Cummins (CMI) 10-Q 30 Jul 19 2019 Q2 Quarterly report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document - $ / shares	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Cover page.
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity File Number	1-4949
Entity Registrant Name	CUMMINS INC.
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-0257090
Entity Address, Address Line One	500 Jackson Street
Entity Address, Address Line Two	Box 3005
Entity Address, City or Town	Columbus
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47202-3005
City Area Code	812
Local Phone Number	377-5000
Title of 12(b) Security	Common stock, $2.50 par value
Trading Symbol	CMI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	157,786,322
Common Stock, Par or Stated Value Per Share	$ 2.50	$ 2.50
Entity Central Index Key	0000026172
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Amendment Flag	false
Document Transition Report	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Income Statement [Abstract]
Net Sales	[1]	$ 6,221	$ 6,132	$ 12,225	$ 11,702
Cost of sales		4,580	4,692	9,052	9,062
GROSS MARGIN		1,641	1,440	3,173	2,640
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses		629	613	1,222	1,190
Research, development and engineering expenses		251	219	488	429
Equity, royalty and interest income from investees (Note 5)		96	110	188	225
Other operating income (expense), net		(9)	4	(4)	6
OPERATING INCOME		848	722	1,647	1,252
Interest income		12	10	24	17
Interest expense		29	28	61	52
Other income, net		40	11	106	21
INCOME BEFORE INCOME TAXES		871	715	1,716	1,238
Income tax expense		186	161	362	359
CONSOLIDATED NET INCOME		685	554	1,354	879
Less: Net income attributable to noncontrolling interests		10	9	16	9
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$ 675	$ 545	$ 1,338	$ 870
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic (in dollars per share)		$ 4.29	$ 3.33	$ 8.51	$ 5.30
Diluted (in dollars per share)		$ 4.27	$ 3.32	$ 8.47	$ 5.27
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		157.4	163.8	157.3	164.3
Dilutive effect of stock compensation awards (in shares)		0.6	0.5	0.6	0.7
Diluted (in shares)		158	164.3	157.9	165
Sales to nonconsolidated equity investees		$ 317	$ 340	$ 602	$ 637
[1]	Includes sales to nonconsolidated equity investees of $317 million and $602 million and $340 million and $637 million for the three and six months ended June 30, 2019 and July 1, 2018 , respectively.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$ 685	$ 554	$ 1,354	$ 879
Other comprehensive income (loss), net of tax (Note 13)
Change in pension and other postretirement defined benefit plans	7	13	(4)	21
Foreign currency translation adjustments	(99)	(299)	(15)	(215)
Unrealized gain (loss) on derivatives	(10)	0	(11)	7
Unrealized gain on marketable securities	1	0	0	0
Total other comprehensive loss, net of tax	(101)	(286)	(30)	(187)
COMPREHENSIVE INCOME	584	268	1,324	692
Less: Comprehensive income (loss) attributable to noncontrolling interests	10	(7)	19	(14)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 574	$ 275	$ 1,305	$ 706

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents		$ 1,397	$ 1,303
Marketable securities (Note 6)		335	222
Total cash, cash equivalents and marketable securities		1,732	1,525
Accounts and notes receivable, net
Trade and other		3,899	3,635
Nonconsolidated equity investees		280	231
Inventories (Note 7)		3,896	3,759
Prepaid expenses and other current assets		643	668
Total current assets		10,450	9,818
Long-term assets
Property, plant and equipment		8,424	8,319
Accumulated depreciation		(4,347)	(4,223)
Property, plant and equipment, net		4,077	4,096
Investments and advances related to equity method investees		1,274	1,222
Goodwill		1,125	1,126
Other intangible assets, net		901	909
Pension assets		960	929
Other assets		1,467	962
Total assets		20,254	19,062
Current liabilities
Accounts payable (principally trade)		2,991	2,822
Loans payable (Note 10)	[1]	119	54
Commercial paper (Note 10)	[2]	434	780
Accrued compensation, benefits and retirement costs		465	679
Current portion of accrued product warranty (Note 11)		809	654
Current portion of deferred revenue (Note 3)		505	498
Other accrued expenses (Note 8)		920	852
Current maturities of long-term debt (Note 10)		46	45
Total current liabilities		6,289	6,384
Long-term liabilities
Long-term debt (Note 10)		1,624	1,597
Pensions and other postretirement benefits		522	532
Accrued product warranty (Note 11)		663	740
Deferred revenue (Note 3)		726	658
Other liabilities (Note 8)		1,234	892
Total liabilities		11,058	10,803
Commitments and contingencies (Note 12)
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued		2,307	2,271
Retained earnings		13,897	12,917
Treasury stock, at cost, 64.6 and 64.4 shares		(6,082)	(6,028)
Common stock held by employee benefits trust, at cost, 0.3 and 0.4 shares		(4)	(5)
Accumulated other comprehensive loss (Note 13)		(1,840)	(1,807)
Total Cummins Inc. shareholders' equity		8,278	7,348
Noncontrolling interests		918	911
Total equity		9,196	8,259
Total liabilities and equity		$ 20,254	$ 19,062
[1]	Loans payable consist primarily of notes payable to various domestic and international financial institutions and it is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate.
[2]	The weighted-average interest rate, inclusive of all brokerage fees, was 2.56 percent and 2.59 percent at June 30, 2019 and December 31, 2018 , respectively.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Jun. 30, 2019	Dec. 31, 2018
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	64.6	64.4
Common stock held by employee benefits trust, shares	0.3	0.4

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 1,354	$ 879
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	315	308
Deferred income taxes	17	(21)
Equity in income of investees, net of dividends	(43)	(163)
Pension contributions (in excess of) under expense, net (Note 4)	(45)	25
Other postretirement benefits payments in excess of expense, net (Note 4)	(10)
Stock-based compensation expense	28	28
Gain on corporate owned life insurance	(55)	0
Foreign currency remeasurement and transaction exposure	46	(21)
Changes in current assets and liabilities
Accounts and notes receivable	(312)	(555)
Inventories	(125)	(475)
Other current assets	15	(42)
Accounts payable	148	442
Accrued expenses	(194)	94
Changes in other liabilities	120	5
Other, net	(39)	(31)
Net cash provided by operating activities	1,220	473
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(242)	(186)
Investments in internal use software	(34)	(35)
Investments in and advances to equity investees	(18)	(15)
Investments in marketable securities—acquisitions	(259)	(143)
Investments in marketable securities—liquidations (Note 6)	153	116
Cash flows from derivatives not designated as hedges	(26)	(9)
Other, net	15	36
Net cash used in investing activities	(411)	(236)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (payments) borrowings of commercial paper (Note 10)	(346)	504
Payments on borrowings and finance lease obligations	(17)	(33)
Net borrowings (payments) under short-term credit agreements	57	(1)
Distributions to noncontrolling interests	(13)	(11)
Dividend payments on common stock	(358)	(355)
Repurchases of common stock	(100)	(379)
Other, net	66	22
Net cash used in financing activities	(711)	(253)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(4)	(35)
Net increase (decrease) in cash and cash equivalents	94	(51)
Cash and cash equivalents at beginning of year	1,303	1,369
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 1,397	$ 1,318

CONDENSED CONSOLIDATED STATEM_4

CONDENSED 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 BEGINNING OF 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
Adoption of new accounting standards (1)	[1]	30			30				30
Net income		879			870				870	9
Other comprehensive income, net of tax (Note 13)		(187)						(164)	(164)	(23)
Issuance of common stock		8		8					8
Employee benefits trust activity		9		8			1		9
Repurchases of common stock		(379)				(379)			(379)
Cash dividends on common stock		(355)			(355)				(355)
Distributions to noncontrolling interests		(11)								(11)
Stock based awards		4		(4)		8			4
Other shareholder transactions		32		17					17	15
BALANCE AT END OF PERIOD at Jul. 01, 2018		8,194	556	1,683	12,009	(5,276)	(6)	(1,667)	7,299	895
BALANCE AT BEGINNING OF PERIOD at Apr. 01, 2018		8,296	556	1,661	11,641	(5,061)	(6)	(1,397)	7,394	902
Increase (Decrease) in Shareholders' Equity
Net income		554			545				545	9
Other comprehensive income, net of tax (Note 13)		(286)						(270)	(270)	(16)
Issuance of common stock		5		5					5
Employee benefits trust activity		2		2					2
Repurchases of common stock		(216)				(216)			(216)
Cash dividends on common stock		(177)			(177)				(177)
Stock based awards		1				1			1
Other shareholder transactions		15		15					15
BALANCE AT END OF PERIOD at Jul. 01, 2018		8,194	556	1,683	12,009	(5,276)	(6)	(1,667)	7,299	895
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2018		8,259	556	1,715	12,917	(6,028)	(5)	(1,807)	7,348	911
Increase (Decrease) in Shareholders' Equity
Net income		1,354			1,338				1,338	16
Other comprehensive income, net of tax (Note 13)		(30)						(33)	(33)	3
Issuance of common stock		2		2					2
Employee benefits trust activity		21		20			1		21
Repurchases of common stock		(100)				(100)			(100)
Cash dividends on common stock		(358)			(358)				(358)
Distributions to noncontrolling interests		(13)								(13)
Stock based awards		43		(3)		46			43
Other shareholder transactions		18		17					17	1
BALANCE AT END OF PERIOD at Jun. 30, 2019		9,196	556	1,751	13,897	(6,082)	(4)	(1,840)	8,278	918
BALANCE AT BEGINNING OF PERIOD at Mar. 31, 2019		8,727	556	1,717	13,401	(6,111)	(4)	(1,739)	7,820	907
Increase (Decrease) in Shareholders' Equity
Net income		685			675				675	10
Other comprehensive income, net of tax (Note 13)		(101)						(101)	(101)	0
Issuance of common stock		1		1					1
Employee benefits trust activity		7		7					7
Cash dividends on common stock		(179)			(179)				(179)
Stock based awards		37		8		29			37
Other shareholder transactions		19		18					18	1
BALANCE AT END OF PERIOD at Jun. 30, 2019		$ 9,196	$ 556	$ 1,751	$ 13,897	$ (6,082)	$ (4)	$ (1,840)	$ 8,278	$ 918
[1]	Includes $28 million related to adoption of the revenue recognition standard and $2 million related to adoption of the accounting for certain financial instruments standard. See Note 1, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted and Recently Issued Accounting Pronouncements” of the Notes to the Consolidated Financial Statements of our 2018 Form 10-K

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.14	$ 1.08	$ 2.28	$ 2.16

NATURE OF OPERATIONS

NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1. NATURE OF OPERATIONS Cummins Inc. (“Cummins,” “we,” “our” or “us”) was founded in 1919 as 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.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	NOTE 2. BASIS OF PRESENTATION Interim Condensed Financial Statements The unaudited Condensed Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows. All such adjustments are of a normal recurring nature. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles in the United States of America ( GAAP ) pursuant to the rules and regulations of the Securities and Exchange Commission ( SEC ) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations. These interim condensed financial statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Our interim period financial results for the three and six month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP . Reclassifications Certain amounts for prior year periods have been reclassified to conform to the presentation of the current year. Use of Estimates in Preparation of 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 Condensed Consolidated Financial Statements . Significant estimates and assumptions in these Condensed Consolidated Financial Statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Reporting Period Our reporting period usually ends on the Sunday closest to the last day of the quarterly calendar period. The second quarters of 2019 and 2018 ended on June 30 and July 1, respectively. Our fiscal year ends on December 31, regardless of the day of the week on which December 31 falls. Weighted-Average Diluted Shares Outstanding 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: Three months ended Six months ended June 30, July 1, June 30, July 1, Options excluded 234,947 909,394 509,261 458,130

