Cummins (CMI) 10-Q 3 Nov 22 2022 Q3 Quarterly report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 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	141,022,462
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	Q3
Document Quarterly Report	true
Amendment Flag	false
Document Transition Report	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021
Income Statement [Abstract]
NET SALES (a) (Note 2)	[1]	$ 7,333	$ 5,968	$ 20,304	$ 18,171
Cost of sales (Note 3)		5,691	4,554	15,404	13,793
GROSS MARGIN		1,642	1,414	4,900	4,378
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses		708	571	1,945	1,745
Research, development and engineering expenses		348	266	945	802
Equity, royalty and interest income from investees		70	94	261	397
Other operating expense, net (Note 3)		30	5	144	17
OPERATING INCOME		626	666	2,127	2,211
Interest expense		61	28	112	85
Other income, net		43	37	26	111
INCOME BEFORE INCOME TAXES		608	675	2,041	2,237
Income tax expense (Note 6)		199	134	502	473
CONSOLIDATED NET INCOME		409	541	1,539	1,764
Less: Net income attributable to noncontrolling interests		9	7	19	27
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$ 400	$ 534	$ 1,520	$ 1,737
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic (in dollars per share)		$ 2.83	$ 3.72	$ 10.74	$ 11.96
Diluted (in dollars per share)		$ 2.82	$ 3.69	$ 10.68	$ 11.86
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		141.1	143.5	141.5	145.2
Dilutive effect of stock compensation awards (in shares)		0.9	1.2	0.8	1.3
Diluted (in shares)		142	144.7	142.3	146.5
Revenue from Related Parties	[1]	$ 295	$ 385	$ 920	$ 1,286
[1] (a) Includes sales to nonconsolidated equity investees of $295 million and $920 million for the three and nine months ended September 30, 2022, compared with $385 million and $1,286 million for the comparable periods in 2021.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$ 409	$ 541	$ 1,539	$ 1,764
Other comprehensive income (loss), net of tax (Note 15)
Change in pension and other postretirement defined benefit plans	6	17	28	63
Foreign currency translation adjustments	(379)	0	(620)	(34)
Unrealized gain on derivatives	41	3	112	37
Total other comprehensive (loss) income, net of tax	(332)	20	(480)	66
COMPREHENSIVE INCOME	77	561	1,059	1,830
Less: Comprehensive (loss) income attributable to noncontrolling interests	(6)	9	(19)	22
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 83	$ 552	$ 1,078	$ 1,808

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions	Sep. 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	$ 2,499	$ 2,592
Marketable securities	466	595
Total cash, cash equivalents and marketable securities	2,965	3,187
Accounts and notes receivable, net
Trade and other	4,450	3,565
Nonconsolidated equity investees	349	425
Inventories (Note 8)	5,543	4,355
Prepaid expenses and other current assets	1,091	777
Total current assets	14,398	12,309
Long-term assets
Property, plant and equipment	10,231	9,358
Accumulated depreciation	(5,030)	(4,936)
Property, plant and equipment, net	5,201	4,422
Investments and advances related to equity method investees	1,826	1,538
Goodwill	2,229	1,287
Other intangible assets, net	2,602	900
Pension assets (Note 4)	1,536	1,488
Other assets (Note 10)	1,977	1,766
Total assets	29,769	23,710
Current liabilities
Accounts payable (principally trade)	4,000	3,021
Loans payable (Note 11)	217	208
Commercial paper (Note 11)	2,393	313
Accrued compensation, benefits and retirement costs	575	683
Current portion of accrued product warranty (Note 12)	801	755
Current portion of deferred revenue (Note 2)	921	855
Other accrued expenses (Note 10)	1,568	1,190
Current maturities of long-term debt (Note 11)	55	59
Total current liabilities	10,530	7,084
Long-term liabilities
Long-term debt (Note 11)	5,450	3,579
Pensions and other postretirement benefits (Note 4)	678	604
Accrued product warranty (Note 12)	742	684
Deferred revenue (Note 2)	867	850
Other liabilities (Note 10)	1,892	1,508
Total liabilities	20,159	14,309
Commitments and contingencies (Note 13)
Redeemable Noncontrolling Interest, Equity, Carrying Amount	252	366
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	2,214	2,099
Retained earnings	17,628	16,741
Treasury stock, at cost, 81.5 and 80.0 shares	(9,449)	(9,123)
Accumulated other comprehensive loss (Note 15)	(2,013)	(1,571)
Total Cummins Inc. shareholders' equity	8,380	8,146
Noncontrolling interests	978	889
Total equity	9,358	9,035
Total liabilities, redeemable noncontrolling interests and equity	$ 29,769	$ 23,710

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Oct. 03, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 1,539	$ 1,764
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	544	497
Deferred income taxes	(194)	44
Equity in income of investees, net of dividends	(30)	(150)
Pension and OPEB expense (Note 4)	23	62
Pension contributions and OPEB payments (Note 4)	(71)	(86)
Share-based compensation expense	24	25
Russian suspension costs, net of recoveries (Note 3)	112	0
Asset impairments and other charges	36	0
Loss on corporate owned life insurance	114	11
Foreign currency remeasurement and transaction exposure	(136)	27
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(333)	(353)
Inventories	(597)	(919)
Other current assets	(18)	(45)
Accounts payable	353	416
Accrued expenses	(124)	435
Changes in other liabilities	(41)	(59)
Other, net	(56)	(145)
Net cash provided by operating activities	1,145	1,524
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(453)	(362)
Investments in internal use software	(44)	(36)
Proceeds from sale of land	0	20
Investments in and advances from (to) equity investees	(50)	3
Acquisitions of businesses, net of cash acquired (Note 16)	(3,008)	0
Investments in marketable securities—acquisitions	(738)	(569)
Investments in marketable securities—liquidations (Note 7)	819	602
Cash flows from derivatives not designated as hedges	(29)	19
Other, net	7	45
Net cash used in investing activities	(3,496)	(278)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings (Notes 11 and 16)	2,076	35
Net borrowings (payments) of commercial paper	2,080	(123)
Payments on borrowings and finance lease obligations	(1,070)	(57)
Net borrowings (payments) under short-term credit agreements	21	(93)
Distributions to noncontrolling interests	(38)	(28)
Dividend payments on common stock	(633)	(601)
Repurchases of common stock	(370)	(1,228)
Proceeds from issuing common stock	36	27
Other, net	9	(11)
Net cash provided by (used in) financing activities	2,111	(2,079)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	147	20
Net decrease in cash and cash equivalents	(93)	(813)
Cash and cash equivalents at beginning of year	2,592	3,401
Cash and cash equivalents	$ 2,499	$ 2,588

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Redeemable Noncontrolling Interest	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total Cummins Inc. Shareholders' Equity	Noncontrolling Interests	us-gaap_Net Income in Total Equity Excluding Noncontrolling Interest Amount
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 4.15
Redeemable noncontrolling interests (Notes 1 and 14) at Dec. 31, 2020		$ 282
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2020	$ 8,707		$ 556	$ 1,617	$ 15,419	$ (7,779)	$ (1,982)	$ 7,831	$ 876
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(9)
CONSOLIDATED NET INCOME	1,764				1,737			1,737	36	$ 1,773
Other comprehensive income (loss), net of tax (Note 15)	66						71	71	(5)
Issuance of common stock	1			1				1
Repurchases of common stock	(1,228)					(1,228)		(1,228)
Cash dividends on common stock	(601)				(601)			(601)
Distributions to noncontrolling interests	(28)								(28)
Share-based awards	27			(4)		31		27
Fair value adjustment of redeemable noncontrolling interests	(28)	28		(28)				(28)
Other shareholder transactions	13			11		2		13	0
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Oct. 03, 2021		301
BALANCE AT END OF PERIOD at Oct. 03, 2021	$ 8,702		556	1,597	16,555	(8,974)	(1,911)	7,823	879
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.45
Redeemable noncontrolling interests (Notes 1 and 14) at Jul. 04, 2021		346
BALANCE AT BEGINNING OF PERIOD at Jul. 04, 2021	$ 8,447		556	1,548	16,228	(8,838)	(1,929)	7,565	882
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(3)
CONSOLIDATED NET INCOME	541				534			534	10	544
Other comprehensive income (loss), net of tax (Note 15)	20						18	18	2
Repurchases of common stock	(138)					(138)		(138)
Cash dividends on common stock	(207)				(207)			(207)
Distributions to noncontrolling interests	(15)								(15)
Share-based awards	1					1		1
Fair value adjustment of redeemable noncontrolling interests	42	(42)		42				42
Other shareholder transactions	8			7		1		8
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Oct. 03, 2021		301
BALANCE AT END OF PERIOD at Oct. 03, 2021	$ 8,702		556	1,597	16,555	(8,974)	(1,911)	7,823	879
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 4.47
Redeemable noncontrolling interests (Notes 1 and 14) at Dec. 31, 2021	$ 366	366
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2021	9,035		556	1,543	16,741	(9,123)	(1,571)	8,146	889
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(18)
CONSOLIDATED NET INCOME	1,539				1,520			1,520	37	1,557
Other comprehensive income (loss), net of tax (Note 15)	(480)						(442)	(442)	(38)
Issuance of common stock	8			8				8
Repurchases of common stock	(370)					(370)		(370)
Cash dividends on common stock	(633)				(633)			(633)
Distributions to noncontrolling interests	(38)								(38)
Share-based awards	36			(3)		39		36
Acquisition of business	111							0	111
Fair value adjustment of redeemable noncontrolling interests	96	(96)		96				96
Other shareholder transactions	36			14		5		19	17
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Sep. 30, 2022	252	252
BALANCE AT END OF PERIOD at Sep. 30, 2022	$ 9,358		556	1,658	17,628	(9,449)	(2,013)	8,380	978
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.57
Redeemable noncontrolling interests (Notes 1 and 14) at Jun. 30, 2022		226
BALANCE AT BEGINNING OF PERIOD at Jun. 30, 2022	$ 9,429		556	1,668	17,450	(9,439)	(1,696)	8,539	890
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(7)
CONSOLIDATED NET INCOME	409				400			400	16	$ 416
Other comprehensive income (loss), net of tax (Note 15)	(332)						(317)	(317)	(15)
Issuance of common stock	7			7				7
Repurchases of common stock	(23)					(23)		(23)
Cash dividends on common stock	(222)				(222)			(222)
Distributions to noncontrolling interests	(24)								(24)
Share-based awards	17			4		13		17
Acquisition of business	111							0	111
Fair value adjustment of redeemable noncontrolling interests	(33)	33		(33)				(33)
Other shareholder transactions	12			12				12	0
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Sep. 30, 2022	252	$ 252
BALANCE AT END OF PERIOD at Sep. 30, 2022	$ 9,358		$ 556	$ 1,658	$ 17,628	$ (9,449)	$ (2,013)	$ 8,380	$ 978

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 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, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, electric powertrains, 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. Meritor Acquisition On August 3, 2022, we completed the acquisition of Meritor, Inc. (Meritor) with a purchase price of $2.9 billion (including debt repaid concurrent with the acquisition). Our consolidated results and segment results include Meritor's activity since the date of acquisition. The results are included in our Components segment in the axles and brakes business while the electric powertrain portion is included in our New Power segment. See NOTE 16, "ACQUISITIONS," for additional information. 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 third quarters of 2022 and 2021 ended on September 30 and October 3, 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 nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all required annual disclosures. Reclassifications Certain amounts for prior year periods were reclassified to conform to the current year presentation. Revisions During the third quarter of 2022, we determined that a put right held by a minority shareholder in one of our subsidiaries, which became exercisable in September 2022, was incorrectly classified as noncontrolling interests (NCI) as opposed to mezzanine equity in our Condensed Consolidated Balance Sheets . Because the put right was exercisable at fair value (as defined in the governing documents of the subsidiary), the NCI should have also been reflected at fair value at each balance sheet date with an offset to additional paid-in-capital (APIC). As a result, we have revised our historical financial statements to reflect the NCI at its estimated fair value as redeemable noncontrolling interests in our Condensed Consolidated Balance Sheets with a corresponding offset in NCI and APIC. This error did not impact our Condensed Consolidated Statements of Net Income , Condensed Consolidated Statements of Comprehensive Income or Condensed Consolidated Statements of Cash Flows for any period. The amount reclassified from NCI and APIC was as follows: In millions Noncontrolling Interests Additional Paid-in Capital Total Correction to Mezzanine Equity December 31, 2019 $ 58 $ — $ 58 December 31, 2020 51 231 282 April 4, 2021 48 297 345 July 4, 2021 45 301 346 October 3, 2021 42 259 301 December 31, 2021 38 328 366 March 31, 2022 34 358 392 June 30, 2022 27 199 226 See NOTE 14, "REDEEMABLE NONCONTROLLING INTERESTS," for further information regarding the put right. We have concluded the correction of this error does not have a material impact to our previously issued annual and interim consolidated financial statements. 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 Nine months ended September 30, October 3, September 30, October 3, Options excluded 22,307 7,813 25,290 4,577

