Cummins (CMI) 10-Q 2 Nov 21 2021 Q3 Quarterly report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document	9 Months Ended
	Oct. 03, 2021$ / sharesshares
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Oct. 3, 2021
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	143,031,848
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	2021
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
		Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Income Statement [Abstract]
NET SALES (a) (Note 2)	[1]	$ 5,968	$ 5,118	$ 18,171	$ 13,981
Cost of sales		4,554	3,769	13,793	10,448
GROSS MARGIN		1,414	1,349	4,378	3,533
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses		571	533	1,745	1,549
Research, development and engineering expenses		266	224	802	651
Equity, royalty and interest income from investees (Note 4)		94	98	397	342
Other operating expense, net		(5)	(20)	(17)	(35)
OPERATING INCOME		666	670	2,211	1,640
Interest expense		28	25	85	71
Other income, net		37	41	111	134
INCOME BEFORE INCOME TAXES		675	686	2,237	1,703
Income tax expense (Note 5)		134	182	473	402
CONSOLIDATED NET INCOME		541	504	1,764	1,301
Less: Net income attributable to noncontrolling interests		7	3	27	13
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$ 534	$ 501	$ 1,737	$ 1,288
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic (in dollars per share)		$ 3.72	$ 3.39	$ 11.96	$ 8.69
Diluted (in dollars per share)		$ 3.69	$ 3.36	$ 11.86	$ 8.65
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		143.5	147.9	145.2	148.3
Dilutive effect of stock compensation awards (in shares)		1.2	1	1.3	0.6
Diluted (in shares)		144.7	148.9	146.5	148.9
Revenue from Related Parties	[1]	$ 385	$ 311	$ 1,286	$ 906
[1]	(a) Includes sales to nonconsolidated equity investees of $385 million and $1,286 million for the three and nine months ended October 3, 2021, compared with $311 million and $906 million for the comparable periods in 2020.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$ 541	$ 504	$ 1,764	$ 1,301
Other comprehensive income (loss), net of tax (Note 12)
Change in pension and other postretirement defined benefit plans	17	16	63	34
Foreign currency translation adjustments	0	111	(34)	(62)
Unrealized gain (loss) on derivatives	3	18	37	(63)
Total other comprehensive income (loss), net of tax	20	145	66	(91)
COMPREHENSIVE INCOME	561	649	1,830	1,210
Less: Comprehensive income attributable to noncontrolling interests	9	13	22	1
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 552	$ 636	$ 1,808	$ 1,209

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions	Oct. 03, 2021	Dec. 31, 2020
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	79.4	74.8
Current assets
Cash and cash equivalents	$ 2,588	$ 3,401
Marketable securities	430	461
Total cash, cash equivalents and marketable securities	3,018	3,862
Accounts and notes receivable, net
Trade and other	3,752	3,440
Nonconsolidated equity investees	400	380
Inventories (Note 7)	4,322	3,425
Prepaid expenses and other current assets	828	790
Total current assets	12,320	11,897
Long-term assets
Property, plant and equipment	9,156	9,011
Accumulated depreciation	(4,971)	(4,756)
Property, plant and equipment, net	4,185	4,255
Investments and advances related to equity method investees (Note 4)	1,543	1,441
Goodwill	1,289	1,293
Other intangible assets, net	921	963
Pension assets (Note 3)	1,100	1,042
Other assets (Note 8)	1,705	1,733
Total assets	23,063	22,624
Current liabilities
Accounts payable (principally trade)	3,210	2,820
Loans payable (Note 9)	85	169
Commercial paper (Note 9)	200	323
Accrued compensation, benefits and retirement costs	626	484
Current portion of accrued product warranty (Note 10)	694	674
Current portion of deferred revenue (Note 2)	806	691
Other accrued expenses (Note 8)	1,185	1,112
Current maturities of long-term debt (Note 9)	55	62
Total current liabilities	6,861	6,335
Long-term liabilities
Long-term debt (Note 9)	3,602	3,610
Pensions and other postretirement benefits (Note 3)	623	630
Accrued product warranty (Note 10)	703	672
Deferred revenue (Note 2)	836	840
Other liabilities (Note 8)	1,435	1,548
Total liabilities	14,060	13,635
Commitments and contingencies (Note 11)
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.4 shares issued	2,412	2,404
Retained earnings	16,555	15,419
Treasury stock, at cost, 79.4 and 74.8 shares	(8,974)	(7,779)
Accumulated other comprehensive loss (Note 12)	(1,911)	(1,982)
Total Cummins Inc. shareholders' equity	8,082	8,062
Noncontrolling interests	921	927
Total equity	9,003	8,989
Total liabilities and equity	$ 23,063	$ 22,624

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 1,764	$ 1,301
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	497	499
Deferred income taxes	44	(7)
Equity in income of investees, net of dividends	(150)	(136)
Pension and OPEB expense (Note 3)	62	81
Pension contributions and OPEB payments (Note 3)	(86)	(102)
Share-based compensation expense	25	22
Restructuring payments	(1)	(100)
Loss (gain) on corporate owned life insurance	11	(50)
Foreign currency remeasurement and transaction exposure	27	(7)
Changes in current assets and liabilities
Accounts and notes receivable	(353)	47
Inventories	(919)	(50)
Other current assets	(45)	73
Accounts payable	416	109
Accrued expenses	435	(236)
Changes in other liabilities	(59)	208
Other, net	(144)	(72)
Net cash provided by operating activities	1,524	1,580
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(362)	(268)
Investments in internal use software	(36)	(33)
Proceeds from sale of land	20	0
Investments in and advances to equity investees	3	(30)
Investments in marketable securities—acquisitions	(569)	(422)
Investments in marketable securities—liquidations (Note 6)	602	408
Cash flows from derivatives not designated as hedges	19	(15)
Other, net	45	23
Net cash used in investing activities	(278)	(337)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	35	1,999
Net payments of commercial paper	(123)	(344)
Payments on borrowings and finance lease obligations	(57)	(41)
Net (payments) borrowings under short-term credit agreements	(93)	6
Distributions to noncontrolling interests	(28)	(26)
Dividend payments on common stock	(601)	(582)
Repurchases of common stock	(1,228)	(550)
Proceeds from issuing common stock	27	78
Other, net	(11)	24
Net cash (used in) provided by financing activities	(2,079)	564
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	20	31
Net (decrease) increase in cash and cash equivalents	(813)	1,838
Cash and cash equivalents at beginning of year	3,401	1,129
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 2,588	$ 2,967

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)	$ 3.933
BALANCE AT BEGINNING 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
CONSOLIDATED NET INCOME	1,301				1,288					1,288		13
Other comprehensive income (loss), net of tax (Note 12)	(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)
Share-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 (loss), net of tax (Note 12)	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)
Share-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
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 4.15
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2020	$ 8,989		556	1,848	15,419		(7,779)	0	(1,982)	8,062		927
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	1,764				1,737					1,737		27
Other comprehensive income (loss), net of tax (Note 12)	66								71	71		(5)
Issuance of common stock	1			1						1
Repurchases of common stock	(1,228)						(1,228)			(1,228)
Cash dividends on common stock	(601)				(601)					(601)
Distributions to noncontrolling interests	(28)											(28)
Share-based awards	27			(4)			31			27
Other shareholder transactions	13			11			2			13		0
BALANCE AT END OF PERIOD at Oct. 03, 2021	$ 9,003		556	1,856	16,555		(8,974)	0	(1,911)	8,082		921
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.45
BALANCE AT BEGINNING OF PERIOD at Jul. 04, 2021	$ 8,793		556	1,849	16,228		(8,838)	0	(1,929)	7,866		927
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	541				534					534		7
Other comprehensive income (loss), net of tax (Note 12)	20								18	18		2
Repurchases of common stock	(138)						(138)			(138)
Cash dividends on common stock	(207)				(207)					(207)
Distributions to noncontrolling interests	(15)											(15)
Share-based awards	1						1			1
Other shareholder transactions	8			7			1			8		0
BALANCE AT END OF PERIOD at Oct. 03, 2021	$ 9,003		$ 556	$ 1,856	$ 16,555		$ (8,974)	$ 0	$ (1,911)	$ 8,082		$ 921

