Cummins (CMI) 10-Q 27 Oct 20 2020 Q3 Quarterly report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document	9 Months Ended
	Sep. 27, 2020$ / sharesshares
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 27, 2020
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 | shares	148,006,581
Common Stock, Par or Stated Value Per Share | $ / shares	$ 2.50
Entity Central Index Key	0000026172
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
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		9 Months Ended
		Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019
Income Statement [Abstract]
NET SALES (a) (Note 3)	[1]	$ 5,118	$ 5,768	$ 13,981	$ 17,993
Cost of sales		3,769	4,274	10,448	13,326
GROSS MARGIN		1,349	1,494	3,533	4,667
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses		533	600	1,549	1,822
Research, development and engineering expenses		224	242	651	730
Equity, royalty and interest income from investees (Note 5)		98	68	342	256
Other operating expense, net		(20)	(21)	(35)	(25)
OPERATING INCOME		670	699	1,640	2,346
Interest income		4	14	15	38
Interest expense		25	26	71	87
Other income, net		37	68	119	174
INCOME BEFORE INCOME TAXES		686	755	1,703	2,471
Income tax expense (Note 6)		182	139	402	501
CONSOLIDATED NET INCOME		504	616	1,301	1,970
Less: Net income (loss) attributable to noncontrolling interests		3	(6)	13	10
Net Income (Loss) Available to Common Stockholders, Basic		$ 501	$ 622	$ 1,288	$ 1,960
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic (in dollars per share)		$ 3.39	$ 3.99	$ 8.69	$ 12.50
Diluted (in dollars per share)		$ 3.36	$ 3.97	$ 8.65	$ 12.45
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		147.9	155.9	148.3	156.8
Dilutive effect of stock compensation awards (in shares)		1	0.7	0.6	0.6
Diluted (in shares)		148.9	156.6	148.9	157.4
Sales to nonconsolidated equity investees		$ 311	$ 280	$ 906	$ 882
[1]	(a) Includes sales to nonconsolidated equity investees of $311 million and $906 million for the three and nine months ended September 27, 2020, compared with $280 million and $882 million for the comparable periods in 2019.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$ 504	$ 616	$ 1,301	$ 1,970
Other comprehensive income (loss), net of tax (Note 13)
Change in pension and other postretirement defined benefit plans	16	6	34	2
Foreign currency translation adjustments	111	(182)	(62)	(197)
Unrealized gain (loss) on derivatives	18	(29)	(63)	(40)
Total other comprehensive income (loss), net of tax	145	(205)	(91)	(235)
COMPREHENSIVE INCOME	649	411	1,210	1,735
Less: Comprehensive income (loss) attributable to noncontrolling interests	13	(11)	1	8
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 636	$ 422	$ 1,209	$ 1,727

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions		Sep. 27, 2020		Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)		$ 2.50
Common stock, shares authorized		500
Common stock, shares issued		222.5		222.4
Treasury stock, shares		74.4		71.7
Common stock held by employee benefits trust, shares		0		0.2
Current assets
Cash and cash equivalents		$ 2,967		$ 1,129
Marketable securities (Note 7)		345		341
Total cash, cash equivalents and marketable securities		3,312		1,470
Accounts and notes receivable, net
Trade and other		3,291		3,387
Nonconsolidated equity investees		337		283
Inventories (Note 8)		3,470		3,486
Prepaid expenses and other current assets		652		761
Total current assets		11,062		9,387
Long-term assets
Property, plant and equipment		8,753		8,699
Accumulated depreciation		(4,666)		(4,454)
Property, plant and equipment, net		4,087		4,245
Investments and advances related to equity method investees		1,418		1,237
Goodwill		1,288		1,286
Other intangible assets, net		990		1,003
Pension assets		1,010		1,001
Other assets		1,713		1,578
Total assets		21,568		19,737
Current liabilities
Accounts payable (principally trade)		2,597		2,534
Loans payable (Note 9)	[1]	129		100
Commercial paper (Note 9)		316	[2]	660	[3]
Accrued compensation, benefits and retirement costs		433		560
Current portion of accrued product warranty (Note 10)		646		803
Current portion of deferred revenue (Note 3)		540		533
Other accrued expenses (Note 11)		990		1,039
Current maturities of long-term debt (Note 9)		58		31
Total current liabilities		5,709		6,260
Long-term liabilities
Long-term debt (Note 9)		3,609		1,576
Pensions and other postretirement benefits		571		591
Accrued product warranty (Note 10)		635		645
Deferred revenue (Note 3)		837		821
Other liabilities (Note 11)		1,566		1,379
Total liabilities		12,927		11,272
Commitments and contingencies (Note 12)
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.4 shares issued		2,385		2,346
Retained earnings		15,118		14,416
Treasury stock, at cost, 74.4 and 71.7 shares		(7,696)		(7,225)
Common stock held by employee benefits trust, at cost, 0.0 and 0.2 shares		0		(2)
Accumulated other comprehensive loss (Note 13)		(2,107)		(2,028)
Total Cummins Inc. shareholders' equity		7,700		7,507
Noncontrolling interests		941		958
Total equity		8,641		8,465
Total liabilities and equity		$ 21,568		$ 19,737
[1]	(1) Loans payable consist primarily of notes payable to various domestic and international financial institutions. It is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate.
[2]	(2) The weighted-average interest rate, inclusive of all brokerage fees, was 0.03 percent at September 27, 2020. This includes $116 million of borrowings under the EUR program that were at a negative weighted-average interest rate of 0.27 percent and $200 million of borrowings under the U.S. program at a weighted-average rate of 0.20 percent.
[3]	(3) The weighted-average interest rate, inclusive of all brokerage fees, was 1.82 percent at December 31, 2019. All borrowings were at positive interest rates.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 27, 2020	Sep. 29, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 1,301	$ 1,970
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	499	493
Deferred income taxes	(7)	(14)
Equity in income of investees, net of dividends	(136)	(44)
Pension and OPEB expense (Note 4)	81	56
Pension contributions and OPEB payments (Note 4)	(102)	(130)
Stock-based compensation expense	22	37
Restructuring payments (Note 14)	(100)	0
Gain on corporate owned life insurance	(50)	(64)
Foreign currency remeasurement and transaction exposure	(7)	(54)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	47	(101)
Inventories	(50)	(62)
Other current assets	73	48
Accounts payable	109	(3)
Accrued expenses	(236)	(74)
Changes in other liabilities	208	168
Other, net	(72)	117
Net cash provided by operating activities	1,580	2,343
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(268)	(395)
Investments in internal use software	(33)	(50)
Investments in and advances to equity investees	(30)	(16)
Acquisitions of businesses, net of cash acquired (Note 15)	0	(237)
Investments in marketable securities—acquisitions	(422)	(367)
Investments in marketable securities—liquidations (Note 7)	408	296
Cash flows from derivatives not designated as hedges	(15)	(86)
Other, net	23	26
Net cash used in investing activities	(337)	(829)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings (Note 9)	1,999	10
Net (payments) borrowings of commercial paper	(344)	122
Payments on borrowings and finance lease obligations	(41)	(47)
Net borrowings under short-term credit agreements	6	53
Distributions to noncontrolling interests	(26)	(33)
Dividend payments on common stock	(582)	(562)
Repurchases of common stock	(550)	(806)
Other, net	102	65
Net cash provided by (used in) financing activities	564	(1,198)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	31	(59)
Net increase in cash and cash equivalents	1,838	257
Cash and cash equivalents at beginning of year	1,129	1,303
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 2,967	$ 1,560

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Treasury Stock	Common Stock Held in Trust	Accumulated Other Comprehensive Loss	Total Cummins Inc. Shareholders' Equity	Total Cummins Inc. Shareholders' EquityCumulative Effect, Period of Adoption, Adjustment	Noncontrolling Interests
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 3.591
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
CONSOLIDATED NET INCOME	1,970				1,960					1,960		10
Other comprehensive income, net of tax (Note 13)	(235)								(233)	(233)		(2)
Issuance of common stock	2			2						2
Employee benefits trust activity	28			26				2		28
Repurchases of common stock	(806)						(806)			(806)
Cash dividends on common stock	(562)				(562)					(562)
Distributions to noncontrolling interests	(33)											(33)
Stock-based awards	48			(2)			50			48
Other shareholder transactions	82			25						25		57
BALANCE AT END OF PERIOD at Sep. 29, 2019	$ 8,753		556	1,766	14,315		(6,784)	(3)	(2,040)	7,810		943
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.311
BALANCE AT BEGINNING OF PERIOD at Jun. 30, 2019	$ 9,196		556	1,751	13,897		(6,082)	(4)	(1,840)	8,278		918
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	616				622					622		(6)
Other comprehensive income, net of tax (Note 13)	(205)								(200)	(200)		(5)
Employee benefits trust activity	7			6				1		7
Repurchases of common stock	(706)						(706)			(706)
Cash dividends on common stock	(204)				(204)					(204)
Distributions to noncontrolling interests	(20)											(20)
Stock-based awards	5			1			4			5
Other shareholder transactions	64			8						8		56
BALANCE AT END OF PERIOD at Sep. 29, 2019	8,753		556	1,766	14,315		(6,784)	(3)	(2,040)	7,810		943
BALANCE AT END OF PERIOD at Dec. 31, 2019	$ 8,465	$ (4)	556	1,790	14,416	$ (4)	(7,225)	(2)	(2,028)	7,507	$ (4)	958
Increase (Decrease) in Shareholders' Equity
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 3.933
CONSOLIDATED NET INCOME	$ 1,301				1,288					1,288		13
Other comprehensive income, net of tax (Note 13)	(91)								(79)	(79)		(12)
Issuance of common stock	10			10						10
Employee benefits trust activity	29			27				2		29
Repurchases of common stock	(550)						(550)			(550)
Cash dividends on common stock	(582)				(582)					(582)
Distributions to noncontrolling interests	(26)											(26)
Stock-based awards	78			(1)			79			78
Other shareholder transactions	11			3						3		8
BALANCE AT END OF PERIOD at Sep. 27, 2020	$ 8,641		556	1,829	15,118		(7,696)	0	(2,107)	7,700		941
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.311
BALANCE AT BEGINNING OF PERIOD at Jun. 28, 2020	$ 8,130		556	1,797	14,811		(7,729)	(1)	(2,242)	7,192		938
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	504				501					501		3
Other comprehensive income, net of tax (Note 13)	145								135	135		10
Employee benefits trust activity	6			5				1		6
Cash dividends on common stock	(194)				(194)					(194)
Distributions to noncontrolling interests	(13)											(13)
Stock-based awards	46			13			33			46
Other shareholder transactions	17			14						14		3
BALANCE AT END OF PERIOD at Sep. 27, 2020	$ 8,641		$ 556	$ 1,829	$ 15,118		$ (7,696)	$ 0	$ (2,107)	$ 7,700		$ 941

