Cummins (CMI) 10-K 11 Feb 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ / shares in Units, $ in Billions	12 Months Ended
	Dec. 31, 2018	Feb. 01, 2019	Jul. 01, 2018	Dec. 31, 2017
Document and Entity Information
Entity Registrant Name	CUMMINS INC.
Entity Central Index Key	26,172
Document Period End Date	Dec. 31, 2018
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		157,338,874
Entity Public Float			$ 21.7
Common Stock, Par or Stated Value Per Share	$ 2.50	$ 2.50		$ 2.50

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Income Statement [Abstract]
Net sales	[1]	$ 23,771	$ 20,428		$ 17,509
Cost of sales		18,034	15,328		13,051
GROSS MARGIN		5,737	5,100		4,458
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses		2,437	2,429		2,099
Research, development and engineering expenses		902	754		637
Equity, royalty and interest income from investees (Note 3)		394	357	[2]	301
Loss contingency (Note 9)		0	5	[3]	138	[3]
Other operating income (expense), net		(6)	65		(5)
OPERATING INCOME		2,786	2,334		1,880
Interest income		35	18		23
Interest expense (Note 10)		114	81		69
Other income, net		46	94		96
INCOME BEFORE INCOME TAXES		2,753	2,365		1,930
Income tax expense (Note 4)		566	1,371		474
CONSOLIDATED NET INCOME		2,187	994		1,456
Less: Net income (loss) attributable to noncontrolling interests		46	(5)		62
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$ 2,141	$ 999		$ 1,394
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. (Note 18)
Basic (in dollars per share)		$ 13.20	$ 5.99		$ 8.25
Diluted (in dollars per share)		$ 13.15	$ 5.97		$ 8.23
Sales to nonconsolidated equity investees		$ 1,267	$ 1,174		$ 1,028
[1]	Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016
[2]	U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million , $4 million and $12 million for the Engine, Distribution and Components segments, respectively. See Note 4 , " INCOME TAXES
[3]	See Note 9 , " PRODUCT WARRANTY LIABILITY

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$ 2,187	$ 994	$ 1,456
Other comprehensive income (loss), net of tax (Note 15)
Change in pension and other postretirement defined benefit plans	18	(4)	(31)
Foreign currency translation adjustments	(356)	335	(448)
Unrealized gain on marketable securities	0	2	1
Unrealized gain (loss) on derivatives	5	5	(12)
Total other comprehensive (loss) income, net of tax	(333)	338	(490)
COMPREHENSIVE INCOME	1,854	1,332	966
Less: Comprehensive income attributable to noncontrolling interests	17	15	45
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 1,837	$ 1,317	$ 921

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 1,303	$ 1,369
Marketable securities (Note 5)	222	198
Total cash, cash equivalents and marketable securities	1,525	1,567
Accounts and notes receivable, net
Trade and other	3,635	3,311
Nonconsolidated equity investees	231	307
Inventories (Note 6)	3,759	3,166
Prepaid expenses and other current assets	668	577
Total current assets	9,818	8,928
Long-term assets
Property, plant and equipment, net (Note 7)	4,096	3,927
Investments and advances related to equity method investees (Note 3)	1,222	1,156
Goodwill (Note 8)	1,126	1,082
Other intangible assets, net (Note 8)	909	973
Pension assets (Note 11)	929	1,043
Other assets	962	966
Total assets	19,062	18,075
Current liabilities
Accounts payable (principally trade)	2,822	2,579
Loans payable (Note 10)	54	57
Commercial paper (Note 10)	780	298
Accrued compensation, benefits and retirement costs	679	811
Current portion of accrued product warranty (Note 9)	654	454
Current portion of deferred revenue (Note 1)	498	500
Other accrued expenses (Note 12)	852	915
Current maturities of long-term debt (Note 10)	45	63
Total current liabilities	6,384	5,677
Long-term liabilities
Long-term debt (Note 10)	1,597	1,588
Pensions and other postretirement benefits (Note 11)	532	619
Accrued product warranty (Note 9)	740	466
Deferred revenue (Note 1)	658	604
Other liabilities (Note 12)	892	957
Total liabilities	10,803	9,911
Commitments and contingencies (Note 13)
Cummins Inc. shareholders’ equity (Note 14)
Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued	2,271	2,210
Retained earnings	12,917	11,464
Treasury stock, at cost, 64.4 and 56.7 shares	(6,028)	(4,905)
Common stock held by employee benefits trust, at cost, 0.4 and 0.5 shares	(5)	(7)
Accumulated other comprehensive loss (Note 15)	(1,807)	(1,503)
Total Cummins Inc. shareholders' equity	7,348	7,259
Noncontrolling interests (Note 17)	911	905
Total equity	8,259	8,164
Total liabilities and equity	$ 19,062	$ 18,075

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2018	Dec. 31, 2017
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	222.4	222.4
Treasury stock, shares	64.4	56.7
Common stock held by employee benefits trust, at cost, shares	0.4	0.5

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 2,187	$ 994	$ 1,456
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Impact of tax legislation, net (Note 4)	15	820	0
Depreciation and amortization	611	583	530
Deferred income taxes (Note 4)	(97)	(54)	50
Equity in income of investees, net of dividends	(93)	(123)	(46)
Pension contributions under (in excess of) expense, net (Note 11)	49	(161)	(92)
Other post retirement benefits payments in excess of expense, net (Note 11)	(19)	(5)	(25)
Stock-based compensation expense (Note 16)	53	41	32
Loss contingency charges, net of payments (Note 9)	(62)	5	122
Loss (gain) on corporate owned life insurance	26	(52)	(22)
Foreign currency remeasurement and transaction exposure	(46)	71	(55)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(363)	(508)	(265)
Inventories	(695)	(407)	(4)
Other current assets	(162)	(12)	14
Accounts Payable	302	639	188
Accrued Expenses	433	378	(195)
Changes in other liabilities and deferred revenue	75	241	200
Other, net	164	(173)	51
Net cash provided by operating activities	2,378	2,277	1,939
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(709)	(506)	(531)
Investments in internal use software	(75)	(81)	(63)
Proceeds from disposals of property, plant and equipment	20	110	14
Investments in and advances to equity investees	(37)	(66)	(41)
Acquisitions of businesses, net of cash acquired (Note 19)	(70)	(662)	(94)
Investments in marketable securities—acquisitions (Note 5)	(368)	(194)	(478)
Investments in marketable securities—liquidations (Note 5)	331	266	306
Proceeds from sale of equity investees (Note 3)	0	0	60
Cash flows from derivatives not designated as hedges	(102)	76	(102)
Other, net	36	5	12
Net cash used in investing activities	(974)	(1,052)	(917)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	36	6	111
Net borrowings of commercial paper (Note 10)	482	86	212
Payments on borrowings and capital lease obligations	(62)	(60)	(163)
Net borrowings under short-term credit agreements	1	12	19
Distributions to noncontrolling interests	(30)	(29)	(65)
Dividend payments on common stock (Note 14)	(718)	(701)	(676)
Repurchases of common stock (Note 14)	(1,140)	(451)	(778)
Acquisitions of noncontrolling interests (Note 19)	0	0	(98)
Other, net	31	63	25
Net cash used in financing activities	(1,400)	(1,074)	(1,413)
Effect of Exchange Rate on Cash and Cash Equivalents	(70)	98	(200)
Net (decrease) increase in cash and cash equivalents	(66)	249	(591)
Cash and cash equivalents at beginning of year	1,369	1,120	1,711
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 1,303	$ 1,369	$ 1,120

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	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
BALANCE, AT THE BEGINNING OF THE PERIOD at Dec. 31, 2015	$ 7,750	$ 556	$ 1,622	$ 10,322	$ (3,735)	$ (11)	$ (1,348)	$ 7,406	$ 344
Increase (Decrease) in Shareholders' Equity
Net income	1,456			1,394				1,394	62
Other comprehensive income (loss), net of tax (Note 15)	(490)						(473)	(473)	(17)
Issuance of common stock	6		6					6
Employee benefits trust activity (Note 14)	26		23			3		26
Repurchases of common stock (Note 14)	(778)				(778)			(778)
Cash dividends on common stock (Note 14)	(676)			(676)				(676)
Distributions to noncontrolling interests	(65)								(65)
Stock based awards	19		(5)		24			19
Acquisitions of noncontrolling interests (Note 19)	(98)		(73)					(73)	(25)
Other shareholder transactions	24		24					24	0
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2016	7,174	556	1,597	11,040	(4,489)	(8)	(1,821)	6,875	299
Increase (Decrease) in Shareholders' Equity
Impact of tax legislation (Note 4)	126			126				126
Net income	994			999				999	(5)
Other comprehensive income (loss), net of tax (Note 15)	338						318	318	20
Issuance of common stock	6		6					6
Employee benefits trust activity (Note 14)	18		17			1		18
Repurchases of common stock (Note 14)	(451)				(451)			(451)
Cash dividends on common stock (Note 14)	(701)			(701)				(701)
Distributions to noncontrolling interests	(29)								(29)
Stock based awards	38		3		35			38
Acquisition of business (Note 19)	600							0	600
Other shareholder transactions	51		31					(31)	20
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2017	8,164	556	1,654	11,464	(4,905)	(7)	(1,503)	7,259	905
Increase (Decrease) in Shareholders' Equity
Impact of adopting accounting standards (Note 1)	30			30				30
Net income	2,187			2,141				2,141	46
Other comprehensive income (loss), net of tax (Note 15)	(333)						(304)	(304)	(29)
Issuance of common stock	12		12					12
Employee benefits trust activity (Note 14)	17		15			2		17
Repurchases of common stock (Note 14)	(1,140)				(1,140)			(1,140)
Cash dividends on common stock (Note 14)	(718)			(718)				(718)
Distributions to noncontrolling interests	(30)								(30)
Stock based awards	13		(4)		17			13
Other shareholder transactions	57		38					38	19
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2018	$ 8,259	$ 556	$ 1,715	$ 12,917	$ (6,028)	$ (5)	$ (1,807)	$ 7,348	$ 911

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We were founded in 1919 as Cummins Engine Company, a corporation in Columbus, Indiana and one of the first diesel engine manufacturers. In 2001, we changed our name to Cummins Inc. We are a global power leader that designs, manufactures, distributes and services diesel and natural gas engines and powertrain-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, transmissions, electric power generation systems, batteries and electrified power systems. We sell our products to original equipment manufacturers (OEMs), distributors, dealers and other customers worldwide. We serve our customers through a network of approximately 600 wholly-owned and independent distributor locations and over 7,600 dealer locations in more than 190 countries and territories. Principles of Consolidation Our Consolidated Financial Statements include the accounts of all wholly-owned and majority-owned domestic and foreign subsidiaries where our ownership is more than 50 percent of outstanding equity interests except for majority-owned subsidiaries that are considered variable interest entities (VIEs) where we are not deemed to have a controlling financial interest. In addition, we also consolidate, regardless of our ownership percentage, VIEs or joint ventures for which we are deemed to have a controlling financial interest. Intercompany balances and transactions are eliminated in consolidation. Where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported in our Consolidated Balance Sheets . The noncontrolling ownership interest in our income, net of tax, is classified as "Net income (loss) attributable to noncontrolling interests" in our Consolidated Statements of Income . We have variable interests in several businesses accounted for under the equity method of accounting that are deemed to be VIEs and are subject to generally accepted accounting principles in the United States of America (GAAP) for variable interest entities. Most of these VIEs are unconsolidated. Reclassifications Certain amounts for 2017 and 2016 have been reclassified to conform to the current year presentation. Investments in Equity Investees We use the equity method to account for our investments in joint ventures, affiliated companies and alliances in which we have the ability to exercise significant influence, generally represented by equity ownership or partnership equity of at least 20 percent but not more than 50 percent . Generally, under the equity method, original investments in these entities are recorded at cost and subsequently adjusted by our share of equity in income or losses after the date of acquisition. Investment amounts in excess of our share of an investee's net assets are amortized over the life of the related asset creating the excess. If the excess is goodwill, then it is not amortized. Equity in income or losses of each investee is recorded according to our level of ownership; if losses accumulate, we record our share of losses until our investment has been fully depleted. If our investment has been fully depleted, we recognize additional losses only when we are the primary funding source. We eliminate (to the extent of our ownership percentage) in our Consolidated Financial Statements the profit in inventory held by our equity method investees that has not yet been sold to a third-party. Our investments are classified as "Investments and advances related to equity method investees" in our Consolidated Balance Sheets. Our share of the results from joint ventures, affiliated companies and alliances is reported in our Consolidated Statements of Income as "Equity, royalty and interest income from investees," and is reported net of all applicable income taxes. Our foreign equity investees are presented net of applicable foreign income taxes in our Consolidated Statements of Income . Our remaining United States (U.S.) equity investees are partnerships (non-taxable), thus there is no difference between gross or net of tax presentation as the investees are not taxed. See NOTE 3 , " INVESTMENTS IN EQUITY INVESTEES ," for additional information. Use of Estimates in the Preparation of the Financial Statements Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Consolidated Financial Statements . Significant estimates and assumptions in these Consolidated Financial Statements require the exercise of judgment and are used for, but not limited to, 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 rate and other assumptions for pensions and other postretirement benefit costs, income taxes and deferred tax valuation allowances, lease classification and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Revenue Recognition On January 1, 2018, we adopted the new revenue recognition standard in accordance with GAAP on a modified retrospective basis. See "RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS" below for additional information. Revenue Recognition Sales of Products We sell to customers either through long-term arrangements or standalone purchase orders. Our long-term arrangements generally do not include committed volumes until underlying purchase orders are issued. Our performance obligations vary by contract, but may include diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, transmissions, power generation systems and construction related projects, batteries, battery systems, parts, maintenance services and extended warranty coverage. Typically, we recognize revenue on the products we sell at a point in time, generally in accordance with shipping terms, which reflects the transfer of control to the customer. Since control of construction projects transfer to the customer as the work is performed, revenue on these projects is recognized based on the percentage of inputs incurred to date compared to the total expected cost of inputs, which is reflective of the value transferred to the customer. Revenue is recognized under long-term maintenance and other service agreements over the term of the agreement as underlying services are performed based on the percentage of the cost of services provided to date compared to the total expected cost of services to be provided under the contract. Sales of extended coverage are recognized based on the pattern of expected costs over the extended coverage period or, if such a pattern is unknown, on a straight-line basis over the coverage period as the customer is considered to benefit from our stand ready obligation over the coverage period. In all cases, we believe cost incurred is the most representative depiction of the extent of service performed to date on a particular contract. Our arrangements may include the act of shipping products to our customers after the performance obligation related to that product has been satisfied. We have elected to account for shipping and handling as activities to fulfill the promise to transfer goods and have not allocated revenue to the shipping activity. All related shipping and handling costs are accrued at the time of shipment. Our sales arrangements may include the collection of sales and other similar taxes that are then remitted to the related taxing authority. We have elected to present the amounts collected for these taxes net of the related tax expense rather than presenting them as additional revenue. We grant credit limits and terms to customers based upon traditional practices and competitive conditions. Typical terms vary by market, but payments are generally due in 90 days or less from invoicing for most of our product and service sales, while payments on construction and other similar arrangements may be due on an installment basis. For contracts where the time between cash collection and performance is less than one year, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. For contracts where this time period exceeds one year, generally the timing difference is the result of business concerns other than financing. We do have a limited amount of customer financing for which we charge or impute interest, but such amounts are immaterial to our Consolidated Statements of Income . Sales Incentives We provide various sales incentives to both our distribution network and OEM customers. These programs are designed to promote the sale of our products in the channel or encourage the usage of our products by OEM customers. When there is uncertainty surrounding these sales incentives, we may limit the amount of revenue we recognize under a contract until the uncertainty has been resolved. Sales incentives primarily fall into three categories: • Volume rebates; • Market share rebates; and • Aftermarket rebates. For volume rebates, we provide certain customers with rebate opportunities for attaining specified volumes during a particular quarter or year. We consider the expected amount of these rebates at the time of the original sale as we determine the overall transaction price. We update our assessment of the amount of rebates that will be earned quarterly based on our best estimate of the volume levels the customer will reach during the measurement period. For market share rebates, we provide certain customers with rebate opportunities based on the percentage of their production that utilizes our product. These rebates are typically measured either quarterly or annually and we assess them at least quarterly to determine our current estimates of amounts expected to be earned. These estimates are considered in the determination of transaction price at the time of the original sale based on the current market shares, with adjustments made as the level changes. For aftermarket rebates, we provide incentives to promote sales to certain dealers and end-markets. These rebates are typically paid on a quarterly, or more frequent basis. At the time of the sales, we consider the expected amount of these rebates when determining the overall transaction price. Estimates are adjusted at the end of each quarter based on the amounts yet to be paid. These estimates are based on historical experience with the particular program. Sales Returns The initial determination of the transaction price may also be impacted by expected product returns. Rights of return do not exist for the majority of our sales other than for quality issues. We do offer certain return rights in our aftermarket business, where some aftermarket customers are permitted to return small amounts of parts and filters each year, and in our power generation business, which sells portable generators to retail customers. An estimate of future returns is accounted for at the time of sale as a reduction in the overall contract transaction price based on historical return rates. Multiple Performance Obligations Our sales arrangements may include multiple performance obligations. We identify each of the material performance obligations in these arrangements and allocate the total transaction price to each performance obligation based on its relative selling price. In most cases, the individual performance obligations are also sold separately and we use that price as the basis for allocating revenue to the included performance obligations. When an arrangement includes multiple performance obligations and invoicing to the customer does not match the allocated portion of the transaction price, unbilled revenue or deferred revenue is recorded reflecting that difference. Unbilled and deferred revenue are discussed in more detail below. Long-term Contracts Our long-term maintenance agreements often include a variable component of the transaction price. We are generally compensated under such arrangements on a cost per hour of usage basis. We typically can estimate the expected usage over the life of the contract, but reassess the transaction price each quarter and adjust our recognized revenue accordingly. Certain maintenance agreements apply to generators used to provide standby power, which have limited expectations of usage. These agreements may include monthly minimum payments, providing some certainty to the total transaction price. For these particular contracts that relate to standby power, we limit revenue recognized to date to an amount representing the total minimums earned to date under the contract plus any cumulative billings earned in excess of the minimums. We reassess the estimates of progress and transaction price on a quarterly basis. For prime power arrangements, revenue is not subject to such a constraint and is generally equal to the current estimate on a percentage of completion basis times the total expected revenue under the contract. Most of our contracts are for a period of less than one year. We have certain long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that have not been satisfied as of December 31, 2018, was $710 million . We expect to recognize the related revenue of $211 million over the next 12 months and $499 million over periods up to 10 years . See NOTE 9 ," PRODUCT WARRANTY LIABILITY ," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of cost incurred when providing goods and services to our customers or represent sale-based royalties. Deferred and Unbilled Revenue The timing of our billing does not always match the timing of our revenue recognition. We record deferred revenue when we are entitled to bill a customer in advance of when we are permitted to recognize revenue. Deferred revenue may arise in construction contracts, where billings may occur in advance of performance or in accordance with specific milestones. Deferred revenue may also occur in long-term maintenance contracts, where billings are often based on usage of the underlying equipment, which generally follows a predictable pattern that often will result in the accumulation of collections in advance of our performance of the related maintenance services. Finally, deferred revenue exists in our extended coverage contracts, where the cash is collected prior to the commencement of the coverage period. Deferred revenue is included in our Consolidated Balance Sheets as a component of current liabilities for the amount expected to be recognized in revenue in a period of less than one year and long-term liabilities for the amount expected to be recognized as revenue in a period beyond one year. Deferred revenue is recognized as revenue when control of the underlying product, project or service passes to the customer under the related contract. We recognize unbilled revenue when the revenue has been earned, but not yet billed. Unbilled revenue is included in our Consolidated Balance Sheets as a component of current assets for those expected to be collected in a period of less than one year and long-term assets for those expected to be collected in a period beyond one year. Unbilled revenue relates to our right to consideration for our completed performance under a contract. Unbilled revenue generally arises from contractual provisions that delay a portion of the billings on genset deliveries until commissioning occurs. Unbilled revenue may also occur when billings trail the provision of service in construction and long-term maintenance contracts. We periodically assess our unbilled revenue for impairment. We did not record any impairment losses on our unbilled revenues during 2018 . The following is a summary of our unbilled and deferred revenue and related activity: In millions December 31, January 1, Unbilled revenue $ 64 $ 6 Deferred revenue, primarily extended warranty 1,156 1,052 Revenue recognized (1) (361 ) — ____________________________________ (1) Relates to year-to-date revenues recognized from amounts included in deferred revenue at the beginning of the year. Revenue recognized in the period from performance obligations satisfied in previous periods was immaterial. Contract Costs We are required to record an asset for the incremental costs of obtaining a contract with a customer and other costs to fulfill a contract not otherwise required to be immediately expensed when we expect to recover those costs. The only material incremental cost we incur is commission expense, which is generally incurred in the same period as the underlying revenue. Costs to fulfill a contract are generally limited to customer-specific engineering expenses that do not meet the definition of research and development expenses. As a practical expedient, we have elected to recognize these costs of obtaining a contract as an expense when the related contract period is less than one year. When the period exceeds one year, this asset is amortized over the life of the contract. We did not have any material capitalized balances at December 31, 2018 . Extended Warranty We sell extended warranty coverage on most of our engines and on certain components. We consider a warranty to be extended coverage in any of the following situations: • When a warranty is sold separately or is optional (extended coverage contracts, for example) or • When a warranty provides additional services. The consideration collected is initially deferred and is recognized as revenue in proportion to the costs expected to be incurred in performing services over the contract period. We compare the remaining deferred revenue balance quarterly to the estimated amount of future claims under extended warranty programs and provide an additional accrual when the deferred revenue balance is less than expected future costs. Foreign Currency Transactions and Translation We translate assets and liabilities of foreign entities to U.S. dollars, where the local currency is the functional currency, at year-end exchange rates. We translate income and expenses to U.S. dollars using weighted-average exchange rates for the year. We record adjustments resulting from translation in a separate component of accumulated other comprehensive loss (AOCL) and include the adjustments in net income only upon sale, loss of controlling financial interest or liquidation of the underlying foreign investment. Foreign currency transaction gains and losses are included in current net income. For foreign entities where the U.S. dollar is the functional currency, including those operating in highly inflationary economies when applicable, we remeasure non-monetary balances and the related income statement using historical exchange rates. We include in income the resulting gains and losses, including the effect of derivatives in our Consolidated Statements of Income , which combined with transaction gains and losses amounted to a net loss of $34 million , $6 million and $12 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Fair Value Measurements A three-level valuation hierarchy, based upon the observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets; • Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and • Level 3 - Instruments whose significant inputs are unobservable . Derivative Instruments We make use of derivative instruments in foreign exchange, commodity price and interest rate hedging programs. Derivatives currently in use are foreign currency forward contracts, commodity physical forward contracts, options and interest rate swaps. These contracts are used strictly for hedging and not for speculative purposes. We are exposed to market risk from fluctuations in interest rates. We manage our exposure to interest rate fluctuations through the use of interest rate swaps. The objective of the swaps is to more effectively balance our borrowing costs and interest rate risk. The gain or loss on these derivative instruments as well as the offsetting gain or loss on the hedged item are recognized in current income as "Interest expense." For more detail on our interest rate swaps, see NOTE 10 , " DEBT ." Due to our international business presence, we are exposed to foreign currency exchange risk. We transact in foreign currencies and have assets and liabilities denominated in foreign currencies. Consequently, our income experiences some volatility related to movements in foreign currency exchange rates. In order to benefit from global diversification and after considering naturally offsetting currency positions, we enter into foreign currency forward contracts to minimize our existing exposures (recognized assets and liabilities) and hedge forecasted transactions. Foreign currency forward contracts are designated and qualify as foreign currency cash flow hedges under GAAP. The effective portion of the unrealized gain or loss on the forward contract is deferred and reported as a component of AOCL. When the hedged forecasted transaction (sale or purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income. To minimize the income volatility resulting from the remeasurement of net monetary assets and payables denominated in a currency other than the functional currency, we enter into foreign currency forward contracts, which are considered economic hedges. The objective is to offset the gain or loss from remeasurement with the gain or loss from the fair market valuation of the forward contract. These derivative instruments are not designated as hedges under GAAP. We are exposed to fluctuations in commodity prices due to contractual agreements with component suppliers. In order to protect ourselves against future price volatility and, consequently, fluctuations in gross margins, we periodically enter into commodity physical forward contracts and zero-cost collar contracts with designated banks and other counterparties to fix the cost of certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations. The physical forward contracts qualify for the normal purchases scope exceptions and are treated as purchase commitments. The commodity zero-cost collar contracts that represent an economic hedge, but are not designated for hedge accounting, are marked to market through earnings. Income Tax Accounting We determine our income tax expense using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits of net operating loss and credit carryforwards are also recognized as deferred tax assets. We evaluate the recoverability of our deferred tax assets each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. A valuation allowance is recorded to reduce the tax assets to the net value management believes is more likely than not to be realized. In the event our operating performance deteriorates, future assessments could conclude that a larger valuation allowance will be needed to further reduce the deferred tax assets. In addition, we operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. We accrue for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions. We have taken and we believe we have made adequate provisions for income taxes for all years that are subject to audit based upon the latest information available. A more complete description of our income taxes and the future benefits of our net operating loss and credit carryforwards is disclosed in NOTE 4 , " INCOME TAXES ." Cash and Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with an original maturity of 90 days or less at the time of purchase. The carrying amounts reflected in our Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to the short-term maturity of these investments. Years ended December 31, In millions 2018 2017 2016 Cash payments for income taxes, net of refunds $ 699 $ 622 $ 430 Cash payments for interest, net of capitalized interest 114 82 68 Marketable Securities We account for marketable securities in accordance with GAAP for investments in debt and equity securities. Effective January 1, 2018 and forward , with the adoption of the new Financial Accounting Standards Board (FASB) standard, only debt securities are classified as "held-to-maturity," "available-for-sale" or "trading". We determine the appropriate classification of debt securities at the time of purchase, and re-evaluate such classifications at each balance sheet date. At December 31, 2018 and 2017 , all of our debt securities were classified as available-for-sale. With the adoption of the new standard, debt and equity securities are carried at fair value with the unrealized gain or loss, net of tax, reported in other comprehensive income and other income, respectively. For debt securities, unrealized losses considered to be "other-than-temporary" are recognized currently in other income. The cost of securities sold is based on the specific identification method. The fair value of most investment securities is determined by currently available market prices. Where quoted market prices are not available, we use the market price of similar types of securities that are traded in the market to estimate fair value. See " RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS " section below for additional information and NOTE 5 , " MARKETABLE SECURITIES ," for a detailed description of our investments in marketable securities. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable represent amounts billed to customers and not yet collected or amounts that have been earned, but may not be billed until the passage of time, and are recorded when the right to consideration becomes unconditional. Trade accounts receivable are recorded at the invoiced amount, which approximates net realizable value, and generally do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on our historical collection experience and by performing an analysis of our accounts receivable in light of the current economic environment. We review our allowance for doubtful accounts on a regular basis. In addition, when necessary, we provide an allowance for the full amount of specific accounts deemed to be uncollectible. Account balances are charged off against the allowance in the period in which we determine that it is probable the receivable will not be recovered. The allowance for doubtful accounts balances were $15 million and $16 million for the years ended December 31, 2018, and 2017 , respectively, and bad debt write-offs were not material. Inventories Our inventories are stated at the lower of cost or market. For the years ended December 31, 2018 and 2017 , approximately 13 percent and 12 percent , respectively, of our consolidated inventories (primarily heavy-duty and high-horsepower engines and parts) were valued using the last-in, first-out (LIFO) cost method. The cost of other inventories is generally valued using the first-in, first-out (FIFO) cost method. Our inventories at interim and year-end reporting dates include estimates for adjustments related to annual physical inventory results and for inventory cost changes under the LIFO cost method. Due to significant movements of partially-manufactured components and parts between manufacturing plants, we do not internally measure, nor do our accounting systems provide, a meaningful segregation between raw materials and work-in-process. See NOTE 6 , " INVENTORIES ," for additional information. Property, Plant and Equipment We record property, plant and equipment, inclusive of assets under capital leases, at cost. We depreciate the cost of the majority of our property, plant and equipment using the straight-line method with depreciable lives ranging from 20 to 40 years for buildings and 3 to 15 years for machinery, equipment and fixtures. Capital lease amortization is recorded in depreciation expense. We expense normal maintenance and repair costs as incurred. Depreciation expense totaled $455 million , $467 million and $434 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. See NOTE 7 , " PROPERTY, PLANT AND EQUIPMENT ," for additional information. Impairment of Long-Lived Assets We review our long-lived assets for possible impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. We assess the recoverability of the carrying value of the long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment of a long-lived asset or asset group exists when the expected future pre-tax cash flows (undiscounted and without interest charges) estimated to be generated by the asset or asset group is less than its carrying value. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is measured based on the difference between the estimated fair value and carrying value of the asset or asset group. Assumptions and estimates used to estimate cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in a future impairment charge. Goodwill Under GAAP for goodwill, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform an annual quantitative goodwill impairment test. We have elected this option on certain reporting units. The quantitative impairment test is only required if an entity determines through this qualitative analysis that it is more likely than not that the fair value of the reporting unit is less than its carrying value. In addition, the carrying value of goodwill must be tested for impairment on an interim basis in certain circumstances where impairment may be indicated. We adopted the FASB's revised rules for goodwill impairment testing in 2018, which simplified the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual, or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s f

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUE REVENUE RECOGNITION DISAGGREGATION OF REVENUE	12 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 2. DISAGGREGATION OF REVENUE Consolidated Revenue The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Years ended December 31, In millions 2018 2017 2016 United States $ 13,218 $ 11,010 $ 9,476 China 2,324 2,137 1,544 India 965 805 621 Other international 7,264 6,476 5,868 Total net sales $ 23,771 $ 20,428 $ 17,509 Segment Revenue Engine segment external sales by market were as follows: In millions Year ended December 31, 2018 Heavy-duty truck $ 2,885 Medium-duty truck and bus 2,536 Light-duty automotive 1,501 Total on-highway 6,922 Off-highway 1,080 Total sales $ 8,002 Distribution segment external sales by region were as follows: In millions Year ended December 31, 2018 North America $ 5,331 Asia Pacific 851 Europe 536 China 317 Africa and Middle East 242 India 192 Latin America 169 Russia 169 Total sales $ 7,807 Distribution segment external sales by product line were as follows: In millions Year ended December 31, 2018 Parts $ 3,222 Engines 1,632 Service 1,471 Power generation 1,482 Total sales $ 7,807 Components segment external sales by business were as follows: In millions Year ended December 31, 2018 Emission solutions $ 2,780 Filtration 1,010 Turbo technologies 761 Automated transmissions 543 Electronics and fuel systems 237 Total sales $ 5,331 Power Systems segment external sales by product line were as follows: In millions Year ended December 31, 2018 Power generation $ 1,467 Industrial 801 Generator technologies 357 Total sales $ 2,625

INVESTMENTS IN EQUITY INVESTEES

INVESTMENTS IN EQUITY INVESTEES	12 Months Ended
	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN EQUITY INVESTEES	NOTE 3. INVESTMENTS IN EQUITY INVESTEES Investments and advances related to equity method investees and our ownership percentage was as follows: December 31, In millions Ownership % 2018 2017 Komatsu alliances 20-50% $ 238 $ 219 Beijing Foton Cummins Engine Co., Ltd. 50% 203 223 Dongfeng Cummins Engine Company, Ltd. 50% 160 146 Chongqing Cummins Engine Company, Ltd. 50% 102 84 Cummins-Scania XPI Manufacturing, LLC 50% 101 87 Tata Cummins, Ltd. 50% 58 59 Other Various 360 338 Investments and advances related to equity method investees $ 1,222 $ 1,156 We have approximately $743 million in our investment account at December 31, 2018 , that represents cumulative undistributed income in our equity investees. Dividends received from our unconsolidated equity investees were $242 million , $219 million and $212 million in 2018 , 2017 and 2016 , respectively. Equity, royalty and interest income from investees, net of applicable taxes, was as follows: Years ended December 31, In millions 2018 2017 2016 Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 72 $ 94 $ 52 Dongfeng Cummins Engine Company, Ltd. 58 73 46 Chongqing Cummins Engine Company, Ltd. 51 41 38 Cummins Westport, Inc. 28 9 (1) 11 Dongfeng Cummins Emission Solutions Co., Ltd. 14 13 9 Tata Cummins, Ltd. 14 (7 ) (1) 6 All other manufacturers 73 56 (1) 43 Distribution entities Komatsu Cummins Chile, Ltda. 26 30 34 North American distributors — — 21 (2) All other distributors — (1 ) — Cummins share of net income 336 308 260 Royalty and interest income 58 49 41 Equity, royalty and interest income from investees $ 394 $ 357 $ 301 ___________________________________________________________ (1) U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, including a $7 million unfavorable impact to Cummins Westport, Inc. due to the remeasurement of deferred taxes and $15 million unfavorable impact to Tata Cummins, Ltd. and a $17 million unfavorable impact to "All other manufacturers" due to withholding tax adjustments on foreign earnings. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information . (2) During 2016, we acquired the remaining interest in the final unconsolidated North American distributor joint venture. Manufacturing Entities Our manufacturing joint ventures have generally been formed with customers and are primarily intended to allow us to increase our market penetration in geographic regions, reduce capital spending, streamline our supply chain management and develop technologies. Our largest manufacturing joint ventures are based in China and are included in the list below. Our engine manufacturing joint ventures are supplied by our Components segment in the same manner as it supplies our wholly-owned Engine segment and Power Systems segment manufacturing facilities. Our Components segment joint ventures and wholly owned entities provide electronics, fuel systems, filtration, aftertreatment systems, turbocharger products and transmissions that are used with our engines as well as some competitors' products. The results and investments in our joint ventures in which we have 50 percent or less ownership interest (except for Eaton Cummins Automated Transmission Technologies joint venture ) are included in “Equity, royalty and interest income from investees” and “Investments and advances related to equity method investees” in our Consolidated Statements of Income and Consolidated Balance Sheets , respectively. • Beijing Foton Cummins Engine Co., Ltd. - Beijing Foton Cummins Engine Co., Ltd. is a joint venture in China with Beiqi Foton Motor Co., Ltd., a commercial vehicle manufacturer, which consists of two distinct lines of business, a light-duty business and a heavy-duty business. The light-duty business produces our families of ISF 2.8 liter to 4.5 liter high performance light-duty diesel engines in Beijing. These engines are used in light-duty and medium duty commercial trucks, pick-up trucks, buses, multipurpose and sport utility vehicles with main markets in China, Brazil and Russia. Certain types of small construction equipment and industrial applications are also served by these engine families. The heavy-duty business produces the X11 and X12 high performance heavy-duty diesel engines in Beijing. These engines are used in heavy-duty commercial trucks in China and will be used by Cummins either directly sourced from China and/or locally assembled in other markets. Certain types of construction equipment and industrial applications are also served by these engine families. • Dongfeng Cummins Engine Company, Ltd. - Dongfeng Cummins Engine Company, Ltd. (DCEC) is a joint venture in China with Dongfeng Automotive Co. Ltd., a subsidiary of Dongfeng Motor Corporation, one of the largest medium-duty and heavy-duty truck manufacturers in China. DCEC produces Cummins 3.9 to 13 -liter diesel engines, with a power range from 80 to 680 horsepower, and natural gas engines. • Chongqing Cummins Engine Company, Ltd. - Chongqing Cummins Engine Company, Ltd. is a joint venture in China with Chongqing Machinery and Electric Co. Ltd. This joint venture manufactures several models of our heavy-duty and high-horsepower diesel engines, primarily serving the industrial and stationary power markets in China. • Cummins Westport, Inc. - Cummins Westport, Inc. is a joint venture in Canada with Westport Innovations Inc. to market and sell automotive spark-ignited natural gas engines worldwide and to participate in joint technology projects on low-emission technologies. • Dongfeng Cummins Emission Solutions Co., Ltd. - Dongfeng Cummins Emission Solutions Co. Ltd. is a joint venture in China with Dongfeng Industrial Company, a subsidiary of Dongfeng Motor Group Company Limited, a manufacturer of numerous on-highway vehicles. This joint venture produces, purchases and sells advanced diesel engine aftertreatment solutions to support the full line of Dongfeng's commercial vehicles. • Tata Cummins, Ltd. - Tata Cummins, Ltd. is a joint venture in India with Tata Motors Ltd., the largest automotive company in India and a member of the Tata group of companies. This joint venture manufactures Cummins' 3.8 to 8.9 -liter diesel engines in India with a power range from 75 to 400 horsepower for use in trucks manufactured by Tata Motors, as well as for various industrial and power generation applications. Distribution Entities We have an extensive worldwide distributor and dealer network through which we sell and distribute our products and services. Generally, our distributors are divided by geographic region with some of our distributors being wholly-owned by Cummins, some partially-owned and some independently owned. We consolidate all wholly-owned distributors and partially-owned distributors where we are the primary beneficiary and account for other partially-owned distributors using the equity method of accounting. Komatsu Cummins Chile, Ltda. - Komatsu Cummins Chile, Ltda. is a joint venture with Komatsu America Corporation. The joint venture is a distributor that offers the full range of our products and services to customers and end-users in Chile and Peru. In certain cases where we own a partial interest in a distributor, we may be obligated to purchase the other equity holders' interests if certain events occur (such as the death or resignation of the distributor principal or a change in control of Cummins Inc.). The purchase consideration of the equity interests may be determined based on the fair vale of the distributor's assets. Repurchase obligations and practices vary by geographic region. All distributors that are partially-owned are considered to be related parties in our Consolidated Financial Statements . Equity Investee Financial Summary Summary financial information for our equity investees was as follows: For the years ended and at December 31, In millions 2018 2017 2016 Net sales $ 7,352 $ 7,050 $ 5,654 Gross margin 1,373 1,422 1,182 Net income 647 680 499 Cummins share of net income $ 336 $ 308 $ 260 Royalty and interest income 58 49 41 Total equity, royalty and interest from investees $ 394 $ 357 $ 301 Current assets $ 3,401 $ 3,416 Non-current assets 1,449 1,379 Current liabilities (2,669 ) (2,567 ) Non-current liabilities (218 ) (237 ) Net assets $ 1,963 $ 1,991 Cummins share of net assets $ 1,144 $ 1,116 Sale of Equity Investee In the fourth quarter of 2016, we sold our remaining 49 percent interest in Cummins Olayan Energy for $61 million and recognized a gain of $17 million . We received cash of $58 million