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	9 Months Ended
	Oct. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Overview 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 production 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 over 500 wholly-owned, joint venture and independent distributor locations and over 9,000 Cummins certified dealer locations with service to approximately 190 countries and territories. 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 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, 2020 . 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 required annual disclosures. Reclassifications Certain amounts for prior year periods were reclassified to conform to the current year presentation. Use of Estimates in Preparation of Financial Statements Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Condensed Consolidated Financial Statements . Significant estimates and assumptions in these Condensed Consolidated Financial Statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Reporting Period Our reporting period usually ends on the Sunday closest to the last day of the quarterly calendar period. The third quarters of 2021 and 2020 ended on October 3 and September 27, 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 October 3, September 27, October 3, September 27, Options excluded 7,813 2,405 4,577 858,651

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	9 Months Ended
	Oct. 03, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Long-term Contracts The majority 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 were not satisfied as of October 3, 2021, was $774 million. We expect to recognize the related revenue of $134 million over the next 12 months and $640 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 October 3, December 31, Unbilled revenue $ 104 $ 114 Deferred revenue, primarily extended warranty 1,642 1,531 We recognized revenue of $130 million and $410 million for the three and nine months ended October 3, 2021, compared with $84 million and $290 million for the comparable periods in 2020, 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 October 3, 2021 or September 27, 2020. 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 October 3, September 27, October 3, September 27, United States $ 3,177 $ 2,805 $ 9,500 $ 7,522 China 679 705 2,468 2,037 India 294 166 841 406 Other international 1,818 1,442 5,362 4,016 Total net sales $ 5,968 $ 5,118 $ 18,171 $ 13,981 Segment Revenue Engine segment external sales by market were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Heavy-duty truck $ 662 $ 486 $ 1,941 $ 1,226 Medium-duty truck and bus 501 389 1,461 1,177 Light-duty automotive 492 502 1,432 975 Total on-highway 1,655 1,377 4,834 3,378 Off-highway 306 240 942 755 Total sales $ 1,961 $ 1,617 $ 5,776 $ 4,133 Distribution segment external sales by region were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, North America $ 1,237 $ 1,126 $ 3,631 $ 3,409 Asia Pacific 236 195 675 577 Europe 143 153 467 424 Russia 86 41 209 126 China 80 74 239 242 Africa and Middle East 74 47 197 136 India 48 42 138 101 Latin America 48 37 136 108 Total sales $ 1,952 $ 1,715 $ 5,692 $ 5,123 Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Parts $ 796 $ 719 $ 2,313 $ 2,155 Power generation 437 415 1,305 1,166 Engines 376 278 1,058 876 Service 343 303 1,016 926 Total sales $ 1,952 $ 1,715 $ 5,692 $ 5,123 Components segment external sales by business were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Emission solutions $ 699 $ 612 $ 2,466 $ 1,576 Filtration 288 260 892 715 Turbo technologies 177 163 609 463 Automated transmissions 112 90 374 215 Electronics and fuel systems 71 76 286 223 Total sales $ 1,347 $ 1,201 $ 4,627 $ 3,192 Power Systems segment external sales by product line were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Power generation $ 395 $ 334 $ 1,127 $ 827 Industrial 209 167 621 477 Generator technologies 84 66 251 191 Total sales $ 688 $ 567 $ 1,999 $ 1,495

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES	9 Months Ended
	Oct. 03, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Long-term Contracts The majority 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 were not satisfied as of October 3, 2021, was $774 million. We expect to recognize the related revenue of $134 million over the next 12 months and $640 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 October 3, December 31, Unbilled revenue $ 104 $ 114 Deferred revenue, primarily extended warranty 1,642 1,531 We recognized revenue of $130 million and $410 million for the three and nine months ended October 3, 2021, compared with $84 million and $290 million for the comparable periods in 2020, 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 October 3, 2021 or September 27, 2020. 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 October 3, September 27, October 3, September 27, United States $ 3,177 $ 2,805 $ 9,500 $ 7,522 China 679 705 2,468 2,037 India 294 166 841 406 Other international 1,818 1,442 5,362 4,016 Total net sales $ 5,968 $ 5,118 $ 18,171 $ 13,981 Segment Revenue Engine segment external sales by market were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Heavy-duty truck $ 662 $ 486 $ 1,941 $ 1,226 Medium-duty truck and bus 501 389 1,461 1,177 Light-duty automotive 492 502 1,432 975 Total on-highway 1,655 1,377 4,834 3,378 Off-highway 306 240 942 755 Total sales $ 1,961 $ 1,617 $ 5,776 $ 4,133 Distribution segment external sales by region were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, North America $ 1,237 $ 1,126 $ 3,631 $ 3,409 Asia Pacific 236 195 675 577 Europe 143 153 467 424 Russia 86 41 209 126 China 80 74 239 242 Africa and Middle East 74 47 197 136 India 48 42 138 101 Latin America 48 37 136 108 Total sales $ 1,952 $ 1,715 $ 5,692 $ 5,123 Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Parts $ 796 $ 719 $ 2,313 $ 2,155 Power generation 437 415 1,305 1,166 Engines 376 278 1,058 876 Service 343 303 1,016 926 Total sales $ 1,952 $ 1,715 $ 5,692 $ 5,123 Components segment external sales by business were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Emission solutions $ 699 $ 612 $ 2,466 $ 1,576 Filtration 288 260 892 715 Turbo technologies 177 163 609 463 Automated transmissions 112 90 374 215 Electronics and fuel systems 71 76 286 223 Total sales $ 1,347 $ 1,201 $ 4,627 $ 3,192 Power Systems segment external sales by product line were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Power generation $ 395 $ 334 $ 1,127 $ 827 Industrial 209 167 621 477 Generator technologies 84 66 251 191 Total sales $ 688 $ 567 $ 1,999 $ 1,495

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	9 Months Ended
	Oct. 03, 2021
Retirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	NOTE 3. 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 October 3, September 27, October 3, September 27, Defined benefit pension contributions $ 13 $ 11 $ 67 $ 77 OPEB payments, net 5 9 19 25 Defined contribution pension plans 20 18 72 70 During the remainder of 2021, we anticipate making $6 million in additional defined benefit pension contributions in the U.K. and $4 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 2021 annual net periodic pension cost to approximate $79 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 October 3, September 27, October 3, September 27, October 3, September 27, Service cost $ 35 $ 33 $ 8 $ 8 $ — $ — Interest cost 20 24 8 8 1 2 Expected return on plan assets (49) (49) (22) (19) — — Amortization of prior service cost — — 1 1 — — Recognized net actuarial loss 11 10 8 9 — — Net periodic benefit cost $ 17 $ 18 $ 3 $ 7 $ 1 $ 2 Pension U.S. Plans U.K. Plans OPEB Nine months ended In millions October 3, September 27, October 3, September 27, October 3, September 27, Service cost $ 105 $ 100 $ 25 $ 22 $ — $ — Interest cost 59 71 23 26 3 5 Expected return on plan assets (149) (146) (65) (56) — — Amortization of prior service cost — 1 2 2 — — Recognized net actuarial loss 35 30 24 26 — — Net periodic benefit cost $ 50 $ 56 $ 9 $ 20 $ 3 $ 5