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Sep. 27, 2020
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, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen generation and fuel cell products. 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, joint venture and independent distributor locations and over 7,600 Cummins certified dealer locations in more than 190 countries and territories.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 27, 2020
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 were 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 were 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, 2019 . Our interim period financial results for the three and nine 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 were reclassified to conform to the current year presentation. COVID-19 The outbreak of the coronavirus disease of 2019 (COVID-19) spread throughout the world and became a global pandemic with the resultant economic impacts evolving into a worldwide recession. The pandemic triggered a significant downturn in our markets globally, which continued to unfavorably impact market conditions through the end of the third quarter and these challenging market conditions could continue for an extended period of time. In an effort to contain the spread of COVID-19, maintain the well-being of our employees and stakeholders, match the reduced demand from our customers and in accordance with governmental requirements, we closed or partially shut down certain office, manufacturing, distribution and technical center facilities around the world in March 2020. Although most of our manufacturing, distribution and technical center facilities re-opened early in the second quarter of 2020, many operated at reduced capacities and most of our global office buildings remained closed through the third quarter. 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. The global market downturn, closures and limitations on movement related to COVID-19 are expected to be temporary, however, the duration of the production and supply chain disruptions, and related financial impacts, cannot be estimated at this time. This uncertainty could have an impact on certain estimates used in the preparation of our third quarter financial results. Reporting Period Our reporting period usually ends on the Sunday closest to the last day of the quarterly calendar period. The third quarters of 2020 and 2019 ended on September 27 and September 29, 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 exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows: Three months ended Nine months ended September 27, September 29, September 27, September 29, Options excluded 2,405 874,604 858,651 631,042

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	9 Months Ended
	Sep. 27, 2020
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 had not been satisfied as of September 27, 2020, was $900 million. We expect to recognize the related revenue of $172 million over the next 12 months and $728 million over periods up to 10 years. See Note 10, "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 costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: In millions September 27, December 31, Unbilled revenue $ 79 $ 68 Deferred revenue, primarily extended warranty 1,377 1,354 We recognized revenue of $84 million and $290 million for the three and nine months ended September 27, 2020, compared with $79 million and $282 million for the comparable periods in 2019, 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 nine months ended September 27, 2020 or September 29, 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 Nine months ended In millions September 27, September 29, September 27, September 29, United States $ 2,805 $ 3,414 $ 7,522 $ 10,461 China 705 481 2,037 1,698 India 166 185 406 643 Other international 1,442 1,688 4,016 5,191 Total net sales $ 5,118 $ 5,768 $ 13,981 $ 17,993 Segment Revenue Engine segment external sales by market were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Heavy-duty truck $ 486 $ 635 $ 1,226 $ 2,112 Medium-duty truck and bus 389 525 1,177 1,765 Light-duty automotive 502 451 975 1,216 Total on-highway 1,377 1,611 3,378 5,093 Off-highway 240 211 755 786 Total sales $ 1,617 $ 1,822 $ 4,133 $ 5,879 Distribution segment external sales by region were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, North America $ 1,126 $ 1,373 $ 3,409 $ 4,139 Asia Pacific 195 224 577 667 Europe 153 135 424 380 China 74 82 242 264 Africa and Middle East 47 60 136 170 India 42 46 101 142 Russia 41 33 126 113 Latin America 37 48 108 134 Total sales $ 1,715 $ 2,001 $ 5,123 $ 6,009 Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Parts $ 719 $ 796 $ 2,155 $ 2,464 Power generation 415 466 1,166 1,292 Service 303 376 926 1,109 Engines 278 363 876 1,144 Total sales $ 1,715 $ 2,001 $ 5,123 $ 6,009 Components segment external sales by business were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Emission solutions $ 612 $ 660 $ 1,576 $ 2,144 Filtration 260 249 715 771 Turbo technologies 163 151 463 522 Automated transmissions 90 146 215 451 Electronics and fuel systems 76 47 223 167 Total sales $ 1,201 $ 1,253 $ 3,192 $ 4,055 Power Systems segment external sales by product line were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Power generation $ 334 $ 372 $ 827 $ 1,060 Industrial 167 227 477 704 Generator technologies 66 84 191 266 Total sales $ 567 $ 683 $ 1,495 $ 2,030

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES	9 Months Ended
	Sep. 27, 2020
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 had not been satisfied as of September 27, 2020, was $900 million. We expect to recognize the related revenue of $172 million over the next 12 months and $728 million over periods up to 10 years. See Note 10, "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 costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: In millions September 27, December 31, Unbilled revenue $ 79 $ 68 Deferred revenue, primarily extended warranty 1,377 1,354 We recognized revenue of $84 million and $290 million for the three and nine months ended September 27, 2020, compared with $79 million and $282 million for the comparable periods in 2019, 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 nine months ended September 27, 2020 or September 29, 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 Nine months ended In millions September 27, September 29, September 27, September 29, United States $ 2,805 $ 3,414 $ 7,522 $ 10,461 China 705 481 2,037 1,698 India 166 185 406 643 Other international 1,442 1,688 4,016 5,191 Total net sales $ 5,118 $ 5,768 $ 13,981 $ 17,993 Segment Revenue Engine segment external sales by market were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Heavy-duty truck $ 486 $ 635 $ 1,226 $ 2,112 Medium-duty truck and bus 389 525 1,177 1,765 Light-duty automotive 502 451 975 1,216 Total on-highway 1,377 1,611 3,378 5,093 Off-highway 240 211 755 786 Total sales $ 1,617 $ 1,822 $ 4,133 $ 5,879 Distribution segment external sales by region were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, North America $ 1,126 $ 1,373 $ 3,409 $ 4,139 Asia Pacific 195 224 577 667 Europe 153 135 424 380 China 74 82 242 264 Africa and Middle East 47 60 136 170 India 42 46 101 142 Russia 41 33 126 113 Latin America 37 48 108 134 Total sales $ 1,715 $ 2,001 $ 5,123 $ 6,009 Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Parts $ 719 $ 796 $ 2,155 $ 2,464 Power generation 415 466 1,166 1,292 Service 303 376 926 1,109 Engines 278 363 876 1,144 Total sales $ 1,715 $ 2,001 $ 5,123 $ 6,009 Components segment external sales by business were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Emission solutions $ 612 $ 660 $ 1,576 $ 2,144 Filtration 260 249 715 771 Turbo technologies 163 151 463 522 Automated transmissions 90 146 215 451 Electronics and fuel systems 76 47 223 167 Total sales $ 1,201 $ 1,253 $ 3,192 $ 4,055 Power Systems segment external sales by product line were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Power generation $ 334 $ 372 $ 827 $ 1,060 Industrial 167 227 477 704 Generator technologies 66 84 191 266 Total sales $ 567 $ 683 $ 1,495 $ 2,030

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	9 Months Ended
	Sep. 27, 2020
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 (OPEB) plans. Contributions to these plans were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Defined benefit pension contributions $ 11 $ 33 $ 77 $ 110 OPEB payments, net 9 5 25 20 Defined contribution pension plans 18 23 70 80 During the remainder of 2020, we anticipate making $7 million in additional defined benefit pension contributions in the U.K. and $7 million in contributions to our U.S. non-qualified benefit plans. 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 2020 annual net periodic pension cost to approximate $102 million. The components of net periodic pension and OPEB costs under our plans were as follows: Pension U.S. Plans U.K. Plans OPEB Three months ended In millions September 27, September 29, September 27, September 29, September 27, September 29, Service cost $ 33 $ 29 $ 8 $ 6 $ — $ — Interest cost 24 27 8 10 2 3 Expected return on plan assets (49) (47) (19) (16) — — Amortization of prior service cost — — 1 — — — Recognized net actuarial loss 10 4 9 3 — — Net periodic benefit cost $ 18 $ 13 $ 7 $ 3 $ 2 $ 3 Pension U.S. Plans U.K. Plans OPEB Nine months ended In millions September 27, September 29, September 27, September 29, September 27, September 29, Service cost $ 100 $ 87 $ 22 $ 19 $ — $ — Interest cost 71 81 26 32 5 8 Expected return on plan assets (146) (142) (56) (52) — — Amortization of prior service cost 1 1 2 1 — — Recognized net actuarial loss 30 12 26 9 — — Net periodic benefit cost $ 56 $ 39 $ 20 $ 9 $ 5 $ 8

EQUITY, ROYALTY AND INTEREST IN

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	9 Months Ended
	Sep. 27, 2020
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 Nine months ended In millions September 27, September 29, September 27, September 29, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 30 $ 15 $ 81 $ 56 Dongfeng Cummins Engine Company, Ltd. 20 10 54 40 Chongqing Cummins Engine Company, Ltd. 7 10 27 32 All other manufacturers 22 (1) 21 100 (1)(2) 76 Distribution entities Komatsu Cummins Chile, Ltda. 6 6 23 19 All other distributors 1 1 1 — Cummins share of net income 86 63 286 223 Royalty and interest income 12 5 56 33 Equity, royalty and interest income from investees $ 98 $ 68 $ 342 $ 256 (1) Includes impairment charges of $10 million and $13 million for the three and nine months ended September 27, 2020, respectively, for a joint venture in the Power Systems segment. (2) Includes $37 million in adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 6, "INCOME TAXES" for additional information on India Tax Law Change.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 27, 2020
Income Tax Disclosure [Abstract]
Income Tax Disclosure	NOTE 6. INCOME TAXES Our effective tax rates for the three and nine months ended September 27, 2020, were 26.5 percent and 23.6 percent, respectively. The three months ended September 27, 2020, contained unfavorable discrete items of $31 million, or $0.21 per share, consisting of $17 million of changes in tax reserves, $8 million of provision to return adjustments relating to tax returns filed for 2019 and $6 million of net other discrete items. The nine months ended September 27, 2020, contained $27 million, or $0.18 per share, of unfavorable net discrete tax items, primarily due to $34 million of unfavorable changes in tax reserves and $8 million of provision to return adjustments, partially offset by $15 million of favorable tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March of 2020. The India Tax Law Change eliminated the dividend distribution tax and replaced it with a lower rate withholding tax as the burden shifted from the dividend payor to the dividend recipient for a net favorable income statement impact of $35 million. The India Tax Law Change resulted in the following adjustments to the Condensed Consolidated Statements of Net Income for the nine months ended September 27, 2020: In millions Favorable (Unfavorable) Equity, royalty and interest income from investees $ 37 Income tax expense (1) 17 Less: Net income attributable to noncontrolling interests (19) Net income statement impact $ 35 (1) The adjustment to "Income tax expense" includes $15 million of discrete items. Our effective tax rates for the three and nine months ended September 29, 2019, were 18.4 percent and 20.3 percent, respectively. The three months ended September 29, 2019, contained favorable discrete items of $23 million, or $0.14 per share, of favorable net discrete tax items, primarily due to withholding taxes and provision to return adjustments. The nine months ended September 27, 2020, contained $30 million, or $0.19 per share, of favorable net discrete tax items, primarily due to withholding taxes and provision to return adjustments.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	9 Months Ended
	Sep. 27, 2020
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 7. MARKETABLE SECURITIES A summary of marketable securities, all of which were classified as current, was as follows: September 27, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 167 $ 5 $ 172 $ 180 $ 3 $ 183 Certificates of deposit 151 — 151 133 — 133 Equity mutual funds 18 3 21 19 4 23 Bank debentures — — — 1 — 1 Debt securities 1 — 1 1 — 1 Total marketable securities $ 337 $ 8 $ 345 $ 334 $ 7 $ 341 (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 nine months ended September 27, 2020 or the year ended December 31, 2019. A description of the valuation techniques and inputs used for our Level 2 fair value measures is as follows: • Debt mutual funds — The fair value measures for the vast majority of these investments are the daily net asset values published on a regulated governmental website. Daily quoted prices are available from the issuing brokerage and are used on a test basis to corroborate this Level 2 input. • Certificates of deposit and bank debentures — These investments provide us with a contractual rate of return and generally range in maturity from three months to five years. The counterparties to these investments are reputable financial institutions with investment grade credit ratings. Since these instruments are not tradable and must be settled directly by us with the respective financial institution, our fair value measure is the financial institution's month-end statement. • Equity mutual funds — The fair value measures for these investments are the net asset values 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 measures for these securities are broker quotes received from reputable firms. These securities are infrequently traded on a national 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: Nine months ended In millions September 27, September 29, Proceeds from sales of marketable securities $ 283 $ 179 Proceeds from maturities of marketable securities 125 117 Investments in marketable securities - liquidations $ 408 $ 296

