Cummins (CMI) 10-K 14 Feb 23 2022 FY Annual report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document - USD ($) $ / shares in Units, $ in Billions	12 Months Ended
	Dec. 31, 2022	Jan. 31, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Current Fiscal Year End Date	--12-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 27.3
Entity Common Stock, Shares Outstanding		141,375,256
Common Stock, Par or Stated Value Per Share	$ 2.50	$ 2.50
Entity Central Index Key	0000026172
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Document Annual Report	true
Amendment Flag	false
Document Transition Report	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Auditor [Line Items]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Indianapolis, Indiana

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Net sales	$ 28,074	$ 24,021	$ 19,811
Cost of sales	21,355	18,326	14,917
Gross Profit	6,719	5,695	4,894
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	2,687	2,374	2,125
Research, development and engineering expenses	1,278	1,090	906
Equity, royalty and interest income from investees	349	506	452
Other operating income (expense), net	174	31	46
OPERATING INCOME	2,929	2,706	2,269
Interest expense (Note 13)	199	111	100
Other income, net	89	156	169
INCOME BEFORE INCOME TAXES	2,819	2,751	2,338
Income tax expense (Note 5)	636	587	527
CONSOLIDATED NET INCOME	2,183	2,164	1,811
Less: Net income attributable to noncontrolling interests	32	33	22
Cummins share of net income	$ 2,151	$ 2,131	$ 1,789
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. (Note 21)
Basic (in dollars per share)	$ 15.20	$ 14.74	$ 12.07
Diluted (in dollars per share)	$ 15.12	$ 14.61	$ 12.01

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 2,183	$ 2,164	$ 1,811
Other comprehensive income (loss), net of tax (Note 18)
Change in pension and other postretirement defined benefit plans	(81)	389	(1)
Foreign currency translation adjustments	(384)	(9)	71
Unrealized gain (loss) on derivatives	106	26	(34)
Total other comprehensive loss, net of tax	(359)	406	36
COMPREHENSIVE INCOME	1,824	2,570	1,847
Less: Comprehensive (loss) income attributable to noncontrolling interests	(8)	28	12
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 1,832	$ 2,542	$ 1,835

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions	Dec. 31, 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	81.2	80
Current assets
Cash and cash equivalents	$ 2,101	$ 2,592
Marketable securities	472	595
Cash, cash equivalents and marketable securities	2,573	3,187
Accounts and notes receivable, net
Trade and other	4,826	3,565
Nonconsolidated equity investees	376	425
Inventories (Note 7)	5,603	4,355
Prepaid expenses and other current assets	1,073	777
Total current assets	14,451	12,309
Long-term assets
Property, plant and equipment, net (Note 8)	5,521	4,422
Investments and advances related to equity method investees (Note 4)	1,759	1,538
Goodwill (Note 10)	2,343	1,287
Other intangible assets, net (Note 10)	2,687	900
Pension assets (Note 11)	1,398	1,488
Other assets	2,140	1,766
Total assets	30,299	23,710
Current liabilities
Accounts payable (principally trade)	4,252	3,021
Loans payable (Note 13)	210	208
Commercial paper (Note 13)	2,574	313
Current maturities of long-term debt (Note 13)	573	59
Accrued compensation, benefits and retirement costs	617	683
Current portion of accrued product warranty (Note 14)	726	755
Current portion of deferred revenue (Note 3)	1,004	855
Other accrued expenses (Note 12)	1,465	1,190
Total current liabilities	11,421	7,084
Long-term liabilities
Long-term debt (Note 13)	4,498	3,579
Deferred revenue (Note 3)	844	850
Other liabilities	3,311	2,796
Total liabilities	20,074	14,309
Commitments and contingencies (Note 15)
Redeemable Noncontrolling Interest, Equity, Carrying Amount	258	366
Cummins Inc. shareholders’ equity (Note 17)
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	2,243	2,099
Retained earnings	18,037	16,741
Treasury stock, at cost, 81.2 and 80.0 shares	(9,415)	(9,123)
Accumulated other comprehensive loss (Note 18)	(1,890)	(1,571)
Total Cummins Inc. shareholders' equity	8,975	8,146
Noncontrolling interests (Note 19)	992	889
Total equity	9,967	9,035
Total liabilities, redeemable noncontrolling interests and equity	$ 30,299	$ 23,710

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 2,183	$ 2,164	$ 1,811
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	784	662	673
Deferred income taxes (Note 5)	(274)	7	7
Equity in income of investees, net of dividends	64	(83)	(105)
Pension and OPEB expense (Note 11)	24	83	108
Pension contributions and OPEB payments (Note 11)	(85)	(102)	(121)
Russian suspension costs	111	0	0
Restructuring payments	0	(1)	(110)
Loss (Gain) on corporate owned life insurance	102	0	(57)
Foreign currency remeasurement and transaction exposure	(27)	37	2
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(697)	(174)	(51)
Inventories	(567)	(945)	46
Other current assets	(109)	2	(39)
Accounts Payable	538	217	288
Accrued Expenses	(170)	541	121
Changes in other liabilities	(1)	(6)	189
Other, net	86	(146)	(40)
Net cash provided by operating activities	1,962	2,256	2,722
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(916)	(734)	(528)
Acquisitions of businesses, net of cash acquired (Note 2)	(3,191)	0	0
Investments in marketable securities—acquisitions	(1,073)	(806)	(593)
Investments in marketable securities—liquidations (Note 6)	1,151	673	469
Other, net	(143)	(6)	(67)
Net cash used in investing activities	(4,172)	(873)	(719)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings (Note 13)	2,103	79	2,014
Net borrowings (payments) of commercial paper (Note 13)	2,261	(10)	(337)
Payments on borrowings and finance lease obligations	(1,550)	(73)	(73)
Dividend payments on common stock (Note 17)	(855)	(809)	(782)
Repurchases of common stock (Note 17)	(374)	(1,402)	(641)
Other, net	84	(12)	99
Net cash provided by (used in) financing activities	1,669	(2,227)	280
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations	50	35	(11)
Net (decrease) increase in cash and cash equivalents	(491)	(809)	2,272
Cash and cash equivalents at beginning of year	2,592	3,401	1,129
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 2,101	$ 2,592	$ 3,401

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Redeemable Noncontrolling Interest	Common Stock	Additional paid-in Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Treasury Stock	Common Stock Held in Trust	Accumulated Other Comprehensive Loss	Total Cummins Inc. Shareholders' Equity	Total Cummins Inc. Shareholders' Equity Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling interests	us-gaap_NetIncomeinTotalEquityexcludingNoncontrollingInterestAmount
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount			$ 58
BALANCE, AT THE BEGINNING OF THE PERIOD at Dec. 31, 2019	$ 8,407	$ (4)		$ 556	$ 1,790	$ 14,416	$ (4)	$ (7,225)	$ (2)	$ (2,028)	$ 7,507	$ (4)	$ 900
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest			(4)
Net income	1,811					1,789					1,789		26	$ 1,815
Other comprehensive loss, net of tax (Note 18)	36									46	46		(10)
Issuance of common stock	10				10						10
Employee benefits trust activity	34				32				2		34
Repurchases of common stock (Note 17)	(641)							(641)			(641)
Cash dividends on common stock (Note 17)	(782)					(782)					(782)
Distributions to noncontrolling interests	(26)												(26)
Share-based awards	88				1			87			88
Fair value adjustment of redeemable noncontrolling interests	(231)		231		(231)						(231)
Other shareholder transactions	1		3		15						15		(14)
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2020	8,707			556	1,617	15,419		(7,779)	0	(1,982)	7,831		876
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount			282
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest			(13)
Net income	2,164					2,131					2,131		46	2,177
Other comprehensive loss, net of tax (Note 18)	406									411	411		(5)
Issuance of common stock	1				1						1
Repurchases of common stock (Note 17)	(1,402)							(1,402)			(1,402)
Cash dividends on common stock (Note 17)	(809)					(809)					(809)
Distributions to noncontrolling interests	(28)												(28)
Share-based awards	56				1			55			56
Fair value adjustment of redeemable noncontrolling interests	(97)		97		(97)						(97)
Other shareholder transactions	24				21						(24)		0
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2021	9,035			556	1,543	16,741		(9,123)	0	(1,571)	8,146		889
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount	366		366
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest			(24)
Net income	2,183					2,151					2,151		56	$ 2,207
Other comprehensive loss, net of tax (Note 18)	(359)									(319)	(319)		(40)
Issuance of common stock	8				8						8
Repurchases of common stock (Note 17)	(374)							(374)			(374)
Cash dividends on common stock (Note 17)	(855)					(855)					(855)
Distributions to noncontrolling interests	(38)												(38)
Share-based awards	80				3			77			80
Acquisition of business (Note 2)	111												111
Fair value adjustment of redeemable noncontrolling interests	104		(104)		104						104
Other shareholder transactions	48				29			5			34		14
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2022	9,967			$ 556	$ 1,687	$ 18,037		$ (9,415)	$ 0	$ (1,890)	$ 8,975		$ 992
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 258		$ 258

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We were 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 460 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. Meritor was split into the newly formed axles and brakes business and electric powertrain. The results for the axles and brakes business are included in our Components segment while the electric powertrain portion is included in our New Power segment. See NOTE 2, "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. Our fiscal year ends on December 31, regardless of the day of the week on which December 31 falls. Principles of Consolidation Our Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). All intercompany balances and transactions are eliminated in consolidation. We include the accounts of all wholly-owned and majority-owned domestic and foreign subsidiaries where our ownership is more than 50 percent of outstanding equity interests except for majority-owned subsidiaries that are considered variable interest entities (VIEs) where we are not deemed to have a controlling financial interest. In addition, we also consolidate, regardless of our ownership percentage, VIEs or joint ventures for which we are deemed to have a controlling financial interest. We have variable interests in several businesses accounted for under the equity method of accounting, however most of these VIEs are unconsolidated. For consolidated entities where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported in our Consolidated Balance Sheets . The noncontrolling ownership interest in our income, net of tax, is classified as "Net income attributable to noncontrolling interests" in our Consolidated Statements of Net Income . Reclassifications Certain amounts for 2021 and 2020 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 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 Consolidated Balance Sheets with a corresponding offset in NCI and APIC. This error did not impact our Consolidated Statements of Net Income , Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows for any period. The amounts reclassified from NCI and revisions to APIC were 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 December 31, 2021 38 328 366 March 31, 2022 34 358 392 June 30, 2022 27 199 226 See NOTE 16, "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. Investments in Equity Investees We use the equity method to account for our investments in joint ventures, affiliated companies and alliances in which we have the ability to exercise significant influence, generally represented by equity ownership or partnership equity of at least 20 percent but not more than 50 percent. Generally, under the equity method, original investments in these entities are recorded at cost and subsequently adjusted by our share of equity in income or losses after the date of acquisition. Investment amounts in excess of our share of an investee's net assets are amortized over the life of the related asset creating the excess, except goodwill which is not amortized. Equity in income or losses of each investee is recorded according to our level of ownership; if losses accumulate, we record our share of losses until our investment has been fully depleted. If our investment has been fully depleted, we recognize additional losses only when we are the primary funding source. We eliminate (to the extent of our ownership percentage) in our Consolidated Financial Statements the profit in inventory held by our equity method investees that has not yet been sold to a third-party. Dividends received from equity method investees reduce the amount of our investment when received and do not impact our earnings. Our investments are classified as Investments and advances related to equity method investees in our Consolidated Balance Sheets. Our share of the results from joint ventures, affiliated companies and alliances is reported in our Consolidated Statements of Net Income as Equity, royalty and interest income from investees, and is reported net of all applicable income taxes. Our share of the results from our foreign equity investees are presented net of applicable foreign income taxes in our Consolidated Statements of Net Income . Our remaining U.S. equity investees are partnerships (non-taxable), thus there is no difference between gross or net of tax presentation as the investees are not taxed. See NOTE 4, "INVESTMENTS IN EQUITY INVESTEES," for additional information. Use of Estimates in the Preparation of the Financial Statements Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Consolidated Financial Statements . Significant estimates and assumptions in these Consolidated Financial Statements require the exercise of judgement and are used for, but not limited to, estimates of future cash flows and other assumptions associated with the valuation of intangible assets and goodwill and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, determination of discount rate and other assumptions for pensions and other postretirement benefit obligations and related costs, income taxes, deferred tax valuation allowances, contingencies and allowances for doubtful accounts. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Current supply chain disruptions and related future financial impacts cannot be estimated at this time. This uncertainty could have an impact on certain estimates used in the preparation of our 2022 financial results. Revenue From Contracts with Customers Revenue Recognition Sales of Products We sell to customers either through long-term arrangements or standalone purchase orders. Our long-term arrangements generally do not include committed volumes until underlying purchase orders are issued. Our performance obligations vary by contract, but may include diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, engine braking, cylinder deactivation and start and stop thermal management technologies, drivetrain systems and components including axles, drivelines, braking and suspension systems, electric power generation systems and construction related projects, batteries, electrified power systems, hydrogen production and fuel cell products, parts, maintenance services and extended warranty coverage. Typically, we recognize revenue on the products we sell at a point in time, generally in accordance with shipping terms, which reflects the transfer of control to the customer. Since control of construction projects transfer to the customer as the work is performed, revenue on these projects is recognized based on the percentage of inputs incurred to date compared to the total expected cost of inputs, which is reflective of the value transferred to the customer. Revenue is recognized under long-term maintenance and other service agreements over the term of the agreement as underlying services are performed based on the percentage of the cost of services provided to date compared to the total expected cost of services to be provided under the contract. Sales of extended coverage are recognized based on the pattern of expected costs over the extended coverage period or, if such a pattern is unknown, on a straight-line basis over the coverage period as the customer is considered to benefit from our stand ready obligation over the coverage period. In all cases, we believe cost incurred is the most representative depiction of the extent of service performed to date on a particular contract. Our arrangements may include the act of shipping products to our customers after the performance obligation related to that product has been satisfied. We have elected to account for shipping and handling as activities to fulfill the promise to transfer goods and have not allocated revenue to the shipping activity. All related shipping and handling costs are accrued at the time the related performance obligation is satisfied. Our sales arrangements may include the collection of sales and other similar taxes that are then remitted to the related taxing authority. We have elected to present the amounts collected for these taxes net of the related tax expense rather than presenting them as additional revenue. We grant credit limits and terms to customers based upon traditional practices and competitive conditions. Typical terms vary by market, but payments are generally due in 90 days or less from invoicing for most of our product and service sales, while payments on construction and other similar arrangements may be due on an installment basis. For contracts where the time between cash collection and performance is less than one year, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. For contracts where this time period exceeds one year, generally the timing difference is the result of business concerns other than financing. We do have a limited amount of customer financing for which we charge or impute interest, but such amounts are immaterial to our Consolidated Statements of Net Income. Sales Incentives We provide various sales incentives to both our distribution network and OEM customers. These programs are designed to promote the sale of our products in the channel or encourage the usage of our products by OEM customers. When there is uncertainty surrounding these sales incentives, we may limit the amount of revenue we recognize under a contract until the uncertainty has been resolved. Sales incentives primarily fall into three categories: • Volume rebates; • Market share rebates; and • Aftermarket rebates. For volume rebates, we provide certain customers with rebate opportunities for attaining specified volumes during a particular quarter or year. We consider the expected amount of these rebates at the time of the original sale as we determine the overall transaction price. We update our assessment of the amount of rebates that will be earned quarterly based on our best estimate of the volume levels the customer will reach during the measurement period. For market share rebates, we provide certain customers with rebate opportunities based on the percentage of their production that utilizes our product. These rebates are typically measured either quarterly or annually and we assess them at least quarterly to determine our current estimates of amounts expected to be earned. These estimates are considered in the determination of transaction price at the time of the original sale based on the current market shares, with adjustments made as the level changes. For aftermarket rebates, we provide incentives to promote sales to certain dealers and end-markets. These rebates are typically paid on a quarterly, or more frequent basis. At the time of the sales, we consider the expected amount of these rebates when determining the overall transaction price. Estimates are adjusted at the end of each quarter based on the amounts yet to be paid. These estimates are based on historical experience with the particular program. Sales Returns The initial determination of the transaction price may also be impacted by expected product returns. Rights of return do not exist for the majority of our sales other than for quality issues. We do offer certain return rights in our aftermarket business, where some aftermarket customers are permitted to return small amounts of parts and filters each year, and in our power generation business, which sells portable generators to retail customers. An estimate of future returns is accounted for at the time of sale as a reduction in the overall contract transaction price based on historical return rates. Multiple Performance Obligations Our sales arrangements may include multiple performance obligations. We identify each of the material performance obligations in these arrangements and allocate the total transaction price to each performance obligation based on its relative selling price. In most cases, the individual performance obligations are also sold separately and we use that price as the basis for allocating revenue to the included performance obligations. When an arrangement includes multiple performance obligations and invoicing to the customer does not match the allocated portion of the transaction price, unbilled revenue or deferred revenue is recorded reflecting that difference. Unbilled and deferred revenue are discussed in more detail below. Long-term Contracts Our long-term maintenance agreements often include a variable component of the transaction price. We are generally compensated under such arrangements on a cost per hour of usage basis. We typically can estimate the expected usage over the life of the contract, but reassess the transaction price each quarter and adjust our recognized revenue accordingly. Certain maintenance agreements apply to generators used to provide standby power, which have limited expectations of usage. These agreements may include monthly minimum payments, providing some certainty to the total transaction price. For these particular contracts that relate to standby power, we limit revenue recognized to date to an amount representing the total minimums earned to date under the contract plus any cumulative billings earned in excess of the minimums. We reassess the estimates of progress and transaction price on a quarterly basis. For prime power arrangements, revenue is not subject to such a constraint and is generally equal to the current estimate on a percentage of completion basis times the total expected revenue under the contract. Deferred Revenue The timing of our billing does not always match the timing of our revenue recognition. We record deferred revenue when we are entitled to bill a customer in advance of when we are permitted to recognize revenue. Deferred revenue may arise in construction and other power generation system contracts, where billings may occur in advance of performance or in accordance with specific milestones. Deferred revenue may also occur in long-term maintenance contracts, where billings are often based on usage of the underlying equipment, which generally follows a predictable pattern that often will result in the accumulation of collections in advance of our performance of the related maintenance services. Finally, deferred revenue exists in our extended coverage contracts, where the cash is collected prior to the commencement of the coverage period. Deferred revenue is included in our Consolidated Balance Sheets as a component of current liabilities for the amount expected to be recognized in revenue in a period of less than one year and long-term liabilities for the amount expected to be recognized as revenue in a period beyond one year. Deferred revenue is recognized as revenue when control of the underlying product, project or service passes to the customer under the related contract. Unbilled Revenue We recognize unbilled revenue when the revenue has been earned, but not yet billed. Unbilled revenue is included in our Consolidated Balance Sheets as a component of current assets for those expected to be collected in a period of less than one year and long-term assets for those expected to be collected in a period beyond one year. Unbilled revenue relates to our right to consideration for our completed performance under a contract. Unbilled revenue generally arises from contractual provisions that delay a portion of the billings on genset deliveries until commissioning occurs. Unbilled revenue may also occur when billings trail the provision of service in construction and long-term maintenance contracts. Our unbilled revenue is assessed for collection risks at the time the amounts are initially recorded. This estimate of expected losses reflects those losses expected to occur over the contractual life of the unbilled amount through the time of collection. We did not record any impairment losses on our unbilled revenues during the years ended December 31, 2022, 2021 and 2020. Contract Costs We are required to record an asset for the incremental costs of obtaining a contract with a customer and other costs to fulfill a contract not otherwise required to be immediately expensed when we expect to recover those costs. The only material incremental cost we incur is commission expense, which is generally incurred in the same period as the underlying revenue. Costs to fulfill a contract are generally limited to customer-specific engineering expenses that do not meet the definition of research and development expenses. As a practical expedient, we have elected to recognize these costs of obtaining a contract as an expense when the related contract period is less than one year. When the period exceeds one year, this asset is amortized over the life of the contract. We did not have any material capitalized balances at December 31, 2022 or 2021. Extended Warranty We sell extended warranty coverage on most of our engines and on certain components. We consider a warranty to be extended coverage in any of the following situations: • When a warranty is sold separately or is optional (extended coverage contracts, for example) or • When a warranty provides additional services. The consideration collected is initially deferred and is recognized as revenue in proportion to the costs expected to be incurred in performing services over the contract period. We compare the remaining deferred revenue balance quarterly to the estimated amount of future claims under extended warranty programs and provide an additional accrual when the deferred revenue balance is less than expected future costs. Foreign Currency Transactions and Translation We translate assets and liabilities of foreign entities to U.S. dollars, where the local currency is the functional currency, at month-end exchange rates. We translate income and expenses to U.S. dollars using weighted-average exchange rates. We record adjustments resulting from translation in a separate component of accumulated other comprehensive loss (AOCL) and include the adjustments in net income only upon sale, loss of controlling financial interest or liquidation of the underlying foreign investment. Foreign currency transaction gains and losses are included in current net income. For foreign entities where the U.S. dollar is the functional currency, including those operating in highly inflationary economies when applicable, we remeasure non-monetary balances and the related income statement amounts using historical exchange rates. We include the resulting gains and losses in income, including the effect of derivatives in our Consolidated Statements of Net Income , which combined with transaction gains and losses amounted to a net loss of $8 million and a net gain of $2 million and $4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Fair Value Measurements A three-level valuation hierarchy, based upon the observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets; • Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and • Level 3 - Instruments whose significant inputs are unobservable . Derivative Instruments We make use of derivative instruments in foreign exchange, commodity price and interest rate hedging programs. Derivatives currently in use are foreign currency forward contracts, commodity swap and interest rate swaps and locks. These contracts are used strictly for hedging and not for speculative purposes. Due to our international business presence, we are exposed to foreign currency exchange risk. We transact in foreign currencies and have assets, liabilities and investments in subsidiaries denominated in foreign currencies. Consequently, our income experiences some volatility related to movements in foreign currency exchange rates. In order to benefit from global diversification and after considering naturally offsetting currency positions, we enter into foreign currency forward contracts to minimize our existing exposures (recognized assets and liabilities) and hedge forecasted transactions. Foreign currency forward contracts are designated and qualify as foreign currency cash flow hedges. The unrealized gain or loss on the forward contract is deferred and reported as a component of AOCL. When the hedged forecasted transaction (sale or purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income. At December 31, 2022 and 2021, realized and unrealized gains and losses related to these hedges were not material to our financial statements. To minimize the income volatility resulting from the remeasurement of net monetary assets and payables denominated in a currency other than the functional currency, we enter into foreign currency forward contracts, which are considered economic hedges. The objective is to offset the gain or loss from remeasurement with the gain or loss from the fair market valuation of the forward contract. These derivative instruments are not designated as hedges. We are further exposed to foreign currency exchange risk as many of our subsidiaries are subject to fluctuations as the functional currencies of the underlying entities are not our U.S. dollar reporting currency. In order to minimize movements in certain investments, in 2022 we began entering into foreign exchange forwards designated as net investment hedges. These forwards are utilized to hedge portions of our net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. The change in fair value related to the spot-to-forward rate difference is recorded as other income (expense) with all other changes in fair value deferred and reported as components of AOCL. The unrealized gain or loss is classified into income in the same period when the foreign subsidiary is sold or substantially liquidated. We are exposed to fluctuations in commodity prices due to contractual agreements with component suppliers. In order to protect ourselves against future price volatility and, consequently, fluctuations in gross margins, we periodically enter into commodity swap and forward contracts with designated banks and other counterparties to fix the cost of certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations. These commodity swaps are designated and qualify as cash flow hedges. At December 31, 2022, realized and unrealized gains and losses related to these hedges were not material to our financial statements. We also enter into physical forward contracts, which qualify for the normal purchases scope exception and are treated as purchase commitments. Additional information on the physical forwards is included in NOTE 15, "COMMITMENTS AND CONTINGENCIES." We are exposed to market risk from fluctuations in interest rates. We manage our exposure to interest rate fluctuations through the use of interest rate swaps and locks. The objective is to more effectively balance our borrowing costs and interest rate risk for current and future exposure. The gain or loss on the swaps as well as the offsetting gain or loss on the hedged item are recognized in current income as interest expense. The gain or loss on the locks is deferred and reported as a component of AOCL. For more detail on our interest rate swaps, see NOTE 22, "DERIVATIVES." We record all derivatives at fair value in our financial statements. Cash flows related to derivatives that are designated as hedges are classified in the same manner as the item being hedged, while cash flows related to derivatives that are not designated as hedges are included in cash flows from investing activities in our Consolidated Statements of Cash Flows . Substantially all of our derivative contracts are subject to master netting arrangements, which provide us with the option to settle certain contracts on a net basis when they settle on the same day with the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. When material, we adjust the value of our derivative contracts for counter-party or our credit risk. None of our derivative instruments are subject to collateral requirements. Income Tax Accounting We determine our income tax expense using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits of net operating loss and credit carryforwards are also recognized as deferred tax assets. We evaluate the recoverability of our deferred tax assets each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. A valuation allowance is recorded to reduce the tax assets to the net value management believes is more likely than not to be realized. In the event our operating performance deteriorates, future assessments could conclude that a larger valuation allowance will be needed to further reduce the deferred tax assets. In addition, we operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. We accrue for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions. We believe we made adequate provisions for income taxes for all years that are subject to audit based upon the latest information available. A more complete description of our income taxes and the future benefits of our net operating loss and credit carryforwards is disclosed in NOTE 5, "INCOME TAXES." Cash and Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with an original maturity of 90 days or less at the time of purchase. The carrying amounts reflected in our Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to the short-term maturity of these investments. Cash payments for income taxes and interest were as follows: Years ended December 31, In millions 2022 2021 2020 Cash payments for income taxes, net of refunds $ 903 $ 521 $ 432 Cash payments for interest, net of capitalized interest 184 111 88 Marketable Securities Debt securities are classified as "held-to-maturity," "available-for-sale" or "trading." We determine the appropriate classification of debt securities at the time of purchase and re-evaluate such classifications at each balance sheet date. At December 31, 2022 and 2021, all of our debt securities were classified as available-for-sale. Debt and equity securities are carried at fair value with the unrealized gain or loss, net of tax, reported in other comprehensive income and other income, respectively. For debt securities, unrealized losses considered to be "other-than-temporary" are recognized currently in other income. The cost of securities sold is based on the specific identification method. The fair value of most investment securities is determined by currently available market prices. Where quoted market prices are not available, we use the market price of similar types of securities that are traded in the market to estimate fair value. See NOTE 6, "MARKETABLE SECURITIES," for a detailed description of our investments in marketable securities. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable represent amounts billed to customers and not yet collected or amounts that were earned, but may not be billed until the passage of time, and are recorded when the right to consideration becomes unconditional. Trade accounts receivable are recorded at the invoiced amount, which approximates net realizable value, and generally do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of expected credit losses in our existing accounts receivable. We determine the allowance based on our historical collection experience and by performing an analysis of our accounts receivable in light of the current economic environment. This estimate of expected losses reflects those losses expected to occur over the contractual life of the receivable. We review our allowance for doubtful accounts on a regular basis. In addition, when necessary, we provide an allowance for the full amount of specific accounts deemed to be uncollectible. Account balances are charged off against the allowance in the period in which we determine that it is probable the receivable will not be recovered. The allowance for doubtful accounts balances were $78 million and $33 million at December 31, 2022, and 2021, respectively, and bad debt write-offs were not material. Inventories Our inventories are stated at the lower of cost or net realizable value. For the years ended December 31, 2022 and 2021, approximately 14 p

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2022
Business Combinations [Abstract]
Acquisitions	NOTE 2. ACQUISITIONS Acquisitions for the year ended December 31, 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) Siemens Commercial Vehicles Propulsion (Siemens CVP) 11/30/22 100% $ 187 $ — $ 187 $ 70 $ 106 Meritor, Inc. 08/03/22 100% 2,613 248 2,861 894 1,610 Jacobs Vehicle Systems 04/08/22 100% 345 — 345 108 164 Westport JV 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, Siemens CVP was included in the New Power segment, Jacobs Vehicle Systems was included in the Components segment and Westport JV was included in the Engine segment. (2) Intangible assets acquired in the business combination were mostly customer, technology and trade name related. Siemens CVP On November 30, 2022, we acquired Siemens' Commercial Vehicles Propulsion business for approximately $187 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 commercial vehicle markets. This acquisition is included in our New Power segment. This acquisition added key capabilities in direct drive and transmission-based remote mount electric motors, inverters, software and related services that are critical elements in the next generation of electric powertrain, which will accelerate our ability to offer global customers a wider array of electrified product solutions across commercial vehicle applications. The preliminary purchase price allocation was as follows: In millions Inventories $ 21 Property, plant and equipment 3 Intangible assets 106 Goodwill 70 Deferred revenue (3) Other, net (10) Total purchase price $ 187 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 $ 62 20 Multi-period excess earnings Discount rate, customer renewal rates Technology 28 11 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 16 17 Relief-from-royalty Royalty rate, discount rate Annual amortization of the intangible assets for the next five years is expected to approximate $7 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. The majority of the goodwill is deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are the business'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 year ended December 31, 2022, were revenues of $2 million and loss of $4 million related to this business. The results of this business were reported in our New Power segment. Pro forma financial information for the acquisition was not presented as the effects are not material to our Consolidated Financial Statements. 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 was $2.9 billion, including debt that was retired on the closing date of $248 million. 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 13, "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 remain open include, but are not limited to, legal and other contingent liabilities and deferred taxes as we continue to refine our allocation by jurisdiction. The preliminary purchase price allocation has been updated as follows: In millions Cash and cash equivalents $ 98 Accounts and notes receivable, net 640 Inventories 750 Property, plant and equipment 846 Intangible assets 1,610 Investments and advances related to equity method investees 382 Goodwill 894 Pension assets 147 Other current and long-term assets 322 Accounts payable (principally trade) (711) Net deferred taxes (320) Other liabilities (pensions and other postretirement benefits) (129) Long-term debt (962) Other current and long-term liabilities (595) Noncontrolling interests (111) Total purchase price $ 2,861 We made certain measurement period adjustments in the fourth quarter to the balance sheet resulting in an increase in goodwill of $44 million. None of the adjustments were individually material. There was no income statement impact on prior periods as a result of these changes. 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 (1) , discount rate, customer renewal rates, customer attrition rates Technology 345 8 Relief-from-royalty Royalty rate, discount rate, obsolescence factor Trade name 305 21 Relief-from-royalty Royalty rate, discount rate (1) E arnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests 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 ($727 million) and the New Power segment ($167 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 results for the year ended December 31, 2022, were revenues of $1.9 billion and net loss of $43 million related to this business. In addition, in 2022 we incurred acquisition related costs of $30 million included in selling, general and administrative expenses in our Consolidated Statements of Net Income . The following table presents the supplemental consolidated results of the Company for the years ended December 31, 2022 and 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) Years ended In millions December 31, December 31, Net sales $ 30,841 $ 27,949 Net income 2,196 2,058 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 $345 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 final 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 (6) Total purchase price $ 345 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 Discount rate, customer renewal rates Technology 31 7 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 25 14 Relief-from-royalty Royalty rate, discount 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 year ended December 31, 2022, were revenues of $118 million and loss of $1 million related to this business. The results of this business were reported in our Components segment. Pro forma financial information for the acquisition was not presented as the effects are not material to our Consolidated Financial Statements. Westport JV On February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. 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 Consolidated Financial Statements. Pending Acquisition 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 our 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 in early 2023. Since we are the primary customer of the foundry, the acquisition is not expected to result in material incremental sales to our business. The acquisition will be included in our Engine segment.