EQUITY, ROYALTY AND INTEREST IN

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	9 Months Ended
	Oct. 03, 2021
Equity Method Investments and Joint Ventures [Abstract]
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	NOTE 4. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 23 $ 30 $ 108 $ 81 Dongfeng Cummins Engine Company, Ltd. 11 20 63 54 Chongqing Cummins Engine Company, Ltd. 8 7 28 27 All other manufacturers 27 22 (1) 117 100 (1)(2) Distribution entities Komatsu Cummins Chile, Ltda. 8 6 23 23 All other distributors 2 1 6 1 Cummins share of net income 79 86 345 286 Royalty and interest income 15 12 52 56 Equity, royalty and interest income from investees $ 94 $ 98 $ 397 $ 342 (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 favorable adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Oct. 03, 2021
Income Tax Disclosure [Abstract]
Income Tax Disclosure	NOTE 5. INCOME TAXES Our effective tax rates for the three and nine months ended October 3, 2021, were 19.9 percent and 21.1 percent, respectively. 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 October 3, 2021, contained favorable discrete items of $11 million, primarily due to a $16 million favorable release of tax reserves associated with the settlement of tax positions, partially offset by $5 million of unfavorable return to provision adjustments. The nine months ended October 3, 2021, contained favorable discrete items of $8 million, primarily due to an $18 million favorable release of tax reserves associated with the settlement of tax positions, partially offset by $10 million of unfavorable statutory changes in tax rates, mostly in the U.K. The three months ended September 27, 2020, contained unfavorable discrete items of $31 million, primarily due to $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 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 due to the India Tax Law Change passed in March of 2020. See Note 4, "INCOME TAXES," of the Notes to the Consolidated Financial Statements of our 2020 Form 10-K for additional information on India Tax Law Changes.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	9 Months Ended
	Oct. 03, 2021
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 6. MARKETABLE SECURITIES A summary of marketable securities, all of which were classified as current, was as follows: October 3, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 196 $ 2 $ 198 $ 267 $ 5 $ 272 Certificates of deposit 200 — 200 164 — 164 Equity mutual funds 22 9 31 19 5 24 Debt securities 1 — 1 1 — 1 Total marketable securities $ 419 $ 11 $ 430 $ 451 $ 10 $ 461 (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 October 3, 2021, or the year ended December 31, 2020. 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 measure. • Certificates of deposit — These investments provide us with a contractual rate of return and generally range in maturity from three months to five years. The counterparties to these investments are reputable financial institutions with investment grade credit ratings. Since these instruments are not tradable and must be settled directly by us with the respective financial institution, our fair value measure is the financial institution's month-end statement. • Equity mutual funds — The fair value 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 October 3, September 27, Proceeds from sales of marketable securities $ 428 $ 283 Proceeds from maturities of marketable securities 174 125 Investments in marketable securities - liquidations $ 602 $ 408

INVENTORIES

INVENTORIES	9 Months Ended
	Oct. 03, 2021
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 7. INVENTORIES Inventories are stated at the lower of cost or net realizable value. Inventories included the following: In millions October 3, December 31, Finished products $ 2,494 $ 2,216 Work-in-process and raw materials 1,998 1,346 Inventories at FIFO cost 4,492 3,562 Excess of FIFO over LIFO (170) (137) Total inventories $ 4,322 $ 3,425

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA	9 Months Ended
	Oct. 03, 2021
Balance Sheet Related Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET DATA	NOTE 8. SUPPLEMENTAL BALANCE SHEET DATA Other assets included the following: In millions October 3, December 31, Corporate owned life insurance $ 482 $ 508 Operating lease assets 455 438 Deferred income taxes 411 479 Other 357 308 Other assets $ 1,705 $ 1,733 Other accrued expenses included the following: In millions October 3, December 31, Marketing accruals $ 290 $ 242 Other taxes payable 268 256 Current portion of operating lease liabilities 127 128 Income taxes payable 92 82 Other 408 404 Other accrued expenses $ 1,185 $ 1,112 Other liabilities included the following: In millions October 3, December 31, Operating lease liabilities $ 327 $ 325 Deferred income taxes 327 325 One-time transition tax 255 289 Accrued compensation 201 203 Mark-to-market valuation on interest rate locks 5 41 Other long-term liabilities 320 365 Other liabilities $ 1,435 $ 1,548

DEBT

DEBT	9 Months Ended
	Oct. 03, 2021
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 October 3, December 31, Loans payable (1) $ 85 $ 169 Commercial paper 200 (2) 323 (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 0.14 percent at October 3, 2021 and included $200 million of borrowings under the U.S. program. (3) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2020 and included $123 million of borrowings under the Europe program that were negative 0.34 percent and $200 million of borrowings under the U.S. program at 0.19 percent. 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. Revolving Credit Facilities On August 18, 2021, we entered into an amended and restated 5-year revolving credit agreement with a syndicate of lenders. The amended and restated credit agreement provides us with a $2 billion senior unsecured revolving credit facility until August 18, 2026. This credit agreement replaces the prior $2 billion 5-year credit agreement that would have matured on August 22, 2023. Amounts payable under our revolving credit facility will rank pro rata with all of our unsecured, unsubordinated indebtedness. Up to $300 million under this credit facility is available for swingline loans. Based on our current long-term debt ratings, the applicable margin on LIBOR rate loans was 0.75 percent per annum as of October 3, 2021. Advances under the facility may be prepaid without premium or penalty, subject to customary breakage costs. On August 18, 2021, 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 17, 2022. This credit agreement amended and restated the prior $1.5 billion 364-day credit facility that matured on August 18, 2021. Both credit agreements include various covenants, including, among others, maintaining a net debt to total capital ratio of no more than 0.65 to 1.0. At October 3, 2021, we were in compliance with these covenants. These revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings and for general corporate purposes. We intend to maintain credit facilities at the current or higher aggregate amounts by renewing or replacing these facilities at or before expiration. There were no outstanding borrowings under these facilities at October 3, 2021 and December 31, 2020. At October 3, 2021, the $200 million of outstanding commercial paper effectively reduced the $3.5 billion of revolving credit capacity to $3.3 billion. At October 3, 2021, we also had an additional $268 million available for borrowings under our international and other domestic credit facilities. Long-term Debt A summary of long-term debt was as follows: In millions Interest Rate October 3, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 Senior notes, due 2025 (1) 0.75% 500 500 Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 1.50% 850 850 Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 650 Debentures, due 2098 (2) 5.65% 165 165 Other debt 124 132 Unamortized discount and deferred issuance costs (68) (72) Fair value adjustments due to hedge on indebtedness 39 48 Finance leases 89 91 Total long-term debt 3,657 3,672 Less: Current maturities of long-term debt 55 62 Long-term debt $ 3,602 $ 3,610 (1) In the third quarter of 2021, we entered into a series of interest rate swaps to effectively convert from a fixed rate to floating rate. 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 2021 2022 2023 2024 2025 Principal payments $ 16 $ 58 $ 536 $ 31 $ 507 Interest Rate Risk In the third quarter of 2021, we entered into a series of interest rate swaps to effectively convert $400 million of our August 2020, $500 million senior notes, due in 2025, from a fixed rate of 0.75 percent to a floating rate equal to LIBOR plus a spread. The swaps were designated, and will be accounted for, as fair value hedges. The gain or loss on these derivative instruments, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current income as "Interest expense." The net swap settlements that accrue each period are also reported in the Condensed Consolidated Financial Statements as "Interest expense." The loss on the interest rate swaps was less than $1 million and the offsetting gain on borrowing was less than $1 million for the three and nine month periods ended October 3, 2021. We have 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. The following table summarizes the gains and (losses), net of tax, recognized in "Other comprehensive income": In millions Three months ended Nine months ended Type of Swap October 3, September 27, October 3, September 27, Interest rate locks $ — $ 17 $ 28 $ (52) 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 October 3, December 31, Fair value of total debt (1) $ 4,285 $ 4,665 Carrying value of total debt 3,942 4,164 (1) The fair value of debt is derived from Level 2 input measures.

