Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENTS (Details)

v2.4.0.8
OPERATING SEGMENTS (Details) (USD $)
In Millions, unless otherwise specified
 1 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2011
Jul. 01, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jan. 31, 2013
Cummins Northwest LLC
May 31, 2013
Cummins Rocky Mountain LLC
Jul. 31, 2012
Cummins Central Power LLC
Dec. 31, 2012
Cummins Central Power LLC
Jun. 26, 2011
Exhaust business
Dec. 31, 2011
Light-duty filtration business
Dec. 31, 2013
Engine
Dec. 31, 2012
Engine
Dec. 31, 2011
Engine
Dec. 31, 2013
Components
Dec. 31, 2012
Components
Dec. 31, 2011
Components
Dec. 31, 2013
Power Generation
Dec. 31, 2012
Power Generation
Dec. 31, 2011
Power Generation
Dec. 31, 2013
Distribution
Dec. 31, 2012
Distribution
Dec. 31, 2011
Distribution
Dec. 31, 2013
Distribution
Cummins Northwest LLC
Dec. 31, 2013
Distribution
Cummins Rocky Mountain LLC
Dec. 31, 2012
Distribution
Cummins Central Power LLC
Dec. 31, 2013
Non-segment items, unallocated corporate expenses
Dec. 31, 2012
Non-segment items, unallocated corporate expenses
Dec. 31, 2011
Non-segment items, unallocated corporate expenses
Dec. 31, 2011
Non-segment items, unallocated corporate expenses
Exhaust business
Dec. 31, 2011
Non-segment items, unallocated corporate expenses
Light-duty filtration business
Dec. 31, 2013
Intersegment Eliminations
Engine
Dec. 31, 2012
Intersegment Eliminations
Engine
Dec. 31, 2011
Intersegment Eliminations
Engine
Dec. 31, 2013
Intersegment Eliminations
Components
Dec. 31, 2012
Intersegment Eliminations
Components
Dec. 31, 2011
Intersegment Eliminations
Components
Dec. 31, 2013
Intersegment Eliminations
Power Generation
Dec. 31, 2012
Intersegment Eliminations
Power Generation
Dec. 31, 2011
Intersegment Eliminations
Power Generation
Dec. 31, 2013
Intersegment Eliminations
Distribution
Dec. 31, 2012
Intersegment Eliminations
Distribution
Dec. 31, 2011
Intersegment Eliminations
Distribution
Dec. 31, 2013
Intersegment Eliminations
Non-segment items
Dec. 31, 2012
Intersegment Eliminations
Non-segment items
Dec. 31, 2011
Intersegment Eliminations
Non-segment items
Dec. 31, 2013
Reportable Segment
Dec. 31, 2012
Reportable Segment
Dec. 31, 2011
Reportable Segment
Dec. 31, 2013
Reportable Segment
Engine
Dec. 31, 2012
Reportable Segment
Engine
Dec. 31, 2011
Reportable Segment
Engine
Dec. 31, 2013
Reportable Segment
Components
Dec. 31, 2012
Reportable Segment
Components
Dec. 31, 2011
Reportable Segment
Components
Dec. 31, 2013
Reportable Segment
Power Generation
Dec. 31, 2012
Reportable Segment
Power Generation
Dec. 31, 2011
Reportable Segment
Power Generation
Dec. 31, 2013
Reportable Segment
Distribution
Dec. 31, 2012
Reportable Segment
Distribution
Dec. 31, 2011
Reportable Segment
Distribution
Dec. 31, 2013
Reportable Segment
Non-segment items
Dec. 31, 2012
Reportable Segment
Non-segment items
Dec. 31, 2011
Reportable Segment
Non-segment items
Operating results:                                                                                                                                
Total sales     $ 17,301 [1] $ 17,334 [1] $ 18,048 [1]       $ 115     $ 8,270 $ 9,101 $ 9,649 $ 3,151 $ 2,809 $ 2,886 $ 2,154 $ 2,163 $ 2,492 $ 3,726 $ 3,261 $ 3,021                 $ 1,743 $ 1,632 $ 1,658 $ 1,191 $ 1,203 $ 1,177 $ 877 $ 1,105 $ 1,006 $ 23 $ 16 $ 23 $ (3,834) [2] $ (3,956) [2] $ (3,864) [2] $ 17,301 $ 17,334 $ 18,048 $ 10,013 $ 10,733 $ 11,307 $ 4,342 $ 4,012 $ 4,063 $ 3,031 $ 3,268 $ 3,498 $ 3,749 $ 3,277 $ 3,044 $ (3,834) [2] $ (3,956) [2] $ (3,864) [2]
Depreciation and amortization     405 [3] 355 [3] 321 [3]             205 [3] 192 [3] 181 [3] 96 [3] 82 [3] 73 [3] 50 [3] 47 [3] 42 [3] 54 [3] 34 [3] 25 [3]                                                                                  
Research, development and engineering expenses     713 728 629             416 433 397 218 213 175 73 76 54 6 6 3                                                                                  
Equity, royalty and interest income from investees     361 384 416             136 127 166 28 29 31 32 40 47 165 188 172                                                                                  
Interest income     27 25 34             16 11 18 3 3 5 6 9 8 2 2 3                                                                                  
Segment EBIT     2,160 2,303 [4] 2,715             1,041 1,248 [4] 1,384 527 426 [4] 470 218 285 [4] 373 388 [5] 369 [4],[5] 386       (14) [2] (25) [2],[4] 102 [2]                                                                      
Less: Interest expense     41 32 44                                                                                                                      
INCOME BEFORE INCOME TAXES     2,119 2,271 2,671                                                                                                                      
