Cummins (CMI) 10-Q 29 Apr 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 29, 2015
Document and Entity Information
Entity Registrant Name	CUMMINS INC
Entity Central Index Key	26172
Document Type	10-Q
Document Period End Date	29-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	181,311,804
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended
In Millions, except Per Share data, unless otherwise specified	Mar. 29, 2015		Mar. 30, 2014
Income Statement [Abstract]
NET SALES	$4,709	[1]	$4,406	[1]
Cost of sales	3,514		3,307
GROSS MARGIN	1,195		1,099
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	517		485
Research, development and engineering expenses	195		190
Equity, royalty and interest income from investees (Note 5)	68		90
Other operating income (expense), net	-3		-1
OPERATING INCOME	548		513
Interest income	5		5
Interest expense	14		17
Other income, net	9		10
INCOME BEFORE INCOME TAXES	548		511
Income tax expense (Note 6)	144		153
CONSOLIDATED NET INCOME	404		358
Less: Net income attributable to noncontrolling interests	17		20
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	387		338
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic (in dollars per share)	$2.14		$1.83
Diluted (in dollars per share)	$2.14		$1.83
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	180.6		184.3
Dilutive effect of stock compensation awards (in shares)	0.4		0.4
Diluted (in shares)	181		184.7
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$0.78		$0.63
Sales to nonconsolidated equity investees	$325		$592
[1]	Includes sales to nonconsolidated equity investees of $325 million and $592 million for the three month periods ended March 29, 2015 and March 30, 2014, respectively.

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Mar. 30, 2014
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$404	$358
Other comprehensive (loss) income, net of tax (Note 11)
Change in pension and other postretirement defined benefit plans	13	4
Foreign currency translation adjustments	-176	31
Unrealized gain (loss) on marketable securities	-1	-2
Unrealized gain (loss) on derivatives	0	2
Total other comprehensive income (loss), net of tax	-164	35
COMPREHENSIVE INCOME	240	393
Less: Comprehensive income attributable to noncontrolling interest	20	26
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$220	$367

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 29, 2015	Dec. 31, 2014
In Millions, unless otherwise specified
Current assets
Cash and cash equivalents	$1,997	$2,301
Marketable securities (Note 6)	115	93
Total cash, cash equivalents and marketable securities	2,112	2,394
Accounts and notes receivable, net	2,930	2,744
Due from Related Parties, Current	310	202
Inventories (Note 7)	2,936	2,866
Prepaid expenses and other current assets	712	849
Total current assets	9,000	9,055
Long-term assets
Property, plant and equipment	7,046	7,123
Accumulated depreciation	-3,409	-3,437
Property, plant and equipment, net	3,637	3,686
Investments and advances related to equity method investees	968	981
Goodwill	470	479
Other intangible assets, net	340	343
Prepaid pensions	714	637
Other assets	607	595
Total assets	15,736	15,776
Current liabilities
Loans payable	71	86
Accounts payable (principally trade)	2,013	1,881
Current maturities of long-term debt (Note 8)	33	23
Current portion of accrued product warranty (Note 9)	379	363
Accrued compensation, benefits and retirement costs	390	508
Deferred revenue	393	401
Other accrued expenses	778	759
Total current liabilities	4,057	4,021
Long-term liabilities
Long-term debt (Note 8)	1,602	1,589
Pensions	290	289
Postretirement benefits other than pensions	359	369
Other liabilities and deferred revenue	1,359	1,415
Total liabilities	7,667	7,683
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued	2,146	2,139
Retained earnings	9,792	9,545
Treasury stock, at cost, 41.0 and 40.1 shares	-2,975	-2,844
Common stock held by employee benefits trust, at cost, 1.0 and 1.1 shares	-12	-13
Accumulated other comprehensive loss (Note 11)
Total accumulated other comprehensive loss	-1,245	-1,078
Total Cummins Inc. shareholders' equity	7,706	7,749
Noncontrolling interests	363	344
Total equity	8,069	8,093
Total liabilities and equity	$15,736	$15,776

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 29, 2015	Dec. 31, 2014
In Millions, except Per Share data, unless otherwise specified
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$2.50	$2.50
Common stock, shares authorized	500	500
Common stock, shares issued	222.3	222.3
Treasury stock, shares	41	40.1
Common stock held by employee benefits trust, shares	1	1.1

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Mar. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$404	$358
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	128	105
Deferred income taxes	-1	22
Equity in income of investees, net of dividends	-53	-52
Pension contributions in excess of expense	-96	-100
Other post-retirement benefits payments in excess of expense	-8	-8
Stock-based compensation expense	5	10
Translation and hedging activities	7	-3
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	-276	-232
Inventories	-98	-135
Other current assets	20	2
Accounts payable	147	302
Accrued expenses	-35	-95
Changes in other liabilities and deferred revenue	59	50
Other, net	-30	39
Net cash provided by operating activities	173	263
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	-100	-107
Investments in internal use software	-8	-14
Investments in and advances to equity investees	10	-6
Acquisitions of businesses, net of cash acquired	-11	-90
Investments in marketable securitiesbacquisitions (Note 6)	-95	-84
Investments in marketable securitiesbliquidations (Note 6)	71	108
Cash flows from derivatives not designated as hedges	4	5
Other, net	4	1
Net cash used in investing activities	-125	-187
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	2	7
Payments on borrowings and capital lease obligations	-18	-25
Distributions to noncontrolling interests	-1	-13
Dividend payments on common stock	-140	-115
Repurchases of common stock	-137	-419
Other, net	-2	-37
Net cash used in financing activities	-296	-602
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	-56	5
Net decrease in cash and cash equivalents	-304	-521
Cash and cash equivalents at beginning of year	2,301	2,699
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$1,997	$2,178

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Common Stock Held in Trust	Accumulated Other Comprehensive Loss	Total Cummins Inc. Shareholders' Equity	Noncontrolling Interests
In Millions, unless otherwise specified
BALANCE at Dec. 31, 2013	$7,870	$556	$1,543	$8,406	($2,195)	($16)	($784)	$7,510	$360
Increase (Decrease) in Shareholders' Equity
Net income	358			338				338	20
Other comprehensive income (loss)	35						29	29	6
Issuance of shares	1		1					1
Employee benefits trust activity	10		9			1		10
Acquisition of shares	-419				-419			-419
Cash dividends on common stock	-115			-115				-115
Distributions to noncontrolling interests	-13								-13
Stock based awards	6		-8		14			6
Other shareholder transactions	1							0	1
BALANCE at Mar. 30, 2014	7,734	556	1,545	8,629	-2,600	-15	-755	7,360	374
BALANCE at Dec. 31, 2014	8,093	556	1,583	9,545	-2,844	-13	-1,078	7,749	344
Increase (Decrease) in Shareholders' Equity
Net income	404			387				387	17
Other comprehensive income (loss)	-164						-167	-167	3
Issuance of shares	1		1					1
Employee benefits trust activity	12		11			1		12
Acquisition of shares	-137				-137			-137
Cash dividends on common stock	-140			-140				-140
Distributions to noncontrolling interests	-1								-1
Stock based awards	1		-5		6			1
BALANCE at Mar. 29, 2015	$8,069	$556	$1,590	$9,792	($2,975)	($12)	($1,245)	$7,706	$363

NATURE_OF_OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Mar. 29, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1. NATURE OF OPERATIONS
	Cummins Inc. (“Cummins,” “we,” “our” or “us”) was founded in 1919 as a corporation in Columbus, Indiana and as one of the first diesel engine manufacturers. We are a global power leader that designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. We sell our products to original equipment manufacturers (OEMs), distributors and other customers worldwide. We serve our customers through a network of approximately 600 company-owned and independent distributor locations and approximately 7,200 dealer locations in more than 190 countries and territories.

