Quarterly report pursuant to Section 13 or 15(d)

OTHER COMPREHENSIVE INCOME (LOSS)

v2.4.0.8
OTHER COMPREHENSIVE INCOME (LOSS)
 9 Months Ended
Sep. 29, 2013
Equity [Abstract]  
OTHER COMPREHENSIVE INCOME (LOSS)
NOTE 14. OTHER COMPREHENSIVE INCOME (LOSS)
 
Following are the changes in accumulated other comprehensive income (loss) by component for the three and nine months ended:
 
 
 
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 July 1, 2012
 
$
(703
)
 
$
(237
)
 
$
3

 
$
(9
)
 
$
(946
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
—

 
152

 
4

 
15

 
171

 
$
16

 
$
187

Tax (provision) benefit
 
—

 
(37
)
 
(2
)
 
(4
)
 
(43
)
 
—

 
(43
)
After tax amount
 
—

 
115

 
2

 
11

 
128

 
16

 
144

Amounts reclassified from accumulated other comprehensive income(1)
 
9

 
—

 
(1
)
 
2

 
10

 
1

 
11

Net current period other comprehensive income (loss)
 
9

 
115

 
1

 
13

 
138

 
$
17

 
$
155

Balance at September 30, 2012
 
$
(694
)
 
$
(122
)
 
$
4

 
$
4

 
$
(808
)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2013
 
$
(754
)
 
$
(338
)
 
$
5

 
$
(12
)
 
$
(1,099
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
—

 
105

 
2

 
10

 
117

 
$
(9
)
 
$
108

Tax (provision) benefit
 
—

 
(1
)
 
1

 
(3
)
 
(3
)
 
—

 
(3
)
After tax amount
 
—

 
104

 
3

 
7

 
114

 
(9
)
 
105

Amounts reclassified from accumulated other comprehensive income(1)(2)
 
16

 
—

 
(2
)
 
3

 
17

 
—

 
17

Net current period other comprehensive income (loss)
 
16

 
104

 
1

 
10

 
131

 
$
(9
)
 
$
122

Balance at September 29, 2013
 
$
(738
)
 
$
(234
)
 
$
6

 
$
(2
)
 
$
(968
)
 
 

 
 

_______________________________________________________________________

(1)Amounts are net of tax.  
(2)See reclassifications out of accumulated other comprehensive income (loss) disclosure for details.  
 
 
Nine 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

 
90

 
6

 
21

 
119

 
$
2

 
$
121

Tax (provision) benefit
 
(1
)
 
(14
)
 
(3
)
 
(6
)
 
(24
)
 
—

 
(24
)
After tax amount
 
1

 
76

 
3

 
15

 
95

 
2

 
97

Amounts reclassified from accumulated other comprehensive income(1)
 
29

 
—

 
(3
)
 
9

 
35

 
1

 
36

Net current period other comprehensive income (loss)
 
30

 
76

 
—

 
24

 
130

 
$
3

 
$
133

Balance at September 30, 2012
 
$
(694
)
 
$
(122
)
 
$
4

 
$
4

 
$
(808
)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2012
 
$
(794
)
 
$
(161
)
 
$
5

 
$
—

 
$
(950
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
13

 
(86
)
 
10

 
(7
)
 
(70
)
 
$
(28
)
 
$
(98
)
Tax (provision) benefit
 
(5
)
 
13

 
(1
)
 
2

 
9

 
—

 
9

After tax amount
 
8

 
(73
)
 
9

 
(5
)
 
(61
)
 
(28
)
 
(89
)
Amounts reclassified from accumulated other comprehensive income(1)(2)
 
48

 
—

 
(8
)
 
3

 
43

 
(3
)
 
40

Net current period other comprehensive income (loss)
 
56

 
(73
)
 
1

 
(2
)
 
(18
)
 
$
(31
)
 
$
(49
)
Balance at September 29, 2013
 
$
(738
)
 
$
(234
)
 
$
6

 
$
(2
)
 
$
(968
)
 
 

 
 

_______________________________________________________________________

(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:

In millions
 
September 29, 2013
 
 
(Gain)/Loss Components
 
Three months ended
 
Nine months ended
 
Statement of Income Location
 
 
 
 
 
 
 
Realized (gain) loss on marketable securities
 
$
(1
)
 
$
(12
)
 
Other income (expense), net
Income tax expense
 
(1
)
 
1

 
Income tax expense
Net realized (gain) loss on marketable securities
 
(2
)
 
(11
)
 
 
 
 
 
 
 
 
 
Realized (gain) loss on derivatives
 
 

 
 

 
 
Foreign currency forward contracts
 
2

 
4

 
Net sales
Commodity swap contracts
 
2

 
(1
)
 
Cost of sales
Total before taxes
 
4

 
3

 
 
Income tax expense
 
(1
)
 
—

 
Income tax expense
Net realized (gain) loss on derivatives
 
3

 
3

 
 
 
 
 
 
 
 
 
Change in pension and other postretirement defined benefit plans
 
 

 
 

 
 
Recognized actuarial loss
 
24

 
71

 
(1) 
Total before taxes
 
24

 
71

 
 
Income tax expense
 
(8
)
 
(23
)
 
Income tax expense
Net change in pensions and other postretirement defined benefit plans
 
16

 
48

 
 
 
 
 
 
 
 
 
Total reclassifications for the period
 
$
17

 
$
40

 
 
_______________________________________________________________________

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4).