Net assets for operating segments     9,646 8,177 7,304             4,323 3,373 3,167 1,885 1,830 1,467 1,801 1,582 1,547 1,637 1,392 1,123                                                                                  
Investments and advances to equity investees     931 897 838             419 401 398 140 127 123 110 88 79 262 281 238                                                                                  
Capital expenditures     676 690 622             372 399 339 141 134 141 106 95 87 57 62 55                                                                                  
Gain on sale of business   6    6 121         68 53                                 6   68 53                                                                  
After-tax gain on sale of business   4               37 33                                 4   37 33                                                                  
Reserve for legal matters before tax                                                       20                                                                        
Reserve for legal matters after tax                                                       12                                                                        
Gain on insurance recovery, pre-tax 38                                                       38                                                                      
Gain on insurance recovery, after-tax 24                                                       24                                                                      
Restructuring and other charges                         20     6     12     14                                                                                    
Gain (loss) from revaluation of pre-existing ownership interest in the acquiree company     12 7    7 5 7                               7 5 7                                                                            
Liabilities deducted in arriving at net assets     5,103 4,913 4,832                                                                                                                      
Pension and other postretirement benefit adjustments excluded from net assets     (346) (977) (928)                                                                                                                      
Deferred tax assets not allocated to segments     292 410 435                                                                                                                      
Debt-related costs not allocated to segments     33 25 25                                                                                                                      
Total assets     $ 14,728 $ 12,548 $ 11,668                                                                                                                      
[1] Includes sales to nonconsolidated equity investees of $2,319 million, $2,427 million and $2,594 million for the years ended December 31, 2013, 2012 and 2011, respectively.
[2] Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the year ended December 31, 2013. The year ended December 31, 2012, included a $6 million gain ($4 million after-tax) related to adjustments from our 2011 divestitures and a $20 million charge ($12 million after-tax) related to legal matters. The year ended December 31, 2011, included a $68 million gain ($37 million after-tax) and a $53 million gain ($33 million after-tax) related to the Component segment sales of certain assets and liabilities from our exhaust and light-duty filtration businesses, respectively, and a $38 million gain ($24 million after-tax) related to the insurance settlement regarding the June 2008 flood in Southern Indiana. The gains and losses have been excluded from segment results as they were not considered in our evaluation of operating results for the years ended December 31, 2012 and 2011.
[3] Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs that are included in the Consolidated Statements of Income as "Interest expense."
[4] Segment EBIT included restructuring and other charges for each business segment of $20 million (Engine), $6 million (Components), $12 million (Power Generation) and $14 million (Distribution). See NOTE 19, "RESTRUCTURING AND OTHER CHARGES," for additional detail.
[5] Distribution segment EBIT for the year ended December 31, 2013, included a $7 million gain and $5 million gain for the fair value adjustment resulting from the acquisitions of a controlling interest in Northwest and Rocky Mountain, respectively. Distribution segment EBIT for the year ended December 31, 2012, included a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Central Power. See NOTE 2, "ACQUISITIONS AND DIVESTITURES," for additional detail.