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

Annual report pursuant to Section 13 and 15(d)

Cover
- Document and Entity Information
Financial Statements
Notes to Financial Statements
Accounting Policies
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Notes Tables
Notes Details

PRODUCT WARRANTY LIABILITY (Details)

v3.3.1.900

PRODUCT WARRANTY LIABILITY (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Product Warranty Liability:
Balance, beginning of year	$ 1,283	$ 1,129
Provision for warranties issued	391	411
Deferred revenue on extended warranty contracts sold	290	263
Payments	(389)	(404)
Amortization of deferred revenue on extended warranty contracts	(179)	(148)
Changes in estimates for pre-existing warranties	20	41
Foreign currency translation	(12)	(9)
Balance, end of period	1,404	1,283
Product Warranty Liability
Deferred revenue related to extended coverage programs, Current portion	403	401
Deferred revenue related to extended coverage programs, Noncurrent portion	583	513
Total deferred revenue related to extended coverage programs	718	608
Total receivables related to estimated supplier recoveries	10	16
Long-term portion of warranty liability	327	312
Deferred Revenue
Product Warranty Liability
Deferred revenue related to extended coverage programs, Current portion	189	170
Other liabilities and deferred revenue
Product Warranty Liability
Deferred revenue related to extended coverage programs, Noncurrent portion	529	438
Long-term portion of warranty liability	327	312
Trade and other receivables
Product Warranty Liability
Receivables related to estimated supplier recoveries, Current portion	6	12
Other assets
Product Warranty Liability
Receivables related to estimated supplier recoveries, Long-term portion	$ 4	$ 4

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The carrying amount of consideration received or receivable related to extended coverage programs, as of the balance sheet date, on potential earnings that were not recognized as revenue in conformity with GAAP.

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