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 4. INCOME TAXES The following table summarizes income before income taxes: Years ended December 31, In millions 2018 2017 2016 U.S. income $ 1,239 $ 1,237 $ 995 Foreign income 1,514 1,128 935 Income before income taxes $ 2,753 $ 2,365 $ 1,930 Income tax expense (benefit) consists of the following: Years ended December 31, In millions 2018 2017 2016 Current U.S. federal and state $ 303 $ 355 $ 211 Foreign 348 289 213 Impact of tax legislation 153 349 — Total current 804 993 424 Deferred U.S. federal and state (71 ) (42 ) 57 Foreign (26 ) (12 ) (7 ) Impact of tax legislation (141 ) 432 — Total deferred (238 ) 378 50 Income tax expense $ 566 $ 1,371 $ 474 A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate was as follows: Years ended December 31, 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % State income tax, net of federal effect 0.9 0.6 0.8 Differences in rates and taxability of foreign subsidiaries and joint ventures (0.2 ) (6.4 ) (7.2 ) Research tax credits (1.2 ) (1.4 ) (1.7 ) Impact of tax legislation 0.5 33.1 — Other, net (0.4 ) (2.9 ) (2.3 ) Effective tax rate 20.6 % 58.0 % 24.6 % On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (Tax Legislation) which changed the U.S. statutory rate to 21 percent effective January 1, 2018 and required companies to pay a one-time transition tax on certain previously undistributed earnings on certain foreign subsidiaries and foreign joint ventures that were tax deferred. Our effective tax rate for 2018 was 20.6 percent compared to 58.0 percent for 2017 and 24.6 percent for 2016. The impacts of the Tax Legislation resulted in additional tax expense of $12 million in 2018 and $781 million in 2017. The Securities and Exchange Commission (SEC) issued guidance which addressed the uncertainty in the application of GAAP to the Tax Legislation where certain income tax effects could not be finalized at December 31, 2017. This guidance allowed entities to record provisional amounts based on current estimates that were updated on a quarterly basis in 2018. The SEC required final calculations to be completed within the one year measurement period ending December 22, 2018 and reflect any additional guidance issued throughout the year. We made provisional estimates of the effects of the Tax Legislation in three primary areas: (1) our existing deferred tax balances; (2) the one-time transition tax and (3) the withholding tax accrued on those earnings no longer considered permanently reinvested at December 31, 2017. Each of these items is described in more detail below. 2017 IMPACT OF TAX LEGISLATION Deferred tax assets and liabilities We remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future, which was generally 21 percent. The provisional amount related to the remeasurement of our deferred tax balance was an incremental tax expense of $152 million in 2017 . See NOTE 3 , " INVESTMENTS IN EQUITY INVESTEES ," for the impact to our equity investees. One-time transition tax The one-time transition tax was based on our total post-1986 unrepatriated earnings and profits not previously subject to U.S. income tax. The recorded provisional amount for our one-time transition tax was a tax expense of $298 million with a cash impact of $338 million . Withholding tax Withholding tax is an additional cost associated with the distribution of earnings from some jurisdictions. As a result of the Tax Legislation, we reconsidered previous assertions regarding earnings that were considered permanently reinvested, which required us to record withholding taxes on earnings likely to be distributed in the foreseeable future. The assertion as to which earnings are permanently reinvested for purposes of calculating withholding tax was provisional as we refined the underlying calculations of the amount of earnings subject to the tax and the rate at which it will be taxed. The recorded provisional amount for the withholding tax resulted in an incremental tax expense of $331 million . See NOTE 3 , " INVESTMENTS IN EQUITY INVESTEES ," and NOTE 17 , " NONCONTROLLING INTERESTS ," for the impact of withholding taxes to our equity investees and noncontrolling interests. 2018 ADJUSTMENTS TO TAX LEGISLATION We completed accounting for the tax effects of the enactment of the Tax Legislation at December 31, 2018 and included $12 million of unfavorable discrete tax items in our 2018 tax provision. The adjustments for income tax expense (benefit) during the one-year Tax Legislation measurement period for each group and other Tax Legislation adjustments consisted of the following: Years Ended December 31, In millions 2018 2017 Total Impact One-year measurement adjustments to 2017 estimates Withholding tax accrued $ (148 ) $ 331 $ 183 Deferred tax balances 7 152 159 One-time transition tax 111 298 409 Net impact of measurement period changes (30 ) 781 751 Other 2018 adjustments Deferred tax charges (1) 35 — 35 Foreign currency adjustment related to Tax Legislation 7 — 7 Net impact of 2018 adjustments 42 — 42 Total Tax Legislation impact $ 12 $ 781 $ 793 ____________________________________________________ (1) Charges relate to one-time recognition of deferred tax charges at historical tax rates on intercompany profit in inventory. Carryforward tax benefits and the tax effect of temporary differences between financial and tax reporting that give rise to net deferred tax (liabilities) assets were as follows: December 31, In millions 2018 2017 Deferred tax assets U.S. state carryforward benefits $ 191 $ 200 Foreign carryforward benefits 149 159 Employee benefit plans 245 274 Warranty expenses 401 300 Accrued expenses 94 95 Other 65 70 Gross deferred tax assets 1,145 1,098 Valuation allowance (327 ) (347 ) Total deferred tax assets 818 751 Deferred tax liabilities Property, plant and equipment (255 ) (250 ) Unremitted income of foreign subsidiaries and joint ventures (184 ) (331 ) Employee benefit plans (202 ) (224 ) Other (30 ) (31 ) Total deferred tax liabilities (671 ) (836 ) Net deferred tax assets (liabilities) $ 147 $ (85 ) Our 2018 U.S. carryforward benefits include $191 million of state credit and net operating loss carryforward benefits that begin to expire in 2019 . Our foreign carryforward benefits include $149 million of net operating loss carryforwards that begin to expire in 2019 . A valuation allowance is recorded to reduce the gross deferred tax assets to an amount we believe is more likely than not to be realized. The valuation allowance is $327 million and decreased in 2018 by a net $20 million . The valuation allowance is primarily attributable to the uncertainty regarding the realization of a portion of the U.S. state and foreign net operating loss and tax credit carryforward benefits. Our Consolidated Balance Sheets contain the following tax related items: December 31, In millions 2018 2017 Prepaid and other current assets Refundable income taxes $ 117 $ 152 Other assets Deferred income tax assets 410 306 Long-term refundable income taxes 6 6 Accrued expenses Income tax payable 97 77 Other liabilities and deferred revenue Income tax payable 293 281 Deferred income tax liabilities 263 391 A reconciliation of unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016 was as follows: December 31, In millions 2018 2017 2016 Balance at beginning of year $ 41 $ 59 $ 135 Additions to current year tax positions 10 11 10 Additions to prior years' tax positions 27 9 18 Reductions to prior years' tax positions (2 ) (3 ) — Reductions for tax positions due to settlements with taxing authorities (5 ) (35 ) (104 ) Balance at end of year $ 71 $ 41 $ 59 Included in the December 31, 2018 , 2017 and 2016 , balances are $62 million , $32 million and $31 million , respectively, related to tax positions that, if released, would favorably impact the effective tax rate in future periods. We have also accrued interest expense related to the unrecognized tax benefits of $4 million , $4 million and $3 million as of December 31, 2018 , 2017 and 2016 , respectively. We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although we believe that adequate provision has been made for such issues, there is the possibility that the ultimate resolution of such issues could have an adverse effect on our earnings. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced, thus having a positive impact on earnings.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2018
Marketable Securities [Abstract]
MARKETABLE SECURITIES	NOTE 5. MARKETABLE SECURITIES A summary of marketable securities, all of which are classified as current, was as follows: December 31, 2018 2017 In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 103 $ 1 $ 104 $ 170 $ — $ 170 Certificates of deposit 101 — 101 12 — 12 Equity mutual funds 16 — 16 12 3 15 Debt securities 1 — 1 1 — 1 Total marketable securities $ 221 $ 1 $ 222 $ 195 $ 3 $ 198 ______________________________________________________ (1) Unrealized gains and losses for debt securities are recorded in other comprehensive income (See NOTE 15 , " ACCUMULATED OTHER COMPREHENSIVE LOSS ," to our Consolidated Financial Statements for more information). Effective January 1, 2018, with the adoption of the new FASB standard, all unrealized gains and losses for equity securities are recorded in "Other income, net" in the Consolidated Statements of Income . See NOTE 1 , " RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS ," for detailed information about the adoption of this standard. Effective January 1, 2018 and forward , only debt securities are classified as "held-to-maturity," "available-for-sale" or "trading". Only debt securities at December 31, 2018 are classified as available-for-sale securities, while all equity and debt securities at December 31, 2017 , are classified as available-for-sale securities. All marketable securities presented use a Level 2 fair value measure. The fair value of Level 2 securities is estimated using actively quoted prices for similar instruments from brokers and observable inputs where available, including market transactions and third-party pricing services, or net asset values provided to investors. We do not currently have any Level 3 securities and there were no transfers between Level 2 or 3 during 2018 or 2017. A description of the valuation techniques and inputs used for our Level 2 fair value measures is as follows: • Debt mutual funds — The fair value measure for the vast majority of these investments is the daily net asset value published on a regulated governmental website. Daily quoted prices are available from the issuing brokerage and are used on a test basis to corroborate this Level 2 input. • Certificates of deposit — These investments provide us with a contractual rate of return and generally range in maturity from three months to five years . The counterparties to these investments are reputable financial institutions with investment grade credit ratings. Since these instruments are not tradable and must be settled directly by us with the respective financial institution, our fair value measure is the financial institution's month-end statement. • Equity mutual funds — The fair value measure for these investments is the net asset value published by the issuing brokerage. Daily quoted prices are available from reputable third party pricing services and are used on a test basis to corroborate this Level 2 input measure. • Debt securities — The fair value measure for these securities is broker quotes received from reputable firms. These securities are infrequently traded on a national stock exchange and these values are used on a test basis to corroborate our Level 2 input measure. The proceeds from sales and maturities of marketable securities were as follows: Years ended December 31, In millions 2018 2017 2016 Proceeds from sales of marketable securities $ 253 $ 145 $ 116 Proceeds from maturities of marketable securities 78 121 190 Investments in marketable securities - liquidations $ 331 $ 266 $ 306

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 6. INVENTORIES Inventories are stated at the lower of cost or market. Inventories included the following: December 31, In millions 2018 2017 Finished products $ 2,405 $ 2,078 Work-in-process and raw materials 1,487 1,216 Inventories at FIFO cost 3,892 3,294 Excess of FIFO over LIFO (133 ) (128 ) Total inventories $ 3,759 $ 3,166

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 7. PROPERTY, PLANT AND EQUIPMENT Details of our property, plant and equipment balance were as follows: December 31, In millions 2018 2017 Land and buildings $ 2,398 $ 2,332 Machinery, equipment and fixtures 5,391 5,285 Construction in process 530 441 Property, plant and equipment, gross 8,319 8,058 Less: Accumulated depreciation (4,223 ) (4,131 ) Property, plant and equipment, net $ 4,096 $ 3,927

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 : In millions Components Electrified Power Distribution Power Systems Engine Segment Total Unallocated Total Balance at December 31, 2016 $ 386 $ — $ 79 $ 9 $ 6 $ 480 $ — $ 480 Acquisitions 544 (1) — — — — 544 47 (2) 591 Translation and other 10 — — 1 — 11 — 11 Balance at December 31, 2017 940 — 79 10 6 1,035 47 1,082 Acquisitions — 49 (1) — — — 49 — 49 Translation and other (5 ) — — — — (5 ) — (5 ) Allocation to segment — 47 (2) — — — 47 (47 ) — Balance at December 31, 2018 $ 935 $ 96 $ 79 $ 10 $ 6 $ 1,126 $ — $ 1,126 ____________________________________________________ (1) See Note 19 , " ACQUISITIONS ," for additional information on acquisition goodwill. (2) Goodwill associated with the Brammo Inc. acquisition was presented as an unallocated item as it had not yet been assigned to a reportable segment at December 31, 2017. Effective January 1, 2018, Brammo Inc. was assigned to our new Electrified Power segment. See Note 19 , " ACQUISITIONS ," for additional information. Intangible assets that have finite useful lives are amortized over their estimated useful lives. The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: December 31, In millions 2018 2017 Software $ 662 $ 718 Less: Accumulated amortization (372 ) (386 ) Software, net 290 332 Trademarks, patents, customer relationships and other 803 786 Less: Accumulated amortization (184 ) (145 ) Trademarks, patents, customer relationships and other, net 619 641 Total other intangible assets, net $ 909 $ 973 Amortization expense for software and other intangibles totaled $153 million , $112 million and $92 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows: In millions 2019 2020 2021 2022 2023 Projected amortization expense $ 125 $ 114 $ 93 $ 73 $ 56

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	12 Months Ended
	Dec. 31, 2018
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 product campaigns, was as follows: December 31, In millions 2018 2017 2016 Balance, beginning of year $ 1,687 $ 1,414 $ 1,404 Provision for warranties issued 918 557 334 Deferred revenue on extended warranty contracts sold 293 240 231 Payments made during period (443 ) (398 ) (385 ) Amortization of deferred revenue on extended warranty contracts (244 ) (219 ) (201 ) Changes in estimates for pre-existing warranties 3 85 44 Foreign currency translation and other (6 ) 8 (13 ) Balance, end of year $ 2,208 $ 1,687 $ 1,414 Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Consolidated Balance Sheets were as follows: December 31, In millions 2018 2017 Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 227 $ 231 Current portion of deferred revenue Long-term portion 587 536 Deferred revenue Total $ 814 $ 767 Base product warranty Current portion $ 654 $ 454 Current portion of accrued product warranty Long-term portion 740 466 Accrued product warranty Total $ 1,394 $ 920 Total warranty accrual $ 2,208 $ 1,687 Engine System Campaign Accrual During 2017, the California Air Resources Board (CARB) and the U.S. Environmental Protection Agency (EPA) selected certain of our pre-2013 model year engine systems for additional emissions testing. Some of these engine systems failed CARB and EPA tests as a result of degradation of an aftertreatment component. We recorded charges of $36 million to cost of sales in our Consolidated Statements of Income during 2017 for the then expected cost of field campaigns to repair some of these engine systems. In the first quarter of 2018, we concluded based upon additional emission testing performed, and further discussions with the EPA and CARB that the field campaigns should be expanded to include a larger population of our engine systems that are subject to the aftertreatment component degradation, including our model years 2010 through 2015. As a result, we recorded an additional charge of $187 million , or $0.87 per share, to cost of sales in our Consolidated Statements of Income ( $94 million recorded in the Components segment and $93 million in the Engine segment). In the second quarter of 2018, we reached agreement with the CARB and EPA regarding our plans to address the affected populations. In finalizing our plans, we increased the number of systems to be addressed through hardware replacement compared to our assumptions resulting in an additional charge of $181 million , or $0.85 per share, to cost of sales in our Consolidated Statements of Income ( $91 million recorded in the Engine segment and $90 million in the Components segment). The campaigns launched in the third quarter of 2018 and will be completed in phases across the affected population with a projection to be substantially complete by December 31, 2020. The total remaining accrual related to this matter at December 31, 2018 was $372 million and is included in the base warranty total in the above table. Loss Contingency Engine systems sold in the U.S. must be certified to comply with the EPA and CARB emission standards. EPA and CARB regulations require that in-use testing be performed on vehicles by the emission certificate holder and reported to the EPA and CARB in order to ensure ongoing compliance with these emission standards. We are the holder of this emission certificate for our engines, including engines installed in certain vehicles with one customer for which we did not also manufacture or sell the emission aftertreatment system. During 2015, a quality issue in certain of these third party aftertreatment systems caused some of our inter-related engines to fail in-use emission testing. In the fourth quarter of 2015, the vehicle manufacturer made a request that we assist in the design and bear the financial cost of a field campaign to address the technical issue purportedly causing some vehicles to fail the in-use testing. As the certificate holder, we recorded a charge of $60 million in 2015 for the expected cost of the proposed voluntary campaign. The campaign design was finalized with our original equipment manufacturer (OEM) customer, reviewed with the EPA and submitted for final approval in 2016. We concluded based upon additional in-use emission testing performed in 2016 that the campaign should be expanded to include a larger population of vehicles manufactured by this one OEM. We recorded additional charges of $138 million in 2016 to reflect the estimated cost of our overall participation in the campaign. In late 2016, litigation arose with our OEM customer regarding cost allocation for this campaign. In January 2018, a settlement was reached with our customer to fully resolve this matter, which resulted in an incremental charge of $5 million recorded in the fourth quarter of 2017. These charges are reflected in a separate line item on our Consolidated Statements of Income

DEBT

DEBT	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
DEBT	NOTE 10. DEBT Loans Payable and Commercial Paper Loans payable at December 31, 2018 and 2017 were $54 million and $57 million , respectively, and consisted primarily of notes payable to financial institutions. The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows: Loans Payable 2018 2017 2016 Weighted-average interest rate 4.66 % 3.01 % 4.20 % We can issue up to $3.5 billion of unsecured, short-term promissory notes ("commercial paper") pursuant to our board authorized commercial paper programs. The programs facilitate the private placement of unsecured short-term debt through third party brokers. We intend to use the net proceeds from the commercial paper borrowings for general corporate purposes. We had $780 million and $298 million in outstanding borrowings under our commercial paper programs at December 31, 2018 and 2017 , respectively. The weighted-average interest rate for commercial paper at December 31 was as follows: Commercial Paper 2018 2017 2016 Weighted-average interest rate 2.59 % 1.56 % 0.79 % Revolving Credit Facilities On August 22, 2018, we entered into a new five-year revolving credit agreement with a syndicate of lenders. The new credit agreement provides us with a $2 billion senior unsecured revolving credit facility until August 22, 2023. This credit agreement replaces the prior $1.75 billion five-year credit agreement that would have matured on November 13, 2020. Amounts payable under our revolving credit facility will rank pro rata with all of our unsecured, unsubordinated indebtedness. Up to $300 million under this credit facility is available for swingline loans. Advances under the facility bear interest at (i) a base rate or (ii) a rate equal to the LIBOR rate plus an applicable margin based on the credit ratings of our outstanding senior unsecured long-term debt. Based on our current long-term debt ratings, the applicable margin on LIBOR rate loans was 0.75 percent per annum as of December 31, 2018 . Advances under the facility may be prepaid without premium or penalty, subject to customary breakage costs. On August 22, 2018, we entered into a new 364-day credit agreement that allows us to borrow up to $1.5 billion of additional unsecured funds at any time through August 21, 2019. This credit agreement replaces the prior $1.0 billion 364-day credit facility that would have matured on September 14, 2018. Up to $150 million under this credit facility is available for swingline loans. Both credit agreements include various covenants, including, among others, maintaining a total debt to total capital leverage ratio of no more than 0.65 to 1.0. At December 31, 2018 , we were in compliance with the covenants. These revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings and for general corporate purposes. There were no outstanding borrowings under these facilities at December 31, 2018 . We intend to maintain credit facilities of a similar aggregate amount by renewing or replacing these facilities before expiration. At December 31, 2018 , we had $780 million of commercial paper outstanding, which effectively reduced the $3.5 billion available capacity under our revolving credit facilities to $2.72 billion . At December 31, 2018 , we also had $237 million available for borrowings under our international and other domestic credit facilities. Long-term Debt December 31, In millions 2018 2017 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 Other debt 64 76 Unamortized discount (52 ) (54 ) Fair value adjustments due to hedge on indebtedness 25 35 Capital leases 132 121 Total long-term debt 1,642 1,651 Less: Current maturities of long-term debt 45 63 Long-term debt $ 1,597 $ 1,588 Principal payments required on long-term debt during the next five years are as follows: In millions 2019 2020 2021 2022 2023 Principal payments $ 45 $ 13 $ 39 $ 9 $ 506 Interest on the $500 million aggregate principal amount of 3.65% senior unsecured notes due in 2023 and the $500 million aggregate principal amount of 4.875% senior unsecured notes due in 2043 pay interest semi-annually on April 1 and October 1 of each year. Interest on the 6.75% debentures is payable on February 15 and August 15 of each year. Interest on the $250 million 7.125% debentures and $165 million 5.65% debentures is payable on March 1 and September 1 of each year. The debentures are unsecured and are not subject to any sinking fund requirements. We can redeem the 7.125% debentures and the 5.65% debentures at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture holders are not penalized by the early redemption. Our debt agreements contain several restrictive covenants. The most restrictive of these covenants applies to our revolving credit facility which will upon default, among other things, limit our ability to incur additional debt or issue preferred stock, enter into sale-leaseback transactions, sell or create liens on our assets, make investments and merge or consolidate with any other entity. In addition, we are subject to a maximum debt-to-EBITDA ratio financial covenant. At December 31, 2018 , we were in compliance with all of the covenants under our borrowing agreements. Shelf Registration As a well-known seasoned issuer, we filed an automatic shelf registration for an undetermined amount of debt and equity securities with the SEC on February 16, 2016. Under this shelf registration we may offer, from time to time, debt securities, common stock, preferred and preference stock, depositary shares, warrants, stock purchase contracts and stock purchase units. Our current shelf is scheduled to expire in February 2019. Interest Expense For the years ended December 31, 2018 , 2017 and 2016 , total interest incurred was $116 million , $85 million and $75 million , respectively, and interest capitalized was $2 million , $4 million and $6 million , respectively. Interest Rate Risk We have a series of interest rate swaps to effectively convert our September 2013, $500 million debt issue, due in 2023, from a fixed rate of 3.65 percent to a floating rate equal to the one-month LIBOR plus a spread. The terms of the swaps mirror those of the debt, with interest paid semi-annually. The swaps were designated, and will be accounted for, as fair value hedges under GAAP. The gain or loss on these derivative instruments, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current income as “Interest expense.” The net swap settlements that accrue each period are also reported in “Interest expense.” The following table summarizes these gains and losses for the years presented below: Years ended December 31, In millions 2018 2017 2016 Income Statement Classification Gain/(Loss) on Swaps Gain/(Loss) on Borrowings Gain/(Loss) on Swaps Gain/(Loss) on Borrowings Gain/(Loss) on Gain/(Loss) on Interest expense (1) $ (8 ) $ 7 $ (7 ) $ 8 $ (8 ) $ 12 ___________________________________________________________ (1) The difference between the gain/(loss) on swaps and borrowings represents hedge ineffectiveness. 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 values and carrying values of total debt, including current maturities, were as follows: December 31, In millions 2018 2017 Fair values of total debt (1) $ 2,679 $ 2,301 Carrying values of total debt 2,476 2,006 ___________________________________________ (1) The fair value of debt is derived from Level 2 inputs.

