Quarterly report pursuant to Section 13 or 15(d)

OTHER COMPREHENSIVE INCOME (LOSS)

v2.4.0.6
OTHER COMPREHENSIVE INCOME (LOSS)
 3 Months Ended
Mar. 31, 2013
OTHER COMPREHENSIVE INCOME (LOSS)  
OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 13.  OTHER COMPREHENSIVE INCOME (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

 

Unrealized gain
(loss) on
derivatives

 

Total
attributable to
Cummins Inc.

 

Noncontrolling
interests

 

Total

 

Balance at December 31, 2011

 

$

(724

)

$

(198

)

$

4

 

$

(20

)

$

(938

)

 

 

 

 

Other comprehensive income before reclassifications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before tax amount

 

3

 

100

 

—

 

21

 

124

 

$

10

 

$

134

 

Tax (provision) benefit

 

(1

)

(4

)

—

 

(7

)

(12

)

—

 

(12

)

After tax amount

 

2

 

96

 

—

 

14

 

112

 

10

 

122

 

Amounts reclassified from accumulated other comprehensive income(1)

 

9

 

—

 

(1

)

5

 

13

 

—

 

13

 

Net current period other comprehensive income (loss)

 

11

 

96

 

(1

)

19

 

125

 

$

10

 

$

135

 

Balance at April 1, 2012

 

$

(713

)

$

(102

)

$

3

 

$

(1

)

$

(813

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

 

$

(794

)

$

(161

)

$

5

 

$

—

 

$

(950

)

 

 

 

 

Other comprehensive income before reclassifications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before tax amount

 

5

 

(154

)

(1

)

(6

)

(156

)

$

3

 

$

(153

)

Tax (provision) benefit

 

(2

)

1

 

—

 

1

 

—

 

—

 

—

 

After tax amount

 

3

 

(153

)

(1

)

(5

)

(156

)

3

 

(153

)

Amounts reclassified from accumulated other comprehensive income(1) (2)

 

16

 

—

 

(4

)

(1

)

11

 

(5

)

6

 

Net current period other comprehensive income (loss)

 

19

 

(153

)

(5

)

(6

)

(145

)

$

(2

)

$

(147

)

Balance at March 31, 2013

 

$

(775

)

$

(314

)

$

—

 

$

(6

)

$

(1,095

)

 

 

 

 

 

 

(1)  Amounts are net of tax.

(2)  See reclassifications out of accumulated other comprehensive income (loss) disclosure for details.

 

Following are the items reclassified out of accumulated other comprehensive income (loss) and the related tax effects:

 

 

 

Three months ended

 

 

 

(Gain)/Loss Components

 

March 31, 2013

 

Statement of Income Location

 

In millions

 

 

 

 

 

Realized (gain) loss on marketable securities

 

$

(10

)

Other income (expense), net

 

Income tax expense

 

1

 

Income tax expense

 

Net realized (gain) loss on marketable securities

 

(9

)

 

 

 

 

 

 

 

 

Realized (gain) loss on derivatives

 

 

 

 

 

Commodity swap contracts

 

(2

)

Cost of sales

 

Total before taxes

 

(2

)

 

 

Income tax expense

 

1

 

Income tax expense

 

Net realized (gain) loss on derivatives

 

(1

)

 

 

 

 

 

 

 

 

Change in pension and other postretirement defined benefit plans

 

 

 

 

 

Recognized actuarial loss

 

24

 

(1)

 

Total before taxes

 

24

 

 

 

Income tax expense

 

(8

)

Income tax expense

 

Net change in pensions and other postretirement defined benefit plans

 

16

 

 

 

 

 

 

 

 

 

Total reclassifications for the period

 

$

6

 

 

 

 

 

(1)   These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 3).