NOTE 16. ACCUMULATED OTHER COMPREHENSIVE 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, 2012 |
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$ |
(794 |
) |
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$ |
(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 |
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(31 |
) |
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16 |
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(6 |
) |
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185 |
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|
$ |
(28 |
) |
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$ |
157 |
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Tax (provision) benefit |
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(87 |
) |
|
13 |
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(9 |
) |
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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 |
) |
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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 |
) |
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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 |
) |
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$ |
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 |
) |
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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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(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 |
) |
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(1 |
) |
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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 |
) |
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1 |
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1 |
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(329 |
) |
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(7 |
) |
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(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 |
) |
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35 |
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(4 |
) |
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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 |
) |
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(1 |
) |
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(294 |
) |
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$ |
(11 |
) |
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$ |
(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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Other comprehensive income before reclassifications |
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Before tax amount |
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(81 |
) |
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(366 |
) |
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— |
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|
17 |
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(430 |
) |
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$ |
(15 |
) |
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$ |
(445 |
) |
Tax (expense) benefit |
|
35 |
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|
76 |
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— |
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(1 |
) |
|
110 |
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— |
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|
110 |
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After tax amount |
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(46 |
) |
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(290 |
) |
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— |
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|
16 |
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(320 |
) |
|
(15 |
) |
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(335 |
) |
Amounts reclassified from accumulated other comprehensive income(1)(2)
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|
61 |
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— |
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(1 |
) |
|
(10 |
) |
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50 |
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— |
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|
50 |
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Net current period other comprehensive income (loss) |
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15 |
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(290 |
) |
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(1 |
) |
|
6 |
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|
(270 |
) |
|
$ |
(15 |
) |
|
$ |
(285 |
) |
Balance at December 31, 2015 |
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$ |
(654 |
) |
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$ |
(696 |
) |
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$ |
(2 |
) |
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$ |
4 |
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$ |
(1,348 |
) |
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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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2015 |
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2014 |
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2013 |
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Statement of Income Location |
Change in pension and other postretirement defined benefit plans |
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Recognized actuarial loss |
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$ |
87 |
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$ |
63 |
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$ |
95 |
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(1) |
Total before taxes |
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87 |
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63 |
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|
95 |
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Tax effect |
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(26 |
) |
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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 |
|
61 |
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|
46 |
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|
64 |
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Realized gain on marketable securities |
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(1 |
) |
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(14 |
) |
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(13 |
) |
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Other income (expense), net |
Tax effect |
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— |
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|
1 |
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7 |
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Income tax expense |
Net realized gain on marketable securities |
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(1 |
) |
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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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(11 |
) |
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(5 |
) |
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2 |
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Net sales |
Commodity swap contracts |
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— |
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2 |
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1 |
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Cost of sales |
Total before taxes |
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(11 |
) |
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(3 |
) |
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3 |
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Tax effect |
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1 |
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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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(10 |
) |
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(2 |
) |
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2 |
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Total reclassifications for the period |
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$ |
50 |
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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 10, ''PENSION AND OTHER POSTRETIREMENT BENEFITS'').
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