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 29, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	NOTE 2. BASIS OF PRESENTATION
	The unaudited Condensed Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows. All such adjustments are of a normal recurring nature. The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations. Certain reclassifications have been made to prior period amounts to conform to the presentation of the current period condensed financial statements.
	Our reporting period usually ends on the Sunday closest to the last day of the quarterly calendar period. The first quarters of 2015 and 2014 ended on March 29 and March 30, respectively. Our fiscal year ends on December 31, regardless of the day of the week on which December 31 falls.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the Condensed Consolidated Financial Statements. Significant estimates and assumptions in these Condensed Consolidated Financial Statements require the exercise of judgment and are used for, but not limited to, allowance for doubtful accounts, estimates of future cash flows and other assumptions associated with goodwill and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, determination of discount and other rate assumptions for pension and other postretirement benefit expenses, income taxes and deferred tax valuation allowances, lease classifications and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.
	The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options since such options had an exercise price in excess of the monthly average market value of our common stock. The options excluded from diluted earnings per share for the three month periods ended March 29, 2015 and March 30, 2014, were as follows:
		Three months ended
		March 29,	March 30,
		2015	2014
	Options excluded	339,878	1,430
	These interim condensed financial statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. Our interim period financial results for the three month interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.

PENSION_AND_OTHER_POSTRETIREME

PENSION AND OTHER POSTRETIREMENT BENEFITS	3 Months Ended
	Mar. 29, 2015
Compensation and Retirement Disclosure [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	NOTE 3. PENSION AND OTHER POSTRETIREMENT BENEFITS
	The components of net periodic pension and other postretirement benefit costs under our plans were as follows:
		Pension
		U.S. Plans						U.K. Plans						Other Postretirement Benefits
		Three months ended
	In millions	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014			March 29, 2015		March 30, 2014
	Service cost	$	20		$	17		$	7		$	6		$	—	$	—
	Interest cost	25			26			14			16			4		4
	Expected return on plan assets	(47		)	(44		)	(23		)	(22		)	—		—
	Recognized net actuarial loss	11			8			9			7			1		—
	Net periodic benefit cost	$	9		$	7		$	7		$	7		$	5	$	4

EQUITY_ROYALTY_AND_INTEREST_IN

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	3 Months Ended
	Mar. 29, 2015
Equity Method Investments and Joint Ventures [Abstract]
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	NOTE 4. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
	Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the interim reporting periods was as follows:
		Three months ended
	In millions	March 29,			March 30,
		2015			2014
	Distribution Entities
	North American distributors	$	10		$	32
	Komatsu Cummins Chile, Ltda.	7			6
	All other distributors	1			1
	Manufacturing Entities
	Dongfeng Cummins Engine Company, Ltd.	14			14
	Chongqing Cummins Engine Company, Ltd.	12			11
	Beijing Foton Cummins Engine Co., Ltd. (Light-duty)	8			6
	Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty)	(1		)	(6		)
	All other manufacturers	7			15
	Cummins share of net income	58			79
	Royalty and interest income	10			11
	Equity, royalty and interest income from investees	$	68		$	90

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Mar. 29, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5. INCOME TAXES
	Our effective tax rate for the year is expected to approximate 29.5 percent, excluding any one-time items that may arise. The expected tax rate does not include the benefits of the research tax credit, which expired December 31, 2014 and has not yet been renewed by Congress. If the research credit is reinstated during 2015, we would anticipate the 2015 effective tax rate to be reduced to 28.5 percent. Our tax rate is generally less than the 35 percent U.S. statutory income tax rate primarily due to lower tax rates on foreign income.
	The effective tax rate for the three month period ended March 29, 2015, was 26.3 percent. This tax rate included an $18 million discrete tax benefit to reflect the release of reserves for uncertain tax positions related to a favorable federal audit settlement.
	Our effective tax rate for the three month period ended March 30, 2014, was 29.9 percent. This tax rate included a $12 million discrete tax expense attributable primarily to state deferred tax adjustments, as well as a $5 million discrete net tax benefit resulting from a $70 million dividend paid from China earnings generated prior to 2012.
	The decrease in the three month effective tax rate from 2014 to 2015 is primarily due to the 2015 favorable discrete tax item.

MARKETABLE_SECURITIES

MARKETABLE SECURITIES	3 Months Ended
	Mar. 29, 2015
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 6. MARKETABLE SECURITIES
	A summary of marketable securities, all of which are classified as current, was as follows:
		March 29, 2015						December 31, 2014
	In millions	Cost		Gross unrealized		Estimated		Cost		Gross unrealized		Estimated
				gains/(losses)		fair value				gains/(losses)		fair value
	Available-for-sale
	Level 2(1)
	Debt mutual funds	$	90	$	—	$	90	$	75	$	1	$	76
	Equity mutual funds	9		—		9		9		—		9
	Bank debentures	14		—		14		6		—		6
	Government debt securities	2		—		2		2		—		2
	Total marketable securities	$	115	$	—	$	115	$	92	$	1	$	93
	____________________________________
	(1) The fair value of Level 2 securities is estimated primarily using actively quoted prices for similar instruments from brokers and observable inputs, including market transactions and third-party pricing services. We do not currently have any Level 3 securities, and there were no transfers between Level 2 or 3 during the first three months of 2015 and 2014.
	The proceeds from sales and maturities of marketable securities and gross realized gains and losses from the sale of available-for-sale securities were as follows:
		Three months ended
	In millions	March 29,		March 30,
		2015		2014
	Proceeds from sales and maturities of marketable securities	$	71	$	108
	Gross realized gains from the sale of available-for-sale securities	1		1
	At March 29, 2015, the fair value of available-for-sale investments in debt securities that utilize a Level 2 fair value measure by contractual maturity was as follows:
	Maturity date	Fair value
		(in millions)
	1 year or less	$	91
	1 - 5 years	6
	5 - 10 years	9
	Total	$	106

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 29, 2015
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 7. INVENTORIES
	Inventories are stated at the lower of cost or market. Inventories included the following:
	In millions	March 29,			December 31,
		2015			2014
	Finished products	$	1,896		$	1,859
	Work-in-process and raw materials	1,161			1,129
	Inventories at FIFO cost	3,057			2,988
	Excess of FIFO over LIFO	(121		)	(122		)
	Total inventories	$	2,936		$	2,866

DEBT

DEBT	3 Months Ended
	Mar. 29, 2015
Debt Disclosure [Abstract]
DEBT	NOTE 8. DEBT
	A summary of long-term debt was as follows:
	In millions	March 29,			December 31,
		2015			2014
	Long-term debt
	Senior notes, 3.65%, due 2023	$	500		$	500
	Debentures, 6.75%, due 2027	58			58
	Debentures, 7.125%, due 2028	250			250
	Senior notes, 4.875%, due 2043	500			500
	Debentures, 5.65%, due 2098 (effective interest rate 7.48%)	165			165
	Credit facilities related to consolidated joint ventures	3			3
	Other debt	51			31
	Unamortized discount	(47		)	(47		)
	Fair value adjustments due to hedge on indebtedness	73			65
	Capital leases	82			87
	Total long-term debt	1,635			1,612
	Less: Current maturities of long-term debt	(33		)	(23		)
	Long-term debt	$	1,602		$	1,589
	Principal payments required on long-term debt during the next five years are as follows:
		Required Principal Payments
	In millions	2015			2016			2017		2018		2019
	Principal payments	$	25		$	39		$	15	$	16	$	11
	Fair Value of Debt
	Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair value and carrying value of total debt, including current maturities, was as follows:
	In millions	March 29,			December 31,
		2015			2014
	Fair value of total debt(1)	$	2,043		$	1,993
	Carrying value of total debt	1,706			1,698
	_________________________________________________
	(1) The fair value of debt is derived from Level 2 inputs.