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 27, 2020
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 8. INVENTORIES Inventories are stated at the lower of cost or market. Inventories included the following: In millions September 27, December 31, Finished products $ 2,182 $ 2,214 Work-in-process and raw materials 1,416 1,395 Inventories at FIFO cost 3,598 3,609 Excess of FIFO over LIFO (128) (123) Total inventories $ 3,470 $ 3,486

DEBT

DEBT	9 Months Ended
	Sep. 27, 2020
Debt Disclosure [Abstract]
DEBT	NOTE 9. DEBT Loans Payable and Commercial Paper Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions September 27, December 31, Loans payable (1) $ 129 $ 100 Commercial paper 316 (2) 660 (3) (1) Loans payable consist primarily of notes payable to various domestic and international financial institutions. 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 0.03 percent at September 27, 2020. This includes $116 million of borrowings under the EUR program that were at a negative weighted-average interest rate of 0.27 percent and $200 million of borrowings under the U.S. program at a weighted-average rate of 0.20 percent. (3) The weighted-average interest rate, inclusive of all brokerage fees, was 1.82 percent at December 31, 2019. All borrowings were at positive interest rates. We can issue up to $3.5 billion of unsecured, short-term promissory notes (commercial paper) pursuant to the Board of Directors (the 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. On April 14, 2020, we were approved for the Federal Reserve Bank of New York’s Commercial Paper Funding Facility (CPFF) program to assure access to the commercial paper funding markets during volatile credit market conditions. The CPFF was intended to provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle (SPV). The facility allows us, based on our current short-term credit rating, to issue three-month unsecured commercial paper at a rate equal to a +110 basis point spread over the three-month overnight index swap rate on the date of issuance. The maximum amount of commercial paper that we may issue at any time through this program is $1.5 billion less the total principal amount of all other outstanding commercial paper that we have issued. We retain full access to our Board authorized $3.5 billion commercial paper program, as reduced by any amounts issued under this facility. The SPV is currently scheduled to cease purchasing commercial paper on March 17, 2021. At September 27, 2020, there were no outstanding borrowings under the CPFF program. Revolving Credit Facilities On August 19, 2020, we entered into an amended and restated 364-day credit agreement that allows us to borrow up to $1.5 billion of unsecured funds at any time prior to August 18, 2021. This credit agreement amends and restates the prior $1.5 billion 364-day credit facility that matured on August 19, 2020. On August 24, 2020, we terminated our 364-day credit facility that had been entered into on May 1, 2020, concurrent with the $2 billion bond issuance on August 24, 2020, described below. We have access to committed credit facilities that total $3.5 billion, including the new $1.5 billion 364-day facility that expires August 18, 2021 and our $2.0 billion five-year facility that expires on August 22, 2023. We maintain credit facilities at the current or higher aggregate amounts by renewing or replacing these facilities at or before expiration. These revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings and for general corporate purposes. At September 27, 2020, the $316 million of outstanding commercial paper effectively reduced the $3.5 billion of revolving credit capacity to $3.2 billion. At September 27, 2020, we also had an additional $191 million available for borrowings under our international and other domestic credit facilities. Long-term Debt On August 24, 2020, we issued $2 billion aggregate principal amount of senior unsecured notes consisting of $500 million aggregate principal amount of 0.75% senior unsecured notes due in 2025, $850 million aggregate principal amount of 1.50% senior unsecured notes due in 2030 and $650 million aggregate principal amount of 2.60% senior unsecured notes due in 2050. We received net proceeds of $1.98 billion. The senior unsecured notes pay interest semi-annually on March 1 and September 1, commencing on March 1, 2021. The indenture governing the senior unsecured notes contains covenants that, among other matters, limit (i) our ability to consolidate or merge into, or sell, assign, convey, lease, transfer or otherwise dispose of all or substantially all of our and our subsidiaries' assets to another person, (ii) our and certain of our subsidiaries' ability to create or assume liens and (iii) our and certain of our subsidiaries' ability to engage in sale and leaseback transactions. A summary of long-term debt was as follows: In millions Interest Rate September 27, December 31, Long-term debt Senior notes, due 2023 (1) 3.65% $ 500 $ 500 Senior notes, due 2025 0.75% 500 — Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 1.50% 850 — Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 — Debentures, due 2098 (2) 5.65% 165 165 Other debt 130 59 Unamortized discount and deferred issuance costs (73) (50) Fair value adjustments due to hedge on indebtedness 50 35 Finance leases 87 90 Total long-term debt 3,667 1,607 Less: Current maturities of long-term debt 58 31 Long-term debt $ 3,609 $ 1,576 (1) In June and July 2020, we settled our February 2014 interest rate swap. See "Interest Rate Risk" below for additional information. (2) The effective interest rate is 7.48%. Principal payments required on long-term debt during the next five years are as follows: In millions 2020 2021 2022 2023 2024 Principal payments $ 38 $ 51 $ 29 $ 525 $ 22 Interest Rate Risk In the first half of 2020, we entered into additional interest rate lock agreements to reduce the variability of the cash flows of the interest payments on a total of $500 million of fixed rate debt forecast to be issued in 2023 to replace our senior notes at maturity. We recorded a net gain of $17 million and net loss of $52 million in "Other comprehensive income" for the three and nine months ended September 27, 2020, respectively. In June and July of 2020, we settled our February 2014 interest rate swap, which previously converted our $500 million debt issue, due in 2023, from fixed rate to floating rate based on a LIBOR spread. We will amortize the $24 million gain realized upon settlement over the remaining three 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 September 27, December 31, Fair value of total debt (1) $ 4,532 $ 2,706 Carrying value of total debt 4,112 2,367 (1) The fair value of debt is derived from Level 2 inputs.

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	9 Months Ended
	Sep. 27, 2020
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 10. 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: Nine months ended In millions September 27, September 29, Balance, beginning of year $ 2,389 $ 2,208 Provision for base warranties issued 277 360 Deferred revenue on extended warranty contracts sold 172 254 Provision for product campaigns issued 27 163 Payments made during period (424) (431) Amortization of deferred revenue on extended warranty contracts (169) (174) Changes in estimates for pre-existing product warranties (41) (16) Foreign currency translation and other (6) (9) Balance, end of period $ 2,225 $ 2,355 We recognized supplier recoveries of $5 million and $16 million for the three and nine months ended September 27, 2020, compared with $3 million and $64 million for the comparable periods in 2019. Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions September 27, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 249 $ 227 Current portion of deferred revenue Long-term portion 695 714 Deferred revenue Total $ 944 $ 941 Product warranty Current portion $ 646 $ 803 Current portion of accrued product warranty Long-term portion 635 645 Accrued product warranty Total $ 1,281 $ 1,448 Total warranty accrual $ 2,225 $ 2,389 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 second quarter of 2018, we reached agreement with the CARB and EPA regarding our plans to address the affected populations. From the fourth quarter of 2017 through the second quarter of 2018, we recorded charges for the expected costs of field campaigns to repair these engine systems. The campaigns launched in the third quarter of 2018 are being completed in phases across the affected population. The total engine system campaign charge, excluding supplier recoveries, was $410 million. At September 27, 2020, the remaining accrual balance was $157 million.

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA	9 Months Ended
	Sep. 27, 2020
Balance Sheet Related Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET DATA	NOTE 11. SUPPLEMENTAL BALANCE SHEET DATA Other accrued expenses included the following: In millions September 27, 2020 December 31, 2019 Marketing accruals $ 220 $ 176 Other taxes payable 203 228 Current portion of operating lease liabilities 133 131 Income taxes payable 102 52 Other 332 452 Other accrued expenses $ 990 $ 1,039 Other liabilities included the following: In millions September 27, 2020 December 31, 2019 Operating lease liabilities $ 322 $ 370 Deferred income taxes 301 306 One-time transition tax 293 293 Accrued compensation 185 206 Mark-to-market valuation on interest rate locks 81 12 Other long-term liabilities 384 192 Other liabilities $ 1,566 $ 1,379

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 27, 2020
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 emission 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 voluntarily disclosed our formal internal review to the regulators and to other government agencies, the Department of Justice (DOJ) and the SEC, and have been working cooperatively with them to ensure a complete and thorough review. During conversations with the EPA and CARB about the effectiveness of our pick-up truck applications, the regulators raised concerns that certain aspects of our emissions systems may reduce the effectiveness of our emissions control systems and thereby act as defeat devices. As a result, our internal review focuses, in part, on the regulators’ concerns. We are working closely with the regulators to enhance our emissions systems to improve the effectiveness of all of our pick-up truck applications and to fully address the regulators’ requirements. Based on discussions with the regulators, we have developed a new calibration for the engines in model year 2019 RAM 2500 and 3500 trucks that has been included in all engines shipped since September 2019. During our discussions, the regulators have asked us to look at other model years and other engines, though the primary focus of our review has been the model year 2019 RAM. We are also fully cooperating with the DOJ's and the SEC's information requests and inquiries. Due to the continuing nature of our formal review, our ongoing cooperation with our regulators and other government agencies, and the presence of many unknown facts and circumstances, we cannot predict the final outcome of this review and these regulatory and agency processes, 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 September 27, 2020, the maximum potential loss related to these guarantees was $40 million. We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At September 27, 2020, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $37 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 September 27, 2020, the total commitments under these contracts were $30 million. These arrangements enable us to guarantee 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 $94 million at September 27, 2020. 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.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 27, 2020
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: In millions Change in Foreign Unrealized gain Total Noncontrolling Total Balance at June 28, 2020 $ (716) $ (1,436) $ (90) $ (2,242) Other comprehensive income before reclassifications Before-tax amount — 101 23 124 $ 10 $ 134 Tax benefit (expense) — — (5) (5) — (5) After-tax amount — 101 18 119 10 129 Amounts reclassified from accumulated other comprehensive income (loss) (1) 16 — — 16 — 16 Net current period other comprehensive income (loss) 16 101 18 135 $ 10 $ 145 Balance at September 27, 2020 $ (700) $ (1,335) $ (72) $ (2,107) Balance at June 30, 2019 $ (675) $ (1,156) $ (9) $ (1,840) Other comprehensive income (loss) before reclassifications Before-tax amount — (177) (39) (216) $ (5) $ (221) Tax benefit (expense) — — 8 8 — 8 After-tax amount — (177) (31) (208) (5) (213) Amounts reclassified from accumulated other comprehensive income (loss) (1) 6 — 2 8 — 8 Net current period other comprehensive income (loss) 6 (177) (29) (200) $ (5) $ (205) Balance at September 29, 2019 $ (669) $ (1,333) $ (38) $ (2,040) (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 nine months ended: In millions Change in Foreign Unrealized gain Total Noncontrolling Total Balance at December 31, 2019 $ (734) $ (1,285) $ (9) $ (2,028) Other comprehensive income (loss) before reclassifications Before-tax amount (19) (54) (75) (148) $ (12) $ (160) Tax benefit (expense) 5 4 16 25 — 25 After-tax amount (14) (50) (59) (123) (12) (135) Amounts reclassified from accumulated other comprehensive loss (1) 48 — (4) 44 — 44 Net current period other comprehensive income (loss) 34 (50) (63) (2) (79) $ (12) $ (91) Balance at September 27, 2020 $ (700) $ (1,335) $ (72) $ (2,107) Balance at December 31, 2018 $ (671) $ (1,138) $ 2 $ (1,807) Other comprehensive income (loss) before reclassifications Before-tax amount (22) (194) (47) (263) $ (2) $ (265) Tax benefit (expense) 5 (1) 11 15 — 15 After-tax amount (17) (195) (36) (248) (2) (250) Amounts reclassified from accumulated other comprehensive loss (1) 19 — (4) 15 — 15 Net current period other comprehensive income (loss) 2 (195) (40) (233) $ (2) $ (235) Balance at September 29, 2019 $ (669) $ (1,333) $ (38) $ (2,040) (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) Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 9 "DEBT" for additional information.

