Annual report pursuant to Section 13 and 15(d)

OTHER COMPREHENSIVE INCOME (LOSS)

v3.10.0.1
OTHER COMPREHENSIVE INCOME (LOSS)
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
OTHER COMPREHENSIVE INCOME (LOSS) NOTE 15. ACCUMULATED OTHER COMPREHENSIVE LOSS
Following are the changes in accumulated other comprehensive income (loss) by component:
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, 2015
 
$
(654
)
 
$
(696
)
 
$
(2
)
 
$
4

 
$
(1,348
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
(111
)
 
(469
)
 
1

 
(38
)
 
(617
)
 
$
(17
)
 
$
(634
)
Tax benefit
 
44

 
38

 

 
6

 
88

 

 
88

After tax amount
 
(67
)
 
(431
)
 
1

 
(32
)
 
(529
)
 
(17
)
 
(546
)
Amounts reclassified from accumulated other comprehensive income(2)
 
36

 

 

 
20

 
56

 

 
56

Net current period other comprehensive income (loss)
 
(31
)
 
(431
)
 
1

 
(12
)
 
(473
)
 
$
(17
)
 
$
(490
)
Balance at December 31, 2016
 
$
(685
)
 
$
(1,127
)
 
$
(1
)
 
$
(8
)
 
$
(1,821
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
73

 
335

 
2

 
(12
)
 
398

 
$
20

 
$
418

Tax benefit (expense)
 
(36
)
 
(20
)
 

 
5

 
(51
)
 

 
(51
)
After tax amount
 
37

 
315

 
2

 
(7
)
 
347

 
20

 
367

Amounts reclassified from accumulated other comprehensive income(2)
 
62

 

 

 
12

 
74

 

 
74

Impact of tax legislation (Note 4)
 
(103
)
(3) 

 

 

 
(103
)
 

 
(103
)
Net current period other comprehensive income (loss)
 
(4
)
 
315

 
2

 
5

 
318

 
$
20

 
$
338

Balance at December 31, 2017
 
$
(689
)
 
$
(812
)
 
$
1

 
$
(3
)
 
$
(1,503
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
(42
)
 
(333
)
 
2

 
21

 
(352
)
 
$
(30
)
 
$
(382
)
Tax benefit (expense)
 
7

 
7

 

 
(7
)
 
7

 

 
7

After tax amount
 
(35
)
 
(326
)
 
2

 
14

 
(345
)
 
(30
)
 
(375
)
Amounts reclassified from accumulated other comprehensive income(2)
 
53

 

 
(3
)
 
(9
)
 
41

 
1

 
42

Net current period other comprehensive income (loss)
 
18

 
(326
)
 
(1
)
 
5

 
(304
)
 
$
(29
)
 
$
(333
)
Balance at December 31, 2018
 
$
(671
)
 
$
(1,138
)
 
$

 
$
2

 
$
(1,807
)
 
 

 
 


_______________________________________________________________________
(1) Effective January 1, 2018 and forward, unrealized gains and losses, net of tax for equity securities are reported in "Other income, net" on the Consolidated Statements of Income instead of comprehensive income.
Unrealized gains and losses for debt securities will continue to be reported in comprehensive income. See NOTE 1 , "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ," "RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS" section for additional 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.
(3) Impact of tax legislation includes $(126) million related to Tax Legislation and $23 million related to 2017 activity. See Note 4, "INCOME TAXES," to our Consolidated Financial Statements for additional information.