PRODUCT_WARRANTY_LIABILITY

PRODUCT WARRANTY LIABILITY	3 Months Ended
	Mar. 29, 2015
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 9. PRODUCT WARRANTY LIABILITY
	A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued recall programs was as follows:
	In millions	March 29,			March 30,
		2015			2014
	Balance, beginning of year	$	1,283		$	1,129
	Provision for warranties issued	109			84
	Deferred revenue on extended warranty contracts sold	56			53
	Payments	(94		)	(102		)
	Amortization of deferred revenue on extended warranty contracts	(43		)	(34		)
	Changes in estimates for pre-existing warranties	15			2
	Foreign currency translation	(6		)	1
	Balance, end of period	$	1,320		$	1,133
	Warranty related deferred revenue, supplier recovery receivables and the long-term portion of the warranty liability on our March 29, 2015, balance sheet were as follows:
	In millions	March 29,			Balance Sheet Location
		2015
	Deferred revenue related to extended coverage programs
	Current portion	$	173		Deferred revenue
	Long-term portion	447			Other liabilities and deferred revenue
	Total	$	620
	Receivables related to estimated supplier recoveries
	Current portion	$	8		Trade and other receivables
	Long-term portion	4			Other assets
	Total	$	12
	Long-term portion of warranty liability	$	321		Other liabilities and deferred revenue

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 29, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10. COMMITMENTS AND CONTINGENCIES
	We are subject to numerous lawsuits and claims arising out of the ordinary course of our business, including actions related to product liability; personal injury; the use and performance of our products; warranty matters; patent, trademark or other intellectual property infringement; contractual liability; the conduct of our business; tax reporting in foreign jurisdictions; distributor termination; workplace safety; and environmental matters. We also have been identified as a potentially responsible party at multiple waste disposal sites under U.S. federal and related state environmental statutes and regulations and may have joint and several liability for any investigation and remediation costs incurred with respect to such sites. We have denied liability with respect to many of these lawsuits, claims and proceedings and are vigorously defending such lawsuits, claims and proceedings. We carry various forms of commercial, property and casualty, product liability and other forms of insurance; however, such insurance may not be applicable or adequate to cover the costs associated with a judgment against us with respect to these lawsuits, claims and proceedings. We do not believe that these lawsuits are material individually or in the aggregate. While we believe we have also established adequate accruals for our expected future liability with respect to pending lawsuits, claims and proceedings, where the nature and extent of any such liability can be reasonably estimated based upon then presently available information, there can be no assurance that the final resolution of any existing or future lawsuits, claims or proceedings will not have a material adverse effect on our business, results of operations, financial condition or cash flows.
	We conduct significant business operations in Brazil that are subject to the Brazilian federal, state and local labor, social security, tax and customs laws. While we believe we comply with such laws, they are complex, subject to varying interpretations and we are often engaged in litigation regarding the application of these laws to particular circumstances.
	U.S. Distributor Commitments
	Our distribution agreements with independent and partially-owned distributors generally have a renewable three-year term and are restricted to specified territories. Our distributors develop and maintain a network of dealers with which we have no direct relationship. Our distributors are permitted to sell other, noncompetitive products only with our consent. We license all of our distributors to use our name and logo in connection with the sale and service of our products, with no right to assign or sublicense the trademarks, except to authorized dealers, without our consent. Products are sold to the distributors at standard domestic or international distributor net prices, as applicable. Net prices are wholesale prices we establish to permit our distributors an adequate margin on their sales. Subject to local laws, we can generally refuse to renew these agreements upon expiration or terminate them upon written notice for inadequate sales, change in principal ownership and certain other reasons. Distributors also have the right to terminate the agreements upon 60-day notice without cause, or 30-day notice for cause. Upon termination or failure to renew, we are required to purchase the distributor’s current inventory, signage and special tools and may, at our option purchase other assets of the distributor, but are under no obligation to do so.
	Other Guarantees and Commitments
	In addition to the matters discussed above, from time to time we enter into other guarantee arrangements, including guarantees of non-U.S. distributor financings, residual value guarantees on equipment under operating leases and other miscellaneous guarantees of third-party obligations. As of March 29, 2015, the maximum potential loss related to these other guarantees was $5 million.
	We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. The penalty amounts are less than our purchase commitments and essentially allow the supplier to recover their tooling costs in most instances. As of March 29, 2015, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $70 million, of which $36 million relates to a contract with an engine parts supplier that extends to 2016. These arrangements enable us to secure critical components. We do not currently anticipate paying any penalties under these contracts.
	During 2014, we began entering into physical forward contracts with suppliers of platinum and palladium to purchase minimum volumes of the commodities at contractually stated prices for various periods, not to exceed two years. As of March 29, 2015, the total commitments under these contracts were $55 million. These arrangements enable us to fix the prices of these commodities, which otherwise are subject to market volatility.
	We have guarantees with certain customers that require us to satisfactorily honor contractual or regulatory obligations, or compensate for monetary losses related to nonperformance. These performance bonds and other performance-related guarantees were $73 million at March 29, 2015 and $76 million at December 31, 2014.
	Indemnifications
	Periodically, we enter into various contractual arrangements where we agree to indemnify a third-party against certain types of losses. Common types of indemnities include:
	•	product liability and license, patent or trademark indemnifications;
	•	asset sale agreements where we agree to indemnify the purchaser against future environmental exposures related to the asset sold; and
	•	any contractual agreement where we agree to indemnify the counter-party for losses suffered as a result of a misrepresentation in the contract.
	We regularly evaluate the probability of having to incur costs associated with these indemnities and accrue for expected losses that are probable. Because the indemnifications are not related to specified known liabilities and due to their uncertain nature, we are unable to estimate the maximum amount of the potential loss associated with these indemnifications.