ACQUISITION

ACQUISITION	9 Months Ended
	Sep. 27, 2020
Business Combinations [Abstract]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 15. ACQUISITION The Hydrogenics Corporation acquisition for the nine months ended September 29, 2019 was as follows: Entity Acquired (Dollars in millions) Date of Acquisition Additional Percent Interest Acquired Payments to Former Owners Total Purchase Consideration Type of Acquisition (1) Goodwill Acquired Intangibles Recognized (2) Net Sales Previous Fiscal Year Ended 2019 Hydrogenics Corporation 9/09/19 81% $ 235 $ 235 COMB $ 161 $ 161 $ 34 (1) The newly consolidated entity was accounted for as business combinations (COMB) and was included in the New Power segment on the date of acquisition. (2) Intangible assets acquired in the business combination were mostly technology and customer related, the majority of which will be amortized over a period of up to 20 years from the date of the acquisition. Hydrogenics Corporation On September 9, 2019, we acquired an 81 percent interest in Hydrogenics Corporation for total consideration of $235 million. The Hydrogen Company, a wholly-owned subsidiary of L’Air Liquide, S.A., maintains a 19 percent noncontrolling interest in Hydrogenics Corporation of $56 million, based on the publicly traded share price of Hydrogenics at the acquisition date, which was representative of its fair value. We accounted for the transaction as a business combination and included it in the New Power segment in the third quarter of 2019. We assigned this business to our New Power reporting unit, which included both our electrified power and fuel cell businesses, for goodwill impairment purposes. As of December 31, 2019, our purchase accounting was complete. The intangible assets will be amortized over periods ranging from 3 to 20 years. The final purchase price allocation was as follows: In millions Inventory $ 21 Other current assets 25 Intangible assets Technology assets 96 Customer relationships 29 In-process research and development 35 Other intangible assets 1 Goodwill 161 Other assets 18 Current liabilities (53) Other liabilities (42) Total business valuation 291 Less: Noncontrolling interest 56 Total purchase consideration $ 235 Technology assets represent the value of both the existing fuel cells and generation equipment. These assets were valued using the relief-from-royalty method, which is a combination of the income approach and market approach that values a subject asset based on an estimate of the relief from the royalty expense that would be incurred if the subject asset were licensed from a third-party. Key assumptions are expected revenue, the royalty rate, the estimated remaining useful life and the discount rate. This value is considered a level 3 measurement under the GAAP fair value hierarchy. Customer relationship assets represent the value of the long-term strategic relationship the business has with its significant customers. The assets were valued using an income approach, specifically the multi-period excess earnings method, which identifies an estimated stream of revenues and expenses for a particular group of assets from which deductions of portions of the projected economic benefits, attributable to assets other than the subject asset (contributory assets), are deducted in order to isolate the prospective earnings of the subject asset. Key assumptions are expected revenue, related expenses, the estimated remaining useful life and the discount rate. These assets are each being amortized over 15 to 20 years. Annual amortization of the intangible assets for the next five years was expected to approximate $8 million. In-process research and development assets represent acquired research and development assets that have been initiated, achieved material progress, but have not yet resulted in a technologically feasible or commercially viable project. These assets were valued using the relief-from-royalty method, as described above. These assets will not be amortized until they have been completed, but will be tested annually for impairment until that time.

RESTRUCTURING ACTIONS AND OTHER

RESTRUCTURING ACTIONS AND OTHER CHARGES	9 Months Ended
	Sep. 27, 2020
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure	NOTE 14. RESTRUCTURING ACTIONS In November 2019, we announced our intentions to reduce our global workforce in response to the continued deterioration in our global markets in the second half of 2019, as well as expected reductions in orders in most U.S. and international markets in 2020. In the fourth quarter of 2019, we began executing restructuring actions, primarily in the form of voluntary and involuntary employee separation programs. To the extent these programs involve voluntary separations, a liability is generally recorded at the time offers to employees are accepted. To the extent these programs provide separation benefits in accordance with pre-existing agreements or policies, a liability is recorded once the amount is probable and reasonably estimable. We incurred a charge of $119 million ($90 million after-tax) in the fourth quarter of 2019 for these actions which impacted approximately 2,300 employees. The voluntary actions were completed by December 31, 2019 and the involuntary actions were completed by June 28, 2020. The table below summarizes the activity and balance of accrued restructuring, which is included in "Other accrued expenses" in our Condensed Consolidated Balance Sheets : In millions Restructuring Accrual Balance at December 31, 2019 $ 116 Cash payments (100) Change in estimate (6) Balance at September 27, 2020 $ 10

OPERATING SEGMENTS

OPERATING SEGMENTS	9 Months Ended
	Sep. 27, 2020
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 16. 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 New 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 automated 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 New Power segment designs, manufactures, sells and supports electrified power systems ranging from fully electric to hybrid along with innovative components and subsystems, including battery, fuel cell and hydrogen production technologies. We continue to serve all our markets as they adopt electrification and alternative power technologies, meeting the needs of our OEM partners and end customers. We use EBITDA (defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests) as the primary basis for the CODM to evaluate the performance of each of our reportable operating segments. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. 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 gains or losses 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 New Power Total Segments Intersegment Eliminations (1) Total Three months ended September 27, 2020 External sales $ 1,617 $ 1,715 $ 1,201 $ 567 $ 18 $ 5,118 $ — $ 5,118 Intersegment sales 495 6 340 414 — 1,255 (1,255) — Total sales 2,112 1,721 1,541 981 18 6,373 (1,255) 5,118 Research, development and engineering expenses 72 9 64 53 26 224 — 224 Equity, royalty and interest income (loss) from investees 74 13 13 — (2) 98 — 98 Interest income 1 1 1 1 — 4 — 4 EBITDA 382 182 261 101 (40) 886 (10) 876 Depreciation and amortization (2) 51 30 47 32 5 165 — 165 Three months ended September 29, 2019 External sales $ 1,822 $ 2,001 $ 1,253 $ 683 $ 9 $ 5,768 $ — $ 5,768 Intersegment sales 594 3 397 443 — 1,437 (1,437) — Total sales 2,416 2,004 1,650 1,126 9 7,205 (1,437) 5,768 Research, development and engineering expenses 79 7 73 58 25 242 — 242 Equity, royalty and interest income from investees 34 12 9 13 — 68 — 68 Interest income 5 4 2 3 — 14 — 14 EBITDA 341 186 286 158 (36) 935 23 958 Depreciation and amortization (2) 50 29 67 29 2 177 — 177 (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 September 27, 2020 and September 29, 2019. (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 nine months ended is shown in the table below: In millions Engine Distribution Components Power Systems New Power Total Segments Intersegment Eliminations (1) Total Nine months ended September 27, 2020 External sales $ 4,133 $ 5,123 $ 3,192 $ 1,495 $ 38 $ 13,981 $ — $ 13,981 Intersegment sales 1,560 17 1,001 1,147 — 3,725 (3,725) — Total sales 5,693 5,140 4,193 2,642 38 17,706 (3,725) 13,981 Research, development and engineering expenses 217 20 187 148 79 651 — 651 Equity, royalty and interest income (loss) from investees 236 45 46 18 (3) 342 — 342 Interest income 6 3 3 3 — 15 — 15 EBITDA 897 500 681 269 (121) 2,226 45 2,271 Depreciation and amortization (2) 155 91 142 96 13 497 — 497 Nine months ended September 29, 2019 External sales $ 5,879 $ 6,009 $ 4,055 $ 2,030 $ 20 $ 17,993 $ — $ 17,993 Intersegment sales 1,893 24 1,302 1,376 — 4,595 (4,595) — Total sales 7,772 6,033 5,357 3,406 20 22,588 (4,595) 17,993 Research, development and engineering expenses 245 21 223 171 70 730 — 730 Equity, royalty and interest income from investees 152 35 30 39 — 256 — 256 Interest income 13 12 6 7 — 38 — 38 EBITDA 1,195 529 908 469 (98) 3,003 46 3,049 Depreciation and amortization (2) 151 86 160 88 6 491 — 491 (1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended September 27, 2020 and September 29, 2019. (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 $2 million and $2 million for the nine months ended September 27, 2020 and September 29, 2019, 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 Nine months ended In millions September 27, September 29, September 27, September 29, Total EBITDA $ 876 $ 958 $ 2,271 $ 3,049 Less: Depreciation and amortization 165 177 497 491 Interest expense 25 26 71 87 Income before income taxes $ 686 $ 755 $ 1,703 $ 2,471

RECENTLY ADOPTED AND RECENTLY I

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 27, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	NOTE 17. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In August 2018, the Financial Accounting Standards Board (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. We adopted the standard on January 1, 2020, on a prospective basis as allowed by the standard. The adoption is not expected to have a material impact on our Condensed Consolidated Financial Statements . On January 1, 2020, we adopted the new FASB standard related to accounting for credit losses on financial instruments. This standard introduces new guidance for accounting for credit losses on instruments including trade receivables and held-to-maturity debt securities. The standard requires entities to record a cumulative effect adjustment to the statement of financial position. We recorded a net decrease to opening retained earnings of $4 million, net of tax, as of January 1, 2020, due to the cumulative impact of adopting the new standard. The impact to any individual financial statement line item as a result of applying the new standard, as compared to the old standard, was not material for the nine months ended September 27, 2020. In March 2020, the FASB amended its standard to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendment allows entities to elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. These expedients would apply to interest rate locks. The guidance was effective upon issuance and expires after December 31, 2022. The amendment did not have an effect on our Condensed Consolidated Financial Statements at September 27, 2020. We are still evaluating which contracts will be impacted by reference rate reform, but the expedients will allow us to make permitted changes prior to the expiration of the amendments without resulting in an impact to our Consolidated Financial Statements .