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	12 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefits Disclosure	NOTE 11. PENSIONS AND OTHER POSTRETIREMENT BENEFITS Pension Plans We sponsor several pension plans covering substantially all employees. Generally, pension benefits for salaried employees are determined as a function of employee’s compensation. Pension benefits for most hourly employees are determined similarly and as a function of employee’s compensation, with the exception of a small group of hourly employees whose pension benefits were grandfathered in accordance with agreements with their union representation and are based on their years of service and compensation during active employment. The level of benefits and terms of vesting may vary among plans and are offered in accordance with applicable laws. Pension plans assets are administered by trustees and are principally invested in fixed income security and equity securities. It is our policy to make contributions to our various qualified plans in accordance with statutory and contractual funding requirements, and any additional contributions we determine are appropriate. Obligations, Assets and Funded Status Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for our pension plans. The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at the beginning of the year $ 2,765 $ 2,661 $ 1,662 $ 1,451 Service cost 120 107 29 26 Interest cost 98 106 41 40 Actuarial (gain) loss (212 ) 61 (46 ) 53 Benefits paid from fund (193 ) (155 ) (62 ) (54 ) Benefits paid directly by employer (16 ) (15 ) — — Plan amendment — — 15 (1) — Exchange rate changes — — (89 ) 146 Benefit obligation at end of year $ 2,562 $ 2,765 $ 1,550 $ 1,662 Change in plan assets Fair value of plan assets at beginning of year $ 3,166 $ 2,751 $ 1,960 $ 1,753 Actual return on plan assets (36 ) 351 (33 ) 78 Employer contributions — 219 21 9 Benefits paid (193 ) (155 ) (62 ) (54 ) Exchange rate changes — — (104 ) 174 Fair value of plan assets at end of year $ 2,937 $ 3,166 $ 1,782 $ 1,960 Funded status (including unfunded plans) at end of year $ 375 $ 401 $ 232 $ 298 Amounts recognized in consolidated balance sheets Pension assets - long-term $ 697 $ 745 $ 232 $ 298 Accrued compensation, benefits and retirement costs - current liabilities (14 ) (14 ) — — Pensions - long-term liabilities (308 ) (330 ) — — Net amount recognized $ 375 $ 401 $ 232 $ 298 Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ 635 $ 649 $ 230 $ 207 Prior service cost 8 8 16 — Net amount recognized $ 643 $ 657 $ 246 $ 207 ___________________________________________________________ (1) Guaranteed minimum pension benefits to equalize certain pension benefits between men and women per the United Kingdom court decision. In addition to the pension plans in the above table, we also maintain less significant defined benefit pension plans in 14 other countries outside of the U.S. and the U.K. that comprise approximately 4 percent and 5 percent of our pension plan assets and obligations , respectively, at December 31, 2018 . These plans are reflected in "Other liabilities" on our Consolidated Balance Sheets . In 2018 and 2017 , we made $11 million and $11 million of contributions to these plans, respectively. The following table presents information regarding total accumulated benefit obligation (ABO), the ABO and fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets and the PBO and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2018 2017 2018 2017 Total accumulated benefit obligation $ 2,544 $ 2,745 $ 1,473 $ 1,569 Plans with accumulated benefit obligation in excess of plan assets Accumulated benefit obligation 304 323 — — Plans with projected benefit obligation in excess of plan assets Projected benefit obligation 322 344 — — Components of Net Periodic Pension Cost The following table presents the net periodic pension cost under our plans for the years ended December 31: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2018 2017 2016 2018 2017 2016 Service cost $ 120 $ 107 $ 90 $ 29 $ 26 $ 21 Interest cost 98 106 109 41 40 50 Expected return on plan assets (196 ) (204 ) (201 ) (69 ) (70 ) (71 ) Amortization of prior service cost 1 — — — — — Recognized net actuarial loss 33 37 29 29 40 15 Net periodic pension cost $ 56 $ 46 $ 27 $ 30 $ 36 $ 15 Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows: In millions 2018 2017 2016 Recognized net actuarial loss $ (62 ) $ (77 ) $ (44 ) Incurred actuarial loss (gain) 91 (40 ) 107 Foreign exchange translation adjustments (5 ) 30 (28 ) Total recognized in other comprehensive loss (income) $ 24 $ (87 ) $ 35 Total recognized in net periodic pension cost and other comprehensive loss (income) $ 110 $ (5 ) $ 77 Assumptions The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2018 2017 2018 2017 Discount rate 4.36 % 3.66 % 2.80 % 2.55 % Cash balance crediting rate 4.03 % 4.27 % — — Compensation increase rate 3.00 % 2.99 % 3.75 % 3.75 % The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2018 2017 2016 2018 2017 2016 Discount rate 3.66 % 4.12 % 4.47 % 2.55 % 2.70 % 3.95 % Expected return on plan assets 6.50 % 7.25 % 7.50 % 4.00 % 4.50 % 4.70 % Compensation increase rate 3.00 % 4.87 % 4.87 % 3.75 % 3.75 % 3.75 % Plan Assets Our investment policies in the U.S. and U.K. provide for the rebalancing of assets to maintain our long-term strategic asset allocation. We are committed to this long-term strategy and do not attempt to time the market given empirical evidence that asset allocation is more critical than individual asset or investment manager selection. Rebalancing of the assets has and continues to occur. The rebalancing is critical to having the proper weighting of assets to achieve the expected total portfolio returns. We believe that our portfolio is highly diversified and does not have any significant exposure to concentration risk. The plan assets for our defined benefit pension plans do not include any of our common stock. U.S. Plan Assets For the U.S. qualified pension plans, our assumption for the expected return on assets was 6.5 percent in 2018 . Projected returns are based primarily on broad, publicly traded equity and fixed income indices and forward-looking estimates of active portfolio and investment management. We expect additional positive returns from this active investment management. Based on the historical returns and forward-looking return expectations in a rising interest rate environment, we have elected to reduce our assumption to 6.25 percent in 2019 . The primary investment objective is to exceed, on a net-of-fee basis, the rate of return of a policy portfolio comprised of the following: Asset Class Target Range U.S. equities 7.0 % +5.0/ -5.0% Non-U.S. equities 2.0 % +3.0/ -2.0% Global equities 6.0 % +3.0/ -3.0% Total equities 15.0 % Real estate 6.5 % +3.5/ -6.5% Private equity/venture capital 6.5 % +3.5/ -6.5% Opportunistic credit 4.0 % +6.0/ -4.0% Fixed income 68.0 % +5.0/ -5.0% Total 100.0 % The fixed income component is structured to represent a custom bond benchmark that will closely hedge the change in the value of our liabilities. This component is structured in such a way that its benchmark covers approximately 100 percent of the plan's exposure to changes in its discount rate (AA corporate bond yields). In order to achieve a hedge on more than the targeted 68 percent of plan assets invested in fixed income securities, our Benefits Policy Committee (BPC) permits the fixed income managers, other managers or the custodian/trustee to utilize derivative securities, as part of a liability driven investment strategy to further reduce the plan's risk of declining interest rates. However, all managers hired to manage assets for the trust are prohibited from using leverage unless specifically discussed with the BPC and approved in their guidelines. U.K. Plan Assets For the U.K. qualified pension plans, our assumption for the expected return on assets was 4.0 percent in 2018 . The methodology used to determine the rate of return on pension plan assets in the U.K. was based on establishing an equity-risk premium over current long-term bond yields adjusted based on target asset allocations. Our strategy with respect to our investments in these assets is to be invested in a suitable mixture of return-seeking assets such as equities, real estate and liability matching assets such as group annuity insurance contracts and duration matched bonds. Therefore, the risk and return balance of our U.K. asset portfolio should reflect a long-term horizon. To achieve these objectives we have established the following targets: Asset Class Target Global equities 23.0 % Real estate/private markets 5.0 % Reinsurance 8.0 % Corporate credit instruments 7.5 % Fixed income 56.5 % Total 100.0 % As part of our strategy in the U.K. we have not prohibited the use of any financial instrument, including derivatives. As in the U.S. plan, derivatives may be used to better match liability duration and are not used in a speculative way. The 56.5 percent fixed income component is structured in a way that covers approximately 80 percent of the plan's exposure to changes in its discount rate. Based on the above discussion, we have elected an assumption of 4.0 percent in 2019 . Fair Value of U.S. Plan Assets The fair values of U.S. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2018 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 77 $ — $ — $ 77 Non-U.S. 42 — — 42 Fixed income Government debt — 38 — 38 Corporate debt U.S. — 323 — 323 Non-U.S. — 15 — 15 Asset/mortgaged backed securities — 5 — 5 Net cash equivalents (1) 175 17 — 192 Private equity and real estate (3) — — 316 316 Net plan assets subject to leveling $ 294 $ 398 $ 316 $ 1,008 Pending trade/purchases/sales 9 Accruals (4) 5 Investments measured at net asset value 1,915 Net plan assets $ 2,937 Fair Value Measurements at December 31, 2017 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 102 $ — $ — $ 102 Non-U.S. 56 — — 56 Fixed income Government debt — 691 — 691 Corporate debt U.S. — 590 — 590 Non-U.S. — 73 — 73 Asset/mortgage backed securities — 78 — 78 Net cash equivalents (1) 50 25 — 75 Derivative instruments (2) — 3 — 3 Private equity and real estate (3) — — 246 246 Net plan assets subject to leveling $ 208 $ 1,460 $ 246 $ 1,914 Pending trade/purchases/sales (96 ) Accruals (4) 12 Investments measured at net asset value 1,336 Net plan assets $ 3,166 ____________________________________________________ (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) Derivative instruments include interest rate swaps and credit default swaps. (3) The instruments in private equity and real estate, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. (4) Accruals include interest or dividends that were not settled at December 31. Certain of our assets are valued based on their respective net asset value (NAV) (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows: • U.S. and Non-U.S. Equities ( $343 million and $428 million at December 31, 2018 and 2017 , respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Government Debt ( $602 million and $347 million at December 31, 2018 and 2017 , respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • U.S. and Non-U.S. Corporate Debt ( $821 million and $321 million at December 31, 2018 and 2017 , respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Real Estate ( $147 million and $137 million at December 31, 2018 and 2017 , respectively) - This asset type represents different types of real estate including development property, industrial property, individual mortgages, office property, property investment companies and retail property. These funds are valued using NAVs and allow quarterly or more frequent redemptions. • Asset/Mortgage Backed Securities ( $2 million and $103 million at December 31, 2018 and 2017 , respectively) - This asset type represents investments in fixed- and floating-rate loans. These funds are valued using NAVs and allow quarterly or more frequent redemptions. The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Private Equity Real Estate Total Balance at December 31, 2016 $ 148 $ 64 $ 212 Actual return on plan assets Unrealized gains on assets still held at the reporting date 24 5 29 Purchases, sales and settlements, net 8 (3 ) 5 Balance at December 31, 2017 180 66 246 Actual return on plan assets Unrealized gains on assets still held at the reporting date 33 6 39 Purchases, sales and settlements, net 34 (3 ) 31 Balance at December 31, 2018 $ 247 $ 69 $ 316 Fair Value of U.K. Plan Assets In July 2012, the U.K. pension plan purchased an insurance contract that will guarantee payment of specified pension liabilities. The contract defers payment for 10 years and is included in the table below in Level 3 for years ended December 31, 2018 and 2017 at a value of $442 million and $477 million , respectively. The fair values of U.K. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2018 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ — $ 47 $ — $ 47 Non-U.S. — 61 — 61 Fixed income Net cash equivalents (1) 12 — — 12 Private equity, real estate and insurance (2) — — 686 686 Net plan assets subject to leveling $ 12 $ 108 $ 686 $ 806 Investments measured at net asset value 976 Net plan assets $ 1,782 Fair Value Measurements at December 31, 2017 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ — $ 63 $ — $ 63 Non-U.S. — 91 — 91 Fixed income Net cash equivalents (1) 29 — — 29 Private equity, real estate and insurance (2) — — 671 671 Net plan assets subject to leveling $ 29 $ 154 $ 671 $ 854 Investments measured at net asset value 1,106 Net plan assets $ 1,960 _____________________________________________________ (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private equity, real estate and insurance funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds. Certain of our assets are valued based on their respective NAV (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows: • U.S. and Non-U.S. Corporate Debt ( $753 million and $822 million at December 31, 2018 and 2017 , respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • U.S. and Non-U.S. Equities ( $100 million and $144 million at December 31, 2018 and 2017 , respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Re-insurance ( $77 million and $86 million at December 31, 2018 and 2017 , respectively) - This commingled fund has a NAV that is determined on a monthly basis and the investment may be sold at that value. • Managed Futures Funds ( $46 million and $54 million at December 31, 2018 and 2017 , respectively) - These commingled funds invest in commodities, fixed income and equity securities. They have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Insurance Real Estate Private Equity Total Balance at December 31, 2016 $ 439 $ 57 $ 117 $ 613 Actual return on plan assets Unrealized gains on assets still held at the reporting date 38 10 28 76 Purchases, sales and settlements, net — (8 ) (10 ) (18 ) Balance at December 31, 2017 477 59 135 671 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (35 ) (2 ) 21 (16 ) Purchases, sales and settlements, net — — 31 31 Balance at December 31, 2018 $ 442 $ 57 $ 187 $ 686 Level 3 Assets The investments in an insurance contract, venture capital, private equity, opportunistic credit and real estate funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by quarterly financial statements of the funds. These financial statements are audited at least annually. In conjunction with our investment consultant, we monitor the fair value of the insurance contract as periodically reported by our insurer and their counterparty risk. The fair value of all real estate properties, held in the partnerships, are valued at least once per year by an independent professional real estate valuation firm. Fair value generally represents the fund's proportionate share of the net assets of the investment partnerships as reported by the general partners of the underlying partnerships. Some securities with no readily available market are initially valued at cost, utilizing independent professional valuation firms as well as market comparisons with subsequent adjustments to values which reflect either the basis of meaningful third-party transactions in the private market or the fair value deemed appropriate by the general partners of the underlying investment partnerships. In such instances, consideration is also given to the financial condition and operating results of the issuer, the amount that the investment partnerships can reasonably expect to realize upon the sale of the securities and any other factors deemed relevant. The estimated fair values are subject to uncertainty and therefore may differ from the values that would have been used had a ready market for such investments existed and such differences could be material. Estimated Future Contributions and Benefit Payments We plan to contribute approximately $123 million to our defined benefit pension plans in 2019 . The table below presents expected future benefit payments under our pension plans: Qualified and Non-Qualified Pension Plans In millions 2019 2020 2021 2022 2023 2024 - 2028 Expected benefit payments $ 244 $ 246 $ 250 $ 257 $ 259 $ 1,342 Other Pension Plans We also sponsor defined contribution plans for certain hourly and salaried employees. Our contributions to these plans were $104 million , $84 million and $68 million for the years ended December 31, 2018 , 2017 and 2016 . Other Postretirement Benefits Our other postretirement benefit (OPEB) plans provide various health care and life insurance benefits to eligible employees, who retire and satisfy certain age and service requirements, and their dependents. The plans are contributory and contain cost-sharing features such as caps, deductibles, coinsurance and spousal contributions. Employer contributions are limited by formulas in each plan. Retiree contributions for health care benefits are adjusted annually, and we reserve the right to change benefits covered under these plans. There were no plan assets for OPEB plans as our policy is to fund benefits and expenses for these plans as claims and premiums are incurred. Obligations and Funded Status Benefit obligation balances presented below reflect the accumulated postretirement benefit obligations (APBO) for our OPEB plans. The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows: December 31, In millions 2018 2017 Change in benefit obligation Benefit obligation at the beginning of the year $ 318 $ 364 Interest cost 11 14 Plan participants' contributions 21 24 Actuarial gain (51 ) (35 ) Benefits paid directly by employer (53 ) (49 ) Benefit obligation at end of year $ 246 $ 318 Funded status at end of year $ (246 ) $ (318 ) Amounts recognized in consolidated balance sheets Accrued compensation, benefits and retirement costs - current liabilities $ (22 ) $ (29 ) Postretirement benefits other than pensions-long-term liabilities (224 ) (289 ) Net amount recognized $ (246 ) $ (318 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial (gain) loss $ (24 ) $ 27 Prior service credit (4 ) (4 ) Net amount recognized $ (28 ) $ 23 In addition to the OPEB plans in the above table, we also maintain less significant OPEB plans in four other countries outside the U.S. that comprise approximately 9 percent and 6 percent of our OPEB obligations at December 31, 2018 and 2017 , respectively. These plans are reflected in "Other liabilities" in our Consolidated Balance Sheets . Components of Net Periodic Other Postretirement Benefits Cost The following table presents the net periodic OPEB cost under our plans: Years ended December 31, In millions 2018 2017 2016 Interest cost $ 11 $ 14 $ 16 Recognized net actuarial loss — 6 5 Net periodic other postretirement benefit cost $ 11 $ 20 $ 21 Other changes in benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 were as follows: Years ended December 31, In millions 2018 2017 2016 Recognized net actuarial loss $ — $ (6 ) $ (6 ) Incurred actuarial (gain) loss (51 ) (35 ) 9 Total recognized in other comprehensive (income) loss $ (51 ) $ (41 ) $ 3 Total recognized in net periodic other postretirement benefit cost and other comprehensive (income) loss $ (40 ) $ (21 ) $ 24 Assumptions The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows: 2018 2017 Discount rate 4.25 % 3.55 % The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows: 2018 2017 2016 Discount rate 3.55 % 4.00 % 4.35 % Our consolidated OPEB obligation is determined by application of the terms of health care and life insurance plans, together with relevant actuarial assumptions and health care cost trend rates. For measurement purposes, a 7.63 percent annual rate of increase in the per capita cost of covered health care benefits was assumed in 2018 . The rate is assumed to decrease on a linear basis to 5.0 percent through 2026 and remain at that level thereafter. Estimated Benefit Payments The table below presents expected benefit payments under our OPEB plans: In millions 2019 2020 2021 2022 2023 2024 - 2028 Expected benefit payments $ 24 $ 23 $ 22 $ 22 $ 21 $ 90

OTHER LIABILITIES AND DEFERRED

OTHER LIABILITIES AND DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
OTHER LIABILITIES AND DEFERRED REVENUE	NOTE 12. OTHER ACCRUED EXPENSES AND OTHER LIABILITIES Other accrued expenses included the following: December 31, In millions 2018 2017 Marketing accruals $ 199 $ 146 Other taxes payable 196 197 Income taxes payable 97 77 Other 360 495 Other accrued expenses $ 852 $ 915 Other liabilities included the following: December 31, In millions 2018 2017 Income tax payable (1) $ 293 $ 281 Deferred income taxes 263 391 Accrued compensation 173 151 Other long-term liabilities 163 134 Other liabilities $ 892 $ 957 ____________________________________________________ (1) Long-term income taxes payable are the result of Tax Legislation and relate to the non-current portion of the one-time transition tax on accumulated foreign earnings. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. 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; product recalls; 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 pursuant to GAAP 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. Guarantees and Commitments Periodically, we enter into guarantee arrangements, including guarantees of non-U.S. distributor financings, residual value guarantees on equipment under operating leases and other miscellaneous guarantees of joint ventures or third-party obligations. At December 31, 2018, the maximum potential loss related to these guarantees was $52 million . We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At December 31, 2018, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $65 million . Most of these arrangements enable us to secure critical components. We do not currently anticipate paying any penalties under these contracts. We enter into physical forward contracts with suppliers of platinum and palladium to purchase certain volumes of the commodities at contractually stated prices for various periods, which generally fall within two years . At December 31, 2018, the total commitments under these contracts were $70 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 $110 million at December 31, 2018 . 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 counterparty 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. Leases We lease certain manufacturing equipment, facilities, warehouses, office space and equipment, aircraft and automobiles for varying periods under lease agreements. Most of the leases are non-cancelable operating leases with fixed rental payments, expire over the next 10 years and contain renewal provisions. Rent expense under these leases was as follows: Years ended December 31, In millions 2018 2017 2016 Rent expense $ 217 $ 215 $ 210 The following is a summary of the leased property under capital leases by major classes: December 31, In millions 2018 2017 Building $ 180 $ 158 Equipment 92 94 Land 15 16 Less: Accumulated depreciation (152 ) (137 ) Total $ 135 $ 131 Following is a summary of the future minimum lease payments due under capital and operating leases with terms of more than one year at December 31, 2018 , together with the net present value of the minimum payments due under capital leases: In millions Capital Leases Operating Leases 2019 $ 30 $ 138 2020 21 109 2021 16 81 2022 14 60 2023 13 39 After 2023 144 81 Total minimum lease payments $ 238 $ 508 Interest (106 ) Present value of net minimum lease payments $ 132

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 14. SHAREHOLDERS' EQUITY Preferred and Preference Stock We are authorized to issue one million shares each of zero par value preferred and preference stock with preferred shares being senior to preference shares. We can determine the number of shares of each series, and the rights, preferences and limitations of each series. At December 31, 2018 , there was no preferred or preference stock outstanding. Common Stock Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans were as follows: In millions Common Treasury Common Stock Balance at December 31, 2015 222.4 47.2 0.9 Shares acquired — 7.3 — Shares issued — (0.3 ) (0.2 ) Balance at December 31, 2016 222.4 54.2 0.7 Shares acquired — 2.9 — Shares issued — (0.4 ) (0.2 ) Balance at December 31, 2017 222.4 56.7 0.5 Shares acquired — 7.9 — Shares issued — (0.2 ) (0.1 ) Balance at December 31, 2018 222.4 64.4 0.4 Treasury Stock Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of shareholders' equity in our Consolidated Balance Sheets . Treasury shares may be reissued as part of our stock-based compensation programs. When shares are reissued, we use the weighted-average cost method for determining cost. The gains between the cost of the shares and the issuance price are added to additional paid-in-capital. The losses are deducted from additional paid-in capital to the extent of the gains. Thereafter, the losses are deducted from retained earnings. Treasury stock activity for the three-year period ended December 31, 2018 , consisting of shares issued and repurchased is presented in our Consolidated Statements of Changes in Equity . In October 2018, our Board of Directors authorized the acquisition of up to $2 billion of additional common stock upon completion of the 2016 repurchase plan. In December 2016, our Board of Directors authorized the acquisition of up to $1 billion of additional common stock upon completion of the 2015 repurchase plan. For the year ended December 31, 2018, we made the following purchases under our stock repurchase programs: In millions (except per share amounts) For each quarter ended 2018 Shares Purchased Average Cost Per Share Total Cost of Repurchases Cash Paid for Shares Not Received Remaining Authorized Capacity (1) November 2015, $1 billion repurchase program April 1 0.3 $ 166.79 $ 46 $ — $ — December 2016, $1 billion repurchase program April 1 0.7 $ 164.48 $ 117 $ 883 July 1 1.5 143.69 216 667 September 30 2.8 143.58 400 100 167 December 31 1.9 139.67 267 (100 ) — Subtotal 6.9 144.68 1,000 — — October 2018, $2 billion repurchase program December 31 0.7 $ 139.85 $ 94 $ 1,906 Total 7.9 $ 145.05 $ 1,140 $ — ___________________________________________ (1) The remaining authorized capacity under these plans was calculated based on the cost to purchase the shares but excludes commission expenses in accordance with the authorized plan. In 2018, we entered into an accelerated share repurchase agreement with Goldman, Sachs & Co. LLC to repurchase $500 million of our common stock under our previously announced share repurchase plans and received 3.5 million shares at an average price of $144.02 per share. In 2016, we entered into an accelerated share repurchase agreement with Goldman, Sachs & Co. LLC to repurchase $500 million of our common stock under our previously announced share repurchase plans and received 4.7 million shares at an average price of $105.50 per share. We repurchased $1,140 million , $451 million and $778 million of our common stock in the years ended December 31, 2018 , 2017 and 2016 , respectively. Quarterly Dividends Total dividends paid to common shareholders in 2018 , 2017 and 2016 were $718 million , $701 million and $676 million , respectively. Declaration and payment of dividends in the future depends upon our income and liquidity position, among other factors, and is subject to declaration by our Board of Directors, who meet quarterly to consider our dividend payment. We expect to fund dividend payments with cash from operations. In July 2018 , the Board of Directors authorized an increase to our quarterly dividend of 5.6 percent from $1.08 per share to $1.14 . In July 2017 , the Board of Directors authorized a 5.4 percent increase to our quarterly cash dividend on our common stock from $1.025 per share to $1.08 per share. In July 2016 , the Board of Directors approved a 5.1 percent increase to our quarterly dividend on our common stock from $0.975 per share to $1.025 per share. Cash dividends per share paid to common shareholders for the last three years were as follows: Quarterly Dividends 2018 2017 2016 First quarter $ 1.08 $ 1.025 $ 0.975 Second quarter 1.08 1.025 0.975 Third quarter 1.14 1.08 1.025 Fourth quarter 1.14 1.08 1.025 Total $ 4.44 $ 4.21 $ 4.00 Employee Benefits Trust In 1997, we established the Employee Benefits Trust (EBT) funded with common stock for use in meeting our future obligations under employee benefit and compensation plans. The primary sources of cash for the EBT are dividends received on unallocated shares of our common stock held by the EBT. Shares of Cummins stock and cash in the EBT may be used to fund the accounts of participants in the Cummins Retirement and Savings Plan who have elected to receive company matching funds in Cummins stock. In addition, we may direct the trustee to sell shares in the EBT on the open market and sweep cash from the EBT to fund other employee benefit plans. Matching contributions charged to income for the years ended December 31, 2018 , 2017 and 2016 were $12 million , $17 million and $23 million

OTHER COMPREHENSIVE INCOME (LOS

OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 15. ACCUMULATED OTHER COMPREHENSIVE LOSS Following are the changes in accumulated other comprehensive income (loss) by component: In millions Change in pensions and other postretirement defined benefit plans Foreign currency translation adjustment Unrealized gain (loss) on marketable securities (1) Unrealized gain (loss) on derivatives Total attributable to Cummins Inc. Noncontrolling interests Total Balance at December 31, 2015 $ (654 ) $ (696 ) $ (2 ) $ 4 $ (1,348 ) Other comprehensive income before reclassifications Before tax amount (111 ) (469 ) 1 (38 ) (617 ) $ (17 ) $ (634 ) Tax benefit 44 38 — 6 88 — 88 After tax amount (67 ) (431 ) 1 (32 ) (529 ) (17 ) (546 ) Amounts reclassified from accumulated other comprehensive income (2) 36 — — 20 56 — 56 Net current period other comprehensive income (loss) (31 ) (431 ) 1 (12 ) (473 ) $ (17 ) $ (490 ) Balance at December 31, 2016 $ (685 ) $ (1,127 ) $ (1 ) $ (8 ) $ (1,821 ) Other comprehensive income before reclassifications Before tax amount 73 335 2 (12 ) 398 $ 20 $ 418 Tax benefit (expense) (36 ) (20 ) — 5 (51 ) — (51 ) After tax amount 37 315 2 (7 ) 347 20 367 Amounts reclassified from accumulated other comprehensive income (2) 62 — — 12 74 — 74 Impact of tax legislation (Note 4) (103 ) (3) — — — (103 ) — (103 ) Net current period other comprehensive income (loss) (4 ) 315 2 5 318 $ 20 $ 338 Balance at December 31, 2017 $ (689 ) $ (812 ) $ 1 $ (3 ) $ (1,503 ) Other comprehensive income before reclassifications Before tax amount (42 ) (333 ) 2 21 (352 ) $ (30 ) $ (382 ) Tax benefit (expense) 7 7 — (7 ) 7 — 7 After tax amount (35 ) (326 ) 2 14 (345 ) (30 ) (375 ) Amounts reclassified from accumulated other comprehensive income (2) 53 — (3 ) (9 ) 41 1 42 Net current period other comprehensive income (loss) 18 (326 ) (1 ) 5 (304 ) $ (29 ) $ (333 ) Balance at December 31, 2018 $ (671 ) $ (1,138 ) $ — $ 2 $ (1,807 ) _______________________________________________________________________ (1) Effective January 1, 2018 and forward, unrealized gains and losses, net of tax for equity securities are reported in "Other income, net" on the Consolidated Statements of Income instead of comprehensive income. Unrealized gains and losses for debt securities will continue to be reported in comprehensive income. See NOTE 1 , " SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ," " RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS " section for additional information. (2) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. (3) Impact of tax legislation includes $(126) million related to Tax Legislation and $23 million related to 2017 activity. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information .

STOCK INCENTIVE AND STOCK OPTIO

STOCK INCENTIVE AND STOCK OPTION PLANS	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK INCENTIVE AND STOCK OPTION PLANS	NOTE 16. STOCK INCENTIVE AND STOCK OPTION PLANS In May of 2017 the Board of Directors approved an amendment to the shareholder approved stock incentive plan (the Plan) to increase the number of available shares. The revised Plan allows for the granting of up to 8.5 million total shares of equity awards to executives, employees and non-employee directors. Awards available for grant under the Plan include, but are not limited to, stock options, stock appreciation rights, performance shares and other stock awards. Shares issued under the Plan may be newly issued shares or reissued treasury shares. Stock options are generally granted with a strike price equal to the fair market value of the stock on the date of grant and a life of 10 years. Stock options granted have a three-year vesting period. The strike price may be higher than the fair value of the stock on the date of the grant, but cannot be lower. Compensation expense is recorded on a straight-line basis over the vesting period beginning on the grant date. The compensation expense is based on the fair value of each option grant using the Black-Scholes option pricing model. Options granted to employees eligible for retirement under our retirement plan are fully expensed at the grant date. Stock options are also awarded through the Key Employee Stock Investment Plan (KESIP) which allows certain employees, other than officers, to purchase shares of common stock on an installment basis up to an established credit limit. For every even block of 100 KESIP shares purchased by the employee 50 stock options are granted. The options granted through the KESIP program are considered awards under the Plan and are vested immediately. Compensation expense for stock options granted through the KESIP program is recorded based on the fair value of each option grant using the Black-Scholes option pricing model. Performance shares are granted as target awards and are earned based on certain measures of our operating performance. A payout factor has been established ranging from 0 to 200 percent of the target award based on our actual performance during the three-year performance period. The fair value of the award is equal to the average market price, adjusted for the present value of dividends over the vesting period, of our stock on the grant date. Compensation expense is recorded ratably over the period beginning on the grant date until the shares become unrestricted and is based on the amount of the award that is expected to be earned under the plan formula, adjusted each reporting period based on current information. Restricted common stock is awarded from time to time at no cost to certain employees. Participants are entitled to cash dividends and voting rights. Restrictions limit the sale or transfer of the shares during a defined period. Generally, one-third of the shares become vested and free from restrictions after two years and one-third of the shares issued become vested and free from restrictions each year thereafter on the anniversary of the grant date, provided the participant remains an employee. The fair value of the award is equal to the average market price of our stock on the grant date. Compensation expense is determined at the grant date and is recognized over the restriction period on a straight-line basis. Employee compensation expense (net of estimated forfeitures) related to our share-based plans for the years ended December 31, 2018, 2017 and 2016, was approximately $52 million , $39 million and $31 million , respectively. In addition, non-employee director share-based compensation expense for the years ended December 31, 2018 , 2017 and 2016 , was approximately $1 million , $2 million and $1 million , respectively. Shares granted to non-employee directors vest immediately and have no restrictions or performance conditions. The excess tax benefit associated with our employee share-based plans for the years ended December 31, 2018 , 2017 and 2016 , was $2 million , $2 million and $1 million , respectively. The total unrecognized compensation expense (net of estimated forfeitures) related to nonvested awards for our employee share-based plans was approximately $46 million at December 31, 2018 and is expected to be recognized over a weighted-average period of less than two years . The tables below summarize the employee share-based activity in the Plan: Options Weighted-average Exercise Price Weighted-average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in millions) Balance at December 31, 2015 2,029,686 $ 115.02 Granted 984,430 109.24 Exercised (215,890 ) 87.27 Forfeited (63,462 ) 119.56 Balance at December 31, 2016 2,734,764 115.02 Granted 648,900 149.98 Exercised (355,479 ) 105.91 Forfeited (126,816 ) 125.65 Balance at December 31, 2017 2,901,369 123.49 Granted 515,320 159.06 Exercised (140,133 ) 88.74 Forfeited (32,894 ) 133.00 Balance at December 31, 2018 3,243,662 $ 130.55 6.7 $ 37 Exercisable, December 31, 2016 1,149,549 $ 104.19 4.8 $ 38 Exercisable, December 31, 2017 1,063,889 $ 115.26 4.7 $ 66 Exercisable, December 31, 2018 1,366,722 $ 124.97 4.7 $ 18 The weighted-average grant date fair value of options granted during the years ended December 31, 2018 , 2017 and 2016 , was $34.21 , $36.86 and $25.28 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2018 , 2017 and 2016 , was approximately $9 million , $19 million and $9 million , respectively. The weighted-average grant date fair value of performance and restricted shares was as follows: Performance Shares Restricted Shares Nonvested Shares Weighted-average Shares Weighted-average Balance at December 31, 2015 420,369 $ 123.88 4,254 $ 111.40 Granted 169,150 98.26 8,089 117.69 Vested (115,680 ) 106.55 (2,502 ) 114.57 Forfeited (69,345 ) 110.52 — — Balance at December 31, 2016 404,494 120.41 9,841 115.76 Granted 150,225 138.23 — — Vested (85,020 ) 141.50 (1,752 ) 106.89 Forfeited (58,460 ) 132.52 — — Balance at December 31, 2017 411,239 120.84 8,089 117.68 Granted 124,700 146.50 — — Vested (80,996 ) 128.47 (2,696 ) 117.68 Forfeited (44,593 ) 127.90 — — Balance at December 31, 2018 410,350 $ 126.36 5,393 $ 117.68 The total vesting date fair value of performance shares vested during the years ended December 31, 2018 , 2017 and 2016 was $13 million , $13 million and $12 million , respectively. The total fair value of restricted shares vested was less than $1 million , $1 million and $1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: 2018 2017 2016 Expected life (years) 6 6 5 Risk-free interest rate 2.72 % 2.08 % 1.34 % Expected volatility 25.40 % 29.97 % 30.96 % Dividend yield 2.48 % 2.28 % 2.10 % Expected life —The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding based upon our historical data. Risk-free interest rate —The risk-free interest rate assumption is based upon the observed U.S. treasury security rate appropriate for the expected life of our employee stock options. Expected volatility —The expected volatility assumption is based upon the weighted-average historical daily price changes of our common stock over the most recent period equal to the expected option life of the grant, adjusted for activity which is not expected to occur in the future. Dividend yield

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS	12 Months Ended
	Dec. 31, 2018
Noncontrolling Interest [Abstract]
NONCONTROLLING INTERESTS	NOTE 17 . NONCONTROLLING INTERESTS Noncontrolling interests in the equity of consolidated subsidiaries were as follows: December 31, In millions 2018 2017 Eaton Cummins Automated Transmission Technologies (1) $ 602 $ 609 Cummins India Ltd. (2) 293 280 Other 16 16 Total $ 911 $ 905 ____________________________________________________ (1) See Note 19 , " ACQUISITIONS ," for additional information. (2) Noncontrolling interest for Cummins India Ltd. increased $24 million and decreased $43 million in 2018 and 2017, respectively, primarily due to withholding taxes on foreign earnings as a result of Tax Legislation. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information .

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 18. EARNINGS PER SHARE We calculate basic earnings per share (EPS) of common stock by dividing net income attributable to Cummins Inc. by the weighted-average number of common shares outstanding for the period. The calculation of diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. We exclude shares of common stock held in the Employee Benefits Trust (EBT) (see Note 14 , " SHAREHOLDERS' EQUITY ") from the calculation of the weighted-average common shares outstanding until those shares are distributed from the EBT to the Retirement Savings Plan. Following are the computations for basic and diluted earnings per share: Years ended December 31, Dollars in millions, except per share amounts 2018 2017 2016 Net income attributable to Cummins Inc. $ 2,141 $ 999 $ 1,394 Weighted-average common shares outstanding Basic 162,172,831 166,625,320 169,038,410 Dilutive effect of stock compensation awards 600,516 645,545 298,206 Diluted 162,773,347 167,270,865 169,336,616 Earnings per common share attributable to Cummins Inc. Basic $ 13.20 $ 5.99 $ 8.25 Diluted 13.15 5.97 8.23 The weighted-average diluted common shares outstanding excludes 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 were as follows: Years ended December 31, 2018 2017 2016 Options excluded 969,385 31,991 1,091,799

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Acquisitions	NOTE 19. ACQUISITIONS Acquisitions for the years ended December 31, 2018 , 2017 and 2016 were as follows: Entity Acquired (Dollars in millions) Date of Acquisition Additional Percent Interest Acquired Payments to Former Owners Acquisition Related Debt Retirements Total Purchase Consideration Type of Acquisition (1) Gain Recognized (1) Goodwill Acquired Intangibles Recognized (2) Net Sales Previous Fiscal Year Ended 2018 Efficient Drivetrains, Inc. 08/15/18 100% $ 51 $ 2 $ 64 (3) COMB — $ 49 $ 15 $ 3 Johnson Matthey Battery Systems, Ltd. 01/31/18 100% 9 — 9 COMB — — 5 3 2017 Brammo Inc. 11/01/17 100% $ 60 $ — $ 68 (3) COMB $ — $ 47 $ 23 $ 4 Eaton Cummins Automated Transmission Technologies 07/31/17 50% 600 (4) — 600 COMB — 544 596 — (4) 2016 Wuxi Cummins Turbo Technologies Co. Ltd 12/05/16 45% $ 86 $ — $ 86 EQUITY $ — $ — $ — $ — Cummins Pacific LLC 10/04/16 50% 32 67 99 COMB 15 4 8 391 (5) Cummins Northeast LLC 01/01/16 35% 12 — 12 EQUITY — — — — ____________________________________________________ (1) All results from acquired entities (excluding Brammo Inc. in 2017) 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 . The Brammo Inc. acquisition was allocated to the newly formed Electrified Power Segment on January 1, 2018. (2) Intangible assets acquired in business combinations were mostly customer and technology related, the majority of which will be amortized over a period of`up to 25 years from the date of the acquisition. (3) The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. 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 Brammo Inc. acquisition contains an earnout based on future results of the acquired business and could result in a maximum contingent consideration payment of $100 million (fair value of $5 million) to the former owners. (4) This transaction created a newly formed joint venture that we consolidated. See additional information below. (5) In April 2017, we entered into an agreement to form a joint venture with Eaton Corporation PLC (Eaton), which closed on July 31, 2017 (the acquisition date). We purchased a 50 percent interest in the new venture named Eaton Cummins Automated Transmission Technologies for $600 million in cash. In addition, each partner contributed $20 million for working capital. The joint venture will design, assemble, sell and support medium-duty and heavy-duty automated transmissions for the commercial vehicle market, including new product launches. The new generation products (Procision and Endurant) were launched in 2016 and 2017, respectively, and are owned by the joint venture. Eaton will continue to manufacture and sell the old generation products to the joint venture which will be marked up and sold to end customers. Eaton will also sell certain transmission components to the joint venture at prices approximating market rates. In addition, Eaton will provide certain manufacturing and administrative services to the joint venture, including but not limited to manufacturing labor in Mexico, information technology services, accounting services and purchasing services, at prices approximating market rates. Pro forma financial information was not provided as historical activity related to the products contributed to the joint venture was not material. We consolidated the results of the joint venture in our Components segment as we have a majority voting interest in the venture by virtue of a tie-breaking vote on the joint venture's board of directors. The joint venture had an enterprise value at inception of $1.2 billion . Due to the structure of the joint venture and equal sharing of economic benefits, we did not apply a discount for lack of control to the noncontrolling interests. The final purchase price allocation was as follows: In millions Inventory $ 3 Fixed assets 58 Intangible assets Customer relationships 424 Technology 172 Goodwill 544 Liabilities (1 ) Total business valuation 1,200 Less: Noncontrolling interest 600 Total purchase consideration $ 600 Customer relationship assets represent the value of the long-term strategic relationship the business has with its significant customers, which we are amortizing over 25 years. The assets were valued using an income approach, specifically the "multi-period excess earnings" method, which identifies an estimated stream of revenues and expenses for a particular group of assets from which deductions of portions of the projected economic benefits, attributable to assets other than the subject asset (contributory assets), are deducted in order to isolate the prospective earnings of the subject asset. This value is considered a level 3 measurement under the GAAP fair value hierarchy. Key assumptions used in the valuation of customer relationships include: (1) a rate of return of 10 percent and (2) an attrition rate of 3 percent . Technology assets primarily represent the associated patents and know how related to the Endurant and Procision next generation automated transmissions, which we are amortizing over 15 years. These assets were valued using the "relief-from-royalty" method, which is a combination of both the income approach and market approach that values a subject asset based on an estimate of the "relief" from the royalty expense that would be incurred if the subject asset were licensed from a third party. Key assumptions impacting this value include: (1) a market royalty rate of 5 percent , (2) a rate of return of 10 percent and (3) an economic depreciation rate of 7.5 percent . This value is considered a level 3 measurement under the GAAP fair value hierarchy. Annual amortization of the intangible assets for the next 5 years is expected to approximate $28 million . Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible and intangible assets and liabilities. Approximately $31 million of the goodwill is deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill is the ability to integrate and optimize the engine and transmission development to deliver the world’s best power train, to realize synergies in service and aftermarket growth and to utilize our strength in international markets where automated transmission adoption rates are very low. Included in our 2017 results were revenues of $164 million and a net loss of $11 million