OTHER_COMPREHENSIVE_INCOME_LOS

OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 29, 2015
Equity [Abstract]
OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
	Following are the changes in accumulated other comprehensive income (loss) by component:
	In millions	Change in			Foreign			Unrealized gain			Unrealized gain			Total			Noncontrolling			Total
		pensions and			currency			(loss) on			(loss) on			attributable to			interests
		other			translation			marketable			derivatives			Cummins Inc.
		postretirement			adjustment			securities
		defined benefit
		plans
	Balance at December 31, 2013	$	(611	)	$	(179	)	$	7		$	(1	)	$	(784	)
	Other comprehensive income before reclassifications
	Before tax amount	(7		)	24			(1		)	3			19			$	7		$	26
	Tax (expense) benefit	1			—			—			(1		)	—			—			—
	After tax amount	(6		)	24			(1		)	2			19			7			26
	Amounts reclassified from accumulated other comprehensive income(1)(2)	10			—			—			—			10			(1		)	9
	Net current period other comprehensive income (loss)	4			24			(1		)	2			29			$	6		$	35
	Balance at March 30, 2014	$	(607	)	$	(155	)	$	6		$	1		$	(755	)
	Balance at December 31, 2014	$	(669	)	$	(406	)	$	(1	)	$	(2	)	$	(1,078	)
	Other comprehensive income before reclassifications
	Before tax amount	(3		)	(204		)	1			1			(205		)	$	4		$	(201	)
	Tax (expense) benefit	1			23			—			—			24			—			24
	After tax amount	(2		)	(181		)	1			1			(181		)	4			(177		)
	Amounts reclassified from accumulated other comprehensive income(1)(2)	15			—			(1		)	—			14			(1		)	13
	Net current period other comprehensive income (loss)	13			(181		)	—			1			(167		)	$	3		$	(164	)
	Balance at March 29, 2015	$	(656	)	$	(587	)	$	(1	)	$	(1	)	$	(1,245	)
	____________________________________
	(1) Amounts are net of tax.
	(2) See reclassifications out of accumulated other comprehensive income (loss) disclosure below for further details.
	Following are the items reclassified out of accumulated other comprehensive income (loss) and the related tax effects:
	In millions	Three months ended
	(Gain)/Loss Components	March 29,			March 30,			Statement of Income Location
		2015			2014
	Change in pension and other postretirement defined benefit plans
	Recognized actuarial loss	$	22		$	15		(1)
	Total before taxes	22			15
	Tax effect	(7		)	(5		)	Income tax expense
	Net change in pensions and other postretirement defined benefit plans	$	15		$	10
	Realized (gain) loss on marketable securities	$	(1	)	$	(1	)	Other income (expense), net
	Tax effect	(1		)	—			Income tax expense
	Net realized (gain) loss on marketable securities	$	(2	)	$	(1	)
	Realized (gain) loss on derivatives
	Foreign currency forward contracts	$	—		$	(2	)	Net sales
	Commodity swap contracts	—			2			Cost of sales
	Total before taxes	—			—
	Tax effect	—			—			Income tax expense
	Net realized (gain) loss on derivatives	$	—		$	—
	Total reclassifications for the period	$	13		$	9
	____________________________________
	(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'').

OPERATING_SEGMENTS

OPERATING SEGMENTS	3 Months Ended
	Mar. 29, 2015
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 12. OPERATING SEGMENTS
	Operating segments under GAAP are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Cummins' chief operating decision-maker (CODM) is the Chief Executive Officer.
	Our reportable operating segments consist of the following: Engine, Distribution, Components and Power Generation. This reporting structure is organized according to the products and markets each segment serves. The Engine segment produces engines and parts for sale to customers in on-highway and various industrial markets. Our engines are used in trucks of all sizes, buses and recreational vehicles, as well as in various industrial applications, including construction, mining, agriculture, marine, oil and gas, rail and military equipment. The Distribution segment includes wholly-owned and partially-owned distributorships engaged in wholesaling engines, generator sets and service parts, as well as performing service and repair activities on our products and maintaining relationships with various OEMs throughout the world. The Components segment sells filtration products, aftertreatment systems, turbochargers and fuel systems. The Power Generation segment is an integrated provider of power systems, which sells engines, generator sets and alternators.
	We use segment EBIT (defined as earnings before interest expense, taxes and noncontrolling interests) as a primary basis for the CODM to evaluate the performance of each of our operating segments. Segment amounts exclude certain expenses not specifically identifiable to segments.
	The accounting policies of our operating segments are the same as those applied in our Condensed Consolidated Financial Statements. We prepared the financial results of our operating segments on a basis that is consistent with the manner in which we internally disaggregate financial information to assist in making internal operating decisions. We have allocated certain common costs and expenses, primarily corporate functions, among segments differently than we would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as information technology, human resources, legal and finance. We also do not allocate debt-related items, actuarial gains or losses, prior service costs or credits, changes in cash surrender value of corporate owned life insurance or income taxes to individual segments. Segment EBIT may not be consistent with measures used by other companies.
	Summarized financial information regarding our reportable operating segments for the three month periods is shown in the table below:
	In millions	Engine		Distribution			Components		Power Generation		Non-segment			Total
											Items (1)
	Three months ended March 29, 2015
	External sales	$	1,889	$	1,469		$	931	$	420	$	—		$	4,709
	Intersegment sales	707		7			368		260		(1,342		)	—
	Total sales	2,596		1,476			1,299		680		(1,342		)	4,709
	Depreciation and amortization(2)	58		27			26		16		—			127
	Research, development and engineering expenses	114		3			61		17		—			195
	Equity, royalty and interest income from investees	30		20			9		9		—			68
	Interest income	2		1			1		1		—			5
	Segment EBIT	253		88			195		49		(23		)	562
	Three months ended March 30, 2014
	External sales	$	2,090	$	942		$	922	$	452	$	—		$	4,406
	Intersegment sales	473		8			308		187		(976		)	—
	Total sales	2,563		950			1,230		639		(976		)	4,406
	Depreciation and amortization(2)	51		16			26		12		—			105
	Research, development and engineering expenses	116		2			53		19		—			190
	Equity, royalty and interest income from investees	32		41			9		8		—			90
	Interest income	2		1			1		1		—			5
	Segment EBIT	269		76		(3)	167		25		(9		)	528
	____________________________________
	(1) Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 29, 2015 and March 30, 2014.
	(2) Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs were $1 million and less than $1 million for the three months ended March 29, 2015 and March 30, 2014, respectively.
	(3) Distribution segment EBIT included a gain of $6 million on the fair value adjustment resulting from the acquisition of a controlling interest in a North American distributor for the three months ended March 30, 2014.
	A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:
		Three months ended
	In millions	March 29,		March 30,
		2015		2014
	Total EBIT	$	562	$	528
	Less: Interest expense	14		17
	Income before income taxes	$	548	$	511

RECENTLY_ADOPTED_ACCOUNTING_PR

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 29, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	NOTE 13. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
	In February 2015, the Financial Accounting Standards Board (FASB) amended its standards related to the consolidation of certain legal entities. The amendment will change the method of analysis that we must perform to determine whether certain types of legal entities should be consolidated, primarily limited partnerships and similar structures. The amendment will eliminate three of the original six conditions for evaluating whether a fee paid to a decision-maker or a service provider represents a variable interest in a variable interest entity (VIE). The new rules will become effective for annual and interim periods beginning December 15, 2015. Early adoption is permitted. We do not believe that this amendment will have a significant effect on our Consolidated Financial Statements.
	In May 2014, the FASB amended its standards related to revenue recognition. This amendment replaces all existing revenue recognition guidance and provides a single, comprehensive revenue recognition model for all contracts with customers. The standard contains principles that we will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that we will recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that we expect to be entitled to in exchange for those goods or services. The standard allows either full or modified retrospective adoption. Early adoption is not permitted. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendment also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The new rules will become effective for annual and interim periods beginning January 1, 2017. In April 2015, the FASB proposed a one year delay of the effective date of the standard to provide adequate time for implementation. It is important to note that the FASB's proposed deferral is not a final decision. We are in the process of evaluating the impact the amendment will have on our Consolidated Financial Statements, and we are further considering the impact of each method of adoption.