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	9 Months Ended
	Sep. 27, 2020
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 Nine months ended September 27, September 29, September 27, September 29, Options excluded 2,405 874,604 858,651 631,042

REVENUE RECOGNITION LONGTERM CO

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	9 Months Ended
	Sep. 27, 2020
Revenue from Contract with Customer [Abstract]
Contract with Customer, Contract Asset, Contract Liability, and Receivable	The following is a summary of our unbilled and deferred revenue and related activity: In millions September 27, December 31, Unbilled revenue $ 79 $ 68 Deferred revenue, primarily extended warranty 1,377 1,354

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	9 Months Ended
	Sep. 27, 2020
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 Nine months ended In millions September 27, September 29, September 27, September 29, United States $ 2,805 $ 3,414 $ 7,522 $ 10,461 China 705 481 2,037 1,698 India 166 185 406 643 Other international 1,442 1,688 4,016 5,191 Total net sales $ 5,118 $ 5,768 $ 13,981 $ 17,993
Engine
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Market	Engine segment external sales by market were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Heavy-duty truck $ 486 $ 635 $ 1,226 $ 2,112 Medium-duty truck and bus 389 525 1,177 1,765 Light-duty automotive 502 451 975 1,216 Total on-highway 1,377 1,611 3,378 5,093 Off-highway 240 211 755 786 Total sales $ 1,617 $ 1,822 $ 4,133 $ 5,879
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 Nine months ended In millions September 27, September 29, September 27, September 29, North America $ 1,126 $ 1,373 $ 3,409 $ 4,139 Asia Pacific 195 224 577 667 Europe 153 135 424 380 China 74 82 242 264 Africa and Middle East 47 60 136 170 India 42 46 101 142 Russia 41 33 126 113 Latin America 37 48 108 134 Total sales $ 1,715 $ 2,001 $ 5,123 $ 6,009
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Parts $ 719 $ 796 $ 2,155 $ 2,464 Power generation 415 466 1,166 1,292 Service 303 376 926 1,109 Engines 278 363 876 1,144 Total sales $ 1,715 $ 2,001 $ 5,123 $ 6,009
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 Nine months ended In millions September 27, September 29, September 27, September 29, Emission solutions $ 612 $ 660 $ 1,576 $ 2,144 Filtration 260 249 715 771 Turbo technologies 163 151 463 522 Automated transmissions 90 146 215 451 Electronics and fuel systems 76 47 223 167 Total sales $ 1,201 $ 1,253 $ 3,192 $ 4,055
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 Nine months ended In millions September 27, September 29, September 27, September 29, Power generation $ 334 $ 372 $ 827 $ 1,060 Industrial 167 227 477 704 Generator technologies 66 84 191 266 Total sales $ 567 $ 683 $ 1,495 $ 2,030

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	9 Months Ended
	Sep. 27, 2020
Retirement Benefits [Abstract]
Schedule Benefit Plans Disclosures Cash Contributions	We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit (OPEB) plans. Contributions to these plans were as follows: Three months ended Nine months ended In millions September 27, September 29, September 27, September 29, Defined benefit pension contributions $ 11 $ 33 $ 77 $ 110 OPEB payments, net 9 5 25 20 Defined contribution pension plans 18 23 70 80
Components of net periodic pension and other postretirement benefit cost	The components of net periodic pension and OPEB costs under our plans were as follows: Pension U.S. Plans U.K. Plans OPEB Three months ended In millions September 27, September 29, September 27, September 29, September 27, September 29, Service cost $ 33 $ 29 $ 8 $ 6 $ — $ — Interest cost 24 27 8 10 2 3 Expected return on plan assets (49) (47) (19) (16) — — Amortization of prior service cost — — 1 — — — Recognized net actuarial loss 10 4 9 3 — — Net periodic benefit cost $ 18 $ 13 $ 7 $ 3 $ 2 $ 3 Pension U.S. Plans U.K. Plans OPEB Nine months ended In millions September 27, September 29, September 27, September 29, September 27, September 29, Service cost $ 100 $ 87 $ 22 $ 19 $ — $ — Interest cost 71 81 26 32 5 8 Expected return on plan assets (146) (142) (56) (52) — — Amortization of prior service cost 1 1 2 1 — — Recognized net actuarial loss 30 12 26 9 — — Net periodic benefit cost $ 56 $ 39 $ 20 $ 9 $ 5 $ 8

EQUITY, ROYALTY AND INTEREST _2

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Tables)	9 Months Ended
	Sep. 27, 2020
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 Nine months ended In millions September 27, September 29, September 27, September 29, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 30 $ 15 $ 81 $ 56 Dongfeng Cummins Engine Company, Ltd. 20 10 54 40 Chongqing Cummins Engine Company, Ltd. 7 10 27 32 All other manufacturers 22 (1) 21 100 (1)(2) 76 Distribution entities Komatsu Cummins Chile, Ltda. 6 6 23 19 All other distributors 1 1 1 — Cummins share of net income 86 63 286 223 Royalty and interest income 12 5 56 33 Equity, royalty and interest income from investees $ 98 $ 68 $ 342 $ 256 (1) Includes impairment charges of $10 million and $13 million for the three and nine months ended September 27, 2020, respectively, for a joint venture in the Power Systems segment. (2) Includes $37 million in adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 6, "INCOME TAXES" for additional information on India Tax Law Change.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 27, 2020
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The India Tax Law Change resulted in the following adjustments to the Condensed Consolidated Statements of Net Income for the nine months ended September 27, 2020: In millions Favorable (Unfavorable) Equity, royalty and interest income from investees $ 37 Income tax expense (1) 17 Less: Net income attributable to noncontrolling interests (19) Net income statement impact $ 35 (1) The adjustment to "Income tax expense" includes $15 million of discrete items.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	9 Months Ended
	Sep. 27, 2020
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: September 27, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 167 $ 5 $ 172 $ 180 $ 3 $ 183 Certificates of deposit 151 — 151 133 — 133 Equity mutual funds 18 3 21 19 4 23 Bank debentures — — — 1 — 1 Debt securities 1 — 1 1 — 1 Total marketable securities $ 337 $ 8 $ 345 $ 334 $ 7 $ 341 (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: Nine months ended In millions September 27, September 29, Proceeds from sales of marketable securities $ 283 $ 179 Proceeds from maturities of marketable securities 125 117 Investments in marketable securities - liquidations $ 408 $ 296

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 27, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories are stated at the lower of cost or market. Inventories included the following: In millions September 27, December 31, Finished products $ 2,182 $ 2,214 Work-in-process and raw materials 1,416 1,395 Inventories at FIFO cost 3,598 3,609 Excess of FIFO over LIFO (128) (123) Total inventories $ 3,470 $ 3,486

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 27, 2020
Debt Disclosure [Abstract]
Schedule of Short-term Debt	Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions September 27, December 31, Loans payable (1) $ 129 $ 100 Commercial paper 316 (2) 660 (3) (1) Loans payable consist primarily of notes payable to various domestic and international financial institutions. 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 0.03 percent at September 27, 2020. This includes $116 million of borrowings under the EUR program that were at a negative weighted-average interest rate of 0.27 percent and $200 million of borrowings under the U.S. program at a weighted-average rate of 0.20 percent. (3) The weighted-average interest rate, inclusive of all brokerage fees, was 1.82 percent at December 31, 2019. All borrowings were at positive interest rates.
Summary of long-term debt	A summary of long-term debt was as follows: In millions Interest Rate September 27, December 31, Long-term debt Senior notes, due 2023 (1) 3.65% $ 500 $ 500 Senior notes, due 2025 0.75% 500 — Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 1.50% 850 — Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 — Debentures, due 2098 (2) 5.65% 165 165 Other debt 130 59 Unamortized discount and deferred issuance costs (73) (50) Fair value adjustments due to hedge on indebtedness 50 35 Finance leases 87 90 Total long-term debt 3,667 1,607 Less: Current maturities of long-term debt 58 31 Long-term debt $ 3,609 $ 1,576 (1) In June and July 2020, we settled our February 2014 interest rate swap. See "Interest Rate Risk" below for additional information. (2) The effective interest rate 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 2020 2021 2022 2023 2024 Principal payments $ 38 $ 51 $ 29 $ 525 $ 22
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 September 27, December 31, Fair value of total debt (1) $ 4,532 $ 2,706 Carrying value of total debt 4,112 2,367 (1) The fair value of debt is derived from Level 2 inputs.

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	9 Months Ended
	Sep. 27, 2020
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: Nine months ended In millions September 27, September 29, Balance, beginning of year $ 2,389 $ 2,208 Provision for base warranties issued 277 360 Deferred revenue on extended warranty contracts sold 172 254 Provision for product campaigns issued 27 163 Payments made during period (424) (431) Amortization of deferred revenue on extended warranty contracts (169) (174) Changes in estimates for pre-existing product warranties (41) (16) Foreign currency translation and other (6) (9) Balance, end of period $ 2,225 $ 2,355
Warranty related deferred revenue and the long-term portion of the warranty liability	Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions September 27, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 249 $ 227 Current portion of deferred revenue Long-term portion 695 714 Deferred revenue Total $ 944 $ 941 Product warranty Current portion $ 646 $ 803 Current portion of accrued product warranty Long-term portion 635 645 Accrued product warranty Total $ 1,281 $ 1,448 Total warranty accrual $ 2,225 $ 2,389

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	9 Months Ended
	Sep. 27, 2020
Balance Sheet Related Disclosures [Abstract]
Accrued Expenses	Other accrued expenses included the following: In millions September 27, 2020 December 31, 2019 Marketing accruals $ 220 $ 176 Other taxes payable 203 228 Current portion of operating lease liabilities 133 131 Income taxes payable 102 52 Other 332 452 Other accrued expenses $ 990 $ 1,039
Other Noncurrent Liabilities	Other liabilities included the following: In millions September 27, 2020 December 31, 2019 Operating lease liabilities $ 322 $ 370 Deferred income taxes 301 306 One-time transition tax 293 293 Accrued compensation 185 206 Mark-to-market valuation on interest rate locks 81 12 Other long-term liabilities 384 192 Other liabilities $ 1,566 $ 1,379

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 27, 2020
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: In millions Change in Foreign Unrealized gain Total Noncontrolling Total Balance at June 28, 2020 $ (716) $ (1,436) $ (90) $ (2,242) Other comprehensive income before reclassifications Before-tax amount — 101 23 124 $ 10 $ 134 Tax benefit (expense) — — (5) (5) — (5) After-tax amount — 101 18 119 10 129 Amounts reclassified from accumulated other comprehensive income (loss) (1) 16 — — 16 — 16 Net current period other comprehensive income (loss) 16 101 18 135 $ 10 $ 145 Balance at September 27, 2020 $ (700) $ (1,335) $ (72) $ (2,107) Balance at June 30, 2019 $ (675) $ (1,156) $ (9) $ (1,840) Other comprehensive income (loss) before reclassifications Before-tax amount — (177) (39) (216) $ (5) $ (221) Tax benefit (expense) — — 8 8 — 8 After-tax amount — (177) (31) (208) (5) (213) Amounts reclassified from accumulated other comprehensive income (loss) (1) 6 — 2 8 — 8 Net current period other comprehensive income (loss) 6 (177) (29) (200) $ (5) $ (205) Balance at September 29, 2019 $ (669) $ (1,333) $ (38) $ (2,040) (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 nine months ended: In millions Change in Foreign Unrealized gain Total Noncontrolling Total Balance at December 31, 2019 $ (734) $ (1,285) $ (9) $ (2,028) Other comprehensive income (loss) before reclassifications Before-tax amount (19) (54) (75) (148) $ (12) $ (160) Tax benefit (expense) 5 4 16 25 — 25 After-tax amount (14) (50) (59) (123) (12) (135) Amounts reclassified from accumulated other comprehensive loss (1) 48 — (4) 44 — 44 Net current period other comprehensive income (loss) 34 (50) (63) (2) (79) $ (12) $ (91) Balance at September 27, 2020 $ (700) $ (1,335) $ (72) $ (2,107) Balance at December 31, 2018 $ (671) $ (1,138) $ 2 $ (1,807) Other comprehensive income (loss) before reclassifications Before-tax amount (22) (194) (47) (263) $ (2) $ (265) Tax benefit (expense) 5 (1) 11 15 — 15 After-tax amount (17) (195) (36) (248) (2) (250) Amounts reclassified from accumulated other comprehensive loss (1) 19 — (4) 15 — 15 Net current period other comprehensive income (loss) 2 (195) (40) (233) $ (2) $ (235) Balance at September 29, 2019 $ (669) $ (1,333) $ (38) $ (2,040) (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) Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 9 "DEBT" for additional information.

