Cummins (CMI) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2022
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	140,992,323
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	2022
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Amendment Flag	false
Document Transition Report	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021
Income Statement [Abstract]
NET SALES (a) (Note 2)	[1]	$ 6,586	$ 6,111	$ 12,971	$ 12,203
Cost of sales (Note 3)		4,860	4,633	9,713	9,239
GROSS MARGIN		1,726	1,478	3,258	2,964
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses		622	600	1,237	1,174
Research, development and engineering expenses		299	276	597	536
Equity, royalty and interest income from investees (Notes 3 and 5)		95	137	191	303
Other operating expense, net (Note 3)		3	4	114	12
OPERATING INCOME		897	735	1,501	1,545
Interest expense		34	29	51	57
Other (expense) income, net		(8)	73	(17)	74
INCOME BEFORE INCOME TAXES		855	779	1,433	1,562
Income tax expense (Note 6)		148	167	303	339
CONSOLIDATED NET INCOME		707	612	1,130	1,223
Less: Net income attributable to noncontrolling interests		5	12	10	20
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$ 702	$ 600	$ 1,120	$ 1,203
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic (in dollars per share)		$ 4.97	$ 4.14	$ 7.90	$ 8.24
Diluted (in dollars per share)		$ 4.94	$ 4.10	$ 7.86	$ 8.16
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		141.2	145.1	141.7	146
Dilutive effect of stock compensation awards (in shares)		0.8	1.4	0.8	1.4
Diluted (in shares)		142	146.5	142.5	147.4
Revenue from Related Parties	[1]	$ 281	$ 423	$ 625	$ 901
[1] (a) Includes sales to nonconsolidated equity investees of $281 million and $625 million for the three and six months ended June 30, 2022, compared with $423 million and $901 million for the comparable periods in 2021.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$ 707	$ 612	$ 1,130	$ 1,223
Other comprehensive income (loss), net of tax (Note 13)
Change in pension and other postretirement defined benefit plans	6	17	22	46
Foreign currency translation adjustments	(245)	22	(241)	(34)
Unrealized gain (loss) on derivatives	43	(38)	71	34
Total other comprehensive (loss) income, net of tax	(196)	1	(148)	46
COMPREHENSIVE INCOME	511	613	982	1,269
Less: Comprehensive (loss) income attributable to noncontrolling interests	(10)	5	(13)	13
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 521	$ 608	$ 995	$ 1,256

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions	Jun. 30, 2022	Dec. 31, 2021
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	222.5
Treasury stock, shares	81.5	80
Current assets
Cash and cash equivalents	$ 2,462	$ 2,592
Marketable securities	536	595
Total cash, cash equivalents and marketable securities	2,998	3,187
Accounts and notes receivable, net
Trade and other	3,869	3,565
Nonconsolidated equity investees	287	425
Inventories (Note 8)	4,765	4,355
Prepaid expenses and other current assets	843	777
Total current assets	12,762	12,309
Long-term assets
Property, plant and equipment	9,374	9,358
Accumulated depreciation	(4,985)	(4,936)
Property, plant and equipment, net	4,389	4,422
Investments and advances related to equity method investees	1,544	1,538
Goodwill	1,391	1,287
Other intangible assets, net	1,054	900
Pension assets (Note 4)	1,461	1,488
Other assets (Note 9)	1,876	1,766
Total assets	24,477	23,710
Current liabilities
Accounts payable (principally trade)	3,405	3,021
Loans payable (Note 10)	165	208
Commercial paper (Note 10)	705	313
Accrued compensation, benefits and retirement costs	443	683
Current portion of accrued product warranty (Note 11)	796	755
Current portion of deferred revenue (Note 2)	871	855
Other accrued expenses (Note 9)	1,221	1,190
Current maturities of long-term debt (Note 10)	65	59
Total current liabilities	7,671	7,084
Long-term liabilities
Long-term debt (Note 10)	3,490	3,579
Pensions and other postretirement benefits (Note 4)	589	604
Accrued product warranty (Note 11)	714	684
Deferred revenue (Note 2)	852	850
Other liabilities (Note 9)	1,506	1,508
Total liabilities	14,822	14,309
Commitments and contingencies (Note 12)
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	2,423	2,427
Retained earnings	17,450	16,741
Treasury stock, at cost, 81.5 and 80.0 shares	(9,439)	(9,123)
Accumulated other comprehensive loss (Note 13)	(1,696)	(1,571)
Total Cummins Inc. shareholders' equity	8,738	8,474
Noncontrolling interests	917	927
Total equity	9,655	9,401
Total liabilities and equity	$ 24,477	$ 23,710

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 1,130	$ 1,223
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	328	337
Deferred income taxes	(112)	17
Equity in income of investees, net of dividends	(62)	(114)
Pension and OPEB expense (Note 4)	17	41
Pension contributions and OPEB payments (Note 4)	(55)	(68)
Share-based compensation expense	14	18
Russian suspension costs, net of recoveries (Note 3)	111	0
Asset impairments and other charges	36	0
Loss on corporate owned life insurance	85	12
Foreign currency remeasurement and transaction exposure	(10)	10
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(252)	(331)
Inventories	(498)	(628)
Other current assets	(65)	(18)
Accounts payable	426	377
Accrued expenses	(281)	169
Changes in other liabilities	(11)	(34)
Other, net	(38)	(56)
Net cash provided by operating activities	763	955
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(251)	(212)
Investments in internal use software	(24)	(22)
Proceeds from sale of land	0	20
Investments in and advances to equity investees	(53)	10
Acquisitions of businesses, net of cash acquired (Note 14)	(245)	0
Investments in marketable securities—acquisitions	(433)	(362)
Investments in marketable securities—liquidations (Note 7)	461	381
Cash flows from derivatives not designated as hedges	(32)	12
Other, net	1	27
Net cash used in investing activities	(576)	(146)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	56	20
Net borrowings (payments) of commercial paper	392	(123)
Payments on borrowings and finance lease obligations	(71)	(33)
Net payments under short-term credit agreements	(24)	(102)
Distributions to noncontrolling interests	(14)	(13)
Dividend payments on common stock	(411)	(394)
Repurchases of common stock	(347)	(1,090)
Proceeds from issuing common stock	19	26
Other, net	9	(13)
Net cash used in financing activities	(391)	(1,722)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	74	(7)
Net decrease in cash and cash equivalents	(130)	(920)
Cash and cash equivalents at beginning of year	2,592	3,401
Cash and cash equivalents	$ 2,462	$ 2,481

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total Cummins Inc. Shareholders' Equity	Noncontrolling Interests
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 2.70
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2020	$ 8,989	$ 556	$ 1,848	$ 15,419	$ (7,779)	$ (1,982)	$ 8,062	$ 927
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	1,223			1,203			1,203	20
Other comprehensive loss, net of tax (Note 13)	46					53	53	(7)
Issuance of common stock	1		1				1
Repurchases of common stock	(1,090)				(1,090)		(1,090)
Cash dividends on common stock	(394)			(394)			(394)
Distributions to noncontrolling interests	(13)							(13)
Share-based awards	26		(4)		30		26
Other shareholder transactions	5		4		1		5	0
BALANCE AT END OF PERIOD at Jul. 04, 2021	$ 8,793	556	1,849	16,228	(8,838)	(1,929)	7,866	927
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.35
BALANCE AT BEGINNING OF PERIOD at Apr. 04, 2021	$ 9,031	556	1,837	15,825	(8,172)	(1,937)	8,109	922
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	612			600			600	12
Other comprehensive loss, net of tax (Note 13)	1					8	8	(7)
Issuance of common stock	1		1				1
Repurchases of common stock	(672)				(672)		(672)
Cash dividends on common stock	(197)			(197)			(197)
Share-based awards	8		2		6		8
Other shareholder transactions	9		9				9
BALANCE AT END OF PERIOD at Jul. 04, 2021	$ 8,793	556	1,849	16,228	(8,838)	(1,929)	7,866	927
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 2.90
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2021	$ 9,401	556	1,871	16,741	(9,123)	(1,571)	8,474	927
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	1,130			1,120			1,120	10
Other comprehensive loss, net of tax (Note 13)	(148)					(125)	(125)	(23)
Issuance of common stock	1		1				1
Repurchases of common stock	(347)				(347)		(347)
Cash dividends on common stock	(411)			(411)			(411)
Distributions to noncontrolling interests	(14)							(14)
Share-based awards	19		(7)		26		19
Other shareholder transactions	24		2		5		7	17
BALANCE AT END OF PERIOD at Jun. 30, 2022	$ 9,655	556	1,867	17,450	(9,439)	(1,696)	8,738	917
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.45
BALANCE AT BEGINNING OF PERIOD at Mar. 31, 2022	$ 9,363	556	1,855	16,952	(9,412)	(1,515)	8,436	927
Increase (Decrease) in Shareholders' Equity
CONSOLIDATED NET INCOME	707			702			702	5
Other comprehensive loss, net of tax (Note 13)	(196)					(181)	(181)	(15)
Issuance of common stock	1		1				1
Repurchases of common stock	(36)				(36)		(36)
Cash dividends on common stock	(204)			(204)			(204)
Share-based awards	10		2		8		10
Other shareholder transactions	10		9		1		10	0
BALANCE AT END OF PERIOD at Jun. 30, 2022	$ 9,655	$ 556	$ 1,867	$ 17,450	$ (9,439)	$ (1,696)	$ 8,738	$ 917

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2022
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 service network of approximately 500 wholly-owned, joint venture and independent distributor locations and more than 10,000 Cummins certified dealer locations in approximately 190 countries and territories. Reporting Period Beginning in 2022, we transitioned to a Gregorian calendar with our reporting period ending on the last day of the quarterly calendar period. In 2021 and prior, our reporting period ended on the Sunday closest to the last day of the quarterly calendar period. The second quarters of 2022 and 2021 ended on June 30 and July 4, respectively. Our fiscal year ends on December 31, regardless of the day of the week on which December 31 falls. 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, 2021 . Our interim period financial results for the three and six month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all 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. 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 Six months ended June 30, July 4, June 30, July 4, Options excluded 33,100 3,137 26,782 2,958