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	9 Months Ended
	Oct. 03, 2021
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 October 3, September 27, Balance, beginning of year $ 2,307 $ 2,389 Provision for base warranties issued 431 277 Deferred revenue on extended warranty contracts sold 210 172 Provision for product campaigns issued 162 27 Payments made during period (409) (424) Amortization of deferred revenue on extended warranty contracts (191) (169) Changes in estimates for pre-existing product warranties (131) (41) Foreign currency translation and other (4) (6) Balance, end of period $ 2,375 $ 2,225 We recognized supplier recoveries of $88 million and $97 million for the three and nine months ended October 3, 2021, compared with $5 million and $16 million for the comparable periods in 2020. Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions October 3, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 283 $ 261 Current portion of deferred revenue Long-term portion 695 700 Deferred revenue Total $ 978 $ 961 Product warranty Current portion $ 694 $ 674 Current portion of accrued product warranty Long-term portion 703 672 Accrued product warranty Total $ 1,397 $ 1,346 Total warranty accrual $ 2,375 $ 2,307 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. In the fourth quarter of 2020, we recorded an additional $20 million charge related to this campaign, as a change in estimate, to bring the total campaign, excluding supplier recoveries, to $430 million. At October 3, 2021, the remaining accrual balance was $94 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Oct. 03, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11. COMMITMENTS AND CONTINGENCIES Legal Proceedings 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 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 worked cooperatively with them to ensure a complete and thorough review. We fully cooperated with the DOJ's and the SEC's information requests and inquiries and, based on communications with these agencies, we do not expect further inquiries. 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 ongoing discussions, the regulators turned their attention to other model years and other engines, most notably our pick-up truck applications for RAM 2500 and 3500 trucks for model years 2013 through 2018. Due to the continuing nature of our formal review, our ongoing cooperation with our regulators and the presence of many unknown facts and circumstances, we cannot predict the final outcome of this review and these regulatory processes, nor whether, or the extent to which, they could have a material 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 October 3, 2021, the maximum potential loss related to these guarantees was $49 million. We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At October 3, 2021, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $90 million. These arrangements enable us to secure supplies of critical components and IT services. 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 October 3, 2021, the total commitments under these contracts were $54 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 $105 million at October 3, 2021. 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
	Oct. 03, 2021
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 12. 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 pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) Other comprehensive income before reclassifications Before-tax amount 1 (2) 5 4 $ 2 $ 6 Tax expense (1) — (3) (4) — (4) After-tax amount — (2) 2 — 2 2 Amounts reclassified from accumulated other comprehensive income (loss) (1) 17 — 1 18 — 18 Net current period other comprehensive income (loss) 17 (2) 3 18 $ 2 $ 20 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) 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 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 16 101 18 135 $ 10 $ 145 Balance at September 27, 2020 $ (700) $ (1,335) $ (72) $ (2,107) (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 pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income before reclassifications Before-tax amount 16 (33) 53 36 $ (5) $ 31 Tax (expense) benefit (3) 4 (16) (15) — (15) After-tax amount 13 (29) 37 21 (5) 16 Amounts reclassified from accumulated other comprehensive income (loss) (1) 50 — — 50 — 50 Net current period other comprehensive income (loss) 63 (29) 37 (2) 71 $ (5) $ 66 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) Balance at December 31, 2019 $ (734) $ (1,285) $ (9) $ (2,028) Other comprehensive income before reclassifications Before-tax amount (19) (54) (75) (148) $ (12) $ (160) Tax benefit 5 4 16 25 — 25 After-tax amount (14) (50) (59) (123) (12) (135) Amounts reclassified from accumulated other comprehensive income (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) (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.

OPERATING SEGMENTS

OPERATING SEGMENTS	9 Months Ended
	Oct. 03, 2021
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 13. 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 hydrogen production solutions as well as electrified power systems ranging from fully electric to hybrid along with innovative components and subsystems, including battery and fuel cell 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 segment earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests (EBITDA) 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 Three months ended October 3, 2021 External sales $ 1,961 $ 1,952 $ 1,347 $ 688 $ 20 $ 5,968 Intersegment sales 617 7 446 476 3 1,549 Total sales 2,578 1,959 1,793 1,164 23 7,517 Research, development and engineering expenses 97 10 78 55 26 266 Equity, royalty and interest income (loss) from investees 61 15 10 11 (3) 94 Interest income 3 2 1 1 — 7 EBITDA 391 192 253 134 (58) 912 Depreciation and amortization (1) 53 28 44 29 5 159 Three months ended September 27, 2020 External sales $ 1,617 $ 1,715 $ 1,201 $ 567 $ 18 $ 5,118 Intersegment sales 495 6 340 414 — 1,255 Total sales 2,112 1,721 1,541 981 18 6,373 Research, development and engineering expenses 72 9 64 53 26 224 Equity, royalty and interest income (loss) from investees 74 13 13 — (2) 98 Interest income 1 1 1 1 — 4 EBITDA 382 182 261 101 (40) 886 Depreciation and amortization (1) 51 30 47 32 5 165 (1) 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 Nine months ended October 3, 2021 External sales $ 5,776 $ 5,692 $ 4,627 $ 1,999 $ 77 $ 18,171 Intersegment sales 1,752 22 1,312 1,330 5 4,421 Total sales 7,528 5,714 5,939 3,329 82 22,592 Research, development and engineering expenses 288 35 232 172 75 802 Equity, royalty and interest income (loss) from investees 278 47 41 32 (1) 397 Interest income 7 5 3 3 — 18 EBITDA 1,147 553 975 399 (169) 2,905 Depreciation and amortization (1) 154 88 138 97 17 494 Nine months ended September 27, 2020 External sales $ 4,133 $ 5,123 $ 3,192 $ 1,495 $ 38 $ 13,981 Intersegment sales 1,560 17 1,001 1,147 — 3,725 Total sales 5,693 5,140 4,193 2,642 38 17,706 Research, development and engineering expenses 217 20 187 148 79 651 Equity, royalty and interest income (loss) from investees 236 45 46 18 (3) 342 Interest income 6 3 3 3 — 15 EBITDA 897 500 681 269 (121) 2,226 Depreciation and amortization (1) 155 91 142 96 13 497 (1) 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 $3 million and $2 million for the nine months ended October 3, 2021 and September 27, 2020, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses." A reconciliation of our total segment sales to total net sales in the Condensed Consolidated Statements of Net Income was as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Total segment sales $ 7,517 $ 6,373 $ 22,592 $ 17,706 Elimination of intersegment sales (1,549) (1,255) (4,421) (3,725) Total net sales $ 5,968 $ 5,118 $ 18,171 $ 13,981 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 October 3, September 27, October 3, September 27, TOTAL SEGMENT EBITDA $ 912 $ 886 $ 2,905 $ 2,226 Intersegment elimination (50) (10) (89) 45 Less: Interest expense 28 25 85 71 Depreciation and amortization 159 165 494 497 INCOME BEFORE INCOME TAXES 675 686 2,237 1,703 Less: Income tax expense 134 182 473 402 CONSOLIDATED NET INCOME 541 504 1,764 1,301 Less: Net income attributable to noncontrolling interests 7 3 27 13 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 534 $ 501 $ 1,737 $ 1,288

NATURE OF OPERATIONS AND BASI_2

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Tables)	9 Months Ended
	Oct. 03, 2021
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 October 3, September 27, October 3, September 27, Options excluded 7,813 2,405 4,577 858,651

REVENUE RECOGNITION LONGTERM CO

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	9 Months Ended
	Oct. 03, 2021
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 October 3, December 31, Unbilled revenue $ 104 $ 114 Deferred revenue, primarily extended warranty 1,642 1,531

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	9 Months Ended
	Oct. 03, 2021
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 October 3, September 27, October 3, September 27, United States $ 3,177 $ 2,805 $ 9,500 $ 7,522 China 679 705 2,468 2,037 India 294 166 841 406 Other international 1,818 1,442 5,362 4,016 Total net sales $ 5,968 $ 5,118 $ 18,171 $ 13,981
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 October 3, September 27, October 3, September 27, Heavy-duty truck $ 662 $ 486 $ 1,941 $ 1,226 Medium-duty truck and bus 501 389 1,461 1,177 Light-duty automotive 492 502 1,432 975 Total on-highway 1,655 1,377 4,834 3,378 Off-highway 306 240 942 755 Total sales $ 1,961 $ 1,617 $ 5,776 $ 4,133
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 October 3, September 27, October 3, September 27, North America $ 1,237 $ 1,126 $ 3,631 $ 3,409 Asia Pacific 236 195 675 577 Europe 143 153 467 424 Russia 86 41 209 126 China 80 74 239 242 Africa and Middle East 74 47 197 136 India 48 42 138 101 Latin America 48 37 136 108 Total sales $ 1,952 $ 1,715 $ 5,692 $ 5,123
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 October 3, September 27, October 3, September 27, Parts $ 796 $ 719 $ 2,313 $ 2,155 Power generation 437 415 1,305 1,166 Engines 376 278 1,058 876 Service 343 303 1,016 926 Total sales $ 1,952 $ 1,715 $ 5,692 $ 5,123
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 October 3, September 27, October 3, September 27, Emission solutions $ 699 $ 612 $ 2,466 $ 1,576 Filtration 288 260 892 715 Turbo technologies 177 163 609 463 Automated transmissions 112 90 374 215 Electronics and fuel systems 71 76 286 223 Total sales $ 1,347 $ 1,201 $ 4,627 $ 3,192
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 October 3, September 27, October 3, September 27, Power generation $ 395 $ 334 $ 1,127 $ 827 Industrial 209 167 621 477 Generator technologies 84 66 251 191 Total sales $ 688 $ 567 $ 1,999 $ 1,495

