Quarterly report pursuant to Section 13 or 15(d)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

v3.5.0.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 6 Months Ended
Jul. 03, 2016
Equity [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
NOTE 11. ACCUMULATED OTHER COMPREHENSIVE LOSS
Following are the changes in accumulated other comprehensive (loss) income by component for the three and six months ended:
 
 
Three months ended
In millions
 
Change in
pensions and
other
postretirement
defined benefit
plans
 
Foreign
currency
translation
adjustment
 
Unrealized gain
(loss) on
marketable
securities
 
Unrealized gain
(loss) on
derivatives
 
Total
attributable to
Cummins Inc.
 
Noncontrolling
interests
 
Total other comprehensive income (loss)
Balance at March 29, 2015
 
$
(656
)
 
$
(587
)
 
$
(1
)
 
$
(1
)
 
$
(1,245
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
—

 
153

 
—

 
9

 
162

 
$
(6
)
 
$
156

Tax expense
 
—

 
(1
)
 
—

 
(2
)
 
(3
)
 
—

 
(3
)
After tax amount
 
—

 
152

 
—

 
7

 
159

 
(6
)
 
153

Amounts reclassified from accumulated other comprehensive income(1)(2)
 
15

 
—

 
—

 
—

 
15

 
1

 
16

Net current period other comprehensive (loss) income
 
15

 
152

 
—

 
7

 
174

 
$
(5
)
 
$
169

Balance at June 28, 2015
 
$
(641
)
 
$
(435
)
 
$
(1
)
 
$
6

 
$
(1,071
)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at April 3, 2016
 
$
(645
)
 
$
(753
)
 
$
(2
)
 
$
(17
)
 
$
(1,417
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
—

 
(207
)
 
1

 
(10
)
 
(216
)
 
$
(6
)
 
$
(222
)
Tax benefit
 
—

 
—

 
—

 
2

 
2

 
—

 
2

After tax amount
 
—

 
(207
)
 
1

 
(8
)
 
(214
)
 
(6
)
 
(220
)
Amounts reclassified from accumulated other comprehensive income(1)(2)
 
9

 
—

 
—

 
2

 
11

 
—

 
11

Net current period other comprehensive (loss) income
 
9

 
(207
)
 
1

 
(6
)
 
(203
)
 
$
(6
)
 
$
(209
)
Balance at July 3, 2016
 
$
(636
)
 
$
(960
)
 
$
(1
)
 
$
(23
)
 
$
(1,620
)
 
 

 
 

____________________________________
(1) Amounts are net of tax.  
(2) See reclassifications out of accumulated other comprehensive (loss) income disclosure below for further details.  
 
 
Six months ended
In millions
 
Change in
pensions and
other
postretirement
defined benefit
plans
 
Foreign
currency
translation
adjustment
 
Unrealized gain
(loss) on
marketable
securities
 
Unrealized gain
(loss) on
derivatives
 
Total
attributable to
Cummins Inc.
 
Noncontrolling
interests
 
Total other comprehensive income (loss)
Balance at December 31, 2014
 
$
(669
)
 
$
(406
)
 
$
(1
)
 
$
(2
)
 
$
(1,078
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
(3
)
 
(51
)
 
1

 
10

 
(43
)
 
$
(2
)
 
$
(45
)
Tax benefit (expense)
 
1

 
22

 
—

 
(2
)
 
21

 
—

 
21

After tax amount
 
(2
)
 
(29
)
 
1

 
8

 
(22
)
 
(2
)
 
(24
)
Amounts reclassified from accumulated other comprehensive income(1)(2)
 
30

 
—

 
(1
)
 
—

 
29

 
—

 
29

Net current period other comprehensive income (loss)
 
28

 
(29
)
 
—

 
8

 
7

 
$
(2
)
 
$
5

Balance at June 28, 2015
 
$
(641
)
 
$
(435
)
 
$
(1
)
 
$
6

 
$
(1,071
)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2015
 
$
(654
)
 
$
(696
)
 
$
(2
)
 
$
4

 
$
(1,348
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
—

 
(265
)
 
1

 
(36
)
 
(300
)
 
$
(6
)
 
$
(306
)
Tax benefit
 
—

 
1

 
—

 
6

 
7

 
—

 
7

After tax amount
 
—

 
(264
)
 
1

 
(30
)
 
(293
)
 
(6
)
 
(299
)
Amounts reclassified from accumulated other comprehensive income(1)(2)
 
18

 
—

 
—

 
3

 
21

 
—

 
21

Net current period other comprehensive income (loss)
 
18

 
(264
)
 
1

 
(27
)
 
(272
)
 
$
(6
)
 
$
(278
)
Balance at July 3, 2016
 
$
(636
)
 
$
(960
)
 
$
(1
)
 
$
(23
)
 
$
(1,620
)
 
 

 
 


____________________________________
(1) Amounts are net of tax.  
(2) See reclassifications out of accumulated other comprehensive (loss) income disclosure below for further details.
Following are the items reclassified out of accumulated other comprehensive (loss) income and the related tax effects:
In millions
 
Three months ended
 
Six months ended
 
 
(Gain)/Loss Components
 
July 3,
2016
 
June 28,
2015
 
July 3,
2016
 
June 28,
2015
 
Statement of Income Location
 
 
 
 
 
 
 
 
 
 
 
Change in pension and other postretirement defined benefit plans
 
 

 
 
 
 

 
 
 
 
Recognized actuarial loss
 
$
13

 
$
21

 
$
26

 
$
43

 
(1) 
Tax effect
 
(4
)
 
(6
)
 
(8
)
 
(13
)
 
Income tax expense
Net change in pensions and other postretirement defined benefit plans
 
9

 
15

 
18

 
30

 
 
 
 
 
 
 
 
 
 
 
 
 
Realized (gain) on marketable securities
 
—

 
—

 
—

 
(1
)
 
Other income (expense), net
Tax effect
 
—

 
1

 
—

 
—

 
Income tax expense
Net realized loss (gain) on marketable securities
 
—


1

 
—


(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized (gain) loss on derivatives
 
 

 
 
 
 

 
 
 
 
Foreign currency forward contracts
 
4

 
—

 
5

 
—

 
Net sales
Tax effect
 
(2
)
 
—

 
(2
)
 
—

 
Income tax expense
Net realized loss on derivatives
 
2


—

 
3


—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period
 
$
11


$
16

 
$
21


$
29

 
 
____________________________________
(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'').