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 3. 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 December 31, 2022, was $663 million. We expect to recognize the related revenue of $123 million over the next 12 months and $540 million over periods up to 10 years. See NOTE 14,"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: Years ended December 31, In millions 2022 2021 Unbilled revenue $ 257 $ 100 Deferred revenue, primarily extended warranty 1,848 1,705 We recognized revenue of $639 million and $509 million in 2022 and 2021, respectively, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during 2022 or 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. Years ended December 31, In millions 2022 2021 2020 United States $ 15,552 $ 12,489 $ 10,605 China 2,390 3,169 2,832 India 1,392 1,133 680 Other international 8,740 7,230 5,694 Total net sales $ 28,074 $ 24,021 $ 19,811 Segment Revenue Engine segment external sales by market were as follows: Years ended December 31, In millions 2022 2021 2020 Heavy-duty truck $ 2,995 $ 2,511 $ 1,800 Medium-duty truck and bus 2,412 1,978 1,629 Light-duty automotive 1,704 1,845 1,441 Total on-highway 7,111 6,334 4,870 Off-highway 1,088 1,255 1,055 Total sales $ 8,199 $ 7,589 $ 5,925 Components segment external sales by business were as follows: Years ended December 31, In millions 2022 2021 2020 Emission solutions $ 3,086 $ 3,142 $ 2,352 Axles and brakes 1,879 — — Filtration 1,259 1,171 1,005 Turbo technologies 806 787 673 Automated transmissions 593 481 303 Electronics and fuel systems 224 351 317 Total sales $ 7,847 $ 5,932 $ 4,650 Distribution segment external sales by region were as follows: Years ended December 31, In millions 2022 2021 2020 North America $ 5,948 $ 4,902 $ 4,688 Asia Pacific 1,011 901 799 Europe 705 647 597 China 351 323 340 Africa and Middle East 227 259 198 Commonwealth of Independent States 232 334 191 India 217 194 150 Latin America 210 182 147 Total sales $ 8,901 $ 7,742 $ 7,110 Distribution segment external sales by product line were as follows: Years ended December 31, In millions 2022 2021 2020 Parts $ 3,809 $ 3,136 $ 2,921 Engines 1,770 1,493 1,245 Power generation 1,767 1,754 1,686 Service 1,555 1,359 1,258 Total sales $ 8,901 $ 7,742 $ 7,110 Power Systems segment external sales by product line were as follows: Years ended December 31, In millions 2022 2021 2020 Power generation $ 1,658 $ 1,481 $ 1,155 Industrial 843 820 638 Generator technologies 450 349 262 Total sales $ 2,951 $ 2,650 $ 2,055

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Notes)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 3. 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 December 31, 2022, was $663 million. We expect to recognize the related revenue of $123 million over the next 12 months and $540 million over periods up to 10 years. See NOTE 14,"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: Years ended December 31, In millions 2022 2021 Unbilled revenue $ 257 $ 100 Deferred revenue, primarily extended warranty 1,848 1,705 We recognized revenue of $639 million and $509 million in 2022 and 2021, respectively, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during 2022 or 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. Years ended December 31, In millions 2022 2021 2020 United States $ 15,552 $ 12,489 $ 10,605 China 2,390 3,169 2,832 India 1,392 1,133 680 Other international 8,740 7,230 5,694 Total net sales $ 28,074 $ 24,021 $ 19,811 Segment Revenue Engine segment external sales by market were as follows: Years ended December 31, In millions 2022 2021 2020 Heavy-duty truck $ 2,995 $ 2,511 $ 1,800 Medium-duty truck and bus 2,412 1,978 1,629 Light-duty automotive 1,704 1,845 1,441 Total on-highway 7,111 6,334 4,870 Off-highway 1,088 1,255 1,055 Total sales $ 8,199 $ 7,589 $ 5,925 Components segment external sales by business were as follows: Years ended December 31, In millions 2022 2021 2020 Emission solutions $ 3,086 $ 3,142 $ 2,352 Axles and brakes 1,879 — — Filtration 1,259 1,171 1,005 Turbo technologies 806 787 673 Automated transmissions 593 481 303 Electronics and fuel systems 224 351 317 Total sales $ 7,847 $ 5,932 $ 4,650 Distribution segment external sales by region were as follows: Years ended December 31, In millions 2022 2021 2020 North America $ 5,948 $ 4,902 $ 4,688 Asia Pacific 1,011 901 799 Europe 705 647 597 China 351 323 340 Africa and Middle East 227 259 198 Commonwealth of Independent States 232 334 191 India 217 194 150 Latin America 210 182 147 Total sales $ 8,901 $ 7,742 $ 7,110 Distribution segment external sales by product line were as follows: Years ended December 31, In millions 2022 2021 2020 Parts $ 3,809 $ 3,136 $ 2,921 Engines 1,770 1,493 1,245 Power generation 1,767 1,754 1,686 Service 1,555 1,359 1,258 Total sales $ 8,901 $ 7,742 $ 7,110 Power Systems segment external sales by product line were as follows: Years ended December 31, In millions 2022 2021 2020 Power generation $ 1,658 $ 1,481 $ 1,155 Industrial 843 820 638 Generator technologies 450 349 262 Total sales $ 2,951 $ 2,650 $ 2,055

INVESTMENTS IN EQUITY INVESTEES

INVESTMENTS IN EQUITY INVESTEES	12 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN EQUITY INVESTEES	NOTE 4. INVESTMENTS IN EQUITY INVESTEES Investments and advances related to equity method investees and our ownership percentages were as follows: Ownership December 31, Dollars in millions percentage 2022 2021 Komatsu alliances 20-50% $ 295 $ 275 Beijing Foton Cummins Engine Co., Ltd. 50% 189 255 Sisamex 50% 144 — Cummins-Scania XPI Manufacturing, LLC 50% 130 125 Automotive Axles Limited 36% 125 — Chongqing Cummins Engine Company, Ltd. 50% 118 144 Dongfeng Cummins Engine Company, Ltd. 50% 106 148 Tata Cummins, Ltd. 50% 92 88 Freios Master 49% 86 — Other Various 474 503 Investments and advances related to equity method investees $ 1,759 $ 1,538 We have approximately $851 million in our investment account at December 31, 2022, that represents cumulative undistributed income in our equity investees. Dividends received from our unconsolidated equity investees were $318 million, $336 million and $271 million in 2022, 2021 and 2020, respectively. Equity, royalty and interest income from investees, net of applicable taxes, was as follows: Years ended December 31, In millions 2022 2021 2020 Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 45 $ 82 $ 63 Beijing Foton Cummins Engine Co., Ltd. 37 112 113 Chongqing Cummins Engine Company, Ltd. 32 39 35 Tata Cummins, Ltd. 27 18 19 (1) All other manufacturers 28 (2) 131 115 (3) Distribution entities Komatsu Cummins Chile, Ltda. 44 32 31 All other distributors 11 10 2 Cummins share of net income 224 424 378 Royalty and interest income 125 82 74 Equity, royalty and interest income from investees $ 349 $ 506 $ 452 (1) Includes $18 million in favorable adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 5, "INCOME TAXES" for additional information on India Tax Law Change. (2) 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 Westport JV. See NOTE 2, "ACQUISITIONS," and NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information. (3) Includes $19 million in favorable adjustments related to India Tax Law Change, impairment charges of $13 million and loss on sale of business of $8 million for a joint venture in the Power Systems segment. See NOTE 5, "INCOME TAXES" for additional information on India Tax Law Change. Manufacturing Entities Our manufacturing joint ventures were generally formed with customers and are primarily intended to allow us to increase our market penetration in geographic regions, reduce capital spending, streamline our supply chain management and develop technologies. Our largest manufacturing joint ventures are based in China and are included in the list below. Our engine manufacturing joint ventures are supplied by our Components segment in the same manner as it supplies our wholly-owned Engine segment and Power Systems segment manufacturing facilities. Our Components segment joint ventures and wholly-owned entities provide electronics, fuel systems, filtration, aftertreatment systems, turbocharger products, axles, drivelines, braking systems and automated transmissions that are used with our engines as well as some competitors' products. The results and investments in our joint ventures in which we have 50 percent or less ownership interest (except for Eaton Cummins Automated Transmission Technologies joint venture, which is consolidated due to our majority voting interest) are included in equity, royalty and interest income from investees and investments and advances related to equity method investees in our Consolidated Statements of Net Income and Consolidated Balance Sheets , respectively. • Beijing Foton Cummins Engine Co., Ltd. - Beijing Foton Cummins Engine Co., Ltd. is a joint venture in China with Beiqi Foton Motor Co., Ltd., a commercial vehicle manufacturer, which has two distinct lines of business - a light-duty business and a heavy-duty business. The light-duty business produces our families of ISF 2.5 liter to 4.5 liter high performance light-duty diesel engines in Beijing. These engines are used in light-duty and medium-duty commercial trucks, pick-up trucks, buses, multipurpose and sport utility vehicles with main markets in China and Brazil. Certain types of small construction equipment and industrial applications are also served by these engine families. The heavy-duty business produces the X11, X12, X13 and X15, ranging from 10.5 liter to 14.5 liter, high performance heavy-duty diesel engines and natural gas engines in Beijing. Certain types of construction equipment and industrial applications are also served by these engine families. • Dongfeng Cummins Engine Company, Ltd. - Dongfeng Cummins Engine Company, Ltd. (DCEC) is a joint venture in China with Dongfeng Automotive Co. Ltd., a subsidiary of Dongfeng Motor Corporation and one of the largest medium-duty and heavy-duty truck manufacturers in China. DCEC produces 3.9 liter to 14.5 liter diesel engines with a power range from 80 to 760 horsepower, natural gas engines and automated transmissions. On-highway engines are used in multiple applications in light-duty and medium-duty trucks, special purpose vehicles, buses and heavy-duty trucks with a main market in China. Off-highway engines are used in a variety of construction, power generation, marine and agriculture markets in China. • Chongqing Cummins Engine Company, Ltd. - Chongqing Cummins Engine Company, Ltd. is a joint venture in China with Chongqing Machinery and Electric Co. Ltd. This joint venture manufactures several models of our heavy-duty and high-horsepower diesel engines primarily serving the industrial and stationary power markets in China. • Tata Cummins, Ltd. - Tata Cummins, Ltd. is a joint venture in India with Tata Motors Ltd., the largest automotive company in India and a member of the Tata group of companies. This joint venture manufactures Cummins' 3.80 to 8.9-liter diesel and natural gas engines in India with a power range from 75 to 400 horsepower for use in trucks manufactured by Tata Motors, as well as for various industrial and power generation applications for Cummins. Distribution Entities We have an extensive worldwide distributor and dealer network through which we sell and distribute our products and services. Generally, our distributors are divided by geographic region with some of our distributors being wholly-owned by Cummins, some partially-owned and some independently owned. We consolidate all wholly-owned distributors and partially-owned distributors where we are the primary beneficiary and account for other partially-owned distributors using the equity method of accounting. Komatsu Cummins Chile, Ltda. - Komatsu Cummins Chile, Ltda. is a joint venture with Komatsu America Corporation. The joint venture is a distributor that offers the full range of our products and services to customers and end-users in Chile and Peru. In certain cases where we own a partial interest in a distributor, we may be obligated to purchase the other equity holders' interests if certain events occur (such as the death or resignation of the distributor principal or a change in control of Cummins Inc.). The purchase consideration of the equity interests may be determined based on the fair value of the distributor's assets. Repurchase obligations and practices vary by geographic region. All distributors that are partially-owned are considered to be related parties in our Consolidated Financial Statements . Equity Investee Financial Summary Summary financial information for our equity investees was as follows: Years ended and at December 31, In millions 2022 2021 2020 Net sales $ 7,501 $ 8,934 $ 7,794 Gross margin 1,211 1,574 1,418 Net income 475 802 696 Cummins share of net income $ 224 $ 424 $ 378 Royalty and interest income 125 82 74 Total equity, royalty and interest from investees $ 349 $ 506 $ 452 Current assets $ 4,252 $ 4,587 Long-term assets 1,935 1,850 Current liabilities (3,224) (3,573) Long-term liabilities (399) (288) Net assets $ 2,564 $ 2,576 Cummins share of net assets $ 1,715 $ 1,490

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5. INCOME TAXES The following table summarizes income before income taxes: Years ended December 31, In millions 2022 2021 2020 U.S. income $ 1,336 $ 1,251 $ 1,134 Foreign income 1,483 1,500 1,204 Income before income taxes $ 2,819 $ 2,751 $ 2,338 Income tax expense (benefit) consisted of the following: Years ended December 31, In millions 2022 2021 2020 Current U.S. federal and state $ 425 $ 261 $ 162 Foreign 485 319 358 Total current income tax expense 910 580 520 Deferred U.S. federal and state (229) (12) 2 Foreign (45) 19 22 Impact of India tax law changes — — (17) Total deferred income tax (benefit) expense (274) 7 7 Income tax expense $ 636 $ 587 $ 527 A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate was as follows: Years ended December 31, 2022 2021 2020 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal effect 1.3 1.1 1.0 Differences in rates and taxability of foreign subsidiaries and joint ventures 3.1 0.1 3.6 Research tax credits (1.8) (0.6) (1.3) Foreign derived intangible income (2.0) (1.0) (1.2) Impact of India tax law changes — — (0.7) Other, net 1.0 0.7 0.1 Effective tax rate 22.6 % 21.3 % 22.5 % The year ended December 31, 2022, contained discrete tax items that netted to zero, primarily due to $31 million of favorable changes in accrued withholding taxes, $29 million of favorable changes in tax reserves, $15 million of favorable valuation allowance adjustments and $9 million of favorable other net discrete items, offset by $69 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of our filtration business and $15 million of unfavorable return to provision adjustments related to the 2021 filed tax returns. The year ended December 31, 2021, contained $9 million of unfavorable net discrete tax items, primarily due to $12 million of unfavorable provision to return adjustments related to the 2020 filed tax returns, partially offset by $3 million of favorable other discrete tax items. The year ended December 31, 2020, contained $26 million of unfavorable net discrete tax items, primarily due to $33 million of unfavorable changes in tax reserves and $10 million of withholding tax adjustments, partially offset by $15 million of favorable changes due to the India Tax Law Change. The India Tax Law Change eliminated the dividend distribution tax and replaced it with a lower rate withholding tax as the burden shifted from the dividend payor to the dividend recipient for a net favorable income statement impact of $35 million. The India Tax Law Change resulted in the following adjustments to the Consolidated Statements of Net Income for the year ended December 31, 2020: In millions Favorable (Unfavorable) Equity, royalty and interest income from investees $ 37 Income tax expense (1) 17 Less: Net income attributable to noncontrolling interests (19) Net income statement impact $ 35 (1) The adjustment to income tax expense includes $15 million of favorable discrete items. At December 31, 2022, $5.2 billion of non-U.S. earnings are considered indefinitely reinvested in operations outside the U.S. for which deferred taxes were not provided. Determination of the related deferred tax liability, if any, is not practicable because of the complexities associated with the hypothetical calculation. Carryforward tax benefits and the tax effect of temporary differences between financial and tax reporting that give rise to net deferred tax assets (liabilities) were as follows: December 31, In millions 2022 2021 Deferred tax assets U.S. and state carryforward benefits $ 272 $ 218 Foreign carryforward benefits 527 177 Employee benefit plans 258 254 Warranty expenses 458 445 Lease liabilities 110 108 Capitalized research and development expenditures 238 — Accrued expenses 174 111 Other 126 74 Gross deferred tax assets 2,163 1,387 Valuation allowance (704) (360) Total deferred tax assets 1,459 1,027 Deferred tax liabilities Property, plant and equipment (369) (272) Unremitted income of foreign subsidiaries and joint ventures (210) (197) Employee benefit plans (311) (355) Lease assets (108) (105) Intangible assets (435) (44) Other (50) (29) Total deferred tax liabilities (1,483) (1,002) Net deferred tax (liabilities) assets $ (24) $ 25 Our 2022 U.S. carryforward benefits include $272 million of state credit and net operating loss carryforward benefits that begin to expire in 2023. Our foreign carryforward benefits include $527 million of net operating loss carryforwards that begin to expire in 2023. A valuation allowance is recorded to reduce the gross deferred tax assets to an amount we believe is more likely than not to be realized. The valuation allowance is $704 million and increased in 2022 by a net $344 million primarily due to the Meritor acquisition. The valuation allowance is primarily attributable to the uncertainty regarding the realization of a portion of the U.S. state and foreign net operating loss and tax credit carryforward benefits. Our Consolidated Balance Sheets contain the following tax related items: December 31, In millions 2022 2021 Prepaid expenses and other current assets Refundable income taxes $ 83 $ 101 Other assets Deferred income tax assets 625 428 Long-term refundable income taxes 14 — Other accrued expenses Income tax payable 173 107 Other liabilities Long-term income taxes 192 263 Deferred income tax liabilities 649 403 A reconciliation of unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 was as follows: December 31, In millions 2022 2021 2020 Balance at beginning of year $ 89 $ 122 $ 77 Additions to tax positions due to acquisitions 189 — — Additions to current year tax positions 17 11 9 Additions to prior years' tax positions 17 16 49 Reductions to prior years' tax positions (1) (28) (13) Reductions for tax positions due to settlements with taxing authorities (28) (32) — Balance at end of year $ 283 $ 89 $ 122 Included in the December 31, 2022, 2021 and 2020, balances are $270 million, $85 million and $114 million, respectively, related to tax positions that, if recognized, would favorably impact the effective tax rate in future periods. We also accrued interest expense related to the unrecognized tax benefits of $18 million, $15 million and $17 million as of December 31, 2022, 2021 and 2020, respectively. We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although we believe that adequate provision has been made for such issues, there is the possibility that the ultimate resolution of such issues could have an adverse effect on our earnings. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced, thus having a positive impact on earnings. As a result of our global operations, we file income tax returns in various jurisdictions including U.S. federal, state and foreign jurisdictions. We are routinely subject to examination by taxing authorities throughout the world, including Australia, Belgium, Brazil, Canada, China, France, India, Mexico, the U.K. and the U.S. With few exceptions, our U.S. federal, major state and foreign jurisdictions are no longer subject to income tax assessments for years before 2017.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2022
Marketable Securities [Abstract]
MARKETABLE SECURITIES	NOTE 6. MARKETABLE SECURITIES A summary of marketable securities, all of which are classified as current, was as follows: December 31, 2022 2021 In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 209 $ — $ 209 $ 299 $ — $ 299 Debt mutual funds 238 (5) 233 254 2 256 Equity mutual funds 25 3 28 29 10 39 Debt securities 2 — 2 1 — 1 Marketable securities $ 474 $ (2) $ 472 $ 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 our 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 2022 or 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: Years ended December 31, In millions 2022 2021 2020 Proceeds from sales of marketable securities $ 750 $ 494 $ 343 Proceeds from maturities of marketable securities 401 179 126 Investments in marketable securities - liquidations $ 1,151 $ 673 $ 469

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 7. INVENTORIES Inventories are stated at the lower of cost or net realizable value. Inventories included the following: December 31, In millions 2022 2021 Finished products $ 2,917 $ 2,538 Work-in-process and raw materials 2,926 2,009 Inventories at FIFO cost 5,843 4,547 Excess of FIFO over LIFO (240) (192) Inventories $ 5,603 $ 4,355

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 8. PROPERTY, PLANT AND EQUIPMENT Details of our property, plant and equipment balance were as follows: December 31, In millions 2022 2021 Land and buildings $ 2,908 $ 2,632 Machinery, equipment and fixtures 6,598 5,910 Construction in process 1,001 816 Property, plant and equipment, gross 10,507 9,358 Less: Accumulated depreciation (4,986) (4,936) Property, plant and equipment, net $ 5,521 $ 4,422

LEASES FOOTNOTE DISCLOSURE LEAS

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Notes)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases of Lessee Disclosure	NOTE 9. LEASES Our lease portfolio consists primarily of real estate and equipment leases. Our real estate leases primarily consist of land, office, distribution, warehousing and manufacturing facilities. These leases typically range in term from 2 to 50 years and may contain renewal options for periods up to 10 years at our discretion. Our equipment lease portfolio consists primarily of vehicles (including service vehicles), fork trucks and IT equipment. These leases typically range in term from two The components of our lease cost were as follows: Years ended December 31, In millions 2022 2021 2020 Operating lease cost $ 160 $ 172 $ 172 Finance lease cost Amortization of right-of-use asset 19 16 18 Interest expense 4 4 4 Short-term lease cost 23 18 19 Variable lease cost 12 11 12 Total lease cost $ 218 $ 221 $ 225 Supplemental balance sheet information related to leases: December 31, In millions 2022 2021 Balance Sheet Location Assets Operating lease assets $ 492 $ 444 Other assets Finance lease assets (1) 117 95 Property, plant and equipment, net Total lease assets $ 609 $ 539 Liabilities Current Operating lease liabilities $ 132 $ 128 Other accrued expenses Finance lease liabilities 32 14 Current maturities of long-term debt Long-term Operating lease liabilities 368 326 Other liabilities Finance lease liabilities 81 75 Long-term debt Total lease liabilities $ 613 $ 543 (1) Finance lease assets were recorded net of accumulated amortization of $78 million and $66 million at December 31, 2022 and 2021. Supplemental cash flow and other information related to leases: Years ended December 31, In millions 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 151 $ 159 $ 149 Operating cash flows from finance leases 4 4 4 Financing cash flows from finance leases 16 14 14 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 148 $ 160 $ 97 Finance leases 29 13 19 Additional information related to leases: December 31, 2022 2021 Weighted-average remaining lease term (in years) Operating leases 5.4 5.1 Finance leases 7.9 9.8 Weighted-average discount rate Operating leases 3.7 % 2.8 % Finance leases 4.7 % 3.9 % Following is a summary of the future minimum lease payments due to finance and operating leases with terms of more than one year at December 31, 2022, together with the net present value of the minimum payments: In millions Finance Leases Operating Leases 2023 $ 37 $ 145 2024 16 118 2025 13 93 2026 10 62 2027 9 45 After 2027 53 94 Total minimum lease payments 138 557 Interest (25) (57) Present value of net minimum lease payments $ 113 $ 500

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 10. GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021: In millions Components New Power Distribution Power Systems Engine Total Balance at December 31, 2020 $ 941 $ 257 $ 79 $ 10 $ 6 $ 1,293 Acquisitions — — — 2 — 2 Foreign currency translation and other (7) — — (1) — (8) Balance at December 31, 2021 934 257 79 11 6 1,287 Acquisitions 835 237 — — — 1,072 Foreign currency translation and other (17) 1 — — — (16) Balance at December 31, 2022 $ 1,752 $ 495 $ 79 $ 11 $ 6 $ 2,343 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: December 31, In millions 2022 2021 Software $ 679 $ 586 Less: Accumulated amortization (410) (314) Software, net 269 272 Trademarks, patents, customer relationships and other 2,858 957 Less: Accumulated amortization (440) (329) Trademarks, patents, customer relationships and other, net 2,418 628 Other intangible assets, net $ 2,687 $ 900 Amortization expense for software and other intangibles totaled $223 million, $144 million and $165 million for the years ended December 31, 2022, 2021 and 2020, respectively. The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows: In millions 2023 2024 2025 2026 2027 Projected amortization expense $ 315 $ 304 $ 274 $ 252 $ 231