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022, was $723 million. We expect to recognize the related revenue of $128 million over the next 12 months and $595 million over periods up to 10 years. See NOTE 11, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of 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 June 30, December 31, Unbilled revenue $ 128 $ 100 Deferred revenue, primarily extended warranty 1,723 1,705 We recognized revenue of $176 million and $416 million for the three and six months ended June 30, 2022, compared with $133 million and $302 million for the comparable periods in 2021, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2022 or July 4, 2021. Disaggregation of Revenue Consolidated Revenue The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Three months ended Six months ended In millions June 30, July 4, June 30, July 4, United States $ 3,788 $ 3,263 $ 7,245 $ 6,323 China 520 832 1,173 1,789 India 311 217 620 547 Other international 1,967 1,799 3,933 3,544 Total net sales $ 6,586 $ 6,111 $ 12,971 $ 12,203 Segment Revenue Engine segment external sales by market were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Heavy-duty truck $ 797 $ 666 $ 1,481 $ 1,279 Medium-duty truck and bus 620 477 1,211 960 Light-duty automotive 425 466 912 940 Total on-highway 1,842 1,609 3,604 3,179 Off-highway 250 311 537 636 Total sales $ 2,092 $ 1,920 $ 4,141 $ 3,815 Distribution segment external sales by region were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, North America $ 1,491 $ 1,228 $ 2,862 $ 2,394 Asia Pacific 242 226 486 439 Europe 177 161 320 324 China 99 74 181 159 Russia 75 66 211 123 Latin America 56 48 97 88 Africa and Middle East 55 69 101 123 India 52 41 100 90 Total sales $ 2,247 $ 1,913 $ 4,358 $ 3,740 Distribution segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Parts $ 987 $ 763 $ 1,913 $ 1,517 Power generation 440 452 838 868 Engines 428 349 866 682 Service 392 349 741 673 Total sales $ 2,247 $ 1,913 $ 4,358 $ 3,740 Components segment external sales by business were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Emission solutions $ 767 $ 801 $ 1,575 $ 1,767 Filtration 319 303 627 604 Turbo technologies 195 207 392 432 Automated transmissions 143 147 277 262 Electronics and fuel systems 53 98 123 215 Total sales $ 1,477 $ 1,556 $ 2,994 $ 3,280 Power Systems segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Power generation $ 408 $ 381 $ 807 $ 732 Industrial 213 233 401 412 Generator technologies 113 85 209 167 Total sales $ 734 $ 699 $ 1,417 $ 1,311

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022, was $723 million. We expect to recognize the related revenue of $128 million over the next 12 months and $595 million over periods up to 10 years. See NOTE 11, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of 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 June 30, December 31, Unbilled revenue $ 128 $ 100 Deferred revenue, primarily extended warranty 1,723 1,705 We recognized revenue of $176 million and $416 million for the three and six months ended June 30, 2022, compared with $133 million and $302 million for the comparable periods in 2021, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2022 or July 4, 2021. Disaggregation of Revenue Consolidated Revenue The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Three months ended Six months ended In millions June 30, July 4, June 30, July 4, United States $ 3,788 $ 3,263 $ 7,245 $ 6,323 China 520 832 1,173 1,789 India 311 217 620 547 Other international 1,967 1,799 3,933 3,544 Total net sales $ 6,586 $ 6,111 $ 12,971 $ 12,203 Segment Revenue Engine segment external sales by market were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Heavy-duty truck $ 797 $ 666 $ 1,481 $ 1,279 Medium-duty truck and bus 620 477 1,211 960 Light-duty automotive 425 466 912 940 Total on-highway 1,842 1,609 3,604 3,179 Off-highway 250 311 537 636 Total sales $ 2,092 $ 1,920 $ 4,141 $ 3,815 Distribution segment external sales by region were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, North America $ 1,491 $ 1,228 $ 2,862 $ 2,394 Asia Pacific 242 226 486 439 Europe 177 161 320 324 China 99 74 181 159 Russia 75 66 211 123 Latin America 56 48 97 88 Africa and Middle East 55 69 101 123 India 52 41 100 90 Total sales $ 2,247 $ 1,913 $ 4,358 $ 3,740 Distribution segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Parts $ 987 $ 763 $ 1,913 $ 1,517 Power generation 440 452 838 868 Engines 428 349 866 682 Service 392 349 741 673 Total sales $ 2,247 $ 1,913 $ 4,358 $ 3,740 Components segment external sales by business were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Emission solutions $ 767 $ 801 $ 1,575 $ 1,767 Filtration 319 303 627 604 Turbo technologies 195 207 392 432 Automated transmissions 143 147 277 262 Electronics and fuel systems 53 98 123 215 Total sales $ 1,477 $ 1,556 $ 2,994 $ 3,280 Power Systems segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Power generation $ 408 $ 381 $ 807 $ 732 Industrial 213 233 401 412 Generator technologies 113 85 209 167 Total sales $ 734 $ 699 $ 1,417 $ 1,311

RUSSIAN OPERATIONS

RUSSIAN OPERATIONS	6 Months Ended
	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring, Impairment, and Other Activities Disclosure	NOTE 3. RUSSIAN OPERATIONS On March 17, 2022, the Board of Directors (the Board) decided to indefinitely suspend our operations in Russia due to the ongoing conflict in Ukraine. At the time of suspension, our Russian operations included a wholly-owned distributor in Russia, an unconsolidated joint venture (the Unconsolidated JV) with KAMAZ Publicly Traded Company (KAMAZ), a Russian truck manufacturer with whom we share the Unconsolidated JV, and direct sales into Russia from our other business segments. As a result of the suspension of operations, we evaluated the recoverability of assets in Russia and assessed other potential liabilities. We experienced and expect to continue to experience, an inability to collect customer receivables and may be the subject of litigation as a consequence of our suspension of commercial operations in Russia. We recorded a charge of $158 million in the first quarter related to these actions. In the second quarter, we recovered certain inventory and other expense amounts reserved in the first quarter and incurred some small additional charges resulting in a net recovery of $47 million. As of June 30, 2022, we had approximately $17 million of inventory and $26 million of receivables in Russia, all of which are fully reserved. In addition, we have cash balances of $84 million, some of which will be used to fund ongoing employee, tax and contract settlement obligations. The following summarizes the costs (recoveries) associated with the suspension of our Russian operations in our Condensed Consolidated Statements of Net Income: Three months ended Six months ended In millions June 30, June 30, Statement of Net Income Location Inventory write-downs $ (40) $ 19 Cost of sales Accounts receivable reserves — 43 Other operating expense, net Impairment and other joint venture costs — 31 Equity, royalty and interest income from investees Other (7) 18 Other operating expense, net Total $ (47) $ 111

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	6 Months Ended
	Jun. 30, 2022
Retirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	NOTE 4. PENSIONS AND OTHER POSTRETIREMENT BENEFITS We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit (OPEB) plans. Contributions to these plans were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Defined benefit pension contributions $ 6 $ 12 $ 39 $ 54 OPEB payments, net 6 5 16 14 Defined contribution pension plans 20 17 56 52 We anticipate making additional defined benefit pension contributions during the remainder of 2022 of $10 million for our U.S. and U.K. qualified and non-qualified pension 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 2022 annual net periodic pension cost to approximate $31 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 June 30, July 4, June 30, July 4, June 30, July 4, Service cost $ 34 $ 35 $ 8 $ 9 $ — $ — Interest cost 22 20 9 7 1 1 Expected return on plan assets (52) (50) (20) (22) — — Amortization of prior service cost — — — 1 — — Recognized net actuarial loss 6 12 — 8 — — Net periodic benefit cost (credit) $ 10 $ 17 $ (3) $ 3 $ 1 $ 1 Pension U.S. Plans U.K. Plans OPEB Six months ended In millions June 30, July 4, June 30, July 4, June 30, July 4, Service cost $ 68 $ 70 $ 16 $ 17 $ — $ — Interest cost 44 39 18 15 2 2 Expected return on plan assets (104) (100) (40) (43) — — Amortization of prior service cost — — — 1 — — Recognized net actuarial loss 12 24 1 16 — — Net periodic benefit cost (credit) $ 20 $ 33 $ (5) $ 6 $ 2 $ 2

EQUITY, ROYALTY AND INTEREST IN

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	6 Months Ended
	Jun. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	NOTE 5. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 14 $ 46 $ 28 $ 85 Dongfeng Cummins Engine Company, Ltd. 11 21 27 52 Chongqing Cummins Engine Company, Ltd. 7 10 16 20 Tata Cummins, Ltd. 5 1 14 7 All other manufacturers 13 28 3 (1) 83 Distribution entities Komatsu Cummins Chile, Ltda. 12 9 19 15 All other distributors 3 1 5 4 Cummins share of net income 65 116 112 266 Royalty and interest income 30 21 79 37 Equity, royalty and interest income from investees $ 95 $ 137 $ 191 $ 303 (1) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. In addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Cummins Westport Joint Venture. See NOTE 3, "RUSSIAN OPERATIONS," and NOTE 14, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Tax Disclosure	NOTE 6. INCOME TAXES Our effective tax rates for the three and six months ended June 30, 2022, were 17.3 percent and 21.1 percent, respectively. Our effective tax rates for the three and six months ended July 4, 2021, were 21.4 percent and 21.7 percent, respectively. The three months ended June 30, 2022, contained favorable discrete tax items of $36 million, primarily due to $36 million of favorable changes in tax reserves, $10 million of favorable changes associated with uncertainty in our Russian operations and $8 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of our filtration business. The six months ended June 30, 2022, contained favorable net discrete tax items of $5 million, primarily due to $27 million of favorable changes in tax reserves and $4 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of our filtration business and $8 million of unfavorable changes associated with uncertainty in our Russian operations. The three months ended July 4, 2021, contained unfavorable discrete items of $7 million, primarily due to a $10 million unfavorable statutory change in tax rates (mostly in the UK), partially offset by $3 million of other favorable discrete items. The six months ended July 4, 2021, contained unfavorable discrete items of $3 million, primarily due to a $10 million unfavorable statutory change in tax rates (mostly in the UK), partially offset by $7 million of other favorable discrete items.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 7. MARKETABLE SECURITIES A summary of marketable securities, all of which were classified as current, was as follows: June 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 296 $ — $ 296 $ 299 $ — $ 299 Debt mutual funds 220 (5) 215 254 2 256 Equity mutual funds 22 3 25 29 10 39 Debt securities — — — 1 — 1 Total marketable securities $ 538 $ (2) $ 536 $ 583 $ 12 $ 595 (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 six months ended June 30, 2022, or the year ended December 31, 2021. A description of the valuation techniques and inputs used for our Level 2 fair value measures is as follows: • Certificates of deposit — These investments provide us with a contractual rate of return and generally range in maturity from three months to five years. The counterparties to these investments are reputable financial institutions with investment grade credit ratings. Since these instruments are not tradable and must be settled directly by us with the respective financial institution, our fair value measure is the financial institution's month-end statement. • Debt mutual funds — The fair value 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. • 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: Six months ended In millions June 30, July 4, Proceeds from sales of marketable securities $ 346 $ 273 Proceeds from maturities of marketable securities 115 108 Investments in marketable securities - liquidations $ 461 $ 381