OPERATING SEGMENTS

OPERATING SEGMENTS	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 20. 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 (CODM), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is the President and Chief Operating Officer. Our reportable operating segments consist of Engine, Distribution, Components, Power Systems and Electrified Power. This reporting structure is organized according to the products and markets each segment serves . The Engine segment produces engines (15 liters and less in size) and associated parts for sale to customers in on-highway and various off-highway markets. Our engines are used in trucks of all sizes, buses and recreational vehicles, as well as in various industrial applications, including construction, agriculture, power generation systems and other off-highway applications. 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, electronics, fuel systems and transmissions. The Power Systems segment is an integrated power provider, which designs, manufactures and sells engines (16 liters and larger) for industrial applications (including mining, oil and gas, marine and rail), standby and prime power generator sets, alternators and other power components. We formed the Electrified Power segment, effective January 1, 2018, which designs, manufactures, sells and supports electrified power systems ranging from fully electric to hybrid solutions along with innovative components and subsystems to serve all our markets as they adopt electrification, meeting the needs of our OEM partners and end customers. We currently offer the Cummins PowerDrive series of fully electric and hybrid powertrain systems targeting various applications in the Class 4-8 commercial vehicle markets and are developing the Cummins Battery Electric System and the Cummins Hybrid Power Plug-In System for the urban bus market, which are expected to launch in 2019 and 2020, respectively. We also design and manufacture battery modules, packs and systems for commercial, industrial and material handling applications. We use a range of cell chemistries which are suitable for pure electric, hybrid and plug-in hybrid applications. In addition to electrified powertrains for urban buses, we intend to deliver product offerings to other markets as they adopt electric solutions, including, but not limited to, pick-up and delivery applications and industrial markets. We invest in and utilize our internal research and development capabilities, along with strategic acquisitions and partnerships, to meet our objectives. Effective January 1, 2018, we changed our segment measure of profitability to EBITDA (defined as earnings before interest expense, income taxes, noncontrolling interests, depreciation and amortization) as the primary basis for the CODM to evaluate the performance of each of our reportable operating segments. EBITDA assists investors and debt holders in comparing our performance on a consistent basis without regard for depreciation and amortization, which can vary significantly depending upon many factors. Prior periods have been revised to reflect the current presentation. 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 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 allocate 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, finance and supply chain management. We do not allocate changes in cash surrender value of corporate owned life insurance to individual segments. EBITDA may not be consistent with measures used by other companies. In millions Engine Distribution Components (1) Power Systems Electrified Power Total Segments Intersegment Eliminations (2) Total 2018 External sales $ 8,002 $ 7,807 $ 5,331 $ 2,625 $ 6 $ 23,771 $ — $ 23,771 Intersegment sales 2,564 21 1,835 2,001 1 6,422 (6,422 ) — Total sales 10,566 7,828 7,166 4,626 7 30,193 (6,422 ) 23,771 Research, development and engineering expenses 311 20 272 230 69 902 — 902 Equity, royalty and interest income from investees 238 46 54 56 — 394 — 394 Interest income 11 13 5 6 — 35 — 35 Segment EBITDA 1,446 563 1,030 614 (90 ) 3,563 (87 ) 3,476 Depreciation and amortization (3) 190 109 185 119 6 609 — 609 Net assets (4) 1,265 2,677 2,878 2,262 138 9,220 — 9,220 Investments and advances to equity investees 561 278 206 177 — 1,222 — 1,222 Capital expenditures 254 133 182 129 11 709 — 709 2017 External sales $ 6,661 $ 7,029 $ 4,363 $ 2,375 $ — $ 20,428 $ — $ 20,428 Intersegment sales 2,292 29 1,526 1,683 — 5,530 (5,530 ) — Total sales 8,953 7,058 5,889 4,058 — 25,958 (5,530 ) 20,428 Research, development and engineering expenses 280 19 241 214 — 754 — 754 Equity, royalty and interest income from investees (5) 219 44 40 54 — 357 — 357 Interest income 6 6 3 3 — 18 — 18 Loss contingency (6) 5 — — — — 5 — 5 Segment EBITDA 1,143 500 917 411 — 2,971 55 3,026 Depreciation and amortization (3) 184 116 163 117 — 580 — 580 Net assets (4) 1,180 2,446 2,811 2,137 — 8,574 — 8,574 Investments and advances to equity investees 531 267 194 164 — 1,156 — 1,156 Capital expenditures 188 101 127 90 — 506 — 506 (Table continued on next page) In millions Engine Distribution Components Power Systems Electrified Power Total Segments Intersegment Eliminations (2) Total 2016 External sales $ 5,774 $ 6,157 $ 3,514 $ 2,064 $ — $ 17,509 $ — $ 17,509 Intersegment sales 2,030 24 1,322 1,453 — 4,829 (4,829 ) — Total sales 7,804 6,181 4,836 3,517 — 22,338 (4,829 ) 17,509 Research, development and engineering expenses 227 13 208 189 — 637 — 637 Equity, royalty and interest income from investees 148 70 41 42 — 301 — 301 Interest income 10 4 4 5 — 23 — 23 Loss contingency (6) 138 — — — — 138 — 138 Segment EBITDA 849 508 (7) 774 378 (8) — 2,509 17 2,526 Depreciation and amortization (3) 163 116 133 115 — 527 — 527 Net assets (4) 1,334 2,157 1,643 2,202 — 7,336 — 7,336 Investments and advances to equity investees 427 204 176 139 — 946 — 946 Capital expenditures 200 96 143 92 — 531 — 531 ____________________________________________________ (1) Includes Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See Note 19 , " ACQUISITIONS ," for additional information. (2) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the years ended 2018, 2017 and 2016, respectively. (3) 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 $2 million , $3 million and $3 million for the years ended 2018, 2017 and 2016, respectively. A portion of depreciation expense is included in "Research, development and engineering expense." (4) In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level. (5) U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million , $4 million and $12 million for the Engine, Distribution and Components segments, respectively. See Note 4 , " INCOME TAXES ," for additional information. (6) See Note 9 , " PRODUCT WARRANTY LIABILITY ," for additional information. (7) Distribution segment EBITDA included gains on the fair value adjustment resulting from the acquisition of controlling interests in North American distributors of $15 million for the year ended December 31, 2016 . See Note 19 , " ACQUISITIONS ," for additional information. (8) Power Systems segment EBITDA included a $17 million gain on the sale of an equity investee for the year ended December 31, 2016. See Note 3 , " INVESTMENTS IN EQUITY INVESTEES Consolidated Statements of Income is shown in the table below: Years ended December 31, In millions 2018 2017 2016 Total EBITDA $ 3,476 $ 3,026 $ 2,526 Less: Depreciation and amortization 609 $ 580 527 Interest expense 114 $ 81 $ 69 Income before income taxes $ 2,753 $ 2,365 $ 1,930 A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below: December 31, In millions 2018 2017 2016 Net assets for operating segments (1) $ 9,220 $ 8,574 $ 7,336 Cash, cash equivalents and marketable securities 1,525 1,567 1,380 Brammo Inc. assets — 72 (2) — Liabilities deducted in arriving at net assets 7,836 7,398 6,157 Pension and other postretirement benefit adjustments excluded from net assets 68 156 (284 ) Deferred tax assets not allocated to segments 410 306 420 Deferred debt costs not allocated to segments 3 2 2 Total assets $ 19,062 $ 18,075 $ 15,011 ____________________________________________________ (1) In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level. (2) Assets associated with the Brammo Inc. acquisition were presented as a reconciling item as Brammo Inc. had not yet been assigned to a reportable segment at December 31, 2017. See Note 19 , " ACQUISITIONS ," for additional information. See Note 2 , " DISAGGREGATION OF REVENUE ," for segment net sales by geographic area. Long-lived assets include property, plant and equipment, net of depreciation, investments and advances to equity investees and other assets, excluding deferred tax assets, refundable taxes and deferred debt expenses. Long-lived segment assets by geographic area were as follows: December 31, In millions 2018 2017 2016 United States $ 3,174 $ 3,157 $ 3,092 China 823 795 652 India 577 563 475 United Kingdom 337 339 254 Netherlands 234 221 197 Mexico 171 136 131 Canada 114 116 132 Brazil 104 149 149 Other international countries 329 293 236 Total long-lived assets $ 5,863 $ 5,769 $ 5,318 Our largest customer is PACCAR Inc. Worldwide sales to this customer were $3,643 million , $2,893 million and $2,359 million for the years ended December 31, 2018, 2017 and 2016 , representing 15 percent , 14 percent and 13 percent

QUARTERLY FINANCIAL INFORMATION

QUARTERLY FINANCIAL INFORMATION DISCLOSURE (unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY FINANCIAL INFORMATION	SELECTED QUARTERLY FINANCIAL DATA UNAUDITED First Quarter Second Quarter Third Quarter Fourth Quarter In millions, except per share amounts 2018 Net sales $ 5,570 $ 6,132 $ 5,943 $ 6,126 Gross margin 1,200 (1 ) 1,440 (1 ) 1,551 1,546 Net income attributable to Cummins Inc. (2) 325 (1 ) 545 (1 ) 692 579 Earnings per common share attributable to Cummins Inc.—basic (2) (3) $ 1.97 (1 ) $ 3.33 (1 ) $ 4.29 $ 3.65 Earnings per common share attributable to Cummins Inc.—diluted (2) (3) 1.96 (1 ) 3.32 (1 ) 4.28 3.63 Cash dividends per share 1.08 1.08 1.14 1.14 Stock price per share High $ 194.18 $ 172.08 $ 151.87 $ 156.49 Low 154.58 131.58 129.90 124.40 2017 Net sales $ 4,589 $ 5,078 $ 5,285 $ 5,476 Gross margin 1,132 1,251 1,341 1,376 Net income (loss) attributable to Cummins Inc. 396 424 453 (274 ) (2) Earnings (loss) per common share attributable to Cummins Inc.—basic (3) $ 2.36 $ 2.53 $ 2.72 $ (1.66 ) (2) Earnings (loss) per common share attributable to Cummins Inc.—diluted (3) 2.36 2.53 2.71 (1.65 ) (2) Cash dividends per share 1.025 1.025 1.08 1.08 Stock price per share High $ 155.51 $ 164.23 $ 170.68 $ 181.79 Low 134.06 143.83 150.25 158.75 ___________________________________________________ (1) Gross margin, net income attributable to Cummins Inc. and earnings per share were negatively impacted by an Engine Campaign charge of $187 million ( $144 million after tax) in the first quarter ( $0.87 per basic and diluted share). The second quarter was negatively impacted by an additional charge of $181 million ( $139 million after tax) ( $0.85 per basic and diluted share). In 2017, a charge of $29 million ( $21 million after tax) ( $0.13 per basic and diluted share) was recorded in the third quarter. (2) Net income attributable to Cummins Inc., basic and diluted earnings per share were impacted by Tax Legislation adjustments. Net income attributable to Cummins Inc. was reduced by $74 million and $8 million , in the first and second quarter, respectively, while it increased in the third and fourth quarter $33 million and $10 million , respectively. Basic and diluted earnings per share were reduced by $0.45 per share and $0.05 per share in the first and second quarter, respectively, while they increased in the third and fourth quarter by $0.20 per share and $0.06 per share , respectively. Net income attributable to Cummins Inc. and earnings per share were negatively impacted by $777 million related to Tax Legislation. For the fourth quarter of 2017, results for basic and diluted earnings per share were reduced by $4.70 per share and $4.68 per share , respectively, due to tax reform. (3) Earnings per share in each quarter is computed using the weighted-average number of shares outstanding during that quarter while earnings per share for the full year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the four quarters earnings per share may not equal the full year earnings per share. At December 31, 2018 , there were approximately 3,256

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation Our Consolidated Financial Statements include the accounts of all wholly-owned and majority-owned domestic and foreign subsidiaries where our ownership is more than 50 percent of outstanding equity interests except for majority-owned subsidiaries that are considered variable interest entities (VIEs) where we are not deemed to have a controlling financial interest. In addition, we also consolidate, regardless of our ownership percentage, VIEs or joint ventures for which we are deemed to have a controlling financial interest. Intercompany balances and transactions are eliminated in consolidation. Where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported in our Consolidated Balance Sheets . The noncontrolling ownership interest in our income, net of tax, is classified as "Net income (loss) attributable to noncontrolling interests" in our Consolidated Statements of Income .
Reclassification	Reclassifications Certain amounts for 2017 and 2016
Investments in Equity Investees	Investments in Equity Investees We use the equity method to account for our investments in joint ventures, affiliated companies and alliances in which we have the ability to exercise significant influence, generally represented by equity ownership or partnership equity of at least 20 percent but not more than 50 percent . Generally, under the equity method, original investments in these entities are recorded at cost and subsequently adjusted by our share of equity in income or losses after the date of acquisition. Investment amounts in excess of our share of an investee's net assets are amortized over the life of the related asset creating the excess. If the excess is goodwill, then it is not amortized. Equity in income or losses of each investee is recorded according to our level of ownership; if losses accumulate, we record our share of losses until our investment has been fully depleted. If our investment has been fully depleted, we recognize additional losses only when we are the primary funding source. We eliminate (to the extent of our ownership percentage) in our Consolidated Financial Statements the profit in inventory held by our equity method investees that has not yet been sold to a third-party. Our investments are classified as "Investments and advances related to equity method investees" in our Consolidated Balance Sheets. Our share of the results from joint ventures, affiliated companies and alliances is reported in our Consolidated Statements of Income as "Equity, royalty and interest income from investees," and is reported net of all applicable income taxes. Our foreign equity investees are presented net of applicable foreign income taxes in our Consolidated Statements of Income . Our remaining United States (U.S.) equity investees are partnerships (non-taxable), thus there is no difference between gross or net of tax presentation as the investees are not taxed. See NOTE 3 , " INVESTMENTS IN EQUITY INVESTEES
Use of Estimates in the Preparation of the Financial Statements	Use of Estimates in the Preparation of the Financial Statements Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Consolidated Financial Statements . Significant estimates and assumptions in these Consolidated Financial Statements require the exercise of judgment and are used for, but not limited to, 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 rate and other assumptions for pensions and other postretirement benefit costs, income taxes and deferred tax valuation allowances, lease classification and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.
Revenue Recognition	Revenue Recognition On January 1, 2018, we adopted the new revenue recognition standard in accordance with GAAP on a modified retrospective basis.
Revenue Recognition, Sales of Goods	Revenue Recognition Sales of Products We sell to customers either through long-term arrangements or standalone purchase orders. Our long-term arrangements generally do not include committed volumes until underlying purchase orders are issued. Our performance obligations vary by contract, but may include diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, transmissions, power generation systems and construction related projects, batteries, battery systems, parts, maintenance services and extended warranty coverage. Typically, we recognize revenue on the products we sell at a point in time, generally in accordance with shipping terms, which reflects the transfer of control to the customer. Since control of construction projects transfer to the customer as the work is performed, revenue on these projects is recognized based on the percentage of inputs incurred to date compared to the total expected cost of inputs, which is reflective of the value transferred to the customer. Revenue is recognized under long-term maintenance and other service agreements over the term of the agreement as underlying services are performed based on the percentage of the cost of services provided to date compared to the total expected cost of services to be provided under the contract. Sales of extended coverage are recognized based on the pattern of expected costs over the extended coverage period or, if such a pattern is unknown, on a straight-line basis over the coverage period as the customer is considered to benefit from our stand ready obligation over the coverage period. In all cases, we believe cost incurred is the most representative depiction of the extent of service performed to date on a particular contract. Our arrangements may include the act of shipping products to our customers after the performance obligation related to that product has been satisfied. We have elected to account for shipping and handling as activities to fulfill the promise to transfer goods and have not allocated revenue to the shipping activity. All related shipping and handling costs are accrued at the time of shipment. Our sales arrangements may include the collection of sales and other similar taxes that are then remitted to the related taxing authority. We have elected to present the amounts collected for these taxes net of the related tax expense rather than presenting them as additional revenue. We grant credit limits and terms to customers based upon traditional practices and competitive conditions. Typical terms vary by market, but payments are generally due in 90 days or less from invoicing for most of our product and service sales, while payments on construction and other similar arrangements may be due on an installment basis. For contracts where the time between cash collection and performance is less than one year, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. For contracts where this time period exceeds one year, generally the timing difference is the result of business concerns other than financing. We do have a limited amount of customer financing for which we charge or impute interest, but such amounts are immaterial to our Consolidated Statements of Income
Revenue Recognition, Incentives	Sales Incentives We provide various sales incentives to both our distribution network and OEM customers. These programs are designed to promote the sale of our products in the channel or encourage the usage of our products by OEM customers. When there is uncertainty surrounding these sales incentives, we may limit the amount of revenue we recognize under a contract until the uncertainty has been resolved. Sales incentives primarily fall into three categories: • Volume rebates; • Market share rebates; and • Aftermarket rebates. For volume rebates, we provide certain customers with rebate opportunities for attaining specified volumes during a particular quarter or year. We consider the expected amount of these rebates at the time of the original sale as we determine the overall transaction price. We update our assessment of the amount of rebates that will be earned quarterly based on our best estimate of the volume levels the customer will reach during the measurement period. For market share rebates, we provide certain customers with rebate opportunities based on the percentage of their production that utilizes our product. These rebates are typically measured either quarterly or annually and we assess them at least quarterly to determine our current estimates of amounts expected to be earned. These estimates are considered in the determination of transaction price at the time of the original sale based on the current market shares, with adjustments made as the level changes. For aftermarket rebates, we provide incentives to promote sales to certain dealers and end-markets. These rebates are typically paid on a quarterly, or more frequent basis. At the time of the sales, we consider the expected amount of these rebates when determining the overall transaction price. Estimates are adjusted at the end of each quarter based on the amounts yet to be paid. These estimates are based on historical experience with the particular program.
Revenue Recognition, Sales Returns	Sales Returns The initial determination of the transaction price may also be impacted by expected product returns. Rights of return do not exist for the majority of our sales other than for quality issues. We do offer certain return rights in our aftermarket business, where some aftermarket customers are permitted to return small amounts of parts and filters each year, and in our power generation business, which sells portable generators to retail customers. An estimate of future returns is accounted for at the time of sale as a reduction in the overall contract transaction price based on historical return rates.
Revenue Recognition, Multiple-deliverable Arrangements, Determination of selling Price, Amount	Multiple Performance Obligations Our sales arrangements may include multiple performance obligations. We identify each of the material performance obligations in these arrangements and allocate the total transaction price to each performance obligation based on its relative selling price. In most cases, the individual performance obligations are also sold separately and we use that price as the basis for allocating revenue to the included performance obligations. When an arrangement includes multiple performance obligations and invoicing to the customer does not match the allocated portion of the transaction price, unbilled revenue or deferred revenue is recorded reflecting that difference. Unbilled and deferred revenue are discussed in more detail below.
Revenue Recognition, Long-term Contracts	Long-term Contracts Our long-term maintenance agreements often include a variable component of the transaction price. We are generally compensated under such arrangements on a cost per hour of usage basis. We typically can estimate the expected usage over the life of the contract, but reassess the transaction price each quarter and adjust our recognized revenue accordingly. Certain maintenance agreements apply to generators used to provide standby power, which have limited expectations of usage. These agreements may include monthly minimum payments, providing some certainty to the total transaction price. For these particular contracts that relate to standby power, we limit revenue recognized to date to an amount representing the total minimums earned to date under the contract plus any cumulative billings earned in excess of the minimums. We reassess the estimates of progress and transaction price on a quarterly basis. For prime power arrangements, revenue is not subject to such a constraint and is generally equal to the current estimate on a percentage of completion basis times the total expected revenue under the contract. Most of our contracts are for a period of less than one year. We have certain long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that have not been satisfied as of December 31, 2018, was $710 million . We expect to recognize the related revenue of $211 million over the next 12 months and $499 million over periods up to 10 years . See NOTE 9 ," PRODUCT WARRANTY LIABILITY ," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of cost incurred when providing goods and services to our customers or represent sale-based royalties.
Revenue Recognition, Deferred Revenue	Deferred and Unbilled Revenue The timing of our billing does not always match the timing of our revenue recognition. We record deferred revenue when we are entitled to bill a customer in advance of when we are permitted to recognize revenue. Deferred revenue may arise in construction contracts, where billings may occur in advance of performance or in accordance with specific milestones. Deferred revenue may also occur in long-term maintenance contracts, where billings are often based on usage of the underlying equipment, which generally follows a predictable pattern that often will result in the accumulation of collections in advance of our performance of the related maintenance services. Finally, deferred revenue exists in our extended coverage contracts, where the cash is collected prior to the commencement of the coverage period. Deferred revenue is included in our Consolidated Balance Sheets as a component of current liabilities for the amount expected to be recognized in revenue in a period of less than one year and long-term liabilities for the amount expected to be recognized as revenue in a period beyond one year. Deferred revenue is recognized as revenue when control of the underlying product, project or service passes to the customer under the related contract.
Revenue Recognition, Unbilled Revenue	We recognize unbilled revenue when the revenue has been earned, but not yet billed. Unbilled revenue is included in our Consolidated Balance Sheets as a component of current assets for those expected to be collected in a period of less than one year and long-term assets for those expected to be collected in a period beyond one year. Unbilled revenue relates to our right to consideration for our completed performance under a contract. Unbilled revenue generally arises from contractual provisions that delay a portion of the billings on genset deliveries until commissioning occurs. Unbilled revenue may also occur when billings trail the provision of service in construction and long-term maintenance contracts. We periodically assess our unbilled revenue for impairment. We did not record any impairment losses on our unbilled revenues during 2018
Revenue Recognition Precontract Costs	Contract Costs We are required to record an asset for the incremental costs of obtaining a contract with a customer and other costs to fulfill a contract not otherwise required to be immediately expensed when we expect to recover those costs. The only material incremental cost we incur is commission expense, which is generally incurred in the same period as the underlying revenue. Costs to fulfill a contract are generally limited to customer-specific engineering expenses that do not meet the definition of research and development expenses. As a practical expedient, we have elected to recognize these costs of obtaining a contract as an expense when the related contract period is less than one year. When the period exceeds one year, this asset is amortized over the life of the contract. We did not have any material capitalized balances at December 31, 2018 .
Revenue Recognition, Extended Warranty	Extended Warranty We sell extended warranty coverage on most of our engines and on certain components. We consider a warranty to be extended coverage in any of the following situations: • When a warranty is sold separately or is optional (extended coverage contracts, for example) or • When a warranty provides additional services. The consideration collected is initially deferred and is recognized as revenue in proportion to the costs expected to be incurred in performing services over the contract period. We compare the remaining deferred revenue balance quarterly to the estimated amount of future claims under extended warranty programs and provide an additional accrual when the deferred revenue balance is less than expected future costs.
Foreign Currency Transactions and Translation	Foreign Currency Transactions and Translation We translate assets and liabilities of foreign entities to U.S. dollars, where the local currency is the functional currency, at year-end exchange rates. We translate income and expenses to U.S. dollars using weighted-average exchange rates for the year. We record adjustments resulting from translation in a separate component of accumulated other comprehensive loss (AOCL) and include the adjustments in net income only upon sale, loss of controlling financial interest or liquidation of the underlying foreign investment. Foreign currency transaction gains and losses are included in current net income. For foreign entities where the U.S. dollar is the functional currency, including those operating in highly inflationary economies when applicable, we remeasure non-monetary balances and the related income statement using historical exchange rates. We include in income the resulting gains and losses, including the effect of derivatives in our Consolidated Statements of Income , which combined with transaction gains and losses amounted to a net loss of $34 million , $6 million and $12 million for the years ended December 31, 2018 , 2017 and 2016
Fair Value Measurement	Fair Value Measurements A three-level valuation hierarchy, based upon the observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets; • Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and • Level 3 - Instruments whose significant inputs are unobservable
Derivative Instruments	Derivative Instruments We make use of derivative instruments in foreign exchange, commodity price and interest rate hedging programs. Derivatives currently in use are foreign currency forward contracts, commodity physical forward contracts, options and interest rate swaps. These contracts are used strictly for hedging and not for speculative purposes. We are exposed to market risk from fluctuations in interest rates. We manage our exposure to interest rate fluctuations through the use of interest rate swaps. The objective of the swaps is to more effectively balance our borrowing costs and interest rate risk. The gain or loss on these derivative instruments as well as the offsetting gain or loss on the hedged item are recognized in current income as "Interest expense." For more detail on our interest rate swaps, see NOTE 10 , " DEBT ." Due to our international business presence, we are exposed to foreign currency exchange risk. We transact in foreign currencies and have assets and liabilities denominated in foreign currencies. Consequently, our income experiences some volatility related to movements in foreign currency exchange rates. In order to benefit from global diversification and after considering naturally offsetting currency positions, we enter into foreign currency forward contracts to minimize our existing exposures (recognized assets and liabilities) and hedge forecasted transactions. Foreign currency forward contracts are designated and qualify as foreign currency cash flow hedges under GAAP. The effective portion of the unrealized gain or loss on the forward contract is deferred and reported as a component of AOCL. When the hedged forecasted transaction (sale or purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income. To minimize the income volatility resulting from the remeasurement of net monetary assets and payables denominated in a currency other than the functional currency, we enter into foreign currency forward contracts, which are considered economic hedges. The objective is to offset the gain or loss from remeasurement with the gain or loss from the fair market valuation of the forward contract. These derivative instruments are not designated as hedges under GAAP. We are exposed to fluctuations in commodity prices due to contractual agreements with component suppliers. In order to protect ourselves against future price volatility and, consequently, fluctuations in gross margins, we periodically enter into commodity physical forward contracts and zero-cost collar contracts with designated banks and other counterparties to fix the cost of certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations. The physical forward contracts qualify for the normal purchases scope exceptions and are treated as purchase commitments. The commodity zero-cost collar contracts that represent an economic hedge, but are not designated for hedge accounting, are marked to market through earnings.
Income Tax Accounting	Income Tax Accounting We determine our income tax expense using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits of net operating loss and credit carryforwards are also recognized as deferred tax assets. We evaluate the recoverability of our deferred tax assets each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. A valuation allowance is recorded to reduce the tax assets to the net value management believes is more likely than not to be realized. In the event our operating performance deteriorates, future assessments could conclude that a larger valuation allowance will be needed to further reduce the deferred tax assets. In addition, we operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. We accrue for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions. We have taken and we believe we have made adequate provisions for income taxes for all years that are subject to audit based upon the latest information available. A more complete description of our income taxes and the future benefits of our net operating loss and credit carryforwards is disclosed in NOTE 4 , " INCOME TAXES
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with an original maturity of 90 days or less at the time of purchase. The carrying amounts reflected in our Consolidated Balance Sheets
Marketable Securities	Marketable Securities We account for marketable securities in accordance with GAAP for investments in debt and equity securities. Effective January 1, 2018 and forward , with the adoption of the new Financial Accounting Standards Board (FASB) standard, only debt securities are classified as "held-to-maturity," "available-for-sale" or "trading". We determine the appropriate classification of debt securities at the time of purchase, and re-evaluate such classifications at each balance sheet date. At December 31, 2018 and 2017 , all of our debt securities were classified as available-for-sale. With the adoption of the new standard, debt and equity securities are carried at fair value with the unrealized gain or loss, net of tax, reported in other comprehensive income and other income, respectively. For debt securities, unrealized losses considered to be "other-than-temporary" are recognized currently in other income. The cost of securities sold is based on the specific identification method. The fair value of most investment securities is determined by currently available market prices. Where quoted market prices are not available, we use the market price of similar types of securities that are traded in the market to estimate fair value. See " RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS " section below for additional information and NOTE 5 , " MARKETABLE SECURITIES
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable represent amounts billed to customers and not yet collected or amounts that have been earned, but may not be billed until the passage of time, and are recorded when the right to consideration becomes unconditional. Trade accounts receivable are recorded at the invoiced amount, which approximates net realizable value, and generally do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on our historical collection experience and by performing an analysis of our accounts receivable in light of the current economic environment. We review our allowance for doubtful accounts on a regular basis. In addition, when necessary, we provide an allowance for the full amount of specific accounts deemed to be uncollectible. Account balances are charged off against the allowance in the period in which we determine that it is probable the receivable will not be recovered. The allowance for doubtful accounts balances were $15 million and $16 million for the years ended December 31, 2018, and 2017 , respectively, and bad debt write-offs were not material.
Inventories	Inventories Our inventories are stated at the lower of cost or market. For the years ended December 31, 2018 and 2017 , approximately 13 percent and 12 percent , respectively, of our consolidated inventories (primarily heavy-duty and high-horsepower engines and parts) were valued using the last-in, first-out (LIFO) cost method. The cost of other inventories is generally valued using the first-in, first-out (FIFO) cost method. Our inventories at interim and year-end reporting dates include estimates for adjustments related to annual physical inventory results and for inventory cost changes under the LIFO cost method. Due to significant movements of partially-manufactured components and parts between manufacturing plants, we do not internally measure, nor do our accounting systems provide, a meaningful segregation between raw materials and work-in-process. See NOTE 6 , " INVENTORIES
Property, Plant and Equipment	Property, Plant and Equipment We record property, plant and equipment, inclusive of assets under capital leases, at cost. We depreciate the cost of the majority of our property, plant and equipment using the straight-line method with depreciable lives ranging from 20 to 40 years for buildings and 3 to 15 years for machinery, equipment and fixtures. Capital lease amortization is recorded in depreciation expense. We expense normal maintenance and repair costs as incurred. Depreciation expense totaled $455 million , $467 million and $434 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. See NOTE 7 , " PROPERTY, PLANT AND EQUIPMENT
Impairment of Long-Lived Assets	Impairment of Long-Lived AssetsWe review our long-lived assets for possible impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. We assess the recoverability of the carrying value of the long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment of a long-lived asset or asset group exists when the expected future pre-tax cash flows (undiscounted and without interest charges) estimated to be generated by the asset or asset group is less than its carrying value. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is measured based on the difference between the estimated fair value and carrying value of the asset or asset group. Assumptions and estimates used to estimate cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in a future impairment charge.
Goodwill	Goodwill Under GAAP for goodwill, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform an annual quantitative goodwill impairment test. We have elected this option on certain reporting units. The quantitative impairment test is only required if an entity determines through this qualitative analysis that it is more likely than not that the fair value of the reporting unit is less than its carrying value. In addition, the carrying value of goodwill must be tested for impairment on an interim basis in certain circumstances where impairment may be indicated. We adopted the FASB's revised rules for goodwill impairment testing in 2018, which simplified the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual, or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. When we are required or opt to perform the quantitative impairment test, the fair value of each reporting unit is estimated by discounting the after tax future cash flows less requirements for working capital and fixed asset additions. Our reporting units are generally defined as one level below an operating segment. However, there are two situations where we have aggregated two or more reporting units which share similar economic characteristics and thus are aggregated into a single reporting unit for testing purposes. These two situations are described further below: • Within our Components segment, our emission solutions and filtration businesses have been aggregated into a single reporting unit and • Our Distribution segment is considered a single reporting unit as it is managed geographically and all regions share similar economic characteristics and provide similar products and services. Our valuation method requires us to make projections of revenue, operating expenses, working capital investment and fixed asset additions for the reporting units over a multi-year period. Additionally, management must estimate a weighted-average cost of capital, which reflects a market rate, for each reporting unit for use as a discount rate. The discounted cash flows are compared to the carrying value of the reporting unit and, if less than the carrying value, the difference is recorded as a goodwill impairment loss. In addition, we also perform a sensitivity analysis to determine how much our forecasts can fluctuate before the fair value of a reporting unit would be lower than its carrying amount. We perform the required procedures as of the end of our fiscal third quarter. We determined that the automated transmission business is our only reporting unit with material goodwill where the estimated fair value does not substantially exceed the carrying value. The estimated fair value of the reporting unit exceeds its carrying amount by approximately 21 percent . Total goodwill in this reporting unit is $544 million and the total carrying amount at the time of the evaluation was $1,200 million . This reporting unit is made up of only one business, our joint venture with Eaton (Eaton Cummins Automated Transmission Technologies) which was acquired and recorded at fair value in the third quarter of 2017. As a result, we did not expect that the estimated fair value would exceed the carrying value by a significant amount. At December 31, 2018 , our recorded goodwill was $1,126 million , approximately 48 percent of which resided in the automated transmissions reporting unit, 34 percent in the aggregated emission solutions and filtration reporting unit, 8 percent in the electrified power reporting unit and 7 percent in the distribution reporting unit. Changes in our projections or estimates, a deterioration of our operating results and the related cash flow effect or a significant increase in the discount rate could decrease the estimated fair value of our reporting units and result in a future impairment of goodwill. See NOTE 8 , " GOODWILL AND OTHER INTANGIBLE ASSETS
Other Intangible Assets	Other Intangible Assets We capitalize other intangible assets, such as trademarks, patents and customer relationships, that have been acquired either individually or with a group of other assets. These intangible assets are amortized on a straight-line basis over their estimated useful lives generally ranging from 3 to 25 years. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. See NOTE 8 , " GOODWILL AND OTHER INTANGIBLE ASSETS
Software	Software We capitalize software that is developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives generally ranging from 3 to 12 years. Software assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. Upgrades and enhancements are capitalized if they result in significant modifications that enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion and business process reengineering costs are expensed in the period in which they are incurred. See NOTE 8 , " GOODWILL AND OTHER INTANGIBLE ASSETS
Warranty	Warranty We charge the estimated costs of warranty programs, other than product campaigns, to cost of sales at the time products are sold and revenue is recognized. We use historical experience to develop the estimated liability for our various warranty programs. Factors considered in developing these estimates included component failure rates, repair costs and the point of failure within the product life cycle. As a result of the uncertainty surrounding the nature and frequency of product campaigns, the liability for such campaigns is recorded when we commit to a recall action or when a recall becomes probable and estimable, which generally occurs when it is announced. The liability for these campaigns is reflected in the provision for warranties issued. We review and assess the liability for these programs on a quarterly basis. We also assess our ability to recover certain costs from our suppliers and record a receivable when we believe a recovery is probable. In addition to costs incurred on warranty and product campaigns, from time to time we also incur costs related to customer satisfaction programs for items not covered by warranty. We accrue for these costs when agreement is reached with a specific customer. These costs are not included in the provision for warranties, but are included in cost of sales. In addition, we sell extended warranty coverage on most of our engines. See Extended Warranty policy discussion above and NOTE 9 , " PRODUCT WARRANTY LIABILITY
Research and Development	Research and Development Our research and development program is focused on product improvements, product extensions, innovations and cost reductions for our customers. Research and development expenditures include salaries, contractor fees, building costs, utilities, testing, technical IT, administrative expenses and allocation of corporate costs and are expensed, net of contract reimbursements, when incurred. From time to time, we enter into agreements with customers and government agencies to fund a portion of the research and development costs of a particular project. We generally account for these reimbursements as an offset to the related research and development expenditure. Research and development expenses, net of contract reimbursements, were $894 million , $734 million and $616 million for the years ended December 31, 2018, 2017 and 2016 , respectively. Contract reimbursements were $120 million , $137 million and $131 million for the years ended December 31, 2018, 2017 and 2016
Related Party Transactions	Related Party Transactions In accordance with the provisions of various joint venture agreements, we may purchase products and components from our joint ventures, sell products and components to our joint ventures and our joint ventures may sell products and components to unrelated parties. Joint venture transfer prices may differ from normal selling prices. Certain joint venture agreements transfer product at cost, some transfer product on a cost-plus basis, and others transfer product at market value. Our related party sales are presented on the face of our Consolidated Statements of Income

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Schedule of Cash Flow, Supplemental Disclosures	The carrying amounts reflected in our Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to the short-term maturity of these investments. Years ended December 31, In millions 2018 2017 2016 Cash payments for income taxes, net of refunds $ 699 $ 622 $ 430 Cash payments for interest, net of capitalized interest 114 82 68
Contract with Customer, Asset and Liability	The following is a summary of our unbilled and deferred revenue and related activity: In millions December 31, January 1, Unbilled revenue $ 64 $ 6 Deferred revenue, primarily extended warranty 1,156 1,052 Revenue recognized (1) (361 ) — ____________________________________ (1)
ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	As a result, we revised our Consolidated Statements of Income by the following amounts: Favorable / (Unfavorable) In millions 2017 2016 Cost of sales $ 10 $ 6 Selling, general and administrative expenses (39 ) (53 ) Research, development and engineering expenses (2 ) (1 ) Total change in operating income (31 ) (48 ) Other non-operating income, net 31 48 Total change in income before income taxes $ — $ —