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 3. REVENUE RECOGNITION Long-term Contracts 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 June 30, 2019, was $703 million . We expect to recognize the related revenue of $147 million over the next 12 months and $556 million over periods up to 10 years . See NOTE 11 , " 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 following is a summary of our unbilled and deferred revenue and related activity: In millions June 30, December 31, Unbilled revenue $ 65 $ 64 Deferred revenue, primarily extended warranty 1,231 1,156 We recognized revenue of $94 million and $203 million and $78 million and $206 million for the three and six months ended June 30, 2019 and July 1, 2018, respectively, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2019 . 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. Three months ended Six months ended In millions June 30, July 1, June 30, July 1, United States $ 3,611 $ 3,384 $ 7,047 $ 6,422 China 644 644 1,217 1,194 India 234 247 458 482 Other international 1,732 1,857 3,503 3,604 Total net sales $ 6,221 $ 6,132 $ 12,225 $ 11,702 Segment Revenue Engine segment external sales by market were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Heavy-duty truck $ 754 $ 730 $ 1,477 $ 1,344 Medium-duty truck and bus 630 714 1,240 1,341 Light-duty automotive 435 330 765 653 Total on-highway 1,819 1,774 3,482 3,338 Off-highway 254 276 575 525 Total sales $ 2,073 $ 2,050 $ 4,057 $ 3,863 Distribution segment external sales by region were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, North America $ 1,374 $ 1,349 $ 2,766 $ 2,623 Asia Pacific 223 211 443 398 Europe 122 143 245 274 China 101 84 182 161 Africa and Middle East 55 62 110 123 India 49 49 96 93 Latin America 46 45 86 83 Russia 45 45 80 80 Total sales $ 2,015 $ 1,988 $ 4,008 $ 3,835 Distribution segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Parts $ 827 $ 815 $ 1,668 $ 1,618 Power generation 425 345 826 670 Engines 392 460 781 828 Service 371 368 733 719 Total sales $ 2,015 $ 1,988 $ 4,008 $ 3,835 Components segment external sales by business were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Emission solutions $ 735 $ 735 $ 1,484 $ 1,419 Filtration 263 257 522 514 Turbo technologies 181 201 371 398 Automated transmissions 156 141 305 258 Electronics and fuel systems 66 68 120 126 Total sales $ 1,401 $ 1,402 $ 2,802 $ 2,715 Power Systems segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Power generation $ 380 $ 390 $ 688 $ 700 Industrial 246 208 477 409 Generator technologies 98 93 182 177 Total sales $ 724 $ 691 $ 1,347 $ 1,286

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 3. REVENUE RECOGNITION Long-term Contracts 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 June 30, 2019, was $703 million . We expect to recognize the related revenue of $147 million over the next 12 months and $556 million over periods up to 10 years . See NOTE 11 , " 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 following is a summary of our unbilled and deferred revenue and related activity: In millions June 30, December 31, Unbilled revenue $ 65 $ 64 Deferred revenue, primarily extended warranty 1,231 1,156 We recognized revenue of $94 million and $203 million and $78 million and $206 million for the three and six months ended June 30, 2019 and July 1, 2018, respectively, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2019 . 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. Three months ended Six months ended In millions June 30, July 1, June 30, July 1, United States $ 3,611 $ 3,384 $ 7,047 $ 6,422 China 644 644 1,217 1,194 India 234 247 458 482 Other international 1,732 1,857 3,503 3,604 Total net sales $ 6,221 $ 6,132 $ 12,225 $ 11,702 Segment Revenue Engine segment external sales by market were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Heavy-duty truck $ 754 $ 730 $ 1,477 $ 1,344 Medium-duty truck and bus 630 714 1,240 1,341 Light-duty automotive 435 330 765 653 Total on-highway 1,819 1,774 3,482 3,338 Off-highway 254 276 575 525 Total sales $ 2,073 $ 2,050 $ 4,057 $ 3,863 Distribution segment external sales by region were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, North America $ 1,374 $ 1,349 $ 2,766 $ 2,623 Asia Pacific 223 211 443 398 Europe 122 143 245 274 China 101 84 182 161 Africa and Middle East 55 62 110 123 India 49 49 96 93 Latin America 46 45 86 83 Russia 45 45 80 80 Total sales $ 2,015 $ 1,988 $ 4,008 $ 3,835 Distribution segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Parts $ 827 $ 815 $ 1,668 $ 1,618 Power generation 425 345 826 670 Engines 392 460 781 828 Service 371 368 733 719 Total sales $ 2,015 $ 1,988 $ 4,008 $ 3,835 Components segment external sales by business were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Emission solutions $ 735 $ 735 $ 1,484 $ 1,419 Filtration 263 257 522 514 Turbo technologies 181 201 371 398 Automated transmissions 156 141 305 258 Electronics and fuel systems 66 68 120 126 Total sales $ 1,401 $ 1,402 $ 2,802 $ 2,715 Power Systems segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Power generation $ 380 $ 390 $ 688 $ 700 Industrial 246 208 477 409 Generator technologies 98 93 182 177 Total sales $ 724 $ 691 $ 1,347 $ 1,286

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	6 Months Ended
	Jun. 30, 2019
Retirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	NOTE 4. PENSIONS AND OTHER POSTRETIREMENT BENEFITS We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit plans. Contributions to these plans were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Defined benefit pension plans Voluntary contribution $ 36 $ 4 $ 62 $ 7 Mandatory contribution 8 5 15 11 Defined benefit pension contributions $ 44 $ 9 $ 77 $ 18 Other postretirement benefit plans Benefit payments (rebates), net $ 1 $ (2 ) $ 15 $ 5 Defined contribution pension plans $ 18 $ 21 $ 57 $ 61 During the remainder of 2019 , we anticipate making additional defined benefit pension contributions of $46 million for our United States (U.S.) and United Kingdom (U.K.) pension plans. Approximately $91 million of the estimated $123 million of pension contributions for the full year are voluntary. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2019 net periodic pension cost to approximate $64 million . The components of net periodic pension and other postretirement benefit costs under our plans were as follows: Pension U.S. Plans U.K. Plans Other Postretirement Benefits Three months ended In millions June 30, July 1, June 30, July 1, June 30, July 1, Service cost $ 29 $ 30 $ 6 $ 7 $ — $ — Interest cost 27 24 11 10 3 3 Expected return on plan assets (48 ) (49 ) (18 ) (18 ) — — Amortization of prior service cost 1 — 1 — — — Recognized net actuarial loss 4 9 3 8 — — Net periodic benefit cost $ 13 $ 14 $ 3 $ 7 $ 3 $ 3 Pension U.S. Plans U.K. Plans Other Postretirement Benefits Six months ended In millions June 30, July 1, June 30, July 1, June 30, July 1, Service cost $ 58 $ 60 $ 13 $ 15 $ — $ — Interest cost 54 49 22 21 5 5 Expected return on plan assets (95 ) (98 ) (36 ) (36 ) — — Amortization of prior service cost 1 — 1 — — — Recognized net actuarial loss 8 17 6 15 — — Net periodic benefit cost $ 26 $ 28 $ 6 $ 15 $ 5 $ 5

EQUITY, ROYALTY AND INTEREST IN

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	6 Months Ended
	Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	NOTE 5. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 20 $ 24 $ 41 $ 45 Dongfeng Cummins Engine Company, Ltd. 16 17 30 34 Chongqing Cummins Engine Company, Ltd. 10 15 22 32 All other manufacturers 28 34 55 70 Distribution entities Komatsu Cummins Chile, Ltda. 7 6 13 13 All other distributors — — (1 ) — Cummins share of net income 81 96 160 194 Royalty and interest income 15 14 28 31 Equity, royalty and interest income from investees $ 96 $ 110 $ 188 $ 225

MARKETABLE SECURITIES

MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 6. MARKETABLE SECURITIES A summary of marketable securities, all of which were classified as current, was as follows: June 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 172 $ — $ 172 $ 101 $ — $ 101 Debt mutual funds 140 2 142 103 1 104 Equity mutual funds 17 3 20 16 — 16 Debt securities 1 — 1 1 — 1 Total marketable securities $ 330 $ 5 $ 335 $ 221 $ 1 $ 222 ____________________________________ (1) Unrealized gains and losses for debt securities are recorded in other comprehensive income while unrealized gains and losses for equity securities are recorded in "Other income, net" in our Condensed Consolidated Statements of Net Income . All debt securities are classified as available-for-sale. 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 the first half of 2019 or for the year ended December 31, 2018. A description of the valuation techniques and inputs used for our Level 2 fair value measures is as follows: • 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. • 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. • 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: Six months ended In millions June 30, July 1, Proceeds from sales of marketable securities $ 97 $ 81 Proceeds from maturities of marketable securities 56 35 Investments in marketable securities - liquidations $ 153 $ 116

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 7. INVENTORIES Inventories are stated at the lower of cost or market. Inventories included the following: In millions June 30, December 31, Finished products $ 2,431 $ 2,405 Work-in-process and raw materials 1,591 1,487 Inventories at FIFO cost 4,022 3,892 Excess of FIFO over LIFO (126 ) (133 ) Total inventories $ 3,896 $ 3,759

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA	6 Months Ended
	Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET DATA	NOTE 8. SUPPLEMENTAL BALANCE SHEET DATA Other accrued expenses included the following: In millions June 30, December 31, 2018 Marketing accruals $ 205 $ 199 Other taxes payable 186 196 Current portion of operating lease liabilities 125 — Income taxes payable 75 97 Other 329 360 Other accrued expenses $ 920 $ 852 Other liabilities included the following: In millions June 30, December 31, Operating lease liabilities $ 321 $ — Income taxes payable 293 293 Deferred income taxes 278 263 Accrued compensation 161 173 Other long-term liabilities 181 163 Other liabilities $ 1,234 $ 892

LEASES RECENTLY ADOPTED ACCOUNT

LEASES RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENT (Notes)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	NOTE 9. LEASES Lease Accounting Pronouncement Adoption In February 2016, the Financial Accounting Standards Board (FASB) amended its standards related to the accounting for leases. Under the new standard, lessees are now required to recognize substantially all leases on the balance sheet as both a right-of-use (ROU) asset and a liability. The standard continues to have two types of leases for income statement recognition purposes: operating leases and finance leases. Operating leases 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 the old standard. Finance leases result in an accelerated expense similar to the accounting for capital leases under the old standard. The determination of a lease classification as operating or finance will occur in a manner similar to the old 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. We adopted the new standard on January 1, 2019, using a modified retrospective approach and as a result did not adjust prior periods. Adoption of the standard resulted in the recording of $450 million of operating lease right-of-use assets and operating lease liabilities, but did not have a material impact on our net income or cash flows. The cumulative effect adjustment of adopting the new standard was not material. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification and to not re-evaluate existing contracts as to whether or not they contained a lease. NOTE 15. RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Recently Adopted On January 1, 2019, we adopted the new lease standard in accordance with GAAP. See NOTE 9 , " LEASES ," for detailed information about the adoption of this standard. On January 1, 2019, we adopted the new FASB standard related to accounting for derivatives and hedging. The new standard allows 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. We adopted the new standard on a modified retrospective basis for existing cash flow hedges and prospectively for disclosures. The amendments did not have a material effect on our Condensed Consolidated Financial Statements and no transition adjustment was required upon adoption. The adoption of this standard did not materially change our policies for existing hedges. Accounting Pronouncements Issued But Not Yet Effective 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. 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.