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	9 Months Ended
	Oct. 03, 2021
Retirement Benefits [Abstract]
Schedule Benefit Plans Disclosures Cash Contributions	Contributions to these plans were as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Defined benefit pension contributions $ 13 $ 11 $ 67 $ 77 OPEB payments, net 5 9 19 25 Defined contribution pension plans 20 18 72 70
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 October 3, September 27, October 3, September 27, October 3, September 27, Service cost $ 35 $ 33 $ 8 $ 8 $ — $ — Interest cost 20 24 8 8 1 2 Expected return on plan assets (49) (49) (22) (19) — — Amortization of prior service cost — — 1 1 — — Recognized net actuarial loss 11 10 8 9 — — Net periodic benefit cost $ 17 $ 18 $ 3 $ 7 $ 1 $ 2 Pension U.S. Plans U.K. Plans OPEB Nine months ended In millions October 3, September 27, October 3, September 27, October 3, September 27, Service cost $ 105 $ 100 $ 25 $ 22 $ — $ — Interest cost 59 71 23 26 3 5 Expected return on plan assets (149) (146) (65) (56) — — Amortization of prior service cost — 1 2 2 — — Recognized net actuarial loss 35 30 24 26 — — Net periodic benefit cost $ 50 $ 56 $ 9 $ 20 $ 3 $ 5

EQUITY, ROYALTY AND INTEREST _2

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Tables)	9 Months Ended
	Oct. 03, 2021
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 October 3, September 27, October 3, September 27, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 23 $ 30 $ 108 $ 81 Dongfeng Cummins Engine Company, Ltd. 11 20 63 54 Chongqing Cummins Engine Company, Ltd. 8 7 28 27 All other manufacturers 27 22 (1) 117 100 (1)(2) Distribution entities Komatsu Cummins Chile, Ltda. 8 6 23 23 All other distributors 2 1 6 1 Cummins share of net income 79 86 345 286 Royalty and interest income 15 12 52 56 Equity, royalty and interest income from investees $ 94 $ 98 $ 397 $ 342 (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 favorable adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	9 Months Ended
	Oct. 03, 2021
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: October 3, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 196 $ 2 $ 198 $ 267 $ 5 $ 272 Certificates of deposit 200 — 200 164 — 164 Equity mutual funds 22 9 31 19 5 24 Debt securities 1 — 1 1 — 1 Total marketable securities $ 419 $ 11 $ 430 $ 451 $ 10 $ 461 (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 October 3, September 27, Proceeds from sales of marketable securities $ 428 $ 283 Proceeds from maturities of marketable securities 174 125 Investments in marketable securities - liquidations $ 602 $ 408

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Oct. 03, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories included the following: In millions October 3, December 31, Finished products $ 2,494 $ 2,216 Work-in-process and raw materials 1,998 1,346 Inventories at FIFO cost 4,492 3,562 Excess of FIFO over LIFO (170) (137) Total inventories $ 4,322 $ 3,425

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	9 Months Ended
	Oct. 03, 2021
Balance Sheet Related Disclosures [Abstract]
Schedule of Other Assets	Other assets included the following: In millions October 3, December 31, Corporate owned life insurance $ 482 $ 508 Operating lease assets 455 438 Deferred income taxes 411 479 Other 357 308 Other assets $ 1,705 $ 1,733
Accrued Expenses	Other accrued expenses included the following: In millions October 3, December 31, Marketing accruals $ 290 $ 242 Other taxes payable 268 256 Current portion of operating lease liabilities 127 128 Income taxes payable 92 82 Other 408 404 Other accrued expenses $ 1,185 $ 1,112
Other Noncurrent Liabilities	Other liabilities included the following: In millions October 3, December 31, Operating lease liabilities $ 327 $ 325 Deferred income taxes 327 325 One-time transition tax 255 289 Accrued compensation 201 203 Mark-to-market valuation on interest rate locks 5 41 Other long-term liabilities 320 365 Other liabilities $ 1,435 $ 1,548

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Oct. 03, 2021
Debt Disclosure [Abstract]
Schedule of Short-term Debt	Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions October 3, December 31, Loans payable (1) $ 85 $ 169 Commercial paper 200 (2) 323 (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 0.14 percent at October 3, 2021 and included $200 million of borrowings under the U.S. program. (3) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2020 and included $123 million of borrowings under the Europe program that were negative 0.34 percent and $200 million of borrowings under the U.S. program at 0.19 percent.
Summary of long-term debt	A summary of long-term debt was as follows: In millions Interest Rate October 3, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 Senior notes, due 2025 (1) 0.75% 500 500 Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 1.50% 850 850 Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 650 Debentures, due 2098 (2) 5.65% 165 165 Other debt 124 132 Unamortized discount and deferred issuance costs (68) (72) Fair value adjustments due to hedge on indebtedness 39 48 Finance leases 89 91 Total long-term debt 3,657 3,672 Less: Current maturities of long-term debt 55 62 Long-term debt $ 3,602 $ 3,610 (1) In the third quarter of 2021, we entered into a series of interest rate swaps to effectively convert from a fixed rate to floating rate. 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 2021 2022 2023 2024 2025 Principal payments $ 16 $ 58 $ 536 $ 31 $ 507
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)	The following table summarizes the gains and (losses), net of tax, recognized in "Other comprehensive income": In millions Three months ended Nine months ended Type of Swap October 3, September 27, October 3, September 27, Interest rate locks $ — $ 17 $ 28 $ (52)
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 October 3, December 31, Fair value of total debt (1) $ 4,285 $ 4,665 Carrying value of total debt 3,942 4,164 (1) The fair value of debt is derived from Level 2 input measures.

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	9 Months Ended
	Oct. 03, 2021
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 October 3, September 27, Balance, beginning of year $ 2,307 $ 2,389 Provision for base warranties issued 431 277 Deferred revenue on extended warranty contracts sold 210 172 Provision for product campaigns issued 162 27 Payments made during period (409) (424) Amortization of deferred revenue on extended warranty contracts (191) (169) Changes in estimates for pre-existing product warranties (131) (41) Foreign currency translation and other (4) (6) Balance, end of period $ 2,375 $ 2,225
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 October 3, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 283 $ 261 Current portion of deferred revenue Long-term portion 695 700 Deferred revenue Total $ 978 $ 961 Product warranty Current portion $ 694 $ 674 Current portion of accrued product warranty Long-term portion 703 672 Accrued product warranty Total $ 1,397 $ 1,346 Total warranty accrual $ 2,375 $ 2,307

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Oct. 03, 2021
Equity [Abstract]
Changes in accumulated other comprehensive loss by component	Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended: In millions Change in pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) Other comprehensive income before reclassifications Before-tax amount 1 (2) 5 4 $ 2 $ 6 Tax expense (1) — (3) (4) — (4) After-tax amount — (2) 2 — 2 2 Amounts reclassified from accumulated other comprehensive income (loss) (1) 17 — 1 18 — 18 Net current period other comprehensive income (loss) 17 (2) 3 18 $ 2 $ 20 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) 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 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 16 101 18 135 $ 10 $ 145 Balance at September 27, 2020 $ (700) $ (1,335) $ (72) $ (2,107) (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 pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income before reclassifications Before-tax amount 16 (33) 53 36 $ (5) $ 31 Tax (expense) benefit (3) 4 (16) (15) — (15) After-tax amount 13 (29) 37 21 (5) 16 Amounts reclassified from accumulated other comprehensive income (loss) (1) 50 — — 50 — 50 Net current period other comprehensive income (loss) 63 (29) 37 (2) 71 $ (5) $ 66 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) Balance at December 31, 2019 $ (734) $ (1,285) $ (9) $ (2,028) Other comprehensive income before reclassifications Before-tax amount (19) (54) (75) (148) $ (12) $ (160) Tax benefit 5 4 16 25 — 25 After-tax amount (14) (50) (59) (123) (12) (135) Amounts reclassified from accumulated other comprehensive income (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) (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.

