NOTE 11. 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, 2013 |
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$ |
(611 |
) |
|
$ |
(179 |
) |
|
$ |
7 |
|
|
$ |
(1 |
) |
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$ |
(784 |
) |
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Other comprehensive income before reclassifications |
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Before tax amount |
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(7 |
) |
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24 |
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(1 |
) |
|
3 |
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19 |
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$ |
7 |
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$ |
26 |
|
Tax (expense) benefit |
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1 |
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— |
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— |
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(1 |
) |
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— |
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— |
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— |
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After tax amount |
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(6 |
) |
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24 |
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(1 |
) |
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2 |
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19 |
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|
7 |
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26 |
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Amounts reclassified from accumulated other comprehensive income(1)(2)
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10 |
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— |
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— |
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— |
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10 |
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(1 |
) |
|
9 |
|
Net current period other comprehensive income (loss) |
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4 |
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24 |
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(1 |
) |
|
2 |
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|
29 |
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|
$ |
6 |
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|
$ |
35 |
|
Balance at March 30, 2014 |
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$ |
(607 |
) |
|
$ |
(155 |
) |
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$ |
6 |
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$ |
1 |
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$ |
(755 |
) |
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Balance at December 31, 2014 |
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$ |
(669 |
) |
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$ |
(406 |
) |
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$ |
(1 |
) |
|
$ |
(2 |
) |
|
$ |
(1,078 |
) |
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Other comprehensive income before reclassifications |
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Before tax amount |
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(3 |
) |
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(204 |
) |
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1 |
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1 |
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(205 |
) |
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$ |
4 |
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$ |
(201 |
) |
Tax (expense) benefit |
|
1 |
|
|
23 |
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— |
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— |
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|
24 |
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— |
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|
24 |
|
After tax amount |
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(2 |
) |
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(181 |
) |
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1 |
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|
1 |
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(181 |
) |
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4 |
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(177 |
) |
Amounts reclassified from accumulated other comprehensive income(1)(2)
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|
15 |
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— |
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(1 |
) |
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— |
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|
14 |
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|
(1 |
) |
|
13 |
|
Net current period other comprehensive income (loss) |
|
13 |
|
|
(181 |
) |
|
— |
|
|
1 |
|
|
(167 |
) |
|
$ |
3 |
|
|
$ |
(164 |
) |
Balance at March 29, 2015 |
|
$ |
(656 |
) |
|
$ |
(587 |
) |
|
$ |
(1 |
) |
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$ |
(1 |
) |
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$ |
(1,245 |
) |
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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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Three months ended |
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(Gain)/Loss Components |
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March 29,
2015 |
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March 30,
2014 |
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Statement of Income Location |
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Change in pension and other postretirement defined benefit plans |
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Recognized actuarial loss |
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$ |
22 |
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$ |
15 |
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(1) |
Total before taxes |
|
22 |
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|
15 |
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Tax effect |
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(7 |
) |
|
(5 |
) |
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Income tax expense |
Net change in pensions and other postretirement defined benefit plans |
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$ |
15 |
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$ |
10 |
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Realized (gain) loss on marketable securities |
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$ |
(1 |
) |
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$ |
(1 |
) |
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Other income (expense), net |
Tax effect |
|
(1 |
) |
|
— |
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Income tax expense |
Net realized (gain) loss on marketable securities |
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$ |
(2 |
) |
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$ |
(1 |
) |
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Realized (gain) loss on derivatives |
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Foreign currency forward contracts |
|
$ |
— |
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|
$ |
(2 |
) |
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Net sales |
Commodity swap contracts |
|
— |
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|
2 |
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Cost of sales |
Total before taxes |
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— |
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— |
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Tax effect |
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— |
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— |
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Income tax expense |
Net realized (gain) loss on derivatives |
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$ |
— |
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$ |
— |
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Total reclassifications for the period |
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$ |
13 |
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$ |
9 |
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(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 3, ''PENSION AND OTHER POSTRETIREMENT BENEFITS'').
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