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUE REVENUE RECOGNITION DISAGGREGATION OF REVENUE (Tables)	12 Months Ended
	Dec. 31, 2018
Revenue from External Customer [Line Items]
Revenue from External Customers by Geographic Areas	The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Years ended December 31, In millions 2018 2017 2016 United States $ 13,218 $ 11,010 $ 9,476 China 2,324 2,137 1,544 India 965 805 621 Other international 7,264 6,476 5,868 Total net sales $ 23,771 $ 20,428 $ 17,509
Engine
Revenue from External Customer [Line Items]
Disaggregation of Revenue	Engine segment external sales by market were as follows: In millions Year ended December 31, 2018 Heavy-duty truck $ 2,885 Medium-duty truck and bus 2,536 Light-duty automotive 1,501 Total on-highway 6,922 Off-highway 1,080 Total sales $ 8,002
Distribution
Revenue from External Customer [Line Items]
Revenue from External Customers by Geographic Areas	Distribution segment external sales by region were as follows: In millions Year ended December 31, 2018 North America $ 5,331 Asia Pacific 851 Europe 536 China 317 Africa and Middle East 242 India 192 Latin America 169 Russia 169 Total sales $ 7,807
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: In millions Year ended December 31, 2018 Parts $ 3,222 Engines 1,632 Service 1,471 Power generation 1,482 Total sales $ 7,807
Components
Revenue from External Customer [Line Items]
Revenue from External Customers by Products and Services	Components segment external sales by business were as follows: In millions Year ended December 31, 2018 Emission solutions $ 2,780 Filtration 1,010 Turbo technologies 761 Automated transmissions 543 Electronics and fuel systems 237 Total sales $ 5,331
Power Systems
Revenue from External Customer [Line Items]
Revenue from External Customers by Products and Services	Power Systems segment external sales by product line were as follows: In millions Year ended December 31, 2018 Power generation $ 1,467 Industrial 801 Generator technologies 357 Total sales $ 2,625

INVESTMENTS IN EQUITY INVESTE_2

INVESTMENTS IN EQUITY INVESTEES (Tables)	12 Months Ended
	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Summary of investments in and advances to equity investees and our ownership percentage	Investments and advances related to equity method investees and our ownership percentage was as follows: December 31, In millions Ownership % 2018 2017 Komatsu alliances 20-50% $ 238 $ 219 Beijing Foton Cummins Engine Co., Ltd. 50% 203 223 Dongfeng Cummins Engine Company, Ltd. 50% 160 146 Chongqing Cummins Engine Company, Ltd. 50% 102 84 Cummins-Scania XPI Manufacturing, LLC 50% 101 87 Tata Cummins, Ltd. 50% 58 59 Other Various 360 338 Investments and advances related to equity method investees $ 1,222 $ 1,156
Equity, royalty and interest income from investees	Equity, royalty and interest income from investees, net of applicable taxes, was as follows: Years ended December 31, In millions 2018 2017 2016 Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 72 $ 94 $ 52 Dongfeng Cummins Engine Company, Ltd. 58 73 46 Chongqing Cummins Engine Company, Ltd. 51 41 38 Cummins Westport, Inc. 28 9 (1) 11 Dongfeng Cummins Emission Solutions Co., Ltd. 14 13 9 Tata Cummins, Ltd. 14 (7 ) (1) 6 All other manufacturers 73 56 (1) 43 Distribution entities Komatsu Cummins Chile, Ltda. 26 30 34 North American distributors — — 21 (2) All other distributors — (1 ) — Cummins share of net income 336 308 260 Royalty and interest income 58 49 41 Equity, royalty and interest income from investees $ 394 $ 357 $ 301 ___________________________________________________________ (1) U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, including a $7 million unfavorable impact to Cummins Westport, Inc. due to the remeasurement of deferred taxes and $15 million unfavorable impact to Tata Cummins, Ltd. and a $17 million unfavorable impact to "All other manufacturers" due to withholding tax adjustments on foreign earnings. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information . (2) During 2016, we acquired the remaining interest in the final unconsolidated North American distributor joint venture.
Summary of financial information for equity investees	Summary financial information for our equity investees was as follows: For the years ended and at December 31, In millions 2018 2017 2016 Net sales $ 7,352 $ 7,050 $ 5,654 Gross margin 1,373 1,422 1,182 Net income 647 680 499 Cummins share of net income $ 336 $ 308 $ 260 Royalty and interest income 58 49 41 Total equity, royalty and interest from investees $ 394 $ 357 $ 301 Current assets $ 3,401 $ 3,416 Non-current assets 1,449 1,379 Current liabilities (2,669 ) (2,567 ) Non-current liabilities (218 ) (237 ) Net assets $ 1,963 $ 1,991 Cummins share of net assets $ 1,144 $ 1,116

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	The following table summarizes income before income taxes: Years ended December 31, In millions 2018 2017 2016 U.S. income $ 1,239 $ 1,237 $ 995 Foreign income 1,514 1,128 935 Income before income taxes $ 2,753 $ 2,365 $ 1,930
Schedule of Components of Income Tax Expense (Benefit)	The adjustments for income tax expense (benefit) during the one-year Tax Legislation measurement period for each group and other Tax Legislation adjustments consisted of the following: Years Ended December 31, In millions 2018 2017 Total Impact One-year measurement adjustments to 2017 estimates Withholding tax accrued $ (148 ) $ 331 $ 183 Deferred tax balances 7 152 159 One-time transition tax 111 298 409 Net impact of measurement period changes (30 ) 781 751 Other 2018 adjustments Deferred tax charges (1) 35 — 35 Foreign currency adjustment related to Tax Legislation 7 — 7 Net impact of 2018 adjustments 42 — 42 Total Tax Legislation impact $ 12 $ 781 $ 793 ____________________________________________________ (1) Years ended December 31, In millions 2018 2017 2016 Current U.S. federal and state $ 303 $ 355 $ 211 Foreign 348 289 213 Impact of tax legislation 153 349 — Total current 804 993 424 Deferred U.S. federal and state (71 ) (42 ) 57 Foreign (26 ) (12 ) (7 ) Impact of tax legislation (141 ) 432 — Total deferred (238 ) 378 50 Income tax expense $ 566 $ 1,371 $ 474
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate was as follows: Years ended December 31, 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % State income tax, net of federal effect 0.9 0.6 0.8 Differences in rates and taxability of foreign subsidiaries and joint ventures (0.2 ) (6.4 ) (7.2 ) Research tax credits (1.2 ) (1.4 ) (1.7 ) Impact of tax legislation 0.5 33.1 — Other, net (0.4 ) (2.9 ) (2.3 ) Effective tax rate 20.6 % 58.0 % 24.6 %
Schedule of Deferred Tax Assets and Liabilities	Carryforward tax benefits and the tax effect of temporary differences between financial and tax reporting that give rise to net deferred tax (liabilities) assets were as follows: December 31, In millions 2018 2017 Deferred tax assets U.S. state carryforward benefits $ 191 $ 200 Foreign carryforward benefits 149 159 Employee benefit plans 245 274 Warranty expenses 401 300 Accrued expenses 94 95 Other 65 70 Gross deferred tax assets 1,145 1,098 Valuation allowance (327 ) (347 ) Total deferred tax assets 818 751 Deferred tax liabilities Property, plant and equipment (255 ) (250 ) Unremitted income of foreign subsidiaries and joint ventures (184 ) (331 ) Employee benefit plans (202 ) (224 ) Other (30 ) (31 ) Total deferred tax liabilities (671 ) (836 ) Net deferred tax assets (liabilities) $ 147 $ (85 )
Tax Related Line Items on the Consolidated Balance Sheets	Our Consolidated Balance Sheets contain the following tax related items: December 31, In millions 2018 2017 Prepaid and other current assets Refundable income taxes $ 117 $ 152 Other assets Deferred income tax assets 410 306 Long-term refundable income taxes 6 6 Accrued expenses Income tax payable 97 77 Other liabilities and deferred revenue Income tax payable 293 281 Deferred income tax liabilities 263 391
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016 was as follows: December 31, In millions 2018 2017 2016 Balance at beginning of year $ 41 $ 59 $ 135 Additions to current year tax positions 10 11 10 Additions to prior years' tax positions 27 9 18 Reductions to prior years' tax positions (2 ) (3 ) — Reductions for tax positions due to settlements with taxing authorities (5 ) (35 ) (104 ) Balance at end of year $ 71 $ 41 $ 59

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2018
Marketable Securities [Abstract]
Summary of marketable securities	A summary of marketable securities, all of which are classified as current, was as follows: December 31, 2018 2017 In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 103 $ 1 $ 104 $ 170 $ — $ 170 Certificates of deposit 101 — 101 12 — 12 Equity mutual funds 16 — 16 12 3 15 Debt securities 1 — 1 1 — 1 Total marketable securities $ 221 $ 1 $ 222 $ 195 $ 3 $ 198 ______________________________________________________ (1)
Schedule of proceeds from sales and maturities of marketable securities	The proceeds from sales and maturities of marketable securities were as follows: Years ended December 31, In millions 2018 2017 2016 Proceeds from sales of marketable securities $ 253 $ 145 $ 116 Proceeds from maturities of marketable securities 78 121 190 Investments in marketable securities - liquidations $ 331 $ 266 $ 306

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories included the following: December 31, In millions 2018 2017 Finished products $ 2,405 $ 2,078 Work-in-process and raw materials 1,487 1,216 Inventories at FIFO cost 3,892 3,294 Excess of FIFO over LIFO (133 ) (128 ) Total inventories $ 3,759 $ 3,166

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Details of property, plant and equipment	Details of our property, plant and equipment balance were as follows: December 31, In millions 2018 2017 Land and buildings $ 2,398 $ 2,332 Machinery, equipment and fixtures 5,391 5,285 Construction in process 530 441 Property, plant and equipment, gross 8,319 8,058 Less: Accumulated depreciation (4,223 ) (4,131 ) Property, plant and equipment, net $ 4,096 $ 3,927

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 : In millions Components Electrified Power Distribution Power Systems Engine Segment Total Unallocated Total Balance at December 31, 2016 $ 386 $ — $ 79 $ 9 $ 6 $ 480 $ — $ 480 Acquisitions 544 (1) — — — — 544 47 (2) 591 Translation and other 10 — — 1 — 11 — 11 Balance at December 31, 2017 940 — 79 10 6 1,035 47 1,082 Acquisitions — 49 (1) — — — 49 — 49 Translation and other (5 ) — — — — (5 ) — (5 ) Allocation to segment — 47 (2) — — — 47 (47 ) — Balance at December 31, 2018 $ 935 $ 96 $ 79 $ 10 $ 6 $ 1,126 $ — $ 1,126 ____________________________________________________ (1) See Note 19 , " ACQUISITIONS ," for additional information on acquisition goodwill. (2) Goodwill associated with the Brammo Inc. acquisition was presented as an unallocated item as it had not yet been assigned to a reportable segment at December 31, 2017. Effective January 1, 2018, Brammo Inc. was assigned to our new Electrified Power segment. See Note 19 , " ACQUISITIONS
Summary of other intangible assets with finite useful lives that are subject to amortization	The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: December 31, In millions 2018 2017 Software $ 662 $ 718 Less: Accumulated amortization (372 ) (386 ) Software, net 290 332 Trademarks, patents, customer relationships and other 803 786 Less: Accumulated amortization (184 ) (145 ) Trademarks, patents, customer relationships and other, net 619 641 Total other intangible assets, net $ 909 $ 973
Projected amortization expense of intangible assets	The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows: In millions 2019 2020 2021 2022 2023 Projected amortization expense $ 125 $ 114 $ 93 $ 73 $ 56

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	12 Months Ended
	Dec. 31, 2018
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 product campaigns, was as follows: December 31, In millions 2018 2017 2016 Balance, beginning of year $ 1,687 $ 1,414 $ 1,404 Provision for warranties issued 918 557 334 Deferred revenue on extended warranty contracts sold 293 240 231 Payments made during period (443 ) (398 ) (385 ) Amortization of deferred revenue on extended warranty contracts (244 ) (219 ) (201 ) Changes in estimates for pre-existing warranties 3 85 44 Foreign currency translation and other (6 ) 8 (13 ) Balance, end of year $ 2,208 $ 1,687 $ 1,414
Deferred Revenue Extended Coverage and Base Warranty Liability, Disclosure	Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Consolidated Balance Sheets were as follows: December 31, In millions 2018 2017 Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 227 $ 231 Current portion of deferred revenue Long-term portion 587 536 Deferred revenue Total $ 814 $ 767 Base product warranty Current portion $ 654 $ 454 Current portion of accrued product warranty Long-term portion 740 466 Accrued product warranty Total $ 1,394 $ 920 Total warranty accrual $ 2,208 $ 1,687

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2018
Short-term Debt [Line Items]
Summary of long-term debt	December 31, In millions 2018 2017 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 Other debt 64 76 Unamortized discount (52 ) (54 ) Fair value adjustments due to hedge on indebtedness 25 35 Capital leases 132 121 Total long-term debt 1,642 1,651 Less: Current maturities of long-term debt 45 63 Long-term debt $ 1,597 $ 1,588
Principal repayments on long-term debt	Principal payments required on long-term debt during the next five years are as follows: In millions 2019 2020 2021 2022 2023 Principal payments $ 45 $ 13 $ 39 $ 9 $ 506
Schedule of Interest Rate Derivatives	The following table summarizes these gains and losses for the years presented below: Years ended December 31, In millions 2018 2017 2016 Income Statement Classification Gain/(Loss) on Swaps Gain/(Loss) on Borrowings Gain/(Loss) on Swaps Gain/(Loss) on Borrowings Gain/(Loss) on Gain/(Loss) on Interest expense (1) $ (8 ) $ 7 $ (7 ) $ 8 $ (8 ) $ 12 ___________________________________________________________ (1) The difference between the gain/(loss) on swaps and borrowings represents hedge ineffectiveness.
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 values and carrying values of total debt, including current maturities, were as follows: December 31, In millions 2018 2017 Fair values of total debt (1) $ 2,679 $ 2,301 Carrying values of total debt 2,476 2,006 ___________________________________________ (1) The fair value of debt is derived from Level 2 inputs.
Loans Payable
Short-term Debt [Line Items]
Weighted-average interest rate	The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows: Loans Payable 2018 2017 2016 Weighted-average interest rate 4.66 % 3.01 % 4.20 %
Commercial Paper
Short-term Debt [Line Items]
Weighted-average interest rate	The weighted-average interest rate for commercial paper at December 31 was as follows: Commercial Paper 2018 2017 2016 Weighted-average interest rate 2.59 % 1.56 % 0.79 %

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	12 Months Ended
	Dec. 31, 2018
Pension and other postretirement benefits
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets	The following table presents information regarding total accumulated benefit obligation (ABO), the ABO and fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets and the PBO and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2018 2017 2018 2017 Total accumulated benefit obligation $ 2,544 $ 2,745 $ 1,473 $ 1,569 Plans with accumulated benefit obligation in excess of plan assets Accumulated benefit obligation 304 323 — — Plans with projected benefit obligation in excess of plan assets Projected benefit obligation 322 344 — —
Pension Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at the beginning of the year $ 2,765 $ 2,661 $ 1,662 $ 1,451 Service cost 120 107 29 26 Interest cost 98 106 41 40 Actuarial (gain) loss (212 ) 61 (46 ) 53 Benefits paid from fund (193 ) (155 ) (62 ) (54 ) Benefits paid directly by employer (16 ) (15 ) — — Plan amendment — — 15 (1) — Exchange rate changes — — (89 ) 146 Benefit obligation at end of year $ 2,562 $ 2,765 $ 1,550 $ 1,662 Change in plan assets Fair value of plan assets at beginning of year $ 3,166 $ 2,751 $ 1,960 $ 1,753 Actual return on plan assets (36 ) 351 (33 ) 78 Employer contributions — 219 21 9 Benefits paid (193 ) (155 ) (62 ) (54 ) Exchange rate changes — — (104 ) 174 Fair value of plan assets at end of year $ 2,937 $ 3,166 $ 1,782 $ 1,960 Funded status (including unfunded plans) at end of year $ 375 $ 401 $ 232 $ 298 Amounts recognized in consolidated balance sheets Pension assets - long-term $ 697 $ 745 $ 232 $ 298 Accrued compensation, benefits and retirement costs - current liabilities (14 ) (14 ) — — Pensions - long-term liabilities (308 ) (330 ) — — Net amount recognized $ 375 $ 401 $ 232 $ 298 Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ 635 $ 649 $ 230 $ 207 Prior service cost 8 8 16 — Net amount recognized $ 643 $ 657 $ 246 $ 207 ___________________________________________________________ (1) Guaranteed minimum pension benefits to equalize certain pension benefits between men and women per the United Kingdom court decision.
Schedule of Net Benefit Costs	The following table presents the net periodic pension cost under our plans for the years ended December 31: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2018 2017 2016 2018 2017 2016 Service cost $ 120 $ 107 $ 90 $ 29 $ 26 $ 21 Interest cost 98 106 109 41 40 50 Expected return on plan assets (196 ) (204 ) (201 ) (69 ) (70 ) (71 ) Amortization of prior service cost 1 — — — — — Recognized net actuarial loss 33 37 29 29 40 15 Net periodic pension cost $ 56 $ 46 $ 27 $ 30 $ 36 $ 15
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows: In millions 2018 2017 2016 Recognized net actuarial loss $ (62 ) $ (77 ) $ (44 ) Incurred actuarial loss (gain) 91 (40 ) 107 Foreign exchange translation adjustments (5 ) 30 (28 ) Total recognized in other comprehensive loss (income) $ 24 $ (87 ) $ 35 Total recognized in net periodic pension cost and other comprehensive loss (income) $ 110 $ (5 ) $ 77
Schedule of Assumptions Used	The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2018 2017 2018 2017 Discount rate 4.36 % 3.66 % 2.80 % 2.55 % Cash balance crediting rate 4.03 % 4.27 % — — Compensation increase rate 3.00 % 2.99 % 3.75 % 3.75 % Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2018 2017 2016 2018 2017 2016 Discount rate 3.66 % 4.12 % 4.47 % 2.55 % 2.70 % 3.95 % Expected return on plan assets 6.50 % 7.25 % 7.50 % 4.00 % 4.50 % 4.70 % Compensation increase rate 3.00 % 4.87 % 4.87 % 3.75 % 3.75 % 3.75 %
Schedule of Expected Benefit Payments	The table below presents expected future benefit payments under our pension plans: Qualified and Non-Qualified Pension Plans In millions 2019 2020 2021 2022 2023 2024 - 2028 Expected benefit payments $ 244 $ 246 $ 250 $ 257 $ 259 $ 1,342
Other Postretirement Benefit Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows: December 31, In millions 2018 2017 Change in benefit obligation Benefit obligation at the beginning of the year $ 318 $ 364 Interest cost 11 14 Plan participants' contributions 21 24 Actuarial gain (51 ) (35 ) Benefits paid directly by employer (53 ) (49 ) Benefit obligation at end of year $ 246 $ 318 Funded status at end of year $ (246 ) $ (318 ) Amounts recognized in consolidated balance sheets Accrued compensation, benefits and retirement costs - current liabilities $ (22 ) $ (29 ) Postretirement benefits other than pensions-long-term liabilities (224 ) (289 ) Net amount recognized $ (246 ) $ (318 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial (gain) loss $ (24 ) $ 27 Prior service credit (4 ) (4 ) Net amount recognized $ (28 ) $ 23
Schedule of Net Benefit Costs	The following table presents the net periodic OPEB cost under our plans: Years ended December 31, In millions 2018 2017 2016 Interest cost $ 11 $ 14 $ 16 Recognized net actuarial loss — 6 5 Net periodic other postretirement benefit cost $ 11 $ 20 $ 21
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 were as follows: Years ended December 31, In millions 2018 2017 2016 Recognized net actuarial loss $ — $ (6 ) $ (6 ) Incurred actuarial (gain) loss (51 ) (35 ) 9 Total recognized in other comprehensive (income) loss $ (51 ) $ (41 ) $ 3 Total recognized in net periodic other postretirement benefit cost and other comprehensive (income) loss $ (40 ) $ (21 ) $ 24
Schedule of Assumptions Used	The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows: 2018 2017 Discount rate 4.25 % 3.55 % 2018 2017 2016 Discount rate 3.55 % 4.00 % 4.35 %
Schedule of Expected Benefit Payments	The table below presents expected benefit payments under our OPEB plans: In millions 2019 2020 2021 2022 2023 2024 - 2028 Expected benefit payments $ 24 $ 23 $ 22 $ 22 $ 21 $ 90
UNITED STATES
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	The primary investment objective is to exceed, on a net-of-fee basis, the rate of return of a policy portfolio comprised of the following: Asset Class Target Range U.S. equities 7.0 % +5.0/ -5.0% Non-U.S. equities 2.0 % +3.0/ -2.0% Global equities 6.0 % +3.0/ -3.0% Total equities 15.0 % Real estate 6.5 % +3.5/ -6.5% Private equity/venture capital 6.5 % +3.5/ -6.5% Opportunistic credit 4.0 % +6.0/ -4.0% Fixed income 68.0 % +5.0/ -5.0% Total 100.0 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.S. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2018 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 77 $ — $ — $ 77 Non-U.S. 42 — — 42 Fixed income Government debt — 38 — 38 Corporate debt U.S. — 323 — 323 Non-U.S. — 15 — 15 Asset/mortgaged backed securities — 5 — 5 Net cash equivalents (1) 175 17 — 192 Private equity and real estate (3) — — 316 316 Net plan assets subject to leveling $ 294 $ 398 $ 316 $ 1,008 Pending trade/purchases/sales 9 Accruals (4) 5 Investments measured at net asset value 1,915 Net plan assets $ 2,937 Fair Value Measurements at December 31, 2017 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 102 $ — $ — $ 102 Non-U.S. 56 — — 56 Fixed income Government debt — 691 — 691 Corporate debt U.S. — 590 — 590 Non-U.S. — 73 — 73 Asset/mortgage backed securities — 78 — 78 Net cash equivalents (1) 50 25 — 75 Derivative instruments (2) — 3 — 3 Private equity and real estate (3) — — 246 246 Net plan assets subject to leveling $ 208 $ 1,460 $ 246 $ 1,914 Pending trade/purchases/sales (96 ) Accruals (4) 12 Investments measured at net asset value 1,336 Net plan assets $ 3,166 ____________________________________________________ (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) Derivative instruments include interest rate swaps and credit default swaps. (3) The instruments in private equity and real estate, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. (4) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Private Equity Real Estate Total Balance at December 31, 2016 $ 148 $ 64 $ 212 Actual return on plan assets Unrealized gains on assets still held at the reporting date 24 5 29 Purchases, sales and settlements, net 8 (3 ) 5 Balance at December 31, 2017 180 66 246 Actual return on plan assets Unrealized gains on assets still held at the reporting date 33 6 39 Purchases, sales and settlements, net 34 (3 ) 31 Balance at December 31, 2018 $ 247 $ 69 $ 316
UNITED KINGDOM
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	To achieve these objectives we have established the following targets: Asset Class Target Global equities 23.0 % Real estate/private markets 5.0 % Reinsurance 8.0 % Corporate credit instruments 7.5 % Fixed income 56.5 % Total 100.0 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.K. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2018 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ — $ 47 $ — $ 47 Non-U.S. — 61 — 61 Fixed income Net cash equivalents (1) 12 — — 12 Private equity, real estate and insurance (2) — — 686 686 Net plan assets subject to leveling $ 12 $ 108 $ 686 $ 806 Investments measured at net asset value 976 Net plan assets $ 1,782 Fair Value Measurements at December 31, 2017 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ — $ 63 $ — $ 63 Non-U.S. — 91 — 91 Fixed income Net cash equivalents (1) 29 — — 29 Private equity, real estate and insurance (2) — — 671 671 Net plan assets subject to leveling $ 29 $ 154 $ 671 $ 854 Investments measured at net asset value 1,106 Net plan assets $ 1,960 _____________________________________________________ (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private equity, real estate and insurance funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Insurance Real Estate Private Equity Total Balance at December 31, 2016 $ 439 $ 57 $ 117 $ 613 Actual return on plan assets Unrealized gains on assets still held at the reporting date 38 10 28 76 Purchases, sales and settlements, net — (8 ) (10 ) (18 ) Balance at December 31, 2017 477 59 135 671 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (35 ) (2 ) 21 (16 ) Purchases, sales and settlements, net — — 31 31 Balance at December 31, 2018 $ 442 $ 57 $ 187 $ 686

OTHER LIABILITIES AND DEFERRE_2

OTHER LIABILITIES AND DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Schedule of Accrued Liabilities	Other accrued expenses included the following: December 31, In millions 2018 2017 Marketing accruals $ 199 $ 146 Other taxes payable 196 197 Income taxes payable 97 77 Other 360 495 Other accrued expenses $ 852 $ 915
Other Noncurrent Liabilities	Other liabilities included the following: December 31, In millions 2018 2017 Income tax payable (1) $ 293 $ 281 Deferred income taxes 263 391 Accrued compensation 173 151 Other long-term liabilities 163 134 Other liabilities $ 892 $ 957 ____________________________________________________ (1) Long-term income taxes payable are the result of Tax Legislation and relate to the non-current portion of the one-time transition tax on accumulated foreign earnings. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Rent expense under these leases	Rent expense under these leases was as follows: Years ended December 31, In millions 2018 2017 2016 Rent expense $ 217 $ 215 $ 210
Schedule of capital leases by major property class	The following is a summary of the leased property under capital leases by major classes: December 31, In millions 2018 2017 Building $ 180 $ 158 Equipment 92 94 Land 15 16 Less: Accumulated depreciation (152 ) (137 ) Total $ 135 $ 131
Future minimum lease payments due under capital and operating leases	Following is a summary of the future minimum lease payments due under capital and operating leases with terms of more than one year at December 31, 2018 , together with the net present value of the minimum payments due under capital leases: In millions Capital Leases Operating Leases 2019 $ 30 $ 138 2020 21 109 2021 16 81 2022 14 60 2023 13 39 After 2023 144 81 Total minimum lease payments $ 238 $ 508 Interest (106 ) Present value of net minimum lease payments $ 132

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans	Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans were as follows: In millions Common Treasury Common Stock Balance at December 31, 2015 222.4 47.2 0.9 Shares acquired — 7.3 — Shares issued — (0.3 ) (0.2 ) Balance at December 31, 2016 222.4 54.2 0.7 Shares acquired — 2.9 — Shares issued — (0.4 ) (0.2 ) Balance at December 31, 2017 222.4 56.7 0.5 Shares acquired — 7.9 — Shares issued — (0.2 ) (0.1 ) Balance at December 31, 2018 222.4 64.4 0.4
Repurchases of common stock	For the year ended December 31, 2018, we made the following purchases under our stock repurchase programs: In millions (except per share amounts) For each quarter ended 2018 Shares Purchased Average Cost Per Share Total Cost of Repurchases Cash Paid for Shares Not Received Remaining Authorized Capacity (1) November 2015, $1 billion repurchase program April 1 0.3 $ 166.79 $ 46 $ — $ — December 2016, $1 billion repurchase program April 1 0.7 $ 164.48 $ 117 $ 883 July 1 1.5 143.69 216 667 September 30 2.8 143.58 400 100 167 December 31 1.9 139.67 267 (100 ) — Subtotal 6.9 144.68 1,000 — — October 2018, $2 billion repurchase program December 31 0.7 $ 139.85 $ 94 $ 1,906 Total 7.9 $ 145.05 $ 1,140 $ — ___________________________________________ (1) The remaining authorized capacity under these plans was calculated based on the cost to purchase the shares but excludes commission expenses in accordance with the authorized plan.
Dividends per share paid to common shareholders	Cash dividends per share paid to common shareholders for the last three years were as follows: Quarterly Dividends 2018 2017 2016 First quarter $ 1.08 $ 1.025 $ 0.975 Second quarter 1.08 1.025 0.975 Third quarter 1.14 1.08 1.025 Fourth quarter 1.14 1.08 1.025 Total $ 4.44 $ 4.21 $ 4.00

OTHER COMPREHENSIVE INCOME (L_2

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Changes in accumulated other comprehensive income (loss) by component	Following are the changes in accumulated other comprehensive income (loss) by component: In millions Change in pensions and other postretirement defined benefit plans Foreign currency translation adjustment Unrealized gain (loss) on marketable securities (1) Unrealized gain (loss) on derivatives Total attributable to Cummins Inc. Noncontrolling interests Total Balance at December 31, 2015 $ (654 ) $ (696 ) $ (2 ) $ 4 $ (1,348 ) Other comprehensive income before reclassifications Before tax amount (111 ) (469 ) 1 (38 ) (617 ) $ (17 ) $ (634 ) Tax benefit 44 38 — 6 88 — 88 After tax amount (67 ) (431 ) 1 (32 ) (529 ) (17 ) (546 ) Amounts reclassified from accumulated other comprehensive income (2) 36 — — 20 56 — 56 Net current period other comprehensive income (loss) (31 ) (431 ) 1 (12 ) (473 ) $ (17 ) $ (490 ) Balance at December 31, 2016 $ (685 ) $ (1,127 ) $ (1 ) $ (8 ) $ (1,821 ) Other comprehensive income before reclassifications Before tax amount 73 335 2 (12 ) 398 $ 20 $ 418 Tax benefit (expense) (36 ) (20 ) — 5 (51 ) — (51 ) After tax amount 37 315 2 (7 ) 347 20 367 Amounts reclassified from accumulated other comprehensive income (2) 62 — — 12 74 — 74 Impact of tax legislation (Note 4) (103 ) (3) — — — (103 ) — (103 ) Net current period other comprehensive income (loss) (4 ) 315 2 5 318 $ 20 $ 338 Balance at December 31, 2017 $ (689 ) $ (812 ) $ 1 $ (3 ) $ (1,503 ) Other comprehensive income before reclassifications Before tax amount (42 ) (333 ) 2 21 (352 ) $ (30 ) $ (382 ) Tax benefit (expense) 7 7 — (7 ) 7 — 7 After tax amount (35 ) (326 ) 2 14 (345 ) (30 ) (375 ) Amounts reclassified from accumulated other comprehensive income (2) 53 — (3 ) (9 ) 41 1 42 Net current period other comprehensive income (loss) 18 (326 ) (1 ) 5 (304 ) $ (29 ) $ (333 ) Balance at December 31, 2018 $ (671 ) $ (1,138 ) $ — $ 2 $ (1,807 ) _______________________________________________________________________ (1) Effective January 1, 2018 and forward, unrealized gains and losses, net of tax for equity securities are reported in "Other income, net" on the Consolidated Statements of Income instead of comprehensive income. Unrealized gains and losses for debt securities will continue to be reported in comprehensive income. See NOTE 1 , " SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ," " RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS " section for additional information. (2) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. (3) Impact of tax legislation includes $(126) million related to Tax Legislation and $23 million related to 2017 activity. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information .

STOCK INCENTIVE AND STOCK OPT_2

STOCK INCENTIVE AND STOCK OPTION PLANS (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Activity in stock option plans	The tables below summarize the employee share-based activity in the Plan: Options Weighted-average Exercise Price Weighted-average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in millions) Balance at December 31, 2015 2,029,686 $ 115.02 Granted 984,430 109.24 Exercised (215,890 ) 87.27 Forfeited (63,462 ) 119.56 Balance at December 31, 2016 2,734,764 115.02 Granted 648,900 149.98 Exercised (355,479 ) 105.91 Forfeited (126,816 ) 125.65 Balance at December 31, 2017 2,901,369 123.49 Granted 515,320 159.06 Exercised (140,133 ) 88.74 Forfeited (32,894 ) 133.00 Balance at December 31, 2018 3,243,662 $ 130.55 6.7 $ 37 Exercisable, December 31, 2016 1,149,549 $ 104.19 4.8 $ 38 Exercisable, December 31, 2017 1,063,889 $ 115.26 4.7 $ 66 Exercisable, December 31, 2018 1,366,722 $ 124.97 4.7 $ 18
Weighted-average grant date fair value of performance and restricted shares	The weighted-average grant date fair value of performance and restricted shares was as follows: Performance Shares Restricted Shares Nonvested Shares Weighted-average Shares Weighted-average Balance at December 31, 2015 420,369 $ 123.88 4,254 $ 111.40 Granted 169,150 98.26 8,089 117.69 Vested (115,680 ) 106.55 (2,502 ) 114.57 Forfeited (69,345 ) 110.52 — — Balance at December 31, 2016 404,494 120.41 9,841 115.76 Granted 150,225 138.23 — — Vested (85,020 ) 141.50 (1,752 ) 106.89 Forfeited (58,460 ) 132.52 — — Balance at December 31, 2017 411,239 120.84 8,089 117.68 Granted 124,700 146.50 — — Vested (80,996 ) 128.47 (2,696 ) 117.68 Forfeited (44,593 ) 127.90 — — Balance at December 31, 2018 410,350 $ 126.36 5,393 $ 117.68
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: 2018 2017 2016 Expected life (years) 6 6 5 Risk-free interest rate 2.72 % 2.08 % 1.34 % Expected volatility 25.40 % 29.97 % 30.96 % Dividend yield 2.48 % 2.28 % 2.10 %

NONCONTROLLING INTERESTS (Table

NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Dec. 31, 2018
Noncontrolling Interest [Abstract]
Noncontrolling interests in the equity of consolidated subsidiaries	Noncontrolling interests in the equity of consolidated subsidiaries were as follows: December 31, In millions 2018 2017 Eaton Cummins Automated Transmission Technologies (1) $ 602 $ 609 Cummins India Ltd. (2) 293 280 Other 16 16 Total $ 911 $ 905 ____________________________________________________ (1) See Note 19 , " ACQUISITIONS ," for additional information. (2) Noncontrolling interest for Cummins India Ltd. increased $24 million and decreased $43 million in 2018 and 2017, respectively, primarily due to withholding taxes on foreign earnings as a result of Tax Legislation. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information .