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	9 Months Ended
	Oct. 03, 2021
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 Three months ended October 3, 2021 External sales $ 1,961 $ 1,952 $ 1,347 $ 688 $ 20 $ 5,968 Intersegment sales 617 7 446 476 3 1,549 Total sales 2,578 1,959 1,793 1,164 23 7,517 Research, development and engineering expenses 97 10 78 55 26 266 Equity, royalty and interest income (loss) from investees 61 15 10 11 (3) 94 Interest income 3 2 1 1 — 7 EBITDA 391 192 253 134 (58) 912 Depreciation and amortization (1) 53 28 44 29 5 159 Three months ended September 27, 2020 External sales $ 1,617 $ 1,715 $ 1,201 $ 567 $ 18 $ 5,118 Intersegment sales 495 6 340 414 — 1,255 Total sales 2,112 1,721 1,541 981 18 6,373 Research, development and engineering expenses 72 9 64 53 26 224 Equity, royalty and interest income (loss) from investees 74 13 13 — (2) 98 Interest income 1 1 1 1 — 4 EBITDA 382 182 261 101 (40) 886 Depreciation and amortization (1) 51 30 47 32 5 165 (1) 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 Nine months ended October 3, 2021 External sales $ 5,776 $ 5,692 $ 4,627 $ 1,999 $ 77 $ 18,171 Intersegment sales 1,752 22 1,312 1,330 5 4,421 Total sales 7,528 5,714 5,939 3,329 82 22,592 Research, development and engineering expenses 288 35 232 172 75 802 Equity, royalty and interest income (loss) from investees 278 47 41 32 (1) 397 Interest income 7 5 3 3 — 18 EBITDA 1,147 553 975 399 (169) 2,905 Depreciation and amortization (1) 154 88 138 97 17 494 Nine months ended September 27, 2020 External sales $ 4,133 $ 5,123 $ 3,192 $ 1,495 $ 38 $ 13,981 Intersegment sales 1,560 17 1,001 1,147 — 3,725 Total sales 5,693 5,140 4,193 2,642 38 17,706 Research, development and engineering expenses 217 20 187 148 79 651 Equity, royalty and interest income (loss) from investees 236 45 46 18 (3) 342 Interest income 6 3 3 3 — 15 EBITDA 897 500 681 269 (121) 2,226 Depreciation and amortization (1) 155 91 142 96 13 497 (1) 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 $3 million and $2 million for the nine months ended October 3, 2021 and September 27, 2020, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses."
Reconciliation of Revenue from Segments to Consolidated	A reconciliation of our total segment sales to total net sales in the Condensed Consolidated Statements of Net Income was as follows: Three months ended Nine months ended In millions October 3, September 27, October 3, September 27, Total segment sales $ 7,517 $ 6,373 $ 22,592 $ 17,706 Elimination of intersegment sales (1,549) (1,255) (4,421) (3,725) Total net sales $ 5,968 $ 5,118 $ 18,171 $ 13,981
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 October 3, September 27, October 3, September 27, TOTAL SEGMENT EBITDA $ 912 $ 886 $ 2,905 $ 2,226 Intersegment elimination (50) (10) (89) 45 Less: Interest expense 28 25 85 71 Depreciation and amortization 159 165 494 497 INCOME BEFORE INCOME TAXES 675 686 2,237 1,703 Less: Income tax expense 134 182 473 402 CONSOLIDATED NET INCOME 541 504 1,764 1,301 Less: Net income attributable to noncontrolling interests 7 3 27 13 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 534 $ 501 $ 1,737 $ 1,288

NATURE OF OPERATIONS AND BASI_3

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details)	3 Months Ended		9 Months Ended
	Oct. 03, 2021shares	Sep. 27, 2020shares	Oct. 03, 2021locationcountryshares	Sep. 27, 2020shares
Real Estate Properties [Line Items]
Countries and Territories Number | country			190
Options excluded (in shares) | shares	7,813	2,405	4,577	858,651
Minimum
Real Estate Properties [Line Items]
Company Owned and Independent Distributor Locations Number			500
Dealer Locations Number			9,000

REVENUE RECOGNITION LONGTERM _2

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 774		$ 774
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled revenue	104		104		$ 114
Deferred revenue, primarily extended warranty	1,642		1,642		$ 1,531
Contract with Customer, Liability, Revenue Recognized	130	$ 84	410	$ 290
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-04
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 134		$ 134
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]: 2022-10-04
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 640		$ 640
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
		Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)	[1]	$ 5,968	$ 5,118	$ 18,171	$ 13,981
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		662	486	1,941	1,226
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		501	389	1,461	1,177
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		492	502	1,432	975
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,655	1,377	4,834	3,378
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		306	240	942	755
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		796	719	2,313	2,155
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		437	415	1,305	1,166
Engines (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		376	278	1,058	876
Service (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		343	303	1,016	926
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		699	612	2,466	1,576
Filtration (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		288	260	892	715
Turbo technologies (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		177	163	609	463
Automated Transmissions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		112	90	374	215
Electronics and Fuel systems (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		71	76	286	223
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		395	334	1,127	827
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		209	167	621	477
Generator technologies (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		84	66	251	191
Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,578	2,112	7,528	5,693
Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,959	1,721	5,714	5,140
Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,793	1,541	5,939	4,193
Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,164	981	3,329	2,642
External Sales | Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,961	1,617	5,776	4,133
External Sales | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,952	1,715	5,692	5,123
External Sales | Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,347	1,201	4,627	3,192
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		688	567	1,999	1,495
UNITED STATES
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		3,177	2,805	9,500	7,522
CHINA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		679	705	2,468	2,037
CHINA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		80	74	239	242
INDIA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		294	166	841	406
INDIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		48	42	138	101
OTHER INTERNATIONAL
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,818	1,442	5,362	4,016
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,237	1,126	3,631	3,409
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		236	195	675	577
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		143	153	467	424
RUSSIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		86	41	209	126
AFRICA AND MIDDLE EAST | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		74	47	197	136
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		$ 48	$ 37	$ 136	$ 108
[1]	(a) Includes sales to nonconsolidated equity investees of $385 million and $1,286 million for the three and nine months ended October 3, 2021, compared with $311 million and $906 million for the comparable periods in 2020.

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020	Oct. 04, 2021
Pension and other postretirement benefits
Defined contribution pension plans	$ 20	$ 18	$ 72	$ 70
Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	13	11	67	77
Other Postretirement Benefits Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	5	9	19	25
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	1	2	3	5
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	0	0	0	0
Recognized net actuarial loss	0	0	0	0
Net periodic benefit cost	1	2	3	5
Estimate | Pension Plan
Pension and other postretirement benefits
Net periodic pension cost					$ 79
UNITED KINGDOM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	8	8	25	22
Interest cost	8	8	23	26
Expected return on plan assets	(22)	(19)	(65)	(56)
Amortization of prior service cost	1	1	2	2
Recognized net actuarial loss	8	9	24	26
Net periodic benefit cost	3	7	9	20
UNITED KINGDOM | Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year					6
UNITED STATES | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	35	33	105	100
Interest cost	20	24	59	71
Expected return on plan assets	(49)	(49)	(149)	(146)
Amortization of prior service cost	0	0	0	1
Recognized net actuarial loss	11	10	35	30
Net periodic benefit cost	$ 17	$ 18	$ 50	$ 56
UNITED STATES | Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year					$ 4

EQUITY, ROYALTY AND INTEREST _3

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	$ 94	$ 98	$ 397	$ 342
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	23	30	108	81
Dongfeng Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	11	20	63	54
Chongqing Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	8	7	28	27
All other manufacturers
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	27	22	117	100
Komatsu Cummins Chile, Ltda. (Distribution)
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	8	6	23	23
All other distributors
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	2	1	6	1
Cummin's Share of Equity Earnings
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	79	86	345	286
Royalty and interest income
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	$ 15	$ 12	$ 52	$ 56

