Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS (Details)

v3.6.0.2
ACQUISITIONS (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 05, 2016
Oct. 04, 2016
Jan. 01, 2016
Aug. 03, 2015
Jun. 29, 2015
Nov. 03, 2014
Sep. 29, 2014
Aug. 04, 2014
May 05, 2014
Mar. 31, 2014
Feb. 14, 2014
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Business Acquisition [Line Items]                              
Gain on remeasurement of pre-existing ownership interest in the acquiree company                       $ 15 $ 18 $ 73  
Business Combination Purchase Price Distributed in Future Quarters                       2      
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Goodwill                       $ 480 482 479  
Wuxi Cummins Turbo Technologies Co. Ltd.                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired 45.00%                            
Cash paid for business acquisition $ 86                            
Payments to Acquire Businesses Liabilities Paid 0                            
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1] 0                            
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill 0                            
Consideration transferred $ 86                            
Cummins Pacific LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired   50.00%                          
Cash paid for business acquisition   $ 30                          
Payments to Acquire Businesses Liabilities Paid   67                          
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]   15                          
Net sales prior to acquisition [2]                         $ 391    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Accounts receivable   65                          
Inventory   35                          
Fixed assets   56                          
Intangible assets, other than goodwill [3]   8                          
Goodwill   4                          
Other current assets   10                          
Current liabilities   (46)                          
Non-current liabilities   0                          
Total business valuation   132                          
Fair value of pre-existing interest   (33)                          
Consideration transferred [4]   $ 99                          
Cummins Northeast LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired     35.00%                        
Cash paid for business acquisition     $ 12                        
Payments to Acquire Businesses Liabilities Paid     0                        
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]     0                        
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill     0                        
Consideration transferred     $ 12                        
Cummins Crosspoint LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired       50.00%                      
Cash paid for business acquisition       $ 29                      
Payments to Acquire Businesses Liabilities Paid       36                      
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]       10                      
Net sales prior to acquisition [2]                           258  
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill [3]       2                      
Goodwill       7                      
Consideration transferred       $ 65                      
Cummins Atlantic LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired       51.00%                      
Cash paid for business acquisition       $ 21                      
Payments to Acquire Businesses Liabilities Paid       28                      
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]       8                      
Net sales prior to acquisition [2]                           $ 245  
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill [3]       6                      
Goodwill       5                      
Consideration transferred       $ 49                      
Cummins Central Power LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired         20.01%                    
Cash paid for business acquisition         $ 8                    
Payments to Acquire Businesses Liabilities Paid         0                    
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]         0                    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill         0                    
Consideration transferred         $ 8                    
Cummins Bridgeway LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired           54.00%                  
Cash paid for business acquisition           $ 32                  
Payments to Acquire Businesses Liabilities Paid           45                  
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]           13                  
Net sales prior to acquisition [2]                             $ 331
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill [3]           15                  
Goodwill           4                  
Consideration transferred           $ 77                  
Cummins Npower LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired             50.00%                
Cash paid for business acquisition             $ 39                
Payments to Acquire Businesses Liabilities Paid             34                
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]             15                
Net sales prior to acquisition [2]                             374
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill [3]             8                
Goodwill             7                
Consideration transferred             $ 73                
Cummins Power South LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired             50.00%                
Cash paid for business acquisition             $ 19                
Payments to Acquire Businesses Liabilities Paid             16                
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]             7                
Net sales prior to acquisition [2]                             239
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill [3]             1                
Goodwill             8                
Consideration transferred             $ 35                
Cummins Eastern Canada LP                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired               50.00%              
Cash paid for business acquisition               $ 30              
Payments to Acquire Businesses Liabilities Paid               32              
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]               18              
Net sales prior to acquisition [2]                             228
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Intangible assets, other than goodwill [3]               4              
Goodwill               5              
Consideration transferred               $ 62              
Cummins Power Systems LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired                 30.00%            
Cash paid for business acquisition                 $ 14            
Payments to Acquire Businesses Liabilities Paid                 0            
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Consideration transferred                 $ 14            
Cummins Southern Plains LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired                   50.00%          
Cash paid for business acquisition                   $ 44          
Payments to Acquire Businesses Liabilities Paid                   48          
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]                   13          
Net sales prior to acquisition [2]                             433
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Accounts receivable                   63          
Inventory                   59          
Fixed assets                   47          
Intangible assets, other than goodwill [3]                   11          
Goodwill                   1          
Other current assets                   8          
Current liabilities                   (53)          
Non-current liabilities                   0          
Total business valuation                   136          
Fair value of pre-existing interest                   (44)          
Consideration transferred                   $ 92          
Cummins Mid-South LLC                              
Business Acquisition [Line Items]                              
Business Acquisition, Percentage of Voting Interests Acquired                     62.20%        
Cash paid for business acquisition                     $ 57        
Payments to Acquire Businesses Liabilities Paid                     61        
Gain on remeasurement of pre-existing ownership interest in the acquiree company [1]                     7        
Net sales prior to acquisition [2]                             $ 368
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]                              
Accounts receivable                     71        
Inventory                     70        
Fixed assets                     37        
Intangible assets, other than goodwill [3]                     8        
Goodwill                     4        
Other current assets                     10        
Current liabilities                     (43)        
Non-current liabilities                     (4)        
Total business valuation                     153        
Fair value of pre-existing interest                     (35)        
Consideration transferred                     $ 118        
Maximum                              
Business Acquisition [Line Items]                              
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life                       5 years      
[1] All results from acquired entities were included in segment results subsequent to the acquisition date. Previously consolidated entities were accounted for as equity transactions (EQUITY). Newly consolidated entities were accounted for as business combinations (COMB) with gains recognized based on the requirement to remeasure our pre-existing ownership to fair value in accordance with GAAP and are included in the Consolidated Statements of Income as "Other income, net."
[2] Sales amounts are not fully incremental to our consolidated sales as the amount would be reduced by the elimination of sales to the previously unconsolidated entity.
[3] Intangible assets acquired in business combinations were mostly customer related, the majority of which will be amortized over a period of up to five years from the date of the acquisition.
[4] The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. In some instances a portion of the acquisition payment has not yet been made and will be paid in future periods in accordance with the purchase contract. The total outstanding consideration at December 31, 2016, was $2 million.