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	9 Months Ended
	Sep. 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 September 30, 2022, was $695 million. We expect to recognize the related revenue of $125 million over the next 12 months and $570 million over periods up to 10 years. See NOTE 12, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: In millions September 30, December 31, Unbilled revenue $ 244 $ 100 Deferred revenue, primarily extended warranty 1,788 1,705 We recognized revenue of $123 million and $539 million for the three and nine months ended September 30, 2022, compared with $130 million and $432 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 nine months ended September 30, 2022 or October 3, 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 Nine months ended In millions September 30, October 3, September 30, October 3, United States $ 4,116 $ 3,177 $ 11,361 $ 9,500 China 601 679 1,774 2,468 India 358 294 978 841 Other international 2,258 1,818 6,191 5,362 Total net sales $ 7,333 $ 5,968 $ 20,304 $ 18,171 Segment Revenue Engine segment external sales by market were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Heavy-duty truck $ 751 $ 662 $ 2,232 $ 1,941 Medium-duty truck and bus 583 501 1,794 1,461 Light-duty automotive 465 492 1,377 1,432 Total on-highway 1,799 1,655 5,403 4,834 Off-highway 264 306 801 942 Total sales $ 2,063 $ 1,961 $ 6,204 $ 5,776 Distribution segment external sales by region were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, North America $ 1,512 $ 1,237 $ 4,374 $ 3,631 Asia Pacific 258 236 744 675 Europe 174 143 494 467 China 89 80 270 239 Africa and Middle East 73 74 174 197 Latin America 58 48 155 136 India 55 48 155 138 Russia (1) 13 86 224 209 Total sales $ 2,232 $ 1,952 $ 6,590 $ 5,692 (1) The Distribution segment is organized and managed by geographic regions. The Russia region contains sales to several countries in the geographic area. Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Parts $ 942 $ 796 $ 2,855 $ 2,313 Engines 449 376 1,315 1,058 Power generation 428 437 1,266 1,305 Service 413 343 1,154 1,016 Total sales $ 2,232 $ 1,952 $ 6,590 $ 5,692 Components segment external sales by business were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Emission solutions $ 748 $ 699 $ 2,323 $ 2,466 Axles and brakes 732 — 732 — Filtration 322 288 949 892 Turbo technologies 205 177 597 609 Automated transmissions 159 112 436 374 Electronics and fuel systems 54 71 177 286 Total sales $ 2,220 $ 1,347 $ 5,214 $ 4,627 Power Systems segment external sales by product line were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Power generation $ 425 $ 395 $ 1,232 $ 1,127 Industrial 226 209 627 621 Generator technologies 122 84 331 251 Total sales $ 773 $ 688 $ 2,190 $ 1,999

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES	9 Months Ended
	Sep. 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 September 30, 2022, was $695 million. We expect to recognize the related revenue of $125 million over the next 12 months and $570 million over periods up to 10 years. See NOTE 12, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: In millions September 30, December 31, Unbilled revenue $ 244 $ 100 Deferred revenue, primarily extended warranty 1,788 1,705 We recognized revenue of $123 million and $539 million for the three and nine months ended September 30, 2022, compared with $130 million and $432 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 nine months ended September 30, 2022 or October 3, 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 Nine months ended In millions September 30, October 3, September 30, October 3, United States $ 4,116 $ 3,177 $ 11,361 $ 9,500 China 601 679 1,774 2,468 India 358 294 978 841 Other international 2,258 1,818 6,191 5,362 Total net sales $ 7,333 $ 5,968 $ 20,304 $ 18,171 Segment Revenue Engine segment external sales by market were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Heavy-duty truck $ 751 $ 662 $ 2,232 $ 1,941 Medium-duty truck and bus 583 501 1,794 1,461 Light-duty automotive 465 492 1,377 1,432 Total on-highway 1,799 1,655 5,403 4,834 Off-highway 264 306 801 942 Total sales $ 2,063 $ 1,961 $ 6,204 $ 5,776 Distribution segment external sales by region were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, North America $ 1,512 $ 1,237 $ 4,374 $ 3,631 Asia Pacific 258 236 744 675 Europe 174 143 494 467 China 89 80 270 239 Africa and Middle East 73 74 174 197 Latin America 58 48 155 136 India 55 48 155 138 Russia (1) 13 86 224 209 Total sales $ 2,232 $ 1,952 $ 6,590 $ 5,692 (1) The Distribution segment is organized and managed by geographic regions. The Russia region contains sales to several countries in the geographic area. Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Parts $ 942 $ 796 $ 2,855 $ 2,313 Engines 449 376 1,315 1,058 Power generation 428 437 1,266 1,305 Service 413 343 1,154 1,016 Total sales $ 2,232 $ 1,952 $ 6,590 $ 5,692 Components segment external sales by business were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Emission solutions $ 748 $ 699 $ 2,323 $ 2,466 Axles and brakes 732 — 732 — Filtration 322 288 949 892 Turbo technologies 205 177 597 609 Automated transmissions 159 112 436 374 Electronics and fuel systems 54 71 177 286 Total sales $ 2,220 $ 1,347 $ 5,214 $ 4,627 Power Systems segment external sales by product line were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Power generation $ 425 $ 395 $ 1,232 $ 1,127 Industrial 226 209 627 621 Generator technologies 122 84 331 251 Total sales $ 773 $ 688 $ 2,190 $ 1,999

RUSSIAN OPERATIONS

RUSSIAN OPERATIONS	9 Months Ended
	Sep. 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, 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. In the third quarter, we incurred $4 million of additional contract termination charges, and we recovered certain bad debt expenses and inventory amounts reserved in the first quarter for a net charge of $1 million. As of September 30, 2022, we had approximately $13 million of inventory and $15 million of receivables in Russia, all of which are fully reserved. In addition, we have cash balances of $71 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 Nine months ended In millions September 30, September 30, Statement of Net Income Location Inventory write-downs $ (2) $ 17 Cost of sales Accounts receivable reserves (1) 42 Other operating expense, net Impairment and other joint venture costs — 31 Equity, royalty and interest income from investees Other 4 22 Other operating expense, net Total $ 1 $ 112

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	9 Months Ended
	Sep. 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. Prior to the acquisition, Meritor provided a range of benefits to its employees and retirees, including pension benefits and postretirement healthcare benefits. As part of the acquisition, we assumed the assets and liabilities associated with these plans. Accordingly, on August 3, 2022, we recorded assets of $147 million and liabilities of $105 million on our Condensed Consolidated Balance Sheets related to Meritor's postretirement benefit plans. Contributions to these plans were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Defined benefit pension contributions $ 7 $ 13 $ 46 $ 67 OPEB payments, net 9 5 25 19 Defined contribution pension plans 26 20 82 72 We anticipate making additional defined benefit pension contributions during the remainder of 2022 of $7 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 $20 million. The components of net periodic pension and OPEB costs under our plans were as follows: Pension U.S. Plans U.K. Plans OPEB Three months ended In millions September 30, October 3, September 30, October 3, September 30, October 3, Service cost $ 35 $ 35 $ 7 $ 8 $ — $ — Interest cost 27 20 10 8 2 1 Expected return on plan assets (60) (49) (22) (22) — — Amortization of prior service cost 1 — — 1 — — Recognized net actuarial loss 5 11 1 8 — — Net periodic benefit cost (credit) $ 8 $ 17 $ (4) $ 3 $ 2 $ 1 Pension U.S. Plans U.K. Plans OPEB Nine months ended In millions September 30, October 3, September 30, October 3, September 30, October 3, Service cost $ 103 $ 105 $ 23 $ 25 $ — $ — Interest cost 71 59 28 23 4 3 Expected return on plan assets (164) (149) (62) (65) — — Amortization of prior service cost 1 — — 2 — — Recognized net actuarial loss 17 35 2 24 — — Net periodic benefit cost (credit) $ 28 $ 50 $ (9) $ 9 $ 4 $ 3

EQUITY, ROYALTY AND INTEREST IN

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	9 Months Ended
	Sep. 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 Nine months ended In millions September 30, October 3, September 30, October 3, Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 8 $ 11 $ 35 $ 63 Chongqing Cummins Engine Company, Ltd. 7 8 23 28 Beijing Foton Cummins Engine Co., Ltd. 6 23 34 108 Tata Cummins, Ltd. 5 6 19 13 All other manufacturers 11 21 14 (1) 104 Distribution entities Komatsu Cummins Chile, Ltda. 13 8 32 23 All other distributors 3 2 8 6 Cummins share of net income 53 79 165 345 Royalty and interest income 17 15 96 52 Equity, royalty and interest income from investees $ 70 $ 94 $ 261 $ 397 (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 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Tax Disclosure	NOTE 6. INCOME TAXES Our effective tax rates for the three and nine months ended September 30, 2022, were 32.7 percent and 24.6 percent, respectively. Our effective tax rates for the three and nine months ended October 3, 2021, were 19.9 percent and 21.1 percent, respectively. The three months ended September 30, 2022, contained unfavorable discrete tax items of $57 million, primarily due to $51 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of our filtration business and $10 million of unfavorable return to provision adjustments, partially offset by $4 million of net favorable other discrete tax items. The nine months ended September 30, 2022, contained unfavorable net discrete tax items of $52 million, primarily due to $69 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of our filtration business and $10 million of unfavorable return to provision adjustments, partially offset by $27 million of favorable changes in tax reserves. The three months ended October 3, 2021, contained favorable discrete items of $11 million, primarily due to a $16 million favorable release of tax reserves associated with the settlement of tax positions, partially offset by $5 million of unfavorable return to provision adjustments. The nine months ended October 3, 2021, contained favorable discrete items of $8 million, primarily due to an $18 million favorable release of tax reserves associated with the settlement of tax positions, partially offset by $10 million of unfavorable statutory changes in tax rates (mostly in the U.K.).

MARKETABLE SECURITIES

MARKETABLE SECURITIES	9 Months Ended
	Sep. 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: September 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 229 $ — $ 229 $ 299 $ — $ 299 Debt mutual funds 215 (7) 208 254 2 256 Equity mutual funds 28 1 29 29 10 39 Debt securities — — — 1 — 1 Total marketable securities $ 472 $ (6) $ 466 $ 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 nine months ended September 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: Nine months ended In millions September 30, October 3, Proceeds from sales of marketable securities $ 576 $ 428 Proceeds from maturities of marketable securities 243 174 Investments in marketable securities - liquidations $ 819 $ 602

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 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 September 30, December 31, Finished products $ 2,914 $ 2,538 Work-in-process and raw materials 2,860 2,009 Inventories at FIFO cost 5,774 4,547 Excess of FIFO over LIFO (231) (192) Total inventories $ 5,543 $ 4,355

GOODWILL

GOODWILL	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill Disclosure	NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill for the nine months ended September 30, 2022: In millions Components New Power Distribution Power Systems Engine Total Balance at December 31, 2021 $ 934 $ 257 $ 79 $ 11 $ 6 $ 1,287 Acquisitions (1) 799 159 — — — 958 Translation and other (15) — — (1) — (16) Balance at September 30, 2022 $ 1,718 $ 416 $ 79 $ 10 $ 6 $ 2,229 (1) See NOTE 16, "ACQUISITIONS," for additional information on acquisition goodwill. Intangible assets that have finite useful lives are amortized over their estimated useful lives. The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: In millions September 30, December 31, Software $ 652 $ 586 Less: Accumulated amortization (378) (314) Software, net 274 272 Trademarks, patents, customer relationships and other (1) 2,711 957 Less: Accumulated amortization (383) (329) Trademarks, patents, customer relationships and other, net 2,328 628 Total other intangible assets, net $ 2,602 $ 900 (1) See NOTE 16, "ACQUISITIONS," for additional information on acquired intangible assets.