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefits Disclosure	NOTE 11. PENSIONS AND OTHER POSTRETIREMENT BENEFITS Pension Plans We sponsor several pension plans covering substantially all employees. Generally, pension benefits for salaried employees are determined as a function of employee’s compensation. Pension benefits for most hourly employees are determined similarly and as a function of employee’s compensation, with the exception of a small group of hourly employees whose pension benefits were grandfathered in accordance with agreements with their union representation and are based on their years of service and compensation during active employment. The level of benefits and terms of vesting may vary among plans and are offered in accordance with applicable laws. Pension plan assets are administered by trustees and are principally invested in fixed income securities and equity securities. It is our policy to make contributions to our various qualified plans in accordance with statutory and contractual funding requirements, and any additional contributions we determine are appropriate. Prior to the acquisition, Meritor provided a range of benefits to certain employees and retirees, including pension benefits and postretirement healthcare benefits (OPEB). The Meritor U.S. and U.K. defined benefit plans are frozen. As part of the acquisition, we assumed the assets and liabilities associated with these plans, which are included in the tables below. Obligations, Assets and Funded Status Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for our pension plans. The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2022 2021 2022 2021 Change in benefit obligation Benefit obligation at the beginning of the year $ 3,012 $ 3,122 $ 1,887 $ 2,050 Service cost 137 139 30 33 Interest cost 101 79 39 30 Actuarial gain (643) (132) (702) (136) Benefits paid from fund (200) (178) (70) (63) Benefits paid directly by employer (25) (18) — — Plan amendment 3 — — — Assumption of Meritor's benefit obligation 786 — 418 — Foreign currency translation adjustments — — (204) (27) Benefit obligation at end of year $ 3,171 $ 3,012 $ 1,398 $ 1,887 Change in plan assets Fair value of plan assets at beginning of year $ 3,548 $ 3,429 $ 2,390 $ 2,337 Actual return on plan assets (244) 267 (960) 118 Employer contributions 25 30 3 30 Benefits paid from fund (200) (178) (70) (63) Assumption of Meritor's plan assets 699 — 565 — Foreign currency translation adjustments — — (258) (32) Fair value of plan assets at end of year $ 3,828 $ 3,548 $ 1,670 $ 2,390 Funded status (including unfunded plans) at end of year $ 657 $ 536 $ 272 $ 503 Amounts recognized in consolidated balance sheets Pension assets $ 1,126 $ 985 $ 272 $ 503 Accrued compensation, benefits and retirement costs (24) (18) — — Other liabilities (445) (431) — — Net amount recognized $ 657 $ 536 $ 272 $ 503 Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ 273 $ 467 $ 402 $ 61 Prior service cost 8 6 10 11 Net amount recognized $ 281 $ 473 $ 412 $ 72 In addition to the pension plans in the above table, we also maintain less significant defined benefit pension plans in 14 other countries outside of the U.S. and the U.K. that comprise approximately 4 percent and 5 percent of our pension plan assets and obligations, respectively, at December 31, 2022. These plans are reflected in other liabilities on our Consolidated Balance Sheets . In 2022 and 2021, we made $12 million and $13 million of contributions to these plans, respectively. The following table summarizes the total accumulated benefit obligation (ABO), the ABO for defined benefit pension plans with ABO in excess of plan assets and the PBO for defined benefit pension plans with PBO in excess of plan assets: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2022 2021 2022 2021 Total ABO $ 3,138 $ 2,986 $ 1,376 $ 1,844 Plans with ABO in excess of plan assets ABO 1,044 424 — — Plans with PBO in excess of plan assets PBO 1,078 449 — — Components of Net Periodic Pension Cost (Income) The following table presents the net periodic pension cost (income) under our plans for the years ended December 31: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2022 2021 2020 2022 2021 2020 Service cost $ 137 $ 139 $ 133 $ 30 $ 33 $ 29 Interest cost 101 79 95 39 30 36 Expected return on plan assets (229) (199) (195) (87) (85) (74) Amortization of prior service cost 1 1 1 1 2 2 Recognized net actuarial loss 23 47 41 3 31 34 Net periodic pension cost (income) $ 33 $ 67 $ 75 $ (14) $ 11 $ 27 Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows: In millions 2022 2021 2020 Amortization of prior service cost $ (2) $ (3) $ (3) Recognized net actuarial loss (26) (78) (75) Incurred prior service cost 3 — — Incurred actuarial loss (gain) 173 (368) 85 Foreign currency translation adjustments — 5 19 Total recognized in other comprehensive loss (income) $ 148 $ (444) $ 26 Total recognized in net periodic pension cost and other comprehensive loss (income) $ 167 $ (366) $ 128 Assumptions The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2022 2021 2022 2021 Discount rate 5.55 % 3.01 % 4.99 % 1.95 % Cash balance crediting rate 4.56 % 3.79 % — — Compensation increase rate 5.35 % 2.71 % 3.75 % 3.75 % The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2022 2021 2020 2022 2021 2020 Discount rate 3.31 % 2.62 % 3.36 % 2.26 % 1.50 % 2.00 % Expected return on plan assets 6.50 % 6.25 % 6.25 % 4.01 % 4.00 % 4.00 % Compensation increase rate 2.71 % 2.72 % 2.73 % 3.75 % 3.75 % 3.75 % Plan Assets Our investment policies, excluding Meritor, in the U.S. and U.K. provide for the rebalancing of assets to maintain our long-term strategic asset allocation. We are committed to this long-term strategy and do not attempt to time the market. Given empirical evidence that asset allocation is critical, rebalancing of the assets has and continues to occur, maintaining the proper weighting of assets to achieve the expected total portfolio returns. We believe that our portfolio is highly diversified and does not have any significant exposure to concentration risk. The plan assets for our defined benefit pension plans do not include any of our common stock or corporate bonds. Meritor’s investment policies in the U.S. and U.K. have historically targeted a well-diversified asset allocation strategy to promote asset growth while maintaining an acceptable level of risk over the long-term with a goal of minimizing company contributions. We are actively reviewing the plan investments and will pursue adjustments to the allocation when appropriate and necessary to align the assets more closely with our management’s strategy and view of prudent and acceptable risk to the company, the plan and its funding goals. U.S. Plan Assets For the Cummins U.S. qualified pension plan, our assumption for the expected return is greatly influenced by our objective to match assets and liabilities and the increase in bond yields. Projected returns are based primarily on broad, publicly traded equity and fixed income indices and forward-looking estimates of active portfolio and investment management. We expect additional positive returns from this active investment management. Based on the historical returns and forward-looking return expectations, we elected an assumption of 7.00 percent in 2023. For the Meritor U.S. qualified pension plan, our assumption for the expected return is based upon the primary investment objective to exceed, on a net-of-fees basis, the rate of return on a policy portfolio represented in the following table. We expect active management and the alternative investments to provide excess return over the long run. Based upon these objectives, historical returns, yield curve movements and forward-looking expectations, we elected an assumption of 7.00 percent in 2023. To achieve these objectives, we established the following targets: Cummins Meritor Asset Class Plan Target Plan Target U.S. equities 5 % 11 % Non-U.S. equities 1 % 9 % Global equities 6 % — % Total equities 12 % 20 % Real assets 6 % — % Private equity/venture capital 6 % — % Opportunistic credit 4 % — % Alternative investments — % 39 % Fixed income 72 % 41 % Total 100 % 100 % The fixed income component of the Cummins plan is structured to represent a custom bond benchmark that will closely hedge the change in the value of our liabilities. This component is structured in such a way that its benchmark covers approximately 100 percent of the plan's exposure to changes in its discount rate (AA corporate bond yields). In order to achieve a hedge on more than the targeted 72 percent of plan assets invested in fixed income securities, our Benefits Policy Committee (BPC) permits the fixed income managers, other managers or the custodian/trustee to utilize derivative securities, as part of a liability driven investment strategy to further reduce the plan's risk of declining interest rates. However, all managers hired to manage assets for the trust are prohibited from using leverage unless approved by the BPC. Investment strategies for the Meritor plan assets reflect a balance of risk-reducing and return-seeking considerations. The objective of minimizing the volatility of assets relative to liabilities is addressed primarily through asset diversification. Assets are broadly diversified across several asset classes to achieve risk-adjusted returns that accomplish this objective. Meritor plan assets are also allocated to fixed income investments, which seek to minimize interest rate risk volatility relative to pension liabilities. The fixed income portfolio partially matches the long-dated nature of the pension liabilities reducing interest rate risk. U.K. Plan Assets The methodology used to determine the rate of return on the Cummins and Meritor pension plan assets in the U.K. was based on establishing an equity-risk premium over current long-term bond yields adjusted based on target asset allocations. Our strategy with respect to our investments in these assets is to be invested in a suitable mixture of return-seeking assets such as equities, real estate and liability matching assets such as group annuity insurance contracts and duration matched bonds. Therefore, the risk and return balance of our U.K. asset portfolio should reflect a long-term horizon. To achieve these objectives, we established the following targets: Cummins Plan Target Meritor Plan Target Range Asset Class Minimum Maximum Equities 8 % 15 % 30 % Private markets/secure income assets 19 % — % — % Credit/bank loans 4 % — % 15 % Diversified strategies 4 % 25 % 50 % Real estate — % — % 15 % Fixed income/insurance annuity 64 % 25 % 45 % Cash 1 % — % — % Total 100 % As part of our strategy in the U.K. we have not prohibited the use of any financial instrument, including derivatives. As in the U.S. plan, derivatives may be used to better match liability duration and are not used in a speculative way. The fixed income component of the Cummins portfolio, excluding the annuity contract, hedges approximately 15 percent of the plan’s exposure to interest rates and 30 percent of the plan’s exposure to inflation. The insurance annuity contract covers approximately another 21 percent of exposure to interest rates and 18 percent of inflation. The fixed income component of the Meritor portfolio, excluding the annuity contract, hedges approximately 100 percent of the plan's exposure to interest rates and 100 percent of the plan's exposure to inflation. The insurance annuity contract effectively hedges 100 percent of the insured liabilities exposure to interest rates and 100 percent of the insured liabilities to inflation. Based on the above discussion, we elected an assumption of 5.00 percent in 2023. Fair Value of U.S. Plan Assets The fair values of U.S. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 118 $ — $ — $ 118 Non-U.S. 31 — — 31 Fixed income Government debt 188 — 188 Corporate debt U.S. — 423 — 423 Non-U.S. 12 41 — 53 Asset/mortgaged backed securities 7 — — 7 Net cash equivalents (1) 499 9 — 508 Diversified strategies 14 — — 14 Private markets and real assets (2) — — 641 641 Net plan assets subject to leveling $ 681 $ 661 $ 641 $ 1,983 Accruals (3) 7 Investments measured at net asset value 1,838 Net plan assets $ 3,828 Fair Value Measurements at December 31, 2021 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 115 $ — $ — $ 115 Non-U.S. 38 — — 38 Fixed income Government debt 37 30 — 67 Corporate debt U.S. — 489 — 489 Non-U.S. — 19 — 19 Net cash equivalents (1) 270 57 — 327 Private markets and real assets (2) — — 551 551 Net plan assets subject to leveling $ 460 $ 595 $ 551 $ 1,606 Pending trade/purchases/sales 2 Accruals (3) 6 Investments measured at net asset value 1,934 Net plan assets $ 3,548 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31. Certain of our assets are valued based on their respective net asset value (NAV) (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows: • U.S. and Non-U.S. Corporate Debt ($938 million and $995 million at December 31, 2022 and 2021, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • U.S. and Non-U.S. Equities ($224 million and $145 million at December 31, 2022 and 2021, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Government Debt ($227 million and $361 million at December 31, 2022 and 2021, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Real Estate ($154 million and $171 million at December 31, 2022 and 2021, respectively) - This asset type represents different types of real estate including development property, industrial property, individual mortgages, office property, property investment companies and retail property. These funds are valued using NAVs and allow quarterly or more frequent redemptions. • Asset/Mortgage Backed Securities ($277 million and $262 million at December 31, 2022 and 2021, respectively) - This asset type represents investments in fixed- and floating-rate loans. These funds are valued using NAVs and allow quarterly or more frequent redemptions. • Diversified Strategies ($18 million at December 31, 2022) - These commingled funds invest in commodities, fixed income and equity securities. They have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Private Markets Real Assets Total Balance at December 31, 2020 $ 359 $ 72 $ 431 Actual return on plan assets Unrealized gains on assets still held at the reporting date 144 11 155 Purchases, sales and settlements, net (32) (3) (35) Balance at December 31, 2021 471 80 551 Actual return on plan assets Unrealized gains on assets still held at the reporting date 6 19 25 Purchases, sales and settlements, net (12) (17) (29) Assumption of Meritor's plan assets 94 — 94 Balance at December 31, 2022 $ 559 $ 82 $ 641 Fair Value of U.K. Plan Assets The fair values of U.K. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 13 $ — $ — $ 13 Non-U.S. 9 — — 9 Fixed income Government debt — 222 — 222 Corporate debt U.S. — 24 — 24 Non-U.S. — 80 — 80 Net cash equivalents (1) 27 11 — 38 Insurance annuity — — 428 428 Private markets and real assets (2) — — 390 390 Net plan assets subject to leveling $ 49 $ 337 $ 818 $ 1,204 Pending trade/purchases/sales 141 Accruals (3) 2 Investments measured at net asset value 323 Net plan assets $ 1,670 Fair Value Measurements at December 31, 2021 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ — $ 79 $ — $ 79 Non-U.S. — 74 — 74 Fixed income Net cash equivalents (1) 35 — — 35 Insurance annuity — — 514 514 Private markets and real assets (2) — — 389 389 Net plan assets subject to leveling $ 35 $ 153 $ 903 $ 1,091 Investments measured at net asset value 1,299 Net plan assets $ 2,390 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31. Ce rtain of our assets are valued based on their respective NAV (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows: • U.S. and Non-U.S. Corporate Debt ($77 million and $894 million at December 31, 2022 and 2021, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • U.S. and Non-U.S. Equities ($0 million and $194 million at December 31, 2022 and 2021, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Government Debt ($64 million at December 31, 2022) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Asset/Mortgage Backed Securities ($128 million and $99 million at December 31, 2022 and 2021, respectively) - This asset type represents investments in fixed- and floating-rate loans. These funds are valued using NAVs and allow quarterly or more frequent redemptions. • Re-insurance ($54 million and $61 million at December 31, 2022 and 2021, respectively) - This commingled fund has a NAV that is determined on a monthly basis and the investment may be sold at that value. • Diversified Strategies ($0 million and $51 million at December 31, 2022 and 2021, respectively) - These commingled funds invest in commodities, fixed income and equity securities. They have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Insurance Annuity Real Assets Private Markets Total Balance at December 31, 2020 $ 556 $ 31 $ 251 $ 838 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (42) 2 114 74 Purchases, sales and settlements, net — — (9) (9) Balance at December 31, 2021 514 33 356 903 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (178) (2) 39 (141) Purchases, sales and settlements, net — (23) (13) (36) Assumption of Meritor's plan assets 92 — — 92 Balance at December 31, 2022 $ 428 $ 8 $ 382 $ 818 Level 3 Assets The investments in an insurance annuity contract, venture capital, private equity and real estate, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by quarterly financial statements of the funds. These financial statements are audited at least annually. In conjunction with our investment consultant and actuary, we monitor the fair value of the insurance contract as periodically reported by our insurer and their counterparty risk. The fair value of all real estate properties, held in the partnerships, are valued at least once per year by an independent professional real estate valuation firm. Fair value generally represents the fund's proportionate share of the net assets of the investment partnerships as reported by the general partners of the underlying partnerships. Some securities with no readily available market are initially valued at cost, utilizing independent professional valuation firms as well as market comparisons with subsequent adjustments to values which reflect either the basis of meaningful third-party transactions in the private market or the fair value deemed appropriate by the general partners of the underlying investment partnerships. In such instances, consideration is also given to the financial condition and operating results of the issuer, the amount that the investment partnerships can reasonably expect to realize upon the sale of the securities and any other factors deemed relevant. The estimated fair values are subject to uncertainty and therefore may differ from the values that would have been used had a ready market for such investments existed and such differences could be material. Estimated Future Contributions and Benefit Payments We plan to contribute approximately $106 million to our defined benefit pension plans in 2023. The table below presents expected future benefit payments under our pension plans: Qualified and Non-Qualified Pension Plans In millions 2023 2024 2025 2026 2027 2028 - 2032 Expected benefit payments $ 367 $ 351 $ 357 $ 361 $ 363 $ 1,841 Other Pension Plans We also sponsor defined contribution plans for certain hourly and salaried employees. Our contributions to these plans were $110 million, $92 million and $85 million for the years ended December 31, 2022, 2021 and 2020. Other Postretirement Benefits Our OPEB plans provide various health care and life insurance benefits to eligible employees, who retire and satisfy certain age and service requirements, and their dependents. The plans are contributory and contain cost-sharing features such as caps, deductibles, coinsurance and spousal contributions. Employer contributions are limited by formulas in each plan. Retiree contributions for health care benefits are adjusted annually, and we reserve the right to change benefits covered under these plans. There were no plan assets for OPEB plans as our policy is to fund benefits and expenses for these plans as claims and premiums are incurred. Obligations and Funded Status Benefit obligation balances presented below reflect the accumulated postretirement benefit obligations for our OPEB plans. The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows: December 31, In millions 2022 2021 Change in benefit obligation Benefit obligation at the beginning of the year $ 192 $ 219 Interest cost 5 5 Plan participants' contributions 4 14 Actuarial gain (25) (8) Benefits paid directly by employer (36) (38) Assumption of Meritor's benefit obligation 22 — Benefit obligation at end of year $ 162 $ 192 Funded status at end of year $ (162) $ (192) Amounts recognized in consolidated balance sheets Accrued compensation, benefits and retirement costs $ (21) $ (19) Other liabilities (141) (173) Net amount recognized $ (162) $ (192) Amounts recognized in accumulated other comprehensive loss Net actuarial gain $ (44) $ (18) Prior service credit (3) (4) Net amount recognized $ (47) $ (22) In addition to the OPEB plans in the above table, we also maintain less significant OPEB plans in five other countries outside the U.S. that comprise approximately 14 percent and 8 percent of our OPEB obligations at December 31, 2022 and 2021, respectively. These plans are reflected in other liabilities in our Consolidated Balance Sheets . Components of Net Periodic OPEB Cost The following table presents the net periodic OPEB cost under our plans: Years ended December 31, In millions 2022 2021 2020 Interest cost $ 5 $ 5 $ 7 Recognized net actuarial gain — — (1) Net periodic OPEB cost $ 5 $ 5 $ 6 Other changes in benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 were as follows: Years ended December 31, In millions 2022 2021 2020 Recognized net actuarial gain $ — $ — $ 1 Incurred actuarial (gain) loss (25) (8) 14 Total recognized in other comprehensive (income) loss $ (25) $ (8) $ 15 Total recognized in net periodic OPEB cost and other comprehensive (income) loss $ (20) $ (3) $ 21 Assumptions The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows: 2022 2021 Discount rate 5.59 % 2.75 % The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows: 2022 2021 2020 Discount rate 2.93 % 2.30 % 3.15 % Our consolidated OPEB obligation is determined by application of the terms of health care and life insurance plans, together with relevant actuarial assumptions and health care cost trend rates. For measurement purposes, a 6.75 percent annual rate of increase in the per capita cost of covered health care benefits was assumed in 2022. The rate is assumed to decrease on a linear basis to 5.0 percent through 2032 and remain at that level thereafter. Estimated Benefit Payments The table below presents expected benefit payments under our OPEB plans: In millions 2023 2024 2025 2026 2027 2028 - 2032 Expected benefit payments $ 22 $ 20 $ 19 $ 17 $ 16 $ 64

SUPPLEMENTAL BALANCE SHEET

SUPPLEMENTAL BALANCE SHEET	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Supplemental Balance Sheet Disclosures	NOTE 12. SUPPLEMENTAL BALANCE SHEET DATA Other assets included the following: December 31, In millions 2022 2021 Deferred income taxes $ 625 $ 428 Operating lease assets 492 444 Corporate owned life insurance 390 492 Other 633 402 Other assets $ 2,140 $ 1,766 Other accrued expenses included the following: December 31, In millions 2022 2021 Marketing accruals $ 316 $ 303 Other taxes payable 224 234 Income taxes payable 173 107 Current portion of operating lease liabilities 132 128 Other 620 418 Other accrued expenses $ 1,465 $ 1,190 Other liabilities included the following: December 31, In millions 2022 2021 Accrued product warranty $ 744 $ 684 Deferred income taxes 649 403 Pensions 445 431 Operating lease liabilities 368 326 Long-term income taxes 192 263 Accrued compensation 184 177 Mark-to-market valuation on interest rate derivatives 151 19 Other postretirement benefits 141 173 Other long-term liabilities 437 320 Other liabilities $ 3,311 $ 2,796

DEBT

DEBT	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
DEBT	NOTE 13. DEBT Loans Payable Loans payable at December 31, 2022 and 2021 were $210 million and $208 million, respectively, and consisted primarily of notes payable to financial institutions. The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows: 2022 2021 Weighted-average interest rate 4.02 % 2.71 % Commercial Paper We can issue up to $4.0 billion of unsecured, short-term promissory notes (commercial paper) pursuant to the Board of Directors (the Board) authorized commercial paper programs. The programs facilitate the private placement of unsecured short-term debt through third-party brokers. We intend to use the net proceeds from the commercial paper borrowings for acquisitions and general corporate purposes. We had $2.6 billion and $313 million in outstanding borrowings under our commercial paper programs at December 31, 2022 and 2021, respectively. The weighted-average interest rate for commercial paper at December 31 was as follows: 2022 2021 Weighted-average interest rate 4.27 % (1) (0.01) % (2) (1) The weighted-average interest rate, inclusive of all brokerage fees, was 4.27 percent at December 31, 2022. This included $107 million of borrowings under the Europe program at a weighted-average interest rate of 1.86 percent and $2.5 billion of borrowings under the U.S. program at a weighted-average interest rate of 4.38 percent. (2) 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. 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. On August 18, 2021, we entered into an amended and restated 5-year revolving credit agreement, which allows us to borrow up to $2 billion of unsecured funds at any time prior to August 18, 2026. In connection with the new credit agreements, on August 17, 2022, we entered into an amendment to our $2.0 billion five-year facility to replace LIBOR with Secured Overnight Financing Rate (SOFR) as an interest rate benchmark and to make other conforming changes to interest rate determinations. Amounts payable under our revolving credit facility rank pro rata with all of our unsecured, unsubordinated indebtedness. Up to $300 million under this credit facility is available for swingline loans. Based on our current long-term debt ratings, the applicable margin on SOFR rate loans was 0.85 percent per annum including a 0.10 percent LIBOR to SOFR adjustment as of December 31, 2022. Advances under the facility may be prepaid without premium or penalty, subject to customary breakage costs. Our credit agreements include various covenants, including, among others, maintaining a net debt to total capital ratio of no more than 0.65 to 1.0. At December 31, 2022, we were in compliance with the financial debt covenants. 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 December 31, 2022. The total combined borrowing capacity under the revolving credit facilities and commercial programs should not exceed $4.0 billion. At December 31, 2022, our $2.6 billion of commercial paper outstanding effectively reduced the $4.0 billion available capacity under our revolving credit facilities to $1.4 billion. At December 31, 2022, we also had $226 million available for borrowings under our international and other domestic credit facilities. Long-term Debt A summary of long-term debt was as follows: December 31, In millions Interest Rate 2022 2021 Long-term debt Senior notes, due 2023 (1) 3.65% $ 500 $ 500 Term loan, due 2025 Variable 1,550 — Senior notes, due 2025 (2) 0.75% 500 500 Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 (2) 1.50% 850 850 Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 650 Debentures, due 2098 (3) 5.65% 165 165 Other debt 121 110 Unamortized discount and deferred issuance costs (64) (68) Fair value adjustments due to hedge on indebtedness (122) 34 Finance leases 113 89 Total long-term debt 5,071 3,638 Less: Current maturities of long-term debt 573 59 Long-term debt $ 4,498 $ 3,579 (1) Senior notes, due 2023, are classified as current maturities of long-term debt at December 31, 2022. (2) 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" section of NOTE 22, "DERIVATIVES," for additional information. (3) The effective interest rate is 7.48 percent. Principal payments required on long-term debt during the next five years are as follows: In millions 2023 2024 2025 2026 2027 Principal payments $ 573 $ 44 $ 2,061 $ 56 $ 64 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. During the fourth quarter of 2022, we paid down $450 million of the term loan. The interest rate is based on 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. The $250 million 7.125 percent debentures and $165 million 5.65 percent debentures are unsecured and are not subject to any sinking fund requirements. We can redeem these debentures at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture holders are not penalized by the early redemption. Our debt agreements contain several restrictive covenants. The most restrictive of these covenants applies to our revolving credit facility which will upon default, among other things, limit our ability to incur additional debt or issue preferred stock, enter into sale-leaseback transactions, sell or create liens on our assets, make investments and merge or consolidate with any other entity. At December 31, 2022, we were in compliance with all of the financial debt covenants under our borrowing agreements. Shelf Registration As a well-known seasoned issuer, we filed an automatic shelf registration for an undetermined amount of debt and equity securities with the Securities and Exchange Commission (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. Our current shelf is scheduled to expire in February 2025. Interest Expense For the years ended December 31, 2022, 2021 and 2020, total interest incurred was $204 million, $113 million and $102 million, respectively, and interest capitalized was $5 million, $2 million and $2 million, respectively. 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: December 31, In millions 2022 2021 Fair values of total debt (1) $ 7,400 $ 4,461 Carrying value of total debt 7,855 4,159 (1) The fair value of debt is derived from Level 2 input measures. 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. Borrowings under the Credit Agreement would bear interest at varying rates, depending on the type of loan and, in some cases, the rates of designated benchmarks and the applicable Borrower’s election. Generally, U.S. dollar-denominated loans would bear interest at adjusted term SOFR (which includes a 0.10 percent credit spread adjustment to term SOFR) for the applicable interest period plus a rate ranging from 1.125 percent to 1.75 percent depending on Parent Borrower's net leverage ratio.

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	12 Months Ended
	Dec. 31, 2022
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 14. 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: December 31, In millions 2022 2021 2020 Balance, beginning of year $ 2,425 $ 2,307 $ 2,389 Provision for base warranties issued 515 503 443 Deferred revenue on extended warranty contracts sold 287 288 248 Provision for product campaigns issued 141 346 90 Payments made during period (596) (530) (589) Amortization of deferred revenue on extended warranty contracts (298) (260) (227) Changes in estimates for pre-existing product warranties and campaigns (128) (228) (52) Acquisitions (1) 147 — — Foreign currency translation adjustments and other (16) (1) 5 Balance, end of year $ 2,477 $ 2,425 $ 2,307 (1) See NOTE 2, "ACQUISITIONS," to our Consolidated Financial Statements for additional information. We recognized supplier recoveries of $39 million, $170 million and $20 million for the years ended December 31, 2022, 2021 and 2020, respectively. Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows: December 31, In millions 2022 2021 Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 290 $ 286 Current portion of deferred revenue Long-term portion 717 700 Deferred revenue Total $ 1,007 $ 986 Product warranty Current portion $ 726 $ 755 Current portion of accrued product warranty Long-term portion 744 684 Other liabilities Total $ 1,470 $ 1,439 Total warranty accrual $ 2,477 $ 2,425

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 15. 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 Publicly Traded Company (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 our unconsolidated joint venture with KAMAZ (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 Environmental Protection Agency (EPA) and California Air Resources Board (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. We have also been in communication with Environmental and Climate Change Canada regarding similar issues relating to some of these very same platforms. 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 December 31, 2022, the maximum potential loss related to these guarantees was $46 million. We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At December 31, 2022, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $141 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 December 31, 2022, the total commitments under these contracts were $75 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 $107 million at December 31, 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.

REDEEMABLE NONCONTROLLING INTER

REDEEMABLE NONCONTROLLING INTERESTS	12 Months Ended
	Dec. 31, 2022
Nonmonetary Transactions [Abstract]
Commitments Disclosure	NOTE 16. 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 Consolidated Financial Statements with an offset to additional paid-in capital. The redeemable noncontrolling interest balance was $258 million and $366 million at December 31, 2022 and 2021, respectively.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 17. CUMMINS INC. SHAREHOLDERS' EQUITY Preferred and Preference Stock We are authorized to issue one million shares of zero par value preferred and one million shares of preference stock with preferred shares being senior to preference shares. We can determine the number of shares of each series, and the rights, preferences and limitations of each series. At December 31, 2022 and 2021, there was no preferred or preference stock outstanding. Common Stock Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans were as follows: In millions Common Treasury Common Stock Balance at December 31, 2019 222.4 71.7 0.2 Shares acquired — 3.9 — Shares issued — (0.8) (0.2) Balance at December 31, 2020 222.4 74.8 — Shares acquired — 5.7 — Shares issued 0.1 (0.5) — Balance at December 31, 2021 222.5 80.0 — Shares acquired — 1.9 — Shares issued — (0.7) — Balance at December 31, 2022 222.5 81.2 — Treasury Stock Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of shareholders' equity in our Consolidated Balance Sheets . Treasury shares may be reissued as part of our stock-based compensation programs. When shares are reissued, we use the weighted-average cost method for determining cost. The gains between the cost of the shares and the issuance price are added to additional paid-in-capital. The losses are deducted from additional paid-in capital to the extent of the gains. Thereafter, the losses are deducted from retained earnings. Treasury stock activity for the three-year period ended December 31, 2022, consisting of shares issued and repurchased is presented in our Consolidated Statements of Changes in Redeemable Noncontrolling Interests and Equity . In December 2021, the Board authorized the acquisition of up to $2.0 billion of additional common stock upon completion of the $2.0 billion repurchase plan authorized in 2019. For the year ended December 31, 2022, we made the following purchases under the stock repurchase program: In millions (except per share amounts) Shares Purchased Average Cost Total Cost of Remaining Authorized Capacity (1) March 31 1.6 $ 199.27 $ 311 $ 2,281 June 30 0.1 194.00 36 2,245 September 30 0.2 197.72 23 2,222 December 31 0.0 (2) 206.12 4 2,218 Total 1.9 198.74 $ 374 (1) The remaining $218 million authorized capacity under the 2019 plan was calculated based on the cost to purchase the shares, but excludes commission expenses in accordance with the authorized plan. (2) Shares purchased in the fourth quarter totaled 21,830. We repurchased $374 million, $1,402 million and $641 million of our common stock in the years ended December 31, 2022, 2021 and 2020, respectively. Dividends Total dividends paid to common shareholders in 2022, 2021 and 2020 were $855 million, $809 million and $782 million, respectively. Declaration and payment of dividends in the future depends upon our income and liquidity position, among other factors, and is subject to declaration by the Board, who meet quarterly to consider our dividend payment. We expect to fund dividend payments with cash from operations. In July 2022, the Board authorized an increase to our quarterly dividend of 8.3 percent from $1.45 per share to $1.57 per share. In July 2021, the Board authorized a 7.4 percent increase to our quarterly cash dividend on our common stock from $1.35 per share to $1.45 per share. In October 2020, the Board approved a 3.0 percent increase to our quarterly dividend on our common stock from $1.311 per share to $1.35 per share. Cash dividends per share paid to common shareholders for the last three years were as follows: Quarterly Dividends 2022 2021 2020 First quarter $ 1.45 $ 1.35 $ 1.311 Second quarter 1.45 1.35 1.311 Third quarter 1.57 1.45 1.311 Fourth quarter 1.57 1.45 1.35 Total $ 6.04 $ 5.60 $ 5.28

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 18. ACCUMULATED OTHER COMPREHENSIVE LOSS Following are the changes in accumulated other comprehensive income (loss) by component: In millions Change in pensions Foreign Unrealized gain Total Noncontrolling Total Balance at December 31, 2019 $ (734) $ (1,285) $ (9) $ (2,028) Other comprehensive income (loss) before reclassifications Before-tax amount (92) 73 (41) (60) $ (10) $ (70) Tax benefit 26 8 9 43 — 43 After-tax amount (66) 81 (32) (17) (10) (27) Amounts reclassified from accumulated other comprehensive income (1) 65 — (2) 63 — 63 Net current period other comprehensive (loss) income (1) 81 (34) 46 $ (10) $ 36 Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income (loss) before reclassifications Before-tax amount 425 (5) 38 458 $ (5) $ 453 Tax (expense) benefit (103) 1 (12) (114) — (114) After-tax amount 322 (4) 26 344 (5) 339 Amounts reclassified from accumulated other comprehensive income (1) 67 — — 67 — 67 Net current period other comprehensive income (loss) 389 (4) 26 411 $ (5) $ 406 Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount (123) (350) 136 (337) $ (40) $ (377) Tax benefit (expense) 19 6 (32) (7) — (7) After-tax amount (104) (344) 104 (344) (40) (384) Amounts reclassified from accumulated other comprehensive income (1) 23 — 2 25 — 25 Net current period other comprehensive (loss) income (81) (344) 106 (319) $ (40) $ (359) Balance at December 31, 2022 $ (427) $ (1,552) $ 89 $ (1,890) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS	12 Months Ended
	Dec. 31, 2022
Noncontrolling Interest [Abstract]
NONCONTROLLING INTERESTS	NOTE 19. NONCONTROLLING INTERESTS Noncontrolling interests in the equity of consolidated subsidiaries were as follows: December 31, In millions 2022 2021 Eaton Cummins Automated Transmission Technologies $ 525 $ 518 Cummins India Ltd. 342 347 Other 125 24 Noncontrolling interests $ 992 $ 889