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Operating Loss Carryforwards [Line Items]
Effective tax rate (as a percent)	19.90%	26.50%	21.10%	23.60%
Discrete Tax Expense (Benefit)	$ (11)	$ 31	$ (8)	$ 27
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	(16)	17	(18)	34
Other Discrete Tax Expenses		6	$ 10
Income Tax Provision to Return Adjustment	$ 5	$ 8		8
Ministry of Finance, India
Operating Loss Carryforwards [Line Items]
Discrete Tax Expense (Benefit)				$ (15)

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Dec. 31, 2020
Schedule of Available-for-sale Securities
Debt Securities, Available-for-sale, Amortized Cost	$ 1		$ 1
Debt Securities, Available for sale, Unrealized Gain (Loss)	0		0
Debt Securities, Available-for-sale	1		1
Debt Securities, Trading, and Equity Securities, FV-NI, Cost	419		451
Marketable Securities, Unrealized Gain / (Loss)	11		10
Marketable securities	430		461
Proceeds from Sale of Held-to-maturity Securities	428	$ 283
Proceeds from Maturity of Marketable Securities	174	125
Proceeds from sales and maturities of marketable securities	602	$ 408
Debt Mutual Funds
Schedule of Available-for-sale Securities
Equity Securities, cost	196		267
Equity Securities, Unrealized Gain (Loss)	2		5
Equity Securities, Fair Value	198		272
Certificates of deposit
Schedule of Available-for-sale Securities
Equity Securities, cost	200		164
Equity Securities, Unrealized Gain (Loss)	0		0
Equity Securities, Fair Value	200		164
Equity mutual funds
Schedule of Available-for-sale Securities
Equity Securities, cost	22		19
Equity Securities, Unrealized Gain (Loss)	9		5
Equity Securities, Fair Value	$ 31		$ 24
Minimum | Certificates of deposit
Schedule of Available-for-sale Securities
Maturities of Time Deposits, Description	three months
Maximum | Certificates of deposit
Schedule of Available-for-sale Securities
Maturities of Time Deposits, Description	five years

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Oct. 03, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished products	$ 2,494	$ 2,216
Work-in-process and raw materials	1,998	1,346
Inventories at FIFO cost	4,492	3,562
Excess of FIFO over LIFO	(170)	(137)
Total inventories	$ 4,322	$ 3,425

SUPPLEMENTAL BALANCE SHEET DA_3

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Oct. 03, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Corporate owned life insurance	$ 482	$ 508
Operating lease assets	455	438
Deferred income taxes	411	479
Other Assets, Miscellaneous, Noncurrent	357	308
Other assets	1,705	1,733
Marketing accruals	290	242
Other taxes payable	268	256
Current portion of operating lease liabilities	127	128
Income taxes payable	92	82
Other Accrued Liabilities, Current	408	404
Other accrued expenses	1,185	1,112
Operating lease liabilities	327	325
Deferred income taxes	327	325
One-time transition tax	255	289
Accrued compensation	201	203
Mark-to-market valuation on interest rate locks	5	41
Other Accrued Liabilities, Noncurrent	320	365
Other liabilities	$ 1,435	$ 1,548

DEBT (Details)

DEBT (Details) $ in Millions	Aug. 18, 2021USD ($)	Aug. 19, 2020USD ($)	Aug. 22, 2018USD ($)	Oct. 03, 2021USD ($)Rate	Sep. 27, 2020USD ($)	Oct. 03, 2021USD ($)Rate	Sep. 27, 2020USD ($)	Dec. 31, 2020USD ($)Rate
Short-term Debt [Line Items]
Loans payable				$ 85		$ 85		$ 169
Commercial paper				200		200		323
Line of Credit Facility, Maximum Borrowing Capacity				$ 3,500		$ 3,500
Leverage Ratio				0.65		0.65
Line of Credit Facility, Remaining Borrowing Capacity				$ 3,300		$ 3,300
Long-term debt
Other Long-term Debt				124		124		132
Unamortized discount and deferred issuance costs				(68)		(68)		(72)
Fair value adjustment due to hedge on indebtedness				39		39		48
Finance Lease, Liability				89		89		91
Total long-term debt				3,657		3,657		3,672
Current maturities of long-term debt				55		55		62
Long-term debt				3,602		3,602		3,610
Principal payments
2021				16		16
2022				58		58
2023				536		536
2024				31		31
2025				507		507
Fair value
Fair value of total debt				4,285		4,285		4,665
Carrying value of total debt				3,942		$ 3,942		4,164
London Interbank Offered Rate (LIBOR)
Principal payments
Debt Instrument, Description of Variable Rate Basis						LIBOR
London Interbank Offered Rate (LIBOR) Swap Rate
Principal payments
Debt Instrument, Description of Variable Rate Basis						LIBOR
Maximum
Principal payments
Gain (Loss) on Swaps						$ (1)
Gain (Loss) on Borrowings						$ 1
5-Year Revolving Credit Facility
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000		$ 2,000
Debt Instrument, Term	5 years		5 years
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases	$ 300
Debt Instrument, Basis Spread on Variable Rate						0.75%
1-year revolving credit agreement
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500	$ 1,500
Debt Instrument, Term	364 days	364 days
EUROPE
Short-term Debt [Line Items]
Commercial paper								123
UNITED STATES
Short-term Debt [Line Items]
Commercial paper				200		$ 200		$ 200
Interest Rate Swap
Principal payments
Interest Rate Swap/Lock, Notional Amount				500		500
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax				0	$ 17	28	$ (52)
Commercial Paper
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time | Rate								(0.01%)
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								(0.34%)
Commercial Paper | UNITED STATES
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time | Rate				0.14%		0.14%		0.19%
International and Other Lines of Credit
Short-term Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity				$ 268		$ 268
Senior notes, due 2023
Long-term debt
Debt instrument interest rate (as a percent) | Rate				3.65%		3.65%
Unsecured Debt				$ 500		$ 500		$ 500
Senior notes, due 2025(1)
Long-term debt
Debt instrument interest rate (as a percent) | Rate				0.75%		0.75%
Unsecured Debt				$ 500		$ 500		500
Senior notes, due 2025(1) | Interest Rate Swap
Principal payments
Interest Rate Swap/Lock, Notional Amount				$ 400		$ 400
Debentures, due 2027
Long-term debt
Debt instrument interest rate (as a percent) | Rate				6.75%		6.75%
Unsecured Debt				$ 58		$ 58		58
Debentures, due 2028
Long-term debt
Debt instrument interest rate (as a percent) | Rate				7.125%		7.125%
Unsecured Debt				$ 250		$ 250		250
Senior notes, due 2030
Long-term debt
Debt instrument interest rate (as a percent) | Rate				1.50%		1.50%
Unsecured Debt				$ 850		$ 850		850
Senior notes, due 2043
Long-term debt
Debt instrument interest rate (as a percent) | Rate				4.875%		4.875%
Unsecured Debt				$ 500		$ 500		500
Senior notes, due 2050
Long-term debt
Debt instrument interest rate (as a percent) | Rate				2.60%		2.60%
Unsecured Debt				$ 650		$ 650		650
Debentures, due 2098(2)
Long-term debt
Debt instrument interest rate (as a percent) | Rate				5.65%		5.65%
Unsecured Debt				$ 165		$ 165		$ 165
Effective interest rate (as a percent) | Rate				7.48%		7.48%