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA	9 Months Ended
	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET DATA	NOTE 10. SUPPLEMENTAL BALANCE SHEET DATA Other assets included the following: In millions September 30, December 31, Deferred income taxes $ 472 $ 428 Operating lease assets 471 444 Corporate owned life insurance 378 492 Other 656 402 Other assets $ 1,977 $ 1,766 Other accrued expenses included the following: In millions September 30, December 31, Marketing accruals $ 307 $ 303 Income taxes payable 231 107 Other taxes payable 210 234 Current portion of operating lease liabilities 126 128 Other 694 418 Other accrued expenses $ 1,568 $ 1,190 Other liabilities included the following: In millions September 30, December 31, Deferred income taxes $ 570 $ 403 Operating lease liabilities 347 326 Accrued compensation 201 177 Long-term income taxes 192 263 Mark-to-market valuation on interest rate derivatives 161 19 Other long-term liabilities 421 320 Other liabilities $ 1,892 $ 1,508

DEBT

DEBT	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
DEBT	NOTE 11. DEBT Loans Payable and Commercial Paper Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions September 30, December 31, Loans payable (1) $ 217 $ 208 Commercial paper 2,393 (2)(3) 313 (4) (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 2.82 percent at September 30, 2022. This included $97 million of borrowings under the Europe program at a weighted-average interest rate of 0.87 percent and $2,296 million of borrowings under the U.S. program at a weighted-average interest rate of 2.91 percent. (3) Additional commercial paper borrowings were primarily used for the Meritor acquisition. See NOTE 16, "ACQUISITIONS," for additional information. (4) 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 $4.0 billion of unsecured, short-term promissory notes (commercial paper) pursuant to the Board authorized commercial paper programs. These programs facilitate the private placement of unsecured short-term debt through third-party brokers. We use the net proceeds from the commercial paper borrowings for acquisitions and general corporate purposes. Revolving Credit Facilities On August 17, 2022, we entered into an amended and restated 364-day credit agreement, which allows us to borrow up to $1.5 billion of unsecured funds at any time prior to August 16, 2023. This credit agreement amended and restated the prior $1.5 billion 364-day credit facility that matured on August 17, 2022. On August 17, 2022, we also entered into an incremental 364-day credit agreement, which allows us to borrow up to $500 million of unsecured funds at any time prior to August 16, 2023. We have access to committed credit facilities totaling $4.0 billion, including the $1.5 billion 364-day facility that expires August 16, 2023, $500 million incremental 364-day facility that expires August 16, 2023, 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 September 30, 2022 and December 31, 2021. At September 30, 2022, the $2,393 million of outstanding commercial paper effectively reduced the $4.0 billion of revolving credit capacity to $1.6 billion. At September 30, 2022, we also had an additional $230 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 September 30, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 Term loan, due 2025 Variable 2,000 — 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 121 110 Unamortized discount and deferred issuance costs (65) (68) Fair value adjustments due to hedge on indebtedness (133) 34 Finance leases 109 89 Total long-term debt 5,505 3,638 Less: Current maturities of long-term debt 55 59 Long-term debt $ 5,450 $ 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. 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 interest rate is based on Secured Overnight Financing Rate (SOFR) for the one-month interest period plus the relevant spread. The loan will mature on August 1, 2025. The agreement contains customary events of default and financial and other covenants, including maintaining a net debt to capital ratio of no more than 0.65 to 1.0. Principal payments required on long-term debt during the next five years are as follows: In millions 2022 2023 2024 2025 2026 Principal payments $ 13 $ 563 $ 43 $ 2,509 $ 55 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 Nine months ended In millions September 30, 2022 October 3, 2021 September 30, 2022 October 3, 2021 Type of Swap Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Interest rate swaps (1) $ (47) $ 45 $ — $ — $ (158) $ 159 $ — $ — (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, net of tax, recognized in other comprehensive income: In millions Three months ended Nine months ended Type of Swap September 30, October 3, September 30, October 3, Interest rate locks $ 21 $ — $ 103 $ 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 September 30, December 31, Fair value of total debt (1) $ 7,635 $ 4,461 Carrying value of total debt 8,115 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. Filtration Contingent Debt Agreement On September 30, 2022, certain of our subsidiaries entered into a $1.0 billion credit agreement (Credit Agreement), consisting of a $400 million revolving credit facility and a $600 million term loan facility (Facilities), in anticipation of the separation of our filtration business. Borrowings under the Credit Agreement will not become available under the Credit Agreement unless and until, among other things, there is a sale to the public of shares in our subsidiary that holds the filtration business (Parent Borrower). The Credit Agreement will automatically terminate if no such public sale of shares of Parent Borrower occurs on or prior to March 30, 2023. Borrowings under the Credit Agreement would be available to Parent Borrower and one or more of its subsidiaries (Borrower). If borrowings become available under the Credit Agreement, the Facilities would mature on September 30, 2027.

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	9 Months Ended
	Sep. 30, 2022
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 12. PRODUCT WARRANTY LIABILITY A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued product campaigns, was as follows: Nine months ended In millions September 30, October 3, Balance, beginning of year $ 2,425 $ 2,307 Provision for base warranties issued 395 431 Deferred revenue on extended warranty contracts sold 215 210 Provision for product campaigns issued 132 162 Payments made during period (476) (409) Amortization of deferred revenue on extended warranty contracts (220) (191) Changes in estimates for pre-existing product warranties (80) (131) Acquisitions (1) 144 — Foreign currency translation and other 19 (4) Balance, end of period $ 2,554 $ 2,375 (1) See NOTE 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information. We recognized supplier recoveries of $10 million and $33 million for the three and nine months ended September 30, 2022, compared with $88 million and $97 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 September 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 295 $ 286 Current portion of deferred revenue Long-term portion 716 700 Deferred revenue Total $ 1,011 $ 986 Product warranty Current portion $ 801 $ 755 Current portion of accrued product warranty Long-term portion 742 684 Accrued product warranty Total $ 1,543 $ 1,439 Total warranty accrual $ 2,554 $ 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

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. 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; environmental matters; and asbestos claims. 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 and Titan trucks for model years 2016 through 2019. 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 RAM recall during the first quarter of 2022, an amount that reflected our current estimate of the cost of that recall. We are also developing a new software calibration and hardware fix and will recall model years 2016 through 2019 Titan trucks. We accrued $29 million for the Titan recall during the third quarter of 2022, an amount that reflected our current estimate of the cost of that 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 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 September 30, 2022, the maximum potential loss related to these guarantees was $48 million. We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At September 30, 2022, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $138 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 September 30, 2022, the total commitments under these contracts were $42 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 $118 million at September 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. Accounts Receivable Factoring We assumed an accounts receivable factoring program from the acquisition of Meritor for trade receivables as follows: Current Expiration Total Facility Size at September 30, 2022 Utilized at September 30, 2022 In millions EUR USD EUR USD Off-balance sheet arrangements Committed Swedish factoring facility (1)(2) March 2024 € 155 $ 151 € 144 $ 139 Committed U.S. factoring facility (1) February 2023 N/A 75 — 76 Uncommitted U.K. factoring facility (3) February 2025 25 24 2 2 Uncommitted Italy factoring facility June 2025 30 29 11 11 Other uncommitted factoring facilities (4) None N/A N/A 7 7 Total off-balance sheet arrangements € 210 $ 279 € 164 $ 235 (1) Actual amounts may exceed the bank's commitment at the bank's discretion. (2) The factoring program is supported by a 364-day committed credit facility through June 22, 2023. (3) The U.K. factoring facility enables the factoring of British pound and Euro denominated accounts receivable. (4) There is no explicit facility size under the agreement, but the counterparty approves the purchase of receivable tranches as its discretion.