ACQUISITION ACQUISITION (Tables

ACQUISITION ACQUISITION (Tables)	9 Months Ended
	Sep. 27, 2020
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The Hydrogenics Corporation acquisition for the nine months ended September 29, 2019 was as follows: Entity Acquired (Dollars in millions) Date of Acquisition Additional Percent Interest Acquired Payments to Former Owners Total Purchase Consideration Type of Acquisition (1) Goodwill Acquired Intangibles Recognized (2) Net Sales Previous Fiscal Year Ended 2019 Hydrogenics Corporation 9/09/19 81% $ 235 $ 235 COMB $ 161 $ 161 $ 34 (1) The newly consolidated entity was accounted for as business combinations (COMB) and was included in the New Power segment on the date of acquisition. (2) Intangible assets acquired in the business combination were mostly technology and customer related, the majority of which will be amortized over a period of up to 20 years from the date of the acquisition.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The final purchase price allocation was as follows: In millions Inventory $ 21 Other current assets 25 Intangible assets Technology assets 96 Customer relationships 29 In-process research and development 35 Other intangible assets 1 Goodwill 161 Other assets 18 Current liabilities (53) Other liabilities (42) Total business valuation 291 Less: Noncontrolling interest 56 Total purchase consideration $ 235

RESTRUCTURING ACTIONS AND OTH_2

RESTRUCTURING ACTIONS AND OTHER CHARGES (Tables)	9 Months Ended
	Sep. 27, 2020
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The table below summarizes the activity and balance of accrued restructuring, which is included in "Other accrued expenses" in our Condensed Consolidated Balance Sheets : In millions Restructuring Accrual Balance at December 31, 2019 $ 116 Cash payments (100) Change in estimate (6) Balance at September 27, 2020 $ 10

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	9 Months Ended
	Sep. 27, 2020
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 New Power Total Segments Intersegment Eliminations (1) Total Three months ended September 27, 2020 External sales $ 1,617 $ 1,715 $ 1,201 $ 567 $ 18 $ 5,118 $ — $ 5,118 Intersegment sales 495 6 340 414 — 1,255 (1,255) — Total sales 2,112 1,721 1,541 981 18 6,373 (1,255) 5,118 Research, development and engineering expenses 72 9 64 53 26 224 — 224 Equity, royalty and interest income (loss) from investees 74 13 13 — (2) 98 — 98 Interest income 1 1 1 1 — 4 — 4 EBITDA 382 182 261 101 (40) 886 (10) 876 Depreciation and amortization (2) 51 30 47 32 5 165 — 165 Three months ended September 29, 2019 External sales $ 1,822 $ 2,001 $ 1,253 $ 683 $ 9 $ 5,768 $ — $ 5,768 Intersegment sales 594 3 397 443 — 1,437 (1,437) — Total sales 2,416 2,004 1,650 1,126 9 7,205 (1,437) 5,768 Research, development and engineering expenses 79 7 73 58 25 242 — 242 Equity, royalty and interest income from investees 34 12 9 13 — 68 — 68 Interest income 5 4 2 3 — 14 — 14 EBITDA 341 186 286 158 (36) 935 23 958 Depreciation and amortization (2) 50 29 67 29 2 177 — 177 (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 September 27, 2020 and September 29, 2019. (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 nine months ended is shown in the table below: In millions Engine Distribution Components Power Systems New Power Total Segments Intersegment Eliminations (1) Total Nine months ended September 27, 2020 External sales $ 4,133 $ 5,123 $ 3,192 $ 1,495 $ 38 $ 13,981 $ — $ 13,981 Intersegment sales 1,560 17 1,001 1,147 — 3,725 (3,725) — Total sales 5,693 5,140 4,193 2,642 38 17,706 (3,725) 13,981 Research, development and engineering expenses 217 20 187 148 79 651 — 651 Equity, royalty and interest income (loss) from investees 236 45 46 18 (3) 342 — 342 Interest income 6 3 3 3 — 15 — 15 EBITDA 897 500 681 269 (121) 2,226 45 2,271 Depreciation and amortization (2) 155 91 142 96 13 497 — 497 Nine months ended September 29, 2019 External sales $ 5,879 $ 6,009 $ 4,055 $ 2,030 $ 20 $ 17,993 $ — $ 17,993 Intersegment sales 1,893 24 1,302 1,376 — 4,595 (4,595) — Total sales 7,772 6,033 5,357 3,406 20 22,588 (4,595) 17,993 Research, development and engineering expenses 245 21 223 171 70 730 — 730 Equity, royalty and interest income from investees 152 35 30 39 — 256 — 256 Interest income 13 12 6 7 — 38 — 38 EBITDA 1,195 529 908 469 (98) 3,003 46 3,049 Depreciation and amortization (2) 151 86 160 88 6 491 — 491 (1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended September 27, 2020 and September 29, 2019. (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 $2 million and $2 million for the nine months ended September 27, 2020 and September 29, 2019, 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 Nine months ended In millions September 27, September 29, September 27, September 29, Total EBITDA $ 876 $ 958 $ 2,271 $ 3,049 Less: Depreciation and amortization 165 177 497 491 Interest expense 25 26 71 87 Income before income taxes $ 686 $ 755 $ 1,703 $ 2,471

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details)	9 Months Ended
	Sep. 27, 2020locationcountry
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		9 Months Ended
	Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Options excluded (in shares)	2,405	874,604	858,651	631,042

REVENUE RECOGNITION LONGTERM _2

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 900		$ 900
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled revenue	79		79		$ 68
Deferred revenue, primarily extended warranty	1,377		1,377		$ 1,354
Contract with Customer, Liability, Revenue Recognized	84	$ 79	290	$ 282
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-28
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 172		$ 172
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]: 2021-09-28
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 728		$ 728
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		9 Months Ended
		Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)	[1]	$ 5,118	$ 5,768	$ 13,981	$ 17,993
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		486	635	1,226	2,112
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		389	525	1,177	1,765
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		502	451	975	1,216
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,377	1,611	3,378	5,093
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		240	211	755	786
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		719	796	2,155	2,464
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		415	466	1,166	1,292
Service (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		303	376	926	1,109
Engines (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		278	363	876	1,144
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		612	660	1,576	2,144
Filtration (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		260	249	715	771
Turbo technologies (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		163	151	463	522
Automated Transmissions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		90	146	215	451
Electronics and Fuel systems (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		76	47	223	167
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		334	372	827	1,060
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		167	227	477	704
Generator technologies (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		66	84	191	266
Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		2,112	2,416	5,693	7,772
Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,721	2,004	5,140	6,033
Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,541	1,650	4,193	5,357
Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		981	1,126	2,642	3,406
External Sales
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		5,118	5,768	13,981	17,993
External Sales | Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,617	1,822	4,133	5,879
External Sales | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,715	2,001	5,123	6,009
External Sales | Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,201	1,253	3,192	4,055
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		567	683	1,495	2,030
UNITED STATES
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		2,805	3,414	7,522	10,461
CHINA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		705	481	2,037	1,698
CHINA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		74	82	242	264
INDIA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		166	185	406	643
INDIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		42	46	101	142
OTHER INTERNATIONAL
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,442	1,688	4,016	5,191
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		1,126	1,373	3,409	4,139
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		195	224	577	667
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		153	135	424	380
AFRICA AND MIDDLE EAST | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		47	60	136	170
RUSSIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		41	33	126	113
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 3)		$ 37	$ 48	$ 108	$ 134
[1]	(a) Includes sales to nonconsolidated equity investees of $311 million and $906 million for the three and nine months ended September 27, 2020, compared with $280 million and $882 million for the comparable periods in 2019.

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019	Sep. 28, 2020
Pension and other postretirement benefits
Defined contribution pension plans	$ 18	$ 23	$ 70	$ 80
Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	11	33	77	110
Other Postretirement Benefits Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	9	5	25	20
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	2	3	5	8
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	2	3	5	8
Estimate | Pension Plan
Pension and other postretirement benefits
Net periodic pension cost					$ 102
UNITED STATES | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	33	29	100	87
Interest cost	24	27	71	81
Expected return on plan assets	(49)	(47)	(146)	(142)
Amortization of prior service cost	0	0	1	1
Recognized net actuarial loss	10	4	30	12
Net periodic benefit cost	18	13	56	39
UNITED STATES | Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year					7
UNITED KINGDOM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	8	6	22	19
Interest cost	8	10	26	32
Expected return on plan assets	(19)	(16)	(56)	(52)
Amortization of prior service cost	1	0	2	1
Recognized net actuarial loss	9	3	26	9
Net periodic benefit cost	$ 7	$ 3	$ 20	$ 9
UNITED KINGDOM | Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year					$ 7

EQUITY, ROYALTY AND INTEREST _3

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 27, 2020		Sep. 29, 2019	Sep. 27, 2020		Sep. 29, 2019
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	$ 98		$ 68	$ 342		$ 256
Impairment of Equity Method Investment	10			13
Ministry of Finance, India
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees				37
Beijing Foton Cummins Engine Company
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	30		15	81		56
Dongfeng Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	20		10	54		40
Chongqing Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	7		10	27		32
All other manufacturers
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	22	[1]	21	100	[1],[2]	76
Komatsu Cummins Chile, Ltda. (Distribution)
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	6		6	23		19
All other distributors
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	1		1	1		0
Cummin's Share of Equity Earnings
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	86		63	286		223
Royalty and interest income
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	$ 12		$ 5	$ 56		$ 33
[1]	(1) Includes impairment charges of $10 million and $13 million for the three and nine months ended September 27, 2020, respectively, for a joint venture in the Power Systems segment.
[2]	(2) Includes $37 million in adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 6, "INCOME TAXES" for additional information on India Tax Law Change.