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 8. INVENTORIES Inventories are stated at the lower of cost or net realizable value. Inventories included the following: In millions June 30, December 31, Finished products $ 2,635 $ 2,538 Work-in-process and raw materials 2,349 2,009 Inventories at FIFO cost 4,984 4,547 Excess of FIFO over LIFO (219) (192) Total inventories $ 4,765 $ 4,355

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA	6 Months Ended
	Jun. 30, 2022
Balance Sheet Related Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET DATA	NOTE 9. SUPPLEMENTAL BALANCE SHEET DATA Other assets included the following: In millions June 30, December 31, Deferred income taxes $ 525 $ 428 Operating lease assets 430 444 Corporate owned life insurance 407 492 Other 514 402 Other assets $ 1,876 $ 1,766 Other accrued expenses included the following: In millions June 30, December 31, Marketing accruals $ 297 $ 303 Other taxes payable 195 234 Income taxes payable 152 107 Current portion of operating lease liabilities 120 128 Other 457 418 Other accrued expenses $ 1,221 $ 1,190 Other liabilities included the following: In millions June 30, December 31, Deferred income taxes $ 395 $ 403 Operating lease liabilities 315 326 Long-term income taxes 192 263 Accrued compensation 162 177 Mark-to-market valuation on interest rate derivatives 114 19 Other long-term liabilities 328 320 Other liabilities $ 1,506 $ 1,508

DEBT

DEBT	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
DEBT	NOTE 10. DEBT Loans Payable and Commercial Paper Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions June 30, December 31, Loans payable (1) $ 165 $ 208 Commercial paper 705 (2) 313 (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 1.33 percent at June 30, 2022. This included $105 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.20 percent and $600 million of borrowings under the U.S. program at a weighted-average interest rate of 1.60 percent. (3) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2021. This included $113 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.39 percent and $200 million of borrowings under the U.S. program at a weighted-average interest rate of 0.21 percent. We can issue up to $3.5 billion of unsecured, short-term promissory notes (commercial paper) pursuant to 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 acquisitions and general corporate purposes. Revolving Credit Facilities As of June 30, 2022, we had access to committed credit facilities totaling $3.5 billion, including the $1.5 billion 364-day facility that expires August 17, 2022 and our $2.0 billion five-year facility that expires on August 18, 2026. We intend to maintain credit facilities at the current or higher aggregate amounts by renewing or replacing these facilities at or before expiration. These revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings and general corporate purposes. There were no outstanding borrowings under these facilities at June 30, 2022 and December 31, 2021. At June 30, 2022, the $705 million of outstanding commercial paper effectively reduced the $3.5 billion of revolving credit capacity to $2.8 billion. At June 30, 2022, we also had an additional $271 million available for borrowings under our international and other domestic credit facilities. Long-term Debt A summary of long-term debt was as follows: In millions Interest Rate June 30, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 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) 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 149 110 Unamortized discount and deferred issuance costs (65) (68) Fair value adjustments due to hedge on indebtedness (85) 34 Finance leases 83 89 Total long-term debt 3,555 3,638 Less: Current maturities of long-term debt 65 59 Long-term debt $ 3,490 $ 3,579 (1) In 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 percent. Principal payments required on long-term debt during the next five years are as follows: In millions 2022 2023 2024 2025 2026 Principal payments $ 44 $ 545 $ 41 $ 508 $ 54 Interest Rate Risk Beginning in the second half of 2021, we entered into a series of interest rate swaps to effectively convert our $500 million senior notes, due in 2025, from a fixed rate of 0.75 percent to a floating rate equal to the three-month LIBOR plus a spread, and we also entered into a series of interest rate swaps to effectively convert $765 million of our $850 million senior notes, due in 2030, from a fixed rate of 1.50 percent to a floating rate equal to the three-month LIBOR plus a spread. The following table summarizes the gains and losses: Three months ended Six months ended In millions June 30, 2022 June 30, 2022 Type of Swap Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Interest rate swaps (1) $ (39) $ 34 $ (111) $ 114 (1) The difference between the gain (loss) on swaps and borrowings represents hedge ineffectiveness. 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 Six months ended Type of Swap June 30, July 4, June 30, July 4, Interest rate locks $ 43 $ (33) $ 82 $ 28 Fair Value of Debt Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows: In millions June 30, December 31, Fair value of total debt (1) $ 4,109 $ 4,461 Carrying value of total debt 4,425 4,159 (1) The fair value of debt is derived from Level 2 input measures. Shelf Registration As a well-known seasoned issuer, we filed an automatic shelf registration of an undetermined amount of debt and equity with the SEC on February 8, 2022. Under this shelf registration we may offer, from time to time, debt securities, common stock, preferred and preference stock, depositary shares, warrants, stock purchase contracts and stock purchase units.

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	6 Months Ended
	Jun. 30, 2022
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 11. PRODUCT WARRANTY LIABILITY A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued product campaigns, was as follows: Six months ended In millions June 30, July 4, Balance, beginning of year $ 2,425 $ 2,307 Provision for base warranties issued 267 302 Deferred revenue on extended warranty contracts sold 145 136 Provision for product campaigns issued 65 46 Payments made during period (289) (283) Amortization of deferred revenue on extended warranty contracts (146) (124) Changes in estimates for pre-existing product warranties (47) (74) Foreign currency translation and other 106 (1) (6) Balance, end of period $ 2,526 $ 2,304 (1) Includes $95 million of product warranty liability related to the acquisition of Cummins Westport Joint Venture. See NOTE 14, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information. We recognized supplier recoveries of $10 million and $23 million for the three and six months ended June 30, 2022, compared with $5 million and $9 million for the comparable periods in 2021. Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions June 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 296 $ 286 Current portion of deferred revenue Long-term portion 720 700 Deferred revenue Total $ 1,016 $ 986 Product warranty Current portion $ 796 $ 755 Current portion of accrued product warranty Long-term portion 714 684 Accrued product warranty Total $ 1,510 $ 1,439 Total warranty accrual $ 2,526 $ 2,425 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 June 30, 2022, the remaining accrual balance was $63 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. 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 June 28, 2022, KAMAZ was designated to the List of Specially Designated Nationals and Blocked Persons by the U.S. Department of the Treasury’s Office of Foreign Assets Control. We filed blocked property reports for relevant assets and are seeking relevant authorizations to extricate ourselves from our relationship with KAMAZ and its subsidiaries, including the Unconsolidated JV, in compliance with U.S. law. 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 as we strive 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. 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. In connection with these and other ongoing discussions with the EPA and CARB, we are developing a new software calibration and will recall model years 2013 through 2018 RAM 2500 and 3500 trucks. We accrued $30 million for the recall during the first quarter of 2022, an amount that reflects our current estimate of the cost of the recall. We will continue to work together closely with the relevant regulators to develop and implement recommendations for improvement and seek to reach further resolutions as part of our ongoing commitment to compliance. Due to the presence of many unknown facts and circumstances, we are not yet able to estimate any further financial impact of these matters. It is possible that the consequences of any remediation plans resulting from our formal review and these regulatory processes 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 June 30, 2022, the maximum potential loss related to these guarantees was $41 million. We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At June 30, 2022, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $126 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 June 30, 2022, the total commitments under these contracts were $91 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 $117 million at June 30, 2022. 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)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 13. ACCUMULATED OTHER COMPREHENSIVE LOSS Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended: In millions Change in pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at March 31, 2022 $ (330) $ (1,196) $ 11 $ (1,515) Other comprehensive income before reclassifications Before-tax amount — (235) 59 (176) $ (15) $ (191) Tax benefit (expense) 1 5 (15) (9) — (9) After-tax amount 1 (230) 44 (185) (15) (200) Amounts reclassified from accumulated other comprehensive income (loss) (1) 5 — (1) 4 — 4 Net current period other comprehensive income (loss) 6 (230) 43 (2) (181) $ (15) $ (196) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) Balance at April 4, 2021 $ (706) $ (1,260) $ 29 $ (1,937) Other comprehensive income before reclassifications Before-tax amount — 29 (45) (16) $ (7) $ (23) Tax benefit 1 — 9 10 — 10 After-tax amount 1 29 (36) (6) (7) (13) Amounts reclassified from accumulated other comprehensive income (loss) (1) 16 — (2) 14 — 14 Net current period other comprehensive income (loss) 17 29 (38) (2) 8 $ (7) $ 1 Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income 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 10, "DEBT," for additional information. Following are the changes in accumulated other comprehensive income (loss) by component for the six months ended: In millions Change in pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income before reclassifications Before-tax amount 14 (224) 95 (115) $ (23) $ (138) Tax (expense) benefit (3) 6 (22) (19) — (19) After-tax amount 11 (218) 73 (134) (23) (157) Amounts reclassified from accumulated other comprehensive income (loss) (1) 11 — (2) 9 — 9 Net current period other comprehensive income (loss) 22 (218) 71 (2) (125) $ (23) $ (148) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income before reclassifications Before-tax amount 15 (31) 48 32 $ (7) $ 25 Tax (expense) benefit (2) 4 (13) (11) — (11) After-tax amount 13 (27) 35 21 (7) 14 Amounts reclassified from accumulated other comprehensive income (loss) (1) 33 — (1) 32 — 32 Net current period other comprehensive income (loss) 46 (27) 34 (2) 53 $ (7) $ 46 Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income 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 10, "DEBT," for additional information.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2022
Business Combinations [Abstract]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 14. ACQUISITIONS On February 7, 2022, we purchased Westport Fuel System Inc.'s stake in the Cummins Westport Joint Venture. We will continue to operate the business as the sole owner. The purchase price was $42 million and was allocated primarily to cash, warranty and deferred revenue related to extended coverage contracts. The results of the business were reported in our Engine segment. Pro forma financial information for the acquisition was not presented as the effects are not material to our Condensed Consolidated Financial Statements. On April 8, 2022, we completed the acquisition of Jacobs Vehicle Systems business (Jacobs) from Altra Industrial Motion Corp. Sales of this business were $194 million in 2021. The purchase price was $346 million in cash, subject to typical adjustments related to closing working capital and other amounts and does not contain any contingent consideration. Jacobs is a supplier of engine braking, cylinder deactivation and start and stop thermal management technologies. The acquisition furthers our investment in key technologies and capabilities to drive growth, while securing our supply base. The preliminary purchase price allocation was as follows: In millions Cash $ 18 Accounts receivable 24 Inventory 15 Fixed assets 70 Intangible assets Customer relationships 108 Technology 31 Trade name 25 Goodwill 108 Accounts payable (21) Deferred tax liability, net (27) Other, net (5) Total purchase price $ 346 Customer relationship assets represent the value of the long-term strategic relationship the business has with its significant customers, which we are amortizing over nine years. The assets were valued using an income approach, specifically the "multi-period excess earnings" method, which identifies an estimated stream of revenues and expenses for a particular group of assets from which deductions of portions of the projected economic benefits, attributable to assets other than the subject asset (contributory assets), are deducted in order to isolate the prospective earnings of the subject asset. This value is considered a level 3 measurement under the GAAP fair value hierarchy. Key assumptions used in the valuation of customer relationships include: (1) a rate of return of 18 percent and (2) renewal probability assumptions. Technology assets primarily represent the associated patents and know how related to the engine braking and emission technology, which we are amortizing over a range of 7 to 12 years. Trade name represents the value of Jacobs trade names in the marketplace, which we are amortizing over 14 years. These assets were valued using the "relief-from-royalty" method, which is a combination of both the income approach and market approach that values a subject asset based on an estimate of the "relief" from the royalty expense that would be incurred if the subject asset were licensed from a third party. Key assumptions impacting these values include: (1) market royalty rates of 2 to 7 percent, (2) rates of return of 17 to 18 percent and (3) technology obsolescence of 7 to 10 percent. These values are considered a level 3 measurement under the GAAP fair value hierarchy. Annual amortization of the intangible assets for the next five years is expected to approximate $18 million. Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible and intangible assets and liabilities. Approximately $9 million of the goodwill is deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are Jacob’s expected future customers, new versions of technologies, an acquired workforce and other economic benefits that are anticipated to arise from future product sales and operational synergies from combining the business with Cummins. Included in our second quarter results were revenues of $37 million and income of $2 million related to this business. The results of this business were reported in our Components segment. Pro forma financial information for the acquisition was not presented as the effects are not material to our Condensed Consolidated Financial Statements. On February 21, 2022, we entered into an Agreement and Plan of Merger (the Merger Agreement) with Meritor, Inc. (Meritor) and Rose NewCo Inc. (Merger Sub) pursuant to which we agreed to acquire Meritor, a global leader of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. At closing, Merger Sub will merge into Meritor with Meritor as the surviving entity and becoming our wholly-owned subsidiary. This acquisition will be reported in our Components and New Power segments. Pursuant to the terms of the Merger Agreement, we agreed to pay $36.50 in cash per share of Meritor common stock. On May 26, 2022, Meritor's shareholders voted to approve the Merger Agreement. On August 3, 2022, we completed the acquisition of Meritor with a purchase price of $3.0 billion (including convertible debt). We repaid $250 million of Meritor's debt as part of the acquisition, and we intend to pay off an additio nal $310 million in the third quarter of 2022. The acquisition was funded with borrowings drawn under th e $2.0 billion term loan agreement and $1.3 billion of additional commercial paper borrowings. The integration of Meritor's people, products and capabilities in axle and brake technology will position us as a leading provider of integrated powertrain solutions across internal combustion and electric power applications. See NOTE 16, “SUBSEQUENT EVENTS,” for additional information related to the $2.0 billion loan agreement. Due to the timing of the acquisition, the initial purchase accounting is not yet complete and will follow in the third quarter Form 10-Q filing.