LEASES SUMMARY OF SIGNIFICANT A

LEASES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Lease Policies We determine if an arrangement contains a lease in whole or in part at the inception of the contract. ROU assets represent our right to use an underlying asset for the lease term while lease liabilities represent our obligation to make lease payments arising from the lease. All leases greater than 12 months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. As most of our leases do not provide the information required to determine the implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. This rate is determined considering factors such as the lease term, our credit standing and the economic environment of the location of the lease. We use the implicit rate when readily determinable. Our lease terms include all non-cancelable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that we will exercise that option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of an asset or a liability. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases are generally front-loaded as the finance lease ROU asset is depreciated on a straight-line basis, but interest expense on the liability is recognized utilizing the interest method that results in more expense during the early years of the lease. We have lease agreements with lease and non-lease components, primarily related to real estate, vehicle and Information Technology (IT) leases. For vehicle and real estate leases, we account for the lease and non-lease components as a single lease component. For IT leases, we allocate the payment between the lease and non-lease components based on the relative value of each component.

LEASES FOOTNOTE DISCLOSURE (Not

LEASES FOOTNOTE DISCLOSURE (Notes)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases of Lessee Disclosure	Leases Our lease portfolio consists primarily of real estate and equipment leases. Our real estate leases primarily consist of office, distribution, warehousing and manufacturing facilities. These leases typically range in term from 2 to 30 years and may contain renewal options for periods up to two years at our discretion. Our equipment lease portfolio consists primarily of vehicles (including service vehicles), forktrucks and IT equipment. These leases typically range in term from two years to three years and may contain renewal options. Our leases generally do not contain variable lease payments other than (1) certain foreign real estate leases which have payments indexed to inflation and (2) certain real estate executory costs (such as taxes, insurance and maintenance) which are paid based on actual expenses incurred by the lessor during the year. Our leases generally do not include residual value guarantees other than our service vehicle fleet which has a residual guarantee based on a percentage of the original cost declining over the lease term. The components of our lease expense were as follows: Three months ended Six months ended In millions June 30, June 30, Operating lease cost $ 54 $ 104 Finance lease cost Amortization of right-of-use asset 4 9 Interest expense 3 6 Short-term lease cost 1 2 Variable lease cost 1 2 Total lease cost $ 63 $ 123 Supplemental balance sheet information related to leases: In millions June 30, 2019 Balance Sheet Location Assets Operating lease assets $ 434 Other assets Finance lease assets (1) 128 Property, plant and equipment, net Total lease assets $ 562 Liabilities Current Operating $ 125 Other accrued expenses Finance 12 Current maturities of long-term debt Long-term Operating 321 Other liabilities Finance 113 Long-term debt Total lease liabilities $ 571 ____________________________________ (1) Finance lease assets are recorded net of accumulated amortization of $61 million at June 30, 2019 . Supplemental cash flow and other information related to leases: Three months ended Six months ended In millions June 30, June 30, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 41 $ 77 Operating cash flows from finance leases 3 5 Financing cash flows from finance leases 3 7 Right-of-use assets obtained in exchange for lease obligations: Operating leases 60 78 Finance leases 5 6 Additional information related to leases: June 30, Weighted-average remaining lease term (in years) Operating leases 5.2 Finance leases 14.2 Weighted-average discount rate Operating leases 3.4 % Finance leases 4.2 % Following is a summary of the future minimum lease payments due to finance and operating leases with terms of more than one year at June 30, 2019 , together with the net present value of the minimum payments due to finance leases: In millions Finance Leases Operating Leases 2019 $ 10 $ 73 2020 19 121 2021 16 93 2022 15 69 2023 14 45 After 2023 144 96 Total minimum lease payments $ 218 $ 497 Interest (93 ) (51 ) Present value of net minimum lease payments $ 125 $ 446 Following is a summary of the future minimum lease payments due to 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 to capital leases under the previous lease standard: 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

DEBT

DEBT	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
DEBT	NOTE 10. DEBT Loans Payable and Commercial Paper Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions June 30, December 31, Loans payable (1) $ 119 $ 54 Commercial paper (2) 434 780 ____________________________________ (1) Loans payable consist primarily of notes payable to various domestic and international financial institutions and it is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate. (2) The weighted-average interest rate, inclusive of all brokerage fees, was 2.56 percent and 2.59 percent at June 30, 2019 and December 31, 2018 , respectively. 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. Revolving Credit Facilities We have access to committed credit facilities that total $3.5 billion , including a $1.5 billion 364-day facility that expires August 21, 2019 and a $2.0 billion five-year facility that expires on August 22, 2023. We intend to maintain credit facilities of a similar aggregate amount by renewing or replacing these facilities before expiration. These revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings and for general corporate purposes. At June 30, 2019, the $ 434 million of outstanding commercial paper effectively reduced the $3.5 billion of revolving credit capacity to $3.1 billion and had an additional $211 million available for borrowings under our international and other domestic credit facilities. Long-term Debt A summary of long-term debt was as follows: In millions Interest Rate June 30, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2043 4.875% 500 500 Debentures, due 2098 (1) 5.65% 165 165 Other debt 83 64 Unamortized discount (51 ) (52 ) Fair value adjustments due to hedge on indebtedness 40 25 Finance leases 125 132 Total long-term debt 1,670 1,642 Less: Current maturities of long-term debt 46 45 Long-term debt $ 1,624 $ 1,597 ____________________________________ (1) The effective interest rate on this debt is 7.48% . Principal payments required on long-term debt during the next five years are as follows: In millions 2019 2020 2021 2022 2023 Principal payments $ 37 $ 29 $ 43 $ 8 $ 507 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: In millions June 30, December 31, Fair value of total debt (1) $ 2,535 $ 2,679 Carrying values of total debt 2,223 2,476 _________________________________________________ (1) The fair value of debt is derived from Level 2 inputs. 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 13, 2019. 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.

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	6 Months Ended
	Jun. 30, 2019
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 11. 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: Six months ended In millions June 30, July 1, Balance, beginning of year $ 2,208 $ 1,687 Provision for base warranties issued 259 222 Deferred revenue on extended warranty contracts sold 171 139 Provision for product campaigns issued 134 403 Payments made during period (308 ) (212 ) Amortization of deferred revenue on extended warranty contracts (117 ) (118 ) Changes in estimates for pre-existing product warranties (8 ) 10 Foreign currency translation and other (1 ) (1 ) Balance, end of period $ 2,338 $ 2,130 We recognized supplier recoveries of $3 million and $61 million and $10 million and $13 million for the three and six months ended June 30, 2019 and July 1, 2018, respectively. Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions June 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 224 $ 227 Current portion of deferred revenue Long-term portion 642 587 Deferred revenue Total $ 866 $ 814 Product warranty Current portion $ 809 $ 654 Current portion of accrued product warranty Long-term portion 663 740 Accrued product warranty Total $ 1,472 $ 1,394 Total warranty accrual $ 2,338 $ 2,208 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. 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 Condensed Consolidated Statements of Net 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 Condensed Consolidated Statements of Net 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 engine system campaign charge, excluding supplier recoveries, was $410 million . At June 30, 2019 , the remaining accrual balance was $309 million .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. 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. On April 29, 2019, we announced that we were conducting a formal internal review of our emissions certification process and compliance with emissions standards for our pick-up truck applications, following conversations with the EPA and CARB regarding certification of our engines in model year 2019 RAM 2500 and 3500 trucks. This review is being conducted with external advisors to ensure the certification and compliance processes for all of our pick-up truck applications are consistent with our internal policies, engineering standards and applicable laws. In addition, we announced that we voluntarily disclosed our formal internal review to our regulators and other agencies and were working cooperatively to ensure a complete and thorough review. During conversations with the EPA and CARB about the effectiveness of our pick-up truck applications, the agencies raised concerns that certain aspects of our emissions systems may reduce the effectiveness of our emissions control systems and did not fully comply with their requirements for certification. As a result, our internal review focuses, in part, on the agencies’ concerns. We are working closely with the agencies to enhance our emission systems to improve the effectiveness of all of our pick-up truck applications and to fully address the agencies’ requirements. Due to the preliminary nature of our formal review, our collaboration with our regulators to address their questions and concerns and the presence of many unknown facts and circumstances, we cannot predict the outcome of this review and process, and we cannot provide assurance that the matter will not have a materially adverse impact on our results of operations and cash flows. 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 June 30, 2019, 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 June 30, 2019, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $57 million . Most of these arrangements enable us to secure supplies of 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 June 30, 2019, the total commitments under these contracts were $64 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 $117 million at June 30, 2019 . 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. Purchase Agreement In June 2019, we entered into a definitive agreement to acquire, through a wholly-owned subsidiary, all of the issued and outstanding shares of fuel cell systems provider Hydrogenics Corporation, other than shares already owned by The Hydrogen Company, representing an enterprise value of approximately $290 million , subject to customary closing conditions and shareholder approvals. The Hydrogen Company, a wholly-owned subsidiary of L’Air Liquide, S.A., and Hydrogenics’ current largest equity shareholder, will maintain a non-controlling ownership interest in Hydrogenics. If Hydrogenics' shareholder approval is obtained, the transaction is expected to close in the third quarter of 2019.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 13. ACCUMULATED OTHER COMPREHENSIVE LOSS Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended: Three months ended In millions Change in Foreign Unrealized gain Unrealized gain Total Noncontrolling Total Balance at March 31, 2019 $ (682 ) $ (1,057 ) $ (1 ) $ 1 $ (1,739 ) Other comprehensive income before reclassifications Before tax amount 1 (97 ) 1 (11 ) (106 ) $ — $ (106 ) Tax benefit (expense) — (2 ) — 4 2 — 2 After tax amount 1 (99 ) 1 (7 ) (104 ) — (104 ) Amounts reclassified from accumulated other comprehensive loss (1) 6 — — (3 ) 3 — 3 Net current period other comprehensive income (loss) 7 (99 ) 1 (10 ) (101 ) $ — $ (101 ) Balance at June 30, 2019 $ (675 ) $ (1,156 ) $ — $ (9 ) $ (1,840 ) Balance at April 1, 2018 $ (681 ) $ (720 ) $ — $ 4 $ (1,397 ) Other comprehensive income before reclassifications Before tax amount — (328 ) — 4 (324 ) $ (17 ) $ (341 ) Tax benefit (expense) — 45 — (2 ) 43 — 43 After tax amount — (283 ) — 2 (281 ) (17 ) (298 ) Amounts reclassified from accumulated other comprehensive loss (1) 13 — — (2 ) 11 1 12 Net current period other comprehensive income (loss) 13 (283 ) — — (270 ) $ (16 ) $ (286 ) Balance at July 1, 2018 $ (668 ) $ (1,003 ) $ — $ 4 $ (1,667 ) ____________________________________ (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. Following are the changes in accumulated other comprehensive income (loss) by component for the six months ended : Six months ended In millions Change in Foreign Unrealized gain (loss) on marketable securities Unrealized gain Total Noncontrolling Total Balance at December 31, 2018 $ (671 ) $ (1,138 ) $ — $ 2 $ (1,807 ) Other comprehensive income before reclassifications Before tax amount (22 ) (17 ) — (8 ) (47 ) $ 3 $ (44 ) Tax benefit (expense) 5 (1 ) — 3 7 — 7 After tax amount (17 ) (18 ) — (5 ) (40 ) 3 (37 ) Amounts reclassified from accumulated other comprehensive loss (1) 13 — — (6 ) 7 — 7 Net current period other comprehensive income (loss) (4 ) (18 ) — (11 ) (33 ) $ 3 $ (30 ) Balance at June 30, 2019 $ (675 ) $ (1,156 ) $ — $ (9 ) $ (1,840 ) Balance at December 31, 2017 $ (689 ) $ (812 ) $ 1 $ (3 ) $ (1,503 ) Other comprehensive income before reclassifications Before tax amount (8 ) (203 ) — 15 (196 ) $ (24 ) $ (220 ) Tax benefit (expense) 2 12 — (6 ) 8 — 8 After tax amount (6 ) (191 ) — 9 (188 ) (24 ) (212 ) Amounts reclassified from accumulated other comprehensive loss (1) 27 — (1 ) (2 ) 24 1 25 Net current period other comprehensive income (loss) 21 (191 ) (1 ) 7 (164 ) $ (23 ) $ (187 ) Balance at July 1, 2018 $ (668 ) $ (1,003 ) $ — $ 4 $ (1,667 ) ____________________________________ (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