REDEEMABLE NONCONTROLLING INTER

REDEEMABLE NONCONTROLLING INTERESTS	9 Months Ended
	Sep. 30, 2022
Noncontrolling Interest [Abstract]
Noncontrolling Interest Disclosure	NOTE 14. REDEEMABLE NONCONTROLLING INTERESTS A 19 percent minority shareholder in one of our businesses, Hydrogenics Corporation (Hydrogenics), has, among other rights and subject to related obligations and restrictive covenants, rights that are exercisable between September 2022 and September 2026 to require us to (1) purchase such shareholder's shares (Put Option) at an amount up to the fair market value (calculated pursuant to a process outlined in the shareholders' agreement) and (2) sell to such shareholder Hydrogenics' electrolyzer business at an amount up to the fair market value of the electrolyzer business (calculated pursuant to a process outlined in the shareholders’ agreement). We recorded the estimated fair value of the Put Option as redeemable noncontrolling interests in our Condensed Consolidated Financial Statements with an offset to additional paid-in capital. At September 30, 2022, the redeemable noncontrolling interest balance was $252 million.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 15. 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 June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) Other comprehensive income (loss) before reclassifications Before-tax amount — (365) 51 (314) $ (15) $ (329) Tax benefit (expense) 1 (13) (12) — (12) After-tax amount — (364) 38 (326) (15) (341) Amounts reclassified from accumulated other comprehensive income (loss) (1) 6 — 3 9 — 9 Net current period other comprehensive income (loss) 6 (364) 41 (317) $ (15) $ (332) Balance at September 30, 2022 $ (318) $ (1,790) $ 95 $ (2,013) Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) Other comprehensive income (loss) before reclassifications Before-tax amount 1 (2) 5 4 $ 2 $ 6 Tax expense (1) — (3) (4) — (4) After-tax amount — (2) 2 — 2 2 Amounts reclassified from accumulated other comprehensive income (loss) (1) 17 — 1 18 — 18 Net current period other comprehensive income (loss) 17 (2) 3 18 $ 2 $ 20 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. Following are the changes in accumulated other comprehensive income (loss) by component for the nine months ended: In millions Change in pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount 14 (589) 146 (429) $ (38) $ (467) Tax (expense) benefit (3) 7 (35) (31) — (31) After-tax amount 11 (582) 111 (460) (38) (498) Amounts reclassified from accumulated other comprehensive income (loss) (1) 17 — 1 18 — 18 Net current period other comprehensive income (loss) 28 (582) 112 (442) $ (38) $ (480) Balance at September 30, 2022 $ (318) $ (1,790) $ 95 $ (2,013) Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income (loss) before reclassifications Before-tax amount 16 (33) 53 36 $ (5) $ 31 Tax (expense) benefit (3) 4 (16) (15) — (15) After-tax amount 13 (29) 37 21 (5) 16 Amounts reclassified from accumulated other comprehensive income (loss) (1) 50 — — 50 — 50 Net current period other comprehensive income (loss) 63 (29) 37 71 $ (5) $ 66 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2022
Business Combinations [Abstract]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 16. ACQUISITIONS Acquisitions for the nine months ended September 30, 2022, were as follows. Entity Acquired (Dollars in millions) Date of Acquisition Additional Percent Interest Acquired Payments to Former Owners Acquisition Related Debt Retirements Total Purchase Consideration (1) Goodwill Acquired Intangibles Recognized (2) Meritor, Inc. 08/03/22 100% $ 2,613 $ 248 $ 2,861 $ 850 $ 1,610 Jacobs Vehicle Systems 04/08/22 100% 346 — 346 108 164 Cummins Westport Joint Venture 02/07/22 50% 42 — 42 — 20 (1) The newly consolidated entities were accounted for as business combinations. On the date of acquisition, Meritor, Inc. was included in the Components and New Power segments, Jacobs Vehicle Systems was included in the Components segment and Cummins Westport Joint Venture was included in the Engine segment. (2) Intangible assets acquired in the business combination were mostly technology and customer related. Meritor, Inc. On August 3, 2022, we completed the acquisition of Meritor whereby we paid $36.50 per share for each outstanding share of Meritor, a global leader of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. The total purchase price, including debt that was retired on the closing date of $248 million, was $2.9 billion. In addition, we assumed $1.0 billion of additional debt, of which $0.9 billion was retired prior to the end of the third quarter. The acquisition was funded with a combination of $2.0 billion in new debt (see NOTE 11, "DEBT" for additional details), cash on hand and additional commercial paper borrowings. The integration of Meritor’s people, technology and capabilities position us as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications at a time when demand for decarbonized solutions is continuing to accelerate. The majority of this business will be included within our Components segment with the exception of the electric powertrain business, which will be included in our New Power segment. The values assigned to individual assets acquired and liabilities assumed are preliminary based on management’s current best estimate and subject to change as certain matters are finalized. The primary areas that are preliminary include, but are not limited to, valuation of intangibles, legal and other contingent liabilities and deferred taxes. The preliminary purchase price allocation was as follows: In millions Cash and cash equivalents $ 98 Accounts and notes receivable, net 640 Inventories 752 Property, plant and equipment 846 Intangible assets 1,610 Investments and advances related to equity method investees 382 Goodwill 850 Pension assets 147 Other current and long-term assets 364 Accounts payable (principally trade) (711) Net deferred taxes (325) Pensions and other postretirement benefits (129) Long-term debt (962) Other current and long-term liabilities (590) Noncontrolling interests (111) Total purchase price $ 2,861 The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 960 12 Multi-period excess earnings Revenue, EBITDA, rate of return, renewal rates Technology 345 8 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 305 21 Relief-from-royalty Royalty rate, rate of return Annual amortization of the intangible assets for the next five years is expected to approximate $142 million per year. 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. Goodwill was allocated to the Components segment ($691 million) and the New Power segment ($159 million) based on the relative value of those businesses compared to the assets and liabilities assigned to them. We do not expect any of the goodwill to be deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are Meritor’s expected future customers, new versions of technologies, an acquired workforce, other economic benefits that are anticipated to arise from future product sales and operational synergies from combining the business with Cummins. Included in our third quarter results were revenues of $737 million and net loss of $37 million related to this business. In addition, on a year-to-date basis we have incurred acquisition related costs of $30 million included in selling, general and administrative expenses in our Condensed Consolidated Statements of Net Income . The following table presents the supplemental consolidated results of the Company for the three and nine months ended September 30, 2022 and October 3, 2021, on an unaudited pro-forma basis as if the acquisition had been consummated on January 1, 2021. The primary adjustments reflected in the pro-forma results related to (1) increase in interest expense for debt used to fund the acquisition, (2) removal of acquisition related costs from 2022 (and included in 2021) and (3) changes related to purchase accounting primarily related to amortization of intangibles, fixed assets and joint ventures. The unaudited pro forma financial information presented below does not purport to represent the actual results of operations that Cummins and Meritor would have achieved had the companies been combined during the periods presented and was not intended to project the future results of operations that the combined company could achieve after the acquisition. The unaudited pro forma financial information does not reflect any potential cost savings, operating efficiencies, long-term debt pay down estimates, financial synergies or other strategic benefits as a result of the acquisition or any restructuring costs to achieve those benefits. (Unaudited) Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Net sales $ 7,734 $ 6,913 $ 23,071 $ 21,115 Net income 397 544 1,565 1,662 The Meritor acquisition increased net assets in the Components segment by $3.8 billion and New Power segment by $0.3 billion. Jacobs Vehicle Systems On April 8, 2022, we completed the acquisition of Jacobs Vehicle Systems business (Jacobs) from Altra Industrial Motion Corp. 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 and cash equivalents $ 18 Accounts and notes receivable, net 24 Inventories 15 Property, plant and equipment 70 Intangible assets 164 Goodwill 108 Accounts payable (principally trade) (21) Net deferred taxes (27) Other, net (5) Total purchase price $ 346 The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 108 9 Multi-period excess earnings Rate of return, renewal rates Technology 31 7 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 25 14 Relief-from-royalty Royalty rate, rate of return Annual amortization of the intangible assets for the next five years is expected to approximate $18 million per year. 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 results for the three and nine months ended September 30, 2022, were revenues of $43 million and $80 million, respectively, and loss of $2 million and break-even, respectively, 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. Cummins Westport Joint Venture 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. Pending Acquisition Prior to our acquisition of Meritor, Meritor signed an agreement with Siemens to purchase its Commercial Vehicles business for approximately €190 million, subject to working capital and other customary adjustments. This business develops, designs and produces electric drive systems including electric motors, inverters, software and related services for the transit, off-highway and specialty markets. We expect the acquisition to close in the fourth quarter of 2022. This acquisition will be included in our New Power segment.

OPERATING SEGMENTS

OPERATING SEGMENTS	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 17. 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, automated transmissions, axles, drivelines, brakes and suspension systems. 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, fuel cell and electric powertrain technologies. The New Power segment is currently in the early stages of commercializing these technologies with efforts primarily focused on the development of our electroloyzers for hydrogen production and electrified power systems and related 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 and certain filtration separation costs 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 September 30, 2022 External sales $ 2,063 $ 2,232 $ 2,220 $ 773 $ 45 $ 7,333 Intersegment sales 716 7 483 576 5 1,787 Total sales 2,779 2,239 2,703 1,349 50 9,120 Research, development and engineering expenses 140 13 87 62 46 348 Equity, royalty and interest income (loss) from investees 28 20 17 10 (5) 70 Interest income 3 4 4 3 — 14 Russian suspension costs (1) — — 1 — — 1 Segment EBITDA 363 225 297 (2) 193 (96) 982 Depreciation and amortization (3) 51 29 95 30 10 215 Three months ended October 3, 2021 External sales $ 1,961 $ 1,952 $ 1,347 $ 688 $ 20 $ 5,968 Intersegment sales 617 7 446 476 3 1,549 Total sales 2,578 1,959 1,793 1,164 23 7,517 Research, development and engineering expenses 97 10 78 55 26 266 Equity, royalty and interest income (loss) from investees 61 15 10 11 (3) 94 Interest income 3 2 1 1 — 7 Segment EBITDA 391 192 253 134 (58) 912 Depreciation and amortization (3) 53 28 44 29 5 159 (1) See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (2) Includes $45 million of costs related to the acquisition and integration of Meritor and $10 million of costs associated with the planned separation of our filtration business. (3) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. A portion of depreciation expense is included in Research, development and engineering expenses. Summarized financial information regarding our reportable operating segments for the nine months ended is shown in the table below: In millions Engine Distribution Components Power Systems New Power Total Segments Nine months ended September 30, 2022 External sales $ 6,204 $ 6,590 $ 5,214 $ 2,190 $ 106 $ 20,304 Intersegment sales 2,103 19 1,427 1,522 17 5,088 Total sales 8,307 6,609 6,641 3,712 123 25,392 Research, development and engineering expenses 365 39 236 184 121 945 Equity, royalty and interest income (loss) from investees 131 (1) 57 54 31 (12) 261 Interest income 8 9 7 5 — 29 Russian suspension costs (2) 33 (3) 55 5 19 — 112 Segment EBITDA 1,177 632 969 (4) 411 (243) 2,946 Depreciation and amortization (5) 151 86 187 92 25 541 Nine months ended October 3, 2021 External sales $ 5,776 $ 5,692 $ 4,627 $ 1,999 $ 77 $ 18,171 Intersegment sales 1,752 22 1,312 1,330 5 4,421 Total sales 7,528 5,714 5,939 3,329 82 22,592 Research, development and engineering expenses 288 35 232 172 75 802 Equity, royalty and interest income (loss) from investees 278 47 41 32 (1) 397 Interest income 7 5 3 3 — 18 Segment EBITDA 1,147 553 975 399 (169) 2,905 Depreciation and amortization (5) 154 88 138 97 17 494 (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) Includes $56 million of costs related to the acquisition and integration of Meritor and $15 million of costs associated with the planned separation of our filtration business. (5) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. The amortization of debt discount and deferred costs was $3 million and $3 million for the nine months ended September 30, 2022 and October 3, 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 Nine months ended In millions September 30, October 3, September 30, October 3, Total segment sales $ 9,120 $ 7,517 $ 25,392 $ 22,592 Elimination of intersegment sales (1,787) (1,549) (5,088) (4,421) Total net sales $ 7,333 $ 5,968 $ 20,304 $ 18,171 A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, TOTAL SEGMENT EBITDA $ 982 $ 912 $ 2,946 $ 2,905 Intersegment eliminations and other (1) (98) (50) (252) (89) Less: Interest expense 61 28 112 85 Depreciation and amortization 215 159 541 494 INCOME BEFORE INCOME TAXES 608 675 2,041 2,237 Less: Income tax expense 199 134 502 473 CONSOLIDATED NET INCOME 409 541 1,539 1,764 Less: Net income attributable to noncontrolling interests 9 7 19 27 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 400 $ 534 $ 1,520 $ 1,737 (1) Intersegment eliminations and other included $6 million and $47 million of costs associated with the planned separation of our Filtration business for the three and nine months ended September 30, 2022.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	Oct. 01, 2022
Subsequent Events [Abstract]
Subsequent Events	NOTE 18. SUBSEQUENT EVENT In October 2022, we signed an agreement to purchase all of the equity ownership interest of Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) and Teksid, Inc. from Stellantis N.V. for approximately €115 million, subject to certain adjustments set forth in the agreement. Teksid MX operates a cast iron foundry located in Monclova, Mexico, which primarily forges blocks and heads used in Cummins and other manufacturers’ engines. Teksid, Inc. facilitates the commercialization of Teksid MX products in North America. The transaction, which is subject to customary closing conditions and receipt of applicable regulatory approvals, is expected to close as soon as December 2022. Since Cummins is the primary customer of the foundry, the acquisition is not expected to result in material incremental sales to our business. This business will be included in our Engine segment.

NATURE OF OPERATIONS AND BASI_2

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Tables)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of revisions	The amount reclassified from NCI and APIC was as follows: In millions Noncontrolling Interests Additional Paid-in Capital Total Correction to Mezzanine Equity December 31, 2019 $ 58 $ — $ 58 December 31, 2020 51 231 282 April 4, 2021 48 297 345 July 4, 2021 45 301 346 October 3, 2021 42 259 301 December 31, 2021 38 328 366 March 31, 2022 34 358 392 June 30, 2022 27 199 226
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share were as follows: Three months ended Nine months ended September 30, October 3, September 30, October 3, Options excluded 22,307 7,813 25,290 4,577

REVENUE RECOGNITION LONGTERM CO

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	9 Months Ended
	Sep. 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 September 30, December 31, Unbilled revenue $ 244 $ 100 Deferred revenue, primarily extended warranty 1,788 1,705

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	9 Months Ended
	Sep. 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 Nine months ended In millions September 30, October 3, September 30, October 3, United States $ 4,116 $ 3,177 $ 11,361 $ 9,500 China 601 679 1,774 2,468 India 358 294 978 841 Other international 2,258 1,818 6,191 5,362 Total net sales $ 7,333 $ 5,968 $ 20,304 $ 18,171
Engine
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Market	Engine segment external sales by market were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Heavy-duty truck $ 751 $ 662 $ 2,232 $ 1,941 Medium-duty truck and bus 583 501 1,794 1,461 Light-duty automotive 465 492 1,377 1,432 Total on-highway 1,799 1,655 5,403 4,834 Off-highway 264 306 801 942 Total sales $ 2,063 $ 1,961 $ 6,204 $ 5,776
Distribution
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	Distribution segment external sales by region were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, North America $ 1,512 $ 1,237 $ 4,374 $ 3,631 Asia Pacific 258 236 744 675 Europe 174 143 494 467 China 89 80 270 239 Africa and Middle East 73 74 174 197 Latin America 58 48 155 136 India 55 48 155 138 Russia (1) 13 86 224 209 Total sales $ 2,232 $ 1,952 $ 6,590 $ 5,692 (1) The Distribution segment is organized and managed by geographic regions. The Russia region contains sales to several countries in the geographic area.
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Parts $ 942 $ 796 $ 2,855 $ 2,313 Engines 449 376 1,315 1,058 Power generation 428 437 1,266 1,305 Service 413 343 1,154 1,016 Total sales $ 2,232 $ 1,952 $ 6,590 $ 5,692
Components
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Components segment external sales by business were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Emission solutions $ 748 $ 699 $ 2,323 $ 2,466 Axles and brakes 732 — 732 — Filtration 322 288 949 892 Turbo technologies 205 177 597 609 Automated transmissions 159 112 436 374 Electronics and fuel systems 54 71 177 286 Total sales $ 2,220 $ 1,347 $ 5,214 $ 4,627
Power Systems
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Power Systems segment external sales by product line were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Power generation $ 425 $ 395 $ 1,232 $ 1,127 Industrial 226 209 627 621 Generator technologies 122 84 331 251 Total sales $ 773 $ 688 $ 2,190 $ 1,999