OPERATING SEGMENTS

OPERATING SEGMENTS	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 15. 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 Chief Executive 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 with innovative components and subsystems, including battery and fuel cell technologies. The New Power segment is currently in the development phase with a primary focus on research and development activities for our power systems, components and subsystems. 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 June 30, 2022 External sales $ 2,092 $ 2,247 $ 1,477 $ 734 $ 36 $ 6,586 Intersegment sales 683 6 473 469 6 1,637 Total sales 2,775 2,253 1,950 1,203 42 8,223 Research, development and engineering expenses 116 13 73 58 39 299 Equity, royalty and interest income (loss) from investees 59 21 9 10 (4) 95 Interest income 1 3 2 1 — 7 Russian suspension costs (recoveries) (1) 1 (45) (2) (1) — (47) Segment EBITDA 422 297 352 128 (80) 1,119 Depreciation and amortization (2) 49 29 49 31 8 166 Three months ended July 4, 2021 External sales $ 1,920 $ 1,913 $ 1,556 $ 699 $ 23 $ 6,111 Intersegment sales 571 7 438 444 1 1,461 Total sales 2,491 1,920 1,994 1,143 24 7,572 Research, development and engineering expenses 99 12 79 60 26 276 Equity, royalty and interest income (loss) from investees 104 15 12 9 (3) 137 Interest income 1 2 1 1 — 5 Segment EBITDA 402 201 301 139 (60) 983 Depreciation and amortization (2) 50 30 46 33 7 166 (1) See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. A portion of depreciation expense is included in Research, development and engineering expenses. Summarized financial information regarding our reportable operating segments for the six months ended is shown in the table below: In millions Engine Distribution Components Power Systems New Power Total Segments Six months ended June 30, 2022 External sales $ 4,141 $ 4,358 $ 2,994 $ 1,417 $ 61 $ 12,971 Intersegment sales 1,387 12 944 946 12 3,301 Total sales 5,528 4,370 3,938 2,363 73 16,272 Research, development and engineering expenses 225 26 149 122 75 597 Equity, royalty and interest income (loss) from investees 103 (1) 37 37 21 (7) 191 Interest income 5 5 3 2 — 15 Russian suspension costs (2) 33 (3) 55 4 19 — 111 Segment EBITDA 814 407 672 218 (147) 1,964 Depreciation and amortization (4) 100 57 92 62 15 326 Six months ended July 4, 2021 External sales $ 3,815 $ 3,740 $ 3,280 $ 1,311 $ 57 $ 12,203 Intersegment sales 1,135 15 866 854 2 2,872 Total sales 4,950 3,755 4,146 2,165 59 15,075 Research, development and engineering expenses 191 25 154 117 49 536 Equity, royalty and interest income from investees 217 32 31 21 2 303 Interest income 4 3 2 2 — 11 Segment EBITDA 756 361 722 265 (111) 1,993 Depreciation and amortization (4) 101 60 94 68 12 335 (1) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (2) See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (3) Includes $31 million of Russian suspension costs reflected in the Equity, royalty and interest income (loss) from investees line above. (4) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. The amortization of debt discount and deferred costs was $2 million and $2 million for the six months ended June 30, 2022 and July 4, 2021, 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 Six months ended In millions June 30, July 4, June 30, July 4, Total segment sales $ 8,223 $ 7,572 $ 16,272 $ 15,075 Elimination of intersegment sales (1,637) (1,461) (3,301) (2,872) Total net sales $ 6,586 $ 6,111 $ 12,971 $ 12,203 A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, TOTAL SEGMENT EBITDA $ 1,119 $ 983 $ 1,964 $ 1,993 Intersegment eliminations and other (1) (64) (9) (154) (39) Less: Interest expense 34 29 51 57 Depreciation and amortization 166 166 326 335 INCOME BEFORE INCOME TAXES 855 779 1,433 1,562 Less: Income tax expense 148 167 303 339 CONSOLIDATED NET INCOME 707 612 1,130 1,223 Less: Net income attributable to noncontrolling interests 5 12 10 20 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 702 $ 600 $ 1,120 $ 1,203 (1) Intersegment eliminations and other included $24 million and $41 million of costs associated with the planned separation of our Filtration business for the three and six months ended June 30, 2022.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	NOTE 16. SUBSEQUENT EVENTS On July 13, 2022, we entered into a loan agreement under which we may obtain delayed-draw loans in an amount up to $2.0 billion in the aggregate prior to October 13, 2022. We drew down the entire $2.0 billion balance on August 2, 2022, to help fund the acquisition of Meritor. The initial interest rate, based on the Secured Overnight Financing Rate for the one-month interest period plus the relevant spread, is 3.11 percent. The loan will mature on August 2, 2025. On August 3, 2022, we completed the acquisition of Meritor with a purchase price of $3.0 billion (including convertible debt). We borrowed an additional $1.3 billion under our commercial paper program to complete the acquisition. The acquisition reduced our borrowing capacity under the revolving credit facilities to $1.43 billion at the time of filing. See NOTE 14, "ACQUISITIONS," for additional information.