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019
Operating Loss Carryforwards [Line Items]
Effective tax rate (as a percent)		26.50%	18.40%	23.60%	20.30%
Discrete Tax Expense (Benefit)		$ (31)	$ 23	$ (27)	$ 30
Income (Loss) from Continuing Operations, Per Diluted Share		$ 0.21	$ 0.14	$ 0.18	$ 0.19
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 17		$ 34
Income Tax Provision to Return Adjustment		8		8
Other Discrete Tax Expenses		6
Net Income (Loss) Available to Common Stockholders, Basic		501	$ 622	1,288	$ 1,960
Equity, royalty and interest income (loss) from investees		98	68	342	256
Income Tax Expense (Benefit)		(182)	(139)	(402)	(501)
Net Income (Loss) Attributable to Noncontrolling Interest		$ (3)	$ 6	(13)	$ (10)
Ministry of Finance, India
Operating Loss Carryforwards [Line Items]
Discrete Tax Expense (Benefit)				15
Net Income (Loss) Available to Common Stockholders, Basic				35
Equity, royalty and interest income (loss) from investees				37
Income Tax Expense (Benefit)	[1]			17
Net Income (Loss) Attributable to Noncontrolling Interest				$ (19)
[1]	(1) The adjustment to "Income tax expense" includes $15 million of discrete items.

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended		12 Months Ended
		Sep. 27, 2020	Sep. 27, 2020	Sep. 29, 2019	Dec. 31, 2019
Schedule of Available-for-sale Securities
Debt Securities, Available-for-sale, Amortized Cost		$ 1	$ 1		$ 1
Debt Securities, Available for sale, Unrealized Gain (Loss)	[1]	0	0		0
Debt Securities, Available-for-sale		1	1		1
Total Marketable Securities, Amortized Cost Basis		337	337		334
Total Marketable Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	[1]	8	8		7
Total Marketable Securities, Estimated Fair Value		345	345		341
Proceeds from Sale of Marketable Securities			283	$ 179
Proceeds from Maturity of Marketable Securities			125	117
Proceeds from sales and maturities of marketable securities			408	$ 296
Debt Mutual Funds
Schedule of Available-for-sale Securities
Equity Securities, cost		167	167		180
Equity Securities, Unrealized Gain (Loss)	[1]	5			3
Equity Securities, Fair Value		172	172		183
Certificates of deposit
Schedule of Available-for-sale Securities
Equity Securities, cost		151	151		133
Equity Securities, Unrealized Gain (Loss)	[1]	0			0
Equity Securities, Fair Value		151	151		133
Equity mutual funds
Schedule of Available-for-sale Securities
Equity Securities, cost		18	18		19
Equity Securities, Unrealized Gain (Loss)	[1]	3			4
Equity Securities, Fair Value		21	21		23
Bank debentures
Schedule of Available-for-sale Securities
Equity Securities, cost		0	0		1
Equity Securities, Unrealized Gain (Loss)	[1]	0			0
Equity Securities, Fair Value		$ 0	$ 0		$ 1
Minimum | Certificates of deposit
Schedule of Available-for-sale Securities
Maturities of Bank Debentures Description			three months
Maximum | Certificates of deposit
Schedule of Available-for-sale Securities
Maturities of Bank Debentures Description			five years
[1]	(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	Sep. 27, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished products	$ 2,182	$ 2,214
Work-in-process and raw materials	1,416	1,395
Inventories at FIFO cost	3,598	3,609
Excess of FIFO over LIFO	(128)	(123)
Total inventories	$ 3,470	$ 3,486

DEBT (Details)

DEBT (Details) $ in Millions		Aug. 24, 2020USD ($)	Sep. 27, 2020USD ($)Rate		Sep. 29, 2019USD ($)	Sep. 27, 2020USD ($)Rate		Sep. 29, 2019USD ($)	Aug. 19, 2020USD ($)	Dec. 31, 2019USD ($)Rate		Aug. 21, 2019USD ($)	Aug. 22, 2018USD ($)
Short-term Debt [Line Items]
Loans payable	[1]		$ 129			$ 129				$ 100
Commercial paper			316	[2]		316	[2]			660	[3]
Line of Credit Facility, Maximum Borrowing Capacity			3,500			3,500							$ 2,000
Line of Credit Facility, Remaining Borrowing Capacity			3,200			3,200
Long-term debt
Unsecured Debt		$ 2,000
Proceeds from Issuance of Debt		$ 1,980
Other Long-term Debt			130			130				59
Unamortized discount and deferred issuance costs			(73)			(73)				(50)
Fair value adjustment due to hedge on indebtedness			50			50				35
Finance Lease, Liability			87			87				90
Total long-term debt			3,667			3,667				1,607
Current maturities of long-term debt			58			58				31
Long-term debt			3,609			3,609				1,576
Unrealized gain (loss) on derivatives			18		$ (29)	(63)		$ (40)
Principal payments
2020			38			38
2021			51			51
2022			29			29
2023			525			525
2024			22			22
Fair value
Fair value of total debt	[4]		4,532			4,532				2,706
Carrying value of total debt			4,112			4,112				$ 2,367
Long-term Debt, Other Disclosures [Abstract]
Interest Rate Lock, Notional Amount			500			500
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge			$ 24			24
Amortization Period of Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge			3 years
EUROPE
Short-term Debt [Line Items]
Commercial paper			$ 116			116
UNITED STATES
Short-term Debt [Line Items]
Commercial paper			$ 200			$ 200
Commercial Paper
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time | Rate			0.03%			0.03%				1.82%
Line of Credit Facility, Maximum Borrowing Capacity			$ 3,500			$ 3,500
Commercial Paper | EUROPE
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time | Rate			(0.27%)			(0.27%)
Commercial Paper | UNITED STATES
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time | Rate			0.20%			0.20%
CPFF Program
Short-term Debt [Line Items]
Commercial paper			$ 0			$ 0
Line of Credit Facility, Maximum Borrowing Capacity			1,500			$ 1,500
Debt instrument, Basis Spread on Variable Rate (not a percentage)						110
International and Other Lines of Credit
Short-term Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			191			$ 191
Interest Rate Lock
Long-term debt
Unrealized gain (loss) on derivatives			17			(52)
Senior notes, due 2023(1)
Long-term debt
Unsecured Debt	[5]		$ 500			$ 500				$ 500
Debt instrument interest rate (as a percent) | Rate	[5]		3.65%			3.65%
Senior notes, due 2025
Long-term debt
Unsecured Debt			$ 500			$ 500
Debt instrument interest rate (as a percent) | Rate			0.75%			0.75%
Debentures, due 2027
Long-term debt
Unsecured Debt			$ 58			$ 58				58
Debt instrument interest rate (as a percent) | Rate			6.75%			6.75%
Debentures, due 2028
Long-term debt
Unsecured Debt			$ 250			$ 250				250
Debt instrument interest rate (as a percent) | Rate			7.125%			7.125%
Senior notes, due 2030
Long-term debt
Unsecured Debt			$ 850			$ 850
Debt instrument interest rate (as a percent) | Rate			1.50%			1.50%
Senior notes, due 2043
Long-term debt
Unsecured Debt			$ 500			$ 500				500
Debt instrument interest rate (as a percent) | Rate			4.875%			4.875%
Senior notes, due 2050
Long-term debt
Unsecured Debt			$ 650			$ 650
Debt instrument interest rate (as a percent) | Rate			2.60%			2.60%
Debentures, due 2098(2)
Long-term debt
Unsecured Debt	[6]		$ 165			$ 165				$ 165
Debt instrument interest rate (as a percent) | Rate	[6]		5.65%			5.65%
Effective interest rate (as a percent) | Rate			7.48%			7.48%
1-year revolving credit agreement
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity									$ 1,500			$ 1,500
[1]	(1) Loans payable consist primarily of notes payable to various domestic and international financial institutions. It is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate.
[2]	(2) The weighted-average interest rate, inclusive of all brokerage fees, was 0.03 percent at September 27, 2020. This includes $116 million of borrowings under the EUR program that were at a negative weighted-average interest rate of 0.27 percent and $200 million of borrowings under the U.S. program at a weighted-average rate of 0.20 percent.
[3]	(3) The weighted-average interest rate, inclusive of all brokerage fees, was 1.82 percent at December 31, 2019. All borrowings were at positive interest rates.
[4]	(1) The fair value of debt is derived from Level 2 inputs.
[5]	(1) In June and July 2020, we settled our February 2014 interest rate swap. See "Interest Rate Risk" below for additional information.
[6]	(2) The effective interest rate is 7.48%.

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Footnote Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 27, 2020	Sep. 29, 2019	Sep. 27, 2020	Sep. 29, 2019	Dec. 31, 2019
Product Warranties Disclosures [Abstract]
Balance, beginning of year			$ 2,389	$ 2,208
Provision for base warranties issued			277	360
Deferred revenue on extended warranty contracts sold			172	254
Provision for product campaigns issued			27	163
Payments made during period			(424)	(431)
Amortization of deferred revenue on extended warranty contracts			(169)	(174)
Changes in estimates for pre-existing product warranties			(41)	(16)
Foreign currency translation and other			(6)	(9)
Balance, end of period	$ 2,225	$ 2,355	2,225	2,355
Supplier recoveries	5	$ 3	16	$ 64
Product Warranty Liability
Current portion of warranty related deferred revenue	540		540		$ 533
Long term portion of warranty related deferred revenue	837		837		821
Deferred Revenue Related to extended coverage, Total	944		944		941
Current portion of accrued product warranty	646		646		803
Long-term portion of accrued product warranty	635		635		645
Standard Product Warranty Accrual	1,281		1,281		1,448
Current portion of deferred revenue
Product Warranty Liability
Current portion of warranty related deferred revenue	249		249		227
Deferred revenue
Product Warranty Liability
Long term portion of warranty related deferred revenue	695		695		714
Current portion of accrued product warranty
Product Warranty Liability
Current portion of accrued product warranty	646		646		803
Accrued product warranty
Product Warranty Liability
Long-term portion of accrued product warranty	$ 635		$ 635		$ 645

PRODUCT WARRANTY LIABILITY (D_2

PRODUCT WARRANTY LIABILITY (Details 2) Engine System Campaign - USD ($) $ in Millions	24 Months Ended
	Dec. 30, 2018	Sep. 27, 2020
Guarantees and Product Warranties [Abstract]
Provision for product campaigns issued	$ 410
Engine System Campaign Accrual, Present Value		$ 157

SUPPLEMENTAL BALANCE SHEET DA_3

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Sep. 27, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Marketing accruals	$ 220	$ 176
Other taxes payable	203	228
Current portion of operating lease liabilities	133	131
Income taxes payable	102	52
Other Accrued Liabilities, Current	332	452
Other accrued expenses	990	1,039
Operating lease liabilities	322	370
Deferred income taxes	301	306
One-time transition tax	293	293
Accrued compensation	185	206
Mark-to-market valuation on interest rate locks	81	12
Other Accrued Liabilities, Noncurrent	384	192
Other liabilities	$ 1,566	$ 1,379

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	3 Months Ended
	Sep. 27, 2020USD ($)
Guarantee Obligations
Guarantor obligations, maximum potential loss	$ 40
Long-term purchase commitment, penalty exposure	37
Total commitments under commodity contracts	30
Performance Bonds and Other Performance Guarantees	$ 94
Maximum
Guarantee Obligations
Forward Contract, Term	two years