STOCK INCENTIVE AND STOCK OPTIO

STOCK INCENTIVE AND STOCK OPTION PLANS	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
STOCK INCENTIVE AND STOCK OPTION PLANS	NOTE 20. STOCK INCENTIVE AND STOCK OPTION PLANS Our stock incentive plan (the Plan) allows for granting of up to 8.5 million total shares of equity awards to executives, employees and non-employee directors. Awards available for grant under the Plan include, but are not limited to, stock options, stock appreciation rights, performance shares and other stock awards. Shares issued under the Plan may be newly issued shares or reissued treasury shares. Stock options are generally granted with a strike price equal to the fair market value of the stock on the date of grant and a life of 10 years. Stock options granted have a three Stock options are also awarded through the Key Employee Stock Investment Plan (KESIP) which allows certain employees, other than officers, to purchase shares of common stock on an installment basis up to an established credit limit. For every block of 100 KESIP shares purchased by the employee 50 stock options are granted. The options granted through the KESIP program are considered awards under the Plan and are vested immediately. Compensation expense for stock options granted through the KESIP program is recorded based on the fair value of each option grant using the Black-Scholes option pricing model. Performance shares are granted as target awards and are earned based on certain measures of our operating performance. A payout factor has been established ranging from 0 to 200 percent of the target award based on our actual performance during the three Restricted stock and restricted stock units are awarded from time to time at no cost to certain employees. Restrictions limit the sale or transfer of the shares during a defined period. Most awards are not entitled to cash dividends and voting rights until vesting. Generally, the shares vest and become free from restrictions ratably over a three Employee compensation expense (net of estimated forfeitures) related to our share-based plans for the years ended December 31, 2022, 2021 and 2020, was approximately $33 million, $36 million and $30 million, respectively. The excess tax benefit associated with our employee share-based plans for the years ended December 31, 2022, 2021 and 2020, was $8 million, $9 million and $4 million, respectively. The total unrecognized compensation expense (net of estimated forfeitures) related to nonvested awards for our employee share-based plans was approximately $86 million at December 31, 2022 and is expected to be recognized over a weighted-average period of approximately two years. The table below summarizes the employee share-based activity in the Plan: Options Weighted-average Weighted-average Aggregate Balance at December 31, 2019 3,237,570 $ 140.36 Granted 632,080 142.81 Exercised (660,786) 131.25 Forfeited (33,334) 150.83 Balance at December 31, 2020 3,175,530 142.63 Granted 16,550 232.44 Exercised (400,154) 138.93 Forfeited (48,828) 153.72 Balance at December 31, 2021 2,743,098 143.51 Granted 18,900 207.79 Exercised (586,990) 137.83 Forfeited (29,045) 148.08 Balance at December 31, 2022 2,145,963 $ 145.57 5.2 $ 208 Exercisable, December 31, 2020 1,589,015 $ 130.28 4.6 $ 151 Exercisable, December 31, 2021 1,629,588 $ 136.74 4.4 $ 133 Exercisable, December 31, 2022 1,655,298 $ 146.37 4.6 $ 159 The weighted-average grant date fair value of options granted during the years ended December 31, 2022, 2021 and 2020, was $45.74, $46.03 and $25.40, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020, was approximately $53 million, $41 million and $40 million, respectively. The weighted-average grant date fair value of performance and restricted shares was as follows: Performance Shares Restricted Shares Nonvested Shares Weighted-average Shares Weighted-average Balance at December 31, 2019 395,931 $ 144.64 2,697 $ 117.68 Granted 260,480 132.57 3,704 165.04 Vested (268,773) 138.27 (2,697) 117.68 Forfeited (10,684) 144.22 — — Balance at December 31, 2020 376,954 140.85 3,704 165.04 Granted 217,684 234.22 26,224 265.41 Vested (131,744) 146.55 — — Forfeited (22,745) 171.91 — — Balance at December 31, 2021 440,149 183.72 29,928 252.99 Granted 230,535 184.92 215,260 209.08 Vested (122,188) 148.99 (5,513) 249.79 Forfeited (63,197) 182.68 (3,262) 211.37 Balance at December 31, 2022 485,299 $ 193.17 236,413 $ 213.66 The total vesting date fair value of performance shares vested during the years ended December 31, 2022, 2021 and 2020, was $24 million, $35 million and $41 million, respectively. The total fair value of restricted shares vested was $1 million, $0 and less than $1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: 2022 2021 2020 Expected life (years) 6 6 6 Risk-free interest rate 2.32 % 1.15 % 0.62 % Expected volatility 28.40 % 28.68 % 27.05 % Dividend yield 2.85 % 2.95 % 2.88 % Expected life —The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding based upon our historical data. Risk-free interest rate —The risk-free interest rate assumption is based upon the observed U.S. treasury security rate appropriate for the expected life of our employee stock options. Expected volatility —The expected volatility assumption is based upon the weighted-average historical daily price changes of our common stock over the most recent period equal to the expected option life of the grant, adjusted for activity which is not expected to occur in the future. Dividend yield —The dividend yield assumption is based on our history and expectation of dividend payouts.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 21. EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. We calculate basic earnings per share (EPS) of common stock by dividing net income attributable to Cummins Inc. by the weighted-average number of common shares outstanding for the period. The calculation of diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. We excluded shares of common stock held in the Employee Benefits Trust (EBT) from the calculation of the weighted-average common shares outstanding until those shares are distributed from the EBT to the Retirement Savings Plan. The EBT was fully depleted at December 31, 2021. Following are the computations for basic and diluted earnings per share: Years ended December 31, In millions, except per share amounts 2022 2021 2020 Net income attributable to Cummins Inc. $ 2,151 $ 2,131 $ 1,789 Weighted-average common shares outstanding Basic 141.5 144.6 148.2 Dilutive effect of stock compensation awards 0.8 1.3 0.8 Diluted 142.3 145.9 149.0 Earnings per common share attributable to Cummins Inc. Basic $ 15.20 $ 14.74 $ 12.07 Diluted 15.12 14.61 12.01 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: Years ended December 31, 2022 2021 2020 Options excluded 20,595 6,463 645,334

DERIVATIVES

DERIVATIVES	12 Months Ended
	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure	NOTE 22. DERIVATIVES We are exposed to financial risk resulting from volatility in foreign exchange rates, interest rates and commodity prices. This risk is closely monitored and managed through the use of physical forward contracts (which are not considered derivatives), and financial derivative instruments including foreign currency forward contracts, commodity swap contracts and interest rate swaps and locks. Financial derivatives are used expressly for hedging purposes and under no circumstances are they used for speculative purposes. When material, we adjust the estimated fair value of our derivative contracts for counterparty or our credit risk. None of our derivative instruments are subject to collateral requirements. Substantially all of our derivative contracts are subject to master netting arrangements, which provide us with the option to settle certain contracts on a net basis when they settle on the same day with the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. Foreign Currency Exchange Rate Risk We had foreign currency forward contracts with notional amounts of $3.6 billion and $2.7 billion at December 31, 2022 and 2021, respectively. The following currencies comprise 88 percent and 87 percent of outstanding foreign currency forward contracts at December 31, 2022 and 2021, respectively: Chinese renminbi, British pound, Canadian dollar, Australian dollar and Euro. We are further exposed to foreign currency exchange risk as many of our subsidiaries are subject to fluctuations as the functional currencies of the underlying entities are not our U.S. dollar reporting currency. To help minimize movements for certain investments, in 2022 we began entering into foreign exchange forwards designated as net investment hedges for certain of our investments. Under the current terms of our foreign exchange forwards, we agreed with third parties to sell British pound in exchange for U.S. dollar currency at a specified rate at the maturity of the contract. The notional amount of these hedges at December 31, 2022, was $705 million. The following table summarizes the net investment hedge activity in AOCL: Year ended December 31, In millions 2022 Type of Derivative Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Foreign exchange forwards $ (22) $ — Interest Rate Risk In 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. 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 swaps were designated, and will be accounted for, as fair value hedges. The gain or loss on these derivative instruments, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current income as interest expense. The net swap settlements that accrue each period are also reported in the Consolidated Financial Statements as interest expense. We had a series of interest rate swaps to effectively convert our September 2013, $500 million debt issue, due in 2023, from a fixed rate of 3.65 percent to a floating rate equal to the one-month LIBOR plus a spread. The debt is included in the Consolidated Balance Sheets as long-term debt. The terms of the swaps mirrored those of the debt, with interest paid semi-annually. The swaps were designated, and were accounted for, as fair value hedges. The gain or loss on these derivative instruments, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, were recognized in current income as interest expense. The net swap settlements that accrued each period were also reported in the Consolidated Financial Statements as interest expense. A basis adjustment related to credit risk, excluded from the assessment of effectiveness, was being amortized over the life of the hedge using a straight-line method and was considered de minimis. The following table summarizes the gains and losses: Years ended December 31, In millions 2022 2021 2020 Type of Swap Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Interest rate swaps (1) $ (148) $ 145 $ (3) $ 2 $ 7 $ (5) (1) The difference between the gain (loss) on swaps and borrowings represented hedge ineffectiveness. In 2019 we entered into $350 million of interest rate lock agreements, and in 2020 we entered into an additional $150 million of 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 terms of the rate locks mirror the time period of the expected fixed rate debt issuance and the expected timing of interest payments on that debt. The gains and losses on these derivative instruments will be initially recorded in other comprehensive income and will be released to earnings in interest expense in future periods to reflect the difference in (1) the fixed rates economically locked in at the inception of the hedge and (2) the actual fixed rates established in the debt instrument at issuance. In December 2022, we settled certain rate lock agreements with notional amounts totaling $150 million for $49 million. This amount will remain in other comprehensive income to be recognized over the term of the anticipated new debt as discussed above. The following table summarizes the interest rate lock activity in AOCL: Year ended December 31, In millions 2022 2021 2020 Type of Swap Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate locks $ 112 $ — $ 19 $ — $ (22) $ — Cash Flow Hedging The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments classified as cash flow hedges. The table does not include amounts related to ineffectiveness as it was not material for the periods presented. Years ended December 31, In millions 2022 2021 2020 Gain (loss) reclassified from AOCL into income - Net sales (1) $ (4) $ (4) $ 3 Gain (loss) reclassified from AOCL into income - Cost of sales (1)(2) 1 6 — Total $ (3) $ 2 $ 3 (1) Includes foreign currency forward contracts. (2) Includes commodity swap contracts. Derivatives Not Designated as Hedging Instruments The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments not classified as cash flow hedges: Years ended December 31, In millions 2022 2021 2020 Gain (loss) recognized in income - Cost of sales (1) $ 2 $ — $ (1) Gain (loss) recognized in income - Other income, net (1) (5) 45 1 Total $ (3) $ 45 $ — (1) Includes foreign currency forward contracts. Fair Value Amount and Location of Derivative Instruments The following table summarizes the location and fair value of derivative instruments on our Consolidated Balance Sheets : Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, In millions 2022 2021 2022 2021 Notional amount $ 3,051 $ 2,558 $ 2,900 $ 1,888 Derivative assets Prepaid expenses and other current assets $ 18 $ 15 $ 27 $ 4 Other assets 80 — — — Total derivative assets (1) $ 98 $ 15 $ 27 $ 4 Derivative liabilities Other accrued expenses $ 19 $ 11 $ 3 $ 4 Other liabilities 151 19 — — Total derivative liabilities (1) $ 170 $ 30 $ 3 $ 4 (1) Estimates of the fair value of all derivative assets and liabilities above are derived from Level 2 inputs, which are 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 input measures and there were no transfers into or out of Level 2 or 3 during 2022 or 2021. We elected to present our derivative contracts on a gross basis in our Consolidated Balance Sheets . Had we chosen to present on a net basis, we would have derivatives in a net asset position of $52 million and derivatives in a net liability position of $100 million.

RUSSIAN OPERATIONS

RUSSIAN OPERATIONS	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure	NOTE 23. RUSSIAN OPERATIONS On March 17, 2022, the Board indefinitely suspended 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 JV with 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 $111 million during 2022 related to these actions. As of December 31, 2022, we had no inventory and approximately $14 million of receivables in Russia, all of which are fully reserved. In addition, we have cash balances of $66 million, some of which will be used to fund ongoing employee, tax and contract settlement obligations. The following summarizes the costs associated with the suspension of our Russian operations in our Consolidated Statements of Net Income: Year ended In millions December 31, Statement of Net Income Location Inventory write-downs $ 17 Cost of sales Accounts receivable reserves 41 Other operating expense, net Impairment and other joint venture costs 31 Equity, royalty and interest income from investees Other 22 Other operating expense, net Russian suspension costs, net of recoveries $ 111

OPERATING SEGMENTS

OPERATING SEGMENTS	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 24. 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, Components, Distribution, 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 Components segment sells filtration products, aftertreatment systems, turbochargers, electronics, fuel systems, automated transmissions, axles, drivelines, brakes and suspension systems. 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 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 electrolyzers 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 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 at December 31, is shown in the table below: In millions Engine Components Distribution Power Systems New Power Total Segments 2022 External sales $ 8,199 $ 7,847 $ 8,901 $ 2,951 $ 176 $ 28,074 Intersegment sales 2,746 1,889 28 2,082 22 6,767 Total sales 10,945 9,736 8,929 5,033 198 34,841 Research, development and engineering expenses 506 309 52 240 171 1,278 Equity, royalty and interest income (loss) from investees 166 (1) 71 77 43 (8) 349 Interest income 14 12 16 7 — 49 Russian suspension costs (2) 33 (3) 5 54 19 — 111 Segment EBITDA 1,541 1,346 (4) 888 596 (340) 4,031 Depreciation and amortization (5) 205 304 114 120 38 781 Net assets 1,451 7,306 2,698 2,382 1,158 14,995 Investments and advances to equity investees 590 617 352 138 60 1,757 Capital expenditures 368 264 114 96 74 916 2021 External sales $ 7,589 $ 5,932 $ 7,742 $ 2,650 $ 108 $ 24,021 Intersegment sales 2,365 1,733 30 1,765 8 5,901 Total sales 9,954 7,665 7,772 4,415 116 29,922 Research, development and engineering expenses 399 307 48 234 102 1,090 Equity, royalty and interest income (loss) from investees 340 50 63 56 (3) 506 Interest income 8 5 7 5 — 25 Segment EBITDA 1,411 1,180 731 496 (223) 3,595 Depreciation and amortization (5) 205 183 116 131 24 659 Net assets 1,554 2,938 2,294 2,251 602 9,639 Investments and advances to equity investees 742 254 329 164 49 1,538 Capital expenditures 341 184 92 80 37 734 2020 External sales $ 5,925 $ 4,650 $ 7,110 $ 2,055 $ 71 $ 19,811 Intersegment sales 2,097 1,374 26 1,576 1 5,074 Total sales 8,022 6,024 7,136 3,631 72 24,885 Research, development and engineering expenses 290 264 31 212 109 906 Equity, royalty and interest income (loss) from investees 312 61 62 21 (4) 452 Interest income 9 4 4 4 — 21 Segment EBITDA 1,235 961 665 343 (172) 3,032 Depreciation and amortization (5) 208 192 122 130 18 670 Capital expenditures 202 140 89 79 18 528 (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 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information. (2) See NOTE 23, "RUSSIAN OPERATIONS," to our 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 $83 million of costs related to the acquisition and integration of Meritor and $28 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 Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs were $3 million, $3 million and $3 million for the years ended 2022, 2021 and 2020, respectively. A portion of depreciation expense is included in research, development and engineering expense. A reconciliation of our segment information to the corresponding amounts in the Consolidated Statements of Net Income is shown in the table below: Years ended December 31, In millions 2022 2021 2020 TOTAL SEGMENT EBITDA $ 4,031 $ 3,595 $ 3,032 Intersegment eliminations and other (232) (1) (74) 76 Less: Interest expense 199 111 100 Depreciation and amortization 781 659 670 INCOME BEFORE INCOME TAXES 2,819 2,751 2,338 Less: Income tax expense 636 587 527 CONSOLIDATED NET INCOME 2,183 2,164 1,811 Less: Net income attributable to noncontrolling interests 32 33 22 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 2,151 $ 2,131 $ 1,789 (1) Intersegment eliminations and other included $53 million of costs associated with the planned separation of our filtration business. A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below: December 31, In millions 2022 2021 Net assets for operating segments $ 14,995 $ 9,639 Cash, cash equivalents and marketable securities 2,573 3,187 Net liabilities deducted in arriving at net segment assets (1) 11,270 9,486 Pension and OPEB adjustments excluded from net segment assets 832 966 Deferred tax assets not allocated to segments 625 428 Deferred debt costs not allocated to segments 4 4 Total assets $ 30,299 $ 23,710 (1) Liabilities deducted in arriving at net segment assets include certain accounts payable, accrued expenses, long-term liabilities and other items. See NOTE 3, "REVENUE FROM CONTRACTS WITH CUSTOMERS," for segment net sales by geographic area. Long-lived assets include property, plant and equipment, net of depreciation, investments and advances to equity investees and other assets, excluding deferred tax assets, refundable taxes and deferred debt expenses. Long-lived segment assets by geographic area were as follows: December 31, In millions 2022 2021 United States $ 4,714 $ 3,978 China 1,052 1,136 India 665 573 United Kingdom 431 384 Mexico 429 195 Netherlands 334 314 Brazil 256 76 Canada 168 163 Other international countries 731 478 Total long-lived assets $ 8,780 $ 7,297 Our largest customer is PACCAR Inc. Worldwide sales to this customer were approximately $4.5 billion, $3.6 billion and $2.9 billion for the years ended December 31, 2022, 2021 and 2020, representing 16 percent, 15 percent and 15 percent, respectively, of our consolidated net sales. No other customer accounted for more than 10 percent of consolidated net sales.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Fiscal Period, Policy	Reporting PeriodBeginning 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. Our fiscal year ends on December 31, regardless of the day of the week on which December 31 falls.
Principles of Consolidation	Principles of Consolidation Our Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). All intercompany balances and transactions are eliminated in consolidation. We include the accounts of all wholly-owned and majority-owned domestic and foreign subsidiaries where our ownership is more than 50 percent of outstanding equity interests except for majority-owned subsidiaries that are considered variable interest entities (VIEs) where we are not deemed to have a controlling financial interest. In addition, we also consolidate, regardless of our ownership percentage, VIEs or joint ventures for which we are deemed to have a controlling financial interest. We have variable interests in several businesses accounted for under the equity method of accounting, however most of these VIEs are unconsolidated. For consolidated entities where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported in our Consolidated Balance Sheets . The noncontrolling ownership interest in our income, net of tax, is classified as "Net income attributable to noncontrolling interests" in our Consolidated Statements of Net Income .
Reclassifications and Revisions	Reclassifications Certain amounts for 2021 and 2020 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 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 Consolidated Balance Sheets with a corresponding offset in NCI and APIC. This error did not impact our Consolidated Statements of Net Income , Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows for any period. The amounts reclassified from NCI and revisions to APIC were 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 December 31, 2021 38 328 366 March 31, 2022 34 358 392 June 30, 2022 27 199 226 See NOTE 16, "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.
Investments in Equity Investees	Investments in Equity Investees We use the equity method to account for our investments in joint ventures, affiliated companies and alliances in which we have the ability to exercise significant influence, generally represented by equity ownership or partnership equity of at least 20 percent but not more than 50 percent. Generally, under the equity method, original investments in these entities are recorded at cost and subsequently adjusted by our share of equity in income or losses after the date of acquisition. Investment amounts in excess of our share of an investee's net assets are amortized over the life of the related asset creating the excess, except goodwill which is not amortized. Equity in income or losses of each investee is recorded according to our level of ownership; if losses accumulate, we record our share of losses until our investment has been fully depleted. If our investment has been fully depleted, we recognize additional losses only when we are the primary funding source. We eliminate (to the extent of our ownership percentage) in our Consolidated Financial Statements the profit in inventory held by our equity method investees that has not yet been sold to a third-party. Dividends received from equity method investees reduce the amount of our investment when received and do not impact our earnings. Our investments are classified as Investments and advances related to equity method investees in our Consolidated Balance Sheets. Our share of the results from joint ventures, affiliated companies and alliances is reported in our Consolidated Statements of Net Income as Equity, royalty and interest income from investees, and is reported net of all applicable income taxes. Our share of the results from our foreign equity investees are presented net of applicable foreign income taxes in our Consolidated Statements of Net Income . Our remaining U.S. equity investees are partnerships (non-taxable), thus there is no difference between gross or net of tax presentation as the investees are not taxed. See NOTE 4, "INVESTMENTS IN EQUITY INVESTEES," for additional information.
Use of Estimates in the Preparation of the Financial Statements	Use of Estimates in the Preparation of the Financial Statements Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Consolidated Financial Statements . Significant estimates and assumptions in these Consolidated Financial Statements require the exercise of judgement and are used for, but not limited to, estimates of future cash flows and other assumptions associated with the valuation of intangible assets and goodwill and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, determination of discount rate and other assumptions for pensions and other postretirement benefit obligations and related costs, income taxes, deferred tax valuation allowances, contingencies and allowances for doubtful accounts. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Current supply chain disruptions and related future financial impacts cannot be estimated at this time. This uncertainty could have an impact on certain estimates used in the preparation of our 2022 financial results.
Revenue from Contract with Customer	Revenue From Contracts with Customers Revenue Recognition Sales of Products We sell to customers either through long-term arrangements or standalone purchase orders. Our long-term arrangements generally do not include committed volumes until underlying purchase orders are issued. Our performance obligations vary by contract, but may include diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, engine braking, cylinder deactivation and start and stop thermal management technologies, drivetrain systems and components including axles, drivelines, braking and suspension systems, electric power generation systems and construction related projects, batteries, electrified power systems, hydrogen production and fuel cell products, parts, maintenance services and extended warranty coverage. Typically, we recognize revenue on the products we sell at a point in time, generally in accordance with shipping terms, which reflects the transfer of control to the customer. Since control of construction projects transfer to the customer as the work is performed, revenue on these projects is recognized based on the percentage of inputs incurred to date compared to the total expected cost of inputs, which is reflective of the value transferred to the customer. Revenue is recognized under long-term maintenance and other service agreements over the term of the agreement as underlying services are performed based on the percentage of the cost of services provided to date compared to the total expected cost of services to be provided under the contract. Sales of extended coverage are recognized based on the pattern of expected costs over the extended coverage period or, if such a pattern is unknown, on a straight-line basis over the coverage period as the customer is considered to benefit from our stand ready obligation over the coverage period. In all cases, we believe cost incurred is the most representative depiction of the extent of service performed to date on a particular contract. Our arrangements may include the act of shipping products to our customers after the performance obligation related to that product has been satisfied. We have elected to account for shipping and handling as activities to fulfill the promise to transfer goods and have not allocated revenue to the shipping activity. All related shipping and handling costs are accrued at the time the related performance obligation is satisfied. Our sales arrangements may include the collection of sales and other similar taxes that are then remitted to the related taxing authority. We have elected to present the amounts collected for these taxes net of the related tax expense rather than presenting them as additional revenue. We grant credit limits and terms to customers based upon traditional practices and competitive conditions. Typical terms vary by market, but payments are generally due in 90 days or less from invoicing for most of our product and service sales, while payments on construction and other similar arrangements may be due on an installment basis. For contracts where the time between cash collection and performance is less than one year, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. For contracts where this time period exceeds one year, generally the timing difference is the result of business concerns other than financing. We do have a limited amount of customer financing for which we charge or impute interest, but such amounts are immaterial to our Consolidated Statements of Net Income. Sales Incentives We provide various sales incentives to both our distribution network and OEM customers. These programs are designed to promote the sale of our products in the channel or encourage the usage of our products by OEM customers. When there is uncertainty surrounding these sales incentives, we may limit the amount of revenue we recognize under a contract until the uncertainty has been resolved. Sales incentives primarily fall into three categories: • Volume rebates; • Market share rebates; and • Aftermarket rebates. For volume rebates, we provide certain customers with rebate opportunities for attaining specified volumes during a particular quarter or year. We consider the expected amount of these rebates at the time of the original sale as we determine the overall transaction price. We update our assessment of the amount of rebates that will be earned quarterly based on our best estimate of the volume levels the customer will reach during the measurement period. For market share rebates, we provide certain customers with rebate opportunities based on the percentage of their production that utilizes our product. These rebates are typically measured either quarterly or annually and we assess them at least quarterly to determine our current estimates of amounts expected to be earned. These estimates are considered in the determination of transaction price at the time of the original sale based on the current market shares, with adjustments made as the level changes. For aftermarket rebates, we provide incentives to promote sales to certain dealers and end-markets. These rebates are typically paid on a quarterly, or more frequent basis. At the time of the sales, we consider the expected amount of these rebates when determining the overall transaction price. Estimates are adjusted at the end of each quarter based on the amounts yet to be paid. These estimates are based on historical experience with the particular program. Sales Returns The initial determination of the transaction price may also be impacted by expected product returns. Rights of return do not exist for the majority of our sales other than for quality issues. We do offer certain return rights in our aftermarket business, where some aftermarket customers are permitted to return small amounts of parts and filters each year, and in our power generation business, which sells portable generators to retail customers. An estimate of future returns is accounted for at the time of sale as a reduction in the overall contract transaction price based on historical return rates. Multiple Performance Obligations Our sales arrangements may include multiple performance obligations. We identify each of the material performance obligations in these arrangements and allocate the total transaction price to each performance obligation based on its relative selling price. In most cases, the individual performance obligations are also sold separately and we use that price as the basis for allocating revenue to the included performance obligations. When an arrangement includes multiple performance obligations and invoicing to the customer does not match the allocated portion of the transaction price, unbilled revenue or deferred revenue is recorded reflecting that difference. Unbilled and deferred revenue are discussed in more detail below. Long-term Contracts Our long-term maintenance agreements often include a variable component of the transaction price. We are generally compensated under such arrangements on a cost per hour of usage basis. We typically can estimate the expected usage over the life of the contract, but reassess the transaction price each quarter and adjust our recognized revenue accordingly. Certain maintenance agreements apply to generators used to provide standby power, which have limited expectations of usage. These agreements may include monthly minimum payments, providing some certainty to the total transaction price. For these particular contracts that relate to standby power, we limit revenue recognized to date to an amount representing the total minimums earned to date under the contract plus any cumulative billings earned in excess of the minimums. We reassess the estimates of progress and transaction price on a quarterly basis. For prime power arrangements, revenue is not subject to such a constraint and is generally equal to the current estimate on a percentage of completion basis times the total expected revenue under the contract. Deferred Revenue The timing of our billing does not always match the timing of our revenue recognition. We record deferred revenue when we are entitled to bill a customer in advance of when we are permitted to recognize revenue. Deferred revenue may arise in construction and other power generation system contracts, where billings may occur in advance of performance or in accordance with specific milestones. Deferred revenue may also occur in long-term maintenance contracts, where billings are often based on usage of the underlying equipment, which generally follows a predictable pattern that often will result in the accumulation of collections in advance of our performance of the related maintenance services. Finally, deferred revenue exists in our extended coverage contracts, where the cash is collected prior to the commencement of the coverage period. Deferred revenue is included in our Consolidated Balance Sheets as a component of current liabilities for the amount expected to be recognized in revenue in a period of less than one year and long-term liabilities for the amount expected to be recognized as revenue in a period beyond one year. Deferred revenue is recognized as revenue when control of the underlying product, project or service passes to the customer under the related contract. Unbilled Revenue We recognize unbilled revenue when the revenue has been earned, but not yet billed. Unbilled revenue is included in our Consolidated Balance Sheets as a component of current assets for those expected to be collected in a period of less than one year and long-term assets for those expected to be collected in a period beyond one year. Unbilled revenue relates to our right to consideration for our completed performance under a contract. Unbilled revenue generally arises from contractual provisions that delay a portion of the billings on genset deliveries until commissioning occurs. Unbilled revenue may also occur when billings trail the provision of service in construction and long-term maintenance contracts. Our unbilled revenue is assessed for collection risks at the time the amounts are initially recorded. This estimate of expected losses reflects those losses expected to occur over the contractual life of the unbilled amount through the time of collection. We did not record any impairment losses on our unbilled revenues during the years ended December 31, 2022, 2021 and 2020. Contract Costs We are required to record an asset for the incremental costs of obtaining a contract with a customer and other costs to fulfill a contract not otherwise required to be immediately expensed when we expect to recover those costs. The only material incremental cost we incur is commission expense, which is generally incurred in the same period as the underlying revenue. Costs to fulfill a contract are generally limited to customer-specific engineering expenses that do not meet the definition of research and development expenses. As
Extended Product Warranty, Policy	Extended Warranty We sell extended warranty coverage on most of our engines and on certain components. We consider a warranty to be extended coverage in any of the following situations: • When a warranty is sold separately or is optional (extended coverage contracts, for example) or • When a warranty provides additional services.
Foreign Currency Transactions and Translation	Foreign Currency Transactions and Translation We translate assets and liabilities of foreign entities to U.S. dollars, where the local currency is the functional currency, at month-end exchange rates. We translate income and expenses to U.S. dollars using weighted-average exchange rates. We record adjustments resulting from translation in a separate component of accumulated other comprehensive loss (AOCL) and include the adjustments in net income only upon sale, loss of controlling financial interest or liquidation of the underlying foreign investment. Foreign currency transaction gains and losses are included in current net income. For foreign entities where the U.S. dollar is the functional currency, including those operating in highly inflationary economies when applicable, we remeasure non-monetary balances and the related income statement amounts using historical exchange rates. We include the resulting gains and losses in income, including the effect of derivatives in our Consolidated Statements of Net Income , which combined with transaction gains and losses amounted to a net loss of $8 million and a net gain of $2 million and $4 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Fair Value Measurement	Fair Value Measurements A three-level valuation hierarchy, based upon the observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets; • Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and • Level 3 - Instruments whose significant inputs are unobservable .
Derivative Instruments	Derivative Instruments We make use of derivative instruments in foreign exchange, commodity price and interest rate hedging programs. Derivatives currently in use are foreign currency forward contracts, commodity swap and interest rate swaps and locks. These contracts are used strictly for hedging and not for speculative purposes. Due to our international business presence, we are exposed to foreign currency exchange risk. We transact in foreign currencies and have assets, liabilities and investments in subsidiaries denominated in foreign currencies. Consequently, our income experiences some volatility related to movements in foreign currency exchange rates. In order to benefit from global diversification and after considering naturally offsetting currency positions, we enter into foreign currency forward contracts to minimize our existing exposures (recognized assets and liabilities) and hedge forecasted transactions. Foreign currency forward contracts are designated and qualify as foreign currency cash flow hedges. The unrealized gain or loss on the forward contract is deferred and reported as a component of AOCL. When the hedged forecasted transaction (sale or purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income. At December 31, 2022 and 2021, realized and unrealized gains and losses related to these hedges were not material to our financial statements. To minimize the income volatility resulting from the remeasurement of net monetary assets and payables denominated in a currency other than the functional currency, we enter into foreign currency forward contracts, which are considered economic hedges. The objective is to offset the gain or loss from remeasurement with the gain or loss from the fair market valuation of the forward contract. These derivative instruments are not designated as hedges. We are further exposed to foreign currency exchange risk as many of our subsidiaries are subject to fluctuations as the functional currencies of the underlying entities are not our U.S. dollar reporting currency. In order to minimize movements in certain investments, in 2022 we began entering into foreign exchange forwards designated as net investment hedges. These forwards are utilized to hedge portions of our net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. The change in fair value related to the spot-to-forward rate difference is recorded as other income (expense) with all other changes in fair value deferred and reported as components of AOCL. The unrealized gain or loss is classified into income in the same period when the foreign subsidiary is sold or substantially liquidated. We are exposed to fluctuations in commodity prices due to contractual agreements with component suppliers. In order to protect ourselves against future price volatility and, consequently, fluctuations in gross margins, we periodically enter into commodity swap and forward contracts with designated banks and other counterparties to fix the cost of certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations. These commodity swaps are designated and qualify as cash flow hedges. At December 31, 2022, realized and unrealized gains and losses related to these hedges were not material to our financial statements. We also enter into physical forward contracts, which qualify for the normal purchases scope exception and are treated as purchase commitments. Additional information on the physical forwards is included in NOTE 15, "COMMITMENTS AND CONTINGENCIES." We are exposed to market risk from fluctuations in interest rates. We manage our exposure to interest rate fluctuations through the use of interest rate swaps and locks. The objective is to more effectively balance our borrowing costs and interest rate risk for current and future exposure. The gain or loss on the swaps as well as the offsetting gain or loss on the hedged item are recognized in current income as interest expense. The gain or loss on the locks is deferred and reported as a component of AOCL. For more detail on our interest rate swaps, see NOTE 22, "DERIVATIVES." We record all derivatives at fair value in our financial statements. Cash flows related to derivatives that are designated as hedges are classified in the same manner as the item being hedged, while cash flows related to derivatives that are not designated as hedges are included in cash flows from investing activities in our Consolidated Statements of Cash Flows . Substantially all of our derivative contracts are subject to master netting arrangements, which provide us with the option to settle certain contracts on a net basis when they settle on the same day with the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. When material, we adjust the value of our derivative contracts for counter-party or our credit risk. None of our derivative instruments are subject to collateral requirements.
Income Tax Accounting	Income Tax Accounting We determine our income tax expense using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits of net operating loss and credit carryforwards are also recognized as deferred tax assets. We evaluate the recoverability of our deferred tax assets each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. A valuation allowance is recorded to reduce the tax assets to the net value management believes is more likely than not to be realized. In the event our operating performance deteriorates, future assessments could conclude that a larger valuation allowance will be needed to further reduce the deferred tax assets. In addition, we operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. We accrue for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions. We believe we made adequate provisions for income taxes for all years that are subject to audit based upon the latest information available. A more complete description of our income taxes and the future benefits of our net operating loss and credit carryforwards is disclosed in NOTE 5, "INCOME TAXES."
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with an original maturity of 90 days or less at the time of purchase. The carrying amounts reflected in our Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to the short-term maturity of these investments. Cash payments for income taxes and interest were as follows: Years ended December 31, In millions 2022 2021 2020 Cash payments for income taxes, net of refunds $ 903 $ 521 $ 432 Cash payments for interest, net of capitalized interest 184 111 88
Marketable Securities	Marketable Securities Debt securities are classified as "held-to-maturity," "available-for-sale" or "trading." We determine the appropriate classification of debt securities at the time of purchase and re-evaluate such classifications at each balance sheet date. At December 31, 2022 and 2021, all of our debt securities were classified as available-for-sale. Debt and equity securities are carried at fair value with the unrealized gain or loss, net of tax, reported in other comprehensive income and other income, respectively. For debt securities, unrealized losses considered to be "other-than-temporary" are recognized currently in other income. The cost of securities sold is based on the specific identification method. The fair value of most investment securities is determined by currently available market prices. Where quoted market prices are not available, we use the market price of similar types of securities that are traded in the market to estimate fair value. See NOTE 6, "MARKETABLE SECURITIES," for a detailed description of our investments in marketable securities.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable represent amounts billed to customers and not yet collected or amounts that were earned, but may not be billed until the passage of time, and are recorded when the right to consideration becomes unconditional. Trade accounts receivable are recorded at the invoiced amount, which approximates net realizable value, and generally do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of expected credit losses in our existing accounts receivable. We determine the allowance based on our historical collection experience and by performing an analysis of our accounts receivable in light of the current economic environment. This estimate of expected losses reflects those losses expected to occur over the contractual life of the receivable. We review our allowance for doubtful accounts on a regular basis. In addition, when necessary, we provide an allowance for the full amount of specific accounts deemed to be uncollectible. Account balances are charged off against the allowance in the period in which we determine that it is probable the receivable will not be recovered. The allowance for doubtful accounts balances were $78 million and $33 million at December 31, 2022, and 2021, respectively, and bad debt write-offs were not material.
Inventories	Inventories Our inventories are stated at the lower of cost or net realizable value. For the years ended December 31, 2022 and 2021, approximately 14 percent and 15 percent, respectively, of our consolidated inventories (primarily heavy-duty and high-horsepower engines and parts) were valued using the last-in, first-out (LIFO) cost method. The cost of other inventories is generally valued using the first-in, first-out (FIFO) cost method. Our inventories at interim and year-end reporting dates include estimates for adjustments related to annual physical inventory results and for inventory cost changes under the LIFO cost method. Due to significant movements of partially-manufactured components and parts between manufacturing plants, we do not internally measure, nor do our accounting systems provide, a meaningful segregation between raw materials and work-in-process. See NOTE 7, "INVENTORIES," for additional information.
Property, Plant and Equipment	Property, Plant and Equipment We record property, plant and equipment at cost, inclusive of assets under finance leases. We depreciate the cost of the majority of our property, plant and equipment using the straight-line method with depreciable lives ranging from 20 to 40 years for buildings and 3 to 15 years for machinery, equipment and fixtures. Finance lease asset amortization is recorded in depreciation expense. We expense normal maintenance and repair costs as incurred. Depreciation expense totaled $557 million, $514 million and $504 million for the years ended December 31, 2022, 2021 and 2020, respectively. See NOTE 8, "PROPERTY, PLANT AND EQUIPMENT" and NOTE 9, "LEASES," for additional information.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets We review our long-lived assets for possible impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. We assess the recoverability of the carrying value of the long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment of a long-lived asset or asset group exists when the expected future pre-tax cash flows (undiscounted and without interest charges) estimated to be generated by the asset or asset group is less than its carrying value. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is measured based on the difference between the estimated fair value and carrying value of the asset or asset group. Assumptions and estimates used to estimate cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any changes to the assumptions and estimates resulting
Lessee, Leases	Leases We determine if an arrangement contains a lease in whole or in part at the inception of the contract. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term while lease liabilities represent our obligation to make lease payments arising from the lease. All leases greater than 12 months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. As most of our leases do not provide the information required to determine the implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. This rate is determined considering factors such as the lease term, our credit standing and the economic environment of the location of the lease. We use the implicit rate when readily determinable. Our lease terms include all non-cancelable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that we will exercise that option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of an asset or a liability. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases is generally front-loaded as the finance lease ROU asset is depreciated on a straight-line basis, but interest expense on the liability is recognized utilizing the interest method that results in more expense during the early years of the lease. We have lease agreements with lease and non-lease components, primarily related to real estate, vehicle and information technology (IT) assets. For vehicle and real estate leases, we account for the lease and non-lease components as a single lease component. For IT leases, we allocate the payment between the lease and non-lease components based on the relative value of each component. See NOTE 9, "LEASES," for additional information.
Goodwill	Goodwill We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform an annual quantitative goodwill impairment test. We elected this option on certain reporting units. The quantitative impairment test is only required if an entity determines through this qualitative analysis that it is more likely than not that the fair value of the reporting unit is less than its carrying value. In addition, the carrying value of goodwill must be tested for impairment on an interim basis in certain circumstances where impairment may be indicated. We perform our annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. When we are required or opt to perform the quantitative impairment test, the fair value of each reporting unit is estimated with either the market approach or the income approach. Our income approach method uses a discounted cash flow model in which cash flows anticipated over several periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate rate of return. Our reporting units are generally defined as one level below an operating segment. However, there are three situations where we have aggregated two or more reporting units which share similar economic characteristics and thus are aggregated into a single reporting unit for testing purposes. These three situations are described further below: • Within our Components segment, our emission solutions and filtration businesses were aggregated into a single reporting unit, • Within our New Power segment, our fuel cell and electrolyzer businesses were aggregated into a single reporting unit and • Our Distribution segment is considered a single reporting unit as it is managed geographically and all regions share similar economic characteristics and provide similar products and services. The discounted cash flow model requires us to make projections of revenue, gross margin, operating expenses, working capital investment and fixed asset additions for the reporting units over a multi-year period. Additionally, management must estimate a weighted-average cost of capital, which reflects a market rate, for each reporting unit for use as a discount rate. The discounted cash flows are compared to the carrying value of the reporting unit and, if less than the carrying value, the difference is recorded as a goodwill impairment loss. In addition, we also perform a sensitivity analysis to determine how much our forecasts can fluctuate before the fair value of a reporting unit would be lower than its carrying amount. Future changes in the judgments, assumptions and estimates that are used in our goodwill impairment testing, including discount rates or future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges that could materially affect our financial statements in any given year. We perform the required procedures as of the end of our fiscal third quarter. After considering the results of the recent fair value valuations related to the Meritor acquisition, the capital markets environment, economic conditions, results of operations and other factors, we concluded that the fair value of all of our reporting units exceeded their carrying value as of September 30, 2022. However, given the recent acquisition of Meritor, when fair value equaled carrying value as of the acquisition date (August 3, 2022), there is a heightened risk of a future impairment to the extent its fair value changes in future periods. At December 31, 2022, our recorded goodwill was $2.3 billion, of which approximately 31 percent resided in the axles and brakes reporting unit, 23 percent in the automated transmissions reporting unit and 16 percent in the aggregated emission solutions and filtration reporting unit. Changes in our projections or estimates, a deterioration of our operating results and the related cash flow effect or a significant increase in the discount rate could decrease the estimated fair value of our reporting units and result in a future impairment of goodwill. See NOTE 10, "GOODWILL AND OTHER INTANGIBLE ASSETS," for additional information.
Other Intangible Assets	Other Intangible Assets We capitalize other intangible assets, such as trademarks, patents and customer relationships, that were acquired either individually or with a group of other assets. These intangible assets are amortized on a straight-line basis over their estimated useful lives generally ranging from 3 to 25 years. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. See NOTE 10, "GOODWILL AND OTHER INTANGIBLE ASSETS," for additional information.
Software	Software We capitalize software that is developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives generally ranging from 2 to 12 years. Software assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. Upgrades and enhancements are capitalized if they result in significant modifications that enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion and business process reengineering costs are expensed in the period in which they are incurred. See NOTE 10, "GOODWILL AND OTHER INTANGIBLE ASSETS," for additional information.
Warranty	Warranty We estimate and record a liability for base warranty programs at the time our products are sold. Our estimates are based on historical experience and reflect management's best estimates of expected costs at the time products are sold and subsequent adjustment to those expected costs when actual costs differ. Factors considered in developing these estimates included component failure rates, repair costs and the point of failure within the product life cycle. As a result of the uncertainty surrounding the nature and frequency of product campaigns, the liability for such campaigns is recorded when we commit to a recall action or when a recall becomes probable and estimable, which generally occurs when it is announced. The liability for these campaigns is reflected in the provision for product campaigns. We review and assess the liability for these programs on a quarterly basis. We also assess our ability to recover certain costs from our suppliers and record a receivable when we believe a recovery is probable. In addition to costs incurred on warranty and product campaigns, from time to time we also incur costs related to customer satisfaction programs for items not covered by warranty. We accrue for these costs when agreement is reached with a specific customer. These costs are not included in the provision for warranties, but are included in cost of sales. In addition, we sell extended warranty coverage on most of our engines. See Extended Warranty policy discussion above and NOTE 14, "PRODUCT WARRANTY LIABILITY," for additional information.
Research and Development	Research and Development Our research and development programs are focused on product improvements, product extensions, innovations and cost reductions for our customers. Research and development expenditures include salaries, contractor fees, building costs, utilities, testing, technical information technology expenses, administrative expenses and allocation of corporate costs and are expensed, net of contract reimbursements, when incurred. From time to time, we enter into agreements with customers and government agencies to fund a portion of the research and development costs of a particular project. When not associated with a sales contract, we generally account for these reimbursements as an offset to the related research and development expenditure. Research and development expenses, net of contract reimbursements, were $1.2 billion, $1.1 billion and $0.9 billion for the years ended December 31, 2022, 2021 and 2020, respectively. Contract reimbursements were $110 million, $104 million and $86 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Related Party Transactions	Related Party Transactions In accordance with the provisions of various joint venture agreements, we may purchase products and components from our joint ventures, sell products and components to our joint ventures and our joint ventures may sell products and components to unrelated parties. Joint venture transfer prices may differ from normal selling prices. Certain joint venture agreements transfer product at cost, some transfer product on a cost-plus basis, and others transfer product at market value. Sales to nonconsolidated equity investees were $1.2 billion, $1.7 billion and $1.3 billion for the years ended December 31, 2022, 2021 and 2020, respectively. Related party sales in 2022 were down primarily due to lower sales in China due to COVID shutdowns and the acquisition of Cummins Westport, Inc. (Westport JV). Accounts receivable from nonconsolidated equity investees are presented on the face of our Consolidated Balance Sheets
Government Assistance	Government Assistance From time to time, we receive assistance from government agencies primarily related to two areas (1) expense reimbursement and funding grants in the form of cash in conjunction with research and development projects and (2) incentives primarily related to investments in new or existing facilities. The grants and related projects range in term from 1 to 6 years. Generally, the grant awards for research are payable to us when we achieve specific milestones or deliverables. Certain grant awards are subject to audit, whereby non-compliance may result in a refund to the government agency. Grants related to investments supporting facilities are typically in the form of reimbursement for capital assets or expenses such as training the employees at those facilities. We recognize grant awards related to research and development as an offset of the related research and development expenditure when the awards become payable upon us meeting a specific milestone or deliverable. We recognize grant awards for reimbursement of capital as a reduction in value of the related fixed asset. We recognize grants for reimbursement of training or other expenses as an offset to the related expense. For the year ended December 31, 2022, government grants did not have a material impact on our financial statements as a whole and we did not have any individually material grant awards.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Schedule of revisions	The amounts reclassified from NCI and revisions to APIC were 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 December 31, 2021 38 328 366 March 31, 2022 34 358 392 June 30, 2022 27 199 226
Schedule of Cash Flow, Supplemental Disclosures	Cash payments for income taxes and interest were as follows: Years ended December 31, In millions 2022 2021 2020 Cash payments for income taxes, net of refunds $ 903 $ 521 $ 432 Cash payments for interest, net of capitalized interest 184 111 88