NATURE OF OPERATIONS AND BASI_2

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share were as follows: Three months ended Six months ended June 30, July 4, June 30, July 4, Options excluded 33,100 3,137 26,782 2,958

REVENUE RECOGNITION LONGTERM CO

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	6 Months Ended
	Jun. 30, 2022
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 June 30, December 31, Unbilled revenue $ 128 $ 100 Deferred revenue, primarily extended warranty 1,723 1,705

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	6 Months Ended
	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Three months ended Six months ended In millions June 30, July 4, June 30, July 4, United States $ 3,788 $ 3,263 $ 7,245 $ 6,323 China 520 832 1,173 1,789 India 311 217 620 547 Other international 1,967 1,799 3,933 3,544 Total net sales $ 6,586 $ 6,111 $ 12,971 $ 12,203
Engine
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Market	Engine segment external sales by market were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Heavy-duty truck $ 797 $ 666 $ 1,481 $ 1,279 Medium-duty truck and bus 620 477 1,211 960 Light-duty automotive 425 466 912 940 Total on-highway 1,842 1,609 3,604 3,179 Off-highway 250 311 537 636 Total sales $ 2,092 $ 1,920 $ 4,141 $ 3,815
Distribution
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	Distribution segment external sales by region were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, North America $ 1,491 $ 1,228 $ 2,862 $ 2,394 Asia Pacific 242 226 486 439 Europe 177 161 320 324 China 99 74 181 159 Russia 75 66 211 123 Latin America 56 48 97 88 Africa and Middle East 55 69 101 123 India 52 41 100 90 Total sales $ 2,247 $ 1,913 $ 4,358 $ 3,740
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Parts $ 987 $ 763 $ 1,913 $ 1,517 Power generation 440 452 838 868 Engines 428 349 866 682 Service 392 349 741 673 Total sales $ 2,247 $ 1,913 $ 4,358 $ 3,740
Components
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Components segment external sales by business were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Emission solutions $ 767 $ 801 $ 1,575 $ 1,767 Filtration 319 303 627 604 Turbo technologies 195 207 392 432 Automated transmissions 143 147 277 262 Electronics and fuel systems 53 98 123 215 Total sales $ 1,477 $ 1,556 $ 2,994 $ 3,280
Power Systems
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Power Systems segment external sales by product line were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Power generation $ 408 $ 381 $ 807 $ 732 Industrial 213 233 401 412 Generator technologies 113 85 209 167 Total sales $ 734 $ 699 $ 1,417 $ 1,311

RUSSIAN OPERATIONS (Tables)

RUSSIAN OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Three months ended Six months ended In millions June 30, June 30, Statement of Net Income Location Inventory write-downs $ (40) $ 19 Cost of sales Accounts receivable reserves — 43 Other operating expense, net Impairment and other joint venture costs — 31 Equity, royalty and interest income from investees Other (7) 18 Other operating expense, net Total $ (47) $ 111

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2022
Retirement Benefits [Abstract]
Schedule Benefit Plans Disclosures Cash Contributions	Contributions to these plans were as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Defined benefit pension contributions $ 6 $ 12 $ 39 $ 54 OPEB payments, net 6 5 16 14 Defined contribution pension plans 20 17 56 52
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 June 30, July 4, June 30, July 4, June 30, July 4, Service cost $ 34 $ 35 $ 8 $ 9 $ — $ — Interest cost 22 20 9 7 1 1 Expected return on plan assets (52) (50) (20) (22) — — Amortization of prior service cost — — — 1 — — Recognized net actuarial loss 6 12 — 8 — — Net periodic benefit cost (credit) $ 10 $ 17 $ (3) $ 3 $ 1 $ 1 Pension U.S. Plans U.K. Plans OPEB Six months ended In millions June 30, July 4, June 30, July 4, June 30, July 4, Service cost $ 68 $ 70 $ 16 $ 17 $ — $ — Interest cost 44 39 18 15 2 2 Expected return on plan assets (104) (100) (40) (43) — — Amortization of prior service cost — — — 1 — — Recognized net actuarial loss 12 24 1 16 — — Net periodic benefit cost (credit) $ 20 $ 33 $ (5) $ 6 $ 2 $ 2

EQUITY, ROYALTY AND INTEREST _2

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Tables)	6 Months Ended
	Jun. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
Equity, royalty and interest income from investees	Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, Manufacturing entities Beijing Foton Cummins Engine Co., Ltd. $ 14 $ 46 $ 28 $ 85 Dongfeng Cummins Engine Company, Ltd. 11 21 27 52 Chongqing Cummins Engine Company, Ltd. 7 10 16 20 Tata Cummins, Ltd. 5 1 14 7 All other manufacturers 13 28 3 (1) 83 Distribution entities Komatsu Cummins Chile, Ltda. 12 9 19 15 All other distributors 3 1 5 4 Cummins share of net income 65 116 112 266 Royalty and interest income 30 21 79 37 Equity, royalty and interest income from investees $ 95 $ 137 $ 191 $ 303 (1) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. In addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Cummins Westport Joint Venture. See NOTE 3, "RUSSIAN OPERATIONS," and NOTE 14, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Summary of marketable securities	A summary of marketable securities, all of which were classified as current, was as follows: June 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 296 $ — $ 296 $ 299 $ — $ 299 Debt mutual funds 220 (5) 215 254 2 256 Equity mutual funds 22 3 25 29 10 39 Debt securities — — — 1 — 1 Total marketable securities $ 538 $ (2) $ 536 $ 583 $ 12 $ 595 (1) Unrealized gains and losses for debt securities are recorded in other comprehensive income while unrealized gains and losses for equity securities are recorded in other income, net in our Condensed Consolidated Statements of Net Income .
Schedule of proceeds from sales and maturities	The proceeds from sales and maturities of marketable securities were as follows: Six months ended In millions June 30, July 4, Proceeds from sales of marketable securities $ 346 $ 273 Proceeds from maturities of marketable securities 115 108 Investments in marketable securities - liquidations $ 461 $ 381

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories included the following: In millions June 30, December 31, Finished products $ 2,635 $ 2,538 Work-in-process and raw materials 2,349 2,009 Inventories at FIFO cost 4,984 4,547 Excess of FIFO over LIFO (219) (192) Total inventories $ 4,765 $ 4,355

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	6 Months Ended
	Jun. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of Other Assets	Other assets included the following: In millions June 30, December 31, Deferred income taxes $ 525 $ 428 Operating lease assets 430 444 Corporate owned life insurance 407 492 Other 514 402 Other assets $ 1,876 $ 1,766
Accrued Expenses	Other accrued expenses included the following: In millions June 30, December 31, Marketing accruals $ 297 $ 303 Other taxes payable 195 234 Income taxes payable 152 107 Current portion of operating lease liabilities 120 128 Other 457 418 Other accrued expenses $ 1,221 $ 1,190
Other Noncurrent Liabilities	Other liabilities included the following: In millions June 30, December 31, Deferred income taxes $ 395 $ 403 Operating lease liabilities 315 326 Long-term income taxes 192 263 Accrued compensation 162 177 Mark-to-market valuation on interest rate derivatives 114 19 Other long-term liabilities 328 320 Other liabilities $ 1,506 $ 1,508

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of Short-term Debt	Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions June 30, December 31, Loans payable (1) $ 165 $ 208 Commercial paper 705 (2) 313 (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 1.33 percent at June 30, 2022. This included $105 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.20 percent and $600 million of borrowings under the U.S. program at a weighted-average interest rate of 1.60 percent. (3) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2021. This included $113 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.39 percent and $200 million of borrowings under the U.S. program at a weighted-average interest rate of 0.21 percent.
Summary of long-term debt	A summary of long-term debt was as follows: In millions Interest Rate June 30, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 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) 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 149 110 Unamortized discount and deferred issuance costs (65) (68) Fair value adjustments due to hedge on indebtedness (85) 34 Finance leases 83 89 Total long-term debt 3,555 3,638 Less: Current maturities of long-term debt 65 59 Long-term debt $ 3,490 $ 3,579 (1) In 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 percent.
Principal repayments on long-term debt	Principal payments required on long-term debt during the next five years are as follows: In millions 2022 2023 2024 2025 2026 Principal payments $ 44 $ 545 $ 41 $ 508 $ 54
Schedule of Interest Rate Derivatives	The following table summarizes the gains and losses: Three months ended Six months ended In millions June 30, 2022 June 30, 2022 Type of Swap Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Interest rate swaps (1) $ (39) $ 34 $ (111) $ 114 (1) The difference between the gain (loss) on swaps and borrowings represents hedge ineffectiveness.
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 Six months ended Type of Swap June 30, July 4, June 30, July 4, Interest rate locks $ 43 $ (33) $ 82 $ 28
Fair value and carrying value of total debt	Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows: In millions June 30, December 31, Fair value of total debt (1) $ 4,109 $ 4,461 Carrying value of total debt 4,425 4,159 (1) The fair value of debt is derived from Level 2 input measures.

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2022
Product Warranties Disclosures [Abstract]
Summary of activity in the product warranty account	A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued product campaigns, was as follows: Six months ended In millions June 30, July 4, Balance, beginning of year $ 2,425 $ 2,307 Provision for base warranties issued 267 302 Deferred revenue on extended warranty contracts sold 145 136 Provision for product campaigns issued 65 46 Payments made during period (289) (283) Amortization of deferred revenue on extended warranty contracts (146) (124) Changes in estimates for pre-existing product warranties (47) (74) Foreign currency translation and other 106 (1) (6) Balance, end of period $ 2,526 $ 2,304 (1) Includes $95 million of product warranty liability related to the acquisition of Cummins Westport Joint Venture. See NOTE 14, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.
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 June 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 296 $ 286 Current portion of deferred revenue Long-term portion 720 700 Deferred revenue Total $ 1,016 $ 986 Product warranty Current portion $ 796 $ 755 Current portion of accrued product warranty Long-term portion 714 684 Accrued product warranty Total $ 1,510 $ 1,439 Total warranty accrual $ 2,526 $ 2,425