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Footnote Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020	Dec. 31, 2020
Product Warranties Disclosures [Abstract]
Balance, beginning of year			$ 2,307	$ 2,389
Provision for base warranties issued			431	277
Deferred revenue on extended warranty contracts sold			210	172
Provision for product campaigns issued			162	27
Payments made during period			(409)	(424)
Amortization of deferred revenue on extended warranty contracts			(191)	(169)
Changes in estimates for pre-existing product warranties			(131)	(41)
Foreign currency translation and other			(4)	(6)
Balance, end of period	$ 2,375	$ 2,225	2,375	2,225
Supplier recoveries	88	$ 5	97	$ 16
Product Warranty Liability
Current portion of warranty related deferred revenue	806		806		$ 691
Long term portion of warranty related deferred revenue	836		836		840
Deferred Revenue Related to extended coverage, Total	978		978		961
Current portion of accrued product warranty	694		694		674
Long-term portion of accrued product warranty	703		703		672
Standard Product Warranty Accrual	1,397		1,397		1,346
Current portion of deferred revenue
Product Warranty Liability
Current portion of warranty related deferred revenue	283		283		261
Deferred revenue
Product Warranty Liability
Long term portion of warranty related deferred revenue	695		695		700
Current portion of accrued product warranty
Product Warranty Liability
Current portion of accrued product warranty	694		694		674
Accrued product warranty
Product Warranty Liability
Long-term portion of accrued product warranty	$ 703		$ 703		$ 672

PRODUCT WARRANTY LIABILITY (D_2

PRODUCT WARRANTY LIABILITY (Details 2) Engine System Campaign - USD ($) $ in Millions	3 Months Ended	18 Months Ended	48 Months Ended
	Dec. 31, 2020	Jul. 01, 2018	Dec. 31, 2020	Oct. 03, 2021
Guarantees and Product Warranties [Abstract]
Provision for product campaigns issued	$ 20	$ 410	$ 430
Engine System Campaign Accrual, Present Value				$ 94

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	3 Months Ended
	Oct. 03, 2021USD ($)
Guarantee Obligations
Guarantor obligations, maximum potential loss	$ 49
Long-term purchase commitment, penalty exposure	90
Total commitments under commodity contracts	54
Performance Bonds and Other Performance Guarantees	$ 105
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
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period			$ (1,982)
Before tax amount	$ 6	$ 134	31	$ (160)
Tax (expense) benefit	(4)	(5)	(15)	25
After tax amount	2	129	16	(135)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	18	16	50	44
Net current period other comprehensive income (loss)	20	145	66	(91)
Balance at the end of the period	(1,911)		(1,911)
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	(689)	(716)	(735)	(734)
Before tax amount	1	0	16	(19)
Tax (expense) benefit	(1)	0	(3)	5
After tax amount	0	0	13	(14)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	17	16	50	48
Net current period other comprehensive income (loss)	17	16	63	34
Balance at the end of the period	(672)	(700)	(672)	(700)
Foreign currency translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,231)	(1,436)	(1,204)	(1,285)
Before tax amount	(2)	101	(33)	(54)
Tax (expense) benefit	0	0	4	4
After tax amount	(2)	101	(29)	(50)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	0	0	0
Net current period other comprehensive income (loss)	(2)	101	(29)	(50)
Balance at the end of the period	(1,233)	(1,335)	(1,233)	(1,335)
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(9)	(90)	(43)	(9)
Before tax amount	5	23	53	(75)
Tax (expense) benefit	(3)	(5)	(16)	16
After tax amount	2	18	37	(59)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	1	0		(4)
Net current period other comprehensive income (loss)	3	18	37	(63)
Balance at the end of the period	(6)	(72)	(6)	(72)
Total attributable to Cummins Inc.
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,929)	(2,242)	(1,982)	(2,028)
Before tax amount	4	124	36	(148)
Tax (expense) benefit	(4)	(5)	(15)	25
After tax amount	0	119	21	(123)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	18	16	50	44
Net current period other comprehensive income (loss)	18	135	71	(79)
Balance at the end of the period	(1,911)	(2,107)	(1,911)	(2,107)
Noncontrolling interests
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Before tax amount	2	10	(5)	(12)
Tax (expense) benefit	0	0	0	0
After tax amount	2	10	(5)	(12)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	0	0
Net current period other comprehensive income (loss)	$ 2	$ 10	$ (5)	$ (12)

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Segment reporting
NET SALES (a) (Note 2)	[1]	$ 5,968	$ 5,118	$ 18,171	$ 13,981
Research, development and engineering expenses		266	224	802	651
Equity, royalty and interest income (loss) from investees		94	98	397	342
Interest expense		28	25	85	71
Depreciation and amortization		159	165	494	497
INCOME BEFORE INCOME TAXES		675	686	2,237	1,703
Income tax expense (Note 5)		134	182	473	402
CONSOLIDATED NET INCOME		541	504	1,764	1,301
Less: Net income attributable to noncontrolling interests		7	3	27	13
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		534	501	1,737	1,288
Amortization of Debt Discount (Premium)				3	2
Engine
Segment reporting
NET SALES (a) (Note 2)		2,578	2,112	7,528	5,693
Research, development and engineering expenses		97	72	288	217
Equity, royalty and interest income (loss) from investees		61	74	278	236
Interest income		3	1	7	6
EBITDA		391	382	1,147	897
Depreciation and amortization		53	51	154	155
Distribution
Segment reporting
NET SALES (a) (Note 2)		1,959	1,721	5,714	5,140
Research, development and engineering expenses		10	9	35	20
Equity, royalty and interest income (loss) from investees		15	13	47	45
Interest income		2	1	5	3
EBITDA		192	182	553	500
Depreciation and amortization		28	30	88	91
Components
Segment reporting
NET SALES (a) (Note 2)		1,793	1,541	5,939	4,193
Research, development and engineering expenses		78	64	232	187
Equity, royalty and interest income (loss) from investees		10	13	41	46
Interest income		1	1	3	3
EBITDA		253	261	975	681
Depreciation and amortization		44	47	138	142
Power Systems
Segment reporting
NET SALES (a) (Note 2)		1,164	981	3,329	2,642
Research, development and engineering expenses		55	53	172	148
Equity, royalty and interest income (loss) from investees		11	0	32	18
Interest income		1	1	3	3
EBITDA		134	101	399	269
Depreciation and amortization		29	32	97	96
New Power
Segment reporting
NET SALES (a) (Note 2)		23	18	82	38
Research, development and engineering expenses		26	26	75	79
Equity, royalty and interest income (loss) from investees		(3)	(2)	(1)	(3)
Interest income		0	0	0	0
EBITDA		(58)	(40)	(169)	(121)
Depreciation and amortization		5	5	17	13
Total Segments
Segment reporting
NET SALES (a) (Note 2)		7,517	6,373	22,592	17,706
Research, development and engineering expenses		266	224	802	651
Equity, royalty and interest income (loss) from investees		94	98	397	342
Interest income		7	4	18	15
EBITDA		912	886	2,905	2,226
Depreciation and amortization		159	165	494	497
Corporate and Other
Segment reporting
NET SALES (a) (Note 2)		(1,549)	(1,255)	(4,421)	(3,725)
EBITDA		(50)	(10)	(89)	45
Intersegment sales | Engine
Segment reporting
NET SALES (a) (Note 2)		617	495	1,752	1,560
Intersegment sales | Distribution
Segment reporting
NET SALES (a) (Note 2)		7	6	22	17
Intersegment sales | Components
Segment reporting
NET SALES (a) (Note 2)		446	340	1,312	1,001
Intersegment sales | Power Systems
Segment reporting
NET SALES (a) (Note 2)		476	414	1,330	1,147
Intersegment sales | New Power
Segment reporting
NET SALES (a) (Note 2)		3	0	5	0
Intersegment sales | Total Segments
Segment reporting
NET SALES (a) (Note 2)		1,549	1,255	4,421	3,725
External Sales | Engine
Segment reporting
NET SALES (a) (Note 2)		1,961	1,617	5,776	4,133
External Sales | Distribution
Segment reporting
NET SALES (a) (Note 2)		1,952	1,715	5,692	5,123
External Sales | Components
Segment reporting
NET SALES (a) (Note 2)		1,347	1,201	4,627	3,192
External Sales | Power Systems
Segment reporting
NET SALES (a) (Note 2)		688	567	1,999	1,495
External Sales | New Power
Segment reporting
NET SALES (a) (Note 2)		20	18	77	38
External Sales | Total Segments
Segment reporting
NET SALES (a) (Note 2)		$ 5,968	$ 5,118	$ 18,171	$ 13,981
[1]	(a) Includes sales to nonconsolidated equity investees of $385 million and $1,286 million for the three and nine months ended October 3, 2021, compared with $311 million and $906 million for the comparable periods in 2020.

Uncategorized Items - cmi-20211

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]