OPERATING SEGMENTS

OPERATING SEGMENTS	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 14. 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 smaller) 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. The Electrified Power segment 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 use 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. Segment amounts exclude certain expenses not specifically identifiable to segments. The accounting policies of our operating segments are the same as those applied in our Condensed Consolidated Financial Statements. We prepared the financial results of our operating segments on a basis that is consistent with the manner in which we internally disaggregate financial information to assist in making internal operating decisions. We 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. Summarized financial information regarding our reportable operating segments for the three months ended is shown in the table below: In millions Engine Distribution Components Power Systems Electrified Power Total Segments Intersegment Eliminations (1) Total Three months ended June 30, 2019 External sales $ 2,073 $ 2,015 $ 1,401 $ 724 $ 8 $ 6,221 $ — $ 6,221 Intersegment sales 630 13 445 479 — 1,567 (1,567 ) — Total sales 2,703 2,028 1,846 1,203 8 7,788 (1,567 ) 6,221 Research, development and engineering expenses 88 7 75 57 24 251 — 251 Equity, royalty and interest income from investees 62 12 11 11 — 96 — 96 Interest income 4 4 2 2 — 12 — 12 Segment EBITDA 416 172 297 173 (33 ) 1,025 33 1,058 Depreciation and amortization (2) 51 28 47 30 2 158 — 158 Three months ended July 1, 2018 External sales $ 2,050 $ 1,988 $ 1,402 $ 691 $ 1 $ 6,132 $ — $ 6,132 Intersegment sales 646 6 485 555 — 1,692 (1,692 ) — Total sales 2,696 1,994 1,887 1,246 1 7,824 (1,692 ) 6,132 Research, development and engineering expenses 76 5 62 60 16 219 — 219 Equity, royalty and interest income from investees 67 11 14 18 — 110 — 110 Interest income 3 3 2 2 — 10 — 10 Segment EBITDA 362 145 237 186 (21 ) 909 (12 ) 897 Depreciation and amortization (2) 47 27 47 32 1 154 — 154 ____________________________________ (1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2019 and July 1, 2018 . (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." A portion of depreciation expense is included in "Research, development and engineering expenses." Summarized financial information regarding our reportable operating segments for the six months ended is shown in the table below: In millions Engine Distribution Components Power Systems Electrified Power Total Segments Intersegment Eliminations (1) Total Six months ended June 30, 2019 External sales $ 4,057 $ 4,008 $ 2,802 $ 1,347 $ 11 $ 12,225 $ — $ 12,225 Intersegment sales 1,299 21 905 933 — 3,158 (3,158 ) — Total sales 5,356 4,029 3,707 2,280 11 15,383 (3,158 ) 12,225 Research, development and engineering expenses 166 14 150 113 45 488 — 488 Equity, royalty and interest income from investees 118 23 21 26 — 188 — 188 Interest income 8 8 4 4 — 24 — 24 Segment EBITDA 854 343 622 311 (62 ) 2,068 23 2,091 Depreciation and amortization (2) 101 57 93 59 4 314 — 314 Six months ended July 1, 2018 External sales $ 3,863 $ 3,835 $ 2,715 $ 1,286 $ 3 $ 11,702 $ — $ 11,702 Intersegment sales 1,279 12 925 1,034 — 3,250 (3,250 ) — Total sales 5,142 3,847 3,640 2,320 3 14,952 (3,250 ) 11,702 Research, development and engineering expenses 155 10 124 117 23 429 — 429 Equity, royalty and interest income from investees 134 24 30 37 — 225 — 225 Interest income 5 5 3 4 — 17 — 17 Segment EBITDA 648 268 464 328 (31 ) 1,677 (80 ) 1,597 Depreciation and amortization (2) 96 54 93 62 2 307 — 307 ____________________________________ (1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 30, 2019 and July 1, 2018 . (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million and $1 million for the six months ended June 30, 2019 and July 1, 2018 , respectively. A portion of depreciation expense is included in "Research, development and engineering expenses." A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Total EBITDA $ 1,058 $ 897 $ 2,091 $ 1,597 Less: Depreciation and amortization 158 154 314 307 Interest expense 29 28 61 52 Income before income taxes $ 871 $ 715 $ 1,716 $ 1,238

RECENTLY ADOPTED AND RECENTLY I

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	NOTE 9. LEASES Lease Accounting Pronouncement Adoption In February 2016, the Financial Accounting Standards Board (FASB) amended its standards related to the accounting for leases. Under the new standard, lessees are now required to recognize substantially all leases on the balance sheet as both a right-of-use (ROU) asset and a liability. The standard continues to have two types of leases for income statement recognition purposes: operating leases and finance leases. Operating leases 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 the old standard. Finance leases result in an accelerated expense similar to the accounting for capital leases under the old standard. The determination of a lease classification as operating or finance will occur in a manner similar to the old 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. We adopted the new standard on January 1, 2019, using a modified retrospective approach and as a result did not adjust prior periods. Adoption of the standard resulted in the recording of $450 million of operating lease right-of-use assets and operating lease liabilities, but did not have a material impact on our net income or cash flows. The cumulative effect adjustment of adopting the new standard was not material. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification and to not re-evaluate existing contracts as to whether or not they contained a lease. NOTE 15. RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Recently Adopted On January 1, 2019, we adopted the new lease standard in accordance with GAAP. See NOTE 9 , " LEASES ," for detailed information about the adoption of this standard. On January 1, 2019, we adopted the new FASB standard related to accounting for derivatives and hedging. The new standard allows 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. We adopted the new standard on a modified retrospective basis for existing cash flow hedges and prospectively for disclosures. The amendments did not have a material effect on our Condensed Consolidated Financial Statements and no transition adjustment was required upon adoption. The adoption of this standard did not materially change our policies for existing hedges. Accounting Pronouncements Issued But Not Yet Effective 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. 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.

LEASES SUMMARY OF SIGNIFICANT_2

LEASES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES LEASES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Lessee, Leases - Policy	We determine if an arrangement contains a lease in whole or in part at the inception of the contract. ROU assets represent our right to use an underlying asset for the lease term while lease liabilities represent our obligation to make lease payments arising from the lease. All leases greater than 12 months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. As most of our leases do not provide the information required to determine the implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. This rate is determined considering factors such as the lease term, our credit standing and the economic environment of the location of the lease. We use the implicit rate when readily determinable. Our lease terms include all non-cancelable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that we will exercise that option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of an asset or a liability. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases are generally front-loaded as the finance lease ROU asset is depreciated on a straight-line basis, but interest expense on the liability is recognized utilizing the interest method that results in more expense during the early years of the lease. We have lease agreements with lease and non-lease components, primarily related to real estate, vehicle and Information Technology (IT) leases. For vehicle and real estate leases, we account for the lease and non-lease components as a single lease component. For IT leases, we allocate the payment between the lease and non-lease components based on the relative value of each component.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share were as follows: Three months ended Six months ended June 30, July 1, June 30, July 1, Options excluded 234,947 909,394 509,261 458,130

REVENUE RECOGNITION LONGTERM CO

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability	The following is a summary of our unbilled and deferred revenue and related activity: In millions June 30, December 31, Unbilled revenue $ 65 $ 64 Deferred revenue, primarily extended warranty 1,231 1,156

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	6 Months Ended
	Jun. 30, 2019
Disaggregation of Revenue [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. Three months ended Six months ended In millions June 30, July 1, June 30, July 1, United States $ 3,611 $ 3,384 $ 7,047 $ 6,422 China 644 644 1,217 1,194 India 234 247 458 482 Other international 1,732 1,857 3,503 3,604 Total net sales $ 6,221 $ 6,132 $ 12,225 $ 11,702
Engine
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Market	Engine segment external sales by market were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Heavy-duty truck $ 754 $ 730 $ 1,477 $ 1,344 Medium-duty truck and bus 630 714 1,240 1,341 Light-duty automotive 435 330 765 653 Total on-highway 1,819 1,774 3,482 3,338 Off-highway 254 276 575 525 Total sales $ 2,073 $ 2,050 $ 4,057 $ 3,863
Distribution
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	Distribution segment external sales by region were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, North America $ 1,374 $ 1,349 $ 2,766 $ 2,623 Asia Pacific 223 211 443 398 Europe 122 143 245 274 China 101 84 182 161 Africa and Middle East 55 62 110 123 India 49 49 96 93 Latin America 46 45 86 83 Russia 45 45 80 80 Total sales $ 2,015 $ 1,988 $ 4,008 $ 3,835
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Parts $ 827 $ 815 $ 1,668 $ 1,618 Power generation 425 345 826 670 Engines 392 460 781 828 Service 371 368 733 719 Total sales $ 2,015 $ 1,988 $ 4,008 $ 3,835
Components
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Components segment external sales by business were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Emission solutions $ 735 $ 735 $ 1,484 $ 1,419 Filtration 263 257 522 514 Turbo technologies 181 201 371 398 Automated transmissions 156 141 305 258 Electronics and fuel systems 66 68 120 126 Total sales $ 1,401 $ 1,402 $ 2,802 $ 2,715
Power Systems
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Power Systems segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Power generation $ 380 $ 390 $ 688 $ 700 Industrial 246 208 477 409 Generator technologies 98 93 182 177 Total sales $ 724 $ 691 $ 1,347 $ 1,286