BASIS_OF_PRESENTATION_Tables

BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 29, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share for the three month periods ended March 29, 2015 and March 30, 2014, were as follows:
		Three months ended
		March 29,	March 30,
		2015	2014
	Options excluded	339,878	1,430

PENSION_AND_OTHER_POSTRETIREME1

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	3 Months Ended
	Mar. 29, 2015
Compensation and Retirement Disclosure [Abstract]
Components of net periodic pension and other postretirement benefit cost	The components of net periodic pension and other postretirement benefit costs under our plans were as follows:
		Pension
		U.S. Plans						U.K. Plans						Other Postretirement Benefits
		Three months ended
	In millions	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014			March 29, 2015		March 30, 2014
	Service cost	$	20		$	17		$	7		$	6		$	—	$	—
	Interest cost	25			26			14			16			4		4
	Expected return on plan assets	(47		)	(44		)	(23		)	(22		)	—		—
	Recognized net actuarial loss	11			8			9			7			1		—
	Net periodic benefit cost	$	9		$	7		$	7		$	7		$	5	$	4

EQUITY_ROYALTY_AND_INTEREST_IN1

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Tables)	3 Months Ended
	Mar. 29, 2015
Equity Method Investments and Joint Ventures [Abstract]
Equity, royalty and interest income from investees	Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the interim reporting periods was as follows:
		Three months ended
	In millions	March 29,			March 30,
		2015			2014
	Distribution Entities
	North American distributors	$	10		$	32
	Komatsu Cummins Chile, Ltda.	7			6
	All other distributors	1			1
	Manufacturing Entities
	Dongfeng Cummins Engine Company, Ltd.	14			14
	Chongqing Cummins Engine Company, Ltd.	12			11
	Beijing Foton Cummins Engine Co., Ltd. (Light-duty)	8			6
	Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty)	(1		)	(6		)
	All other manufacturers	7			15
	Cummins share of net income	58			79
	Royalty and interest income	10			11
	Equity, royalty and interest income from investees	$	68		$	90

MARKETABLE_SECURITIES_Tables

MARKETABLE SECURITIES (Tables)	3 Months Ended
	Mar. 29, 2015
Investments, Debt and Equity Securities [Abstract]
Summary of marketable securities	A summary of marketable securities, all of which are classified as current, was as follows:
		March 29, 2015						December 31, 2014
	In millions	Cost		Gross unrealized		Estimated		Cost		Gross unrealized		Estimated
				gains/(losses)		fair value				gains/(losses)		fair value
	Available-for-sale
	Level 2(1)
	Debt mutual funds	$	90	$	—	$	90	$	75	$	1	$	76
	Equity mutual funds	9		—		9		9		—		9
	Bank debentures	14		—		14		6		—		6
	Government debt securities	2		—		2		2		—		2
	Total marketable securities	$	115	$	—	$	115	$	92	$	1	$	93
	____________________________________
	(1) The fair value of Level 2 securities is estimated primarily using actively quoted prices for similar instruments from brokers and observable inputs, including market transactions and third-party pricing services. We do not currently have any Level 3 securities, and there were no transfers between Level 2 or 3 during the first three months of 2015 and 2014.
Schedule of proceeds from sales and maturities and gross realized gains and losses	The proceeds from sales and maturities of marketable securities and gross realized gains and losses from the sale of available-for-sale securities were as follows:
		Three months ended
	In millions	March 29,		March 30,
		2015		2014
	Proceeds from sales and maturities of marketable securities	$	71	$	108
	Gross realized gains from the sale of available-for-sale securities	1		1
Summary of fair value of available-for-sale investments with contractual maturities	At March 29, 2015, the fair value of available-for-sale investments in debt securities that utilize a Level 2 fair value measure by contractual maturity was as follows:
	Maturity date	Fair value
		(in millions)
	1 year or less	$	91
	1 - 5 years	6
	5 - 10 years	9
	Total	$	106

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Mar. 29, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories are stated at the lower of cost or market. Inventories included the following:
	In millions	March 29,			December 31,
		2015			2014
	Finished products	$	1,896		$	1,859
	Work-in-process and raw materials	1,161			1,129
	Inventories at FIFO cost	3,057			2,988
	Excess of FIFO over LIFO	(121		)	(122		)
	Total inventories	$	2,936		$	2,866

DEBT_Tables

DEBT (Tables)	3 Months Ended
	Mar. 29, 2015
Debt Disclosure [Abstract]
Summary of long-term debt	A summary of long-term debt was as follows:
	In millions	March 29,			December 31,
		2015			2014
	Long-term debt
	Senior notes, 3.65%, due 2023	$	500		$	500
	Debentures, 6.75%, due 2027	58			58
	Debentures, 7.125%, due 2028	250			250
	Senior notes, 4.875%, due 2043	500			500
	Debentures, 5.65%, due 2098 (effective interest rate 7.48%)	165			165
	Credit facilities related to consolidated joint ventures	3			3
	Other debt	51			31
	Unamortized discount	(47		)	(47		)
	Fair value adjustments due to hedge on indebtedness	73			65
	Capital leases	82			87
	Total long-term debt	1,635			1,612
	Less: Current maturities of long-term debt	(33		)	(23		)
	Long-term debt	$	1,602		$	1,589
Principal repayments on long-term debt	Principal payments required on long-term debt during the next five years are as follows:
		Required Principal Payments
	In millions	2015			2016			2017		2018		2019
	Principal payments	$	25		$	39		$	15	$	16	$	11
Fair value and carrying value of total debt	Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair value and carrying value of total debt, including current maturities, was as follows:
	In millions	March 29,			December 31,
		2015			2014
	Fair value of total debt(1)	$	2,043		$	1,993
	Carrying value of total debt	1,706			1,698
	_________________________________________________
	(1) The fair value of debt is derived from Level 2 inputs.

PRODUCT_WARRANTY_LIABILITY_Tab

PRODUCT WARRANTY LIABILITY (Tables)	3 Months Ended
	Mar. 29, 2015
Product Warranties Disclosures [Abstract]
Summary of activity in the product warranty account	A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued recall programs was as follows:
	In millions	March 29,			March 30,
		2015			2014
	Balance, beginning of year	$	1,283		$	1,129
	Provision for warranties issued	109			84
	Deferred revenue on extended warranty contracts sold	56			53
	Payments	(94		)	(102		)
	Amortization of deferred revenue on extended warranty contracts	(43		)	(34		)
	Changes in estimates for pre-existing warranties	15			2
	Foreign currency translation	(6		)	1
	Balance, end of period	$	1,320		$	1,133
Warranty related deferred revenue, supplier recovery receivables and the long-term portion of the warranty liability	Warranty related deferred revenue, supplier recovery receivables and the long-term portion of the warranty liability on our March 29, 2015, balance sheet were as follows:
	In millions	March 29,			Balance Sheet Location
		2015
	Deferred revenue related to extended coverage programs
	Current portion	$	173		Deferred revenue
	Long-term portion	447			Other liabilities and deferred revenue
	Total	$	620
	Receivables related to estimated supplier recoveries
	Current portion	$	8		Trade and other receivables
	Long-term portion	4			Other assets
	Total	$	12
	Long-term portion of warranty liability	$	321		Other liabilities and deferred revenue