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)				12 Months Ended
	Nov. 30, 2022	Aug. 03, 2022	Apr. 08, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Schedule of Business Acquisitions, by Acquisition				Acquisitions for the year ended December 31, 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) Siemens Commercial Vehicles Propulsion (Siemens CVP) 11/30/22 100% $ 187 $ — $ 187 $ 70 $ 106 Meritor, Inc. 08/03/22 100% 2,613 248 2,861 894 1,610 Jacobs Vehicle Systems 04/08/22 100% 345 — 345 108 164 Westport JV 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, Siemens CVP was included in the New Power segment, Jacobs Vehicle Systems was included in the Components segment and Westport JV was included in the Engine segment. (2) Intangible assets acquired in the business combination were mostly customer, technology and trade name related.
Summary of other intangible assets with finite useful lives that are subject to amortization				The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: December 31, In millions 2022 2021 Software $ 679 $ 586 Less: Accumulated amortization (410) (314) Software, net 269 272 Trademarks, patents, customer relationships and other 2,858 957 Less: Accumulated amortization (440) (329) Trademarks, patents, customer relationships and other, net 2,418 628 Other intangible assets, net $ 2,687 $ 900
Siemens Commercial Vehicles
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The preliminary purchase price allocation was as follows: In millions Inventories $ 21 Property, plant and equipment 3 Intangible assets 106 Goodwill 70 Deferred revenue (3) Other, net (10) Total purchase price $ 187
Summary of other intangible assets with finite useful lives that are subject to amortization	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 $ 62 20 Multi-period excess earnings Discount rate, customer renewal rates Technology 28 11 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 16 17 Relief-from-royalty Royalty rate, discount rate
Meritor Inc.
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed		The preliminary purchase price allocation has been updated as follows: In millions Cash and cash equivalents $ 98 Accounts and notes receivable, net 640 Inventories 750 Property, plant and equipment 846 Intangible assets 1,610 Investments and advances related to equity method investees 382 Goodwill 894 Pension assets 147 Other current and long-term assets 322 Accounts payable (principally trade) (711) Net deferred taxes (320) Other liabilities (pensions and other postretirement benefits) (129) Long-term debt (962) Other current and long-term liabilities (595) Noncontrolling interests (111) Total purchase price $ 2,861
Summary of other intangible assets with finite useful lives that are subject to amortization		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 (1) , discount rate, customer renewal rates, customer attrition rates Technology 345 8 Relief-from-royalty Royalty rate, discount rate, obsolescence factor Trade name 305 21 Relief-from-royalty Royalty rate, discount rate (1) E arnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests
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) Years ended In millions December 31, December 31, Net sales $ 30,841 $ 27,949 Net income 2,196 2,058
Jacobs Vehicle Systems
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed			The final 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 (6) Total purchase price $ 345
Summary of other intangible assets with finite useful lives that are subject to amortization			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 Discount rate, customer renewal rates Technology 31 7 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 25 14 Relief-from-royalty Royalty rate, discount

REVENUE RECOGNITION LONG-TERM_2

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRAACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability	The following is a summary of our unbilled and deferred revenue and related activity: Years ended December 31, In millions 2022 2021 Unbilled revenue $ 257 $ 100 Deferred revenue, primarily extended warranty 1,848 1,705

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	12 Months Ended
	Dec. 31, 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. Years ended December 31, In millions 2022 2021 2020 United States $ 15,552 $ 12,489 $ 10,605 China 2,390 3,169 2,832 India 1,392 1,133 680 Other international 8,740 7,230 5,694 Total net sales $ 28,074 $ 24,021 $ 19,811
Engine
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Market	Engine segment external sales by market were as follows: Years ended December 31, In millions 2022 2021 2020 Heavy-duty truck $ 2,995 $ 2,511 $ 1,800 Medium-duty truck and bus 2,412 1,978 1,629 Light-duty automotive 1,704 1,845 1,441 Total on-highway 7,111 6,334 4,870 Off-highway 1,088 1,255 1,055 Total sales $ 8,199 $ 7,589 $ 5,925
Components
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Components segment external sales by business were as follows: Years ended December 31, In millions 2022 2021 2020 Emission solutions $ 3,086 $ 3,142 $ 2,352 Axles and brakes 1,879 — — Filtration 1,259 1,171 1,005 Turbo technologies 806 787 673 Automated transmissions 593 481 303 Electronics and fuel systems 224 351 317 Total sales $ 7,847 $ 5,932 $ 4,650
Distribution
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	Distribution segment external sales by region were as follows: Years ended December 31, In millions 2022 2021 2020 North America $ 5,948 $ 4,902 $ 4,688 Asia Pacific 1,011 901 799 Europe 705 647 597 China 351 323 340 Africa and Middle East 227 259 198 Commonwealth of Independent States 232 334 191 India 217 194 150 Latin America 210 182 147 Total sales $ 8,901 $ 7,742 $ 7,110
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: Years ended December 31, In millions 2022 2021 2020 Parts $ 3,809 $ 3,136 $ 2,921 Engines 1,770 1,493 1,245 Power generation 1,767 1,754 1,686 Service 1,555 1,359 1,258 Total sales $ 8,901 $ 7,742 $ 7,110
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: Years ended December 31, In millions 2022 2021 2020 Power generation $ 1,658 $ 1,481 $ 1,155 Industrial 843 820 638 Generator technologies 450 349 262 Total sales $ 2,951 $ 2,650 $ 2,055

INVESTMENTS IN EQUITY INVESTE_2

INVESTMENTS IN EQUITY INVESTEES (Tables)	12 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Summary of investments in and advances to equity investees and our ownership percentage	Investments and advances related to equity method investees and our ownership percentages were as follows: Ownership December 31, Dollars in millions percentage 2022 2021 Komatsu alliances 20-50% $ 295 $ 275 Beijing Foton Cummins Engine Co., Ltd. 50% 189 255 Sisamex 50% 144 — Cummins-Scania XPI Manufacturing, LLC 50% 130 125 Automotive Axles Limited 36% 125 — Chongqing Cummins Engine Company, Ltd. 50% 118 144 Dongfeng Cummins Engine Company, Ltd. 50% 106 148 Tata Cummins, Ltd. 50% 92 88 Freios Master 49% 86 — Other Various 474 503 Investments and advances related to equity method investees $ 1,759 $ 1,538
Equity, royalty and interest income from investees	Equity, royalty and interest income from investees, net of applicable taxes, was as follows: Years ended December 31, In millions 2022 2021 2020 Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 45 $ 82 $ 63 Beijing Foton Cummins Engine Co., Ltd. 37 112 113 Chongqing Cummins Engine Company, Ltd. 32 39 35 Tata Cummins, Ltd. 27 18 19 (1) All other manufacturers 28 (2) 131 115 (3) Distribution entities Komatsu Cummins Chile, Ltda. 44 32 31 All other distributors 11 10 2 Cummins share of net income 224 424 378 Royalty and interest income 125 82 74 Equity, royalty and interest income from investees $ 349 $ 506 $ 452 (1) Includes $18 million in favorable adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 5, "INCOME TAXES" for additional information on India Tax Law Change. (2) 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 Westport JV. See NOTE 2, "ACQUISITIONS," and NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information. (3) Includes $19 million in favorable adjustments related to India Tax Law Change, impairment charges of $13 million and loss on sale of business of $8 million for a joint venture in the Power Systems segment. See NOTE 5, "INCOME TAXES" for additional information on India Tax Law Change.
Summary of financial information for equity investees	Summary financial information for our equity investees was as follows: Years ended and at December 31, In millions 2022 2021 2020 Net sales $ 7,501 $ 8,934 $ 7,794 Gross margin 1,211 1,574 1,418 Net income 475 802 696 Cummins share of net income $ 224 $ 424 $ 378 Royalty and interest income 125 82 74 Total equity, royalty and interest from investees $ 349 $ 506 $ 452 Current assets $ 4,252 $ 4,587 Long-term assets 1,935 1,850 Current liabilities (3,224) (3,573) Long-term liabilities (399) (288) Net assets $ 2,564 $ 2,576 Cummins share of net assets $ 1,715 $ 1,490

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	The following table summarizes income before income taxes: Years ended December 31, In millions 2022 2021 2020 U.S. income $ 1,336 $ 1,251 $ 1,134 Foreign income 1,483 1,500 1,204 Income before income taxes $ 2,819 $ 2,751 $ 2,338
Schedule of Components of Income Tax Expense (Benefit)	Income tax expense (benefit) consisted of the following: Years ended December 31, In millions 2022 2021 2020 Current U.S. federal and state $ 425 $ 261 $ 162 Foreign 485 319 358 Total current income tax expense 910 580 520 Deferred U.S. federal and state (229) (12) 2 Foreign (45) 19 22 Impact of India tax law changes — — (17) Total deferred income tax (benefit) expense (274) 7 7 Income tax expense $ 636 $ 587 $ 527
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate was as follows: Years ended December 31, 2022 2021 2020 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal effect 1.3 1.1 1.0 Differences in rates and taxability of foreign subsidiaries and joint ventures 3.1 0.1 3.6 Research tax credits (1.8) (0.6) (1.3) Foreign derived intangible income (2.0) (1.0) (1.2) Impact of India tax law changes — — (0.7) Other, net 1.0 0.7 0.1 Effective tax rate 22.6 % 21.3 % 22.5 %
Schedule of Other Income Tax Adjustments	The India Tax Law Change resulted in the following adjustments to the Consolidated Statements of Net Income for the year ended December 31, 2020: In millions Favorable (Unfavorable) Equity, royalty and interest income from investees $ 37 Income tax expense (1) 17 Less: Net income attributable to noncontrolling interests (19) Net income statement impact $ 35 (1) The adjustment to income tax expense includes $15 million of favorable discrete items.
Schedule of Deferred Tax Assets and Liabilities	Carryforward tax benefits and the tax effect of temporary differences between financial and tax reporting that give rise to net deferred tax assets (liabilities) were as follows: December 31, In millions 2022 2021 Deferred tax assets U.S. and state carryforward benefits $ 272 $ 218 Foreign carryforward benefits 527 177 Employee benefit plans 258 254 Warranty expenses 458 445 Lease liabilities 110 108 Capitalized research and development expenditures 238 — Accrued expenses 174 111 Other 126 74 Gross deferred tax assets 2,163 1,387 Valuation allowance (704) (360) Total deferred tax assets 1,459 1,027 Deferred tax liabilities Property, plant and equipment (369) (272) Unremitted income of foreign subsidiaries and joint ventures (210) (197) Employee benefit plans (311) (355) Lease assets (108) (105) Intangible assets (435) (44) Other (50) (29) Total deferred tax liabilities (1,483) (1,002) Net deferred tax (liabilities) assets $ (24) $ 25
Tax Related Line Items on the Consolidated Balance Sheets	Our Consolidated Balance Sheets contain the following tax related items: December 31, In millions 2022 2021 Prepaid expenses and other current assets Refundable income taxes $ 83 $ 101 Other assets Deferred income tax assets 625 428 Long-term refundable income taxes 14 — Other accrued expenses Income tax payable 173 107 Other liabilities Long-term income taxes 192 263 Deferred income tax liabilities 649 403
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 was as follows: December 31, In millions 2022 2021 2020 Balance at beginning of year $ 89 $ 122 $ 77 Additions to tax positions due to acquisitions 189 — — Additions to current year tax positions 17 11 9 Additions to prior years' tax positions 17 16 49 Reductions to prior years' tax positions (1) (28) (13) Reductions for tax positions due to settlements with taxing authorities (28) (32) — Balance at end of year $ 283 $ 89 $ 122

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2022
Marketable Securities [Abstract]
Summary of marketable securities	A summary of marketable securities, all of which are classified as current, was as follows: December 31, 2022 2021 In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Certificates of deposit $ 209 $ — $ 209 $ 299 $ — $ 299 Debt mutual funds 238 (5) 233 254 2 256 Equity mutual funds 25 3 28 29 10 39 Debt securities 2 — 2 1 — 1 Marketable securities $ 474 $ (2) $ 472 $ 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 our Consolidated Statements of Net Income .
Schedule of proceeds from sales and maturities of marketable securities	The proceeds from sales and maturities of marketable securities were as follows: Years ended December 31, In millions 2022 2021 2020 Proceeds from sales of marketable securities $ 750 $ 494 $ 343 Proceeds from maturities of marketable securities 401 179 126 Investments in marketable securities - liquidations $ 1,151 $ 673 $ 469

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories are stated at the lower of cost or net realizable value. Inventories included the following: December 31, In millions 2022 2021 Finished products $ 2,917 $ 2,538 Work-in-process and raw materials 2,926 2,009 Inventories at FIFO cost 5,843 4,547 Excess of FIFO over LIFO (240) (192) Inventories $ 5,603 $ 4,355

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property, plant and equipment	Details of our property, plant and equipment balance were as follows: December 31, In millions 2022 2021 Land and buildings $ 2,908 $ 2,632 Machinery, equipment and fixtures 6,598 5,910 Construction in process 1,001 816 Property, plant and equipment, gross 10,507 9,358 Less: Accumulated depreciation (4,986) (4,936) Property, plant and equipment, net $ 5,521 $ 4,422

LEASES FOOTNOTE DISCLOSURE LE_2

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Lease, Cost	The components of our lease cost were as follows: Years ended December 31, In millions 2022 2021 2020 Operating lease cost $ 160 $ 172 $ 172 Finance lease cost Amortization of right-of-use asset 19 16 18 Interest expense 4 4 4 Short-term lease cost 23 18 19 Variable lease cost 12 11 12 Total lease cost $ 218 $ 221 $ 225
Schedule Of Supplemental Balance Sheet Information Related To Leases Table	Supplemental balance sheet information related to leases: December 31, In millions 2022 2021 Balance Sheet Location Assets Operating lease assets $ 492 $ 444 Other assets Finance lease assets (1) 117 95 Property, plant and equipment, net Total lease assets $ 609 $ 539 Liabilities Current Operating lease liabilities $ 132 $ 128 Other accrued expenses Finance lease liabilities 32 14 Current maturities of long-term debt Long-term Operating lease liabilities 368 326 Other liabilities Finance lease liabilities 81 75 Long-term debt Total lease liabilities $ 613 $ 543 (1) Finance lease assets were recorded net of accumulated amortization of $78 million and $66 million at December 31, 2022 and 2021.
Schedule Of Supplemental Cash Flow Information Related To Leases Table	Supplemental cash flow and other information related to leases: Years ended December 31, In millions 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 151 $ 159 $ 149 Operating cash flows from finance leases 4 4 4 Financing cash flows from finance leases 16 14 14 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 148 $ 160 $ 97 Finance leases 29 13 19
Schedule Of Supplemental Other Information Related To Leases Table	Additional information related to leases: December 31, 2022 2021 Weighted-average remaining lease term (in years) Operating leases 5.4 5.1 Finance leases 7.9 9.8 Weighted-average discount rate Operating leases 3.7 % 2.8 % Finance leases 4.7 % 3.9 %
Lessee, Finance and Operating Lease, Liability, Maturity	Following is a summary of the future minimum lease payments due to finance and operating leases with terms of more than one year at December 31, 2022, together with the net present value of the minimum payments: In millions Finance Leases Operating Leases 2023 $ 37 $ 145 2024 16 118 2025 13 93 2026 10 62 2027 9 45 After 2027 53 94 Total minimum lease payments 138 557 Interest (25) (57) Present value of net minimum lease payments $ 113 $ 500

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021: In millions Components New Power Distribution Power Systems Engine Total Balance at December 31, 2020 $ 941 $ 257 $ 79 $ 10 $ 6 $ 1,293 Acquisitions — — — 2 — 2 Foreign currency translation and other (7) — — (1) — (8) Balance at December 31, 2021 934 257 79 11 6 1,287 Acquisitions 835 237 — — — 1,072 Foreign currency translation and other (17) 1 — — — (16) Balance at December 31, 2022 $ 1,752 $ 495 $ 79 $ 11 $ 6 $ 2,343
Summary of other intangible assets with finite useful lives that are subject to amortization	The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: December 31, In millions 2022 2021 Software $ 679 $ 586 Less: Accumulated amortization (410) (314) Software, net 269 272 Trademarks, patents, customer relationships and other 2,858 957 Less: Accumulated amortization (440) (329) Trademarks, patents, customer relationships and other, net 2,418 628 Other intangible assets, net $ 2,687 $ 900
Projected amortization expense of intangible assets	The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows: In millions 2023 2024 2025 2026 2027 Projected amortization expense $ 315 $ 304 $ 274 $ 252 $ 231