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2019
Retirement Benefits [Abstract]
Schedule Benefit Plans Disclosures Cash Contributions	Contributions to these plans were as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Defined benefit pension plans Voluntary contribution $ 36 $ 4 $ 62 $ 7 Mandatory contribution 8 5 15 11 Defined benefit pension contributions $ 44 $ 9 $ 77 $ 18 Other postretirement benefit plans Benefit payments (rebates), net $ 1 $ (2 ) $ 15 $ 5 Defined contribution pension plans $ 18 $ 21 $ 57 $ 61
Components of net periodic pension and other postretirement benefit cost	The components of net periodic pension and other postretirement benefit costs under our plans were as follows: Pension U.S. Plans U.K. Plans Other Postretirement Benefits Three months ended In millions June 30, July 1, June 30, July 1, June 30, July 1, Service cost $ 29 $ 30 $ 6 $ 7 $ — $ — Interest cost 27 24 11 10 3 3 Expected return on plan assets (48 ) (49 ) (18 ) (18 ) — — Amortization of prior service cost 1 — 1 — — — Recognized net actuarial loss 4 9 3 8 — — Net periodic benefit cost $ 13 $ 14 $ 3 $ 7 $ 3 $ 3 Pension U.S. Plans U.K. Plans Other Postretirement Benefits Six months ended In millions June 30, July 1, June 30, July 1, June 30, July 1, Service cost $ 58 $ 60 $ 13 $ 15 $ — $ — Interest cost 54 49 22 21 5 5 Expected return on plan assets (95 ) (98 ) (36 ) (36 ) — — Amortization of prior service cost 1 — 1 — — — Recognized net actuarial loss 8 17 6 15 — — Net periodic benefit cost $ 26 $ 28 $ 6 $ 15 $ 5 $ 5

EQUITY, ROYALTY AND INTEREST _2

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Tables)	6 Months Ended
	Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity, royalty and interest income from investees	Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 20 $ 24 $ 41 $ 45 Dongfeng Cummins Engine Company, Ltd. 16 17 30 34 Chongqing Cummins Engine Company, Ltd. 10 15 22 32 All other manufacturers 28 34 55 70 Distribution entities Komatsu Cummins Chile, Ltda. 7 6 13 13 All other distributors — — (1 ) — Cummins share of net income 81 96 160 194 Royalty and interest income 15 14 28 31 Equity, royalty and interest income from investees $ 96 $ 110 $ 188 $ 225

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Summary of marketable securities	A summary of marketable securities, all of which were classified as current, was as follows: June 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 172 $ — $ 172 $ 101 $ — $ 101 Debt mutual funds 140 2 142 103 1 104 Equity mutual funds 17 3 20 16 — 16 Debt securities 1 — 1 1 — 1 Total marketable securities $ 330 $ 5 $ 335 $ 221 $ 1 $ 222 ____________________________________ (1) Unrealized gains and losses for debt securities are recorded in other comprehensive income while unrealized gains and losses for equity securities are recorded in "Other income, net" in our Condensed Consolidated Statements of Net Income .
Schedule of proceeds from sales and maturities	The proceeds from sales and maturities of marketable securities were as follows: Six months ended In millions June 30, July 1, Proceeds from sales of marketable securities $ 97 $ 81 Proceeds from maturities of marketable securities 56 35 Investments in marketable securities - liquidations $ 153 $ 116

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories are stated at the lower of cost or market. Inventories included the following: In millions June 30, December 31, Finished products $ 2,431 $ 2,405 Work-in-process and raw materials 1,591 1,487 Inventories at FIFO cost 4,022 3,892 Excess of FIFO over LIFO (126 ) (133 ) Total inventories $ 3,896 $ 3,759

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	6 Months Ended
	Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract]
Accrued Expenses	Other accrued expenses included the following: In millions June 30, December 31, 2018 Marketing accruals $ 205 $ 199 Other taxes payable 186 196 Current portion of operating lease liabilities 125 — Income taxes payable 75 97 Other 329 360 Other accrued expenses $ 920 $ 852
Other Noncurrent Liabilities	Other liabilities included the following: In millions June 30, December 31, Operating lease liabilities $ 321 $ — Income taxes payable 293 293 Deferred income taxes 278 263 Accrued compensation 161 173 Other long-term liabilities 181 163 Other liabilities $ 1,234 $ 892

LEASES FOOTNOTE DISCLOSURE (Tab

LEASES FOOTNOTE DISCLOSURE (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Lease, Cost	The components of our lease expense were as follows: Three months ended Six months ended In millions June 30, June 30, Operating lease cost $ 54 $ 104 Finance lease cost Amortization of right-of-use asset 4 9 Interest expense 3 6 Short-term lease cost 1 2 Variable lease cost 1 2 Total lease cost $ 63 $ 123
Schedule Of Supplemental Balance Sheet Information Related To Leases Table	Three months ended Six months ended In millions June 30, June 30, Operating lease cost $ 54 $ 104 Finance lease cost Amortization of right-of-use asset 4 9 Interest expense 3 6 Short-term lease cost 1 2 Variable lease cost 1 2 Total lease cost $ 63 $ 123 Supplemental balance sheet information related to leases: In millions June 30, 2019 Balance Sheet Location Assets Operating lease assets $ 434 Other assets Finance lease assets (1) 128 Property, plant and equipment, net Total lease assets $ 562 Liabilities Current Operating $ 125 Other accrued expenses Finance 12 Current maturities of long-term debt Long-term Operating 321 Other liabilities Finance 113 Long-term debt Total lease liabilities $ 571 ____________________________________ (1) Finance lease assets are recorded net of accumulated amortization of $61 million at June 30, 2019
Schedule Of Supplemental Cash Flow Information Related To Leases Table	Supplemental cash flow and other information related to leases: Three months ended Six months ended In millions June 30, June 30, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 41 $ 77 Operating cash flows from finance leases 3 5 Financing cash flows from finance leases 3 7 Right-of-use assets obtained in exchange for lease obligations: Operating leases 60 78 Finance leases 5 6
Schedule Of Supplemental Other Information Related To Leases Table	Additional information related to leases: June 30, Weighted-average remaining lease term (in years) Operating leases 5.2 Finance leases 14.2 Weighted-average discount rate Operating leases 3.4 % Finance leases 4.2 %
Lessee, Operating Lease, Liability, Maturity	Following is a summary of the future minimum lease payments due to finance and operating leases with terms of more than one year at June 30, 2019 , together with the net present value of the minimum payments due to finance leases: In millions Finance Leases Operating Leases 2019 $ 10 $ 73 2020 19 121 2021 16 93 2022 15 69 2023 14 45 After 2023 144 96 Total minimum lease payments $ 218 $ 497 Interest (93 ) (51 ) Present value of net minimum lease payments $ 125 $ 446
Schedule of Future Minimum Rental Payments for Operating Leases Prior to Adoption of New Standard[Table Text Block]	Following is a summary of the future minimum lease payments due to 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 to capital leases under the previous lease standard: 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

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Short-term Debt	Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions June 30, December 31, Loans payable (1) $ 119 $ 54 Commercial paper (2) 434 780 ____________________________________ (1) Loans payable consist primarily of notes payable to various domestic and international financial institutions and it is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate. (2) The weighted-average interest rate, inclusive of all brokerage fees, was 2.56 percent and 2.59 percent at June 30, 2019 and December 31, 2018 , respectively.
Summary of long-term debt	A summary of long-term debt was as follows: In millions Interest Rate June 30, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2043 4.875% 500 500 Debentures, due 2098 (1) 5.65% 165 165 Other debt 83 64 Unamortized discount (51 ) (52 ) Fair value adjustments due to hedge on indebtedness 40 25 Finance leases 125 132 Total long-term debt 1,670 1,642 Less: Current maturities of long-term debt 46 45 Long-term debt $ 1,624 $ 1,597 ____________________________________ (1) The effective interest rate on this debt is 7.48% .
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 $ 37 $ 29 $ 43 $ 8 $ 507
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: In millions June 30, December 31, Fair value of total debt (1) $ 2,535 $ 2,679 Carrying values of total debt 2,223 2,476 _________________________________________________ (1) The fair value of debt is derived from Level 2 inputs.

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2019
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: Six months ended In millions June 30, July 1, Balance, beginning of year $ 2,208 $ 1,687 Provision for base warranties issued 259 222 Deferred revenue on extended warranty contracts sold 171 139 Provision for product campaigns issued 134 403 Payments made during period (308 ) (212 ) Amortization of deferred revenue on extended warranty contracts (117 ) (118 ) Changes in estimates for pre-existing product warranties (8 ) 10 Foreign currency translation and other (1 ) (1 ) Balance, end of period $ 2,338 $ 2,130
Warranty related deferred revenue and the long-term portion of the warranty liability	Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions June 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 224 $ 227 Current portion of deferred revenue Long-term portion 642 587 Deferred revenue Total $ 866 $ 814 Product warranty Current portion $ 809 $ 654 Current portion of accrued product warranty Long-term portion 663 740 Accrued product warranty Total $ 1,472 $ 1,394 Total warranty accrual $ 2,338 $ 2,208

