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

Annual report pursuant to Section 13 and 15(d)

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details)

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Amounts recognized in consolidated balance sheets
Prepaid pensions - long-term assets	$ 637	$ 514
Pensions - long-term liabilities	(289)	(232)
Postretirement benefits other than pensions - long-term liabilities	(369)	(356)
U.S. Plans
Change in benefit obligation
Benefit obligation at beginning of year	2,261	2,454
Service cost	66	70	58
Interest cost	105	93	103
Actuarial losses (gains)	301	(193)
Benefits paid from fund	(143)	(150)
Benefits paid directly by employer	(11)	(13)
Benefit obligation at end of year	2,579	2,261	2,454
Change in plan assets
Fair value of plan assets at beginning of year	2,445	2,327
Actual return on plan assets	311	168
Employer contributions	100	100
Benefits paid from fund	(143)	(150)
Fair value of plan assets at end of year	2,713	2,445	2,327
Funded status
Funded status (including underfunded and nonfunded plans) at end of year	134	184
Amounts recognized in consolidated balance sheets
Prepaid pensions - long-term assets	435	427
Accrued compensation, benefits and retirement costs-current liabilities	(12)	(11)
Pensions - long-term liabilities	(289)	(232)
Net amount recognized	134	184
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	611	478
Prior service credit	(1)	(1)
Net amount recognized	610	477
Non-U.S. Plans
Change in benefit obligation
Benefit obligation at beginning of year	1,429	1,269
Service cost	24	21	21
Interest cost	63	57	59
Actuarial losses (gains)	139	96
Benefits paid from fund	(48)	(50)
Exchange rate changes	(85)	37
Other		(1)
Benefit obligation at end of year	1,522	1,429	1,269
Change in plan assets
Fair value of plan assets at beginning of year	1,516	1,324
Actual return on plan assets	254	142
Employer contributions	94	56
Benefits paid from fund	(48)	(50)
Exchange rate changes	(92)	44
Fair value of plan assets at end of year	1,724	1,516	1,324
Funded status
Funded status (including underfunded and nonfunded plans) at end of year	202	87
Amounts recognized in consolidated balance sheets
Prepaid pensions - long-term assets	202	87
Net amount recognized	202	87
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	286	361
Net amount recognized	286	361
Other Postretirement Benefits
Change in benefit obligation
Benefit obligation at beginning of year	398	478
Interest cost	17	17	21
Actuarial losses (gains)	38	(49)
Benefits paid directly by employer	(55)	(58)
Benefit obligation at end of year	408	398	478
Plan participants' contributions	10	10
Funded status
Funded status (including underfunded and nonfunded plans) at end of year	(408)	(398)
Amounts recognized in consolidated balance sheets
Accrued compensation, benefits and retirement costs-current liabilities	(39)	(42)
Postretirement benefits other than pensions - long-term liabilities	(369)	(356)
Net amount recognized	(408)	(398)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	65	27
Prior service credit	(5)	(5)
Net amount recognized	$ 60	$ 22