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Computations for basic and diluted earnings per share	Following are the computations for basic and diluted earnings per share: Years ended December 31, Dollars in millions, except per share amounts 2018 2017 2016 Net income attributable to Cummins Inc. $ 2,141 $ 999 $ 1,394 Weighted-average common shares outstanding Basic 162,172,831 166,625,320 169,038,410 Dilutive effect of stock compensation awards 600,516 645,545 298,206 Diluted 162,773,347 167,270,865 169,336,616 Earnings per common share attributable to Cummins Inc. Basic $ 13.20 $ 5.99 $ 8.25 Diluted 13.15 5.97 8.23
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share were as follows: Years ended December 31, 2018 2017 2016 Options excluded 969,385 31,991 1,091,799

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	Acquisitions for the years ended December 31, 2018 , 2017 and 2016 were as follows: Entity Acquired (Dollars in millions) Date of Acquisition Additional Percent Interest Acquired Payments to Former Owners Acquisition Related Debt Retirements Total Purchase Consideration Type of Acquisition (1) Gain Recognized (1) Goodwill Acquired Intangibles Recognized (2) Net Sales Previous Fiscal Year Ended 2018 Efficient Drivetrains, Inc. 08/15/18 100% $ 51 $ 2 $ 64 (3) COMB — $ 49 $ 15 $ 3 Johnson Matthey Battery Systems, Ltd. 01/31/18 100% 9 — 9 COMB — — 5 3 2017 Brammo Inc. 11/01/17 100% $ 60 $ — $ 68 (3) COMB $ — $ 47 $ 23 $ 4 Eaton Cummins Automated Transmission Technologies 07/31/17 50% 600 (4) — 600 COMB — 544 596 — (4) 2016 Wuxi Cummins Turbo Technologies Co. Ltd 12/05/16 45% $ 86 $ — $ 86 EQUITY $ — $ — $ — $ — Cummins Pacific LLC 10/04/16 50% 32 67 99 COMB 15 4 8 391 (5) Cummins Northeast LLC 01/01/16 35% 12 — 12 EQUITY — — — — ____________________________________________________ (1) All results from acquired entities (excluding Brammo Inc. in 2017) 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 . The Brammo Inc. acquisition was allocated to the newly formed Electrified Power Segment on January 1, 2018. (2) Intangible assets acquired in business combinations were mostly customer and technology related, the majority of which will be amortized over a period of`up to 25 years from the date of the acquisition. (3) The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. 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 Brammo Inc. acquisition contains an earnout based on future results of the acquired business and could result in a maximum contingent consideration payment of $100 million (fair value of $5 million) to the former owners. (4) This transaction created a newly formed joint venture that we consolidated. See additional information below. (5) 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.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	The final purchase price allocation was as follows: In millions Inventory $ 3 Fixed assets 58 Intangible assets Customer relationships 424 Technology 172 Goodwill 544 Liabilities (1 ) Total business valuation 1,200 Less: Noncontrolling interest 600 Total purchase consideration $ 600

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Financial information regarding reportable operating segments	Summarized financial information regarding our reportable operating segments at December 31, is shown in the table below: In millions Engine Distribution Components (1) Power Systems Electrified Power Total Segments Intersegment Eliminations (2) Total 2018 External sales $ 8,002 $ 7,807 $ 5,331 $ 2,625 $ 6 $ 23,771 $ — $ 23,771 Intersegment sales 2,564 21 1,835 2,001 1 6,422 (6,422 ) — Total sales 10,566 7,828 7,166 4,626 7 30,193 (6,422 ) 23,771 Research, development and engineering expenses 311 20 272 230 69 902 — 902 Equity, royalty and interest income from investees 238 46 54 56 — 394 — 394 Interest income 11 13 5 6 — 35 — 35 Segment EBITDA 1,446 563 1,030 614 (90 ) 3,563 (87 ) 3,476 Depreciation and amortization (3) 190 109 185 119 6 609 — 609 Net assets (4) 1,265 2,677 2,878 2,262 138 9,220 — 9,220 Investments and advances to equity investees 561 278 206 177 — 1,222 — 1,222 Capital expenditures 254 133 182 129 11 709 — 709 2017 External sales $ 6,661 $ 7,029 $ 4,363 $ 2,375 $ — $ 20,428 $ — $ 20,428 Intersegment sales 2,292 29 1,526 1,683 — 5,530 (5,530 ) — Total sales 8,953 7,058 5,889 4,058 — 25,958 (5,530 ) 20,428 Research, development and engineering expenses 280 19 241 214 — 754 — 754 Equity, royalty and interest income from investees (5) 219 44 40 54 — 357 — 357 Interest income 6 6 3 3 — 18 — 18 Loss contingency (6) 5 — — — — 5 — 5 Segment EBITDA 1,143 500 917 411 — 2,971 55 3,026 Depreciation and amortization (3) 184 116 163 117 — 580 — 580 Net assets (4) 1,180 2,446 2,811 2,137 — 8,574 — 8,574 Investments and advances to equity investees 531 267 194 164 — 1,156 — 1,156 Capital expenditures 188 101 127 90 — 506 — 506 (Table continued on next page) In millions Engine Distribution Components Power Systems Electrified Power Total Segments Intersegment Eliminations (2) Total 2016 External sales $ 5,774 $ 6,157 $ 3,514 $ 2,064 $ — $ 17,509 $ — $ 17,509 Intersegment sales 2,030 24 1,322 1,453 — 4,829 (4,829 ) — Total sales 7,804 6,181 4,836 3,517 — 22,338 (4,829 ) 17,509 Research, development and engineering expenses 227 13 208 189 — 637 — 637 Equity, royalty and interest income from investees 148 70 41 42 — 301 — 301 Interest income 10 4 4 5 — 23 — 23 Loss contingency (6) 138 — — — — 138 — 138 Segment EBITDA 849 508 (7) 774 378 (8) — 2,509 17 2,526 Depreciation and amortization (3) 163 116 133 115 — 527 — 527 Net assets (4) 1,334 2,157 1,643 2,202 — 7,336 — 7,336 Investments and advances to equity investees 427 204 176 139 — 946 — 946 Capital expenditures 200 96 143 92 — 531 — 531 ____________________________________________________ (1) Includes Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See Note 19 , " ACQUISITIONS ," for additional information. (2) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the years ended 2018, 2017 and 2016, respectively. (3) 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 $2 million , $3 million and $3 million for the years ended 2018, 2017 and 2016, respectively. A portion of depreciation expense is included in "Research, development and engineering expense." (4) In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level. (5) U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million , $4 million and $12 million for the Engine, Distribution and Components segments, respectively. See Note 4 , " INCOME TAXES ," for additional information. (6) See Note 9 , " PRODUCT WARRANTY LIABILITY ," for additional information. (7) Distribution segment EBITDA included gains on the fair value adjustment resulting from the acquisition of controlling interests in North American distributors of $15 million for the year ended December 31, 2016 . See Note 19 , " ACQUISITIONS ," for additional information. (8) Power Systems segment EBITDA included a $17 million gain on the sale of an equity investee for the year ended December 31, 2016. See Note 3 , " INVESTMENTS IN EQUITY INVESTEES
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Consolidated Statements of Income is shown in the table below: Years ended December 31, In millions 2018 2017 2016 Total EBITDA $ 3,476 $ 3,026 $ 2,526 Less: Depreciation and amortization 609 $ 580 527 Interest expense 114 $ 81 $ 69 Income before income taxes $ 2,753 $ 2,365 $ 1,930
Reconciliation of segment information from net assets to total assets	A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below: December 31, In millions 2018 2017 2016 Net assets for operating segments (1) $ 9,220 $ 8,574 $ 7,336 Cash, cash equivalents and marketable securities 1,525 1,567 1,380 Brammo Inc. assets — 72 (2) — Liabilities deducted in arriving at net assets 7,836 7,398 6,157 Pension and other postretirement benefit adjustments excluded from net assets 68 156 (284 ) Deferred tax assets not allocated to segments 410 306 420 Deferred debt costs not allocated to segments 3 2 2 Total assets $ 19,062 $ 18,075 $ 15,011 ____________________________________________________ (1) In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level. (2) Assets associated with the Brammo Inc. acquisition were presented as a reconciling item as Brammo Inc. had not yet been assigned to a reportable segment at December 31, 2017. See Note 19 , " ACQUISITIONS
Long-lived assets attributed to geographic areas	Long-lived segment assets by geographic area were as follows: December 31, In millions 2018 2017 2016 United States $ 3,174 $ 3,157 $ 3,092 China 823 795 652 India 577 563 475 United Kingdom 337 339 254 Netherlands 234 221 197 Mexico 171 136 131 Canada 114 116 132 Brazil 104 149 149 Other international countries 329 293 236 Total long-lived assets $ 5,863 $ 5,769 $ 5,318

QUARTERLY FINANCIAL INFORMATI_2

QUARTERLY FINANCIAL INFORMATION DISCLOSURE (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information	First Quarter Second Quarter Third Quarter Fourth Quarter In millions, except per share amounts 2018 Net sales $ 5,570 $ 6,132 $ 5,943 $ 6,126 Gross margin 1,200 (1 ) 1,440 (1 ) 1,551 1,546 Net income attributable to Cummins Inc. (2) 325 (1 ) 545 (1 ) 692 579 Earnings per common share attributable to Cummins Inc.—basic (2) (3) $ 1.97 (1 ) $ 3.33 (1 ) $ 4.29 $ 3.65 Earnings per common share attributable to Cummins Inc.—diluted (2) (3) 1.96 (1 ) 3.32 (1 ) 4.28 3.63 Cash dividends per share 1.08 1.08 1.14 1.14 Stock price per share High $ 194.18 $ 172.08 $ 151.87 $ 156.49 Low 154.58 131.58 129.90 124.40 2017 Net sales $ 4,589 $ 5,078 $ 5,285 $ 5,476 Gross margin 1,132 1,251 1,341 1,376 Net income (loss) attributable to Cummins Inc. 396 424 453 (274 ) (2) Earnings (loss) per common share attributable to Cummins Inc.—basic (3) $ 2.36 $ 2.53 $ 2.72 $ (1.66 ) (2) Earnings (loss) per common share attributable to Cummins Inc.—diluted (3) 2.36 2.53 2.71 (1.65 ) (2) Cash dividends per share 1.025 1.025 1.08 1.08 Stock price per share High $ 155.51 $ 164.23 $ 170.68 $ 181.79 Low 134.06 143.83 150.25 158.75 ___________________________________________________ (1) Gross margin, net income attributable to Cummins Inc. and earnings per share were negatively impacted by an Engine Campaign charge of $187 million ( $144 million after tax) in the first quarter ( $0.87 per basic and diluted share). The second quarter was negatively impacted by an additional charge of $181 million ( $139 million after tax) ( $0.85 per basic and diluted share). In 2017, a charge of $29 million ( $21 million after tax) ( $0.13 per basic and diluted share) was recorded in the third quarter. (2) Net income attributable to Cummins Inc., basic and diluted earnings per share were impacted by Tax Legislation adjustments. Net income attributable to Cummins Inc. was reduced by $74 million and $8 million , in the first and second quarter, respectively, while it increased in the third and fourth quarter $33 million and $10 million , respectively. Basic and diluted earnings per share were reduced by $0.45 per share and $0.05 per share in the first and second quarter, respectively, while they increased in the third and fourth quarter by $0.20 per share and $0.06 per share , respectively. Net income attributable to Cummins Inc. and earnings per share were negatively impacted by $777 million related to Tax Legislation. For the fourth quarter of 2017, results for basic and diluted earnings per share were reduced by $4.70 per share and $4.68 per share , respectively, due to tax reform. (3) Earnings per share in each quarter is computed using the weighted-average number of shares outstanding during that quarter while earnings per share for the full year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the four quarters earnings per share may not equal the full year earnings per share.

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) Nature of Operations, Equity Investments	12 Months Ended
	Dec. 31, 2018countrylocation
Accounting Policies [Abstract]
Company owned and independent distributor locations	600
Dealer locations	7,600
Countries and territories located in | country	190
Minimum
Investments in Equity Investees
Percentage of equity method investment ownership	20.00%
Maximum
Investments in Equity Investees
Percentage of equity method investment ownership	50.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) Revenue recognition - USD ($) $ in Millions		Jan. 01, 2018	Dec. 31, 2018
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount			$ 710
Unbilled revenue		$ 6	64
Deferred revenue, primarily extended warranty		1,052	1,156
Revenue Recognized	[1]	$ 0	(361)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount			$ 211
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period			12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount			$ 499
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period			10 years
[1]	(1) Relates to year-to-date revenues recognized from amounts included in deferred revenue at the beginning of the year. Revenue recognized in the period from performance obligations satisfied in previous periods was immaterial.

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) Foreign Currency, Supp. Cash Flow, Allowance, Inventory - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]
Allowance for doubtful accounts receivable	$ 15	$ 16
Foreign Currency Translation [Abstract]
Foreign Currency Transaction Gain (Loss), before Tax	$ (34)	$ (6)	$ (12)
Inventory Disclosure [Abstract]
Percentage of total inventory values using LIFO	13.00%	12.00%
Supplemental Cash Flow Information [Abstract]
Cash payments for income taxes, net of refunds	$ 699	$ 622	430
Cash payments for interest, net of capitalized interest	$ 114	$ 82	$ 68

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) PP&E - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment
Depreciation expense on property, plant and equipment	$ 455	$ 467	$ 434
Minimum | Buildings
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	20 years
Minimum | Machinery, equipment and fixtures
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum | Buildings
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	40 years
Maximum | Machinery, equipment and fixtures
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	15 years

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) Goodwill - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount		21.00%
Goodwill	$ 1,126		$ 1,082	$ 480
Automated Transmission
Goodwill
Goodwill	$ 544
Reporting Unit Carrying Value		$ 1,200
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	48.00%
Aggregated Emission Solution and Filtration Reporting Unit
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	34.00%
Electrified Power
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	8.00%
Distribution
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	7.00%

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) Other Intangibles, Softare and R&D - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Research and Development
Research and development expenses, net of contract reimbursements	$ 894	$ 734	$ 616
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned	$ 120	$ 137	$ 131
Minimum | Other Intangible Assets
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	3 years
Minimum | Software
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum | Other Intangible Assets
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	25 years
Maximum | Software
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	12 years

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS - USD ($) $ in Millions	Jan. 01, 2019	Jan. 01, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			$ 30
ASU 2014-09 - Revenue Recognition
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In May 2014, the FASB amended its standards related to revenue recognition to replace all existing revenue recognition guidance and provide a single, comprehensive model for all contracts with customers. The revised standard contains principles to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that we recognize revenue to depict 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 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 the time value of money in the transaction price and allowing estimation 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 those judgments as well as assets recognized from costs incurred to fulfill these contracts.The standard allowed for either full or modified retrospective adoption effective for annual and interim periods beginning January 1, 2018 and we adopted using the modified retrospective approach. We elected to apply this guidance retrospectively only to contracts that were not completed at January 1, 2018.We identified a change in the manner in which we account for certain license income. We license certain technology to our unconsolidated joint ventures that meets the definition of functional under the standard, which requires that revenue be recognized at a point in time rather than the previous requirement of recognizing it over the license term. Using the modified retrospective adoption method, we recorded an adjustment to our opening equity balance at January 1, 2018, to account for the differences between existing license income recorded and what would have been recorded under the new standard for contracts for which we started recognizing revenue prior to the adoption date. There was not a material impact on any individual year from this change.We also identified transactions where revenue recognition was historically limited to the amount of billings not contingent on our future performance. With the allocation provisions of the new model, we accelerated the timing of revenue recognition for amounts related to satisfied performance obligations that would be delayed under the historical guidance. The impact of this change was not material.On an ongoing basis, this amendment is not expected to have a material impact on our Consolidated Financial Statements including our internal controls over financial reporting, but resulted in expanded disclosures in the Notes to our Consolidated Financial Statements.We recorded a net increase to opening retained earnings of $28 million, net of tax, as of January 1, 2018, due to the cumulative impact of adopting the new revenue standard, with the impact primarily related to our technology licenses that now qualify for point in time recognition rather than over time. The impact to any individual financial statement line item as a result of applying the new standard, as compared to the old standard, was not material for the year ended December 31, 2018.
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		$ 28
ASU 2018-14 - Compensation-Retirement Benefits-Defined Benefit Plans-General
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In August 2018, the FASB amended its standards related to the disclosures of pension and other postretirement benefit plans in the financial statements.  The amendments removed certain existing disclosure requirements and added the requirement to disclose an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  The amendments also clarified the existing disclosure requirements related to the projected benefit obligation (PBO), the fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets.  These amendments are required to be applied on a retrospective basis to all periods presented. We early adopted the amendments at December 31, 2018.
ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In March 2017, the FASB amended its standards related to the presentation of pension and other postretirement benefit costs in the financial statements beginning January 1, 2018. Under the new standard, we are required to separate service costs from all other elements of pension costs and reflect the other elements of pension costs outside of operating income in our Consolidated Statements of Income. In addition, the standard limits the amount eligible for capitalization (into inventory or self-constructed assets) to the amount of service cost. This portion of the standard was applied on a prospective basis. The remainder of the new standard was applied on a retrospective basis using a practical expedient as the estimation basis for the reclassification of prior period non-service cost components of net periodic benefit cost from operating income to non-operating income. As a result, we revised our Consolidated Statements of Income by the following amounts:  Favorable / (Unfavorable)In millions 2017 2016Cost of sales $10 $6Selling, general and administrative expenses (39) (53)Research, development and engineering expenses (2) (1)Total change in operating income (31) (48)Other non-operating income, net 31 48Total change in income before income taxes $— $—
ASU 2017-04 - Intangibles-Goodwill and Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In January 2017, the FASB amended its standards related to goodwill impairment testing to simplify the annual testing process. Under the amendment, the impairment of goodwill is now calculated as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. Step two of the former impairment model is no longer required. We early adopted this standard in the fourth quarter of 2018 as allowed by the amendment, in order to streamline our impairment testing process. The standard applies prospectively beginning with our assessments performed in the fourth quarter. As we did not have any impairments of goodwill during the year, adoption of the standard did not have an impact on our Consolidated Financial Statements.
ASU 2016-15 - Classification of Cash Receipts and Cash Payments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In August 2016, the FASB amended its standards related to the classification of certain cash receipts and cash payments which became effective for us beginning January 1, 2018. The new standard made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. Adoption of this standard did not have a material impact on our Consolidated Financial Statements.
ASU 2016-01 - Recognition and Measurement of Financial Assets and Liabilities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In January 2016, the FASB amended its standards related to the accounting for certain financial instruments which became effective for us beginning January 1, 2018. This amendment addresses certain aspects of recognition, measurement, presentation and disclosure. The standard resulted in a cumulative effect increase to opening retained earnings of $2 million in our Consolidated Financial Statements.
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		$ 2
ASU 2018-15 - Intangibles Goodwill and Other - Internal-Use Software
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In August 2018, the FASB issued a new standard that aligns the accounting for implementation costs incurred in a cloud computing arrangement accounted for as a service contract with the model currently used for internal use software costs. Under the new standard, costs that meet certain criteria will be required to be capitalized on the balance sheet and subsequently amortized over the term of the hosting arrangement. The standard is effective for us beginning on January 1, 2020, with early adoption permitted. The standard allows for either prospective or retrospective transition. We are still evaluating the impact of this standard on our financial statements.
ASU 2017-12 - Derivatives and Hedging
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In August 2017, the FASB amended its standards related to accounting for derivatives and hedging. These amendments allow the initial hedge effectiveness assessment to be performed by the end of the first quarter in which the hedge is designated rather than concurrently with entering into the hedge transaction. The changes also expand the use of a periodic qualitative hedge effectiveness assessment in lieu of an ongoing quantitative assessment performed throughout the life of the hedge. The revision removes the requirement to record ineffectiveness on cash flow hedges through the income statement when a hedge is considered highly effective, instead deferring all related hedge gains and losses in other comprehensive income until the hedged item impacts earnings. The modifications permit hedging the contractually-specified price of a component of a commodity purchase and revises certain disclosure requirements. The amendments are effective January 1, 2019. The revised standard is required to be adopted on a modified retrospective basis for any cash flow or net investment hedge relationships that exist on the date of adoption and prospectively for disclosures. We do not expect the amendments to have a material effect on our Consolidated Financial Statements.
ASU 2016-13 - Measurement of Credit Losses on Financial Instruments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In June 2016, the FASB amended its standards related to accounting for credit losses on financial instruments. This amendment introduces new guidance for accounting for credit losses on instruments including trade receivables and held-to-maturity debt securities. The new rules are effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We do not expect adoption of this standard to have a material impact on our Consolidated Financial Statements.
ASU 2016-02 - Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In February 2016, the FASB amended its standards related to the accounting for leases. Under the new standard, lessees will now be required to recognize substantially all leases on the balance sheet as both a right-of-use asset and a liability. The standard will continue to have two types of leases for income statement recognition purposes: operating leases and finance leases. Operating leases will result in the recognition of a single lease expense on a straight-line basis over the lease term similar to the treatment for operating leases under today's standards. Finance leases will result in an accelerated expense similar to the accounting for capital leases under today's standards. The determination of a lease classification as operating or finance will occur in a manner similar to today's standard. The new standard also contains amended guidance regarding the identification of embedded leases in service contracts and the identification of lease and non-lease components of an arrangement. The new standard is effective on January 1, 2019 and we will adopt on a modified retrospective basis with a cumulative effect adjustment, if any, to be recorded in retained earnings on January 1, 2019. We do not expect this adjustment to be material. Based on our current lease portfolio, adoption of the standard will result in an increase in operating lease assets and liabilities in a range of $445 million to $495 million with an immaterial impact on our Consolidated Statements of Income; however this estimate is subject to change as we finalize our implementation. We are implementing enhanced internal controls and a software solution to comply with the requirements of the standard.
Cost of Sales | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification				$ 10	$ 6
Selling, General and Administrative Expenses | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification				(39)	(53)
Research and Development Expense | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification				(2)	(1)
Total change in operating income | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification				(31)	(48)
Other non-operating income, net | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification				31	48
Total change in income before income taxes | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification				$ 0	$ 0
Minimum | ASU 2016-02 - Leases | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 445
Maximum | ASU 2016-02 - Leases | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 495

REVENUE RECOGNITION DISAGGREG_3

REVENUE RECOGNITION DISAGGREGATION OF REVENUE REVENUE RECOGNITION DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jul. 01, 2018

Apr. 01, 2018

Dec. 31, 2017

Oct. 01, 2017

Jul. 02, 2017

Apr. 02, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Disaggregation of Revenue [Line Items]

Net sales

$ 6,126

$ 5,943

$ 6,132

$ 5,570

$ 5,476

$ 5,285

$ 5,078

$ 4,589

$ 23,771

[1]

$ 20,428

[1]

$ 17,509

[1]

Heavy-duty truck

Disaggregation of Revenue [Line Items]

Net sales

2,885

Medium-duty truck and bus

Disaggregation of Revenue [Line Items]

Net sales

2,536

Light-duty automotive

Disaggregation of Revenue [Line Items]

Net sales

1,501

On-highway

Disaggregation of Revenue [Line Items]

Net sales

6,922

Off-highway

Disaggregation of Revenue [Line Items]

Net sales

1,080

Parts

Disaggregation of Revenue [Line Items]

Net sales

3,222

Engine Product Line

Disaggregation of Revenue [Line Items]

Net sales

1,632

Service

Disaggregation of Revenue [Line Items]

Net sales

1,471

DBU - Power Generation

Disaggregation of Revenue [Line Items]

Net sales

1,482

Emission solutions

Disaggregation of Revenue [Line Items]

Net sales

2,780

Filtration

Disaggregation of Revenue [Line Items]

Net sales

1,010

Turbo technologies

Disaggregation of Revenue [Line Items]

Net sales

761

Automated Transmission

Disaggregation of Revenue [Line Items]

Net sales

543

Electronics and Fuel systems

Disaggregation of Revenue [Line Items]

Net sales

237

PSBU - Power Generation

Disaggregation of Revenue [Line Items]

Net sales

1,467

Industrial

Disaggregation of Revenue [Line Items]

Net sales

801

Generator technologies

Disaggregation of Revenue [Line Items]

Net sales

357

Engine

Disaggregation of Revenue [Line Items]

Net sales

10,566

8,953

7,804

Distribution

Disaggregation of Revenue [Line Items]

Net sales

7,828

7,058

6,181

Components

Disaggregation of Revenue [Line Items]

Net sales

7,166

[2]

5,889

[2]

4,836

Power Systems

Disaggregation of Revenue [Line Items]

Net sales

4,626

4,058

3,517

External Sales

Disaggregation of Revenue [Line Items]

Net sales

23,771

20,428

17,509

External Sales | Engine

Disaggregation of Revenue [Line Items]

Net sales

8,002

6,661

5,774

External Sales | Distribution

Disaggregation of Revenue [Line Items]

Net sales

7,807

7,029

6,157

External Sales | Components

Disaggregation of Revenue [Line Items]

Net sales

5,331

[2]

4,363

[2]

3,514

External Sales | Power Systems

Disaggregation of Revenue [Line Items]

Net sales

2,625

2,375

2,064

UNITED STATES

Disaggregation of Revenue [Line Items]

Net sales

13,218

11,010

9,476

China

Disaggregation of Revenue [Line Items]

Net sales

2,324

2,137

1,544

China | Distribution

Disaggregation of Revenue [Line Items]

Net sales

317

India

Disaggregation of Revenue [Line Items]

Net sales

965

805

621

India | Distribution

Disaggregation of Revenue [Line Items]

Net sales

192

Non-US

Disaggregation of Revenue [Line Items]

Net sales

7,264

$ 6,476

$ 5,868

North America | Distribution

Disaggregation of Revenue [Line Items]

Net sales

5,331

Asia Pacific | Distribution

Disaggregation of Revenue [Line Items]

Net sales

851

Europe | Distribution

Disaggregation of Revenue [Line Items]

Net sales

536

Africa | Distribution

Disaggregation of Revenue [Line Items]

Net sales

242

Latin America | Distribution

Disaggregation of Revenue [Line Items]

Net sales

169

Russian Federation | Distribution

Disaggregation of Revenue [Line Items]

Net sales

$ 169

[1]

Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016

[2]

Includes Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See Note 19 , " ACQUISITIONS

INVESTMENTS IN EQUITY INVESTE_3

INVESTMENTS IN EQUITY INVESTEES (Details 1) Investments in and Earnings from $ in Millions		3 Months Ended								12 Months Ended
		Dec. 31, 2018USD ($)hpl	Sep. 30, 2018USD ($)	Jul. 01, 2018USD ($)	Apr. 01, 2018USD ($)	Dec. 31, 2017USD ($)	Oct. 01, 2017USD ($)	Jul. 02, 2017USD ($)	Apr. 02, 2017USD ($)	Dec. 31, 2018USD ($)hpl		Dec. 31, 2017USD ($)		Dec. 31, 2016USD ($)
Equity, royalty and interest income from investees
Investments and advances to equity method investees		$ 1,222				$ 1,156				$ 1,222		$ 1,156		$ 946
Investment account representing cumulative undistributed income in equity investees		743								743
Dividends from the unconsolidated equity investees										242		219		212
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										336		308		260
Royalty and interest income		$ 6,126	$ 5,943	$ 6,132	$ 5,570	5,476	$ 5,285	$ 5,078	$ 4,589	23,771	[1]	20,428	[1]	17,509	[1]
Equity, royalty and interest income from investees										394		357	[2]	301
Tax Legislation Impact to JV Earnings												(152)
Proceeds from Sale of Equity Method Investments										$ 0		0		60
Minimum
Equity, royalty and interest income from investees
Ownership percentage		20.00%								20.00%
Maximum
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Manufacturing Entities | Maximum
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Komatsu Manufacturing Alliances
Equity, royalty and interest income from investees
Investments and advances to equity method investees		$ 238				219				$ 238		219
Komatsu Manufacturing Alliances | Minimum
Equity, royalty and interest income from investees
Ownership percentage		20.00%								20.00%
Komatsu Manufacturing Alliances | Maximum
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Manufacturing - Beijing Foton Cummins Engine Co., Ltd.
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Investments and advances to equity method investees		$ 203				223				$ 203		223
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										$ 72		94		52
Beijing Foton Cummins Engine Company (Light-Duty) | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		2.8								2.8
Beijing Foton Cummins Engine Company (Light-Duty) | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		4.5								4.5
Manufacturing - Dongfeng Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Investments and advances to equity method investees		$ 160				146				$ 160		146
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										$ 58		73		46
Manufacturing - Dongfeng Cummins Engine Company, Ltd. | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		3.9								3.9
Power of mechanical engines (in horsepower) | hp		80								80
Manufacturing - Dongfeng Cummins Engine Company, Ltd. | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		13								13
Power of mechanical engines (in horsepower) | hp		680								680
Manufacturing - Chongqing Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Investments and advances to equity method investees		$ 102				84				$ 102		84
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										$ 51		41		38
Cummins Scania XPI Manufacturing LLC
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Investments and advances to equity method investees		$ 101				87				$ 101		87
Manufacturing Tata Cummins Ltd
Equity, royalty and interest income from investees
Ownership percentage		50.00%								50.00%
Investments and advances to equity method investees		$ 58				59				$ 58		59
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										$ 14		(7)	[3]	6
Manufacturing Tata Cummins Ltd | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		3.8								3.8
Power of mechanical engines (in horsepower) | hp		75								75
Manufacturing Tata Cummins Ltd | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		8.9								8.9
Power of mechanical engines (in horsepower) | hp		400								400
Other Distributors and Manufacturers
Equity, royalty and interest income from investees
Investments and advances to equity method investees		$ 360				338				$ 360		338
Manufacturing - Cummins Westport, Inc.
Equity, royalty and interest income from investees
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										28		9	[3]	11
Manufacturing - Dongfeng Cummins Emission Solutions Co. Ltd.
Equity, royalty and interest income from investees
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										14		13		9
Manufacturing - All other manufacturers
Equity, royalty and interest income from investees
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										73		56	[3]	43
Distribution - Komatsu Cummins Chile, Ltda.
Equity, royalty and interest income from investees
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										26		30		34
Distribution - North American distributors
Equity, royalty and interest income from investees
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	[4]													21
Distribution - All other distributors
Equity, royalty and interest income from investees
Equity Method Investment, Summarized Financial Information, Net Income (Loss)										0		(1)		0
Power Systems
Equity, royalty and interest income from investees
Investments and advances to equity method investees		$ 177				$ 164				177		164		139
Royalty and interest income										4,626		4,058		3,517
Equity, royalty and interest income from investees										56		54		$ 42
Power Systems | Cummins Olayan Energy
Equity, royalty and interest income from investees
Ownership percentage														49.00%
Equity Method Investment, Amount Sold														$ 61
Gain (Loss) on Sale of Equity Investments														17
Proceeds from Sale of Equity Method Investments														58
Tax Legislation Impact | Manufacturing Tata Cummins Ltd
Equity, royalty and interest income from investees
Tax Legislation Impact to JV Earnings												(15)
Tax Legislation Impact | Manufacturing - Cummins Westport, Inc.
Equity, royalty and interest income from investees
Tax Legislation Impact to JV Earnings												(7)
Tax Legislation Impact | Manufacturing - All other manufacturers
Equity, royalty and interest income from investees
Tax Legislation Impact to JV Earnings												(17)
Royalty
Equity, royalty and interest income from investees
Royalty and interest income										$ 58		$ 49		$ 41
[1]	Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016
[2]	U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million , $4 million and $12 million for the Engine, Distribution and Components segments, respectively. See Note 4 , " INCOME TAXES
[3]	U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, including a $7 million unfavorable impact to Cummins Westport, Inc. due to the remeasurement of deferred taxes and $15 million unfavorable impact to Tata Cummins, Ltd. and a $17 million unfavorable impact to "All other manufacturers" due to withholding tax adjustments on foreign earnings. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information .
[4]	During 2016, we acquired the remaining interest in the final unconsolidated North American distributor joint venture.

INVESTMENTS IN EQUITY INVESTE_4

INVESTMENTS IN EQUITY INVESTEES (Details 2) Equity Investee Financial Summary - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jul. 01, 2018	Apr. 01, 2018	Dec. 31, 2017	Oct. 01, 2017	Jul. 02, 2017	Apr. 02, 2017	Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
Equity, royalty and interest income from investees
Net sales for equity investees									$ 7,352		$ 7,050		$ 5,654
Gross margin									1,373		1,422		1,182
Net income									647		680		499
Cummins share of net income									336		308		260
Royalty and interest income	$ 6,126	$ 5,943	$ 6,132	$ 5,570	$ 5,476	$ 5,285	$ 5,078	$ 4,589	23,771	[1]	20,428	[1]	17,509	[1]
Equity, royalty and interest income from investees									394		357	[2]	301
Current assets	3,401				3,416				3,401		3,416
Non-current assets	1,449				1,379				1,449		1,379
Current liabilities	(2,669)				(2,567)				(2,669)		(2,567)
Non-current liabilities	(218)				(237)				(218)		(237)
Net assets	1,963				1,991				1,963		1,991
Cummins share of net assets	$ 1,144				$ 1,116				1,144		1,116
Royalty
Equity, royalty and interest income from investees
Royalty and interest income									$ 58		$ 49		$ 41
[1]	Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016
[2]	U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million , $4 million and $12 million for the Engine, Distribution and Components segments, respectively. See Note 4 , " INCOME TAXES

INCOME TAXES (Details 1) Inc. B

INCOME TAXES (Details 1) Inc. Before Taxes, Components of Tax Expense, Rate Recon., Effective Tax rate Discussion - USD ($) $ in Millions		3 Months Ended	12 Months Ended			24 Months Ended
		Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Income Tax [Line Items]
Withholding tax accrued				$ 331
Tax Legislation Deferred tax balances				152
Tax Legislation One-time transition tax				298
Tax Legislation One-time transition tax cash impact				338
Total Tax Legislation impact, gross			$ 12	781
Deferred Other Tax Expense (Benefit)			12
Income before income taxes:
U.S. income			1,239	1,237	$ 995
Foreign income			1,514	1,128	935
INCOME BEFORE INCOME TAXES			2,753	2,365	1,930
Current:
U.S. federal and state			303	355	211
Foreign			348	289	213
Current Tax Legislation Impact to Tax Expense			153	349	0
Total current			804	993	424
Deferred:
U.S. federal and state			(71)	(42)	57
Foreign			(26)	(12)	(7)
Deferred Tax Legislation Impact to Tax Expense			(141)	432	0
Total deferred			(238)	378	50
Income tax expense			$ 566	$ 1,371	$ 474
Reconciliation of the income tax provision
Statutory U.S. federal income tax rate		21.00%	21.00%	35.00%	35.00%
State income tax, net of federal effect			0.90%	0.60%	0.80%
Differences in rates and taxability of foreign subsidiaries and joint ventures			(0.20%)	(6.40%)	(7.20%)
Research tax credits			(1.20%)	(1.40%)	(1.70%)
Impact of tax legislation			0.50%	33.10%	0.00%
Other, net			(0.40%)	(2.90%)	(2.30%)
Effective Income Tax Rate Reconciliation, Percent			20.60%	58.00%	24.60%
Tax Legislation Tax Expense Impact
Income Tax [Line Items]
Withholding tax accrued			$ (148)	$ 331		$ 183
Tax Legislation Deferred tax balances			7	152		159
Tax Legislation One-time transition tax			111	298		409
Tax Legislation Net impact of measurement period changes			(30)	781		751
Tax Legislation Deferred tax charges	[1]		35	0		35
Tax Legislation Foreign currency adjustment related to Tax Legislation			7	0		7
Tax Legislation Net impact of 2018 adjustments			42	0		42
Total Tax Legislation impact, gross			$ 12	$ 781		$ 793
[1]	Charges relate to one-time recognition of deferred tax charges at historical tax rates on intercompany profit in inventory.