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2022
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 March 31, 2022 $ (330) $ (1,196) $ 11 $ (1,515) Other comprehensive income before reclassifications Before-tax amount — (235) 59 (176) $ (15) $ (191) Tax benefit (expense) 1 5 (15) (9) — (9) After-tax amount 1 (230) 44 (185) (15) (200) Amounts reclassified from accumulated other comprehensive income (loss) (1) 5 — (1) 4 — 4 Net current period other comprehensive income (loss) 6 (230) 43 (2) (181) $ (15) $ (196) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) Balance at April 4, 2021 $ (706) $ (1,260) $ 29 $ (1,937) Other comprehensive income before reclassifications Before-tax amount — 29 (45) (16) $ (7) $ (23) Tax benefit 1 — 9 10 — 10 After-tax amount 1 29 (36) (6) (7) (13) Amounts reclassified from accumulated other comprehensive income (loss) (1) 16 — (2) 14 — 14 Net current period other comprehensive income (loss) 17 29 (38) (2) 8 $ (7) $ 1 Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income 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 10, "DEBT," for additional information. Following are the changes in accumulated other comprehensive income (loss) by component for the six months ended: In millions Change in pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income before reclassifications Before-tax amount 14 (224) 95 (115) $ (23) $ (138) Tax (expense) benefit (3) 6 (22) (19) — (19) After-tax amount 11 (218) 73 (134) (23) (157) Amounts reclassified from accumulated other comprehensive income (loss) (1) 11 — (2) 9 — 9 Net current period other comprehensive income (loss) 22 (218) 71 (2) (125) $ (23) $ (148) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income before reclassifications Before-tax amount 15 (31) 48 32 $ (7) $ 25 Tax (expense) benefit (2) 4 (13) (11) — (11) After-tax amount 13 (27) 35 21 (7) 14 Amounts reclassified from accumulated other comprehensive income (loss) (1) 33 — (1) 32 — 32 Net current period other comprehensive income (loss) 46 (27) 34 (2) 53 $ (7) $ 46 Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income 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 10, "DEBT," for additional information.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The preliminary purchase price allocation was as follows: In millions Cash $ 18 Accounts receivable 24 Inventory 15 Fixed assets 70 Intangible assets Customer relationships 108 Technology 31 Trade name 25 Goodwill 108 Accounts payable (21) Deferred tax liability, net (27) Other, net (5) Total purchase price $ 346

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 External sales $ 2,092 $ 2,247 $ 1,477 $ 734 $ 36 $ 6,586 Intersegment sales 683 6 473 469 6 1,637 Total sales 2,775 2,253 1,950 1,203 42 8,223 Research, development and engineering expenses 116 13 73 58 39 299 Equity, royalty and interest income (loss) from investees 59 21 9 10 (4) 95 Interest income 1 3 2 1 — 7 Russian suspension costs (recoveries) (1) 1 (45) (2) (1) — (47) Segment EBITDA 422 297 352 128 (80) 1,119 Depreciation and amortization (2) 49 29 49 31 8 166 Three months ended July 4, 2021 External sales $ 1,920 $ 1,913 $ 1,556 $ 699 $ 23 $ 6,111 Intersegment sales 571 7 438 444 1 1,461 Total sales 2,491 1,920 1,994 1,143 24 7,572 Research, development and engineering expenses 99 12 79 60 26 276 Equity, royalty and interest income (loss) from investees 104 15 12 9 (3) 137 Interest income 1 2 1 1 — 5 Segment EBITDA 402 201 301 139 (60) 983 Depreciation and amortization (2) 50 30 46 33 7 166 (1) See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. A portion of depreciation expense is included in Research, development and engineering expenses. Summarized financial information regarding our reportable operating segments for the six months ended is shown in the table below: In millions Engine Distribution Components Power Systems New Power Total Segments Six months ended June 30, 2022 External sales $ 4,141 $ 4,358 $ 2,994 $ 1,417 $ 61 $ 12,971 Intersegment sales 1,387 12 944 946 12 3,301 Total sales 5,528 4,370 3,938 2,363 73 16,272 Research, development and engineering expenses 225 26 149 122 75 597 Equity, royalty and interest income (loss) from investees 103 (1) 37 37 21 (7) 191 Interest income 5 5 3 2 — 15 Russian suspension costs (2) 33 (3) 55 4 19 — 111 Segment EBITDA 814 407 672 218 (147) 1,964 Depreciation and amortization (4) 100 57 92 62 15 326 Six months ended July 4, 2021 External sales $ 3,815 $ 3,740 $ 3,280 $ 1,311 $ 57 $ 12,203 Intersegment sales 1,135 15 866 854 2 2,872 Total sales 4,950 3,755 4,146 2,165 59 15,075 Research, development and engineering expenses 191 25 154 117 49 536 Equity, royalty and interest income from investees 217 32 31 21 2 303 Interest income 4 3 2 2 — 11 Segment EBITDA 756 361 722 265 (111) 1,993 Depreciation and amortization (4) 101 60 94 68 12 335 (1) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (2) See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (3) Includes $31 million of Russian suspension costs reflected in the Equity, royalty and interest income (loss) from investees line above. (4) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. The amortization of debt discount and deferred costs was $2 million and $2 million for the six months ended June 30, 2022 and July 4, 2021, 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 Six months ended In millions June 30, July 4, June 30, July 4, Total segment sales $ 8,223 $ 7,572 $ 16,272 $ 15,075 Elimination of intersegment sales (1,637) (1,461) (3,301) (2,872) Total net sales $ 6,586 $ 6,111 $ 12,971 $ 12,203
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Six months ended In millions June 30, July 4, June 30, July 4, TOTAL SEGMENT EBITDA $ 1,119 $ 983 $ 1,964 $ 1,993 Intersegment eliminations and other (1) (64) (9) (154) (39) Less: Interest expense 34 29 51 57 Depreciation and amortization 166 166 326 335 INCOME BEFORE INCOME TAXES 855 779 1,433 1,562 Less: Income tax expense 148 167 303 339 CONSOLIDATED NET INCOME 707 612 1,130 1,223 Less: Net income attributable to noncontrolling interests 5 12 10 20 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 702 $ 600 $ 1,120 $ 1,203 (1) Intersegment eliminations and other included $24 million and $41 million of costs associated with the planned separation of our Filtration business for the three and six months ended June 30, 2022.

NATURE OF OPERATIONS AND BASI_3

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 shares	Jul. 04, 2021 shares	Jun. 30, 2022 location country shares	Jul. 04, 2021 shares
Real Estate Properties [Line Items]
Company Owned and Independent Distributor Locations Number			500
Countries and Territories Number | country			190
Options excluded (in shares) | shares	33,100	3,137	26,782	2,958
Minimum
Real Estate Properties [Line Items]
Dealer Locations Number			10,000

REVENUE RECOGNITION LONGTERM _2

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 723		$ 723
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled revenue	128		128		$ 100
Deferred revenue, primarily extended warranty	1,723		1,723		$ 1,705
Contract with Customer, Liability, Revenue Recognized	176	$ 133	416	$ 302
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 128		$ 128
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]: 2023-07-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 595		$ 595
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years		10 years

REVENUE RECOGNITION DISAGGREG_3

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)	[1]	$ 6,586	$ 6,111	$ 12,971	$ 12,203
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		797	666	1,481	1,279
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		620	477	1,211	960
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		425	466	912	940
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,842	1,609	3,604	3,179
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		250	311	537	636
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		987	763	1,913	1,517
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		440	452	838	868
Engines (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		428	349	866	682
Service (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		392	349	741	673
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		767	801	1,575	1,767
Filtration (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		319	303	627	604
Turbo technologies (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		195	207	392	432
Automated Transmissions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		143	147	277	262
Electronics and Fuel systems (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		53	98	123	215
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		408	381	807	732
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		213	233	401	412
Generator technologies (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		113	85	209	167
Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,775	2,491	5,528	4,950
Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,253	1,920	4,370	3,755
Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,950	1,994	3,938	4,146
Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,203	1,143	2,363	2,165
External Sales | Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,092	1,920	4,141	3,815
External Sales | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,247	1,913	4,358	3,740
External Sales | Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,477	1,556	2,994	3,280
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		734	699	1,417	1,311
UNITED STATES
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		3,788	3,263	7,245	6,323
CHINA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		520	832	1,173	1,789
CHINA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		99	74	181	159
INDIA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		311	217	620	547
INDIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		52	41	100	90
OTHER INTERNATIONAL
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,967	1,799	3,933	3,544
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,491	1,228	2,862	2,394
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		242	226	486	439
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		177	161	320	324
RUSSIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		75	66	211	123
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		56	48	97	88
AFRICA AND MIDDLE EAST | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		$ 55	$ 69	$ 101	$ 123
[1] (a) Includes sales to nonconsolidated equity investees of $281 million and $625 million for the three and six months ended June 30, 2022, compared with $423 million and $901 million for the comparable periods in 2021.

RUSSIAN OPERATIONS (Details)

RUSSIAN OPERATIONS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2022	Jul. 04, 2021	Dec. 31, 2021
Restructuring and Related Activities [Abstract]
Inventory Write-down	$ (40)		$ 19
Accounts Receivable, Allowance for Credit Loss, Writeoff	0		43
Impairment of Equity Method Investment	0		31
Other Restructuring Costs	(7)		18
Russian suspension costs (recoveries)	(47)	$ 158	111	$ 0
Total Restructuring Charges
Inventories (Note 8)	4,765		4,765		$ 4,355
Trade and other	3,869		3,869		3,565
Cash and cash equivalents	2,462		2,462	$ 2,481	$ 2,592
RUSSIA
Total Restructuring Charges
Inventories (Note 8)	17		17
Trade and other	26		26
Cash and cash equivalents	$ 84		$ 84

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021	Jul. 01, 2022
Pension and other postretirement benefits
Defined contribution pension plans	$ 20	$ 17	$ 56	$ 52
Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	6	12	39	54
Other Postretirement Benefits Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	6	5	16	14
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	1	1	2	2
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	1	2	2
Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year					$ 10
Net periodic pension cost					$ 31
UNITED STATES | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	34	35	68	70
Interest cost	22	20	44	39
Expected return on plan assets	(52)	(50)	(104)	(100)
Amortization of prior service cost	0	0	0	0
Recognized net actuarial loss	6	12	12	24
Net periodic benefit cost	10	17	20	33
UNITED KINGDOM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	8	9	16	17
Interest cost	9	7	18	15
Expected return on plan assets	(20)	(22)	(40)	(43)
Amortization of prior service cost	0	1	0	1
Recognized net actuarial loss		8	1	16
Net periodic benefit cost	$ (3)	$ 3	$ (5)	$ 6

