Three months ended

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 April 1,2012

$

(713

)

$

(102

)

$

3

$

(1

)

$

(813

)

Other comprehensive income before reclassifications

Before tax amount

(1

)

(162

)

2

(15

)

(176

)

$

(24

)

$

(200

)

Tax (provision) benefit

—

27

(1

)

5

31

—

31

After tax amount

(1

)

(135

)

1

(10

)

(145

)

(24

)

(169

)

Amounts reclassified from accumulated other comprehensive income(1)

11

—

(1

)

2

12

—

12

Net current period other comprehensive income (loss)

10

(135

)

—

(8

)

(133

)

$

(24

)

$

(157

)

Balance at July 1, 2012

$

(703

)

$

(237

)

$

3

$

(9

)

$

(946

)

Balance at March 31,2013

$

(775

)

$

(314

)

$

—

$

(6

)

$

(1,095

)

Other comprehensive income before reclassifications

Before tax amount

8

(37

)

9

(11

)

(31

)

$

(22

)

$

(53

)

Tax (provision) benefit

(3

)

13

(2

)

4

12

—

12

After tax amount

5

(24

)

7

(7

)

(19

)

(22

)

(41

)

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

16

—

(2

)

1

15

2

17

Net current period other comprehensive income (loss)

21

(24

)

5

(6

)

(4

)

$

(20

)

$

(24

)

Balance at June 30, 2013

$

(754

)

$

(338

)

$

5

$

(12

)

$

(1,099

)

Six months ended

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

2

(62

)

2

6

(52

)

$

(14

)

$

(66

)

Tax (provision) benefit

(1

)

23

(1

)

(2

)

19

—

19

After tax amount

1

(39

)

1

4

(33

)

(14

)

(47

)

Amounts reclassified from accumulated other comprehensive income(1)

20

—

(2

)

7

25

—

25

Net current period other comprehensive income (loss)

21

(39

)

(1

)

11

(8

)

$

(14

)

$

(22

)

Balance at July 1, 2012

$

(703

)

$

(237

)

$

3

$

(9

)

$

(946

)

Balance at December 31, 2012

$

(794

)

$

(161

)

$

5

$

—

$

(950

)

Other comprehensive income before reclassifications

Before tax amount

13

(191

)

8

(17

)

(187

)

$

(19

)

$

(206

)

Tax (provision) benefit

(5

)

14

(2

)

5

12

—

12

After tax amount

8

(177

)

6

(12

)

(175

)

(19

)

(194

)

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

32

—

(6

)

—

26

(3

)

23

Net current period other comprehensive income (loss)

40

(177

)

—

(12

)

(149

)

$

(22

)

$

(171

)

Balance at June 30, 2013

$

(754

)

$

(338

)

$

5

$

(12

)

$

(1,099

)

(Gain)/Loss Components

June 30, 2013

In millions

Three months ended

Six months ended

Statement of Income Location

Realized (gain) loss on marketable securities

$

(1

)

$

(11

)

Other income (expense), net

Income tax expense

1

2

Income tax expense

Net realized (gain) loss on marketable securities

—

(9

)

Realized (gain) loss on derivatives

Foreign currency forward contracts

2

2

Net sales

Commodity swap contracts

(1

)

(3

)

Cost of sales

Total before taxes

1

(1

)

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

23

47

(1)

Total before taxes

23

47

Income tax expense

(7

)

(15

)

Income tax expense

Net change in pensions and other postretirement defined benefit plans

16

32

Total reclassifications for the period

$

17

$

23