Annual report pursuant to Section 13 and 15(d)

DIVESTITURES AND ACQUISITIONS (Details 2)

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DIVESTITURES AND ACQUISITIONS (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 1 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Mar. 28, 2010
Cummins Western Canada (CWC)
Dec. 31, 2011
Cummins Western Canada (CWC)
Dec. 31, 2010
Cummins Western Canada (CWC)
Jan. 04, 2010
Cummins Western Canada (CWC)
Jan. 31, 2010
Cummins Western Canada (CWC)
Minimum
Y
Jan. 04, 2010
Cummins Western Canada (CWC)
Minimum
Jan. 31, 2010
Cummins Western Canada (CWC)
Maximum
Y
Jan. 04, 2010
Cummins Western Canada (CWC)
Maximum
Nov. 30, 2010
Distribution - North American distributors
Business Acquisition                        
Remaining interest acquired (as a percent)             70.00%          
Ownership in partnership formed, post acquisition (as a percent)             80.00%          
Third party ownership in partnership formed, post acquisition (as a percent)             20.00%          
Acquisition Consideration                        
Borrowings under credit revolver             $ 44          
Capital contributed by Cummins Inc.             10          
Capital contributed by new principal             8          
Funded from the first quarter operations             9          
Total consideration             71          
Intangible assets amortization period (in years)               1   3    
Gain (loss) from revaluation of pre-existing ownership interest in the acquiree company   12   12                
Ownership interest in the acquiree company, immediately prior to acquisition (as a percent)             30.00%          
Net sales 18,048 [1] 13,226 [1] 10,800 [1]   390 272            
CWC net sales as a percentage of consolidated sales         2.00% 2.00%            
The purchase price was allocated as follows:                        
Accounts receivable             31          
Inventory             48          
Fixed assets             45          
Intangible assets             11          
Goodwill             2         1
Other assets             2          
Current liabilities             (42)          
Total purchase price             97         27
Fair value of pre-existing 30 percent interest             (26)          
Total consideration             71          
Loan to the partner             8          
Fair value of noncontrolling 20 percent interest             $ 8          
Repayment period of loan by the partner (in years)               3   5    
Percentage for which the partner has an option to purchase interest in CWC                 10.00%   15.00%  
Maximum additional total partner ownership percentage             30.00%          
Maximum percentage of ownership in CWC by partner             50.00%          
[1] Includes sales to nonconsolidated equity investees of $2,594 million, $2,210 million and $1,830 million for the years ended December 31, 2011, 2010 and 2009, respectively.