EQUITY, ROYALTY AND INTEREST _3

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	$ 95	$ 137	$ 191	$ 303
Impairment of Equity Method Investment	0		31
Beijing Foton Cummins Engine Company
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	14	46	28	85
Dongfeng Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	11	21	27	52
Chongqing Cummins Engine Company, Ltd.
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	7	10	16	20
Tata Cummins, Ltd.
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	5	1	14	7
All other manufacturers
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	13	28	3	83
Komatsu Cummins Chile, Ltda. (Distribution)
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	12	9	19	15
All other distributors
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	3	1	5	4
Cummin's Share of Equity Earnings
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	65	116	112	266
Joint Venture with KAMAZ
Equity, royalty and interest income from investees
Impairment of Equity Method Investment			28
Royalty charges
Equity, royalty and interest income from investees
Impairment of Equity Method Investment			3
Royalty and interest income
Equity, royalty and interest income from investees
Equity, royalty and interest income (loss) from investees	$ 30	$ 21	$ 79	$ 37

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	17.30%	21.40%	21.10%	21.70%
Discrete Tax Expense (Benefit)	$ (36)	$ 7	$ (5)	$ 3
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	(36)	10	(27)	10
Uncertainty in Russian Operations Tax Adjustments	(10)		8
Other Discrete Tax Expenses	(8)	$ (3)	(4)	$ (7)
Tax costs associated with internal restructuring	$ 18		$ 18

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Dec. 31, 2021
Schedule of Available-for-sale Securities
Debt Securities, Available-for-sale, Amortized Cost			$ 1
Debt Securities, Available for sale, Unrealized Gain (Loss)	$ 0		0
Debt Securities, Available-for-sale			1
Debt Securities, Trading, and Equity Securities, FV-NI, Cost	538		583
Marketable Securities, Unrealized Gain / (Loss)	(2)		12
Marketable securities	536		595
Proceeds from Sale of Held-to-maturity Securities	346	$ 273
Proceeds from Maturity of Marketable Securities	115	108
Proceeds from sales and maturities of marketable securities	461	$ 381
Certificates of deposit
Schedule of Available-for-sale Securities
Equity Securities, cost	296		299
Equity Securities, Unrealized Gain (Loss)	0		0
Equity Securities, Fair Value	296		299
Debt Mutual Funds
Schedule of Available-for-sale Securities
Equity Securities, cost	220		254
Equity Securities, Unrealized Gain (Loss)	(5)		2
Equity Securities, Fair Value	215		256
Equity mutual funds
Schedule of Available-for-sale Securities
Equity Securities, cost	22		29
Equity Securities, Unrealized Gain (Loss)	3		10
Equity Securities, Fair Value	$ 25		$ 39
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	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished products	$ 2,635	$ 2,538
Work-in-process and raw materials	2,349	2,009
Inventories at FIFO cost	4,984	4,547
Excess of FIFO over LIFO	(219)	(192)
Total inventories	$ 4,765	$ 4,355

SUPPLEMENTAL BALANCE SHEET DA_3

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Deferred income taxes	$ 525	$ 428
Operating lease assets	430	444
Corporate owned life insurance	407	492
Other Assets, Miscellaneous, Noncurrent	514	402
Other assets	1,876	1,766
Marketing accruals	297	303
Other taxes payable	195	234
Income taxes payable	152	107
Current portion of operating lease liabilities	120	128
Other Accrued Liabilities, Current	457	418
Other accrued expenses	1,221	1,190
Deferred income taxes	395	403
Operating lease liabilities	315	326
Long-term income taxes	192	263
Accrued compensation	162	177
Mark-to-market valuation on interest rate derivatives	114	19
Other Accrued Liabilities, Noncurrent	328	320
Other liabilities	$ 1,506	$ 1,508

DEBT (Details)

DEBT (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021	Dec. 31, 2021	Aug. 18, 2021
Short-term Debt [Line Items]
Loans payable	$ 165		$ 165		$ 208
Commercial paper	705		705		313
Line of Credit Facility, Maximum Borrowing Capacity	3,500		3,500
Line of Credit Facility, Remaining Borrowing Capacity	2,800		2,800
Long-term debt
Other Long-term Debt	149		149		110
Unamortized discount and deferred issuance costs	(65)		(65)		(68)
Fair value adjustments due to hedge on indebtedness			(85)		34
Finance Lease, Liability	83		83		89
Total long-term debt	3,555		3,555		3,638
Current maturities of long-term debt	65		65		59
Long-term debt	3,490		3,490		3,579
Principal payments
2022	44		44
2023	545		545
2024	41		41
2025	508		508
2026	54		54
Gain (Loss) on Swaps	(39)		(111)
Gain (Loss) on Borrowings	34		114
Fair value
Fair value of total debt	4,109		4,109		4,461
Carrying value of total debt	4,425		4,425		4,159
5-Year Revolving Credit Facility
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						$ 2,000
1-year revolving credit agreement
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						$ 1,500
EUROPE
Short-term Debt [Line Items]
Commercial paper	105		105		113
UNITED STATES
Short-term Debt [Line Items]
Commercial paper	600		600		$ 200
Interest Rate Swap
Principal payments
Derivative, Notional Amount	500		500
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax	$ 43	$ (33)	$ 82	$ 28
Commercial Paper
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time	1.33%		1.33%		(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	(0.20%)		(0.20%)		(0.39%)
Commercial Paper | UNITED STATES
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time	1.60%		1.60%		0.21%
International and Other Lines of Credit
Short-term Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 271		$ 271
Senior notes, due 2023
Long-term debt
Unsecured Debt	$ 500		$ 500		$ 500
Debt instrument interest rate (as a percent)	3.65%		3.65%
Senior notes, due 2025(1)
Long-term debt
Unsecured Debt	$ 500		$ 500		500
Debt instrument interest rate (as a percent)	0.75%		0.75%
Senior notes, due 2025(1) | London Interbank Offered Rate (LIBOR)
Principal payments
Debt Instrument, Description of Variable Rate Basis			LIBOR
Debentures, due 2027
Long-term debt
Unsecured Debt	$ 58		$ 58		58
Debt instrument interest rate (as a percent)	6.75%		6.75%
Debentures, due 2028
Long-term debt
Unsecured Debt	$ 250		$ 250		250
Debt instrument interest rate (as a percent)	7.125%		7.125%
Senior Notes 1.50 Percent, Due 2030
Long-term debt
Unsecured Debt	$ 850		$ 850		850
Debt instrument interest rate (as a percent)	1.50%		1.50%
Senior Notes 1.50 Percent, Due 2030 | London Interbank Offered Rate (LIBOR)
Principal payments
Debt Instrument, Description of Variable Rate Basis			LIBOR
Senior Notes 1.50 Percent, Due 2030 | Interest Rate Swap
Principal payments
Derivative, Notional Amount	$ 765		$ 765
Senior notes, due 2043
Long-term debt
Unsecured Debt	$ 500		$ 500		500
Debt instrument interest rate (as a percent)	4.875%		4.875%
Senior notes, due 2050
Long-term debt
Unsecured Debt	$ 650		$ 650		650
Debt instrument interest rate (as a percent)	2.60%		2.60%
Debentures, due 2098(2)
Long-term debt
Unsecured Debt	$ 165		$ 165		$ 165
Debt instrument interest rate (as a percent)	5.65%		5.65%
Effective interest rate (as a percent)	7.48%		7.48%

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Footnote Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021	Dec. 31, 2021
Product Warranties Disclosures [Abstract]
Balance, beginning of year			$ 2,425	$ 2,307
Provision for base warranties issued			267	302
Deferred revenue on extended warranty contracts sold			145	136
Provision for product campaigns issued			65	46
Payments made during period			(289)	(283)
Amortization of deferred revenue on extended warranty contracts			(146)	(124)
Changes in estimates for pre-existing product warranties			(47)	(74)
Foreign currency translation and other			106	(6)
Balance, end of period	$ 2,526	$ 2,304	2,526	2,304
Supplier recoveries	10	$ 5	23	$ 9
Product Warranty Liability
Current portion of warranty related deferred revenue	871		871		$ 855
Long term portion of warranty related deferred revenue	852		852		850
Deferred Revenue Related to extended coverage, Total	1,016		1,016		986
Current portion of accrued product warranty	796		796		755
Long-term portion of accrued product warranty	714		714		684
Standard Product Warranty Accrual	1,510		1,510		1,439
Westport Fuel System Inc.
Product Warranties Disclosures [Abstract]
Standard Product Warranty Accrual, Additions from Business Acquisition			95
Product Warranty Liability
Standard Product Warranty Accrual, Additions from Business Acquisition			95
Current portion of deferred revenue
Product Warranty Liability
Current portion of warranty related deferred revenue	296		296		286
Deferred revenue
Product Warranty Liability
Long term portion of warranty related deferred revenue	720		720		700
Current portion of accrued product warranty
Product Warranty Liability
Current portion of accrued product warranty	796		796		755
Accrued product warranty
Product Warranty Liability
Long-term portion of accrued product warranty	$ 714		$ 714		$ 684

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
	Mar. 31, 2022	Dec. 31, 2020	Jul. 01, 2018	Dec. 31, 2020	Jun. 30, 2022
Guarantees and Product Warranties [Abstract]
Provision for product campaigns issued	$ 30	$ 20	$ 410	$ 430
Engine System Campaign Accrual, Present Value					$ 63

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	18 Months Ended	48 Months Ended
	Mar. 31, 2022	Dec. 31, 2020	Jun. 30, 2022	Jul. 01, 2018	Dec. 31, 2020
Guarantee Obligations
Provision for product campaigns issued	$ 30	$ 20		$ 410	$ 430
Guarantor obligations, maximum potential loss			$ 41
Long-term purchase commitment, penalty exposure			126
Total commitments under commodity contracts			91
Performance Bonds and Other Performance Guarantees			$ 117
Maximum
Guarantee Obligations
Forward Contract, Term			two years