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Changes in accumulated other comprehensive income (loss) by component	Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended: Three months ended In millions Change in Foreign Unrealized gain Unrealized gain Total Noncontrolling Total Balance at March 31, 2019 $ (682 ) $ (1,057 ) $ (1 ) $ 1 $ (1,739 ) Other comprehensive income before reclassifications Before tax amount 1 (97 ) 1 (11 ) (106 ) $ — $ (106 ) Tax benefit (expense) — (2 ) — 4 2 — 2 After tax amount 1 (99 ) 1 (7 ) (104 ) — (104 ) Amounts reclassified from accumulated other comprehensive loss (1) 6 — — (3 ) 3 — 3 Net current period other comprehensive income (loss) 7 (99 ) 1 (10 ) (101 ) $ — $ (101 ) Balance at June 30, 2019 $ (675 ) $ (1,156 ) $ — $ (9 ) $ (1,840 ) Balance at April 1, 2018 $ (681 ) $ (720 ) $ — $ 4 $ (1,397 ) Other comprehensive income before reclassifications Before tax amount — (328 ) — 4 (324 ) $ (17 ) $ (341 ) Tax benefit (expense) — 45 — (2 ) 43 — 43 After tax amount — (283 ) — 2 (281 ) (17 ) (298 ) Amounts reclassified from accumulated other comprehensive loss (1) 13 — — (2 ) 11 1 12 Net current period other comprehensive income (loss) 13 (283 ) — — (270 ) $ (16 ) $ (286 ) Balance at July 1, 2018 $ (668 ) $ (1,003 ) $ — $ 4 $ (1,667 ) ____________________________________ (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. Following are the changes in accumulated other comprehensive income (loss) by component for the six months ended : Six months ended In millions Change in Foreign Unrealized gain (loss) on marketable securities Unrealized gain Total Noncontrolling Total Balance at December 31, 2018 $ (671 ) $ (1,138 ) $ — $ 2 $ (1,807 ) Other comprehensive income before reclassifications Before tax amount (22 ) (17 ) — (8 ) (47 ) $ 3 $ (44 ) Tax benefit (expense) 5 (1 ) — 3 7 — 7 After tax amount (17 ) (18 ) — (5 ) (40 ) 3 (37 ) Amounts reclassified from accumulated other comprehensive loss (1) 13 — — (6 ) 7 — 7 Net current period other comprehensive income (loss) (4 ) (18 ) — (11 ) (33 ) $ 3 $ (30 ) Balance at June 30, 2019 $ (675 ) $ (1,156 ) $ — $ (9 ) $ (1,840 ) Balance at December 31, 2017 $ (689 ) $ (812 ) $ 1 $ (3 ) $ (1,503 ) Other comprehensive income before reclassifications Before tax amount (8 ) (203 ) — 15 (196 ) $ (24 ) $ (220 ) Tax benefit (expense) 2 12 — (6 ) 8 — 8 After tax amount (6 ) (191 ) — 9 (188 ) (24 ) (212 ) Amounts reclassified from accumulated other comprehensive loss (1) 27 — (1 ) (2 ) 24 1 25 Net current period other comprehensive income (loss) 21 (191 ) (1 ) 7 (164 ) $ (23 ) $ (187 ) Balance at July 1, 2018 $ (668 ) $ (1,003 ) $ — $ 4 $ (1,667 ) ____________________________________ (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Financial information regarding reportable operating segments	Summarized financial information regarding our reportable operating segments for the three months ended is shown in the table below: In millions Engine Distribution Components Power Systems Electrified Power Total Segments Intersegment Eliminations (1) Total Three months ended June 30, 2019 External sales $ 2,073 $ 2,015 $ 1,401 $ 724 $ 8 $ 6,221 $ — $ 6,221 Intersegment sales 630 13 445 479 — 1,567 (1,567 ) — Total sales 2,703 2,028 1,846 1,203 8 7,788 (1,567 ) 6,221 Research, development and engineering expenses 88 7 75 57 24 251 — 251 Equity, royalty and interest income from investees 62 12 11 11 — 96 — 96 Interest income 4 4 2 2 — 12 — 12 Segment EBITDA 416 172 297 173 (33 ) 1,025 33 1,058 Depreciation and amortization (2) 51 28 47 30 2 158 — 158 Three months ended July 1, 2018 External sales $ 2,050 $ 1,988 $ 1,402 $ 691 $ 1 $ 6,132 $ — $ 6,132 Intersegment sales 646 6 485 555 — 1,692 (1,692 ) — Total sales 2,696 1,994 1,887 1,246 1 7,824 (1,692 ) 6,132 Research, development and engineering expenses 76 5 62 60 16 219 — 219 Equity, royalty and interest income from investees 67 11 14 18 — 110 — 110 Interest income 3 3 2 2 — 10 — 10 Segment EBITDA 362 145 237 186 (21 ) 909 (12 ) 897 Depreciation and amortization (2) 47 27 47 32 1 154 — 154 ____________________________________ (1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2019 and July 1, 2018 . (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." A portion of depreciation expense is included in "Research, development and engineering expenses." Summarized financial information regarding our reportable operating segments for the six months ended is shown in the table below: In millions Engine Distribution Components Power Systems Electrified Power Total Segments Intersegment Eliminations (1) Total Six months ended June 30, 2019 External sales $ 4,057 $ 4,008 $ 2,802 $ 1,347 $ 11 $ 12,225 $ — $ 12,225 Intersegment sales 1,299 21 905 933 — 3,158 (3,158 ) — Total sales 5,356 4,029 3,707 2,280 11 15,383 (3,158 ) 12,225 Research, development and engineering expenses 166 14 150 113 45 488 — 488 Equity, royalty and interest income from investees 118 23 21 26 — 188 — 188 Interest income 8 8 4 4 — 24 — 24 Segment EBITDA 854 343 622 311 (62 ) 2,068 23 2,091 Depreciation and amortization (2) 101 57 93 59 4 314 — 314 Six months ended July 1, 2018 External sales $ 3,863 $ 3,835 $ 2,715 $ 1,286 $ 3 $ 11,702 $ — $ 11,702 Intersegment sales 1,279 12 925 1,034 — 3,250 (3,250 ) — Total sales 5,142 3,847 3,640 2,320 3 14,952 (3,250 ) 11,702 Research, development and engineering expenses 155 10 124 117 23 429 — 429 Equity, royalty and interest income from investees 134 24 30 37 — 225 — 225 Interest income 5 5 3 4 — 17 — 17 Segment EBITDA 648 268 464 328 (31 ) 1,677 (80 ) 1,597 Depreciation and amortization (2) 96 54 93 62 2 307 — 307 ____________________________________ (1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 30, 2019 and July 1, 2018 . (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million and $1 million for the six months ended June 30, 2019 and July 1, 2018 , respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Six months ended In millions June 30, July 1, June 30, July 1, Total EBITDA $ 1,058 $ 897 $ 2,091 $ 1,597 Less: Depreciation and amortization 158 154 314 307 Interest expense 29 28 61 52 Income before income taxes $ 871 $ 715 $ 1,716 $ 1,238

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details)	6 Months Ended
	Jun. 30, 2019countrylocation
Nature of Operations
Company Owned and Independent Distributor Locations Number	600
Dealer Locations Number	7,600
Countries and Territories Number | country	190

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Options excluded (in shares)	234,947	909,394	509,261	458,130

REVENUE RECOGNITION LONGTERM _2

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 703		$ 703
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled revenue	65		65		$ 64
Deferred revenue, primarily extended warranty	1,231		1,231		$ 1,156
Contract with Customer, Liability, Revenue Recognized	94	$ 78	203	$ 206
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 147		$ 147
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months		12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 556		$ 556
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years		10 years

REVENUE RECOGNITION DISAGGREG_3

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Disaggregation of Revenue [Line Items]
Net Sales	[1]	$ 6,221	$ 6,132	$ 12,225	$ 11,702
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
Net Sales		754	730	1,477	1,344
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
Net Sales		630	714	1,240	1,341
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
Net Sales		435	330	765	653
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
Net Sales		1,819	1,774	3,482	3,338
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
Net Sales		254	276	575	525
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
Net Sales		827	815	1,668	1,618
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
Net Sales		425	345	826	670
Engines (DBU product line)
Disaggregation of Revenue [Line Items]
Net Sales		392	460	781	828
Service (DBU product line)
Disaggregation of Revenue [Line Items]
Net Sales		371	368	733	719
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
Net Sales		735	735	1,484	1,419
Filtration (CBU business)
Disaggregation of Revenue [Line Items]
Net Sales		263	257	522	514
Turbo technologies (CBU business)
Disaggregation of Revenue [Line Items]
Net Sales		181	201	371	398
Automated Transmissions (CBU business)
Disaggregation of Revenue [Line Items]
Net Sales		156	141	305	258
Electronics and Fuel systems (CBU business)
Disaggregation of Revenue [Line Items]
Net Sales		66	68	120	126
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
Net Sales		380	390	688	700
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
Net Sales		246	208	477	409
Generator technologies (PSBU product line)
Disaggregation of Revenue [Line Items]
Net Sales		98	93	182	177
Engine
Disaggregation of Revenue [Line Items]
Net Sales		2,703	2,696	5,356	5,142
Distribution
Disaggregation of Revenue [Line Items]
Net Sales		2,028	1,994	4,029	3,847
Components
Disaggregation of Revenue [Line Items]
Net Sales		1,846	1,887	3,707	3,640
Power Systems
Disaggregation of Revenue [Line Items]
Net Sales		1,203	1,246	2,280	2,320
External Sales
Disaggregation of Revenue [Line Items]
Net Sales		6,221	6,132	12,225	11,702
External Sales | Engine
Disaggregation of Revenue [Line Items]
Net Sales		2,073	2,050	4,057	3,863
External Sales | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		2,015	1,988	4,008	3,835
External Sales | Components
Disaggregation of Revenue [Line Items]
Net Sales		1,401	1,402	2,802	2,715
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
Net Sales		724	691	1,347	1,286
United States
Disaggregation of Revenue [Line Items]
Net Sales		3,611	3,384	7,047	6,422
CHINA
Disaggregation of Revenue [Line Items]
Net Sales		644	644	1,217	1,194
CHINA | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		101	84	182	161
INDIA
Disaggregation of Revenue [Line Items]
Net Sales		234	247	458	482
INDIA | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		49	49	96	93
Other international
Disaggregation of Revenue [Line Items]
Net Sales		1,732	1,857	3,503	3,604
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		1,374	1,349	2,766	2,623
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		223	211	443	398
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		122	143	245	274
Africa and Middle East | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		55	62	110	123
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		46	45	86	83
RUSSIA | Distribution
Disaggregation of Revenue [Line Items]
Net Sales		$ 45	$ 45	$ 80	$ 80
[1]	Includes sales to nonconsolidated equity investees of $317 million and $602 million and $340 million and $637 million for the three and six months ended June 30, 2019 and July 1, 2018 , respectively.

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018	Jul. 01, 2019
Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 44	$ 9	$ 77	$ 18
Pension Plan | Voluntary
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	36	4	62	7
Pension Plan | Mandatory
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	8	5	15	11
Other Postretirement Benefits Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	1	(2)	15	5
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	3	3	5	5
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	0	0	0	0
Recognized net actuarial loss	0	0	0	0
Net periodic benefit cost	3	3	5	5
Defined contribution pension plan
Pension and other postretirement benefits
Defined contribution pension plans	18	21	57	61
Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year					$ 46
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year					123
Net periodic pension cost					64
Estimate | Pension Plan | Voluntary
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year					$ 91
United States | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	29	30	58	60
Interest cost	27	24	54	49
Expected return on plan assets	(48)	(49)	(95)	(98)
Amortization of prior service cost	1	0	1	0
Recognized net actuarial loss	4	9	8	17
Net periodic benefit cost	13	14	26	28
UNITED KINGDOM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	6	7	13	15
Interest cost	11	10	22	21
Expected return on plan assets	(18)	(18)	(36)	(36)
Amortization of prior service cost	1	0	1	0
Recognized net actuarial loss	3	8	6	15
Net periodic benefit cost	$ 3	$ 7	$ 6	$ 15

EQUITY, ROYALTY AND INTEREST _3

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Equity, royalty and interest income from investees
Cummins share of net income		$ 81	$ 96	$ 160	$ 194
Royalty and interest income	[1]	6,221	6,132	12,225	11,702
Equity, royalty and interest income from investees		96	110	188	225
Beijing Foton Cummins Engine Company
Equity, royalty and interest income from investees
Cummins share of net income		20	24	41	45
Dongfeng Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Cummins share of net income		16	17	30	34
Chongqing Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Cummins share of net income		10	15	22	32
All other manufacturers
Equity, royalty and interest income from investees
Cummins share of net income		28	34	55	70
Komatsu Cummins Chile, Ltda. (Distribution)
Equity, royalty and interest income from investees
Cummins share of net income		7	6	13	13
All other distributors
Equity, royalty and interest income from investees
Cummins share of net income		0	0	(1)	0
Royalty and interest income
Equity, royalty and interest income from investees
Royalty and interest income		$ 15	$ 14	$ 28	$ 31
[1]	Includes sales to nonconsolidated equity investees of $317 million and $602 million and $340 million and $637 million for the three and six months ended June 30, 2019 and July 1, 2018 , respectively.