RUSSIAN OPERATIONS (Tables)

RUSSIAN OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Three months ended Nine months ended In millions September 30, September 30, Statement of Net Income Location Inventory write-downs $ (2) $ 17 Cost of sales Accounts receivable reserves (1) 42 Other operating expense, net Impairment and other joint venture costs — 31 Equity, royalty and interest income from investees Other 4 22 Other operating expense, net Total $ 1 $ 112

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	9 Months Ended
	Sep. 30, 2022
Retirement Benefits [Abstract]
Schedule Benefit Plans Disclosures Cash Contributions	Contributions to these plans were as follows: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Defined benefit pension contributions $ 7 $ 13 $ 46 $ 67 OPEB payments, net 9 5 25 19 Defined contribution pension plans 26 20 82 72
Components of net periodic pension and other postretirement benefit cost	The components of net periodic pension and OPEB costs under our plans were as follows: Pension U.S. Plans U.K. Plans OPEB Three months ended In millions September 30, October 3, September 30, October 3, September 30, October 3, Service cost $ 35 $ 35 $ 7 $ 8 $ — $ — Interest cost 27 20 10 8 2 1 Expected return on plan assets (60) (49) (22) (22) — — Amortization of prior service cost 1 — — 1 — — Recognized net actuarial loss 5 11 1 8 — — Net periodic benefit cost (credit) $ 8 $ 17 $ (4) $ 3 $ 2 $ 1 Pension U.S. Plans U.K. Plans OPEB Nine months ended In millions September 30, October 3, September 30, October 3, September 30, October 3, Service cost $ 103 $ 105 $ 23 $ 25 $ — $ — Interest cost 71 59 28 23 4 3 Expected return on plan assets (164) (149) (62) (65) — — Amortization of prior service cost 1 — — 2 — — Recognized net actuarial loss 17 35 2 24 — — Net periodic benefit cost (credit) $ 28 $ 50 $ (9) $ 9 $ 4 $ 3

EQUITY, ROYALTY AND INTEREST _2

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Tables)	9 Months Ended
	Sep. 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 Nine months ended In millions September 30, October 3, September 30, October 3, Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 8 $ 11 $ 35 $ 63 Chongqing Cummins Engine Company, Ltd. 7 8 23 28 Beijing Foton Cummins Engine Co., Ltd. 6 23 34 108 Tata Cummins, Ltd. 5 6 19 13 All other manufacturers 11 21 14 (1) 104 Distribution entities Komatsu Cummins Chile, Ltda. 13 8 32 23 All other distributors 3 2 8 6 Cummins share of net income 53 79 165 345 Royalty and interest income 17 15 96 52 Equity, royalty and interest income from investees $ 70 $ 94 $ 261 $ 397 (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 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	9 Months Ended
	Sep. 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: September 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 229 $ — $ 229 $ 299 $ — $ 299 Debt mutual funds 215 (7) 208 254 2 256 Equity mutual funds 28 1 29 29 10 39 Debt securities — — — 1 — 1 Total marketable securities $ 472 $ (6) $ 466 $ 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: Nine months ended In millions September 30, October 3, Proceeds from sales of marketable securities $ 576 $ 428 Proceeds from maturities of marketable securities 243 174 Investments in marketable securities - liquidations $ 819 $ 602

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories included the following: In millions September 30, December 31, Finished products $ 2,914 $ 2,538 Work-in-process and raw materials 2,860 2,009 Inventories at FIFO cost 5,774 4,547 Excess of FIFO over LIFO (231) (192) Total inventories $ 5,543 $ 4,355

GOODWILL (Tables)

GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in the carrying amount of goodwill for the nine months ended September 30, 2022: In millions Components New Power Distribution Power Systems Engine Total Balance at December 31, 2021 $ 934 $ 257 $ 79 $ 11 $ 6 $ 1,287 Acquisitions (1) 799 159 — — — 958 Translation and other (15) — — (1) — (16) Balance at September 30, 2022 $ 1,718 $ 416 $ 79 $ 10 $ 6 $ 2,229 (1) See NOTE 16, "ACQUISITIONS," for additional information on acquisition goodwill.
Schedule of Finite-Lived Intangible Assets	The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: In millions September 30, December 31, Software $ 652 $ 586 Less: Accumulated amortization (378) (314) Software, net 274 272 Trademarks, patents, customer relationships and other (1) 2,711 957 Less: Accumulated amortization (383) (329) Trademarks, patents, customer relationships and other, net 2,328 628 Total other intangible assets, net $ 2,602 $ 900 (1) See NOTE 16, "ACQUISITIONS," for additional information on acquired intangible assets.

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	9 Months Ended
	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of Other Assets	Other assets included the following: In millions September 30, December 31, Deferred income taxes $ 472 $ 428 Operating lease assets 471 444 Corporate owned life insurance 378 492 Other 656 402 Other assets $ 1,977 $ 1,766
Accrued Expenses	Other accrued expenses included the following: In millions September 30, December 31, Marketing accruals $ 307 $ 303 Income taxes payable 231 107 Other taxes payable 210 234 Current portion of operating lease liabilities 126 128 Other 694 418 Other accrued expenses $ 1,568 $ 1,190
Other Noncurrent Liabilities	Other liabilities included the following: In millions September 30, December 31, Deferred income taxes $ 570 $ 403 Operating lease liabilities 347 326 Accrued compensation 201 177 Long-term income taxes 192 263 Mark-to-market valuation on interest rate derivatives 161 19 Other long-term liabilities 421 320 Other liabilities $ 1,892 $ 1,508

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 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 September 30, December 31, Loans payable (1) $ 217 $ 208 Commercial paper 2,393 (2)(3) 313 (4) (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 2.82 percent at September 30, 2022. This included $97 million of borrowings under the Europe program at a weighted-average interest rate of 0.87 percent and $2,296 million of borrowings under the U.S. program at a weighted-average interest rate of 2.91 percent. (3) Additional commercial paper borrowings were primarily used for the Meritor acquisition. See NOTE 16, "ACQUISITIONS," for additional information. (4) 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 September 30, December 31, Long-term debt Senior notes, due 2023 3.65% $ 500 $ 500 Term loan, due 2025 Variable 2,000 — 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 121 110 Unamortized discount and deferred issuance costs (65) (68) Fair value adjustments due to hedge on indebtedness (133) 34 Finance leases 109 89 Total long-term debt 5,505 3,638 Less: Current maturities of long-term debt 55 59 Long-term debt $ 5,450 $ 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 $ 13 $ 563 $ 43 $ 2,509 $ 55
Schedule of Interest Rate Derivatives	The following table summarizes the gains and losses: Three months ended Nine months ended In millions September 30, 2022 October 3, 2021 September 30, 2022 October 3, 2021 Type of Swap Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Interest rate swaps (1) $ (47) $ 45 $ — $ — $ (158) $ 159 $ — $ — (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, net of tax, recognized in other comprehensive income: In millions Three months ended Nine months ended Type of Swap September 30, October 3, September 30, October 3, Interest rate locks $ 21 $ — $ 103 $ 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 September 30, December 31, Fair value of total debt (1) $ 7,635 $ 4,461 Carrying value of total debt 8,115 4,159 (1) The fair value of debt is derived from Level 2 input measures.

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	9 Months Ended
	Sep. 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: Nine months ended In millions September 30, October 3, Balance, beginning of year $ 2,425 $ 2,307 Provision for base warranties issued 395 431 Deferred revenue on extended warranty contracts sold 215 210 Provision for product campaigns issued 132 162 Payments made during period (476) (409) Amortization of deferred revenue on extended warranty contracts (220) (191) Changes in estimates for pre-existing product warranties (80) (131) Acquisitions (1) 144 — Foreign currency translation and other 19 (4) Balance, end of period $ 2,554 $ 2,375 (1) See NOTE 16, "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 September 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 295 $ 286 Current portion of deferred revenue Long-term portion 716 700 Deferred revenue Total $ 1,011 $ 986 Product warranty Current portion $ 801 $ 755 Current portion of accrued product warranty Long-term portion 742 684 Accrued product warranty Total $ 1,543 $ 1,439 Total warranty accrual $ 2,554 $ 2,425

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Accounts Receivable Factoring	We assumed an accounts receivable factoring program from the acquisition of Meritor for trade receivables as follows: Current Expiration Total Facility Size at September 30, 2022 Utilized at September 30, 2022 In millions EUR USD EUR USD Off-balance sheet arrangements Committed Swedish factoring facility (1)(2) March 2024 € 155 $ 151 € 144 $ 139 Committed U.S. factoring facility (1) February 2023 N/A 75 — 76 Uncommitted U.K. factoring facility (3) February 2025 25 24 2 2 Uncommitted Italy factoring facility June 2025 30 29 11 11 Other uncommitted factoring facilities (4) None N/A N/A 7 7 Total off-balance sheet arrangements € 210 $ 279 € 164 $ 235 (1) Actual amounts may exceed the bank's commitment at the bank's discretion. (2) The factoring program is supported by a 364-day committed credit facility through June 22, 2023. (3) The U.K. factoring facility enables the factoring of British pound and Euro denominated accounts receivable. (4) There is no explicit facility size under the agreement, but the counterparty approves the purchase of receivable tranches as its discretion.