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period			$ (1,571)
Before tax amount	$ (191)	$ (23)	(138)	$ 25
Tax (expense) benefit	(9)	10	(19)	(11)
After tax amount	(200)	(13)	(157)	14
Amounts reclassified from accumulated other comprehensive income (loss)(1)	4	14	9	32
Net current period other comprehensive income (loss)	(196)	1	(148)	46
Balance at the end of the period	(1,696)		(1,696)
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	(330)	(706)	(346)	(735)
Before tax amount	0	0	14	15
Tax (expense) benefit	1	1	(3)	(2)
After tax amount	1	1	11	13
Amounts reclassified from accumulated other comprehensive income (loss)(1)	5	16	11	33
Net current period other comprehensive income (loss)	6	17	22	46
Balance at the end of the period	(324)	(689)	(324)	(689)
Foreign currency translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,196)	(1,260)	(1,208)	(1,204)
Before tax amount	(235)	29	(224)	(31)
Tax (expense) benefit	5	0	6	4
After tax amount	(230)	29	(218)	(27)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	0	0	0
Net current period other comprehensive income (loss)	(230)	29	(218)	(27)
Balance at the end of the period	(1,426)	(1,231)	(1,426)	(1,231)
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	11	29	(17)	(43)
Before tax amount	59	(45)	95	48
Tax (expense) benefit	(15)	9	(22)	(13)
After tax amount	44	(36)	73	35
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(1)	(2)	(2)	(1)
Net current period other comprehensive income (loss)	43	(38)	71	34
Balance at the end of the period	54	(9)	54	(9)
Total attributable to Cummins Inc.
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,515)	(1,937)	(1,571)	(1,982)
Before tax amount	(176)	(16)	(115)	32
Tax (expense) benefit	(9)	10	(19)	(11)
After tax amount	(185)	(6)	(134)	21
Amounts reclassified from accumulated other comprehensive income (loss)(1)	4	14	9	32
Net current period other comprehensive income (loss)	(181)	8	(125)	53
Balance at the end of the period	(1,696)	(1,929)	(1,696)	(1,929)
Noncontrolling interests
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Before tax amount	(15)	(7)	(23)	(7)
Tax (expense) benefit	0	0	0	0
After tax amount	(15)	(7)	(23)	(7)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	0	0
Net current period other comprehensive income (loss)	$ (15)	$ (7)	$ (23)	$ (7)

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Millions					3 Months Ended		6 Months Ended		12 Months Ended
		Aug. 03, 2022	Apr. 08, 2022	Feb. 07, 2022	Jun. 30, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021	Dec. 31, 2021	Jul. 13, 2022
Business Acquisition [Line Items]
Goodwill					$ 1,391		$ 1,391		$ 1,287
NET SALES (a) (Note 2)	[1]				6,586	$ 6,111	12,971	$ 12,203
Line of Credit Facility, Maximum Borrowing Capacity					3,500		3,500
Commercial paper (Note 10)					705		$ 705		313
Subsequent Event
Business Acquisition [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity										$ 2,000
Westport Fuel System Inc.
Business Acquisition [Line Items]
Business Combination, Consideration Transferred				$ 42
Jacobs Vehicle Systems
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			$ 346
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period									$ 194
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents			18
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables			24
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory			15
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			70
Goodwill			108
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable			(21)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities			(27)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			(5)
Amortization of Intangible Assets			18
Business Acquisition, Goodwill, Expected Tax Deductible Amount			9
NET SALES (a) (Note 2)					37
Income (Loss) from Subsidiaries, Net of Tax					$ 2
Jacobs Vehicle Systems | Customer Relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 108
Finite-Lived Intangible Asset, Useful Life			9 years
Fair Value Inputs, Rate of Return			18%
Jacobs Vehicle Systems | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 31
Jacobs Vehicle Systems | Trade Names
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 25
Finite-Lived Intangible Asset, Useful Life			14 years
Jacobs Vehicle Systems | Minimum | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			7 years
Jacobs Vehicle Systems | Minimum | Trade Names
Business Acquisition [Line Items]
Fair Value Inputs, Rate of Return			17%
Fair Value Inputs, Market Royalty Rate			2%
Fair Value Inputs, Economic Depreciation Rate			7%
Jacobs Vehicle Systems | Maximum | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			12 years
Jacobs Vehicle Systems | Maximum | Trade Names
Business Acquisition [Line Items]
Fair Value Inputs, Rate of Return			18%
Fair Value Inputs, Market Royalty Rate			7%
Fair Value Inputs, Economic Depreciation Rate			10%
Meritor Inc.
Business Acquisition [Line Items]
Business Acquisition, Share Price					$ 36.50		$ 36.50
Meritor Inc. | Subsequent Event
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		$ 3,000
Repayments of Debt		250
Line of Credit Facility, Maximum Borrowing Capacity										$ 2,000
Commercial paper (Note 10)		1,300
Meritor Inc. | Subsequent Event | Estimate
Business Acquisition [Line Items]
Repayments of Debt		$ 310
[1] (a) Includes sales to nonconsolidated equity investees of $281 million and $625 million for the three and six months ended June 30, 2022, compared with $423 million and $901 million for the comparable periods in 2021.

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2022	Mar. 31, 2022	Jul. 04, 2021	Jun. 30, 2022	Jul. 04, 2021
Segment reporting
NET SALES (a) (Note 2)	[1]	$ 6,586		$ 6,111	$ 12,971	$ 12,203
Research, development and engineering expenses		299		276	597	536
Equity, royalty and interest income (loss) from investees		95		137	191	303
Russian suspension costs (recoveries)		(47)	$ 158		111	0
Interest expense		34		29	51	57
Depreciation and amortization		166		166	326	335
INCOME BEFORE INCOME TAXES		855		779	1,433	1,562
Income tax expense (Note 6)		148		167	303	339
CONSOLIDATED NET INCOME		707		612	1,130	1,223
Less: Net income attributable to noncontrolling interests		5		12	10	20
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		702		600	1,120	1,203
Impairment of Equity Method Investment		0			31
Amortization of Debt Discount (Premium)					2	2
Joint Venture with KAMAZ
Segment reporting
Impairment of Equity Method Investment					28
Royalty charges
Segment reporting
Impairment of Equity Method Investment					3
Engine
Segment reporting
NET SALES (a) (Note 2)		2,775		2,491	5,528	4,950
Research, development and engineering expenses		116		99	225	191
Equity, royalty and interest income (loss) from investees		59		104	103	217
Interest income		1		1	5	4
Russian suspension costs (recoveries)		1			33
Segment EBITDA		422		402	814	756
Depreciation and amortization		49		50	100	101
Distribution
Segment reporting
NET SALES (a) (Note 2)		2,253		1,920	4,370	3,755
Research, development and engineering expenses		13		12	26	25
Equity, royalty and interest income (loss) from investees		21		15	37	32
Interest income		3		2	5	3
Russian suspension costs (recoveries)		(45)			55
Segment EBITDA		297		201	407	361
Depreciation and amortization		29		30	57	60
Components
Segment reporting
NET SALES (a) (Note 2)		1,950		1,994	3,938	4,146
Research, development and engineering expenses		73		79	149	154
Equity, royalty and interest income (loss) from investees		9		12	37	31
Interest income		2		1	3	2
Russian suspension costs (recoveries)		(2)			4
Segment EBITDA		352		301	672	722
Depreciation and amortization		49		46	92	94
Power Systems
Segment reporting
NET SALES (a) (Note 2)		1,203		1,143	2,363	2,165
Research, development and engineering expenses		58		60	122	117
Equity, royalty and interest income (loss) from investees		10		9	21	21
Interest income		1		1	2	2
Russian suspension costs (recoveries)		(1)			19
Segment EBITDA		128		139	218	265
Depreciation and amortization		31		33	62	68
New Power
Segment reporting
NET SALES (a) (Note 2)		42		24	73	59
Research, development and engineering expenses		39		26	75	49
Equity, royalty and interest income (loss) from investees		(4)		(3)	(7)	2
Interest income		0		0	0	0
Russian suspension costs (recoveries)		0			0
Segment EBITDA		(80)		(60)	(147)	(111)
Depreciation and amortization		8		7	15	12
Total Segments
Segment reporting
NET SALES (a) (Note 2)		8,223		7,572	16,272	15,075
Research, development and engineering expenses		299		276	597	536
Equity, royalty and interest income (loss) from investees		95		137	191	303
Interest income		7		5	15	11
Russian suspension costs (recoveries)		(47)			111
Segment EBITDA		1,119		983	1,964	1,993
Depreciation and amortization		166		166	326	335
Corporate and Other
Segment reporting
NET SALES (a) (Note 2)		(1,637)		(1,461)	(3,301)	(2,872)
Segment EBITDA		(64)		(9)	(154)	(39)
Filtration business separation costs		24			41
External Sales | Engine
Segment reporting
NET SALES (a) (Note 2)		2,092		1,920	4,141	3,815
External Sales | Distribution
Segment reporting
NET SALES (a) (Note 2)		2,247		1,913	4,358	3,740
External Sales | Components
Segment reporting
NET SALES (a) (Note 2)		1,477		1,556	2,994	3,280
External Sales | Power Systems
Segment reporting
NET SALES (a) (Note 2)		734		699	1,417	1,311
External Sales | New Power
Segment reporting
NET SALES (a) (Note 2)		36		23	61	57
External Sales | Total Segments
Segment reporting
NET SALES (a) (Note 2)		6,586		6,111	12,971	12,203
Intersegment sales | Engine
Segment reporting
NET SALES (a) (Note 2)		683		571	1,387	1,135
Intersegment sales | Distribution
Segment reporting
NET SALES (a) (Note 2)		6		7	12	15
Intersegment sales | Components
Segment reporting
NET SALES (a) (Note 2)		473		438	944	866
Intersegment sales | Power Systems
Segment reporting
NET SALES (a) (Note 2)		469		444	946	854
Intersegment sales | New Power
Segment reporting
NET SALES (a) (Note 2)		6		1	12	2
Intersegment sales | Total Segments
Segment reporting
NET SALES (a) (Note 2)		$ 1,637		$ 1,461	$ 3,301	$ 2,872
[1] (a) Includes sales to nonconsolidated equity investees of $281 million and $625 million for the three and six months ended June 30, 2022, compared with $423 million and $901 million for the comparable periods in 2021.

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - USD ($) $ in Millions	Aug. 03, 2022	Jul. 13, 2022	Jun. 30, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 3,500
Commercial paper (Note 10)			705	$ 313
Line of Credit Facility, Remaining Borrowing Capacity			$ 2,800
Subsequent Event
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000
Debt Instrument, Interest Rate During Period	3.11%
Line of Credit Facility, Remaining Borrowing Capacity	$ 1,430
Subsequent Event | Meritor Inc.
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000
Commercial paper (Note 10)	$ 1,300
Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Subsequent Event [Line Items]
Debt Instrument, Description of Variable Rate Basis		Secured Overnight Financing Rate