INCOME TAXES (Details 2) Carryf

INCOME TAXES (Details 2) Carryforward Deferred Tax Asset/Liability, BS Disclosure, Recon. of Unrecognized Tax Benefits - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
U.S. state carryforward benefits		$ 191	$ 200
Foreign carryforward benefits		149	159
Employee benefit plans		245	274
Warranty expenses		401	300
Accrued expenses		94	95
Other		65	70
Gross deferred tax assets		1,145	1,098
Valuation allowance		(327)	(347)
Total deferred tax assets		818	751
Deferred tax liabilities:
Property, plant and equipment		(255)	(250)
Unremitted income of foreign subsidiaries and joint ventures		(184)	(331)
Employee benefit plans		(202)	(224)
Other		(30)	(31)
Deferred Tax Liabilities, Gross		671	836
Net deferred tax assets		147
Net deferred tax liabilities			(85)
Net increase (decrease) in valuation allowance		20
Balance Sheet Related Disclosures
Refundable income taxes		117	152
Deferred income tax assets		410	306
Long-term refundable income taxes		6	6
Taxes Payable, Current		97	77
Taxes Payable, Non-Current	[1]	293	281
Deferred tax liabilities		263	391
Reconciliation of unrecognized tax benefits
Beginning balance		41	59	$ 135
Additions to current year tax positions		10	11	10
Additions to prior years' tax positions		27	9	18
Reductions to prior years' tax positions		(2)	(3)	0
Reductions for tax positions due to settlements with taxing authorities		(5)	(35)	(104)
Ending balance		71	41	59
Unrecognized tax benefits that would impact effective tax rate		62	32	31
Unrecognized tax benefits, interest accrued		$ 4	$ 4	$ 3
[1]	Long-term income taxes payable are the result of Tax Legislation and relate to the non-current portion of the one-time transition tax on accumulated foreign earnings. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities
Debt Securities, Available-for-sale, Amortized Cost		$ 1	$ 1
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	[1]	0	0
Debt Securities, Available-for-sale		1	1
Total Marketable Securities, Amortized Cost Basis		221	195
Total Marketable Securities, Accumulated Gross Unrealized Gain(Loss), before tax	[1]	1	3
Total Marketable Securities, Estimated Fair Value		222	198
Proceeds from sales of marketable securities		253	145	$ 116
Proceeds from maturities of marketable securities		78	121	190
Proceeds from Sale and Maturity of Marketable Securities		331	266	$ 306
Debt mutual funds
Schedule of Available-for-sale Securities
Available-for-sale Equity Securities, Amortized Cost Basis		103	170
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	[1]	1	0
Available-for-sale Securities, Equity Securities		104	170
Certificates of Deposit
Schedule of Available-for-sale Securities
Available-for-sale Equity Securities, Amortized Cost Basis		101	12
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	[1]	0	0
Available-for-sale Securities, Equity Securities		101	12
Equity Mutual Funds
Schedule of Available-for-sale Securities
Available-for-sale Equity Securities, Amortized Cost Basis		16	12
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	[1]	0	3
Available-for-sale Securities, Equity Securities		$ 16	$ 15
Minimum | Certificates of Deposit
Schedule of Available-for-sale Securities
Maturities of Time Deposits, Description		P3M
Maximum | Certificates of Deposit
Schedule of Available-for-sale Securities
Maturities of Time Deposits, Description		P5Y
[1]	Unrealized gains and losses for debt securities are recorded in other comprehensive income (See NOTE 15 , " ACCUMULATED OTHER COMPREHENSIVE LOSS ," to our Consolidated Financial Statements for more information). Effective January 1, 2018, with the adoption of the new FASB standard, all unrealized gains and losses for equity securities are recorded in "Other income, net" in the Consolidated Statements of Income . See NOTE 1 , " RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS ," for detailed information about the adoption of this standard.

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished products	$ 2,405	$ 2,078
Work-in-process and raw materials	1,487	1,216
Inventories at FIFO cost	3,892	3,294
Excess of FIFO over LIFO	(133)	(128)
Total inventories	$ 3,759	$ 3,166

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment
Property, plant and equipment, gross	$ 8,319	$ 8,058
Accumulated depreciation	(4,223)	(4,131)
Property, plant and equipment, net	4,096	3,927
Land and buildings
Property, Plant and Equipment
Property, plant and equipment, gross	2,398	2,332
Machinery, equipment and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	5,391	5,285
Construction in process
Property, Plant and Equipment
Property, plant and equipment, gross	$ 530	$ 441

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) Goodwill rollforward - USD ($) $ in Millions		Jan. 01, 2019	Dec. 31, 2018		Dec. 31, 2017
Changes in the carrying amount of goodwill
Balance at beginning of period		$ 1,126	$ 1,082		$ 480
Acquisitions			49		591
Translation and other			(5)		11
Goodwill, Transfers		0
Balance at end of period			1,126		1,082
Components
Changes in the carrying amount of goodwill
Balance at beginning of period		935	940		386
Acquisitions			0		544	[1]
Translation and other			(5)		10
Goodwill, Transfers		0
Balance at end of period			935		940
Electrified Power
Changes in the carrying amount of goodwill
Balance at beginning of period		96
Acquisitions			49	[1]	0
Translation and other			0		0
Goodwill, Transfers	[2]	47
Balance at end of period			96
Distribution
Changes in the carrying amount of goodwill
Balance at beginning of period		79	79		79
Acquisitions			0		0
Translation and other			0		0
Goodwill, Transfers		0
Balance at end of period			79		79
Power Systems
Changes in the carrying amount of goodwill
Balance at beginning of period		10	10		9
Acquisitions			0		0
Translation and other			0		1
Goodwill, Transfers		0
Balance at end of period			10		10
Engine
Changes in the carrying amount of goodwill
Balance at beginning of period		6	6		6
Acquisitions			0		0
Translation and other			0		0
Goodwill, Transfers		0
Balance at end of period			6		6
Allocated to Segments
Changes in the carrying amount of goodwill
Balance at beginning of period		1,126	1,035		480
Acquisitions			49		544
Translation and other			(5)		11
Goodwill, Transfers		47
Balance at end of period			1,126		1,035
Not Yet Allocated to Segment
Changes in the carrying amount of goodwill
Balance at beginning of period			47		0
Acquisitions			$ 0		47	[2]
Goodwill, Transfers		$ (47)
Balance at end of period					$ 47
[1]	See Note 19 , " ACQUISITIONS
[2]	Goodwill associated with the Brammo Inc. acquisition was presented as an unallocated item as it had not yet been assigned to a reportable segment at December 31, 2017. Effective January 1, 2018, Brammo Inc. was assigned to our new Electrified Power segment. See Note 19 , " ACQUISITIONS

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) Intangible Assets and Projected Amortization - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finite Lived Intangible Assets
Intangible asset, Net	$ 909	$ 973
Amortization expense for software and other intangibles	153	112	$ 92
Projected amortization expense
2,019	125
2,020	114
2,021	93
2,022	73
2,023	56
Software
Finite Lived Intangible Assets
Intangible Assets Gross (software and other intangibles)	662	718
Less: Accumulated amortization	(372)	(386)
Intangible asset, Net	290	332
Other Intangible Assets
Finite Lived Intangible Assets
Intangible Assets Gross (software and other intangibles)	803	786
Less: Accumulated amortization	(184)	(145)
Intangible asset, Net	$ 619	$ 641

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Liability Reconciliation, Warranty Related to Deferred Revenues - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Product Warranty Liability:
Balance, beginning of year	$ 1,687	$ 1,414	$ 1,404
Provision for warranties issued	918	557	334
Deferred revenue on extended warranty contracts sold	293	240	231
Payments made during period	(443)	(398)	(385)
Amortization of deferred revenue on extended warranty contracts	(244)	(219)	(201)
Changes in estimates for pre-existing warranties	3	85	44
Foreign currency translation and other	(6)	8	(13)
Balance, end of period	2,208	1,687	$ 1,414
Product Warranty Liability [Line Items]
Deferred Revenue - Extended Coverage, Current	498	500
Deferred Revenue - Extended Coverage, Noncurrent	658	604
Product Warranty Accrual, Current	654	454
Product Warranty Accrual, Non-current	740	466
Standard Product Warranty Accrual	1,394	920
Deferred Revenue Related to Extended Coverage Programs
Product Warranty Liability [Line Items]
Deferred Revenue Related to extended coverage	814	767
Deferred Revenue Related to Extended Coverage Programs | Other Current Liabilities
Product Warranty Liability [Line Items]
Deferred Revenue - Extended Coverage, Current	227	231
Deferred Revenue Related to Extended Coverage Programs | Other Noncurrent Liabilities
Product Warranty Liability [Line Items]
Deferred Revenue - Extended Coverage, Noncurrent	$ 587	$ 536

PRODUCT WARRANTY LIABILITY PROD

PRODUCT WARRANTY LIABILITY PRODUCT WARRANTY LIABILITY (Details 2) Engine System Capaign, Customer Loss Contingency - USD ($) $ / shares in Units, $ in Millions	3 Months Ended					12 Months Ended
	Jul. 01, 2018	Apr. 01, 2018	Dec. 31, 2017	[1]	Oct. 01, 2017	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016	[1]	Dec. 31, 2015
Product Warranty Liability [Line Items]
Product Liability Accrual, Period Expense	$ 181	$ 187			$ 29		$ 36
Income (Loss) from Continuing Operations, Per Diluted Share	$ 0.85	$ 0.87
Product Liability Contingency, Accrual, Present Value						$ 372
Loss Contingency						$ 0	$ 5	[1]	$ 138
Components
Product Warranty Liability [Line Items]
Product Liability Accrual, Period Expense	$ 90	$ 94
Engine
Product Warranty Liability [Line Items]
Product Liability Accrual, Period Expense	$ 91	$ 93
Loss Contingency			$ 5						$ 138		$ 60
[1]	See Note 9 , " PRODUCT WARRANTY LIABILITY

DEBT (Details)

DEBT (Details) $ in Millions		Aug. 22, 2018USD ($)	Dec. 31, 2018USD ($)Rate	Dec. 31, 2017USD ($)Rate	Dec. 31, 2016USD ($)Rate	Sep. 05, 2017USD ($)	Nov. 13, 2015USD ($)	Sep. 19, 2013USD ($)Rate
Debt Instruments
Loans payable			$ 54	$ 57
Weighted average interest rate (as a percent) | Rate			4.66%	3.01%	4.20%
Line of Credit Facility, Maximum Borrowing Capacity			$ 3,500
Commercial paper			$ 780	$ 298
Leverage ratio			0.65
Line of credit facility, remaining borrowing capacity			$ 2,720
Other Long-term Debt			64	76
Unamortized discount			(52)	(54)
Fair value adjustment due to hedge on indebtedness			25	35
Capital leases			132	121
Total long-term debt			1,642	1,651
Less: Current maturities of long-term debt			45	63
Long-term debt			1,597	1,588
Total interest incurred			116	85	$ 75
Interest capitalized			2	4	6
Principal payments required on long-term debt
2,019			45
2,020			13
2,021			39
2,022			9
2,023			506
Fair value
Fair value of total debt	[1]		2,679	2,301
Carrying value of total debt			2,476	2,006
Senior Notes, 3.65%, due 2023
Debt Instruments
Unsecured Debt			$ 500	500
Debt instrument interest rate (as a percent) | Rate			3.65%
Debentures, 6.75%, due 2027
Debt Instruments
Unsecured Debt			$ 58	58
Debt instrument interest rate (as a percent) | Rate			6.75%
Debentures, 7.125%, due 2028
Debt Instruments
Unsecured Debt			$ 250	250
Debt instrument interest rate (as a percent) | Rate			7.125%
Senior Notes 4.875 Percent, Due 2043
Debt Instruments
Unsecured Debt			$ 500	500
Debt instrument interest rate (as a percent) | Rate			4.875%
Debentures, 5.65%, due 2098 (effective interest rate 7.48%)
Debt Instruments
Unsecured Debt			$ 165	165
Debt instrument interest rate (as a percent) | Rate			5.65%
Effective interest rate (as a percent) | Rate			7.48%
Interest rate contracts | Senior Notes, 3.65%, due 2023
Debt Instruments
Unsecured Debt								$ 500
Debt instrument interest rate (as a percent) | Rate								3.65%
London Interbank Offered Rate (LIBOR) | Interest rate contracts | Senior Notes, 3.65%, due 2023
Debt Instruments
Debt Instrument, Description of Variable Rate Basis			one-month LIBOR
Interest Expense | Interest rate contracts
Other debt disclosure
Gain/(Loss) on Swaps	[2]		$ (8)	(7)	(8)
Gain/(Loss) on Borrowings	[2]		$ 7	$ 8	$ 12
Commercial Paper
Debt Instruments
Weighted average interest rate (as a percent) | Rate			2.59%	1.56%	0.79%
Line of Credit Facility, Maximum Borrowing Capacity			$ 3,500
International and other domestic short-term credit facilities
Debt Instruments
Line of credit facility, remaining borrowing capacity			$ 237
5-year revolving credit agreement
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000					$ 1,750
Revolving credit facility amount available for swingline loans		$ 300
Debt Instrument, Description of Variable Rate Basis			LIBOR
Percentage added to reference rate to compute the variable interest rate | Rate			0.75%
Debt Instrument, Term		5 years
1-year revolving credit agreement
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,500				$ 1,000
Revolving credit facility amount available for swingline loans		$ 150
Debt Instrument, Term		364 days
[1]	The fair value of debt is derived from Level 2 inputs.
[2]	The difference between the gain/(loss) on swaps and borrowings represents hedge ineffectiveness.

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 1) -Obligations, Assets and Funded Status $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)country		Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Amounts recognized in consolidated balance sheets
Pension assets - long-term	$ 929		$ 1,043
Pensions - long-term liabilities	(532)		(619)
Pension Plan
Change in plan assets
Exchange rate changes	5		(30)	$ 28
Other Pension Plan
Change in plan assets
Employer contributions	$ 11		11
Less Significant Defined Benefit or Other Postretirement Plans Applicable to Number of Countries | country	14
Maximum Percentage of Defined Benefit Plans Assets Included in Other Liabilities and Deferred Revenue	4.00%
Maximum Percentage of Defined Benefit Plans, Obligations Included in Other Liabilities and Deferred Revenue	5.00%
Other Postretirement Benefit Plan
Change in benefit obligation
Benefit obligation at the beginning of the year	$ 318		364
Interest cost	11		14	16
Plan participants' contributions	21		24
Actuarial (gain) loss	(51)		(35)
Benefits paid directly by employer or from fund	(53)		(49)
Benefit obligation at the end of the year	$ 246		$ 318	364
Change in plan assets
Less Significant Defined Benefit or Other Postretirement Plans Applicable to Number of Countries | country	4
Maximum Percentage of Defined Benefit Plans, Obligations Included in Other Liabilities and Deferred Revenue	9.00%		6.00%
Funded status
Funded status at end of year	$ (246)		$ (318)
Amounts recognized in consolidated balance sheets
Accrued compensation, benefits and retirement costs - current liabilities	(22)		(29)
Postretirement benefits other than pensions-long-term liabilities	(224)		(289)
Net amount recognized	(246)		(318)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial (gain) loss	(24)		27
Prior service cost	(4)		(4)
Net amount recognized	(28)		23
UNITED STATES
Change in plan assets
Fair value of plan assets at the beginning of the year	3,166
Fair value of plan assets at the end of the year	2,937		3,166
UNITED STATES | Pension Plan
Change in benefit obligation
Benefit obligation at the beginning of the year	2,765		2,661
Service cost	120		107	90
Interest cost	98		106	109
Actuarial (gain) loss	(212)		61
Benefits paid directly by employer or from fund	(193)		(155)
Plan amendment	0		0
Benefit obligation at the end of the year	2,562		2,765	2,661
Change in plan assets
Fair value of plan assets at the beginning of the year	3,166		2,751
Actual return on plan assets	(36)		351
Employer contributions	0		219
Benefits paid from Fund	(193)		(155)
Exchange rate changes	0		0
Fair value of plan assets at the end of the year	2,937		3,166	2,751
Funded status
Funded status at end of year	375		401
Amounts recognized in consolidated balance sheets
Pension assets - long-term	697		745
Accrued compensation, benefits and retirement costs - current liabilities	(14)		(14)
Pensions - long-term liabilities	(308)		(330)
Net amount recognized	375		401
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial (gain) loss	635		649
Prior service cost	8		8
Net amount recognized	643		657
UNITED KINGDOM
Change in plan assets
Fair value of plan assets at the beginning of the year	1,960
Fair value of plan assets at the end of the year	1,782		1,960
UNITED KINGDOM | Pension Plan
Change in benefit obligation
Benefit obligation at the beginning of the year	1,662		1,451
Service cost	29		26	21
Interest cost	41		40	50
Actuarial (gain) loss	(46)		53
Benefits paid directly by employer or from fund	(62)		(54)
Plan amendment	15	[1]	0
Exchange rate changes	(89)		146
Benefit obligation at the end of the year	1,550		1,662	1,451
Change in plan assets
Fair value of plan assets at the beginning of the year	1,960		1,753
Actual return on plan assets	(33)		78
Employer contributions	21		9
Benefits paid from Fund	(62)		(54)
Exchange rate changes	(104)		174
Fair value of plan assets at the end of the year	1,782		1,960	$ 1,753
Funded status
Funded status at end of year	232		298
Amounts recognized in consolidated balance sheets
Pension assets - long-term	232		298
Net amount recognized	232		298
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial (gain) loss	230		207
Prior service cost	16		0
Net amount recognized	246		207
Nonqualified Plan | UNITED STATES | Pension Plan
Change in benefit obligation
Benefits paid directly by employer or from fund	$ (16)		$ (15)
[1]	Guaranteed minimum pension benefits to equalize certain pension benefits between men and women per the United Kingdom court decision.

PENSION AND OTHER POSTRETIREM_4

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 2) - Components of Net Periodic Pension Cost - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plan
Changes in benefit obligations and plan assets recognized in other comprehensive income
Recognized net actuarial loss	$ (62)	$ (77)	$ (44)
Incurred actuarial loss (gain)	91	(40)	107
Foreign exchange translation adjustments	(5)	30	(28)
Total recognized in other comprehensive loss (income)	24	(87)	35
Total recognized in net periodic pension cost and other comprehensive loss (income)	110	(5)	77
Other Postretirement Benefit Plan
Components of Net Periodic Benefit Cost
Interest cost	11	14	16
Recognized net actuarial loss	0	6	5
Net periodic pension cost	11	20	21
Changes in benefit obligations and plan assets recognized in other comprehensive income
Recognized net actuarial loss	0	(6)	(6)
Incurred actuarial loss (gain)	(51)	(35)	9
Total recognized in other comprehensive loss (income)	(51)	(41)	3
Total recognized in net periodic pension cost and other comprehensive loss (income)	(40)	(21)	24
UNITED STATES
Pension and other postretirement benefits
Defined Benefit Plan, Accumulated Benefit Obligation	2,544	2,745
Plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation	304	323
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	322	344
UNITED STATES | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	120	107	90
Interest cost	98	106	109
Expected return on plan assets	(196)	(204)	(201)
Amortization of prior service credit	1	0	0
Recognized net actuarial loss	33	37	29
Net periodic pension cost	56	46	27
Changes in benefit obligations and plan assets recognized in other comprehensive income
Foreign exchange translation adjustments	0	0
UNITED KINGDOM
Pension and other postretirement benefits
Defined Benefit Plan, Accumulated Benefit Obligation	1,473	1,569
UNITED KINGDOM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	29	26	21
Interest cost	41	40	50
Expected return on plan assets	(69)	(70)	(71)
Amortization of prior service credit	0	0	0
Recognized net actuarial loss	29	40	15
Net periodic pension cost	30	36	$ 15
Changes in benefit obligations and plan assets recognized in other comprehensive income
Foreign exchange translation adjustments	$ 104	$ (174)

PENSION AND OTHER POSTRETIREM_5

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 3) - Assumptions and Plan Asset Targets	Jan. 01, 2019	Dec. 31, 2018Rate	Dec. 31, 2017Rate	Dec. 31, 2016Rate
Other Postretirement Benefit Plan
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		4.25%	3.55%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		3.55%	4.00%	4.35%
Defined Benefit Plan, Assumed Health Care Cost Trend Rates
Annual rate of increase in the per capita cost of covered health care benefits		7.63%
Ultimate per capita trend rate for health care costs		5.00%
UNITED STATES
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		4.36%	3.66%
Cash balance crediting rate (as a percent)		4.03%	4.27%
Compensation increase rate (as a percent)		3.00%	2.99%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		3.66%	4.12%	4.47%
Expected return on plan assets (as a percent)		6.50%	7.25%	7.50%
Compensation increase rate (as a percent)		3.00%	4.87%	4.87%
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		100.00%
UNITED STATES | Defined Benefit Plan, Equity Securities, US
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		7.00%
UNITED STATES | Non-U.S. Equity
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		2.00%
UNITED STATES | Global Equities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		6.00%
UNITED STATES | Equity Securities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		15.00%
UNITED STATES | Real estate
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		6.50%
UNITED STATES | Private equity / venture capital
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		6.50%
UNITED STATES | Opportunistic credit
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		4.00%
UNITED STATES | Fixed Income Funds
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		68.00%
Asset allocation covers exposure to changes in portion of discount rate (as a percent)		100.00%
UNITED KINGDOM
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		2.80%	2.55%
Cash balance crediting rate (as a percent)		0.00%	0.00%
Compensation increase rate (as a percent)		3.75%	3.75%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		2.55%	2.70%	3.95%
Expected return on plan assets (as a percent)		4.00%	4.50%	4.70%
Compensation increase rate (as a percent)		3.75%	3.75%	3.75%
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		100.00%
UNITED KINGDOM | Global Equities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		23.00%
UNITED KINGDOM | Real estate
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5.00%
UNITED KINGDOM | Reinsurance
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		8.00%
UNITED KINGDOM | Corporate Credit Instruments
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		7.50%
UNITED KINGDOM | Fixed Income Funds
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		56.50%
Asset allocation covers exposure to changes in portion of discount rate (as a percent)		80.00%
Minimum | UNITED STATES | Defined Benefit Plan, Equity Securities, US
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		2.00%
Minimum | UNITED STATES | Non-U.S. Equity
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0.00%
Minimum | UNITED STATES | Global Equities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		3.00%
Minimum | UNITED STATES | Real estate
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0.00%
Minimum | UNITED STATES | Private equity / venture capital
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0.00%
Minimum | UNITED STATES | Opportunistic credit
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0.00%
Minimum | UNITED STATES | Fixed Income Funds
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		63.00%
Maximum | UNITED STATES | Defined Benefit Plan, Equity Securities, US
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		12.00%
Maximum | UNITED STATES | Non-U.S. Equity
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5.00%
Maximum | UNITED STATES | Global Equities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		9.00%
Maximum | UNITED STATES | Real estate
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		10.00%
Maximum | UNITED STATES | Private equity / venture capital
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		10.00%
Maximum | UNITED STATES | Opportunistic credit
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		10.00%
Maximum | UNITED STATES | Fixed Income Funds
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		73.00%
Scenario, Forecast | UNITED STATES
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Expected return on plan assets (as a percent)	6.25%
Scenario, Forecast | UNITED KINGDOM
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Expected return on plan assets (as a percent)	4.00%

PENSION AND OTHER POSTRETIREM_6

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 4) - Fair Value of Plan Assets - USD ($) $ in Millions		1 Months Ended
		Jul. 31, 2012	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
UNITED STATES
Pension and other postretirement benefits
Fair value of plan assets			$ 2,937	$ 3,166
Pending Trade Purchases, Sales			9	(96)
Accrued Investment Income Receivable	[1]		5	12
UNITED STATES | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			77	102
UNITED STATES | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			42	56
UNITED STATES | Government debt
Pension and other postretirement benefits
Fair value of plan assets			38	691
UNITED STATES | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets			323	590
UNITED STATES | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets			15	73
UNITED STATES | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets			5	78
UNITED STATES | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	[2]		192	75
UNITED STATES | Derivative instruments
Pension and other postretirement benefits
Fair value of plan assets	[3]			3
UNITED STATES | Private Equity and Real Estate
Pension and other postretirement benefits
Fair value of plan assets	[4]		316	246
UNITED STATES | Fair Value, Inputs, Level 1
Pension and other postretirement benefits
Fair value of plan assets			294	208
UNITED STATES | Fair Value, Inputs, Level 1 | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			77	102
UNITED STATES | Fair Value, Inputs, Level 1 | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			42	56
UNITED STATES | Fair Value, Inputs, Level 1 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	[2]		175	50
UNITED STATES | Significant other observable inputs Level 2
Pension and other postretirement benefits
Fair value of plan assets			398	1,460
UNITED STATES | Significant other observable inputs Level 2 | Government debt
Pension and other postretirement benefits
Fair value of plan assets			38	691
UNITED STATES | Significant other observable inputs Level 2 | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets			323	590
UNITED STATES | Significant other observable inputs Level 2 | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets			15	73
UNITED STATES | Significant other observable inputs Level 2 | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets			5	78
UNITED STATES | Significant other observable inputs Level 2 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	[2]		17	25
UNITED STATES | Significant other observable inputs Level 2 | Derivative instruments
Pension and other postretirement benefits
Fair value of plan assets	[3]			3
UNITED STATES | Fair Value, Inputs, Level 3
Pension and other postretirement benefits
Fair value of plan assets			316	246	$ 212
UNITED STATES | Fair Value, Inputs, Level 3 | Private Equity and Real Estate
Pension and other postretirement benefits
Fair value of plan assets	[4]		316	246
UNITED STATES | Fair Value, Inputs, Level 3 | Real estate
Pension and other postretirement benefits
Fair value of plan assets			69	66	64
UNITED STATES | Fair Value, Inputs, Level 1, 2 and 3
Pension and other postretirement benefits
Fair value of plan assets			1,008	1,914
UNITED STATES | Fair Value Measured at Net Asset Value Per Share
Pension and other postretirement benefits
Fair value of plan assets			1,915	1,336
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Government debt
Pension and other postretirement benefits
Fair value of plan assets			602	347
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets			2	103
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Global Equities
Pension and other postretirement benefits
Fair value of plan assets			343	428
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets			821	321
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Real estate
Pension and other postretirement benefits
Fair value of plan assets			147	137
UNITED KINGDOM
Pension and other postretirement benefits
Fair value of plan assets			1,782	1,960
UNITED KINGDOM | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			47	63
UNITED KINGDOM | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			61	91
UNITED KINGDOM | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	[5]		12	29
UNITED KINGDOM | Insurance Contract
Pension and other postretirement benefits
Insurance Contract Payment Deferment Period		10 years
UNITED KINGDOM | Private Equity Real Estate and Insurance
Pension and other postretirement benefits
Fair value of plan assets	[6]		686	671
UNITED KINGDOM | Fair Value, Inputs, Level 1
Pension and other postretirement benefits
Fair value of plan assets			12	29
UNITED KINGDOM | Fair Value, Inputs, Level 1 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	[5]		12	29
UNITED KINGDOM | Significant other observable inputs Level 2
Pension and other postretirement benefits
Fair value of plan assets			108	154
UNITED KINGDOM | Significant other observable inputs Level 2 | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			47	63
UNITED KINGDOM | Significant other observable inputs Level 2 | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets			61	91
UNITED KINGDOM | Fair Value, Inputs, Level 3
Pension and other postretirement benefits
Fair value of plan assets			686	671	613
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Real estate
Pension and other postretirement benefits
Fair value of plan assets			57	59	$ 57
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Insurance Contract
Pension and other postretirement benefits
Fair value of plan assets			442	477
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Private Equity Real Estate and Insurance
Pension and other postretirement benefits
Fair value of plan assets	[6]		686	671
UNITED KINGDOM | Fair Value, Inputs, Level 1, 2 and 3
Pension and other postretirement benefits
Fair value of plan assets			806	854
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share
Pension and other postretirement benefits
Fair value of plan assets			976	1,106
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Global Equities
Pension and other postretirement benefits
Fair value of plan assets			100	144
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets			753	822
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Reinsurance
Pension and other postretirement benefits
Fair value of plan assets			77	86
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Managed Futures Funds
Pension and other postretirement benefits
Fair value of plan assets			$ 46	$ 54
[1]	Accruals include interest or dividends that were not settled at December 31.
[2]	Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.
[3]	Derivative instruments include interest rate swaps and credit default swaps.
[4]	The instruments in private equity and real estate, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds.
[5]	Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.
[6]	The instruments in private equity, real estate and insurance funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds.

PENSION AND OTHER POSTRETIREM_7

PENSION AND OTHER POSTRETIREMENT BENEFITS - (Details 5 ) - Level 3 Fair Value Reconciliation - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
UNITED STATES
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	$ 2,937	$ 3,166
UNITED STATES | Fair Value, Inputs, Level 3
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	316	246	$ 212
Unrealized gains (losses) on assets still held at the reporting date	39	29
Purchases, sales and settlements, net	31	5
UNITED STATES | Fair Value, Inputs, Level 3 | Private equity / venture capital
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	247	180	148
Unrealized gains (losses) on assets still held at the reporting date	33	24
Purchases, sales and settlements, net	34	8
UNITED STATES | Fair Value, Inputs, Level 3 | Real estate
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	69	66	64
Unrealized gains (losses) on assets still held at the reporting date	6	5
Purchases, sales and settlements, net	(3)	(3)
UNITED KINGDOM
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	1,782	1,960
UNITED KINGDOM | Fair Value, Inputs, Level 3
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	686	671	613
Unrealized gains (losses) on assets still held at the reporting date	(16)	76
Purchases, sales and settlements, net	31	(18)
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Private equity / venture capital
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	187	135	117
Unrealized gains (losses) on assets still held at the reporting date	21	28
Purchases, sales and settlements, net	31	(10)
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Real estate
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	57	59	57
Unrealized gains (losses) on assets still held at the reporting date	(2)	10
Purchases, sales and settlements, net	0	(8)
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Insurance
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	442	477	$ 439
Unrealized gains (losses) on assets still held at the reporting date	(35)	38
Purchases, sales and settlements, net	$ 0	$ 0

PENSION AND OTHER POSTRETIREM_8

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 6) - Defined Benefits Plan Tables - Scenario, Forecast $ in Millions	Jan. 01, 2019USD ($)
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year	$ 123
Expected benefit payments
2,019	244
2,020	246
2,021	250
2,022	257
2,023	259
2024-2028	1,342
Other Postretirement Benefit Plan
Expected benefit payments
2,019	24
2,020	23
2,021	22
2,022	22
2,023	21
2024-2028	$ 90

PENSION AND OTHER POSTRETIREM_9

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 7) - Contribution Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Pension Plan
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Cost	$ 104	$ 84	$ 68

OTHER LIABILITIES AND DEFERRE_3

OTHER LIABILITIES AND DEFERRED REVENUE (Details) - USD ($) $ in Millions		Dec. 31, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Marketing accruals		$ 199	$ 146
Other taxes payable		196	197
Accrued Income Taxes		97	77
Other Accrued Liabilities, Current		360	495
Accrued Liabilities, Current		852	915
Income tax payable (1)	[1]	293	281
Deferred income taxes		263	391
Accrued compensation		173	151
Other long-term liabilities		163	134
Other liabilities and deferred revenue		$ 892	$ 957
[1]	Long-term income taxes payable are the result of Tax Legislation and relate to the non-current portion of the one-time transition tax on accumulated foreign earnings. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details1) Guarantees and Commitments $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)
Guarantee Obligations:
Guarantee obligations, maximum potential loss	$ 52
Unrecorded Unconditional Purchase Obligation	65
Purchase Obligation	70
Guarantee obligations, current carrying value	$ 110
Maximum
Guarantee Obligations:
Guarantor Obligations, Term	P2Y

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details 2) Operating and Capital Leases - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Leased property under leases by major classes
Rent expense	$ 217	$ 215	$ 210
Less: Accumulated amortization	(152)	(137)
Total	135	131
Net present value of the minimum payments due under capital leases
2,019	30
2,020	21
2,021	16
2,022	14
2,023	13
After 2,023	144
Total minimum lease payments	238
Interest	(106)
Present value of net minimum lease payments	132
Net present value of the minimum payments due under operating Leases
2,019	138
2,020	109
2,021	81
2,022	60
2,023	39
After 2,023	81
Total minimum lease payments	508
Buildings
Leased property under leases by major classes
Capital lease asset	180	158
Equipment
Leased property under leases by major classes
Capital lease asset	92	94
Land
Leased property under leases by major classes
Capital lease asset	$ 15	$ 16
Maximum
Leased property under leases by major classes
Lessee, Operating Lease, Term of Contract	10 years

SHAREHOLDERS' EQUITY (Details 1

SHAREHOLDERS' EQUITY (Details 1 ) Pref. Stock, Common Stock, Quarterly Dividends, Emp. Ben. Trust - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended			3 Months Ended												6 Months Ended		12 Months Ended
	Jul. 31, 2018	Jul. 29, 2017	Jul. 31, 2016	Dec. 31, 2018	Sep. 30, 2018	Jul. 01, 2018	Apr. 01, 2018	Dec. 31, 2017	Oct. 01, 2017	Jul. 02, 2017	Apr. 02, 2017	Dec. 31, 2016	Oct. 02, 2016	Jul. 03, 2016	Apr. 03, 2016	Dec. 31, 2018	Jul. 03, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Class of Stock
Shares acquired (in shares)																3.5	4.7
Dividends Paid
Dividend payments on common stock (in dollars)																		$ 718	$ 701	$ 676
Cash dividend (in dollars per share)				$ 1.14	$ 1.14	$ 1.08	$ 1.08	$ 1.08	$ 1.08	$ 1.025	$ 1.025
Allocated Share-based Compensation Expense																		$ 1	$ 2	$ 1
Preferred Stock
Class of Stock
Preferred Stock, Shares Authorized				1,000,000												1,000,000		1,000,000
Preference Stock
Class of Stock
Preferred Stock, Shares Authorized				1												1		1
Common Stock
Class of Stock
Balance at beginning of period (in shares)							222.4				222.4				222.4		222.4	222.4	222.4	222.4
Stock Issued During Period, Shares, New Issues																		0	0	0
Balance at the end of the period (in shares)				222.4				222.4				222.4				222.4		222.4	222.4	222.4
Dividends Paid
Percentage increase in cash dividend per common share	5.60%	5.40%	5.10%
Cash dividend (in dollars per share)								$ 1.08	$ 1.08	$ 1.025	$ 1.025	$ 1.025	$ 1.025	$ 0.975	$ 0.975			$ 4.44	$ 4.21	$ 4
Treasury Stock, Common
Class of Stock
Balance at beginning of period (in shares)							56.7				54.2				47.2		47.2	56.7	54.2	47.2
Shares acquired (in shares)																		7.9	2.9	7.3
Stock Issued During Period, Shares, New Issues																		(0.2)	(0.4)	(0.3)
Balance at the end of the period (in shares)				64.4				56.7				54.2				64.4		64.4	56.7	54.2
Common Stock Held in Trust
Class of Stock
Balance at beginning of period (in shares)							0.5				0.7				0.9		0.9	0.5	0.7	0.9
Stock Issued During Period, Shares, New Issues																		(0.1)	(0.2)	(0.2)
Balance at the end of the period (in shares)				0.4				0.5				0.7				0.4		0.4	0.5	0.7
Dividends Paid
Allocated Share-based Compensation Expense																		$ 12	$ 17	$ 23

SHAREHOLDERS' EQUITY (Details 2

SHAREHOLDERS' EQUITY (Details 2) Treasury Stock - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended				6 Months Ended		12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jul. 01, 2018	Apr. 01, 2018	Dec. 31, 2018	Jul. 03, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Aug. 08, 2018	Feb. 09, 2016
Share repurchase programs
Shares acquired						3.5	4.7
Average Cost Per Share (in dollars per share)								$ 145.05
Repurchases of common stock								$ 1,140	$ 451	$ 778
Treasury Stock, Value, Acquired, Cost Method								$ 1,140	$ 451	$ 778
Accelerated Share Repurchases, Settlement (Payment) or Receipt											$ 500	$ 500
Accelerated Share Repurchases, Final Price Paid Per Share						$ 144.02	$ 105.50
$1 Billion Share Repurchase Program 2015
Share repurchase programs
Average Cost Per Share (in dollars per share)					$ 166.79
Repurchases of common stock					$ 46
Treasury Stock, Value, Acquired, Cost Method					0
Remaining Authorized Capacity	[1]				$ 0
$1 Billion Share Repurchase Program 2016
Share repurchase programs
Average Cost Per Share (in dollars per share)		$ 139.67	$ 143.58	$ 143.69	$ 164.48			$ 144.68
Repurchases of common stock		$ 267	$ 400	$ 216	$ 117			$ 1,000
Treasury Stock, Value, Acquired, Cost Method		(100)	100					0
Remaining Authorized Capacity	[1]	$ 0	$ 167	$ 667	$ 883	$ 0		0
$2 Billion Share Repurchase Program 2018
Share repurchase programs
Average Cost Per Share (in dollars per share)		$ 139.85
Repurchases of common stock		$ 94
Treasury Stock, Value, Acquired, Cost Method								0
Remaining Authorized Capacity	[1]	$ 1,906				$ 1,906		$ 1,906
Treasury Stock, Common
Share repurchase programs
Shares acquired								7.9	2.9	7.3
Treasury Stock, Common | $1 Billion Share Repurchase Program 2015
Share repurchase programs
Shares acquired					0.3
Treasury Stock, Common | $1 Billion Share Repurchase Program 2016
Share repurchase programs
Treasury Stock Repurchase Authorization Value										$ 1,000
Shares acquired		1.9	2.8	1.5	0.7			6.9
Treasury Stock, Common | $2 Billion Share Repurchase Program 2018
Share repurchase programs
Treasury Stock Repurchase Authorization Value								$ 2,000
Shares acquired		0.7
[1]	The remaining authorized capacity under these plans was calculated based on the cost to purchase the shares but excludes commission expenses in accordance with the authorized plan.