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 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 June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) Other comprehensive income (loss) before reclassifications Before-tax amount — (365) 51 (314) $ (15) $ (329) Tax benefit (expense) 1 (13) (12) — (12) After-tax amount — (364) 38 (326) (15) (341) Amounts reclassified from accumulated other comprehensive income (loss) (1) 6 — 3 9 — 9 Net current period other comprehensive income (loss) 6 (364) 41 (317) $ (15) $ (332) Balance at September 30, 2022 $ (318) $ (1,790) $ 95 $ (2,013) Balance at July 4, 2021 $ (689) $ (1,231) $ (9) $ (1,929) Other comprehensive income (loss) before reclassifications Before-tax amount 1 (2) 5 4 $ 2 $ 6 Tax expense (1) — (3) (4) — (4) After-tax amount — (2) 2 — 2 2 Amounts reclassified from accumulated other comprehensive income (loss) (1) 17 — 1 18 — 18 Net current period other comprehensive income (loss) 17 (2) 3 18 $ 2 $ 20 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. Following are the changes in accumulated other comprehensive income (loss) by component for the nine months ended: In millions Change in pensions Foreign currency Unrealized gain Total Noncontrolling Total Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount 14 (589) 146 (429) $ (38) $ (467) Tax (expense) benefit (3) 7 (35) (31) — (31) After-tax amount 11 (582) 111 (460) (38) (498) Amounts reclassified from accumulated other comprehensive income (loss) (1) 17 — 1 18 — 18 Net current period other comprehensive income (loss) 28 (582) 112 (442) $ (38) $ (480) Balance at September 30, 2022 $ (318) $ (1,790) $ 95 $ (2,013) Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income (loss) before reclassifications Before-tax amount 16 (33) 53 36 $ (5) $ 31 Tax (expense) benefit (3) 4 (16) (15) — (15) After-tax amount 13 (29) 37 21 (5) 16 Amounts reclassified from accumulated other comprehensive income (loss) (1) 50 — — 50 — 50 Net current period other comprehensive income (loss) 63 (29) 37 71 $ (5) $ 66 Balance at October 3, 2021 $ (672) $ (1,233) $ (6) $ (1,911) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)			9 Months Ended
	Aug. 03, 2022	Apr. 08, 2022	Sep. 30, 2022
Business Acquisition [Line Items]
Schedule of Business Acquisitions, by Acquisition			Acquisitions for the nine months ended September 30, 2022, were as follows. Entity Acquired (Dollars in millions) Date of Acquisition Additional Percent Interest Acquired Payments to Former Owners Acquisition Related Debt Retirements Total Purchase Consideration (1) Goodwill Acquired Intangibles Recognized (2) Meritor, Inc. 08/03/22 100% $ 2,613 $ 248 $ 2,861 $ 850 $ 1,610 Jacobs Vehicle Systems 04/08/22 100% 346 — 346 108 164 Cummins Westport Joint Venture 02/07/22 50% 42 — 42 — 20 (1) The newly consolidated entities were accounted for as business combinations. On the date of acquisition, Meritor, Inc. was included in the Components and New Power segments, Jacobs Vehicle Systems was included in the Components segment and Cummins Westport Joint Venture was included in the Engine segment. (2) Intangible assets acquired in the business combination were mostly technology and customer related.
Schedule of Finite-Lived Intangible Assets			The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: In millions September 30, December 31, Software $ 652 $ 586 Less: Accumulated amortization (378) (314) Software, net 274 272 Trademarks, patents, customer relationships and other (1) 2,711 957 Less: Accumulated amortization (383) (329) Trademarks, patents, customer relationships and other, net 2,328 628 Total other intangible assets, net $ 2,602 $ 900 (1) See NOTE 16, "ACQUISITIONS," for additional information on acquired intangible assets.
Meritor Inc.
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed			The preliminary purchase price allocation was as follows: In millions Cash and cash equivalents $ 98 Accounts and notes receivable, net 640 Inventories 752 Property, plant and equipment 846 Intangible assets 1,610 Investments and advances related to equity method investees 382 Goodwill 850 Pension assets 147 Other current and long-term assets 364 Accounts payable (principally trade) (711) Net deferred taxes (325) Pensions and other postretirement benefits (129) Long-term debt (962) Other current and long-term liabilities (590) Noncontrolling interests (111) Total purchase price $ 2,861
Schedule of Finite-Lived Intangible Assets	The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 960 12 Multi-period excess earnings Revenue, EBITDA, rate of return, renewal rates Technology 345 8 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 305 21 Relief-from-royalty Royalty rate, rate of return
Business Acquisition, Pro Forma Information			The unaudited pro forma financial information does not reflect any potential cost savings, operating efficiencies, long-term debt pay down estimates, financial synergies or other strategic benefits as a result of the acquisition or any restructuring costs to achieve those benefits. (Unaudited) Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, Net sales $ 7,734 $ 6,913 $ 23,071 $ 21,115 Net income 397 544 1,565 1,662 The Meritor acquisition increased net assets in the Components segment by $3.8 billion and New Power segment by $0.3 billion.
Jacobs Vehicle Systems
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed			The preliminary purchase price allocation was as follows: In millions Cash and cash equivalents $ 18 Accounts and notes receivable, net 24 Inventories 15 Property, plant and equipment 70 Intangible assets 164 Goodwill 108 Accounts payable (principally trade) (21) Net deferred taxes (27) Other, net (5) Total purchase price $ 346
Schedule of Finite-Lived Intangible Assets		The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 108 9 Multi-period excess earnings Rate of return, renewal rates Technology 31 7 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 25 14 Relief-from-royalty Royalty rate, rate of return

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	9 Months Ended
	Sep. 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 September 30, 2022 External sales $ 2,063 $ 2,232 $ 2,220 $ 773 $ 45 $ 7,333 Intersegment sales 716 7 483 576 5 1,787 Total sales 2,779 2,239 2,703 1,349 50 9,120 Research, development and engineering expenses 140 13 87 62 46 348 Equity, royalty and interest income (loss) from investees 28 20 17 10 (5) 70 Interest income 3 4 4 3 — 14 Russian suspension costs (1) — — 1 — — 1 Segment EBITDA 363 225 297 (2) 193 (96) 982 Depreciation and amortization (3) 51 29 95 30 10 215 Three months ended October 3, 2021 External sales $ 1,961 $ 1,952 $ 1,347 $ 688 $ 20 $ 5,968 Intersegment sales 617 7 446 476 3 1,549 Total sales 2,578 1,959 1,793 1,164 23 7,517 Research, development and engineering expenses 97 10 78 55 26 266 Equity, royalty and interest income (loss) from investees 61 15 10 11 (3) 94 Interest income 3 2 1 1 — 7 Segment EBITDA 391 192 253 134 (58) 912 Depreciation and amortization (3) 53 28 44 29 5 159 (1) See NOTE 3, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (2) Includes $45 million of costs related to the acquisition and integration of Meritor and $10 million of costs associated with the planned separation of our filtration business. (3) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. A portion of depreciation expense is included in Research, development and engineering expenses. Summarized financial information regarding our reportable operating segments for the nine months ended is shown in the table below: In millions Engine Distribution Components Power Systems New Power Total Segments Nine months ended September 30, 2022 External sales $ 6,204 $ 6,590 $ 5,214 $ 2,190 $ 106 $ 20,304 Intersegment sales 2,103 19 1,427 1,522 17 5,088 Total sales 8,307 6,609 6,641 3,712 123 25,392 Research, development and engineering expenses 365 39 236 184 121 945 Equity, royalty and interest income (loss) from investees 131 (1) 57 54 31 (12) 261 Interest income 8 9 7 5 — 29 Russian suspension costs (2) 33 (3) 55 5 19 — 112 Segment EBITDA 1,177 632 969 (4) 411 (243) 2,946 Depreciation and amortization (5) 151 86 187 92 25 541 Nine months ended October 3, 2021 External sales $ 5,776 $ 5,692 $ 4,627 $ 1,999 $ 77 $ 18,171 Intersegment sales 1,752 22 1,312 1,330 5 4,421 Total sales 7,528 5,714 5,939 3,329 82 22,592 Research, development and engineering expenses 288 35 232 172 75 802 Equity, royalty and interest income (loss) from investees 278 47 41 32 (1) 397 Interest income 7 5 3 3 — 18 Segment EBITDA 1,147 553 975 399 (169) 2,905 Depreciation and amortization (5) 154 88 138 97 17 494 (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) Includes $56 million of costs related to the acquisition and integration of Meritor and $15 million of costs associated with the planned separation of our filtration business. (5) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as Interest expense. The amortization of debt discount and deferred costs was $3 million and $3 million for the nine months ended September 30, 2022 and October 3, 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 Nine months ended In millions September 30, October 3, September 30, October 3, Total segment sales $ 9,120 $ 7,517 $ 25,392 $ 22,592 Elimination of intersegment sales (1,787) (1,549) (5,088) (4,421) Total net sales $ 7,333 $ 5,968 $ 20,304 $ 18,171
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Nine months ended In millions September 30, October 3, September 30, October 3, TOTAL SEGMENT EBITDA $ 982 $ 912 $ 2,946 $ 2,905 Intersegment eliminations and other (1) (98) (50) (252) (89) Less: Interest expense 61 28 112 85 Depreciation and amortization 215 159 541 494 INCOME BEFORE INCOME TAXES 608 675 2,041 2,237 Less: Income tax expense 199 134 502 473 CONSOLIDATED NET INCOME 409 541 1,539 1,764 Less: Net income attributable to noncontrolling interests 9 7 19 27 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 400 $ 534 $ 1,520 $ 1,737 (1) Intersegment eliminations and other included $6 million and $47 million of costs associated with the planned separation of our Filtration business for the three and nine months ended September 30, 2022.

NATURE OF OPERATIONS AND BASI_3

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) $ in Millions		3 Months Ended		9 Months Ended
	Aug. 03, 2022 USD ($)	Sep. 30, 2022 USD ($) shares	Oct. 03, 2021 USD ($) shares	Sep. 30, 2022 USD ($) country location shares	Oct. 03, 2021 USD ($) shares	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jul. 04, 2021 USD ($)	Apr. 04, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Real Estate Properties [Line Items]
Company Owned and Independent Distributor Locations Number | location				500
Countries and Territories Number | country				190
Options excluded (in shares) | shares		22,307	7,813	25,290	4,577
Total equity		$ 9,358	$ 8,702	$ 9,358	$ 8,702	$ 9,429		$ 9,035	$ 8,447		$ 8,707
Redeemable Noncontrolling Interest, Equity, Carrying Amount		252		252				366
Noncontrolling Interests
Real Estate Properties [Line Items]
Total equity		978	879	978	879	890		889	882		876
Noncontrolling Interests | Revision of Prior Period, Error Correction, Adjustment
Real Estate Properties [Line Items]
Total equity			42		42	27	$ 34	38	45	$ 48	51	$ 58
Additional Paid-in Capital
Real Estate Properties [Line Items]
Total equity		1,658	1,597	1,658	1,597	1,668		1,543	1,548		1,617
Additional Paid-in Capital | Revision of Prior Period, Error Correction, Adjustment
Real Estate Properties [Line Items]
Total equity			259		259	199	358	328	301	297	231	0
Redeemable Noncontrolling Interest
Real Estate Properties [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		$ 252	301	$ 252	301	226		366	346		282
Redeemable Noncontrolling Interest | Revision of Prior Period, Error Correction, Adjustment
Real Estate Properties [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount			$ 301		$ 301	$ 226	$ 392	$ 366	$ 346	$ 345	$ 282	$ 58
Meritor Inc.
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	$ 2,861
Meritor Inc. | Rounded Purchase Price Member
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	$ 2,900
Minimum
Real Estate Properties [Line Items]
Dealer Locations Number | location				10,000

REVENUE RECOGNITION LONGTERM _2

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 695		$ 695
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled revenue	244		244		$ 100
Deferred revenue, primarily extended warranty	1,788		1,788		$ 1,705
Contract with Customer, Liability, Revenue Recognized	123	$ 130	539	$ 432
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 125		$ 125
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]: 2023-10-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 570		$ 570
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years		10 years

REVENUE RECOGNITION DISAGGREG_3

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)	[1]	$ 7,333	$ 5,968	$ 20,304	$ 18,171
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		751	662	2,232	1,941
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		583	501	1,794	1,461
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		465	492	1,377	1,432
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,799	1,655	5,403	4,834
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		264	306	801	942
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		942	796	2,855	2,313
Engines (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		449	376	1,315	1,058
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		428	437	1,266	1,305
Service (DBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		413	343	1,154	1,016
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		748	699	2,323	2,466
Axles and brakes (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		732	0	732	0
Filtration (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		322	288	949	892
Turbo technologies (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		205	177	597	609
Automated Transmissions (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		159	112	436	374
Electronics and Fuel systems (CBU business)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		54	71	177	286
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		425	395	1,232	1,127
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		226	209	627	621
Generator technologies (PSBU product line)
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		122	84	331	251
Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,779	2,578	8,307	7,528
Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,239	1,959	6,609	5,714
Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,703	1,793	6,641	5,939
Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,349	1,164	3,712	3,329
External Sales | Engine
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,063	1,961	6,204	5,776
External Sales | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,232	1,952	6,590	5,692
External Sales | Components
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,220	1,347	5,214	4,627
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		773	688	2,190	1,999
UNITED STATES
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		4,116	3,177	11,361	9,500
CHINA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		601	679	1,774	2,468
CHINA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		89	80	270	239
INDIA
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		358	294	978	841
INDIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		55	48	155	138
OTHER INTERNATIONAL
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		2,258	1,818	6,191	5,362
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		1,512	1,237	4,374	3,631
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		258	236	744	675
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		174	143	494	467
AFRICA AND MIDDLE EAST | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		73	74	174	197
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		58	48	155	136
RUSSIA | Distribution
Disaggregation of Revenue [Line Items]
NET SALES (a) (Note 2)		$ 13	$ 86	$ 224	$ 209
[1] (a) Includes sales to nonconsolidated equity investees of $295 million and $920 million for the three and nine months ended September 30, 2022, compared with $385 million and $1,286 million for the comparable periods in 2021.

