Cummins Inc. Quarterly report pursuant to Section 13 or 15(d)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 27, 2020

NOTE 13. ACCUMULATED OTHER COMPREHENSIVE LOSS

Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended:



In millions	Change in pensions and other postretirement defined benefit plans		Foreign currency translation adjustment		Unrealized gain (loss) on derivatives		Total attributable to Cummins Inc.		Noncontrolling interests		Total
Balance at June 28, 2020	$	(716)	$	(1,436)	$	(90)	$	(2,242)
Other comprehensive income before reclassifications
Before-tax amount	—		101		23		124		$	10	$	134
Tax benefit (expense)	—		—		(5)		(5)		—		(5)
After-tax amount	—		101		18		119		10		129
Amounts reclassified from accumulated other comprehensive income (loss)⁽¹⁾	16		—		—		16		—		16

Net current period other comprehensive income (loss)	16		101		18		135		$	10	$	145
Balance at September 27, 2020	$	(700)	$	(1,335)	$	(72)	$	(2,107)

Balance at June 30, 2019	$	(675)	$	(1,156)	$	(9)	$	(1,840)
Other comprehensive income (loss) before reclassifications
Before-tax amount	—		(177)		(39)		(216)		$	(5)	$	(221)
Tax benefit (expense)	—		—		8		8		—		8
After-tax amount	—		(177)		(31)		(208)		(5)		(213)
Amounts reclassified from accumulated other comprehensive income (loss)⁽¹⁾	6		—		2		8		—		8
Net current period other comprehensive income (loss)	6		(177)		(29)		(200)		$	(5)	$	(205)
Balance at September 29, 2019	$	(669)	$	(1,333)	$	(38)	$	(2,040)

⁽¹⁾ Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

Following are the changes in accumulated other comprehensive income (loss) by component for the nine months ended:




In millions	Change in pensions and other postretirement defined benefit plans		Foreign currency translation adjustment		Unrealized gain (loss) on derivatives			Total attributable to Cummins Inc.		Noncontrolling interests		Total
Balance at December 31, 2019	$	(734)	$	(1,285)	$	(9)		$	(2,028)
Other comprehensive income (loss) before reclassifications
Before-tax amount	(19)		(54)		(75)			(148)		$	(12)	$	(160)
Tax benefit (expense)	5		4		16			25		—		25
After-tax amount	(14)		(50)		(59)			(123)		(12)		(135)
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾	48		—		(4)			44		—		44
Net current period other comprehensive income (loss)	34		(50)		(63)		⁽²⁾	(79)		$	(12)	$	(91)
Balance at September 27, 2020	$	(700)	$	(1,335)	$	(72)		$	(2,107)

Balance at December 31, 2018	$	(671)	$	(1,138)	$	2		$	(1,807)
Other comprehensive income (loss) before reclassifications
Before-tax amount	(22)		(194)		(47)			(263)		$	(2)	$	(265)
Tax benefit (expense)	5		(1)		11			15		—		15
After-tax amount	(17)		(195)		(36)			(248)		(2)		(250)
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾	19		—		(4)			15		—		15
Net current period other comprehensive income (loss)	2		(195)		(40)			(233)		$	(2)	$	(235)
Balance at September 29, 2019	$	(669)	$	(1,333)	$	(38)		$	(2,040)










⁽¹⁾ Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.
⁽²⁾ Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 9 "DEBT" for additional information.