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

Annual report pursuant to Section 13 and 15(d)

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Tables)

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Tables)

12 Months Ended

Dec. 31, 2019

The components of our lease cost were as follows:



In millions	Year Ended December 31, 2019
Operating lease cost	$	208
Finance lease cost
Amortization of right-of-use asset	18
Interest expense	9
Short-term lease cost	5
Variable lease cost	7
Total lease cost	$	247

Schedule Of Supplemental Balance Sheet Information Related To Leases Table

Supplemental balance sheet information related to leases:



In millions	December 31, 2019		Balance Sheet Location
Assets
Operating lease assets	$	496	Other assets
Finance lease assets⁽¹⁾	90		Property, plant and equipment, net
Total lease assets	$	586

Liabilities
Current
Operating	$	131	Other accrued expenses
Finance	12		Current maturities of long-term debt
Long-term
Operating	370		Other liabilities
Finance	78		Long-term debt
Total lease liabilities	$	591

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⁽¹⁾Finance lease assets were recorded net of accumulated amortization of$62 million at December 31, 2019.

Schedule Of Supplemental Cash Flow Information Related To Leases Table

Supplemental cash flow and other information related to leases:



In millions	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	163
Operating cash flows from finance leases	47
Financing cash flows from finance leases	9

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	214
Finance leases	5

Schedule Of Supplemental Other Information Related To Leases Table

Additional information related to leases:



	December 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	5.3
Finance leases	12.1

Weighted-average discount rate
Operating leases	3.3	%
Finance leases	4.4	%

Lessee, Operating Lease, Liability, Maturity

Following is a summary of the future minimum lease payments due to finance and operating leases with terms of more than one year at December 31, 2019, together with the net present value of the minimum payments:



In millions	Finance Leases			Operating Leases
2020	$	15		$	143
2021	11			117
2022	10			90
2023	9			60
2024	7			47
After 2024	65			95
Total minimum lease payments	117			552
Interest	(27		)	(51		)
Present value of net minimum lease payments	$	90		$	501

Schedule of Future Minimum Rental Payments for Operating Leases

Following is a summary of the future minimum lease payments due under capital and operating leases with terms of more than one year at December 31, 2018, together with the net present value of the minimum payments due under capital leases:



In millions	Capital Leases			Operating Leases
2019	$	30		$	138
2020	21			109
2021	16			81
2022	14			60
2023	13			39
After 2023	144			81
Total minimum lease payments	$	238		$	508
Interest	(106		)
Present value of net minimum lease payments	$	132