OTHER_COMPREHENSIVE_INCOME_LOS1

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 29, 2015
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			Foreign			Unrealized gain			Unrealized gain			Total			Noncontrolling			Total
		pensions and			currency			(loss) on			(loss) on			attributable to			interests
		other			translation			marketable			derivatives			Cummins Inc.
		postretirement			adjustment			securities
		defined benefit
		plans
	Balance at December 31, 2013	$	(611	)	$	(179	)	$	7		$	(1	)	$	(784	)
	Other comprehensive income before reclassifications
	Before tax amount	(7		)	24			(1		)	3			19			$	7		$	26
	Tax (expense) benefit	1			—			—			(1		)	—			—			—
	After tax amount	(6		)	24			(1		)	2			19			7			26
	Amounts reclassified from accumulated other comprehensive income(1)(2)	10			—			—			—			10			(1		)	9
	Net current period other comprehensive income (loss)	4			24			(1		)	2			29			$	6		$	35
	Balance at March 30, 2014	$	(607	)	$	(155	)	$	6		$	1		$	(755	)
	Balance at December 31, 2014	$	(669	)	$	(406	)	$	(1	)	$	(2	)	$	(1,078	)
	Other comprehensive income before reclassifications
	Before tax amount	(3		)	(204		)	1			1			(205		)	$	4		$	(201	)
	Tax (expense) benefit	1			23			—			—			24			—			24
	After tax amount	(2		)	(181		)	1			1			(181		)	4			(177		)
	Amounts reclassified from accumulated other comprehensive income(1)(2)	15			—			(1		)	—			14			(1		)	13
	Net current period other comprehensive income (loss)	13			(181		)	—			1			(167		)	$	3		$	(164	)
	Balance at March 29, 2015	$	(656	)	$	(587	)	$	(1	)	$	(1	)	$	(1,245	)
	____________________________________
	(1) Amounts are net of tax.
	(2) See reclassifications out of accumulated other comprehensive income (loss) 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 income (loss) and the related tax effects:
	In millions	Three months ended
	(Gain)/Loss Components	March 29,			March 30,			Statement of Income Location
		2015			2014
	Change in pension and other postretirement defined benefit plans
	Recognized actuarial loss	$	22		$	15		(1)
	Total before taxes	22			15
	Tax effect	(7		)	(5		)	Income tax expense
	Net change in pensions and other postretirement defined benefit plans	$	15		$	10
	Realized (gain) loss on marketable securities	$	(1	)	$	(1	)	Other income (expense), net
	Tax effect	(1		)	—			Income tax expense
	Net realized (gain) loss on marketable securities	$	(2	)	$	(1	)
	Realized (gain) loss on derivatives
	Foreign currency forward contracts	$	—		$	(2	)	Net sales
	Commodity swap contracts	—			2			Cost of sales
	Total before taxes	—			—
	Tax effect	—			—			Income tax expense
	Net realized (gain) loss on derivatives	$	—		$	—
	Total reclassifications for the period	$	13		$	9
	____________________________________
	(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'').

OPERATING_SEGMENTS_Tables

OPERATING SEGMENTS (Tables)	3 Months Ended
	Mar. 29, 2015
Segment Reporting [Abstract]
Financial information regarding reportable operating segments	Summarized financial information regarding our reportable operating segments for the three month periods is shown in the table below:
	In millions	Engine		Distribution			Components		Power Generation		Non-segment			Total
											Items (1)
	Three months ended March 29, 2015
	External sales	$	1,889	$	1,469		$	931	$	420	$	—		$	4,709
	Intersegment sales	707		7			368		260		(1,342		)	—
	Total sales	2,596		1,476			1,299		680		(1,342		)	4,709
	Depreciation and amortization(2)	58		27			26		16		—			127
	Research, development and engineering expenses	114		3			61		17		—			195
	Equity, royalty and interest income from investees	30		20			9		9		—			68
	Interest income	2		1			1		1		—			5
	Segment EBIT	253		88			195		49		(23		)	562
	Three months ended March 30, 2014
	External sales	$	2,090	$	942		$	922	$	452	$	—		$	4,406
	Intersegment sales	473		8			308		187		(976		)	—
	Total sales	2,563		950			1,230		639		(976		)	4,406
	Depreciation and amortization(2)	51		16			26		12		—			105
	Research, development and engineering expenses	116		2			53		19		—			190
	Equity, royalty and interest income from investees	32		41			9		8		—			90
	Interest income	2		1			1		1		—			5
	Segment EBIT	269		76		(3)	167		25		(9		)	528
	____________________________________
	(1) Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 29, 2015 and March 30, 2014.
	(2) Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs were $1 million and less than $1 million for the three months ended March 29, 2015 and March 30, 2014, respectively.
	(3) Distribution segment EBIT included a gain of $6 million on the fair value adjustment resulting from the acquisition of a controlling interest in a North American distributor for the three months ended March 30, 2014.
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:
		Three months ended
	In millions	March 29,		March 30,
		2015		2014
	Total EBIT	$	562	$	528
	Less: Interest expense	14		17
	Income before income taxes	$	548	$	511

NATURE_OF_OPERATIONS_Details

NATURE OF OPERATIONS (Details)	Dec. 31, 2014
	country
	location
Nature of Operations
Company owned and independent distributor locations	600
Dealer locations	7,200
Countries and territories located in	190

BASIS_OF_PRESENTATION_Details

BASIS OF PRESENTATION (Details)	3 Months Ended
	Mar. 29, 2015	Mar. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Options excluded (in shares)	339,878	1,430

PENSION_AND_OTHER_POSTRETIREME2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Mar. 30, 2014
Pension - U.S. Plans
Components of Net Periodic Benefit Cost
Service cost	$20	$17
Interest cost	25	26
Expected return on plan assets	-47	-44
Recognized net actuarial loss	11	8
Net periodic benefit cost	9	7
Pension - U.K. Plans
Components of Net Periodic Benefit Cost
Service cost	7	6
Interest cost	14	16
Expected return on plan assets	-23	-22
Recognized net actuarial loss	9	7
Net periodic benefit cost	7	7
Other Postretirement Benefits
Components of Net Periodic Benefit Cost
Interest cost	4	4
Recognized net actuarial loss	1
Net periodic benefit cost	$5	$4

EQUITY_ROYALTY_AND_INTEREST_IN2

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Mar. 30, 2014
Equity, royalty and interest income from investees
Cummins share of net income	$58	$79
Royalty and interest income	10	11
Equity, royalty and interest income from investees	68	90
Distribution - North American distributors
Equity, royalty and interest income from investees
Cummins share of net income	10	32
Distribution - Komatsu Cummins Chile, Ltda.
Equity, royalty and interest income from investees
Cummins share of net income	7	6
Distribution - All other distributors
Equity, royalty and interest income from investees
Cummins share of net income	1	1
Manufacturing - Dongfeng Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Cummins share of net income	14	14
Manufacturing - Chongqing Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Cummins share of net income	12	11
Manufacturing - Beijing Foton Cummins Engine Company (Light-Duty)
Equity, royalty and interest income from investees
Cummins share of net income	8	6
Manufacturing - Beijing Foton Cummins Engine Company (Heavy-Duty)
Equity, royalty and interest income from investees
Cummins share of net income	-1	-6
Manufacturing - All other manufacturers
Equity, royalty and interest income from investees
Cummins share of net income	$7	$15