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2019	Jul. 01, 2018	Dec. 31, 2018
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		330		221
Total Marketable Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	[1]	5		1
Total Marketable Securities, Estimated Fair Value		335		222
Proceeds from Sale of Marketable Securities		97	$ 81
Proceeds from Maturity of Marketable Securities		56	35
Proceeds from sales and maturities of marketable securities		153	$ 116
Certificates of Deposit
Schedule of Available-for-sale Securities
Available-for-sale Equity Securities, Amortized Cost Basis		172		101
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	[1]	0		0
Available-for-sale Securities, Equity Securities		172		101
Debt Mutual Funds
Schedule of Available-for-sale Securities
Available-for-sale Equity Securities, Amortized Cost Basis		140		103
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	[1]	2		1
Available-for-sale Securities, Equity Securities		142		104
Equity mutual funds
Schedule of Available-for-sale Securities
Available-for-sale Equity Securities, Amortized Cost Basis		17		16
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	[1]	3		0
Available-for-sale Securities, Equity Securities		$ 20		$ 16
Minimum | Certificates of Deposit
Schedule of Available-for-sale Securities
Maturities of Bank Debentures Description		P3M
Maximum | Certificates of Deposit
Schedule of Available-for-sale Securities
Maturities of Bank Debentures Description		P5Y
[1]	Unrealized gains and losses for debt securities are recorded in other comprehensive income while unrealized gains and losses for equity securities are recorded in "Other income, net" in our Condensed Consolidated Statements of Net Income .

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished products	$ 2,431	$ 2,405
Work-in-process and raw materials	1,591	1,487
Inventories at FIFO cost	4,022	3,892
Excess of FIFO over LIFO	(126)	(133)
Total inventories	$ 3,896	$ 3,759

SUPPLEMENTAL BALANCE SHEET DA_3

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Marketing accruals	$ 205	$ 199
Other taxes payable	186	196
Current portion of operating lease liabilities	125	0
Income taxes payable	75	97
Other Accrued Liabilities, Current	329	360
Other accrued expenses	920	852
Operating lease liabilities	321	0
Income taxes payable	293	293
Deferred income taxes	278	263
Accrued compensation	161	173
Other Accrued Liabilities, Noncurrent	181	163
Other liabilities	$ 1,234	$ 892

LEASES RECENTLY ADOPTED ACCOU_2

LEASES RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENT (Details) - USD ($) $ in Millions		Jan. 01, 2019	Jun. 30, 2019	Jul. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting standards	[1]			$ 30
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 Financial Accounting Standards Board (FASB) amended its standards related to the accounting for leases. Under the new standard, lessees are now required to recognize substantially all leases on the balance sheet as both a right-of-use (ROU) asset and a liability. The standard continues to have two types of leases for income statement recognition purposes: operating leases and finance leases. Operating leases 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 the old standard. Finance leases result in an accelerated expense similar to the accounting for capital leases under the old standard. The determination of a lease classification as operating or finance will occur in a manner similar to the old 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. We adopted the new standard on January 1, 2019, using a modified retrospective approach and as a result did not adjust prior periods. Adoption of the standard resulted in the recording of $450 million of operating lease right-of-use assets and operating lease liabilities, but did not have a material impact on our net income or cash flows. The cumulative effect adjustment of adopting the new standard was not material. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification and to not re-evaluate existing contracts as to whether or not they contained a lease.On January 1, 2019, we adopted the new lease standard in accordance with GAAP. See NOTE 9, "LEASES," for detailed information about the adoption of this standard.
Adoption of new accounting standards		$ 450
[1]	Includes $28 million related to adoption of the revenue recognition standard and $2 million related to adoption of the accounting for certain financial instruments standard. See Note 1, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted and Recently Issued Accounting Pronouncements” of the Notes to the Consolidated Financial Statements of our 2018 Form 10-K

LEASES FOOTNOTE DISCLOSURE (Det

LEASES FOOTNOTE DISCLOSURE (Details 1)	Jun. 30, 2019
Real Estate | Minimum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	2 years
Real Estate | Maximum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	30 years
Lessee, Operating Lease, Renewal Term	2 years
Equipment | Minimum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	2 years
Equipment | Maximum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	3 years

LEASES FOOTNOTE DISCLOSURE (D_2

LEASES FOOTNOTE DISCLOSURE (Details 2) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
		Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Lessee, Lease, Cost
Operating Lease, Cost		$ 54	$ 104
Finance Lease, Right-of-Use Asset, Amortization		4	9
Finance Lease, Interest Expense		3	6
Short-term Lease, Cost		1	2
Variable Lease, Cost		1	2
Lease, Cost		63	123
Lessee, Lease, Description [Line Items]
Total leased assets		562	562
Operating lease liability, Current		125	125	$ 0
Operating lease liabilities, Noncurrent		321	321	0
Total Lease Liabilities		571	571
Finance Lease, Right-of-Use Asset, Accumulated Amortization		61	61
Lessee, Lease, Supplemental Cash Flow Information
Operating cash flows from operating leases		41	77
Operating cash flows from finance leases		3	5
Financing cash flows from finance leases		3	7
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability		60	78
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability		$ 5	$ 6
Lessee, Lease, Other Information
Operating Lease, Weighted Average Remaining Lease Term		5 years 2 months 12 days	5 years 2 months 12 days
Finance Lease, Weighted Average Remaining Lease Term		14 years 2 months 12 days	14 years 2 months 12 days
Operating Lease, Weighted Average Discount Rate, Percent		3.40%	3.40%
Finance Lease, Weighted Average Discount Rate, Percent		4.20%	4.20%
Lessee, Lease, Financing
2019		$ 10	$ 10
2020		19	19
2021		16	16
2022		15	15
2023		14	14
After 2023		144	144
Total minimum lease payments		218	218
Finance Lease, Liability, Undiscounted Excess Amount		(93)	(93)
Finance Lease, Liability		125	125	132
Lessee, Lease, Operating
2019		73	73
2020		121	121
2021		93	93
2022		69	69
2023		45	45
After 2023		96	96
Total minimum lease payments		497	497
Lessee, Operating Lease, Liability, Undiscounted Excess Amount		(51)	(51)
Operating Lease, Liability		446	446
Net present value of the minmum payments due under capital leases
2019				30
2020				21
2021				16
2022				14
2023				13
After 2023				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
2019				138
2020				109
2021				81
2022				60
2023				39
After 2023				81
Total minimum lease payments				$ 508
Other assets
Lessee, Lease, Description [Line Items]
Operating lease assets		434	434
Property, plant and equipment, net
Lessee, Lease, Description [Line Items]
Finance lease assets(1)	[1]	128	128
Other accrued expenses
Lessee, Lease, Description [Line Items]
Operating lease liability, Current		125	125
Current maturities of long-term debt
Lessee, Lease, Description [Line Items]
Finance Lease, Liability, Current		12	12
Other liabilities
Lessee, Lease, Description [Line Items]
Operating lease liabilities, Noncurrent		321	321
Long-term debt
Lessee, Lease, Description [Line Items]
Finance Lease, Liability, Noncurrent		$ 113	$ 113
[1]	Finance lease assets are recorded net of accumulated amortization of $61 million at June 30, 2019 .

DEBT (Details)

DEBT (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018	Aug. 22, 2018
Short-term Debt [Line Items]
Loans payable	[1]	$ 119	$ 54
Commercial paper	[2]	434	780
Line of Credit Facility, Maximum Borrowing Capacity		3,500
Line of Credit Facility, Remaining Borrowing Capacity		3,100
Long-term debt
Other Long-term Debt		83	64
Unamortized discount		(51)	(52)
Fair value adjustment due to hedge on indebtedness		40	25
Finance Lease, Liability		125	132
Total long-term debt		1,670	1,642
Current maturities of long-term debt		46	45
Long-term debt		1,624	1,597
Principal payments
2019		37
2020		29
2021		43
2022		8
2023		507
Fair value
Fair value of total debt	[3]	2,535	2,679
Carrying value of total debt		$ 2,223	$ 2,476
Commercial Paper
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time	[2]	2.56%	2.59%
Line of Credit Facility, Maximum Borrowing Capacity		$ 3,500
Line of Credit
Short-term Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity		$ 211
Senior notes, due 2023
Long-term debt
Debt instrument interest rate (as a percent)		3.65%
Unsecured Debt		$ 500	$ 500
Debentures, due 2027
Long-term debt
Debt instrument interest rate (as a percent)		6.75%
Unsecured Debt		$ 58	58
Debentures, due 2028
Long-term debt
Debt instrument interest rate (as a percent)		7.125%
Unsecured Debt		$ 250	250
Senior notes, due 2043
Long-term debt
Debt instrument interest rate (as a percent)		4.875%
Unsecured Debt		$ 500	500
Debentures, due 2098(1)
Long-term debt
Debt instrument interest rate (as a percent)		5.65%
Unsecured Debt	[4]	$ 165	$ 165
Effective interest rate (as a percent)		7.48%
1-year revolving credit agreement
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 1,500
5-year revolving credit facility
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 2,000
[1]	Loans payable consist primarily of notes payable to various domestic and international financial institutions and it is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate.
[2]	The weighted-average interest rate, inclusive of all brokerage fees, was 2.56 percent and 2.59 percent at June 30, 2019 and December 31, 2018 , respectively.
[3]	The fair value of debt is derived from Level 2 inputs.
[4]	The effective interest rate on this debt is 7.48% .