RUSSIAN OPERATIONS (Details)

RUSSIAN OPERATIONS (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022	Oct. 03, 2021	Dec. 31, 2021
Restructuring and Related Activities [Abstract]
Inventory Write-down	$ (2)			$ 17
Accounts Receivable, Allowance for Credit Loss, Writeoff	(1)			42
Impairment of Equity Method Investment	0			31
Other Restructuring Costs	4			22
Russian suspension costs (recoveries)	1	$ (47)	$ 158	112	$ 0
Total Restructuring Charges
Inventories (Note 8)	5,543			5,543		$ 4,355
Trade and other	4,450			4,450		3,565
Cash and cash equivalents	2,499			2,499	2,588	$ 2,592
Other Restructuring Costs	4			22
Russian suspension costs, net of recoveries (Note 3)	1	$ (47)	$ 158	112	$ 0
RUSSIA
Total Restructuring Charges
Inventories (Note 8)	13			13
Trade and other	15			15
Cash and cash equivalents	$ 71			$ 71

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Aug. 03, 2022	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021	Oct. 01, 2022
Pension and other postretirement benefits
Defined contribution pension plans		$ 26	$ 20	$ 82	$ 72
Meritor Inc.
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Business Combination	$ 147
Defined Benefit Plan, Benefit Obligation, Business Combination	$ 105
Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer		7	13	46	67
Other Postretirement Benefits Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer		9	5	25	19
Components of Net Periodic Benefit Cost
Service cost		0	0	0	0
Interest cost		2	1	4	3
Expected return on plan assets		0	0	0	0
Amortization of prior service cost		0	0	0	0
Recognized net actuarial loss		0	0	0	0
Net periodic benefit cost		2	1	4	3
Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year						$ 7
Net periodic pension cost						$ 20
UNITED STATES | Pension Plan
Components of Net Periodic Benefit Cost
Service cost		35	35	103	105
Interest cost		27	20	71	59
Expected return on plan assets		(60)	(49)	(164)	(149)
Amortization of prior service cost		1	0	1	0
Recognized net actuarial loss		5	11	17	35
Net periodic benefit cost		8	17	28	50
UNITED KINGDOM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost		7	8	23	25
Interest cost		10	8	28	23
Expected return on plan assets		(22)	(22)	(62)	(65)
Amortization of prior service cost		0	1	0	2
Recognized net actuarial loss		1	8	2	24
Net periodic benefit cost		$ (4)	$ 3	$ (9)	$ 9

EQUITY, ROYALTY AND INTEREST _3

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	$ 70	$ 94	$ 261	$ 397
Impairment of Equity Method Investment	0		31
Dongfeng Cummins Engine Company Ltd
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	8	11	35	63
Chongqing Cummins Engine Company, Ltd.
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	7	8	23	28
Beijing Foton Cummins Engine Company
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	6	23	34	108
Tata Cummins, Ltd.
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	5	6	19	13
All other manufacturers
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	11	21	14	104
Komatsu Cummins Chile, Ltda. (Distribution)
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	13	8	32	23
All other distributors
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	3	2	8	6
Cummin's Share of Equity Earnings
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	53	79	165	345
Joint Venture with KAMAZ
Schedule of Equity Method Investments [Line Items]
Impairment of Equity Method Investment			28
Royalty charges
Schedule of Equity Method Investments [Line Items]
Impairment of Equity Method Investment			3
Royalty and interest income
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	$ 17	$ 15	$ 96	$ 52

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	32.70%	19.90%	24.60%	21.10%
Discrete Tax Expense (Benefit)	$ 57	$ (11)	$ 52	$ (8)
Tax costs associated with internal restructuring	51		69
Income Tax Provision to Return Adjustment	10	5	10
Other Discrete Tax Expenses	$ (4)			10
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ (16)	$ (27)	$ (18)

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Oct. 03, 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	472		583
Marketable Securities, Unrealized Gain / (Loss)	(6)		12
Marketable securities	466		595
Proceeds from Sale of Held-to-maturity Securities	576	$ 428
Proceeds from Maturity of Marketable Securities	243	174
Proceeds from sales and maturities of marketable securities	819	$ 602
Certificates of deposit
Schedule of Available-for-sale Securities
Equity Securities, cost	229		299
Equity Securities, Unrealized Gain (Loss)	0		0
Equity Securities, Fair Value	229		299
Debt Mutual Funds
Schedule of Available-for-sale Securities
Equity Securities, cost	215		254
Equity Securities, Unrealized Gain (Loss)	(7)		2
Equity Securities, Fair Value	208		256
Equity mutual funds
Schedule of Available-for-sale Securities
Equity Securities, cost	28		29
Equity Securities, Unrealized Gain (Loss)	1		10
Equity Securities, Fair Value	$ 29		$ 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	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished products	$ 2,914	$ 2,538
Work-in-process and raw materials	2,860	2,009
Inventories at FIFO cost	5,774	4,547
Excess of FIFO over LIFO	(231)	(192)
Total inventories	$ 5,543	$ 4,355

GOODWILL (Details)

GOODWILL (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 2,229	$ 1,287
Acquisitions	958
Translation and other	(16)
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	2,602	900
Components
Goodwill [Line Items]
Goodwill	1,718	934
Acquisitions	799
Translation and other	(15)
New Power
Goodwill [Line Items]
Goodwill	416	257
Acquisitions	159
Translation and other	0
Distribution
Goodwill [Line Items]
Goodwill	79	79
Acquisitions	0
Translation and other	0
Power Systems
Goodwill [Line Items]
Goodwill	10	11
Acquisitions	0
Translation and other	(1)
Engine
Goodwill [Line Items]
Goodwill	6	6
Acquisitions	0
Translation and other	0
Computer Software, Intangible Asset
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	652	586
Finite-Lived Intangible Assets, Accumulated Amortization	(378)	(314)
Finite-Lived Intangible Assets, Net	274	272
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	2,711	957
Finite-Lived Intangible Assets, Accumulated Amortization	(383)	(329)
Finite-Lived Intangible Assets, Net	$ 2,328	$ 628

SUPPLEMENTAL BALANCE SHEET DA_3

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Deferred income taxes	$ 472	$ 428
Operating lease assets	471	444
Corporate owned life insurance	378	492
Other Assets, Miscellaneous, Noncurrent	656	402
Other assets	1,977	1,766
Marketing accruals	307	303
Income taxes payable	231	107
Other taxes payable	210	234
Current portion of operating lease liabilities	126	128
Other Accrued Liabilities, Current	694	418
Other accrued expenses	1,568	1,190
Deferred income taxes	570	403
Operating lease liabilities	347	326
Accrued compensation	201	177
Long-term income taxes	192	263
Mark-to-market valuation on interest rate derivatives	161	19
Other Accrued Liabilities, Noncurrent	421	320
Other liabilities	$ 1,892	$ 1,508

DEBT (Details)

DEBT (Details) - USD ($) $ in Millions			3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 17, 2022	Aug. 18, 2021	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021	Dec. 31, 2021	Jul. 13, 2022
Short-term Debt [Line Items]
Loans payable			$ 217		$ 217		$ 208
Commercial paper			2,393		2,393		313
Line of Credit Facility, Maximum Borrowing Capacity			4,000		4,000			$ 2,000
Line of Credit Facility, Remaining Borrowing Capacity			1,600		1,600
Long-term debt
Other Long-term Debt			121		121		110
Unamortized discount and deferred issuance costs			(65)		(65)		(68)
Fair value adjustments due to hedge on indebtedness					(133)		34
Finance Lease, Liability			109		109		89
Total long-term debt			5,505		5,505		3,638
Current maturities of long-term debt			55		55		59
Long-term debt			$ 5,450		$ 5,450		3,579
Leverage Ratio			65%		65%
Principal payments
2022			$ 13		$ 13
2023			563		563
2024			43		43
2025			2,509		2,509
2026			55		55
Gain (Loss) on Swaps			(47)	$ 0	(158)	$ 0
Gain (Loss) on Borrowings			45	0	159	0
Fair value
Fair value of total debt			7,635		7,635		4,461
Carrying value of total debt			8,115		$ 8,115		4,159
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Principal payments
Debt Instrument, Description of Variable Rate Basis					SOFR
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	$ 1,500
Debt Instrument, Term	364 days	364 days
Incremental Domestic Line of Credit
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 500
Debt Instrument, Term	364 days
EUROPE
Short-term Debt [Line Items]
Commercial paper			97		$ 97		113
UNITED STATES
Short-term Debt [Line Items]
Commercial paper			2,296		2,296		$ 200
Interest Rate Swap
Principal payments
Derivative, Notional Amount			500		500
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax			$ 21	$ 0	$ 103	$ 28
Commercial Paper
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time			2.82%		2.82%		(0.01%)
Line of Credit Facility, Maximum Borrowing Capacity			$ 4,000		$ 4,000
Commercial Paper | EUROPE
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time			0.87%		0.87%		(0.39%)
Commercial Paper | UNITED STATES
Short-term Debt [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time			2.91%		2.91%		0.21%
International and Other Lines of Credit
Short-term Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			$ 230		$ 230
Senior notes, due 2023
Long-term debt
Unsecured Debt			$ 500		$ 500		$ 500
Debt instrument interest rate (as a percent)			3.65%		3.65%
Term Loan Due 2025
Long-term debt
Unsecured Debt			$ 2,000		$ 2,000
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, due 2030(1)
Long-term debt
Unsecured Debt			$ 850		$ 850		850
Debt instrument interest rate (as a percent)			1.50%		1.50%
Senior notes, due 2030(1) | London Interbank Offered Rate (LIBOR)
Principal payments
Debt Instrument, Description of Variable Rate Basis					LIBOR
Senior notes, due 2030(1) | 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%
Filtration Facilities
Long-term debt
Debt instrument interest rate (as a percent)			0.10%		0.10%
Principal payments
Debt Instrument, Unused Borrowing Capacity, Amount			$ 1,000		$ 1,000
Filtration Facilities | Minimum
Principal payments
Debt Instrument, Basis Spread on Variable Rate					1.125%
Filtration Facilities | Maximum
Principal payments
Debt Instrument, Basis Spread on Variable Rate					1.75%
Filtration revolving credit facility
Principal payments
Debt Instrument, Unused Borrowing Capacity, Amount			400		$ 400
Filtration term loan facility
Principal payments
Debt Instrument, Unused Borrowing Capacity, Amount			$ 600		$ 600

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Footnote Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021	Dec. 31, 2021
Product Warranties Disclosures [Abstract]
Balance, beginning of year			$ 2,425	$ 2,307
Provision for base warranties issued			395	431
Deferred revenue on extended warranty contracts sold			215	210
Provision for product campaigns issued			132	162
Payments made during period			(476)	(409)
Amortization of deferred revenue on extended warranty contracts			(220)	(191)
Changes in estimates for pre-existing product warranties			(80)	(131)
Acquisitions			144	0
Foreign currency translation and other			19	(4)
Balance, end of period	$ 2,554	$ 2,375	2,554	2,375
Supplier recoveries	10	$ 88	33	$ 97
Product Warranty Liability
Current portion of warranty related deferred revenue	921		921		$ 855
Long term portion of warranty related deferred revenue	867		867		850
Deferred Revenue Related to extended coverage, Total	1,011		1,011		986
Current portion of accrued product warranty	801		801		755
Long-term portion of accrued product warranty	742		742		684
Standard Product Warranty Accrual	1,543		1,543		1,439
Current portion of deferred revenue
Product Warranty Liability
Current portion of warranty related deferred revenue	295		295		286
Deferred revenue
Product Warranty Liability
Long term portion of warranty related deferred revenue	716		716		700
Current portion of accrued product warranty
Product Warranty Liability
Current portion of accrued product warranty	801		801		755
Accrued product warranty
Product Warranty Liability
Long-term portion of accrued product warranty	$ 742		$ 742		$ 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
	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2020	Jul. 01, 2018	Dec. 31, 2020
Guarantees and Product Warranties [Abstract]
Provision for product campaigns issued	$ 29	$ 30	$ 20	$ 410	$ 430
Engine System Campaign Accrual, Present Value	$ 54