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	12 Months Ended
	Dec. 31, 2022
Pension and other postretirement benefits
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets	The following table summarizes the total accumulated benefit obligation (ABO), the ABO for defined benefit pension plans with ABO in excess of plan assets and the PBO for defined benefit pension plans with PBO in excess of plan assets: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2022 2021 2022 2021 Total ABO $ 3,138 $ 2,986 $ 1,376 $ 1,844 Plans with ABO in excess of plan assets ABO 1,044 424 — — Plans with PBO in excess of plan assets PBO 1,078 449 — —
Pension Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2022 2021 2022 2021 Change in benefit obligation Benefit obligation at the beginning of the year $ 3,012 $ 3,122 $ 1,887 $ 2,050 Service cost 137 139 30 33 Interest cost 101 79 39 30 Actuarial gain (643) (132) (702) (136) Benefits paid from fund (200) (178) (70) (63) Benefits paid directly by employer (25) (18) — — Plan amendment 3 — — — Assumption of Meritor's benefit obligation 786 — 418 — Foreign currency translation adjustments — — (204) (27) Benefit obligation at end of year $ 3,171 $ 3,012 $ 1,398 $ 1,887 Change in plan assets Fair value of plan assets at beginning of year $ 3,548 $ 3,429 $ 2,390 $ 2,337 Actual return on plan assets (244) 267 (960) 118 Employer contributions 25 30 3 30 Benefits paid from fund (200) (178) (70) (63) Assumption of Meritor's plan assets 699 — 565 — Foreign currency translation adjustments — — (258) (32) Fair value of plan assets at end of year $ 3,828 $ 3,548 $ 1,670 $ 2,390 Funded status (including unfunded plans) at end of year $ 657 $ 536 $ 272 $ 503 Amounts recognized in consolidated balance sheets Pension assets $ 1,126 $ 985 $ 272 $ 503 Accrued compensation, benefits and retirement costs (24) (18) — — Other liabilities (445) (431) — — Net amount recognized $ 657 $ 536 $ 272 $ 503 Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ 273 $ 467 $ 402 $ 61 Prior service cost 8 6 10 11 Net amount recognized $ 281 $ 473 $ 412 $ 72
Schedule of Net Benefit Costs	The following table presents the net periodic pension cost (income) under our plans for the years ended December 31: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2022 2021 2020 2022 2021 2020 Service cost $ 137 $ 139 $ 133 $ 30 $ 33 $ 29 Interest cost 101 79 95 39 30 36 Expected return on plan assets (229) (199) (195) (87) (85) (74) Amortization of prior service cost 1 1 1 1 2 2 Recognized net actuarial loss 23 47 41 3 31 34 Net periodic pension cost (income) $ 33 $ 67 $ 75 $ (14) $ 11 $ 27
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows: In millions 2022 2021 2020 Amortization of prior service cost $ (2) $ (3) $ (3) Recognized net actuarial loss (26) (78) (75) Incurred prior service cost 3 — — Incurred actuarial loss (gain) 173 (368) 85 Foreign currency translation adjustments — 5 19 Total recognized in other comprehensive loss (income) $ 148 $ (444) $ 26 Total recognized in net periodic pension cost and other comprehensive loss (income) $ 167 $ (366) $ 128
Schedule of Assumptions Used	The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2022 2021 2022 2021 Discount rate 5.55 % 3.01 % 4.99 % 1.95 % Cash balance crediting rate 4.56 % 3.79 % — — Compensation increase rate 5.35 % 2.71 % 3.75 % 3.75 % The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2022 2021 2020 2022 2021 2020 Discount rate 3.31 % 2.62 % 3.36 % 2.26 % 1.50 % 2.00 % Expected return on plan assets 6.50 % 6.25 % 6.25 % 4.01 % 4.00 % 4.00 % Compensation increase rate 2.71 % 2.72 % 2.73 % 3.75 % 3.75 % 3.75 %
Schedule of Expected Benefit Payments	The table below presents expected future benefit payments under our pension plans: Qualified and Non-Qualified Pension Plans In millions 2023 2024 2025 2026 2027 2028 - 2032 Expected benefit payments $ 367 $ 351 $ 357 $ 361 $ 363 $ 1,841
Other Postretirement Benefit Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows: December 31, In millions 2022 2021 Change in benefit obligation Benefit obligation at the beginning of the year $ 192 $ 219 Interest cost 5 5 Plan participants' contributions 4 14 Actuarial gain (25) (8) Benefits paid directly by employer (36) (38) Assumption of Meritor's benefit obligation 22 — Benefit obligation at end of year $ 162 $ 192 Funded status at end of year $ (162) $ (192) Amounts recognized in consolidated balance sheets Accrued compensation, benefits and retirement costs $ (21) $ (19) Other liabilities (141) (173) Net amount recognized $ (162) $ (192) Amounts recognized in accumulated other comprehensive loss Net actuarial gain $ (44) $ (18) Prior service credit (3) (4) Net amount recognized $ (47) $ (22)
Schedule of Net Benefit Costs	The following table presents the net periodic OPEB cost under our plans: Years ended December 31, In millions 2022 2021 2020 Interest cost $ 5 $ 5 $ 7 Recognized net actuarial gain — — (1) Net periodic OPEB cost $ 5 $ 5 $ 6
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 were as follows: Years ended December 31, In millions 2022 2021 2020 Recognized net actuarial gain $ — $ — $ 1 Incurred actuarial (gain) loss (25) (8) 14 Total recognized in other comprehensive (income) loss $ (25) $ (8) $ 15 Total recognized in net periodic OPEB cost and other comprehensive (income) loss $ (20) $ (3) $ 21
Schedule of Assumptions Used	The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows: 2022 2021 Discount rate 5.59 % 2.75 % The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows: 2022 2021 2020 Discount rate 2.93 % 2.30 % 3.15 %
Schedule of Expected Benefit Payments	The table below presents expected benefit payments under our OPEB plans: In millions 2023 2024 2025 2026 2027 2028 - 2032 Expected benefit payments $ 22 $ 20 $ 19 $ 17 $ 16 $ 64
UNITED STATES
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	To achieve these objectives, we established the following targets: Cummins Meritor Asset Class Plan Target Plan Target U.S. equities 5 % 11 % Non-U.S. equities 1 % 9 % Global equities 6 % — % Total equities 12 % 20 % Real assets 6 % — % Private equity/venture capital 6 % — % Opportunistic credit 4 % — % Alternative investments — % 39 % Fixed income 72 % 41 % Total 100 % 100 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.S. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 118 $ — $ — $ 118 Non-U.S. 31 — — 31 Fixed income Government debt 188 — 188 Corporate debt U.S. — 423 — 423 Non-U.S. 12 41 — 53 Asset/mortgaged backed securities 7 — — 7 Net cash equivalents (1) 499 9 — 508 Diversified strategies 14 — — 14 Private markets and real assets (2) — — 641 641 Net plan assets subject to leveling $ 681 $ 661 $ 641 $ 1,983 Accruals (3) 7 Investments measured at net asset value 1,838 Net plan assets $ 3,828 Fair Value Measurements at December 31, 2021 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 115 $ — $ — $ 115 Non-U.S. 38 — — 38 Fixed income Government debt 37 30 — 67 Corporate debt U.S. — 489 — 489 Non-U.S. — 19 — 19 Net cash equivalents (1) 270 57 — 327 Private markets and real assets (2) — — 551 551 Net plan assets subject to leveling $ 460 $ 595 $ 551 $ 1,606 Pending trade/purchases/sales 2 Accruals (3) 6 Investments measured at net asset value 1,934 Net plan assets $ 3,548 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Private Markets Real Assets Total Balance at December 31, 2020 $ 359 $ 72 $ 431 Actual return on plan assets Unrealized gains on assets still held at the reporting date 144 11 155 Purchases, sales and settlements, net (32) (3) (35) Balance at December 31, 2021 471 80 551 Actual return on plan assets Unrealized gains on assets still held at the reporting date 6 19 25 Purchases, sales and settlements, net (12) (17) (29) Assumption of Meritor's plan assets 94 — 94 Balance at December 31, 2022 $ 559 $ 82 $ 641
UNITED KINGDOM
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	To achieve these objectives, we established the following targets: Cummins Plan Target Meritor Plan Target Range Asset Class Minimum Maximum Equities 8 % 15 % 30 % Private markets/secure income assets 19 % — % — % Credit/bank loans 4 % — % 15 % Diversified strategies 4 % 25 % 50 % Real estate — % — % 15 % Fixed income/insurance annuity 64 % 25 % 45 % Cash 1 % — % — % Total 100 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.K. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 13 $ — $ — $ 13 Non-U.S. 9 — — 9 Fixed income Government debt — 222 — 222 Corporate debt U.S. — 24 — 24 Non-U.S. — 80 — 80 Net cash equivalents (1) 27 11 — 38 Insurance annuity — — 428 428 Private markets and real assets (2) — — 390 390 Net plan assets subject to leveling $ 49 $ 337 $ 818 $ 1,204 Pending trade/purchases/sales 141 Accruals (3) 2 Investments measured at net asset value 323 Net plan assets $ 1,670 Fair Value Measurements at December 31, 2021 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ — $ 79 $ — $ 79 Non-U.S. — 74 — 74 Fixed income Net cash equivalents (1) 35 — — 35 Insurance annuity — — 514 514 Private markets and real assets (2) — — 389 389 Net plan assets subject to leveling $ 35 $ 153 $ 903 $ 1,091 Investments measured at net asset value 1,299 Net plan assets $ 2,390 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Insurance Annuity Real Assets Private Markets Total Balance at December 31, 2020 $ 556 $ 31 $ 251 $ 838 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (42) 2 114 74 Purchases, sales and settlements, net — — (9) (9) Balance at December 31, 2021 514 33 356 903 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (178) (2) 39 (141) Purchases, sales and settlements, net — (23) (13) (36) Assumption of Meritor's plan assets 92 — — 92 Balance at December 31, 2022 $ 428 $ 8 $ 382 $ 818

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of Other Assets	Other assets included the following: December 31, In millions 2022 2021 Deferred income taxes $ 625 $ 428 Operating lease assets 492 444 Corporate owned life insurance 390 492 Other 633 402 Other assets $ 2,140 $ 1,766
Schedule of Accrued Liabilities	Other accrued expenses included the following: December 31, In millions 2022 2021 Marketing accruals $ 316 $ 303 Other taxes payable 224 234 Income taxes payable 173 107 Current portion of operating lease liabilities 132 128 Other 620 418 Other accrued expenses $ 1,465 $ 1,190
Other Noncurrent Liabilities	Other liabilities included the following: December 31, In millions 2022 2021 Accrued product warranty $ 744 $ 684 Deferred income taxes 649 403 Pensions 445 431 Operating lease liabilities 368 326 Long-term income taxes 192 263 Accrued compensation 184 177 Mark-to-market valuation on interest rate derivatives 151 19 Other postretirement benefits 141 173 Other long-term liabilities 437 320 Other liabilities $ 3,311 $ 2,796

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2022
Short-term Debt [Line Items]
Summary of long-term debt	A summary of long-term debt was as follows: December 31, In millions Interest Rate 2022 2021 Long-term debt Senior notes, due 2023 (1) 3.65% $ 500 $ 500 Term loan, due 2025 Variable 1,550 — Senior notes, due 2025 (2) 0.75% 500 500 Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 (2) 1.50% 850 850 Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 650 Debentures, due 2098 (3) 5.65% 165 165 Other debt 121 110 Unamortized discount and deferred issuance costs (64) (68) Fair value adjustments due to hedge on indebtedness (122) 34 Finance leases 113 89 Total long-term debt 5,071 3,638 Less: Current maturities of long-term debt 573 59 Long-term debt $ 4,498 $ 3,579 (1) Senior notes, due 2023, are classified as current maturities of long-term debt at December 31, 2022. (2) 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" section of NOTE 22, "DERIVATIVES," for additional information. (3) 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 2023 2024 2025 2026 2027 Principal payments $ 573 $ 44 $ 2,061 $ 56 $ 64
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: December 31, In millions 2022 2021 Fair values of total debt (1) $ 7,400 $ 4,461 Carrying value of total debt 7,855 4,159 (1) The fair value of debt is derived from Level 2 input measures.
Loans Payable
Short-term Debt [Line Items]
Weighted-average interest rate	The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows: 2022 2021 Weighted-average interest rate 4.02 % 2.71 %
Commercial Paper
Short-term Debt [Line Items]
Weighted-average interest rate	The weighted-average interest rate for commercial paper at December 31 was as follows: 2022 2021 Weighted-average interest rate 4.27 % (1) (0.01) % (2) (1) The weighted-average interest rate, inclusive of all brokerage fees, was 4.27 percent at December 31, 2022. This included $107 million of borrowings under the Europe program at a weighted-average interest rate of 1.86 percent and $2.5 billion of borrowings under the U.S. program at a weighted-average interest rate of 4.38 percent. (2) 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.

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	12 Months Ended
	Dec. 31, 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: December 31, In millions 2022 2021 2020 Balance, beginning of year $ 2,425 $ 2,307 $ 2,389 Provision for base warranties issued 515 503 443 Deferred revenue on extended warranty contracts sold 287 288 248 Provision for product campaigns issued 141 346 90 Payments made during period (596) (530) (589) Amortization of deferred revenue on extended warranty contracts (298) (260) (227) Changes in estimates for pre-existing product warranties and campaigns (128) (228) (52) Acquisitions (1) 147 — — Foreign currency translation adjustments and other (16) (1) 5 Balance, end of year $ 2,477 $ 2,425 $ 2,307 (1) See NOTE 2, "ACQUISITIONS," to our Consolidated Financial Statements for additional information.
Deferred Revenue Extended Coverage and Base Warranty Liability, Disclosure	Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows: December 31, In millions 2022 2021 Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 290 $ 286 Current portion of deferred revenue Long-term portion 717 700 Deferred revenue Total $ 1,007 $ 986 Product warranty Current portion $ 726 $ 755 Current portion of accrued product warranty Long-term portion 744 684 Other liabilities Total $ 1,470 $ 1,439 Total warranty accrual $ 2,477 $ 2,425

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans	Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans were as follows: In millions Common Treasury Common Stock Balance at December 31, 2019 222.4 71.7 0.2 Shares acquired — 3.9 — Shares issued — (0.8) (0.2) Balance at December 31, 2020 222.4 74.8 — Shares acquired — 5.7 — Shares issued 0.1 (0.5) — Balance at December 31, 2021 222.5 80.0 — Shares acquired — 1.9 — Shares issued — (0.7) — Balance at December 31, 2022 222.5 81.2 —
Repurchases of common stock	For the year ended December 31, 2022, we made the following purchases under the stock repurchase program: In millions (except per share amounts) Shares Purchased Average Cost Total Cost of Remaining Authorized Capacity (1) March 31 1.6 $ 199.27 $ 311 $ 2,281 June 30 0.1 194.00 36 2,245 September 30 0.2 197.72 23 2,222 December 31 0.0 (2) 206.12 4 2,218 Total 1.9 198.74 $ 374 (1) The remaining $218 million authorized capacity under the 2019 plan was calculated based on the cost to purchase the shares, but excludes commission expenses in accordance with the authorized plan. (2) Shares purchased in the fourth quarter totaled 21,830.
Dividends per share paid to common shareholders	Cash dividends per share paid to common shareholders for the last three years were as follows: Quarterly Dividends 2022 2021 2020 First quarter $ 1.45 $ 1.35 $ 1.311 Second quarter 1.45 1.35 1.311 Third quarter 1.57 1.45 1.311 Fourth quarter 1.57 1.45 1.35 Total $ 6.04 $ 5.60 $ 5.28

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Changes in accumulated other comprehensive income (loss) by component	Following are the changes in accumulated other comprehensive income (loss) by component: In millions Change in pensions Foreign Unrealized gain Total Noncontrolling Total Balance at December 31, 2019 $ (734) $ (1,285) $ (9) $ (2,028) Other comprehensive income (loss) before reclassifications Before-tax amount (92) 73 (41) (60) $ (10) $ (70) Tax benefit 26 8 9 43 — 43 After-tax amount (66) 81 (32) (17) (10) (27) Amounts reclassified from accumulated other comprehensive income (1) 65 — (2) 63 — 63 Net current period other comprehensive (loss) income (1) 81 (34) 46 $ (10) $ 36 Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income (loss) before reclassifications Before-tax amount 425 (5) 38 458 $ (5) $ 453 Tax (expense) benefit (103) 1 (12) (114) — (114) After-tax amount 322 (4) 26 344 (5) 339 Amounts reclassified from accumulated other comprehensive income (1) 67 — — 67 — 67 Net current period other comprehensive income (loss) 389 (4) 26 411 $ (5) $ 406 Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount (123) (350) 136 (337) $ (40) $ (377) Tax benefit (expense) 19 6 (32) (7) — (7) After-tax amount (104) (344) 104 (344) (40) (384) Amounts reclassified from accumulated other comprehensive income (1) 23 — 2 25 — 25 Net current period other comprehensive (loss) income (81) (344) 106 (319) $ (40) $ (359) Balance at December 31, 2022 $ (427) $ (1,552) $ 89 $ (1,890) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

NONCONTROLLING INTERESTS (Table

NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Dec. 31, 2022
Noncontrolling Interest [Abstract]
Noncontrolling interests in the equity of consolidated subsidiaries	Noncontrolling interests in the equity of consolidated subsidiaries were as follows: December 31, In millions 2022 2021 Eaton Cummins Automated Transmission Technologies $ 525 $ 518 Cummins India Ltd. 342 347 Other 125 24 Noncontrolling interests $ 992 $ 889

STOCK INCENTIVE AND STOCK OPT_2

STOCK INCENTIVE AND STOCK OPTION PLANS (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Option, Activity	The table below summarizes the employee share-based activity in the Plan: Options Weighted-average Weighted-average Aggregate Balance at December 31, 2019 3,237,570 $ 140.36 Granted 632,080 142.81 Exercised (660,786) 131.25 Forfeited (33,334) 150.83 Balance at December 31, 2020 3,175,530 142.63 Granted 16,550 232.44 Exercised (400,154) 138.93 Forfeited (48,828) 153.72 Balance at December 31, 2021 2,743,098 143.51 Granted 18,900 207.79 Exercised (586,990) 137.83 Forfeited (29,045) 148.08 Balance at December 31, 2022 2,145,963 $ 145.57 5.2 $ 208 Exercisable, December 31, 2020 1,589,015 $ 130.28 4.6 $ 151 Exercisable, December 31, 2021 1,629,588 $ 136.74 4.4 $ 133 Exercisable, December 31, 2022 1,655,298 $ 146.37 4.6 $ 159
Schedule of Nonvested Share Activity	The weighted-average grant date fair value of performance and restricted shares was as follows: Performance Shares Restricted Shares Nonvested Shares Weighted-average Shares Weighted-average Balance at December 31, 2019 395,931 $ 144.64 2,697 $ 117.68 Granted 260,480 132.57 3,704 165.04 Vested (268,773) 138.27 (2,697) 117.68 Forfeited (10,684) 144.22 — — Balance at December 31, 2020 376,954 140.85 3,704 165.04 Granted 217,684 234.22 26,224 265.41 Vested (131,744) 146.55 — — Forfeited (22,745) 171.91 — — Balance at December 31, 2021 440,149 183.72 29,928 252.99 Granted 230,535 184.92 215,260 209.08 Vested (122,188) 148.99 (5,513) 249.79 Forfeited (63,197) 182.68 (3,262) 211.37 Balance at December 31, 2022 485,299 $ 193.17 236,413 $ 213.66
Schedule of Share-based Payment Award,s for Performance and Restricted shares - Assumptions	The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: 2022 2021 2020 Expected life (years) 6 6 6 Risk-free interest rate 2.32 % 1.15 % 0.62 % Expected volatility 28.40 % 28.68 % 27.05 % Dividend yield 2.85 % 2.95 % 2.88 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Computations for basic and diluted earnings per share	Following are the computations for basic and diluted earnings per share: Years ended December 31, In millions, except per share amounts 2022 2021 2020 Net income attributable to Cummins Inc. $ 2,151 $ 2,131 $ 1,789 Weighted-average common shares outstanding Basic 141.5 144.6 148.2 Dilutive effect of stock compensation awards 0.8 1.3 0.8 Diluted 142.3 145.9 149.0 Earnings per common share attributable to Cummins Inc. Basic $ 15.20 $ 14.74 $ 12.07 Diluted 15.12 14.61 12.01
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share were as follows: Years ended December 31, 2022 2021 2020 Options excluded 20,595 6,463 645,334

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)	The following table summarizes the net investment hedge activity in AOCL: Year ended December 31, In millions 2022 Type of Derivative Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Foreign exchange forwards $ (22) $ — The following table summarizes the interest rate lock activity in AOCL: Year ended December 31, In millions 2022 2021 2020 Type of Swap Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate locks $ 112 $ — $ 19 $ — $ (22) $ —
Schedule of Interest Rate Derivatives	The following table summarizes the gains and losses: Years ended December 31, In millions 2022 2021 2020 Type of Swap Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Interest rate swaps (1) $ (148) $ 145 $ (3) $ 2 $ 7 $ (5) (1) The difference between the gain (loss) on swaps and borrowings represented hedge ineffectiveness.
Derivative Instruments, Gain (Loss)	The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments classified as cash flow hedges. The table does not include amounts related to ineffectiveness as it was not material for the periods presented. Years ended December 31, In millions 2022 2021 2020 Gain (loss) reclassified from AOCL into income - Net sales (1) $ (4) $ (4) $ 3 Gain (loss) reclassified from AOCL into income - Cost of sales (1)(2) 1 6 — Total $ (3) $ 2 $ 3 (1) Includes foreign currency forward contracts. (2) Includes commodity swap contracts.
Derivatives Not Designated as Hedging Instruments	The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments not classified as cash flow hedges: Years ended December 31, In millions 2022 2021 2020 Gain (loss) recognized in income - Cost of sales (1) $ 2 $ — $ (1) Gain (loss) recognized in income - Other income, net (1) (5) 45 1 Total $ (3) $ 45 $ — (1) Includes foreign currency forward contracts.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The following table summarizes the location and fair value of derivative instruments on our Consolidated Balance Sheets : Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, In millions 2022 2021 2022 2021 Notional amount $ 3,051 $ 2,558 $ 2,900 $ 1,888 Derivative assets Prepaid expenses and other current assets $ 18 $ 15 $ 27 $ 4 Other assets 80 — — — Total derivative assets (1) $ 98 $ 15 $ 27 $ 4 Derivative liabilities Other accrued expenses $ 19 $ 11 $ 3 $ 4 Other liabilities 151 19 — — Total derivative liabilities (1) $ 170 $ 30 $ 3 $ 4 (1) Estimates of the fair value of all derivative assets and liabilities above are derived from Level 2 inputs, which are 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 input measures and there were no transfers into or out of Level 2 or 3 during 2022 or 2021.

RUSSIAN OPERATIONS (Tables)

RUSSIAN OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following summarizes the costs associated with the suspension of our Russian operations in our Consolidated Statements of Net Income: Year ended In millions December 31, Statement of Net Income Location Inventory write-downs $ 17 Cost of sales Accounts receivable reserves 41 Other operating expense, net Impairment and other joint venture costs 31 Equity, royalty and interest income from investees Other 22 Other operating expense, net Russian suspension costs, net of recoveries $ 111

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summarized financial information regarding our reportable operating segments at December 31, is shown in the table below: In millions Engine Components Distribution Power Systems New Power Total Segments 2022 External sales $ 8,199 $ 7,847 $ 8,901 $ 2,951 $ 176 $ 28,074 Intersegment sales 2,746 1,889 28 2,082 22 6,767 Total sales 10,945 9,736 8,929 5,033 198 34,841 Research, development and engineering expenses 506 309 52 240 171 1,278 Equity, royalty and interest income (loss) from investees 166 (1) 71 77 43 (8) 349 Interest income 14 12 16 7 — 49 Russian suspension costs (2) 33 (3) 5 54 19 — 111 Segment EBITDA 1,541 1,346 (4) 888 596 (340) 4,031 Depreciation and amortization (5) 205 304 114 120 38 781 Net assets 1,451 7,306 2,698 2,382 1,158 14,995 Investments and advances to equity investees 590 617 352 138 60 1,757 Capital expenditures 368 264 114 96 74 916 2021 External sales $ 7,589 $ 5,932 $ 7,742 $ 2,650 $ 108 $ 24,021 Intersegment sales 2,365 1,733 30 1,765 8 5,901 Total sales 9,954 7,665 7,772 4,415 116 29,922 Research, development and engineering expenses 399 307 48 234 102 1,090 Equity, royalty and interest income (loss) from investees 340 50 63 56 (3) 506 Interest income 8 5 7 5 — 25 Segment EBITDA 1,411 1,180 731 496 (223) 3,595 Depreciation and amortization (5) 205 183 116 131 24 659 Net assets 1,554 2,938 2,294 2,251 602 9,639 Investments and advances to equity investees 742 254 329 164 49 1,538 Capital expenditures 341 184 92 80 37 734 2020 External sales $ 5,925 $ 4,650 $ 7,110 $ 2,055 $ 71 $ 19,811 Intersegment sales 2,097 1,374 26 1,576 1 5,074 Total sales 8,022 6,024 7,136 3,631 72 24,885 Research, development and engineering expenses 290 264 31 212 109 906 Equity, royalty and interest income (loss) from investees 312 61 62 21 (4) 452 Interest income 9 4 4 4 — 21 Segment EBITDA 1,235 961 665 343 (172) 3,032 Depreciation and amortization (5) 208 192 122 130 18 670 Capital expenditures 202 140 89 79 18 528 (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 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information. (2) See NOTE 23, "RUSSIAN OPERATIONS," to our 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 $83 million of costs related to the acquisition and integration of Meritor and $28 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 Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs were $3 million, $3 million and $3 million for the years ended 2022, 2021 and 2020, respectively. A portion of depreciation expense is included in research, development and engineering expense.
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Consolidated Statements of Net Income is shown in the table below: Years ended December 31, In millions 2022 2021 2020 TOTAL SEGMENT EBITDA $ 4,031 $ 3,595 $ 3,032 Intersegment eliminations and other (232) (1) (74) 76 Less: Interest expense 199 111 100 Depreciation and amortization 781 659 670 INCOME BEFORE INCOME TAXES 2,819 2,751 2,338 Less: Income tax expense 636 587 527 CONSOLIDATED NET INCOME 2,183 2,164 1,811 Less: Net income attributable to noncontrolling interests 32 33 22 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 2,151 $ 2,131 $ 1,789 (1) Intersegment eliminations and other included $53 million of costs associated with the planned separation of our filtration business.
Reconciliation of segment information from net assets to total assets	A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below: December 31, In millions 2022 2021 Net assets for operating segments $ 14,995 $ 9,639 Cash, cash equivalents and marketable securities 2,573 3,187 Net liabilities deducted in arriving at net segment assets (1) 11,270 9,486 Pension and OPEB adjustments excluded from net segment assets 832 966 Deferred tax assets not allocated to segments 625 428 Deferred debt costs not allocated to segments 4 4 Total assets $ 30,299 $ 23,710 (1) Liabilities deducted in arriving at net segment assets include certain accounts payable, accrued expenses, long-term liabilities and other items.
Long-lived assets attributed to geographic areas	Long-lived segment assets by geographic area were as follows: December 31, In millions 2022 2021 United States $ 4,714 $ 3,978 China 1,052 1,136 India 665 573 United Kingdom 431 384 Mexico 429 195 Netherlands 334 314 Brazil 256 76 Canada 168 163 Other international countries 731 478 Total long-lived assets $ 8,780 $ 7,297

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) Nature of Operations, Acquisition, Revisions, Equity Investments $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) location country	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Real Estate Properties [Line Items]
Company owned and independent distributor locations | location	460
Countries and territories located in | country	190
Reclassification [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 9,967			$ 9,035	$ 8,707	$ 8,407
Redeemable Noncontrolling Interest, Equity, Carrying Amount	258			366
Noncontrolling interests
Reclassification [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	992			889	876	900
Additional paid-in Capital
Reclassification [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,687			1,543	1,617	1,790
Minimum
Real Estate Properties [Line Items]
Dealer locations | location	10,000
Investments in Equity Investees
Percentage of equity method investment ownership	20%
Maximum
Investments in Equity Investees
Percentage of equity method investment ownership	50%
Revision of Prior Period, Error Correction, Adjustment
Reclassification [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		$ 226	$ 392	366	282	58
Revision of Prior Period, Error Correction, Adjustment | Noncontrolling interests
Reclassification [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		27	34	38	51	58
Revision of Prior Period, Error Correction, Adjustment | Additional paid-in Capital
Reclassification [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 199	$ 358	$ 328	$ 231	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) Foreign Currency, Supp. Cash Flow, Allowance, Inventory - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Foreign Currency Transaction Gain (Loss), before Tax	$ (8)	$ 2	$ 4
Cash payments for income taxes, net of refunds	903	521	432
Cash payments for interest, net of capitalized interest	184	111	$ 88
Allowance for doubtful accounts receivable	$ 78	$ 33
Percentage of total inventory values using LIFO	14%	15%

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) PP&E - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment
Depreciation expense on property, plant and equipment	$ 557	$ 514	$ 504
Minimum | Buildings
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	20 years
Minimum | Machinery, equipment and fixtures
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum | Buildings
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	40 years
Maximum | Machinery, equipment and fixtures
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	15 years

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) Goodwill - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill
Goodwill	$ 2,343	$ 1,287	$ 1,293
Axles and Brakes Reporting Unit
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	31%
Automated Transmission
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	23%
Aggregated Emission Solution and Filtration Reporting Unit
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	16%

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) Other Intangibles, Softare and R&D - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Research and Development
Research and development expenses, net of contract reimbursements	$ 1,200	$ 1,100	$ 900
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned	110	104	86
Related Party Transaction, Due from (to) Related Party [Abstract]
Sales to nonconsolidated equity investees	1,200	1,700	1,300
Related Party Transaction, Purchases from Related Party	1,800	1,800	$ 1,300
Accounts Payable, Related Parties	$ 292	$ 227
Minimum | Other Intangible Assets
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	3 years
Minimum | Software
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	2 years
Maximum | Other Intangible Assets
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	25 years
Maximum | Software
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	12 years

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) Government Assistance	12 Months Ended
	Dec. 31, 2022
Minimum
Government Assistance [Line Items]
Government Assistance, Transaction Duration	1 year
Maximum
Government Assistance [Line Items]
Government Assistance, Transaction Duration	6 years

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) Accounting Pronouncements	12 Months Ended
	Dec. 31, 2022
Accounting Standards Update 2021-10
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description	In November 2021, the Financial Accounting Standards Board (FASB) issued a standard related to the disclosure of government assistance received by an entity. Under the new standard, entities are required to disclose (1) the types of assistance received, (2) accounting for the assistance and (3) impact of the assistance in the financial statements. We adopted the new standard on January 1, 2022, on a prospective basis, and it did not have a material impact on our financial statements. See Government Assistance above for additional information.

