Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENTS FINANCIAL INFORMATION (Details) Reportable Operating Segments, EBITDA Reconciliation to GAAP

v3.20.4
OPERATING SEGMENTS FINANCIAL INFORMATION (Details) Reportable Operating Segments, EBITDA Reconciliation to GAAP - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 27, 2020
Jun. 28, 2020
Mar. 29, 2020
Dec. 31, 2019
Sep. 29, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating results:                      
Net sales $ 5,830 $ 5,118 $ 3,852 $ 5,011 $ 5,578 $ 5,768 $ 6,221 $ 6,004 $ 19,811 [1] $ 23,571 [1] $ 23,771 [1]
Research, development and engineering expenses                 906 1,001 902
Equity, royalty and interest income from investees                 452 330 394
Interest income                 21 46 35
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   3,731  
Restructuring actions         119       0 119 0
EBITDA                 3,108 3,612 3,476
Depreciation and Amortization                 670 669 609
Amortization of Debt Discount                 3 3 2
Interest Expense                 100 109 114
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest                 2,338 2,834 2,753
Income Tax Expense (Benefit)                 527 566 566
Statement of Financial Position [Abstract]                      
Net assets 9,266       9,258       9,266 9,258 9,220
Investments and advances to equity method investees 1,441       1,237       1,441 1,237 1,222
Capital expenditures                 528 700 709
Net income                 1,811 2,268 2,187
Less: Net income attributable to noncontrolling interests                 22 8 46
Cummins share of net income 501 $ 501 $ 276 $ 511 300 $ 622 $ 675 $ 663 1,789 2,260 2,141
Engine                      
Operating results:                      
Net sales                 8,022 10,056 10,566
Research, development and engineering expenses                 290 337 311
Equity, royalty and interest income from investees                 312 200 238
Interest income                 9 15 11
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   1,472  
Restructuring actions                   18  
EBITDA                 1,235 1,454 1,446
Depreciation and Amortization                 208 202 190
Statement of Financial Position [Abstract]                      
Net assets 1,306       1,094       1,306 1,094 1,265
Investments and advances to equity method investees 681       575       681 575 561
Capital expenditures                 202 240 254
Distribution                      
Operating results:                      
Net sales                 7,136 8,071 7,828
Research, development and engineering expenses                 31 28 20
Equity, royalty and interest income from investees                 62 52 46
Interest income                 4 15 13
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   693  
Restructuring actions                   37  
EBITDA                 665 656 563
Depreciation and Amortization                 122 115 109
Statement of Financial Position [Abstract]                      
Net assets 2,444       2,536       2,444 2,536 2,677
Investments and advances to equity method investees 313       296       313 296 278
Capital expenditures                 89 136 133
Components                      
Operating results:                      
Net sales                 6,024 6,914 7,166
Research, development and engineering expenses                 264 300 272
Equity, royalty and interest income from investees                 61 40 54
Interest income                 4 8 5
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   1,117  
Restructuring actions                   20  
EBITDA                 961 1,097 1,030
Depreciation and Amortization                 192 222 185
Statement of Financial Position [Abstract]                      
Net assets 2,878       2,911       2,878 2,911 2,878
Investments and advances to equity method investees 215       193       215 193 206
Capital expenditures                 140 191 182
Power Systems                      
Operating results:                      
Net sales                 3,631 4,460 4,626
Research, development and engineering expenses                 212 230 230
Equity, royalty and interest income from investees                 21 38 56
Interest income                 4 8 6
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   524  
Restructuring actions                   12  
EBITDA                 343 512 614
Depreciation and Amortization                 130 118 119
Statement of Financial Position [Abstract]                      
Net assets 2,134       2,245       2,134 2,245 2,262
Investments and advances to equity method investees 200       171       200 171 177
Capital expenditures                 79 107 129
New Power                      
Operating results:                      
Net sales                 72 38 7
Research, development and engineering expenses                 109 106 69
Equity, royalty and interest income from investees                 (4) 0 0
Interest income                 0 0 0
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   (148)  
Restructuring actions                   1  
EBITDA                 (172) (149) (90)
Depreciation and Amortization                 18 12 6
Statement of Financial Position [Abstract]                      
Net assets 504       472       504 472 138
Investments and advances to equity method investees 32       2       32 2 0
Capital expenditures                 18 26 11
Total Segment                      
Operating results:                      
Net sales                 24,885 29,539 30,193
Research, development and engineering expenses                 906 1,001 902
Equity, royalty and interest income from investees                 452 330 394
Interest income                 21 46 35
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   3,658  
Restructuring actions                   88  
EBITDA                 3,032 3,570 3,563
Depreciation and Amortization                 670 669 609
Statement of Financial Position [Abstract]                      
Net assets 9,266       9,258       9,266 9,258 9,220
Investments and advances to equity method investees $ 1,441       $ 1,237       1,441 1,237 1,222
Capital expenditures                 528 700 709
Corporate and Other                      
Operating results:                      
Net sales                 (5,074) (5,968) (6,422)
Segment Reporting Information Income (Loss) before Interest Expense and Income Taxes Excluding and Restructuring Actions and Other Charges                   73  
EBITDA                 76 42 (87)
Corporate Segment                      
Operating results:                      
Restructuring actions                   31  
External Sales                      
Operating results:                      
Net sales                 19,811 23,571 23,771
External Sales | Engine                      
Operating results:                      
Net sales                 5,925 7,570 8,002
External Sales | Distribution                      
Operating results:                      
Net sales                 7,110 8,040 7,807
External Sales | Components                      
Operating results:                      
Net sales                 4,650 5,253 5,331
External Sales | Power Systems                      
Operating results:                      
Net sales                 2,055 2,670 2,625
External Sales | New Power                      
Operating results:                      
Net sales                 71 38 6
External Sales | Total Segment                      
Operating results:                      
Net sales                 19,811 23,571 23,771
Intersegment sales | Engine                      
Operating results:                      
Net sales                 2,097 2,486 2,564
Intersegment sales | Distribution                      
Operating results:                      
Net sales                 26 31 21
Intersegment sales | Components                      
Operating results:                      
Net sales                 1,374 1,661 1,835
Intersegment sales | Power Systems                      
Operating results:                      
Net sales                 1,576 1,790 2,001
Intersegment sales | New Power                      
Operating results:                      
Net sales                 1 0 1
Intersegment sales | Total Segment                      
Operating results:                      
Net sales                 5,074 5,968 6,422
Intersegment sales | Corporate and Other                      
Operating results:                      
Net sales                 $ (5,074) $ (5,968) $ (6,422)
[1] (a)Includes sales to nonconsolidated equity investees of $1,283 million, $1,191 million and $1,267 million for the years ended December 31, 2020, 2019 and 2018, respectively.