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) € in Millions, $ in Millions	3 Months Ended			9 Months Ended	18 Months Ended	48 Months Ended
	Sep. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2022 USD ($)	Jul. 01, 2018 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2022 EUR (€)
Guarantee Obligations
Provision for product campaigns issued	$ 29	$ 30	$ 20		$ 410	$ 430
Guarantor obligations, maximum potential loss	48			$ 48
Long-term purchase commitment, penalty exposure	138			138
Total commitments under commodity contracts	42			42
Performance Bonds and Other Performance Guarantees	118			118
Maximum Limit for Sale of Eligible Receivables	279			279			€ 210
Utilization of Accounts Receivable Factoring Facility Under Arrangement	235			235			164
Proceeds from Receivables Sold	108
Costs Associated with Off Balance Sheet Factoring Arrangements	1
Swedish Factoring Facility
Guarantee Obligations
Maximum Limit for Sale of Eligible Receivables	151			151			155
Utilization of Accounts Receivable Factoring Facility Under Arrangement	139			139			144
U.S. Factoring Facility
Guarantee Obligations
Maximum Limit for Sale of Eligible Receivables	75			75
Utilization of Accounts Receivable Factoring Facility Under Arrangement	76			76			0
U.K. Factoring Facility
Guarantee Obligations
Maximum Limit for Sale of Eligible Receivables	24			24			25
Utilization of Accounts Receivable Factoring Facility Under Arrangement	2			2			2
Italy Factoring Facility
Guarantee Obligations
Maximum Limit for Sale of Eligible Receivables	29			29			30
Utilization of Accounts Receivable Factoring Facility Under Arrangement	11			11			11
Other Factoring Facility
Guarantee Obligations
Utilization of Accounts Receivable Factoring Facility Under Arrangement	$ 7			$ 7			€ 7
Maximum
Guarantee Obligations
Forward Contract, Term				two years

REDEEMABLE NONCONTROLLING INT_2

REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Noncontrolling Interest [Abstract]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	19%
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 252	$ 366

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period			$ (1,571)
Before tax amount	$ (329)	$ 6	(467)	$ 31
Tax (expense) benefit	(12)	(4)	(31)	(15)
After tax amount	(341)	2	(498)	16
Amounts reclassified from accumulated other comprehensive income (loss)(1)	9	18	18	50
Net current period other comprehensive income (loss)	(332)	20	(480)	66
Balance at the end of the period	(2,013)		(2,013)
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	(324)	(689)	(346)	(735)
Before tax amount	0	1	14	16
Tax (expense) benefit		(1)	(3)	(3)
After tax amount	0	0	11	13
Amounts reclassified from accumulated other comprehensive income (loss)(1)	6	17	17	50
Net current period other comprehensive income (loss)	6	17	28	63
Balance at the end of the period	(318)	(672)	(318)	(672)
Foreign currency translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,426)	(1,231)	(1,208)	(1,204)
Before tax amount	(365)	(2)	(589)	(33)
Tax (expense) benefit	1	0	7	4
After tax amount	(364)	(2)	(582)	(29)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	0	0	0
Net current period other comprehensive income (loss)	(364)	(2)	(582)	(29)
Balance at the end of the period	(1,790)	(1,233)	(1,790)	(1,233)
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	54	(9)	(17)	(43)
Before tax amount	51	5	146	53
Tax (expense) benefit	(13)	(3)	(35)	(16)
After tax amount	38	2	111	37
Amounts reclassified from accumulated other comprehensive income (loss)(1)	3	1	1
Net current period other comprehensive income (loss)	41	3	112	37
Balance at the end of the period	95	(6)	95	(6)
Total attributable to Cummins Inc.
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,696)	(1,929)	(1,571)	(1,982)
Before tax amount	(314)	4	(429)	36
Tax (expense) benefit	(12)	(4)	(31)	(15)
After tax amount	(326)	0	(460)	21
Amounts reclassified from accumulated other comprehensive income (loss)(1)	9	18	18	50
Net current period other comprehensive income (loss)	(317)	18	(442)	71
Balance at the end of the period	(2,013)	(1,911)	(2,013)	(1,911)
Noncontrolling interests
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Before tax amount	(15)	2	(38)	(5)
Tax (expense) benefit	0	0	0	0
After tax amount	(15)	2	(38)	(5)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0	0	0
Net current period other comprehensive income (loss)	$ (15)	$ 2	$ (38)	$ (5)

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ / shares in Units, $ in Millions					3 Months Ended		9 Months Ended
		Aug. 03, 2022 USD ($) $ / shares	Apr. 08, 2022 USD ($)	Feb. 07, 2022 USD ($)	Sep. 30, 2022 USD ($)	Oct. 03, 2021 USD ($)	Sep. 30, 2022 USD ($)	Oct. 03, 2021 USD ($)	Sep. 30, 2022 EUR (€)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Goodwill					$ 2,229		$ 2,229			$ 1,287
Investments and advances related to equity method investees					1,826		1,826			1,538
NET SALES (a) (Note 2)	[1]				7,333	$ 5,968	20,304	$ 18,171
Components
Business Acquisition [Line Items]
Goodwill					1,718		1,718			934
NET SALES (a) (Note 2)					2,703	1,793	6,641	5,939
New Power
Business Acquisition [Line Items]
Goodwill					416		416			$ 257
NET SALES (a) (Note 2)					50	23	123	82
Meritor Inc.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100%
Payments to Acquire Businesses, Gross		$ 2,613
Payments to Acquire Businesses Liabilities Paid		248
Business Combination, Consideration Transferred		2,861
Goodwill		850
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets		$ 1,610
Business Acquisition, Share Price | $ / shares		$ 36.50
Repayments of Debt					900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents		$ 98
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables		640
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		752
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		846
Investments and advances related to equity method investees		382
Defined Benefit Plan, Plan Assets, Business Combination		147
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets		364
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable		(711)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities		(325)
Liability, Defined Benefit Plan		(129)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-Term Debt		(962)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other		(590)
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		(111)
Amortization of Intangible Assets		142
NET SALES (a) (Note 2)					737
Income (Loss) from Subsidiaries, Net of Tax					(37)
Business Acquisition, Transaction Costs					30		30
Business Acquisition, Pro Forma Revenue					7,734	6,913	23,071	21,115
Business Acquisition, Pro Forma Net Income (Loss)					397	$ 544	1,565	$ 1,662
Unsecured Debt					2,000		2,000
Meritor Inc. | Rounded Purchase Price Member
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		2,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-Term Debt					(1,000)		(1,000)
Meritor Inc. | Components
Business Acquisition [Line Items]
Goodwill		691
Meritor Inc. | New Power
Business Acquisition [Line Items]
Goodwill		159
Meritor Inc. | Customer Relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 960
Finite-Lived Intangible Asset, Useful Life		12 years
Meritor Inc. | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 345
Finite-Lived Intangible Asset, Useful Life		8 years
Meritor Inc. | Trade Names
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 305
Finite-Lived Intangible Asset, Useful Life		21 years
Jacobs Vehicle Systems
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			100%
Payments to Acquire Businesses, Gross			$ 346
Payments to Acquire Businesses Liabilities Paid			0
Business Combination, Consideration Transferred			346
Goodwill			108
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets			164
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
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)					43		$ 80
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
Jacobs Vehicle Systems | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 31
Finite-Lived Intangible Asset, Useful Life			7 years
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
Westport Fuel System Inc.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				50%
Payments to Acquire Businesses, Gross				$ 42
Payments to Acquire Businesses Liabilities Paid				0
Business Combination, Consideration Transferred				42
Goodwill				0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets				$ 20
Siemens Commercial Vehicles business
Business Acquisition [Line Items]
Other Commitment | €									€ 190
[1] (a) Includes sales to nonconsolidated equity investees of $295 million and $920 million for the three and nine months ended September 30, 2022, compared with $385 million and $1,286 million for the comparable periods in 2021.

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Oct. 03, 2021	Sep. 30, 2022	Oct. 03, 2021
Segment reporting
NET SALES (a) (Note 2)	[1]	$ 7,333			$ 5,968	$ 20,304	$ 18,171
Research, development and engineering expenses		348			266	945	802
Equity, royalty and interest income (loss) from investees		70			94	261	397
Russian suspension costs (recoveries)		1	$ (47)	$ 158		112	0
Interest expense		61			28	112	85
Depreciation and amortization		215			159	541	494
INCOME BEFORE INCOME TAXES		608			675	2,041	2,237
Income tax expense (Note 6)		199			134	502	473
CONSOLIDATED NET INCOME		409			541	1,539	1,764
Less: Net income attributable to noncontrolling interests		9			7	19	27
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		400			534	1,520	1,737
Impairment of Equity Method Investment		0				31
Amortization of Debt Discount (Premium)						3	3
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)		2,779			2,578	8,307	7,528
Research, development and engineering expenses		140			97	365	288
Equity, royalty and interest income (loss) from investees		28			61	131	278
Interest income		3			3	8	7
Russian suspension costs (recoveries)		0				33
Segment EBITDA		363			391	1,177	1,147
Depreciation and amortization		51			53	151	154
Distribution
Segment reporting
NET SALES (a) (Note 2)		2,239			1,959	6,609	5,714
Research, development and engineering expenses		13			10	39	35
Equity, royalty and interest income (loss) from investees		20			15	57	47
Interest income		4			2	9	5
Russian suspension costs (recoveries)		0				55
Segment EBITDA		225			192	632	553
Depreciation and amortization		29			28	86	88
Components
Segment reporting
NET SALES (a) (Note 2)		2,703			1,793	6,641	5,939
Research, development and engineering expenses		87			78	236	232
Equity, royalty and interest income (loss) from investees		17			10	54	41
Interest income		4			1	7	3
Russian suspension costs (recoveries)		1				5
Segment EBITDA		297			253	969	975
Depreciation and amortization		95			44	187	138
Meritor acquisition and integration costs		45				56
Filtration business separation costs		10				15
Power Systems
Segment reporting
NET SALES (a) (Note 2)		1,349			1,164	3,712	3,329
Research, development and engineering expenses		62			55	184	172
Equity, royalty and interest income (loss) from investees		10			11	31	32
Interest income		3			1	5	3
Russian suspension costs (recoveries)		0				19
Segment EBITDA		193			134	411	399
Depreciation and amortization		30			29	92	97
New Power
Segment reporting
NET SALES (a) (Note 2)		50			23	123	82
Research, development and engineering expenses		46			26	121	75
Equity, royalty and interest income (loss) from investees		(5)			(3)	(12)	(1)
Interest income		0			0	0	0
Russian suspension costs (recoveries)		0				0
Segment EBITDA		(96)			(58)	(243)	(169)
Depreciation and amortization		10			5	25	17
Total Segments
Segment reporting
NET SALES (a) (Note 2)		9,120			7,517	25,392	22,592
Research, development and engineering expenses		348			266	945	802
Equity, royalty and interest income (loss) from investees		70			94	261	397
Interest income		14			7	29	18
Russian suspension costs (recoveries)		1				112
Segment EBITDA		982			912	2,946	2,905
Depreciation and amortization		215			159	541	494
Corporate and Other
Segment reporting
NET SALES (a) (Note 2)		(1,787)			(1,549)	(5,088)	(4,421)
Segment EBITDA		(98)			(50)	(252)	(89)
Filtration business separation costs		6				47
External Sales | Engine
Segment reporting
NET SALES (a) (Note 2)		2,063			1,961	6,204	5,776
External Sales | Distribution
Segment reporting
NET SALES (a) (Note 2)		2,232			1,952	6,590	5,692
External Sales | Components
Segment reporting
NET SALES (a) (Note 2)		2,220			1,347	5,214	4,627
External Sales | Power Systems
Segment reporting
NET SALES (a) (Note 2)		773			688	2,190	1,999
External Sales | New Power
Segment reporting
NET SALES (a) (Note 2)		45			20	106	77
External Sales | Total Segments
Segment reporting
NET SALES (a) (Note 2)		7,333			5,968	20,304	18,171
Intersegment sales | Engine
Segment reporting
NET SALES (a) (Note 2)		716			617	2,103	1,752
Intersegment sales | Distribution
Segment reporting
NET SALES (a) (Note 2)		7			7	19	22
Intersegment sales | Components
Segment reporting
NET SALES (a) (Note 2)		483			446	1,427	1,312
Intersegment sales | Power Systems
Segment reporting
NET SALES (a) (Note 2)		576			476	1,522	1,330
Intersegment sales | New Power
Segment reporting
NET SALES (a) (Note 2)		5			3	17	5
Intersegment sales | Total Segments
Segment reporting
NET SALES (a) (Note 2)		$ 1,787			$ 1,549	$ 5,088	$ 4,421
[1] (a) Includes sales to nonconsolidated equity investees of $295 million and $920 million for the three and nine months ended September 30, 2022, compared with $385 million and $1,286 million for the comparable periods in 2021.

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details)	Oct. 01, 2022 EUR (€)
Subsequent Event
Subsequent Event [Line Items]
Other Commitment	€ 115