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ / shares in Units, $ in Millions					3 Months Ended		12 Months Ended
	Nov. 30, 2022 USD ($)	Aug. 03, 2022 USD ($) $ / shares	Apr. 08, 2022 USD ($)	Feb. 07, 2022 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2022 EUR (€)
Business Acquisition [Line Items]
Goodwill					$ 2,343		$ 2,343	$ 1,287	$ 1,293
Investments and advances related to equity method investees (Note 4)					1,759		1,759	1,538
Amortization expense for software and other intangibles							223	144	165
Net sales							28,074	24,021	19,811
Unsecured Debt									500
Net assets					14,995		14,995	9,639
Components
Business Acquisition [Line Items]
Goodwill					1,752		1,752	934	941
Investments and advances related to equity method investees (Note 4)					617		617	254
Net sales							9,736	7,665	6,024
Net assets					7,306		7,306	2,938
New Power
Business Acquisition [Line Items]
Goodwill					495		495	257	257
Investments and advances related to equity method investees (Note 4)					60		60	49
Net sales							198	116	$ 72
Net assets					1,158		1,158	602
Siemens Commercial Vehicles
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100%
Cash paid for business acquisition	$ 187
Payments to Acquire Businesses Liabilities Paid	0
Total purchase consideration	187
Goodwill	70
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	106
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	21
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	3
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue	(3)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	(10)
Amortization expense for software and other intangibles	7
Net sales							2
Income (Loss) from Subsidiaries, Net of Tax							(4)
Siemens Commercial Vehicles | Customer Relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 62
Finite-Lived Intangible Asset, Useful Life	20 years
Siemens Commercial Vehicles | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 28
Finite-Lived Intangible Asset, Useful Life	11 years
Siemens Commercial Vehicles | Trade Names
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 16
Finite-Lived Intangible Asset, Useful Life	17 years
Meritor Inc.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100%
Cash paid for business acquisition		$ 2,613
Payments to Acquire Businesses Liabilities Paid		248
Total purchase consideration		2,861
Goodwill		894
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		1,610
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		750
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		846
Investments and advances related to equity method investees (Note 4)		382
Defined Benefit Plan, Plan Assets, Business Combination		147
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Current and Long-term Assets		322
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		(320)
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, Current and Long-term Liabilities, Other		(595)
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		$ (111)
Business Acquisition, Share Price | $ / shares		$ 36.50
Repayments of Debt						$ 900
Amortization expense for software and other intangibles		$ 142
Net sales							1,900
Income (Loss) from Subsidiaries, Net of Tax							(43)
Business Acquisition, Transaction Costs					30		30
Business Acquisition, Pro Forma Revenue							30,841	27,949
Business Acquisition, Pro Forma Net Income (Loss)							2,196	$ 2,058
Unsecured Debt		2,000
Goodwill, Purchase Accounting Adjustments					$ 44
Meritor Inc. | Rounded Purchase Price Member
Business Acquisition [Line Items]
Total purchase consideration		2,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-Term Debt		(1,000)
Meritor Inc. | Components
Business Acquisition [Line Items]
Goodwill		727
Net assets		3,800
Meritor Inc. | New Power
Business Acquisition [Line Items]
Goodwill		167
Net assets		300
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%
Cash paid for business acquisition			$ 345
Payments to Acquire Businesses Liabilities Paid			0
Total purchase consideration			345
Goodwill			108
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			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			(6)
Amortization expense for software and other intangibles			18
Net sales							118
Income (Loss) from Subsidiaries, Net of Tax							$ (1)
Business Acquisition, Goodwill, Expected Tax Deductible Amount			9
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%
Cash paid for business acquisition				$ 42
Payments to Acquire Businesses Liabilities Paid				0
Total purchase consideration				42
Goodwill				0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles				$ 20
Teksid
Business Acquisition [Line Items]
Other Commitment | €										€ 115

REVENUE RECOGNITION LONG-TERM_3

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRATS AND DEFERRED AND UNBILLED REVENUE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 663
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled revenue	257	$ 100
Deferred revenue, primarily extended warranty	1,848	1,705
Contract with Customer, Liability, Revenue Recognized	639	$ 509
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 123
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 540
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years

REVENUE RECOGNITION DISAGGREG_3

REVENUE RECOGNITION DISAGGREGATION OF REVENUES REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 28,074	$ 24,021	$ 19,811
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	2,995	2,511	1,800
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	2,412	1,978	1,629
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	1,704	1,845	1,441
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	7,111	6,334	4,870
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	1,088	1,255	1,055
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
Net sales	3,086	3,142	2,352
Axles and brakes (CBU business)
Disaggregation of Revenue [Line Items]
Net sales	1,879	0	0
Filtration (CBU business)
Disaggregation of Revenue [Line Items]
Net sales	1,259	1,171	1,005
Turbo technologies (CBU business)
Disaggregation of Revenue [Line Items]
Net sales	806	787	673
Automated Transmission
Disaggregation of Revenue [Line Items]
Net sales	593	481	303
Electronics and Fuel systems (CBU product line)
Disaggregation of Revenue [Line Items]
Net sales	224	351	317
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	3,809	3,136	2,921
Engine (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	1,770	1,493	1,245
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	1,767	1,754	1,686
Service (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	1,555	1,359	1,258
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
Net sales	1,658	1,481	1,155
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
Net sales	843	820	638
Generator technologies (PSBU product lines)
Disaggregation of Revenue [Line Items]
Net sales	450	349	262
Engine
Disaggregation of Revenue [Line Items]
Net sales	10,945	9,954	8,022
Components
Disaggregation of Revenue [Line Items]
Net sales	9,736	7,665	6,024
Distribution
Disaggregation of Revenue [Line Items]
Net sales	8,929	7,772	7,136
Power Systems
Disaggregation of Revenue [Line Items]
Net sales	5,033	4,415	3,631
External Sales | Engine
Disaggregation of Revenue [Line Items]
Net sales	8,199	7,589	5,925
External Sales | Components
Disaggregation of Revenue [Line Items]
Net sales	7,847	5,932	4,650
External Sales | Distribution
Disaggregation of Revenue [Line Items]
Net sales	8,901	7,742	7,110
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
Net sales	2,951	2,650	2,055
UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	15,552	12,489	10,605
CHINA
Disaggregation of Revenue [Line Items]
Net sales	2,390	3,169	2,832
CHINA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	351	323	340
INDIA
Disaggregation of Revenue [Line Items]
Net sales	1,392	1,133	680
INDIA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	217	194	150
OTHER INTERNATIONAL
Disaggregation of Revenue [Line Items]
Net sales	8,740	7,230	5,694
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	5,948	4,902	4,688
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
Net sales	1,011	901	799
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
Net sales	705	647	597
AFRICA and MIDDLE EAST | Distribution
Disaggregation of Revenue [Line Items]
Net sales	227	259	198
CIS | Distribution
Disaggregation of Revenue [Line Items]
Net sales	232	334	191
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	$ 210	$ 182	$ 147

INVESTMENTS IN EQUITY INVESTE_3

INVESTMENTS IN EQUITY INVESTEES (Details 1) Investments in and Earnings from $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) hp l	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Equity, royalty and interest income from investees
Investments and advances to equity method investees	$ 1,759	$ 1,538
Investment account representing cumulative undistributed income in equity investees	851
Dividends from the unconsolidated equity investees	318	336	$ 271
Equity, royalty and interest income from investees	349	506	452
Equity Method Investment, Other than Temporary Impairment	$ 31		13
Equity Method Investment, Realized Gain (Loss) on Disposal			(8)
Ministry of Finance, India
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees			37
Minimum
Equity, royalty and interest income from investees
Ownership percentage	20%
Maximum
Equity, royalty and interest income from investees
Ownership percentage	50%
Royalty and interest income
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees	$ 125	82	74
Komatsu Manufacturing Alliances
Equity, royalty and interest income from investees
Investments and advances to equity method investees	$ 295	275
Komatsu Manufacturing Alliances | Minimum
Equity, royalty and interest income from investees
Ownership percentage	20%
Komatsu Manufacturing Alliances | Maximum
Equity, royalty and interest income from investees
Ownership percentage	50%
Beijing Foton Cummins Engine Company
Equity, royalty and interest income from investees
Ownership percentage	50%
Investments and advances to equity method investees	$ 189	255
Equity, royalty and interest income from investees	$ 37	112	113
Beijing Foton Cummins Engine Company (Light-Duty) | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	2.5
Beijing Foton Cummins Engine Company (Light-Duty) | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	4.5
Beijing Foton Cummins Engine Company (Heavy-Duty) | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	10.5
Beijing Foton Cummins Engine Company (Heavy-Duty) | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	14.5
Sisamex
Equity, royalty and interest income from investees
Ownership percentage	50%
Investments and advances to equity method investees	$ 144	0
Cummins Scania X P I Manufacturing LLC
Equity, royalty and interest income from investees
Ownership percentage	50%
Investments and advances to equity method investees	$ 130	125
Automated Axles Limited
Equity, royalty and interest income from investees
Ownership percentage	36%
Investments and advances to equity method investees	$ 125	0
Chongqing Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Ownership percentage	50%
Investments and advances to equity method investees	$ 118	144
Equity, royalty and interest income from investees	$ 32	39	35
Dongfeng Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Ownership percentage	50%
Investments and advances to equity method investees	$ 106	148
Equity, royalty and interest income from investees	$ 45	82	63
Dongfeng Cummins Engine Company Ltd | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	3.9
Power of mechanical engines (in horsepower) | hp	80
Dongfeng Cummins Engine Company Ltd | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	14.5
Power of mechanical engines (in horsepower) | hp	760
Tata Cummins Ltd
Equity, royalty and interest income from investees
Ownership percentage	50%
Investments and advances to equity method investees	$ 92	88
Equity, royalty and interest income from investees	$ 27	18	19
Tata Cummins Ltd | Ministry of Finance, India
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees			18
Tata Cummins Ltd | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	3.80
Power of mechanical engines (in horsepower) | hp	75
Tata Cummins Ltd | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l	8.9
Power of mechanical engines (in horsepower) | hp	400
Freios Master
Equity, royalty and interest income from investees
Ownership percentage	49%
Investments and advances to equity method investees	$ 86	0
Other Distributors and Manufacturers
Equity, royalty and interest income from investees
Investments and advances to equity method investees	474	503
Manufacturing - All other manufacturers
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees	28	131	115
Manufacturing - All other manufacturers | Ministry of Finance, India
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees			19
Komatsu Cummins Chile Ltda
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees	44	32	31
All other distributors
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees	11	10	2
Cummins' Share of Equity Earnings
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees	224	$ 424	$ 378
Joint venture with KAMAZ
Equity, royalty and interest income from investees
Equity Method Investment, Other than Temporary Impairment	28
Royalty charges
Equity, royalty and interest income from investees
Equity Method Investment, Other than Temporary Impairment	$ 3

INVESTMENTS IN EQUITY INVESTE_4

INVESTMENTS IN EQUITY INVESTEES (Details 2) Equity Investee Financial Summary - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity, royalty and interest income from investees
Net sales	$ 28,074	$ 24,021	$ 19,811
Gross Profit	6,719	5,695	4,894
Net income	2,183	2,164	1,811
Cummins share of net income	2,151	2,131	1,789
Equity, royalty and interest income from investees (Notes 4 and 23)	349	506	452
Assets, Current	14,451	12,309
Liabilities, Current	11,421	7,084
Net assets	14,995	9,639
Cummins share of net assets	1,715	1,490
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Equity, royalty and interest income from investees
Net sales	7,501	8,934	7,794
Gross Profit	1,211	1,574	1,418
Net income	475	802	696
Cummins share of net income	224	424	378
Royalty and interest income	125	82	$ 74
Assets, Current	4,252	4,587
Assets, Noncurrent	1,935	1,850
Liabilities, Current	3,224	3,573
Liabilities, Noncurrent	399	288
Net assets	$ 2,564	$ 2,576

INCOME TAXES (Details 1) Inc. B

INCOME TAXES (Details 1) Inc. Before Taxes, Components of Tax Expense, Rate Recon., Effective Tax rate Discussion - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income before income taxes:
U.S. income	$ 1,336	$ 1,251	$ 1,134
Foreign income	1,483	1,500	1,204
INCOME BEFORE INCOME TAXES	2,819	2,751	2,338
Current:
U.S. federal and state	425	261	162
Foreign	485	319	358
Total current	910	580	520
Deferred:
U.S. federal and state	(229)	(12)	2
Foreign	(45)	19	22
Impact of India tax law changes	0	0	(17)
Total deferred	(274)	7	7
Income tax expense	$ 636	$ 587	$ 527
Reconciliation of the income tax provision
Statutory U.S. federal income tax rate	21%	21%	21%
State income tax, net of federal effect	1.30%	1.10%	1%
Differences in rates and taxability of foreign subsidiaries and joint ventures	3.10%	0.10%	3.60%
Research tax credits	(1.80%)	(0.60%)	(1.30%)
Foreign derived intangible income	(2.00%)	(1.00%)	(1.20%)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	0%	0%	(0.70%)
Other, net	1%	0.70%	0.10%
Effective Income Tax Rate Reconciliation, Percent	22.60%	21.30%	22.50%
Tax Adjustments, Settlements, and Unusual Provisions		$ 9	$ 26
Income Tax Withholding Tax Adjustments	$ (31)		10
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability	(29)	12	33
Valuation allowance adjustments	(15)
Other Tax Expense (Benefit)	(9)	3
Tax costs associated with internal restructuring	69
Income tax provision to return adjustment	15
Cummins share of net income	2,151	2,131	1,789
Operating Loss Carryforwards [Line Items]
Equity, royalty and interest income from investees (Notes 4 and 23)	349	506	452
Income Tax Expense (Benefit)	636	587	527
Net Income (Loss) Attributable to Noncontrolling Interest	(32)	(33)	(22)
Cummins share of net income	2,151	2,131	1,789
Tax Adjustments, Settlements, and Unusual Provisions		$ 9	26
Undistributed Earnings of Foreign Subsidiaries	$ 5,200
Ministry of Finance, India
Reconciliation of the income tax provision
Cummins share of net income			35
Operating Loss Carryforwards [Line Items]
Cummins share of net income			35
Ministry of Finance, India
Deferred:
Income tax expense			(17)
Reconciliation of the income tax provision
Tax Adjustments, Settlements, and Unusual Provisions			15
Cummins share of net income			35
Operating Loss Carryforwards [Line Items]
Equity, royalty and interest income from investees (Notes 4 and 23)			37
Income Tax Expense (Benefit)			(17)
Net Income (Loss) Attributable to Noncontrolling Interest			(19)
Cummins share of net income			35
Tax Adjustments, Settlements, and Unusual Provisions			$ 15

INCOME TAXES (Details 2) Carryf

INCOME TAXES (Details 2) Carryforward Deferred Tax Asset/Liability, BS Disclosure, Recon. of Unrecognized Tax Benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
U.S. and state carryforward benefits	$ 272	$ 218
Foreign carryforward benefits	527	177
Employee benefit plans	258	254
Warranty expenses	458	445
Lease liabilities	110	108
Capitalized research and development expenditures	238	0
Accrued expenses	174	111
Other	126	74
Gross deferred tax assets	2,163	1,387
Valuation allowance	(704)	(360)
Deferred Tax Assets, Net of Valuation Allowance	1,459	1,027
Deferred tax liabilities:
Property, plant and equipment	(369)	(272)
Unremitted income of foreign subsidiaries and joint ventures	(210)	(197)
Employee benefit plans	(311)	(355)
Lease assets	(108)	(105)
Deferred Tax Liabilities, Intangible Assets	(435)	(44)
Other	(50)	(29)
Deferred Tax Liabilities, Gross	1,483	1,002
Deferred Tax Liabilities, Net	(24)
Deferred Tax Assets, Net		25
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	344
Balance Sheet Related Disclosures
Refundable income taxes	83	101
Deferred income taxes	625	428
Long-term refundable income taxes	14	0
Taxes Payable, Current	173	107
Taxes Payable, Non-Current	192	263
Deferred Tax Liabilities, Net	649	403
Reconciliation of unrecognized tax benefits
Beginning balance	89	122	$ 77
Unrecognized Tax Benefits, Increase Resulting from Acquisition	189	0	0
Additions to current year tax positions	17	11	9
Additions to prior years' tax positions	17	16	49
Reductions to prior years' tax positions	(1)	(28)	(13)
Reductions for tax positions due to settlements with taxing authorities	(28)	(32)	0
Ending balance	283	89	122
Unrecognized tax benefits that would impact effective tax rate	270	85	114
Unrecognized tax benefits, interest accrued	$ 18	$ 15	$ 17

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule of Available-for-sale Securities
Debt Securities, Available-for-sale, Amortized Cost	$ 2	$ 1
Debt Securities, Available-for-sale, Unrealized Gain (Loss)	0	0
Debt Securities, Available-for-sale	2	1
Debt Securities, Trading, and Equity Securities, FV-NI, Cost	474	583
Marketable Securities, Unrealized Gain (Loss)	(2)	12
Marketable securities	472	595
Proceeds from Sale of Held-to-maturity Securities	750	494	$ 343
Proceeds from maturities of marketable securities	401	179	126
Proceeds from Sale and Maturity of Marketable Securities	1,151	673	$ 469
Certificates of Deposit
Schedule of Available-for-sale Securities
Equity Securities, cost	209	299
Equity Securities, Fair Value	209	299
Debt mutual funds
Schedule of Available-for-sale Securities
Equity Securities, cost	238	254
Equity Securities, Unrealized Gain (Loss)	(5)	2
Equity Securities, Fair Value	233	256
Equity Mutual Funds
Schedule of Available-for-sale Securities
Equity Securities, cost	25	29
Equity Securities, Unrealized Gain (Loss)	3	10
Equity Securities, Fair Value	$ 28	$ 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	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished products	$ 2,917	$ 2,538
Work-in-process and raw materials	2,926	2,009
Inventories at FIFO cost	5,843	4,547
Excess of FIFO over LIFO	(240)	(192)
Total inventories	$ 5,603	$ 4,355

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment
Property, plant and equipment, gross	$ 10,507	$ 9,358
Accumulated depreciation	(4,986)	(4,936)
Property, plant and equipment, net	5,521	4,422
Land and buildings
Property, Plant and Equipment
Property, plant and equipment, gross	2,908	2,632
Machinery, equipment and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	6,598	5,910
Construction in process
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,001	$ 816

LEASES FOOTNOTE DISCLOSURE LE_3

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Details 1)	Dec. 31, 2022
Real Estate | Minimum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	2 years
Real Estate | Maximum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	50 years
Lessee, Operating Lease, Renewal Term	10 years
Equipment | Minimum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	2 years
Equipment | Maximum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	3 years

LEASES FOOTNOTE DISCLOSURE LE_4

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Cost
Operating Lease, Cost	$ 160	$ 172	$ 172
Finance Lease, Right-of-Use Asset, Amortization	19	16	18
Finance Lease, Interest Expense	4	4	4
Short-term Lease, Cost	23	18	19
Variable Lease, Cost	12	11	12
Lease, Cost	218	221	225
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	492	444
Total leased assets	609	539
Current portion of operating lease liabilities	132	128
Operating lease liabilities, long-term	368	326
Total Lease Liabilities	613	543
Finance Lease, Right-of-Use Asset, Accumulated Amortization	78	66
Lessee, Lease, Supplemental Cash Flow Information
Operating cash flows from operating leases	151	159	149
Operating cash flows from finance leases	4	4	4
Financing cash flows from finance leases	16	14	14
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	148	160	97
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability	$ 29	$ 13	$ 19
Lessee, Lease, Other Information
Operating Lease, Weighted Average Remaining Lease Term	5 years 4 months 24 days	5 years 1 month 6 days
Finance Lease, Weighted Average Remaining Lease Term	7 years 10 months 24 days	9 years 9 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent	3.70%	2.80%
Finance Lease, Weighted Average Discount Rate, Percent	4.70%	3.90%
Lessee, Lease, Financing
2023	$ 37
2024	16
2025	13
2026	10
2027	9
After 2027	53
Total minimum lease payments	138
Finance Lease, Liability, Undiscounted Excess Amount	(25)
Present value of net minimum lease payments	113	$ 89
Lessee, Lease, Operating
2023	145
2024	118
2025	93
2026	62
2027	45
After 2027	94
Total minimum lease payments	557
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(57)
Operating Lease, Liability	500
Other assets
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	492	444
Property, plant and equipment, net
Lessee, Lease, Description [Line Items]
Finance Lease, Right-of-Use Asset	117	95
Other accrued expenses
Lessee, Lease, Description [Line Items]
Current portion of operating lease liabilities	132	128
Current maturities of long-term debt
Lessee, Lease, Description [Line Items]
Finance Lease, Liability, Current	32	14
Other liabilities
Lessee, Lease, Description [Line Items]
Operating lease liabilities, long-term	368	326
Long-term debt
Lessee, Lease, Description [Line Items]
Finance Lease, Liability, noncurrent	$ 81	$ 75

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) Goodwill rollforward - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 1,287	$ 1,293
Acquisitions	1,072	2
Translation and other	(16)	(8)
Balance at end of period	2,343	1,287
Components
Changes in the carrying amount of goodwill
Balance at beginning of period	934	941
Acquisitions	835	0
Translation and other	(17)	(7)
Balance at end of period	1,752	934
New Power
Changes in the carrying amount of goodwill
Balance at beginning of period	257	257
Acquisitions	237	0
Translation and other	1	0
Balance at end of period	495	257
Distribution
Changes in the carrying amount of goodwill
Balance at beginning of period	79	79
Acquisitions	0	0
Translation and other	0	0
Balance at end of period	79	79
Power Systems
Changes in the carrying amount of goodwill
Balance at beginning of period	11	10
Acquisitions	0	2
Translation and other	0	(1)
Balance at end of period	11	11
Engine
Changes in the carrying amount of goodwill
Balance at beginning of period	6	6
Acquisitions	0	0
Translation and other	0	0
Balance at end of period	$ 6	$ 6

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) Intangible Assets and Projected Amortization - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite Lived Intangible Assets
Intangible asset, Net	$ 2,687	$ 900
Amortization expense for software and other intangibles	223	144	$ 165
Projected amortization expense
2023	315
2024	304
2025	274
2026	252
2027	231
Software
Finite Lived Intangible Assets
Intangible Assets Gross (software and other intangibles)	679	586
Less: Accumulated amortization	(410)	(314)
Intangible asset, Net	269	272
Other Intangible Assets
Finite Lived Intangible Assets
Intangible Assets Gross (software and other intangibles)	2,858	957
Less: Accumulated amortization	(440)	(329)
Intangible asset, Net	$ 2,418	$ 628

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 1) -Obligations, Assets and Funded Status $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) country	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Amounts recognized in consolidated balance sheets
Pension assets	$ 1,398	$ 1,488
Liability, Defined Benefit Pension Plan, Noncurrent	(445)	(431)
Other Pension Plan
Change in plan assets
Employer contributions	$ 12	13
Less Significant Defined Benefit or Other Postretirement Plans Applicable to Number of Countries | country	14
Maximum Percentage of Defined Benefit Plans Assets Included in Other Liabilities and Deferred Revenue	4%
Maximum Percentage of Defined Benefit Plans, Obligations Included in Other Liabilities and Deferred Revenue	5%
Other Postretirement Benefit Plan
Change in benefit obligation
Benefit obligation at the beginning of the year	$ 192	219
Interest cost	5	5	$ 7
Plan participants' contributions	4	14
Actuarial gain	(25)	(8)
Benefits paid directly by employer or from fund	(36)	(38)
Assumption of Meritor's benefit obligation	22
Benefit obligation at the end of the year	$ 162	$ 192	219
Change in plan assets
Less Significant Defined Benefit or Other Postretirement Plans Applicable to Number of Countries | country	5
Maximum Percentage of Defined Benefit Plans, Obligations Included in Other Liabilities and Deferred Revenue	14%	8%
Funded status
Funded status at end of year	$ (162)	$ (192)
Amounts recognized in consolidated balance sheets
Accrued compensation, benefits and retirement costs	(21)	(19)
Liability, Other Postretirement Defined Benefit Plan, Noncurrent	(141)	(173)
Net amount recognized	(162)	(192)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)	(44)	(18)
Prior service cost (credit)	(3)	(4)
Net amount recognized	(47)	(22)
UNITED KINGDOM
Change in benefit obligation
Benefit obligation at the beginning of the year	1,887	2,050
Service cost	30	33	29
Interest cost	39	30	36
Actuarial gain	(702)	(136)
Benefits paid directly by employer or from fund	(70)	(63)
Plan amendment	0	0
Assumption of Meritor's benefit obligation	418	0
Exchange rate changes	(204)	(27)
Benefit obligation at the end of the year	1,398	1,887	2,050
Change in plan assets
Fair value of plan assets at the beginning of the year	2,390	2,337
Actual return on plan assets	(960)	118
Employer contributions	3	30
Benefits paid from Fund	(70)	(63)
Defined Benefit Plan, Plan Assets, Business Combination	565	0
Exchange rate changes	(258)	(32)
Fair value of plan assets at the end of the year	1,670	2,390	2,337
Funded status
Funded status at end of year	272	503
Amounts recognized in consolidated balance sheets
Pension assets	272	503
Accrued compensation, benefits and retirement costs	0	0
Liability, Defined Benefit Pension Plan, Noncurrent	0	0
Net amount recognized	272	503
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)	402	61
Prior service cost (credit)	10	11
Net amount recognized	412	72
UNITED STATES
Change in benefit obligation
Benefit obligation at the beginning of the year	3,012	3,122
Service cost	137	139	133
Interest cost	101	79	95
Actuarial gain	(643)	(132)
Benefits paid directly by employer or from fund	(200)	(178)
Plan amendment	3	0
Assumption of Meritor's benefit obligation	786	0
Benefit obligation at the end of the year	3,171	3,012	3,122
Change in plan assets
Fair value of plan assets at the beginning of the year	3,548	3,429
Actual return on plan assets	(244)	267
Employer contributions	25	30
Benefits paid from Fund	(200)	(178)
Defined Benefit Plan, Plan Assets, Business Combination	699	0
Exchange rate changes	0	0
Fair value of plan assets at the end of the year	3,828	3,548	$ 3,429
Funded status
Funded status at end of year	657	536
Amounts recognized in consolidated balance sheets
Pension assets	1,126	985
Accrued compensation, benefits and retirement costs	(24)	(18)
Liability, Defined Benefit Pension Plan, Noncurrent	(445)	(431)
Net amount recognized	657	536
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)	273	467
Prior service cost (credit)	8	6
Net amount recognized	281	473
UNITED STATES | Nonqualified Plan
Change in benefit obligation
Benefits paid directly by employer or from fund	$ (25)	$ (18)

PENSION AND OTHER POSTRETIREM_4

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 2) - Components of Net Periodic Pension Cost - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Pension Plan
Changes in benefit obligations and plan assets recognized in other comprehensive income
Amortization of prior service cost	$ (2)	$ (3)	$ (3)
Recognized actuarial (loss) gain	(26)	(78)	(75)
Incurred prior service cost	3	0	0
Incurred actuarial loss (gain)	173	(368)	85
Foreign currency translation adjustments		5	19
Total recognized in other comprehensive loss (income)	148	(444)	26
Total recognized in net periodic pension cost and other comprehensive loss (income)	167	(366)	128
Other Postretirement Benefit Plan
Components of Net Periodic Benefit Cost
Interest cost	5	5	7
Recognized net actuarial loss (gain)	0	0	(1)
Defined Benefit Plan and OPEB, Net Periodic Benefit Cost (Credit), Total	5	5	6
Changes in benefit obligations and plan assets recognized in other comprehensive income
Recognized actuarial (loss) gain	0		1
Incurred actuarial loss (gain)	(25)	(8)	14
Total recognized in other comprehensive loss (income)	(25)	(8)	15
Total recognized in net periodic pension cost and other comprehensive loss (income)	(20)	(3)	21
UNITED STATES
Pension and other postretirement benefits
Defined Benefit Plan, Accumulated Benefit Obligation	3,138	2,986
Plans with accumulated benefit obligation in excess of plan assets:
ABO	1,044	424
Plans with projected benefit obligation in excess of plan assets:
PBO	1,078	449
Components of Net Periodic Benefit Cost
Service cost	137	139	133
Interest cost	101	79	95
Expected return on plan assets	(229)	(199)	(195)
Amortization of prior service cost	1	1	1
Recognized net actuarial loss (gain)	23	47	41
Defined Benefit Plan and OPEB, Net Periodic Benefit Cost (Credit), Total	33	67	75
Changes in benefit obligations and plan assets recognized in other comprehensive income
Foreign currency translation adjustments	0	0
UNITED KINGDOM
Pension and other postretirement benefits
Defined Benefit Plan, Accumulated Benefit Obligation	1,376	1,844
Components of Net Periodic Benefit Cost
Service cost	30	33	29
Interest cost	39	30	36
Expected return on plan assets	(87)	(85)	(74)
Amortization of prior service cost	1	2	2
Recognized net actuarial loss (gain)	3	31	34
Defined Benefit Plan and OPEB, Net Periodic Benefit Cost (Credit), Total	(14)	11	$ 27
Changes in benefit obligations and plan assets recognized in other comprehensive income
Foreign currency translation adjustments	$ (258)	$ (32)