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 27, 2020		Sep. 29, 2019		Sep. 27, 2020		Sep. 29, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period					$ (2,028)
Before tax amount	$ 134		$ (221)		(160)		$ (265)
Tax benefit (expense)	(5)		8		25		15
After tax amount	129		(213)		(135)		(250)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	16	[1]	8	[1]	44	[2]	15	[2]
Net current period other comprehensive income (loss)	145		(205)		(91)		(235)
Balance at the end of the period	(2,107)				(2,107)
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	(716)		(675)		(734)		(671)
Before tax amount	0		0		(19)		(22)
Tax benefit (expense)	0		0		5		5
After tax amount	0		0		(14)		(17)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	16	[1]	6	[1]	48	[2]	19	[2]
Net current period other comprehensive income (loss)	16		6		34		2
Balance at the end of the period	(700)		(669)		(700)		(669)
Foreign currency translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,436)		(1,156)		(1,285)		(1,138)
Before tax amount	101		(177)		(54)		(194)
Tax benefit (expense)	0		0		4		(1)
After tax amount	101		(177)		(50)		(195)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	[1]	0	[1]	0	[2]	0	[2]
Net current period other comprehensive income (loss)	101		(177)		(50)		(195)
Balance at the end of the period	(1,335)		(1,333)		(1,335)		(1,333)
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(90)		(9)		(9)		2
Before tax amount	23		(39)		(75)		(47)
Tax benefit (expense)	(5)		8		16		11
After tax amount	18		(31)		(59)		(36)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	[1]	2	[1]	(4)	[2]	(4)	[2]
Net current period other comprehensive income (loss)	18		(29)		(63)	[3]	(40)
Balance at the end of the period	(72)		(38)		(72)		(38)
Total attributable to Cummins Inc.
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(2,242)		(1,840)		(2,028)		(1,807)
Before tax amount	124		(216)		(148)		(263)
Tax benefit (expense)	(5)		8		25		15
After tax amount	119		(208)		(123)		(248)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	16	[1]	8	[1]	44	[2]	15	[2]
Net current period other comprehensive income (loss)	135		(200)		(79)		(233)
Balance at the end of the period	(2,107)		(2,040)		(2,107)		(2,040)
Noncontrolling interests
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Before tax amount	10		(5)		(12)		(2)
Tax benefit (expense)	0		0		0		0
After tax amount	10		(5)		(12)		(2)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	[1]	0	[1]	0	[2]
Net current period other comprehensive income (loss)	$ 10		$ (5)		$ (12)		$ (2)
[1]	(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]	(1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.
[3]	(2) Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 9 "DEBT" for additional information.

ACQUISITION (Details)

ACQUISITION (Details) - USD ($) $ in Millions	Sep. 09, 2019	Dec. 31, 2018	Sep. 27, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill			$ 1,288	$ 1,286
Hydrogenics Corporation
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	81.00%
Payments to Acquire Businesses, Gross	$ 235
Business Combination, Consideration Transferred	235
Goodwill	161
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	161
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period		$ 34
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	21
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	25
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	18
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(53)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	(42)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	291
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value	$ 56
Hydrogenics Corporation | L'Air Liquide, S.A.
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	19.00%
Technology-Based Intangible Assets | Hydrogenics Corporation
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 96
Customer Relationships | Hydrogenics Corporation
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	29
Intellectual Property | Hydrogenics Corporation
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	35
Other Intangible Assets | Hydrogenics Corporation
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 1
Minimum | Hydrogenics Corporation
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Minimum | Customer Relationships | Hydrogenics Corporation
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years
Maximum | Hydrogenics Corporation
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years
Amortization of Intangible Assets	$ 8
Maximum | Customer Relationships | Hydrogenics Corporation
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years

RESTRUCTURING ACTIONS AND OTH_3

RESTRUCTURING ACTIONS AND OTHER CHARGES (Details) $ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2019USD ($)employee	Sep. 27, 2020USD ($)	Sep. 29, 2019USD ($)
Restructuring and Related Activities [Abstract]
Severance Costs	$ 119
Restructuring Charges, Net of Tax	$ 90
Restructuring and Related Cost, Number of Positions Eliminated | employee	2,300
Restructuring Reserve, beginning of period		$ 116
Payments for Restructuring		(100)	$ 0
Restructuring Reserve, Accrual Adjustment		(6)
Restructuring Reserve, end of period	$ 116	$ 10

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 27, 2020		Sep. 29, 2019		Sep. 27, 2020		Sep. 29, 2019
Segment reporting
NET SALES (a) (Note 3)	[1]	$ 5,118		$ 5,768		$ 13,981		$ 17,993
Research, development and engineering expenses		224		242		651		730
Equity, royalty and interest income (loss) from investees		98		68		342		256
Interest income		4		14		15		38
EBITDA		876		958		2,271		3,049
Depreciation and amortization		165	[2]	177	[2]	497	[3]	491	[3]
Less: Interest expense		25		26		71		87
INCOME BEFORE INCOME TAXES		686		755		1,703		2,471
Amortization of Debt Discount (Premium)						2		2
Engine
Segment reporting
NET SALES (a) (Note 3)		2,112		2,416		5,693		7,772
Research, development and engineering expenses		72		79		217		245
Equity, royalty and interest income (loss) from investees		74		34		236		152
Interest income		1		5		6		13
EBITDA		382		341		897		1,195
Depreciation and amortization		51	[2]	50	[2]	155	[3]	151	[3]
Distribution
Segment reporting
NET SALES (a) (Note 3)		1,721		2,004		5,140		6,033
Research, development and engineering expenses		9		7		20		21
Equity, royalty and interest income (loss) from investees		13		12		45		35
Interest income		1		4		3		12
EBITDA		182		186		500		529
Depreciation and amortization		30	[2]	29	[2]	91	[3]	86	[3]
Components
Segment reporting
NET SALES (a) (Note 3)		1,541		1,650		4,193		5,357
Research, development and engineering expenses		64		73		187		223
Equity, royalty and interest income (loss) from investees		13		9		46		30
Interest income		1		2		3		6
EBITDA		261		286		681		908
Depreciation and amortization		47	[2]	67	[2]	142	[3]	160	[3]
Power Systems
Segment reporting
NET SALES (a) (Note 3)		981		1,126		2,642		3,406
Research, development and engineering expenses		53		58		148		171
Equity, royalty and interest income (loss) from investees		0		13		18		39
Interest income		1		3		3		7
EBITDA		101		158		269		469
Depreciation and amortization		32	[2]	29	[2]	96	[3]	88	[3]
New Power
Segment reporting
NET SALES (a) (Note 3)		18		9		38		20
Research, development and engineering expenses		26		25		79		70
Equity, royalty and interest income (loss) from investees		(2)		0		(3)		0
Interest income		0		0		0		0
EBITDA		(40)		(36)		(121)		(98)
Depreciation and amortization		5	[2]	2	[2]	13	[3]	6	[3]
Total Segments
Segment reporting
NET SALES (a) (Note 3)		6,373		7,205		17,706		22,588
Research, development and engineering expenses		224		242		651		730
Equity, royalty and interest income (loss) from investees		98		68		342		256
Interest income		4		14		15		38
EBITDA		886		935		2,226		3,003
Depreciation and amortization		165	[2]	177	[2]	497	[3]	491	[3]
Intersegment Eliminations
Segment reporting
NET SALES (a) (Note 3)		(1,255)	[4]	(1,437)	[4]	(3,725)	[5]	(4,595)	[5]
Non-segment items
Segment reporting
EBITDA		(10)	[4]	23	[4]	45	[5]	46	[5]
External Sales
Segment reporting
NET SALES (a) (Note 3)		5,118		5,768		13,981		17,993
External Sales | Engine
Segment reporting
NET SALES (a) (Note 3)		1,617		1,822		4,133		5,879
External Sales | Distribution
Segment reporting
NET SALES (a) (Note 3)		1,715		2,001		5,123		6,009
External Sales | Components
Segment reporting
NET SALES (a) (Note 3)		1,201		1,253		3,192		4,055
External Sales | Power Systems
Segment reporting
NET SALES (a) (Note 3)		567		683		1,495		2,030
External Sales | New Power
Segment reporting
NET SALES (a) (Note 3)		18		9		38		20
External Sales | Total Segments
Segment reporting
NET SALES (a) (Note 3)		5,118		5,768		13,981		17,993
Intersegment sales | Engine
Segment reporting
NET SALES (a) (Note 3)		495		594		1,560		1,893
Intersegment sales | Distribution
Segment reporting
NET SALES (a) (Note 3)		6		3		17		24
Intersegment sales | Components
Segment reporting
NET SALES (a) (Note 3)		340		397		1,001		1,302
Intersegment sales | Power Systems
Segment reporting
NET SALES (a) (Note 3)		414		443		1,147		1,376
Intersegment sales | New Power
Segment reporting
NET SALES (a) (Note 3)		0		0		0		0
Intersegment sales | Total Segments
Segment reporting
NET SALES (a) (Note 3)		1,255		1,437		3,725		4,595
Intersegment sales | Intersegment Eliminations
Segment reporting
NET SALES (a) (Note 3)		$ (1,255)	[4]	$ (1,437)	[4]	$ (3,725)	[5]	$ (4,595)	[5]
[1]	(a) Includes sales to nonconsolidated equity investees of $311 million and $906 million for the three and nine months ended September 27, 2020, compared with $280 million and $882 million for the comparable periods in 2019.
[2]	(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]	(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 $2 million and $2 million for the nine months ended September 27, 2020 and September 29, 2019, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
[4]	(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 September 27, 2020 and September 29, 2019.
[5]	(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended September 27, 2020 and September 29, 2019.

RECENTLY ADOPTED AND RECENTLY_2

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 27, 2020	Jun. 28, 2020	Dec. 31, 2019	Sep. 29, 2019	Jun. 30, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total equity	$ 8,641	$ 8,130	$ 8,465	$ 8,753	$ 9,196	$ 8,259
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total equity			$ (4)
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 Financial Accounting Standards Board (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. We adopted the standard on January 1, 2020, on a prospective basis as allowed by the standard. The adoption is not expected to have a material impact on our Condensed Consolidated Financial Statements.
ASU 2016-13 Measurement of Credit Losses on Financial Instruments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description	On January 1, 2020, we adopted the new FASB standard related to accounting for credit losses on financial instruments. This standard introduces new guidance for accounting for credit losses on instruments including trade receivables and held-to-maturity debt securities. The standard requires entities to record a cumulative effect adjustment to the statement of financial position. We recorded a net decrease to opening retained earnings of $4 million, net of tax, as of January 1, 2020, due to the cumulative impact of adopting the new standard. The impact to any individual financial statement line item as a result of applying the new standard, as compared to the old standard, was not material for the nine months ended September 27, 2020.
ASU 2020-04 Reference Rate Reform
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description	In March 2020, the FASB amended its standard to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendment allows entities to elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. These expedients would apply to interest rate locks. The guidance was effective upon issuance and expires after December 31, 2022. The amendment did not have an effect on our Condensed Consolidated Financial Statements at September 27, 2020. We are still evaluating which contracts will be impacted by reference rate reform, but the expedients will allow us to make permitted changes prior to the expiration of the amendments without resulting in an impact to our Consolidated Financial Statements.