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Footnote Disclosure - USD ($) $ in Millions	3 Months Ended			6 Months Ended		24 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Apr. 01, 2018	Jun. 30, 2019	Jul. 01, 2018	Dec. 30, 2018	Dec. 31, 2018
Product Warranties Disclosures [Abstract]
Balance, beginning of year			$ 1,687	$ 2,208	$ 1,687
Provision for base warranties issued				259	222
Deferred revenue on extended warranty contracts sold				171	139
Provision for product campaigns issued		$ 181	$ 187	134	403	$ 410
Payments made during period				(308)	(212)
Amortization of deferred revenue on extended warranty contracts				(117)	(118)
Changes in estimates for pre-existing product warranties				(8)	10
Foreign currency translation and other				(1)	(1)
Balance, end of period	$ 2,338	2,130		2,338	2,130
Supplier recoveries	3	$ 10		61	$ 13
Product Warranty Liability
Current portion of warranty related deferred revenue	505			505			$ 498
Long term portion of warranty related deferred revenue	726			726			658
Deferred Revenue Related to extended coverage, Total	866			866			814
Current portion of accrued product warranty	809			809			654
Long-term portion of accrued product warranty	663			663			740
Standard Product Warranty Accrual	1,472			1,472			1,394
Current portion of deferred revenue
Product Warranty Liability
Current portion of warranty related deferred revenue	224			224			227
Deferred revenue
Product Warranty Liability
Long term portion of warranty related deferred revenue	642			642			587
Current portion of accrued product warranty
Product Warranty Liability
Current portion of accrued product warranty	809			809			654
Accrued product warranty
Product Warranty Liability
Long-term portion of accrued product warranty	$ 663			$ 663			$ 740

PRODUCT WARRANTY LIABILITY (D_2

PRODUCT WARRANTY LIABILITY (Details 2) Engine System Campaign - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		24 Months Ended
	Jul. 01, 2018	Apr. 01, 2018	Jun. 30, 2019	Jul. 01, 2018	Dec. 30, 2018
Product Warranty Liability
Provision for product campaigns issued	$ 181	$ 187	$ 134	$ 403	$ 410
Income (Loss) from Continuing Operations, Per Diluted Share	$ 0.85	$ 0.87
Engine System Campaign Accrual, Present Value			$ 309
Components
Product Warranty Liability
Provision for product campaigns issued	$ 90	$ 94
Engine
Product Warranty Liability
Provision for product campaigns issued	$ 91	$ 93

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019USD ($)
Guarantee Obligations
Guarantor obligations, maximum potential loss	$ 52
Long-term purchase commitment, penalty exposure	57
Total commitments under commodity contracts	64
Performance Bonds and Other Performance Guarantees	117
Other commitment	$ 290
Maximum
Guarantee Obligations
Forward Contract, Term	P2Y

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions		3 Months Ended				6 Months Ended
		Jun. 30, 2019		Jul. 01, 2018		Jun. 30, 2019		Jul. 01, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period						$ (1,807)
Before tax amount		$ (106)		$ (341)		(44)		$ (220)
Tax benefit (expense)		2		43		7		8
After tax amount		(104)		(298)		(37)		(212)
Amounts reclassified from accumulated other comprehensive loss(1)		3	[1]	12	[1]	7	[2]	25	[2]
Net current period other comprehensive income (loss)		(101)		(286)		(30)		(187)
Balance at the end of the period		(1,840)				(1,840)
Change in pensions and other postretirement defined benefit plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period		(682)		(681)		(671)		(689)
Before tax amount		1		0		(22)		(8)
Tax benefit (expense)		0		0		5		2
After tax amount		1		0		(17)		(6)
Amounts reclassified from accumulated other comprehensive loss(1)		6	[1]	13	[1]	13	[2]	27	[2]
Net current period other comprehensive income (loss)		7		13		(4)		21
Balance at the end of the period		(675)		(668)		(675)		(668)
Foreign currency translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period		(1,057)		(720)		(1,138)		(812)
Before tax amount		(97)		(328)		(17)		(203)
Tax benefit (expense)		(2)		45		(1)		12
After tax amount		(99)		(283)		(18)		(191)
Amounts reclassified from accumulated other comprehensive loss(1)	[1]	0		0
Net current period other comprehensive income (loss)		(99)		(283)		(18)		(191)
Balance at the end of the period		(1,156)		(1,003)		(1,156)		(1,003)
Unrealized gain (loss) on marketable securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period		(1)		0		0		1
Before tax amount		1		0
Tax benefit (expense)		0		0		0
After tax amount		1		0		0		0
Amounts reclassified from accumulated other comprehensive loss(1)		0	[1]	0	[1]			(1)	[2]
Net current period other comprehensive income (loss)		1		0		0		(1)
Balance at the end of the period		0		0		0		0
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period		1		4		2		(3)
Before tax amount		(11)		4		(8)		15
Tax benefit (expense)		4		(2)		3		(6)
After tax amount		(7)		2		(5)		9
Amounts reclassified from accumulated other comprehensive loss(1)		(3)	[1]	(2)	[1]	(6)	[2]	(2)	[2]
Net current period other comprehensive income (loss)		(10)		0		(11)		7
Balance at the end of the period		(9)		4		(9)		4
Total attributable to Cummins Inc.
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period		(1,739)		(1,397)		(1,807)		(1,503)
Before tax amount		(106)		(324)		(47)		(196)
Tax benefit (expense)		2		43		7		8
After tax amount		(104)		(281)		(40)		(188)
Amounts reclassified from accumulated other comprehensive loss(1)		3	[1]	11	[1]	7	[2]	24	[2]
Net current period other comprehensive income (loss)		(101)		(270)		(33)		(164)
Balance at the end of the period		(1,840)		(1,667)		(1,840)		(1,667)
Noncontrolling interests
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Before tax amount		0		(17)		3		(24)
After tax amount		0		(17)		3		(24)
Amounts reclassified from accumulated other comprehensive loss(1)				1	[1]	0	[2]	1	[2]
Net current period other comprehensive income (loss)		$ 0		$ (16)		$ 3		$ (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]	Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) - USD ($) $ in Millions		3 Months Ended				6 Months Ended
		Jun. 30, 2019		Jul. 01, 2018		Jun. 30, 2019		Jul. 01, 2018
Segment reporting
Net Sales	[1]	$ 6,221		$ 6,132		$ 12,225		$ 11,702
Research, development and engineering expenses		251		219		488		429
Equity, royalty and interest income from investees		96		110		188		225
Interest income		12		10		24		17
Segment EBITDA		1,058		897		2,091		1,597
Depreciation and amortization (2)		158	[2]	154	[2]	314	[3]	307	[3]
Less: Interest expense		29		28		61		52
INCOME BEFORE INCOME TAXES		871		715		1,716		1,238
Amortization of Debt Discount (Premium)						1		1
Engine
Segment reporting
Net Sales		2,703		2,696		5,356		5,142
Research, development and engineering expenses		88		76		166		155
Equity, royalty and interest income from investees		62		67		118		134
Interest income		4		3		8		5
Segment EBITDA		416		362		854		648
Depreciation and amortization (2)		51	[2]	47	[2]	101	[3]	96	[3]
Distribution
Segment reporting
Net Sales		2,028		1,994		4,029		3,847
Research, development and engineering expenses		7		5		14		10
Equity, royalty and interest income from investees		12		11		23		24
Interest income		4		3		8		5
Segment EBITDA		172		145		343		268
Depreciation and amortization (2)		28	[2]	27	[2]	57	[3]	54	[3]
Components
Segment reporting
Net Sales		1,846		1,887		3,707		3,640
Research, development and engineering expenses		75		62		150		124
Equity, royalty and interest income from investees		11		14		21		30
Interest income		2		2		4		3
Segment EBITDA		297		237		622		464
Depreciation and amortization (2)		47	[2]	47	[2]	93	[3]	93	[3]
Power Systems
Segment reporting
Net Sales		1,203		1,246		2,280		2,320
Research, development and engineering expenses		57		60		113		117
Equity, royalty and interest income from investees		11		18		26		37
Interest income		2		2		4		4
Segment EBITDA		173		186		311		328
Depreciation and amortization (2)		30	[2]	32	[2]	59	[3]	62	[3]
Electrified Power
Segment reporting
Net Sales		8		1		11		3
Research, development and engineering expenses		24		16		45		23
Equity, royalty and interest income from investees		0		0		0		0
Interest income		0		0		0		0
Segment EBITDA		(33)		(21)		(62)		(31)
Depreciation and amortization (2)		2	[2]	1	[2]	4	[3]	2	[3]
Total Segments
Segment reporting
Net Sales		7,788		7,824		15,383		14,952
Research, development and engineering expenses		251		219		488		429
Equity, royalty and interest income from investees		96		110		188		225
Interest income		12		10		24		17
Segment EBITDA		1,025		909		2,068		1,677
Depreciation and amortization (2)		158	[2]	154	[2]	314	[3]	307	[3]
Intersegment Eliminations
Segment reporting
Net Sales		(1,567)	[4]	(1,692)	[4]	(3,158)	[5]	(3,250)	[5]
Non-segment items
Segment reporting
Segment EBITDA		33	[4]	(12)	[4]	23	[5]	(80)	[5]
External Sales
Segment reporting
Net Sales		6,221		6,132		12,225		11,702
External Sales | Engine
Segment reporting
Net Sales		2,073		2,050		4,057		3,863
External Sales | Distribution
Segment reporting
Net Sales		2,015		1,988		4,008		3,835
External Sales | Components
Segment reporting
Net Sales		1,401		1,402		2,802		2,715
External Sales | Power Systems
Segment reporting
Net Sales		724		691		1,347		1,286
External Sales | Electrified Power
Segment reporting
Net Sales		8		1		11		3
External Sales | Total Segments
Segment reporting
Net Sales		6,221		6,132		12,225		11,702
Intersegment sales | Engine
Segment reporting
Net Sales		630		646		1,299		1,279
Intersegment sales | Distribution
Segment reporting
Net Sales		13		6		21		12
Intersegment sales | Components
Segment reporting
Net Sales		445		485		905		925
Intersegment sales | Power Systems
Segment reporting
Net Sales		479		555		933		1,034
Intersegment sales | Electrified Power
Segment reporting
Net Sales		0		0		0		0
Intersegment sales | Total Segments
Segment reporting
Net Sales		1,567		1,692		3,158		3,250
Intersegment sales | Intersegment Eliminations
Segment reporting
Net Sales		$ (1,567)	[4]	$ (1,692)	[4]	$ (3,158)	[5]	$ (3,250)	[5]
[1]	Includes sales to nonconsolidated equity investees of $317 million and $602 million and $340 million and $637 million for the three and six months ended June 30, 2019 and July 1, 2018 , respectively.
[2]	Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." A portion of depreciation expense is included in "Research, development and engineering expenses."
[3]	Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as "Interest expense." The amortization of debt discount and deferred costs was $1 million and $1 million for the six months ended June 30, 2019 and July 1, 2018 , respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
[4]	Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2019 and July 1, 2018 .
[5]	Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 30, 2019 and July 1, 2018 .

RECENTLY ADOPTED AND RECENTLY_2

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details)	6 Months Ended
	Jun. 30, 2019
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 Financial Accounting Standards Board (FASB) amended its standards related to the accounting for leases. Under the new standard, lessees are now required to recognize substantially all leases on the balance sheet as both a right-of-use (ROU) asset and a liability. The standard continues to have two types of leases for income statement recognition purposes: operating leases and finance leases. Operating leases 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 the old standard. Finance leases result in an accelerated expense similar to the accounting for capital leases under the old standard. The determination of a lease classification as operating or finance will occur in a manner similar to the old 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. We adopted the new standard on January 1, 2019, using a modified retrospective approach and as a result did not adjust prior periods. Adoption of the standard resulted in the recording of $450 million of operating lease right-of-use assets and operating lease liabilities, but did not have a material impact on our net income or cash flows. The cumulative effect adjustment of adopting the new standard was not material. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification and to not re-evaluate existing contracts as to whether or not they contained a lease.On January 1, 2019, we adopted the new lease standard in accordance with GAAP. See NOTE 9, "LEASES," for detailed information about the adoption of this standard.
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	On January 1, 2019, we adopted the new FASB standard related to accounting for derivatives and hedging. The new standard allows 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. We adopted the new standard on a modified retrospective basis for existing cash flow hedges and prospectively for disclosures. The amendments did not have a material effect on our Condensed Consolidated Financial Statements and no transition adjustment was required upon adoption. The adoption of this standard did not materially change our policies for existing hedges.
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 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.

Uncategorized Items - cmi2019q2

Label	Element	Value
Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleEffectOfAdoptionQuantification	$ 28,000,000
Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleEffectOfAdoptionQuantification	$ 2,000,000