OTHER COMPREHENSIVE INCOME (L_3

OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period		$ (1,503)
Before tax amount		(382)	$ 418	$ (634)
Tax benefit		7	(51)	88
After tax amount		(375)	367	(546)
Amounts reclassified from accumulated other comprehensive income	[1]	42	74	56
Impact of tax legislation (Note 4)			103
Net current period other comprehensive income (loss)		(333)	338	(490)
Balance at the end of period		(1,807)	(1,503)
Impact of the Tax Cuts and Jobs Act of 2017			126
Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive income (loss) by component:
Net current period other comprehensive income (loss)		(304)	318	(473)
Total attributable to Cummins Inc.
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period		(1,503)	(1,821)	(1,348)
Before tax amount		(352)	398	(617)
Tax benefit		7	(51)	88
After tax amount		(345)	347	(529)
Amounts reclassified from accumulated other comprehensive income	[1]	41	74	56
Impact of tax legislation (Note 4)			103
Net current period other comprehensive income (loss)		(304)	318	(473)
Balance at the end of period		(1,807)	(1,503)	(1,821)
Impact of the Tax Cuts and Jobs Act of 2017			126
Change in pensions and other postretirement defined benefit plans
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period		(689)	(685)	(654)
Before tax amount		(42)	73	(111)
Tax benefit		7	(36)	44
After tax amount		(35)	37	(67)
Amounts reclassified from accumulated other comprehensive income	[1]	53	62	36
Impact of tax legislation (Note 4)	[2]		103
Net current period other comprehensive income (loss)		18	(4)	(31)
Balance at the end of period		(671)	(689)	(685)
Foreign currency translation adjustment
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period		(812)	(1,127)	(696)
Before tax amount		(333)	335	(469)
Tax benefit		7	(20)	38
After tax amount		(326)	315	(431)
Impact of tax legislation (Note 4)			0
Net current period other comprehensive income (loss)		(326)	315	(431)
Balance at the end of period		(1,138)	(812)	(1,127)
Unrealized gain (loss) on marketable securities (1)
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	[3]	1	(1)	(2)
Before tax amount	[3]	2	2	1
Tax benefit	[3]	0
After tax amount	[3]	2	2	1
Amounts reclassified from accumulated other comprehensive income	[1],[3]	(3)
Impact of tax legislation (Note 4)	[3]		0
Net current period other comprehensive income (loss)	[3]	(1)	2	1
Balance at the end of period	[3]	0	1	(1)
Unrealized gain (loss) on derivatives
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period		(3)	(8)	4
Before tax amount		21	(12)	(38)
Tax benefit		(7)	5	6
After tax amount		14	(7)	(32)
Amounts reclassified from accumulated other comprehensive income	[1]	(9)	12	20
Impact of tax legislation (Note 4)			0
Net current period other comprehensive income (loss)		5	5	(12)
Balance at the end of period		2	(3)	(8)
Noncontrolling interests
Changes in accumulated other comprehensive income (loss) by component:
Before tax amount		(30)	20	(17)
After tax amount		(30)	20	(17)
Amounts reclassified from accumulated other comprehensive income	[1]	1
Impact of tax legislation (Note 4)			0
Net current period other comprehensive income (loss)		$ (29)	20	$ (17)
Tax Year 2016 | Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive income (loss) by component:
Impact of the Tax Cuts and Jobs Act of 2017			(126)
Tax Year 2017 | Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive income (loss) by component:
Impact of the Tax Cuts and Jobs Act of 2017			$ 23
[1]	Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.
[2]	Impact of tax legislation includes $(126) million related to Tax Legislation and $23 million related to 2017 activity. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information .
[3]	Effective January 1, 2018 and forward, unrealized gains and losses, net of tax for equity securities are reported in "Other income, net" on the Consolidated Statements of Income instead of comprehensive income. Unrealized gains and losses for debt securities will continue to be reported in comprehensive income. See NOTE 1 , " SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ," " RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS " section for additional information.

STOCK INCENTIVE AND STOCK OPT_3

STOCK INCENTIVE AND STOCK OPTION PLANS (Details) Plan Summaries - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	8,500,000
Stock options' expiration from the date of grant	10 years
Number of shares in every even block of KESIP shares	100
Stock options granted for every even block of 100 KESIP shares purchased by the employee	50
Vesting period	2 years
Compensation expense (net of estimated forfeitures)	$ 1	$ 2	$ 1
Excess tax benefit / (deficiency) associated with share-based plans	2	2	1
Total unrecognized compensation expense (net of estimated forfeitures)	$ 46
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Target award based on the actual performance (as a percent)	0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Target award based on the actual performance (as a percent)	200.00%
Weighted-average maximum period of recognition of total unrecognized compensation expense related to nonvested awards	2 years
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years
Compensation expense (net of estimated forfeitures)	$ 52	$ 39	$ 31

STOCK INCENTIVE AND STOCK OPT_4

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 2) Share Based Activity - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock option plan activity
Balance, at the beginning of the period (in shares)	2,901,369	2,734,764	2,029,686
Granted (in shares)	515,320	648,900	984,430
Exercised (in shares)	(140,133)	(355,479)	(215,890)
Forfeited (in shares)	(32,894)	(126,816)	(63,462)
Balance, at the end of the period (in shares)	3,243,662	2,901,369	2,734,764
Exercisable (in shares)	1,366,722	1,063,889	1,149,549
Weighted average exercise price activity
Weighted-average Exercise Price at the beginning of the period (in dollars per share)	$ 123.49	$ 115.02	$ 115.02
Weighted-average Exercise Price Granted (in dollars per share)	159.06	149.98	109.24
Weighted-average Exercise Price Exercised (in dollars per share)	88.74	105.91	87.27
Weighted-average Exercise Price Forfeited (in dollars per share)	133	125.65	119.56
Weighted-average Exercise Price at the end of the period (in dollars per share)	130.55	123.49	115.02
Weighted-average Exercise Price Exercisable (in dollars per share)	$ 124.97	$ 115.26	$ 104.19
Weighted-average remaining contractual life of options outstanding	6 years 8 months 12 days
Weighted-average remaining contractual life of options exercisable	4 years 8 months 12 days	4 years 8 months 12 days	4 years 9 months 18 days
Aggregate intrinsic value of options outstanding	$ 37
Aggregate intrinsic value of options exercisable	$ 18	$ 66	$ 38
Weighted average grant date fair value of options granted (in dollars per share)	$ 34.21	$ 36.86	$ 25.28
Total intrinsic value of options exercised	$ 9	$ 19	$ 9

STOCK INCENTIVE AND STOCK OPT_5

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 3) Grant Date Fair Value - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Vesting period	2 years
Black-Scholes option pricing model assumptions
Expected life	6 years	6 years	5 years
Risk-free interest rate	2.72%	2.08%	1.34%
Expected volatility	25.40%	29.97%	30.96%
Dividend yield	2.48%	2.28%	2.10%
Performance Shares
Share-based compensation plan, other than stock options, activity
Nonvested at the beginning of the period (in shares)	411,239	404,494	420,369
Granted (in shares)	124,700	150,225	169,150
Vested (in shares)	(80,996)	(85,020)	(115,680)
Forfeited (in shares)	(44,593)	(58,460)	(69,345)
Nonvested at the end of the period (in shares)	410,350	411,239	404,494
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Weighted-average Fair Value, Nonvested at the beginning of the period (in dollars per share)	$ 120.84	$ 120.41	$ 123.88
Granted (in dollars per share)	146.50	138.23	98.26
Vested (in dollars per share)	128.47	141.50	106.55
Forfeited (in dollars per share)	127.90	132.52	110.52
Weighted-average Nonvested, Outstanding at the end of the period (in dollars per share)	$ 126.36	$ 120.84	$ 120.41
Total fair value of equity instruments other than options vested in period (in dollars)	$ 13	$ 13	$ 12
Vesting period	3 years
Restricted Shares
Share-based compensation plan, other than stock options, activity
Nonvested at the beginning of the period (in shares)	8,089	9,841	4,254
Granted (in shares)	0	0	8,089
Vested (in shares)	(2,696)	(1,752)	(2,502)
Forfeited (in shares)	0	0	0
Nonvested at the end of the period (in shares)	5,393	8,089	9,841
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Weighted-average Fair Value, Nonvested at the beginning of the period (in dollars per share)	$ 117.68	$ 115.76	$ 111.40
Granted (in dollars per share)	0	0	117.69
Vested (in dollars per share)	117.68	106.89	114.57
Forfeited (in dollars per share)	0	0	0
Weighted-average Nonvested, Outstanding at the end of the period (in dollars per share)	$ 117.68	$ 117.68	$ 115.76
Total fair value of equity instruments other than options vested in period (in dollars)	$ 1	$ 1	$ 1
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
Share based Compensation Arrangement by Share based Payment Award, Portion of Shares Released Each Year	33.33%

NONCONTROLLING INTERESTS (Detai

NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions		Dec. 31, 2018	Dec. 31, 2017
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest		$ 911	$ 905
Eaton Automated Transmission Technologies
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	[1]	602	609
Cummins India Ltd.
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	[2]	293	280
Other
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest		16	16
Tax Legislation Impact | Cummins India Ltd.
Noncontrolling Interest
Noncontrolling interests in the equity		$ 24	$ 43
[1]	See Note 19 , " ACQUISITIONS
[2]	Noncontrolling interest for Cummins India Ltd. increased $24 million and decreased $43 million in 2018 and 2017, respectively, primarily due to withholding taxes on foreign earnings as a result of Tax Legislation. See Note 4 , " INCOME TAXES ," to our Consolidated Financial Statements for additional information .

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended																12 Months Ended
	Dec. 31, 2018	[1]	Sep. 30, 2018	[1]	Jul. 01, 2018	[1],[2]	Apr. 01, 2018	[1],[2]	Dec. 31, 2017	[1]	Oct. 01, 2017		Jul. 02, 2017		Apr. 02, 2017		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 579		$ 692		$ 545		$ 325		$ (274)		$ 453		$ 424		$ 396		$ 2,141	$ 999	$ 1,394
Weighted-average common shares outstanding:
Basic (in shares)																	162,172,831	166,625,320	169,038,410
Dilutive effect of stock compensation awards (in shares)																	600,516	645,545	298,206
Diluted (in shares)																	162,773,347	167,270,865	169,336,616
Options excluded (in shares)																	969,385	31,991	1,091,799
Earnings per common share attributable to Cummins Inc.
Basic (in dollars per share)	$ 3.65	[3]	$ 4.29	[3]	$ 3.33	[3]	$ 1.97	[3]	$ (1.66)	[3]	$ 2.72	[3]	$ 2.53	[3]	$ 2.36	[3]	$ 13.20	$ 5.99	$ 8.25
Diluted (in dollars per share)	$ 3.63	[3]	$ 4.28	[3]	$ 3.32	[3]	$ 1.96	[3]	$ (1.65)	[3]	$ 2.71	[3]	$ 2.53	[3]	$ 2.36	[3]	$ 13.15	$ 5.97	$ 8.23
[1]	Net income attributable to Cummins Inc., basic and diluted earnings per share were impacted by Tax Legislation adjustments. Net income attributable to Cummins Inc. was reduced by $74 million and $8 million , in the first and second quarter, respectively, while it increased in the third and fourth quarter $33 million and $10 million , respectively. Basic and diluted earnings per share were reduced by $0.45 per share and $0.05 per share in the first and second quarter, respectively, while they increased in the third and fourth quarter by $0.20 per share and $0.06 per share , respectively. Net income attributable to Cummins Inc. and earnings per share were negatively impacted by $777 million related to Tax Legislation. For the fourth quarter of 2017, results for basic and diluted earnings per share were reduced by $4.70 per share and $4.68 per share
[2]	Gross margin, net income attributable to Cummins Inc. and earnings per share were negatively impacted by an Engine Campaign charge of $187 million ( $144 million after tax) in the first quarter ( $0.87 per basic and diluted share). The second quarter was negatively impacted by an additional charge of $181 million ( $139 million after tax) ( $0.85 per basic and diluted share). In 2017, a charge of $29 million ( $21 million after tax) ( $0.13
[3]	Earnings per share in each quarter is computed using the weighted-average number of shares outstanding during that quarter while earnings per share for the full year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the four quarters earnings per share may not equal the full year earnings per share.

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Millions

Jan. 01, 2019

Aug. 15, 2018

Jan. 31, 2018

Nov. 01, 2017

Jul. 31, 2017

Dec. 05, 2016

Oct. 04, 2016

Jan. 01, 2016

Dec. 31, 2018

Sep. 30, 2018

Jul. 01, 2018

Apr. 01, 2018

Dec. 31, 2017

Oct. 01, 2017

Jul. 02, 2017

Apr. 02, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Jul. 31, 2017

Jul. 31, 2017

Business Acquisition [Line Items]

Goodwill

$ 1,126

$ 1,082

$ 1,126

$ 1,082

$ 480

Amortization of Intangible Assets

153

112

92

Net sales

6,126

$ 5,943

$ 6,132

$ 5,570

$ 5,476

$ 5,285

$ 5,078

$ 4,589

23,771

[1]

20,428

[1]

17,509

[1]

Efficient Drivetrains, Inc.

Business Acquisition [Line Items]

Business Acquisition, Percentage of Voting Interests Acquired

100.00%

Cash paid for business acquisition

$ 51

Payments to Acquire Businesses Liabilities Paid

2

Business Combination, Consideration Transferred

[2]

64

Gain on remeasurement of pre-existing ownership interest in the acquiree company

[3]

0

Goodwill

49

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

[4]

$ 15

Net sales prior to acquisition

3

Johnson Matthey Battery Systems, Ltd.

Business Acquisition [Line Items]

Business Acquisition, Percentage of Voting Interests Acquired

100.00%

Cash paid for business acquisition

$ 9

Payments to Acquire Businesses Liabilities Paid

0

Business Combination, Consideration Transferred

9

Gain on remeasurement of pre-existing ownership interest in the acquiree company

[3]

0

Goodwill

0

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

[4]

$ 5

Net sales prior to acquisition

3

Brammo Inc.

Business Acquisition [Line Items]

Business Acquisition, Percentage of Voting Interests Acquired

100.00%

Cash paid for business acquisition

$ 60

Payments to Acquire Businesses Liabilities Paid

0

Business Combination, Consideration Transferred

[2]

68

Gain on remeasurement of pre-existing ownership interest in the acquiree company

[3]

0

Goodwill

47

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

[4]

$ 23

Net sales prior to acquisition

4

Business Combination, Contingent Consideration, Liability

5

$ 5

Eaton Automated Transmission Technologies

Business Acquisition [Line Items]

Business Acquisition, Percentage of Voting Interests Acquired

50.00%

50.00%

Cash paid for business acquisition

[5]

$ 600

Payments to Acquire Businesses Liabilities Paid

$ 0

Business Combination, Consideration Transferred

600

Gain on remeasurement of pre-existing ownership interest in the acquiree company

[3]

$ 0

Goodwill

544

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

[4]

596

Net sales prior to acquisition

[5]

$ 0

Advances to Affiliate

20

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net

1,200

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory

3

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment

58

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities

1

Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value

600

Finite-Lived Intangible Asset, Useful Life

5 years

Business Acquisition, Goodwill, Expected Tax Deductible Amount

31

Net sales

164

Income (Loss) from Subsidiaries, Net of Tax

$ 11

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

Business Combination, Consideration Transferred

86

Gain on remeasurement of pre-existing ownership interest in the acquiree company

[3]

0

Goodwill

0

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

$ 0

Net sales prior to acquisition

$ 0

Cummins Pacific LLC

Business Acquisition [Line Items]

Business Acquisition, Percentage of Voting Interests Acquired

50.00%

Cash paid for business acquisition

$ 32

Payments to Acquire Businesses Liabilities Paid

67

Business Combination, Consideration Transferred

99

Gain on remeasurement of pre-existing ownership interest in the acquiree company

[3]

15

Goodwill

4

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

[4]

$ 8

Net sales prior to acquisition

[6]

391

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

Business Combination, Consideration Transferred

12

Gain on remeasurement of pre-existing ownership interest in the acquiree company

[3]

0

Goodwill

0

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

$ 0

Net sales prior to acquisition

$ 0

Maximum

Business Acquisition [Line Items]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

25 years

Maximum | Brammo Inc.

Business Acquisition [Line Items]

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High

$ 100

$ 100

Customer Relationships | Eaton Automated Transmission Technologies

Business Acquisition [Line Items]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

424

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

25 years

Fair value inputs, Rate of Return

10.00%

Fair value inputs, Customer attrition rate

3.00%

Technology-Based Intangible Assets | Eaton Automated Transmission Technologies

Business Acquisition [Line Items]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

$ 172

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

15 years

Fair value inputs, Rate of Return

10.00%

Fair value inputs, Market royalty rate

5.00%

Fair Value Inputs, Economic Depreciation Rate

7.50%

Scenario, Forecast | Maximum | Eaton Automated Transmission Technologies

Business Acquisition [Line Items]

Amortization of Intangible Assets

$ 28

[1]

Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016

[2]

The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. 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 Brammo Inc. acquisition contains an earnout based on future results of the acquired business and could result in a maximum contingent consideration payment of $100 million (fair value of $5

[3]

All results from acquired entities (excluding Brammo Inc. in 2017) 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

[4]

Intangible assets acquired in business combinations were mostly customer and technology related, the majority of which will be amortized over a period of`up to 25 years

[5]

This transaction created a newly formed joint venture that we consolidated. See additional information below.

[6]

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.

OPERATING SEGMENTS FINANCIAL IN

OPERATING SEGMENTS FINANCIAL INFORMATION (Details) Reportable Operating Segments, EBITDA Reconciliation to GAAP - USD ($) $ in Millions		3 Months Ended										12 Months Ended
		Dec. 31, 2018		Sep. 30, 2018	Jul. 01, 2018	Apr. 01, 2018	Dec. 31, 2017		Oct. 01, 2017	Jul. 02, 2017	Apr. 02, 2017	Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016		Dec. 31, 2015
Operating results:
Net sales		$ 6,126		$ 5,943	$ 6,132	$ 5,570	$ 5,476		$ 5,285	$ 5,078	$ 4,589	$ 23,771	[1]	$ 20,428	[1]	$ 17,509	[1]
Research, development and engineering expenses												902		754		637
Equity, royalty and interest income from investees												394		357	[2]	301
Interest income												35		18		23
Loss Contingency												0		5	[3]	138	[3]
Segment EBITDA												3,476		3,026		2,526
Depreciation and Amortization	[4]											609		580		527
Amortization of Debt Discount												2		3		3
Tax Legislation Impact to JV Earnings														152
Interest Expense												114		81		69
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest												2,753		2,365		1,930
Statement of Financial Position [Abstract]
Net assets	[5],[6]	9,220					8,574					9,220		8,574		7,336
Investments and advances to equity method investees		1,222					1,156					1,222		1,156		946
Capital expenditures												709		506		531
Engine
Operating results:
Net sales												10,566		8,953		7,804
Research, development and engineering expenses												311		280		227
Equity, royalty and interest income from investees												238		219	[2]	148
Interest income												11		6		10
Loss Contingency							5	[3]								138	[3]	$ 60
Segment EBITDA												1,446		1,143		849
Depreciation and Amortization	[4]											190		184		163
Statement of Financial Position [Abstract]
Net assets	[6]	1,265					1,180					1,265		1,180		1,334
Investments and advances to equity method investees		561					531					561		531		427
Capital expenditures												254		188		200
Distribution
Operating results:
Net sales												7,828		7,058		6,181
Research, development and engineering expenses												20		19		13
Equity, royalty and interest income from investees												46		44	[2]	70
Interest income												13		6		4
Segment EBITDA												563		500		508	[7]
Depreciation and Amortization	[4]											109		116		116
Gain on remeasurement of pre-existing ownership interest in the acquiree company														15
Statement of Financial Position [Abstract]
Net assets	[6]	2,677					2,446					2,677		2,446		2,157
Investments and advances to equity method investees		278					267					278		267		204
Capital expenditures												133		101		96
Components
Operating results:
Net sales												7,166	[8]	5,889	[8]	4,836
Research, development and engineering expenses												272	[8]	241	[8]	208
Equity, royalty and interest income from investees												54	[8]	40	[2],[8]	41
Interest income												5	[8]	3	[8]	4
Segment EBITDA												1,030	[8]	917	[8]	774
Depreciation and Amortization	[4]											185	[8]	163	[8]	133
Statement of Financial Position [Abstract]
Net assets	[6]	2,878	[8]				2,811	[8]				2,878	[8]	2,811	[8]	1,643
Investments and advances to equity method investees		206	[8]				194	[8]				206	[8]	194	[8]	176
Capital expenditures												182	[8]	127	[8]	143
Power Systems
Operating results:
Net sales												4,626		4,058		3,517
Research, development and engineering expenses												230		214		189
Equity, royalty and interest income from investees												56		54		42
Interest income												6		3		5
Segment EBITDA												614		411		378	[9]
Depreciation and Amortization	[4]											119		117		115
Statement of Financial Position [Abstract]
Net assets	[6]	2,262					2,137					2,262		2,137		2,202
Investments and advances to equity method investees		177					164					177		164		139
Capital expenditures												129		90		92
Power Systems | Cummins Olayan Energy
Operating results:
Gain (Loss) on Sale of Equity Investments																17
Electrified Power
Operating results:
Net sales												7		0		0
Research, development and engineering expenses												69		0		0
Equity, royalty and interest income from investees												0		0		0
Interest income												0		0		0
Segment EBITDA												(90)		0		0
Depreciation and Amortization												6	[4]	0	[4]	0
Statement of Financial Position [Abstract]
Net assets	[6]	138					0					138		0		0
Investments and advances to equity method investees		0					0					0		0		0
Capital expenditures												11		0		0
Total Segment
Operating results:
Net sales												30,193		25,958		22,338
Research, development and engineering expenses												902		754		637
Equity, royalty and interest income from investees												394		357	[2]	301
Interest income												35		18		23
Loss Contingency	[3]													5		138
Segment EBITDA												3,563		2,971		2,509
Depreciation and Amortization	[4]											609		580		527
Statement of Financial Position [Abstract]
Net assets	[6]	9,220					8,574					9,220		8,574		7,336
Investments and advances to equity method investees		$ 1,222					$ 1,156					1,222		1,156		946
Capital expenditures												709		506		531
Intersegment Eliminations
Operating results:
Net sales	[10]											(6,422)		(5,530)		(4,829)
Non-Segment Items
Operating results:
Segment EBITDA	[10]											(87)		55		17
External Sales
Operating results:
Net sales												23,771		20,428		17,509
External Sales | Engine
Operating results:
Net sales												8,002		6,661		5,774
External Sales | Distribution
Operating results:
Net sales												7,807		7,029		6,157
External Sales | Components
Operating results:
Net sales												5,331	[8]	4,363	[8]	3,514
External Sales | Power Systems
Operating results:
Net sales												2,625		2,375		2,064
External Sales | Electrified Power
Operating results:
Net sales												6		0		0
External Sales | Total Segment
Operating results:
Net sales												23,771		20,428		17,509
Intersegment sales | Engine
Operating results:
Net sales												2,564		2,292		2,030
Intersegment sales | Distribution
Operating results:
Net sales												21		29		24
Intersegment sales | Components
Operating results:
Net sales												1,835	[8]	1,526	[8]	1,322
Intersegment sales | Power Systems
Operating results:
Net sales												2,001		1,683		1,453
Intersegment sales | Electrified Power
Operating results:
Net sales												1		0		0
Intersegment sales | Total Segment
Operating results:
Net sales												6,422		5,530		4,829
Intersegment sales | Intersegment Eliminations
Operating results:
Net sales	[10]											$ (6,422)		(5,530)		$ (4,829)
Tax Legislation Impact | Engine
Operating results:
Tax Legislation Impact to JV Earnings														(23)
Tax Legislation Impact | Distribution
Operating results:
Tax Legislation Impact to JV Earnings														(4)
Tax Legislation Impact | Components
Operating results:
Tax Legislation Impact to JV Earnings														$ (12)
[1]	Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016
[2]	U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million , $4 million and $12 million for the Engine, Distribution and Components segments, respectively. See Note 4 , " INCOME TAXES
[3]	See Note 9 , " PRODUCT WARRANTY LIABILITY
[4]	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 $2 million , $3 million and $3 million for the years ended 2018, 2017 and 2016, respectively.
[5]	In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level.
[6]	In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level.
[7]	Distribution segment EBITDA included gains on the fair value adjustment resulting from the acquisition of controlling interests in North American distributors of $15 million for the year ended December 31, 2016 . See Note 19 , " ACQUISITIONS
[8]	Includes Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See Note 19 , " ACQUISITIONS
[9]	Power Systems segment EBITDA included a $17 million gain on the sale of an equity investee for the year ended December 31, 2016. See Note 3 , " INVESTMENTS IN EQUITY INVESTEES
[10]	Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the years ended 2018, 2017 and 2016, respectively.

OPERATING SEGMENTS - (Details 2

OPERATING SEGMENTS - (Details 2) Geographic Information and Largest Customer - USD ($) $ in Millions		3 Months Ended									12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jul. 01, 2018	Apr. 01, 2018	Dec. 31, 2017		Oct. 01, 2017	Jul. 02, 2017	Apr. 02, 2017	Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
Segment reporting
Net assets for operating segments (1)	[1],[2]	$ 9,220				$ 8,574					$ 9,220		$ 8,574		$ 7,336
Cash, cash equivalents and marketable securities		1,525				1,567					1,525		1,567		1,380
Brammo Inc. assets		0				72	[3]				0		72	[3]	0
Liabilities Deducted to Calculate Net Assets		7,836				7,398					7,836		7,398		6,157
Pension and other postretirement adjustments excluded from net assets		68				156					68		156		(284)
Deferred Tax Assets Not Allocated to Segments		410				306					410		306		420
Debt-related costs not allocated to segments		3				2					3		2		2
Assets		19,062				18,075					19,062		18,075		15,011
Long-lived assets		5,863				5,769					5,863		5,769		5,318
Net sales		6,126	$ 5,943	$ 6,132	$ 5,570	5,476		$ 5,285	$ 5,078	$ 4,589	23,771	[4]	20,428	[4]	17,509	[4]
United States
Segment reporting
Long-lived assets		3,174				3,157					3,174		3,157		3,092
Net sales											13,218		11,010		9,476
China
Segment reporting
Long-lived assets		823				795					823		795		652
Net sales											2,324		2,137		1,544
India
Segment reporting
Long-lived assets		577				563					577		563		475
Net sales											965		805		621
United Kingdom
Segment reporting
Long-lived assets		337				339					337		339		254
Netherlands
Segment reporting
Long-lived assets		234				221					234		221		197
Mexico
Segment reporting
Long-lived assets		171				136					171		136		131
Canada
Segment reporting
Long-lived assets		114				116					114		116		132
Brazil
Segment reporting
Long-lived assets		104				149					104		149		149
Other foreign countries
Segment reporting
Long-lived assets		$ 329				$ 293					329		293		236
Net sales											7,264		6,476		5,868
Sales Revenue, Goods, Net
Segment reporting
Net sales											$ 3,643		$ 2,893		$ 2,359
Concentration Risk, Percentage											15.00%		14.00%		13.00%
[1]	In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level.
[2]	In 2018, we reevaluated our net asset allocation methodology and realigned it to both simplify and better represent our reportable segments consistent with how the Chief Operating Decision Maker evaluates them. In accordance with the realignment, we reclassified historical segment net assets for 2016 and 2017 to be consistent with our 2018 presentation. Key changes during the realignment were to remove cash equivalents and marketable securities from segment net assets as these corporate items are not managed and evaluated at the segment level.
[3]	Assets associated with the Brammo Inc. acquisition were presented as a reconciling item as Brammo Inc. had not yet been assigned to a reportable segment at December 31, 2017. See Note 19 , " ACQUISITIONS
[4]	Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016

QUARTERLY FINANCIAL INFORMATI_3

QUARTERLY FINANCIAL INFORMATION DISCLOSURE (unaudited) (Details) $ / shares in Units, $ in Millions	3 Months Ended																12 Months Ended
	Dec. 31, 2018USD ($)$ / shares		Sep. 30, 2018USD ($)$ / shares		Jul. 01, 2018USD ($)$ / shares		Apr. 01, 2018USD ($)$ / shares		Dec. 31, 2017USD ($)$ / shares		Oct. 01, 2017USD ($)$ / shares		Jul. 02, 2017USD ($)$ / shares		Apr. 02, 2017USD ($)$ / shares		Dec. 31, 2018USD ($)$ / shares		Dec. 31, 2017USD ($)$ / shares		Dec. 31, 2016USD ($)$ / shares
Effect of Fourth Quarter Events [Line Items]
Net sales | $	$ 6,126		$ 5,943		$ 6,132		$ 5,570		$ 5,476		$ 5,285		$ 5,078		$ 4,589		$ 23,771	[1]	$ 20,428	[1]	$ 17,509	[1]
Gross Profit | $	1,546		1,551		1,440	[2]	1,200	[2]	1,376		1,341		1,251		1,132		5,737		5,100		4,458
NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $	$ 579	[3]	$ 692	[3]	$ 545	[2],[3]	$ 325	[2],[3]	$ (274)	[3]	$ 453		$ 424		$ 396		$ 2,141		$ 999		$ 1,394
Basic (in dollars per share)	$ 3.65	[3],[4]	$ 4.29	[3],[4]	$ 3.33	[2],[3],[4]	$ 1.97	[2],[3],[4]	$ (1.66)	[3],[4]	$ 2.72	[4]	$ 2.53	[4]	$ 2.36	[4]	$ 13.20		$ 5.99		$ 8.25
Diluted (in dollars per share)	3.63	[3],[4]	4.28	[3],[4]	3.32	[2],[3],[4]	1.96	[2],[3],[4]	(1.65)	[3],[4]	2.71	[4]	2.53	[4]	2.36	[4]	$ 13.15		$ 5.97		$ 8.23
Cash dividend (in dollars per share)	$ 1.14		$ 1.14		$ 1.08		$ 1.08		1.08		$ 1.08		1.025		1.025
Selected Quarterly Financial Information [Abstract]
Product Liability Accrual, Period Expense | $					$ 181		$ 187				$ 29								$ 36
Product Liability Accrual, Period Expense, Net of Tax | $					139		144				$ 21
Total Tax Legislation Impact Net | $	$ 10		$ 33		$ (8)		$ (74)												$ (777)
Registered Shareholders Total	3,256																3,256
Maximum
Effect of Fourth Quarter Events [Line Items]
Sale of Stock, Price Per Share	$ 156.49		$ 151.87		$ 172.08		$ 194.18		181.79		$ 170.68		164.23		155.51		$ 156.49		$ 181.79
Minimum
Effect of Fourth Quarter Events [Line Items]
Sale of Stock, Price Per Share	124.40		129.90		131.58		154.58		158.75		150.25		$ 143.83		$ 134.06		$ 124.40		$ 158.75
Tax Legislation Impact
Effect of Fourth Quarter Events [Line Items]
Basic (in dollars per share)	0.06		0.20		(0.05)		(0.45)		(4.70)
Diluted (in dollars per share)	$ 0.06		$ 0.20		(0.05)		(0.45)		$ (4.68)
Engine Campaign
Effect of Fourth Quarter Events [Line Items]
Basic (in dollars per share)					(0.85)		(0.87)				(0.13)
Diluted (in dollars per share)					$ (0.85)		$ (0.87)				$ (0.13)
[1]	Includes sales to nonconsolidated equity investees of $1,267 million , $1,174 million and $1,028 million for the years ended December 31, 2018 , 2017 and 2016
[2]	Gross margin, net income attributable to Cummins Inc. and earnings per share were negatively impacted by an Engine Campaign charge of $187 million ( $144 million after tax) in the first quarter ( $0.87 per basic and diluted share). The second quarter was negatively impacted by an additional charge of $181 million ( $139 million after tax) ( $0.85 per basic and diluted share). In 2017, a charge of $29 million ( $21 million after tax) ( $0.13
[3]	Net income attributable to Cummins Inc., basic and diluted earnings per share were impacted by Tax Legislation adjustments. Net income attributable to Cummins Inc. was reduced by $74 million and $8 million , in the first and second quarter, respectively, while it increased in the third and fourth quarter $33 million and $10 million , respectively. Basic and diluted earnings per share were reduced by $0.45 per share and $0.05 per share in the first and second quarter, respectively, while they increased in the third and fourth quarter by $0.20 per share and $0.06 per share , respectively. Net income attributable to Cummins Inc. and earnings per share were negatively impacted by $777 million related to Tax Legislation. For the fourth quarter of 2017, results for basic and diluted earnings per share were reduced by $4.70 per share and $4.68 per share
[4]	Earnings per share in each quarter is computed using the weighted-average number of shares outstanding during that quarter while earnings per share for the full year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the four quarters earnings per share may not equal the full year earnings per share.