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

Annual report pursuant to Section 13 and 15(d)

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 5)

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 5) (USD $) In Millions, unless otherwise specified				12 Months Ended									12 Months Ended
	Dec. 31, 2011 U.S. Plans	Dec. 31, 2010 U.S. Plans	Dec. 31, 2009 U.S. Plans	Dec. 31, 2011 U.S. Plans Significant unobservable inputs (Level 3)	Dec. 31, 2010 U.S. Plans Significant unobservable inputs (Level 3)	Dec. 31, 2011 U.S. Plans Significant unobservable inputs (Level 3) Private equity	Dec. 31, 2010 U.S. Plans Significant unobservable inputs (Level 3) Private equity	Dec. 31, 2011 U.S. Plans Significant unobservable inputs (Level 3) Real estate	Dec. 31, 2010 U.S. Plans Significant unobservable inputs (Level 3) Real estate	Dec. 31, 2011 Non-U.S. Plans	Dec. 31, 2010 Non-U.S. Plans	Dec. 31, 2009 Non-U.S. Plans	Dec. 31, 2011 Non-U.S. Plans Significant unobservable inputs (Level 3)	Dec. 31, 2010 Non-U.S. Plans Significant unobservable inputs (Level 3)	Dec. 31, 2011 Non-U.S. Plans Significant unobservable inputs (Level 3) Private equity	Dec. 31, 2010 Non-U.S. Plans Significant unobservable inputs (Level 3) Private equity	Dec. 31, 2011 Non-U.S. Plans Significant unobservable inputs (Level 3) Real estate	Dec. 31, 2010 Non-U.S. Plans Significant unobservable inputs (Level 3) Real estate
Summary of changes in the fair value of level 3 assets
Fair value of plan assets at beginning of year	$ 2,091	$ 1,906	$ 1,677	$ 208	$ 139	$ 126	$ 104	$ 82	$ 35	$ 1,200	$ 1,088	$ 929	$ 40	$ 35	$ 10	$ 4	$ 30	$ 31
Unrealized (losses) gains on assets still held at the reporting date				24	17	18	14	6	3				2	(1)	2	1		(2)
Purchases, sales and settlements				34	52	3	8	31	44				5	6	2	5	3	1
Fair value of plan assets at end of year	$ 2,091	$ 1,906	$ 1,677	$ 266	$ 208	$ 147	$ 126	$ 119	$ 82	$ 1,200	$ 1,088	$ 929	$ 47	$ 40	$ 14	$ 10	$ 33	$ 30

- Definition

Assets, usually stocks, bonds, and other investments, that have been segregated and restricted (usually in a trust) to provide benefits, at their fair value as of the measurement date. Plan assets include amounts contributed by the employer (and by employees for a contributory plan) and amounts earned from investing the contributions, less benefits paid. If a plan has liabilities other than for benefits, those non-benefit obligations may be considered as reductions of plan assets.

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