(333 |
) |
|
(1 |
) |
|
4 |
|
|
(296 |
) |
|
$ |
(40 |
) |
|
$ |
(336 |
) |
Balance at September 30, 2018 |
|
$ |
(655 |
) |
|
$ |
(1,145 |
) |
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
(1,799 |
) |
|
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____________________________________
(1) We adopted the new accounting pronouncement "Accounting for Certain Financial Instruments" on January 1, 2018, which moved the treatment of unrealized gains and losses for non-debt securities directly to the
Condensed Consolidated Statements of Income on a prospective basis. The impact of adopting this standard includes a one-time cumulative effect adjustment to opening retained earnings of $2 million. See NOTE 16, "RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS," to our Condensed Consolidated Financial Statements for more information.
(2) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.
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