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended		0 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Mar. 30, 2014	Mar. 30, 2015
Income tax disclosures
Effective tax rate (as a percent)	26.30%	29.90%
Tax Adjustments, Settlements, and Unusual Provisions	$18	$12
U.S. statutory rate, (as a percent)	35.00%
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount		5
Cash dividends paid from China earnings		$70
Estimate
Income tax disclosures
Effective tax rate (as a percent)			29.50%
Alternate Estimate
Income tax disclosures
Effective tax rate (as a percent)			28.50%

MARKETABLE_SECURITIES_Details

MARKETABLE SECURITIES (Details) (USD $)	Mar. 29, 2015		Dec. 31, 2014
In Millions, unless otherwise specified
Schedule of Available-for-sale Securities
Cost	$115		$92
Gross unrealized gains/(losses)	0		1
Estimated fair value	115		93
Significant other observable inputs (Level 2) | Debt mutual funds
Schedule of Available-for-sale Securities
Cost	90	[1]	75	[1]
Gross unrealized gains/(losses)			1	[1]
Estimated fair value	90	[1]	76	[1]
Significant other observable inputs (Level 2) | Equity Funds
Schedule of Available-for-sale Securities
Cost	9	[1]	9	[1]
Estimated fair value	9	[1]	9	[1]
Significant other observable inputs (Level 2) | Bank debentures
Schedule of Available-for-sale Securities
Cost	14	[1]	6	[1]
Estimated fair value	14	[1]	6	[1]
Significant other observable inputs (Level 2) | Government debt securities-non-U.S.
Schedule of Available-for-sale Securities
Cost	2	[1]	2	[1]
Estimated fair value	$2	[1]	$2	[1]
[1]	The fair value of Level 2 securities is estimated primarily using actively quoted prices for similar instruments from brokers and observable inputs, including market transactions and third-party pricing services. We do not currently have any Level 3 securities, and there were no transfers between Level 2 or 3 during the first three months of 2015 and 2014.

MARKETABLE_SECURITIES_Details_

MARKETABLE SECURITIES (Details 2) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Mar. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Proceeds from Sale and Maturity of Marketable Securities	$71	$108
Gross realized gains from the sale of available-for-sale securities	$1	$1

MARKETABLE_SECURITIES_Details_1

MARKETABLE SECURITIES (Details 3) (USD $)	Mar. 29, 2015
In Millions, unless otherwise specified
Fair value of available-for-sale investments by contractual maturity
1 year or less	$91
1-5 years	6
5-10 years	9
Total	$106

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Mar. 29, 2015	Dec. 31, 2014
In Millions, unless otherwise specified
Inventory Disclosure [Abstract]
Finished products	$1,896	$1,859
Work-in-process and raw materials	1,161	1,129
Inventories at FIFO cost	3,057	2,988
Excess of FIFO over LIFO	-121	-122
Total inventories	$2,936	$2,866

DEBT_Details

DEBT (Details) (USD $)	Mar. 29, 2015		Dec. 31, 2014
In Millions, unless otherwise specified
Long-term debt
Unamortized discount	($47)		($47)
Fair value adjustment due to hedge on indebtedness	73		65
Capital leases	82		87
Total long-term debt	1,635		1,612
Less: Current maturities of long-term debt	-33		-23
Long-term debt	1,602		1,589
Principal payments required on long-term debt
2015	25
2016	39
2017	15
2018	16
2019	11
Fair value
Fair value of total debt	2,043	[1]	1,993	[1]
Carrying value of total debt	1,706		1,698
Senior notes, 3.65%, due 2023
Long-term debt
Long-term debt facilities	500		500
Debt instrument interest rate (as a percent)	3.65%
Debentures, 6.75%, due 2027
Long-term debt
Long-term debt facilities	58		58
Debt instrument interest rate (as a percent)	6.75%
Debentures, 7.125%, due 2028
Long-term debt
Long-term debt facilities	250		250
Debt instrument interest rate (as a percent)	7.13%
Senior notes, 4.875%, due 2043
Long-term debt
Long-term debt facilities	500		500
Debt instrument interest rate (as a percent)	4.88%
Debentures, 5.65%, due 2098 (effective interest rate 7.48%)
Long-term debt
Long-term debt facilities	165		165
Debt instrument interest rate (as a percent)	5.65%
Effective interest rate (as a percent)	7.48%
Credit facilities related to consolidated joint ventures
Long-term debt
Long-term debt facilities	3		3
Other long-term debt
Long-term debt
Long-term debt facilities	$51		$31
[1]	The fair value of debt is derived from Level 2 inputs.

PRODUCT_WARRANTY_LIABILITY_Det

PRODUCT WARRANTY LIABILITY (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Mar. 30, 2014	Dec. 31, 2014
Product Warranty Liability:
Balance, beginning of year	$1,283	$1,129
Provision for warranties issued	109	84
Deferred revenue on extended warranty contracts sold	56	53
Payments	-94	-102
Amortization of deferred revenue on extended warranty contracts	-43	-34
Changes in estimates for pre-existing warranties	15	2
Foreign currency translation	-6	1
Balance, end of period	1,320	1,133
Product Warranty Liability
Deferred Revenue, Current	393		401
Total deferred revenue related to extended coverage programs	620
Total receivables related to estimated supplier recoveries	12
Deferred revenue
Product Warranty Liability
Deferred Revenue, Current	173
Other liabilities and deferred revenue
Product Warranty Liability
Deferred revenue related to extended coverage programs, Noncurrent portion	447
Long-term portion of warranty liability	321
Trade and other receivables
Product Warranty Liability
Receivables related to estimated supplier recoveries, Current portion	8
Other assets
Product Warranty Liability
Receivables related to estimated supplier recoveries, Long-term portion	$4

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015	Dec. 31, 2014
Maximum
Guarantee Obligations
Forward contract, term	2 years
Other Guarantees and Commitments
Guarantee Obligations
Guarantor obligations, maximum potential loss	5
Long-term purchase commitment, penalty exposure	70
Total commitments under commodity contracts	55
Engine parts supplier
Guarantee Obligations
Long-term purchase commitment, penalty exposure	36
Performance bonds and other performance-related guarantees
Guarantee Obligations
Guarantee obligations, current carrying value	73	$76
US Distributor Commitments
Other Commitments
Licensing agreement term	3 years
Number of days in which distributors can terminate agreements without cause	60 days
Number of days in which distributors can terminate agreements with cause	30 days

