Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENTS FINANCIAL INFORMATION (Details)

v3.6.0.2
OPERATING SEGMENTS FINANCIAL INFORMATION (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Oct. 02, 2016
Jul. 03, 2016
Apr. 03, 2016
Dec. 31, 2015
Sep. 27, 2015
Jun. 28, 2015
Mar. 29, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Operating results:                      
Total sales $ 4,503 $ 4,187 $ 4,528 $ 4,291 $ 4,766 $ 4,620 $ 5,015 $ 4,709 $ 17,509 [1] $ 19,110 [1] $ 19,221 [1]
Depreciation and amortization [2]                 527 511 452
Research, development and engineering expenses                 636 735 754
Equity, royalty and interest income from investees                 301 315 370
Interest income                 23 24 23
Loss Contingency, Loss in Period                 138 [3] 60 [3] 0
Impairment of light-duty diesel assets                 0 211 [4],[5] 0
Restructuring actions and other charges [6]                   90  
Segment EBIT                 1,999 2,090 2,498
Less: Interest expense                 69 65 64
INCOME BEFORE INCOME TAXES                 1,930 2,025 2,434
Amortization of Debt Discount (Premium)                 3 3 3
Gain on remeasurement of pre-existing ownership interest in the acquiree company                 15 18 73
Statement of Financial Position                      
Investments and advances related to equity method investees 946       975       946 975 981
Capital expenditures                 531 744 743
Net assets for operating segments 8,721       9,064       8,721 9,064 9,737
Liabilities deducted in arriving at net assets 6,152       5,920       6,152 5,920 6,009
Pension and other postretirement benefit adjustments excluded from net assets (284)       (242)       (284) (242) (319)
Deferred tax assets not allocated to segments 420       390       420 390 314
Debt-related costs not allocated to segments 2       2       2 2 23
Total assets 15,011       15,134       15,011 15,134 15,764
Engine                      
Operating results:                      
Total sales                 7,804 8,670 8,967
Depreciation and amortization [2]                 163 187 163
Research, development and engineering expenses                 226 263 265
Equity, royalty and interest income from investees                 148 146 118
Interest income                 10 11 9
Loss Contingency, Loss in Period   $ 99 $ 39 [4]           138 [3] 60 [3]  
Impairment of light-duty diesel assets [5]                   202  
Restructuring actions and other charges [6]                   17  
Segment EBIT                 686 636 1,031
Statement of Financial Position                      
Investments and advances related to equity method investees 427       445       427 445 415
Capital expenditures                 200 345 268
Net assets for operating segments 1,620       2,107       1,620 2,107 2,401
Distribution                      
Operating results:                      
Total sales                 6,181 6,229 5,174
Depreciation and amortization [2]                 116 105 86
Research, development and engineering expenses                 13 10 9
Equity, royalty and interest income from investees                 70 78 148
Interest income                 4 4 4
Restructuring actions and other charges [6]                   23  
Segment EBIT [4]                 392 412 491
Gain on remeasurement of pre-existing ownership interest in the acquiree company                 15 18 73
Statement of Financial Position                      
Investments and advances related to equity method investees 204       192       204 192 209
Capital expenditures                 96 125 89
Net assets for operating segments 2,604       2,330       2,604 2,330 2,441
Components                      
Operating results:                      
Total sales                 4,836 5,172 5,118
Depreciation and amortization [2]                 133 109 106
Research, development and engineering expenses                 208 236 230
Equity, royalty and interest income from investees                 41 35 36
Interest income                 4 4 4
Impairment of light-duty diesel assets [5]                   9  
Restructuring actions and other charges [6]                   13  
Segment EBIT                 641 727 684
Statement of Financial Position                      
Investments and advances related to equity method investees 176       150       176 150 164
Capital expenditures                 143 137 162
Net assets for operating segments 1,868       1,891       1,868 1,891 2,152
Power Systems                      
Operating results:                      
Total sales                 3,517 4,067 4,414
Depreciation and amortization [2]                 115 110 97
Research, development and engineering expenses                 189 226 250
Equity, royalty and interest income from investees                 42 56 68
Interest income                 5 5 6
Restructuring actions and other charges                   26 [6] 32
Segment EBIT                 263 [7] 335 361 [8]
Statement of Financial Position                      
Investments and advances related to equity method investees 139       188       139 188 193
Capital expenditures                 92 137 224
Net assets for operating segments $ 2,629       $ 2,736       2,629 2,736 2,743
Intersegment eliminations                      
Operating results:                      
Total sales                 (4,829) (5,028) (4,452)
Intersegment eliminations and corporate items                      
Operating results:                      
Segment EBIT                 17 (20) (69)
Corporate                      
Operating results:                      
Restructuring actions and other charges [6]                   11  
External sales                      
Operating results:                      
Total sales                 17,509 19,110 19,221
External sales | Engine                      
Operating results:                      
Total sales                 5,774 6,733 7,462
External sales | Distribution                      
Operating results:                      
Total sales                 6,157 6,198 5,135
External sales | Components                      
Operating results:                      
Total sales                 3,514 3,745 3,791
External sales | Power Systems                      
Operating results:                      
Total sales                 2,064 2,434 2,833
Intersegment sales | Engine                      
Operating results:                      
Total sales                 2,030 1,937 1,505
Intersegment sales | Distribution                      
Operating results:                      
Total sales                 24 31 39
Intersegment sales | Components                      
Operating results:                      
Total sales                 1,322 1,427 1,327
Intersegment sales | Power Systems                      
Operating results:                      
Total sales                 1,453 1,633 1,581
Intersegment sales | Intersegment eliminations                      
Operating results:                      
Total sales                 (4,829) $ (5,028) $ (4,452)
Cummins Olayan Energy | Power Systems                      
Operating results:                      
Gain (Loss) on Sale of Equity Investments                 $ 17    
[1] Includes sales to nonconsolidated equity investees of $1,028 million, $1,209 million and $2,063 million for the years ended December 31, 2016, 2015 and 2014, respectively.
[2] Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs that are included in the Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs were $3 million, $3 million and $3 million for the years ended December 31, 2016, 2015 and 2014, respectively.
[3] See Note 12, "COMMITMENTS AND CONTINGENCIES," for additional information.
[4] Distribution segment EBIT included gains on the fair value adjustment resulting from the acquisition of controlling interests in North American distributors of $15 million, $18 million and $73 million for the years ended December 31, 2016, 2015 and 2014, respectively. See Note 18, "ACQUISITIONS," for additional information.
[5] See Note 19, "IMPAIRMENT OF LIGHT-DUTY DIESEL ASSETS," for additional information.
[6] See Note 20, "RESTRUCTURING ACTIONS AND OTHER CHARGES," for additional information.
[7] Power Systems segment EBIT included a $17 million gain on the sale of an equity investee.
[8] Power Systems segment EBIT included $32 million of restructuring charges primarily related to the closure of a plant in Germany.