Annual report pursuant to Section 13 and 15(d)

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

v3.6.0.2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables)
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Changes in accumulated other comprehensive income (loss) by component
Following are the changes in accumulated other comprehensive income (loss) by component:
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
Balance at December 31, 2013
 
$
(611
)
 
$
(179
)
 
$
7

 
$
(1
)
 
$
(784
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
(196
)
 
(241
)
 
2

 
2

 
(433
)
 
$
(7
)
 
$
(440
)
Tax benefit (expense)
 
92

 
14

 
(1
)
 
(1
)
 
104

 
—

 
104

After tax amount
 
(104
)
 
(227
)
 
1

 
1

 
(329
)
 
(7
)
 
(336
)
Amounts reclassified from accumulated other comprehensive income(1)(2)
 
46

 
—

 
(9
)
 
(2
)
 
35

 
(4
)
 
31

Net current period other comprehensive income (loss)
 
(58
)
 
(227
)
 
(8
)
 
(1
)
 
(294
)
 
$
(11
)
 
$
(305
)
Balance at December 31, 2014
 
$
(669
)
 
$
(406
)
 
$
(1
)
 
$
(2
)
 
$
(1,078
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
(81
)
 
(366
)
 
—

 
17

 
(430
)
 
$
(15
)
 
$
(445
)
Tax benefit (expense)
 
35

 
76

 
—

 
(1
)
 
110

 
—

 
110

After tax amount
 
(46
)
 
(290
)
 
—

 
16

 
(320
)
 
(15
)
 
(335
)
Amounts reclassified from accumulated other comprehensive income(1)(2)
 
61

 
—

 
(1
)
 
(10
)
 
50

 
—

 
50

Net current period other comprehensive income (loss)
 
15

 
(290
)
 
(1
)
 
6

 
(270
)
 
$
(15
)
 
$
(285
)
Balance at December 31, 2015
 
$
(654
)
 
$
(696
)
 
$
(2
)
 
$
4

 
$
(1,348
)
 
 

 
 

Other comprehensive income before reclassifications
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
 
(111
)
 
(469
)
 
1

 
(38
)
 
(617
)
 
$
(17
)
 
$
(634
)
Tax benefit
 
44

 
38

 
—

 
6

 
88

 
—

 
88

After tax amount
 
(67
)
 
(431
)
 
1

 
(32
)
 
(529
)
 
(17
)
 
(546
)
Amounts reclassified from accumulated other comprehensive income(1)(2)
 
36

 
—

 
—

 
20

 
56

 
—

 
56

Net current period other comprehensive income (loss)
 
(31
)
 
(431
)
 
1

 
(12
)
 
(473
)
 
$
(17
)
 
$
(490
)
Balance at December 31, 2016
 
$
(685
)
 
$
(1,127
)
 
$
(1
)
 
$
(8
)
 
$
(1,821
)
 
 

 
 


_______________________________________________________________________
(1) Amounts are net of tax.  
(2) See reclassifications out of accumulated other comprehensive (loss) income disclosure below for further details.
Schedule of reclassification out of accumulated other comprehensive income (loss) and related tax effects
Following are the items reclassified out of accumulated other comprehensive (loss) income and the related tax effects:
In millions
 
Years ended December 31,
 
 
(Gain)/Loss Components
 
2016
 
2015
 
2014
 
Statement of Income Location
Change in pensions and other postretirement defined benefit plans
 
 
 
 
 
 
 
 
Recognized actuarial loss
 
$
53

 
$
87

 
$
63

 
(1) 
Tax effect
 
(17
)
 
(26
)
 
(17
)
 
Income tax expense
Net change in pensions and other postretirement defined benefit plans
 
36

 
61

 
46

 
 
 
 
 
 
 
 
 
 
 
Realized gain on marketable securities
 
—

 
(1
)
 
(14
)
 
Other income (expense), net
Tax effect
 
—

 
—

 
1

 
Income tax expense
Net realized gain on marketable securities
 
—

 
(1
)
 
(13
)
 
 
 
 
 
 
 
 
 
 
 
Realized loss (gain) on derivatives
 
 

 
 
 
 
 
 
Foreign currency forward contracts
 
27

 
(11
)
 
(5
)
 
Net sales
Commodity swap contracts
 
—

 
—

 
2

 
Cost of sales
Total before taxes
 
27

 
(11
)
 
(3
)
 
 
Tax effect
 
(7
)
 
1

 
1

 
Income tax expense
Net realized loss (gain) on derivatives
 
20

 
(10
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period
 
$
56

 
$
50

 
$
31

 
 
_______________________________________________________________________
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 8, ''PENSION AND OTHER POSTRETIREMENT BENEFITS'').