NOTE 15. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Following are the changes in accumulated other comprehensive income (loss) by component:
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In millions |
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Change in
pensions and
other
postretirement
defined benefit
plans
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Foreign
currency
translation
adjustment
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Unrealized gain
(loss) on
marketable
securities
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Unrealized gain
(loss) on
derivatives
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Total
attributable to
Cummins Inc.
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Noncontrolling
interests
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Total |
Balance at December 31, 2011 |
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$ |
(724 |
) |
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$ |
(198 |
) |
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$ |
4 |
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|
$ |
(20 |
) |
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$ |
(938 |
) |
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Other comprehensive income before reclassifications |
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Before tax amount |
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(164 |
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51 |
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|
6 |
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|
16 |
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(91 |
) |
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$ |
(8 |
) |
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$ |
(99 |
) |
Tax (expense) benefit |
|
54 |
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|
(14 |
) |
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(2 |
) |
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(4 |
) |
|
34 |
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— |
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|
34 |
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After tax amount |
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(110 |
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|
37 |
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|
4 |
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|
12 |
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(57 |
) |
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(8 |
) |
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(65 |
) |
Amounts reclassified from accumulated other comprehensive income(1)
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|
40 |
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— |
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(3 |
) |
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8 |
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|
45 |
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|
1 |
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|
46 |
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Net current period other comprehensive income (loss) |
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(70 |
) |
|
37 |
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|
1 |
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|
20 |
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|
(12 |
) |
|
$ |
(7 |
) |
|
$ |
(19 |
) |
Balance at December 31, 2012 |
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$ |
(794 |
) |
|
$ |
(161 |
) |
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$ |
5 |
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|
$ |
— |
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|
$ |
(950 |
) |
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Other comprehensive income before reclassifications |
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Before tax amount |
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206 |
|
|
(31 |
) |
|
16 |
|
|
(6 |
) |
|
185 |
|
|
$ |
(28 |
) |
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$ |
157 |
|
Tax (expense) benefit |
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(87 |
) |
|
13 |
|
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(9 |
) |
|
3 |
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(80 |
) |
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— |
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(80 |
) |
After tax amount |
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119 |
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(18 |
) |
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7 |
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(3 |
) |
|
105 |
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(28 |
) |
|
77 |
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Amounts reclassified from accumulated other comprehensive income(1)(2)
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|
64 |
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— |
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(5 |
) |
|
2 |
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|
61 |
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(1 |
) |
|
60 |
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Net current period other comprehensive income (loss) |
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183 |
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(18 |
) |
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2 |
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(1 |
) |
|
166 |
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|
$ |
(29 |
) |
|
$ |
137 |
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Balance at December 31, 2013 |
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$ |
(611 |
) |
|
$ |
(179 |
) |
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$ |
7 |
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|
$ |
(1 |
) |
|
$ |
(784 |
) |
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Other comprehensive income before reclassifications |
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Before tax amount |
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(196 |
) |
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(241 |
) |
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2 |
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|
2 |
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(433 |
) |
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$ |
(7 |
) |
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$ |
(440 |
) |
Tax (expense) benefit |
|
92 |
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|
14 |
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(1 |
) |
|
(1 |
) |
|
104 |
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— |
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|
104 |
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After tax amount |
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(104 |
) |
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(227 |
) |
|
1 |
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|
1 |
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(329 |
) |
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(7 |
) |
|
(336 |
) |
Amounts reclassified from accumulated other comprehensive income(1)(2)
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|
46 |
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— |
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(9 |
) |
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(2 |
) |
|
35 |
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|
(4 |
) |
|
31 |
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Net current period other comprehensive income (loss) |
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(58 |
) |
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(227 |
) |
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(8 |
) |
|
(1 |
) |
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(294 |
) |
|
$ |
(11 |
) |
|
$ |
(305 |
) |
Balance at December 31, 2014 |
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$ |
(669 |
) |
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$ |
(406 |
) |
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$ |
(1 |
) |
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$ |
(2 |
) |
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$ |
(1,078 |
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_______________________________________________________________________
(1) Amounts are net of tax.
(2) See reclassifications out of accumulated other comprehensive income (loss) disclosure below for further details.
Following are the items reclassified out of accumulated other comprehensive income (loss) and the related tax effects:
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In millions |
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Years ended December 31, |
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(Gain)/Loss Components |
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2014 |
|
2013 |
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Statement of Income Location |
Realized (gain) loss on marketable securities |
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$ |
(14 |
) |
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$ |
(13 |
) |
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Other income (expense), net |
Income tax expense |
|
1 |
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|
7 |
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Income tax expense |
Net realized (gain) loss on marketable securities |
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$ |
(13 |
) |
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$ |
(6 |
) |
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Realized (gain) loss on derivatives |
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Foreign currency forward contracts |
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$ |
(5 |
) |
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$ |
2 |
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Net sales |
Commodity swap contracts |
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2 |
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|
1 |
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Cost of sales |
Total before taxes |
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(3 |
) |
|
3 |
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Income tax expense (benefit) |
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1 |
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(1 |
) |
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Income tax expense |
Net realized (gain) loss on derivatives |
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$ |
(2 |
) |
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$ |
2 |
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Change in pension and other postretirement defined benefit plans |
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Recognized actuarial loss |
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$ |
63 |
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$ |
95 |
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(1) |
Total before taxes |
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63 |
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|
95 |
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Income tax expense (benefit) |
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(17 |
) |
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(31 |
) |
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Income tax expense |
Net change in pensions and other postretirement defined benefit plans |
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$ |
46 |
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$ |
64 |
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Total reclassifications for the period |
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$ |
31 |
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$ |
60 |
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_______________________________________________________________________
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11, ''PENSION AND OTHER POSTRETIREMENT BENEFITS'').
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