Cummins Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INVENTORIES

INVENTORIES

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 6. INVENTORIES

Inventories are stated at the lower of cost or market. Inventories included the following:



	December 31,
In millions	2014			2013
Finished products	$	1,859		$	1,487
Work-in-process and raw materials	1,129			1,005
Inventories at FIFO cost	2,988			2,492
Excess of FIFO over LIFO	(122		)	(111		)
Total inventories	$	2,866		$	2,381

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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