OTHER_COMPREHENSIVE_INCOME_LOS2

OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015		Mar. 30, 2014
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of the period	($1,078)
Before tax amount	-201		26
Tax (expense) benefit	24
After tax amount	-177		26
Amounts reclassified from accumulated other comprehensive income	13	[1],[2]	9	[1],[2]
Total other comprehensive income (loss), net of tax	-164		35
Balance at the end of the period	-1,245
Change in pensions and other postretirement defined benefit plans
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of the period	-669		-611
Before tax amount	-3		-7
Tax (expense) benefit	1		1
After tax amount	-2		-6
Amounts reclassified from accumulated other comprehensive income	15	[1],[2]	10	[1],[2]
Total other comprehensive income (loss), net of tax	13		4
Balance at the end of the period	-656		-607
Foreign currency translation adjustment
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of the period	-406		-179
Before tax amount	-204		24
Tax (expense) benefit	23
After tax amount	-181		24
Amounts reclassified from accumulated other comprehensive income			0	[1],[2]
Total other comprehensive income (loss), net of tax	-181		24
Balance at the end of the period	-587		-155
Unrealized gain (loss) on marketable securities
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of the period	-1		7
Before tax amount	1		-1
After tax amount	1		-1
Amounts reclassified from accumulated other comprehensive income	-1	[1],[2]	0	[1],[2]
Total other comprehensive income (loss), net of tax			-1
Balance at the end of the period	-1		6
Unrealized gain (loss) on derivatives
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of the period	-2		-1
Before tax amount	1		3
Tax (expense) benefit			-1
After tax amount	1		2
Amounts reclassified from accumulated other comprehensive income			0	[1],[2]
Total other comprehensive income (loss), net of tax	1		2
Balance at the end of the period	-1		1
Total attributable to Cummins Inc.
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of the period	-1,078		-784
Before tax amount	-205		19
Tax (expense) benefit	24
After tax amount	-181		19
Amounts reclassified from accumulated other comprehensive income	14	[1],[2]	10	[1],[2]
Total other comprehensive income (loss), net of tax	-167		29
Balance at the end of the period	-1,245		-755
Noncontrolling interests
Changes in accumulated other comprehensive income (loss) by component:
Before tax amount	4		7
After tax amount	4		7
Amounts reclassified from accumulated other comprehensive income	-1	[1],[2]	-1	[1],[2]
Total other comprehensive income (loss), net of tax	$3		$6
[1]	See reclassifications out of accumulated other comprehensive income (loss) disclosure below for further details.
[2]	Amounts are net of tax.

OTHER_COMPREHENSIVE_INCOME_LOS3

OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015		Mar. 30, 2014
Reclassified out of accumulated other comprehensive income (loss) and related tax effects
Other income (expense), net	($9)		($10)
NET SALES	-4,709	[1]	-4,406	[1]
Cost of sales	-3,514		-3,307
Total before taxes	-548		-511
Income tax expense	144		153
CONSOLIDATED NET INCOME	-404		-358
Reclassified out of accumulated other comprehensive income (loss)
Reclassified out of accumulated other comprehensive income (loss) and related tax effects
CONSOLIDATED NET INCOME	13		9
Realized (gain) loss on marketable securities | Reclassified out of accumulated other comprehensive income (loss)
Reclassified out of accumulated other comprehensive income (loss) and related tax effects
Other income (expense), net	-1		-1
Income tax expense	-1
CONSOLIDATED NET INCOME	-2		-1
Realized (gain) loss on derivatives | Foreign currency forward contracts | Reclassified out of accumulated other comprehensive income (loss)
Reclassified out of accumulated other comprehensive income (loss) and related tax effects
NET SALES			-2
Realized (gain) loss on derivatives | Commodity swap contracts | Reclassified out of accumulated other comprehensive income (loss)
Reclassified out of accumulated other comprehensive income (loss) and related tax effects
Cost of sales			2
Pension and other postretirement defined benefit plans | Reclassified out of accumulated other comprehensive income (loss)
Reclassified out of accumulated other comprehensive income (loss) and related tax effects
Recognized actuarial loss	22	[2]	15	[2]
Total before taxes	22		15
Income tax expense	-7		-5
CONSOLIDATED NET INCOME	$15		$10
[1]	Includes sales to nonconsolidated equity investees of $325 million and $592 million for the three month periods ended March 29, 2015 and March 30, 2014, respectively.
[2]	These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 3, ''PENSION AND OTHER POSTRETIREMENT BENEFITS'').

OPERATING_SEGMENTS_Details

OPERATING SEGMENTS (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 29, 2015		Mar. 30, 2014
Operating results:
Total sales	$4,709	[1]	$4,406	[1]
Depreciation and amortization	127	[2]	105
Research, development and engineering expenses	195		190
Equity, royalty and interest income from investees	68		90
Interest income	5		5
Segment EBIT	562		528
Less: Interest expense	14		17
INCOME BEFORE INCOME TAXES	548		511
Gain on remeasurement of pre-existing ownership interest in the acquiree company			6
Amortization of debt discount and deferred costs excluded	1
Minimum [Member]
Operating results:
Amortization of debt discount and deferred costs excluded			0
Engine
Operating results:
Depreciation and amortization	58	[2]	51	[2]
Research, development and engineering expenses	114		116
Equity, royalty and interest income from investees	30		32
Interest income	2		2
Segment EBIT	253		269
Distribution
Operating results:
Depreciation and amortization	27	[2]	16	[2]
Research, development and engineering expenses	3		2
Equity, royalty and interest income from investees	20		41
Interest income	1		1
Segment EBIT	88	[3]	76	[3]
Components [Member]
Operating results:
Depreciation and amortization	26	[2]	26	[2]
Research, development and engineering expenses	61		53
Equity, royalty and interest income from investees	9		9
Interest income	1		1
Segment EBIT	195		167
Power Generation
Operating results:
Depreciation and amortization	16	[2]	12	[2]
Research, development and engineering expenses	17		19
Equity, royalty and interest income from investees	9		8
Interest income	1		1
Segment EBIT	49		25
Non-segment items
Operating results:
Segment EBIT	-23	[4]	-9	[4]
External Sales
Operating results:
Total sales	4,709		4,406
External Sales | Engine
Operating results:
Total sales	1,889		2,090
External Sales | Distribution
Operating results:
Total sales	1,469		942
External Sales | Components [Member]
Operating results:
Total sales	931		922
External Sales | Power Generation
Operating results:
Total sales	420		452
Intersegment sales | Engine
Operating results:
Total sales	707		473
Intersegment sales | Distribution
Operating results:
Total sales	7		8
Intersegment sales | Components [Member]
Operating results:
Total sales	368		308
Intersegment sales | Power Generation
Operating results:
Total sales	260		187
Intersegment sales | Non-segment items
Operating results:
Total sales	-1,342	[4]	-976	[4]
Reportable segment
Operating results:
Total sales	4,709		4,406
Reportable segment | Engine
Operating results:
Total sales	2,596		2,563
Reportable segment | Distribution
Operating results:
Total sales	1,476		950
Reportable segment | Components [Member]
Operating results:
Total sales	1,299		1,230
Reportable segment | Power Generation
Operating results:
Total sales	680		639
Reportable segment | Non-segment items
Operating results:
Total sales	($1,342)	[4]	($976)	[4]
[1]	Includes sales to nonconsolidated equity investees of $325 million and $592 million for the three month periods ended March 29, 2015 and March 30, 2014, respectively.
[2]	Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs were $1 million and less than $1 million for the three months ended March 29, 2015 and March 30, 2014, respectively.
[3]	Distribution segment EBIT included a gain of $6 million on the fair value adjustment resulting from the acquisition of a controlling interest in a North American distributor for the three months ended March 30, 2014.
[4]	Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended MarchB 29, 2015 and MarchB 30, 2014.