PENSION AND OTHER POSTRETIREM_5

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 3) - Assumptions and Plan Asset Targets		12 Months Ended
	Jan. 01, 2023 Rate	Dec. 31, 2022 Rate	Dec. 31, 2021 Rate	Dec. 31, 2020 Rate
Other Postretirement Benefit Plan
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		5.59%	2.75%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		2.93%	2.30%	3.15%
Defined Benefit Plan, Assumed Health Care Cost Trend Rates
Annual rate of increase in the per capita cost of covered health care benefits		6.75%
UNITED STATES
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		5.55%	3.01%
Cash balance crediting rate		4.56%	3.79%
Compensation increase rate (as a percent)		5.35%	2.71%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		3.31%	2.62%	3.36%
Expected return on plan assets (as a percent)		6.50%	6.25%	6.25%
Compensation increase rate (as a percent)		2.71%	2.72%	2.73%
UNITED STATES | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		100%
Asset allocation covers exposure to changes in portion of discount rate (as a percent)		100%
UNITED STATES | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		100%
UNITED STATES | U.S. equities | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5%
UNITED STATES | U.S. equities | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		11%
UNITED STATES | Non-U.S. Equity | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		1%
UNITED STATES | Non-U.S. Equity | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		9%
UNITED STATES | Global Equities | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		6%
UNITED STATES | Global Equities | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
UNITED STATES | Equity Securities | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		12%
UNITED STATES | Equity Securities | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		20%
UNITED STATES | Real Assets | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		6%
UNITED STATES | Real Assets | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
UNITED STATES | Private Markets | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		6%
UNITED STATES | Private Markets | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
UNITED STATES | Opportunistic credit | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		4%
UNITED STATES | Opportunistic credit | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
UNITED STATES | Alternative Investments | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
UNITED STATES | Alternative Investments | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		39%
UNITED STATES | Fixed Income Funds | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		72%
UNITED STATES | Fixed Income Funds | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		41%
UNITED KINGDOM
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		4.99%	1.95%
Cash balance crediting rate		0%	0%
Compensation increase rate (as a percent)		3.75%	3.75%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		2.26%	1.50%	2%
Expected return on plan assets (as a percent)		4.01%	4%	4%
Compensation increase rate (as a percent)		3.75%	3.75%	3.75%
UNITED KINGDOM | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		100%
UNITED KINGDOM | Global Equities | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		8%
UNITED KINGDOM | Real Assets | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
UNITED KINGDOM | Private Markets | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		19%
UNITED KINGDOM | Fixed Income Funds | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		64%
Hedged Exposure to Interest Rates		15%
Hedged Exposure to Inflation		30%
UNITED KINGDOM | Fixed Income Funds | Meritor Inc.
Target Allocations
Hedged Exposure to Interest Rates		100%
Hedged Exposure to Inflation		100%
UNITED KINGDOM | Credit | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		4%
UNITED KINGDOM | Diversified strategies | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		4%
UNITED KINGDOM | Cash | Cummins
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		1%
UNITED KINGDOM | Insurance | Cummins
Target Allocations
Hedged Exposure to Interest Rates		21%
Hedged Exposure to Inflation		18%
UNITED KINGDOM | Insurance | Meritor Inc.
Target Allocations
Hedged Exposure to Interest Rates		100%
Hedged Exposure to Inflation		100%
Minimum | UNITED KINGDOM | Global Equities | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		15%
Minimum | UNITED KINGDOM | Real Assets | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
Minimum | UNITED KINGDOM | Private Markets | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
Minimum | UNITED KINGDOM | Fixed Income Funds | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		25%
Minimum | UNITED KINGDOM | Credit | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
Minimum | UNITED KINGDOM | Diversified strategies | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		25%
Minimum | UNITED KINGDOM | Cash | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
Maximum | UNITED KINGDOM | Global Equities | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		30%
Maximum | UNITED KINGDOM | Real Assets | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		15%
Maximum | UNITED KINGDOM | Private Markets | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
Maximum | UNITED KINGDOM | Fixed Income Funds | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		45%
Maximum | UNITED KINGDOM | Credit | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		15%
Maximum | UNITED KINGDOM | Diversified strategies | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		50%
Maximum | UNITED KINGDOM | Cash | Meritor Inc.
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		0%
Scenario, Forecast | Other Postretirement Benefit Plan
Defined Benefit Plan, Assumed Health Care Cost Trend Rates
Ultimate per capita trend rate for health care costs	5%
Scenario, Forecast | UNITED STATES | Cummins
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Expected return on plan assets (as a percent)	7%
Scenario, Forecast | UNITED STATES | Meritor Inc.
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Expected return on plan assets (as a percent)	7%
Scenario, Forecast | UNITED KINGDOM
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Expected return on plan assets (as a percent)	5%

PENSION AND OTHER POSTRETIREM_6

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 4) - Fair Value of Plan Assets - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
UNITED STATES
Pension and other postretirement benefits
Fair value of plan assets	$ 3,828	$ 3,548	$ 3,429
Pending Trade Purchases, Sales		2
Accrued Investment Income Receivable	7	6
UNITED STATES | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	118	115
UNITED STATES | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	31	38
UNITED STATES | Government debt
Pension and other postretirement benefits
Fair value of plan assets	188	67
UNITED STATES | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	423	489
UNITED STATES | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	53	19
UNITED STATES | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	7
UNITED STATES | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	508	327
UNITED STATES | Diversified Strategies
Pension and other postretirement benefits
Fair value of plan assets	14
UNITED STATES | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	641	551
UNITED STATES | Fair Value, Inputs, Level 1
Pension and other postretirement benefits
Fair value of plan assets	681	460
UNITED STATES | Fair Value, Inputs, Level 1 | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	118	115
UNITED STATES | Fair Value, Inputs, Level 1 | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	31	38
UNITED STATES | Fair Value, Inputs, Level 1 | Government debt
Pension and other postretirement benefits
Fair value of plan assets		37
UNITED STATES | Fair Value, Inputs, Level 1 | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	12
UNITED STATES | Fair Value, Inputs, Level 1 | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	7
UNITED STATES | Fair Value, Inputs, Level 1 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	499	270
UNITED STATES | Fair Value, Inputs, Level 1 | Diversified Strategies
Pension and other postretirement benefits
Fair value of plan assets	14
UNITED STATES | Significant other observable inputs Level 2
Pension and other postretirement benefits
Fair value of plan assets	661	595
UNITED STATES | Significant other observable inputs Level 2 | Government debt
Pension and other postretirement benefits
Fair value of plan assets	188	30
UNITED STATES | Significant other observable inputs Level 2 | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	423	489
UNITED STATES | Significant other observable inputs Level 2 | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	41	19
UNITED STATES | Significant other observable inputs Level 2 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	9	57
UNITED STATES | Fair Value, Inputs, Level 3
Pension and other postretirement benefits
Fair value of plan assets	641	551	431
UNITED STATES | Fair Value, Inputs, Level 3 | Real Assets
Pension and other postretirement benefits
Fair value of plan assets	82	80	72
UNITED STATES | Fair Value, Inputs, Level 3 | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	641	551
UNITED STATES | Fair Value, Inputs, Level 1, 2 and 3
Pension and other postretirement benefits
Fair value of plan assets	1,983	1,606
UNITED STATES | Fair Value Measured at Net Asset Value Per Share
Pension and other postretirement benefits
Fair value of plan assets	1,838	1,934
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Government debt
Pension and other postretirement benefits
Fair value of plan assets	227	361
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	277	262
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Diversified Strategies
Pension and other postretirement benefits
Fair value of plan assets	18
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	938	995
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Global Equities
Pension and other postretirement benefits
Fair value of plan assets	224	145
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Real Assets
Pension and other postretirement benefits
Fair value of plan assets	154	171
UNITED KINGDOM
Pension and other postretirement benefits
Fair value of plan assets	1,670	2,390	2,337
Pending Trade Purchases, Sales	141
Accrued Investment Income Receivable	2
UNITED KINGDOM | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	13	79
UNITED KINGDOM | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	9	74
UNITED KINGDOM | Government debt
Pension and other postretirement benefits
Fair value of plan assets	222
UNITED KINGDOM | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	24
UNITED KINGDOM | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	80
UNITED KINGDOM | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	38	35
UNITED KINGDOM | Insurance
Pension and other postretirement benefits
Fair value of plan assets	428	514
UNITED KINGDOM | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	390	389
UNITED KINGDOM | Fair Value, Inputs, Level 1
Pension and other postretirement benefits
Fair value of plan assets	49	35
UNITED KINGDOM | Fair Value, Inputs, Level 1 | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	13
UNITED KINGDOM | Fair Value, Inputs, Level 1 | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	9
UNITED KINGDOM | Fair Value, Inputs, Level 1 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	27	35
UNITED KINGDOM | Significant other observable inputs Level 2
Pension and other postretirement benefits
Fair value of plan assets	337	153
UNITED KINGDOM | Significant other observable inputs Level 2 | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets		79
UNITED KINGDOM | Significant other observable inputs Level 2 | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets		74
UNITED KINGDOM | Significant other observable inputs Level 2 | Government debt
Pension and other postretirement benefits
Fair value of plan assets	222
UNITED KINGDOM | Significant other observable inputs Level 2 | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	24
UNITED KINGDOM | Significant other observable inputs Level 2 | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	80
UNITED KINGDOM | Significant other observable inputs Level 2 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	11
UNITED KINGDOM | Fair Value, Inputs, Level 3
Pension and other postretirement benefits
Fair value of plan assets	818	903	838
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Real Assets
Pension and other postretirement benefits
Fair value of plan assets	8	33	31
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Insurance
Pension and other postretirement benefits
Fair value of plan assets	428	514	$ 556
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	390	389
UNITED KINGDOM | Fair Value, Inputs, Level 1, 2 and 3
Pension and other postretirement benefits
Fair value of plan assets	1,204	1,091
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share
Pension and other postretirement benefits
Fair value of plan assets	323	1,299
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Government debt
Pension and other postretirement benefits
Fair value of plan assets	64
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	128	99
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Diversified Strategies
Pension and other postretirement benefits
Fair value of plan assets	0	51
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	77	894
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Global Equities
Pension and other postretirement benefits
Fair value of plan assets	0	194
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Reinsurance
Pension and other postretirement benefits
Fair value of plan assets	$ 54	$ 61

PENSION AND OTHER POSTRETIREM_7

PENSION AND OTHER POSTRETIREMENT BENEFITS - (Details 5 ) - Level 3 Fair Value Reconciliation - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
UNITED STATES
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	$ 3,828	$ 3,548	$ 3,429
Defined Benefit Plan, Plan Assets, Business Combination	699	0
UNITED STATES | Fair Value, Inputs, Level 3
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	641	551	431
Unrealized gains (losses) on assets still held at the reporting date	25	155
Purchases, sales and settlements, net	(29)	(35)
Defined Benefit Plan, Plan Assets, Business Combination	94
UNITED STATES | Fair Value, Inputs, Level 3 | Private Markets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	559	471	359
Unrealized gains (losses) on assets still held at the reporting date	6	144
Purchases, sales and settlements, net	(12)	(32)
Defined Benefit Plan, Plan Assets, Business Combination	94
UNITED STATES | Fair Value, Inputs, Level 3 | Real Assets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	82	80	72
Unrealized gains (losses) on assets still held at the reporting date	19	11
Purchases, sales and settlements, net	(17)	(3)
Defined Benefit Plan, Plan Assets, Business Combination	0
UNITED KINGDOM
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	1,670	2,390	2,337
Defined Benefit Plan, Plan Assets, Business Combination	565	0
UNITED KINGDOM | Insurance
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	428	514
UNITED KINGDOM | Fair Value, Inputs, Level 3
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	818	903	838
Unrealized gains (losses) on assets still held at the reporting date	(141)	74
Purchases, sales and settlements, net	(36)	(9)
Defined Benefit Plan, Plan Assets, Business Combination	92
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Private Markets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	382	356	251
Unrealized gains (losses) on assets still held at the reporting date	39	114
Purchases, sales and settlements, net	(13)	(9)
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Real Assets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	8	33	31
Unrealized gains (losses) on assets still held at the reporting date	(2)	2
Purchases, sales and settlements, net	(23)	0
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Insurance
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	428	514	$ 556
Unrealized gains (losses) on assets still held at the reporting date	(178)	(42)
Purchases, sales and settlements, net	0	$ 0
Defined Benefit Plan, Plan Assets, Business Combination	$ 92

PENSION AND OTHER POSTRETIREM_8

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 6) - Defined Benefits Plan Tables - Scenario, Forecast $ in Millions	Jan. 01, 2023 USD ($)
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year	$ 106
Expected benefit payments
2023	367
2024	351
2025	357
2026	361
2027	363
2028 - 2032	1,841
Other Postretirement Benefit Plan
Expected benefit payments
2023	22
2024	20
2025	19
2026	17
2027	16
2028 - 2032	$ 64

PENSION AND OTHER POSTRETIREM_9

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 7) - Contribution Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Pension Plan
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Cost	$ 110	$ 92	$ 85

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Deferred income taxes	$ 625	$ 428
Operating lease assets	492	444
Corporate owned life insurance	390	492
Other Assets, Miscellaneous, Noncurrent	633	402
Other assets	2,140	1,766
Marketing accruals	316	303
Other taxes payable	224	234
Income taxes payable	173	107
Current portion of operating lease liabilities	132	128
Other Accrued Liabilities, Current	620	418
Other accrued expenses	1,465	1,190
Long-term portion of accrued product warranty	744	684
Deferred income taxes	649	403
Pensions	445	431
Operating lease liabilities	368	326
Long-term income taxes	192	263
Accrued compensation	184	177
Mark-to-market valuation on interest rate derivatives	151	19
Other postretirement benefits	141	173
Other liabilities	437	320
Other liabilities	$ 3,311	$ 2,796

DEBT (Details)

DEBT (Details) $ in Millions			3 Months Ended	12 Months Ended
	Aug. 17, 2022 USD ($)	Aug. 18, 2021 USD ($)	Dec. 31, 2022 USD ($) Rate	Dec. 31, 2022 USD ($) Rate	Dec. 31, 2021 USD ($) Rate	Dec. 31, 2020 USD ($)	Jul. 13, 2022 USD ($)
Debt Instruments
Loans payable			$ 210	$ 210	$ 208
Weighted average interest rate (as a percent) | Rate			4.02%	4.02%	2.71%
Commercial paper			$ 2,574	$ 2,574	$ 313
Line of Credit Facility, Maximum Borrowing Capacity			$ 4,000	$ 4,000
Leverage ratio			0.65	0.65
Line of credit facility, remaining borrowing capacity			$ 1,400	$ 1,400
Unsecured Debt						$ 500
Other Long-term Debt			121	121	110
Unamortized discount			(64)	(64)	(68)
Liabilities, Fair Value Adjustment				(122)	34
Finance Lease, Liability			113	113	89
Total long-term debt			5,071	5,071	3,638
Less: Current maturities of long-term debt			573	573	59
Long-term debt			4,498	4,498	3,579
Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security				1,550	73	73
Principal payments required on long-term debt
2023			573	573
2024			44	44
2025			2,061	2,061
2026			56	56
2027			64	64
Total interest incurred				204	113	102
Interest capitalized				5	2	$ 2
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			4,000	4,000
Fair value
Fair value of total debt			7,400	7,400	4,461
Carrying value of total debt			7,855	$ 7,855	4,159
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Principal payments required on long-term debt
Debt Instrument, Description of Variable Rate Basis				SOFR
EUROPE
Debt Instruments
Commercial paper			107	$ 107	113
UNITED STATES
Debt Instruments
Commercial paper			2,500	2,500	200
Senior Notes, 3.65%, due 2023
Debt Instruments
Unsecured Debt			$ 500	$ 500	500
Debt instrument interest rate (as a percent) | Rate			3.65%	3.65%
Term Loan Due 2025
Debt Instruments
Unsecured Debt			$ 1,550	$ 1,550			$ 2,000
Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security			450
Senior Notes 0.75 Percent, Due 2025
Debt Instruments
Unsecured Debt			$ 500	$ 500	500
Debt instrument interest rate (as a percent) | Rate			0.75%	0.75%
Debentures, 6.75%, due 2027
Debt Instruments
Unsecured Debt			$ 58	$ 58	58
Debt instrument interest rate (as a percent) | Rate			6.75%	6.75%
Debentures, 7.125%, due 2028
Debt Instruments
Unsecured Debt			$ 250	$ 250	250
Debt instrument interest rate (as a percent) | Rate			7.125%	7.125%
Senior Notes 1.50 Percent, Due 2030
Debt Instruments
Unsecured Debt			$ 850	$ 850	850
Debt instrument interest rate (as a percent) | Rate			1.50%	1.50%
Senior Notes 4.875 Percent, Due 2043
Debt Instruments
Unsecured Debt			$ 500	$ 500	500
Debt instrument interest rate (as a percent) | Rate			4.875%	4.875%
Senior Notes 2.60 Percent, Due 2050
Debt Instruments
Unsecured Debt			$ 650	$ 650	650
Debt instrument interest rate (as a percent) | Rate			2.60%	2.60%
Debentures, 5.65%, due 2098 (effective interest rate 7.48%)
Debt Instruments
Unsecured Debt			$ 165	$ 165	$ 165
Effective interest rate (as a percent) | Rate			7.48%	7.48%
Debt instrument interest rate (as a percent) | Rate			5.65%	5.65%
Filtration Facilities
Debt Instruments
Debt instrument interest rate (as a percent)			0.10%	0.10%
Principal payments required on long-term debt
Debt Instrument, Unused Borrowing Capacity, Amount			$ 1,000	$ 1,000
Filtration Facilities | Minimum
Debt Instruments
Percentage added to reference rate to compute the variable interest rate				1.125%
Short-term Debt [Line Items]
Percentage added to reference rate to compute the variable interest rate				1.125%
Filtration Facilities | Maximum
Debt Instruments
Percentage added to reference rate to compute the variable interest rate				1.75%
Short-term Debt [Line Items]
Percentage added to reference rate to compute the variable interest rate				1.75%
Filtration revolving credit facility
Principal payments required on long-term debt
Debt Instrument, Unused Borrowing Capacity, Amount			400	$ 400
Filtration term loan facility
Principal payments required on long-term debt
Debt Instrument, Unused Borrowing Capacity, Amount			$ 600	$ 600
Commercial Paper
Debt Instruments
Weighted average interest rate (as a percent) | Rate			4.27%	4.27%	(0.01%)
Line of Credit Facility, Maximum Borrowing Capacity			$ 4,000	$ 4,000
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 4,000	$ 4,000
Commercial Paper | EUROPE
Debt Instruments
Weighted average interest rate (as a percent) | Rate			1.86%	1.86%	(0.39%)
Commercial Paper | UNITED STATES
Debt Instruments
Weighted average interest rate (as a percent) | Rate			4.38%	4.38%	0.21%
International and other domestic short-term credit facilities
Debt Instruments
Line of credit facility, remaining borrowing capacity			$ 226	$ 226
1-year revolving credit agreement
Debt Instruments
Debt Instrument, Term	364 days	364 days
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500	$ 1,500
Short-term Debt [Line Items]
Debt Instrument, Term	364 days	364 days
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500	$ 1,500
Incremental Domestic Line of Credit
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity	500
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 500
5-year revolving credit agreement
Debt Instruments
Debt Instrument, Term		5 years
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases		$ 300
Percentage added to reference rate to compute the variable interest rate				0.85%
LIBOR to SOFR adjustment				0.10%
Short-term Debt [Line Items]
Debt Instrument, Term		5 years
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases		$ 300
Percentage added to reference rate to compute the variable interest rate				0.85%

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Liability Reconciliation, Warranty Related to Deferred Revenues - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Product Warranty Liability:
Balance, beginning of year	$ 2,425	$ 2,307	$ 2,389
Provision for warranties issued	515	503	443
Deferred revenue on extended warranty contracts sold	287	288	248
Provision for product campaigns issued	141	346	90
Payments made during period	(596)	(530)	(589)
Amortization of deferred revenue on extended warranty contracts	(298)	(260)	(227)
Changes in estimates for pre-existing warranties	(128)	(228)	(52)
Acquisitions	147	0	0
Foreign currency translation adjustments and other	(16)	(1)	5
Balance, end of period	2,477	2,425	2,307
Product Warranty Liability [Line Items]
Product Liability Contingency, Third Party Recovery	39	170	$ 20
Current portion of deferred revenue	1,004	855
Long-term portion of deferred revenue	844	850
Deferred revenue related to extended coverage	1,007	986
Current portion of accrued product warranty	726	755
Long-term portion of accrued product warranty	744	684
Standard Product Warranty Accrual	1,470	1,439
Current portion of deferred revenue
Product Warranty Liability [Line Items]
Current portion of deferred revenue	290	286
Deferred revenue
Product Warranty Liability [Line Items]
Long-term portion of deferred revenue	717	700
Current portion of accrued product warranty
Product Warranty Liability [Line Items]
Current portion of accrued product warranty	726	755
Other Liabilities
Product Warranty Liability [Line Items]
Long-term portion of accrued product warranty	$ 744	$ 684

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details1) Guarantees and Commitments $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Guarantee Obligations:
Guarantee obligations, maximum potential loss	$ 46
Cancellation Obligation - Unrecorded Unconditional Purchase Obligation	141
Purchase Obligation	75
Guarantee obligations, current carrying value	$ 107
Maximum
Guarantee Obligations:
Guarantor Obligations, Term	two years

REDEEMABLE NONCONTROLLING INT_2

REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Nonmonetary Transactions [Abstract]
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 258	$ 366
Minority owner of Hydrogenics
Redeemable Noncontrolling Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	19%

SHAREHOLDERS' EQUITY (Details 1

SHAREHOLDERS' EQUITY (Details 1 ) Pref. Stock, Common Stock, Quarterly Dividends, Emp. Ben. Trust - USD ($) $ / shares in Units, $ in Millions				3 Months Ended												12 Months Ended
	Jul. 12, 2022	Jul. 13, 2021	Oct. 13, 2020	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Oct. 03, 2021	Jul. 04, 2021	Apr. 04, 2021	Dec. 31, 2020	Sep. 27, 2020	Jun. 28, 2020	Mar. 29, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Dividends Paid
Dividend payments on common stock (in dollars)																$ 855	$ 809	$ 782
Cash dividend (in dollars per share)				$ 1.57	$ 1.57	$ 1.45	$ 1.45	$ 1.45	$ 1.45	$ 1.35	$ 1.35	$ 1.35	$ 1.311	$ 1.311	$ 1.311	$ 6.04	$ 5.60	$ 5.28
Preferred Stock
Class of Stock
Preferred Stock, Shares Authorized				1,000,000,000,000												1,000,000,000,000
Preference Stock
Class of Stock
Preferred Stock, Shares Authorized				1,000,000,000,000												1,000,000,000,000
Common Stock
Class of Stock
Balance at beginning of period (in shares)							222,500,000				222,400,000				222,400,000	222,500,000	222,400,000	222,400,000
Stock Issued During Period, Shares																0	100,000	0
Balance at the end of the period (in shares)				222,500,000				222,500,000				222,400,000				222,500,000	222,500,000	222,400,000
Dividends Paid
Percentage increase in cash dividend per common share	8.30%	7.40%	3%
Treasury Stock, Common
Class of Stock
Balance at beginning of period (in shares)							80,000,000				74,800,000				71,700,000	80,000,000	74,800,000	71,700,000
Shares acquired (in shares)				21,830	200,000	100,000	1,600,000									1,900,000	5,700,000	3,900,000
Stock Issued During Period, Shares																700,000	500,000	800,000
Balance at the end of the period (in shares)				81,200,000				80,000,000				74,800,000				81,200,000	80,000,000	74,800,000
Common Stock Held in Trust
Class of Stock
Balance at beginning of period (in shares)							0				0				200,000	0	0	200,000
Stock Issued During Period, Shares																0	0	200,000
Balance at the end of the period (in shares)				0				0				0				0	0	0

SHAREHOLDERS' EQUITY (Details 2

SHAREHOLDERS' EQUITY (Details 2) Treasury Stock - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share repurchase programs
Average Cost Per Share (in dollars per share)	$ 206.12	$ 197.72	$ 194	$ 199.27	$ 198.74
Repurchases of common stock	$ 4	$ 23	$ 36	$ 311	$ 374	$ 1,402	$ 641
Remaining Authorized Capacity	2,218	$ 2,222	$ 2,245	$ 2,281	2,218
ShareRepurchaseProgram2019
Share repurchase programs
Remaining Authorized Capacity	$ 218				$ 218
Treasury Stock, Common
Share repurchase programs
Shares acquired	21,830	200,000	100,000	1,600,000	1,900,000	5,700,000	3,900,000
Treasury Stock, Common | ShareRepurchaseProgram2021
Share repurchase programs
Treasury Stock Repurchase Authorization Value						$ 2,000
Treasury Stock, Common | ShareRepurchaseProgram2019
Share repurchase programs
Treasury Stock Repurchase Authorization Value								$ 2,000

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	$ (1,571)
Before tax amount	(377)	$ 453	$ (70)
Tax benefit (expense)	(7)	(114)	43
After tax amount	(384)	339	(27)
Amounts reclassified from accumulated other comprehensive income(1)	25	67	63
Net current period other comprehensive (loss) income	(359)	406	36
Balance at the end of period	(1,890)	(1,571)
Total attributable to Cummins Inc.
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	(1,571)	(1,982)	(2,028)
Before tax amount	(337)	458	(60)
Tax benefit (expense)	(7)	(114)	43
After tax amount	(344)	344	(17)
Amounts reclassified from accumulated other comprehensive income(1)	25	67	63
Net current period other comprehensive (loss) income	(319)	411	46
Balance at the end of period	(1,890)	(1,571)	(1,982)
Change in pensions and other postretirement defined benefit plans
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	(346)	(735)	(734)
Before tax amount	(123)	425	(92)
Tax benefit (expense)	19	(103)	26
After tax amount	(104)	322	(66)
Amounts reclassified from accumulated other comprehensive income(1)	23	67	65
Net current period other comprehensive (loss) income	(81)	389	(1)
Balance at the end of period	(427)	(346)	(735)
Foreign currency translation adjustment
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	(1,208)	(1,204)	(1,285)
Before tax amount	(350)	(5)	73
Tax benefit (expense)	6	1	8
After tax amount	(344)	(4)	81
Amounts reclassified from accumulated other comprehensive income(1)	0	0	0
Net current period other comprehensive (loss) income	(344)	(4)	81
Balance at the end of period	(1,552)	(1,208)	(1,204)
Unrealized gain (loss) on derivatives
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	(17)	(43)	(9)
Before tax amount	136	38	(41)
Tax benefit (expense)	(32)	(12)	9
After tax amount	104	26	(32)
Amounts reclassified from accumulated other comprehensive income(1)	2		(2)
Net current period other comprehensive (loss) income	106	26	(34)
Balance at the end of period	89	(17)	(43)
Noncontrolling interests
Changes in accumulated other comprehensive income (loss) by component:
Before tax amount	(40)	(5)	(10)
Tax benefit (expense)	0	0	0
After tax amount	(40)	(5)	(10)
Amounts reclassified from accumulated other comprehensive income(1)	0	0
Net current period other comprehensive (loss) income	$ (40)	$ (5)	$ (10)

NONCONTROLLING INTERESTS (Detai

NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	$ 992	$ 889
Eaton Automated Transmission Technologies
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	525	518
Cummins India Ltd.
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	342	347
Other
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	$ 125	$ 24

STOCK INCENTIVE AND STOCK OPT_3

STOCK INCENTIVE AND STOCK OPTION PLANS (Details) Plan Summaries - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	8,500,000
Stock options' expiration from the date of grant	10 years
Number of shares in every even block of KESIP shares	100
Stock options granted for every even block of 100 KESIP shares purchased by the employee	50
Compensation expense (net of estimated forfeitures)	$ 33	$ 36	$ 30
Excess tax benefit / (deficiency) associated with share-based plans	8	$ 9	$ 4
Total unrecognized compensation expense (net of estimated forfeitures)	$ 86
Weighted-average maximum period of recognition of total unrecognized compensation expense related to nonvested awards	2 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Target award based on the actual performance (as a percent)	0%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Target award based on the actual performance (as a percent)	200%
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years

STOCK INCENTIVE AND STOCK OPT_4

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 2) Share Based Activity - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock option plan activity
Balance, at the beginning of the period (in shares)	2,743,098	3,175,530	3,237,570
Granted (in shares)	18,900	16,550	632,080
Exercised (in shares)	(586,990)	(400,154)	(660,786)
Forfeited (in shares)	(29,045)	(48,828)	(33,334)
Balance, at the end of the period (in shares)	2,145,963	2,743,098	3,175,530
Weighted average exercise price activity
Weighted-average Exercise Price at the beginning of the period (in dollars per share)	$ 143.51	$ 142.63	$ 140.36
Weighted-average Exercise Price Granted (in dollars per share)	207.79	232.44	142.81
Weighted-average Exercise Price Exercised (in dollars per share)	137.83	138.93	131.25
Weighted-average Exercise Price Forfeited (in dollars per share)	148.08	153.72	150.83
Weighted-average Exercise Price at the end of the period (in dollars per share)	$ 145.57	$ 143.51	$ 142.63
Weighted-average remaining contractual life of options outstanding	5 years 2 months 12 days
Aggregate intrinsic value of options outstanding	$ 208
Exercisable (in shares)	1,655,298	1,629,588	1,589,015
Weighted-average Exercise Price Exercisable (in dollars per share)	$ 146.37	$ 136.74	$ 130.28
Weighted-average remaining contractual life of options exercisable	4 years 7 months 6 days	4 years 4 months 24 days	4 years 7 months 6 days
Aggregate intrinsic value of options exercisable	$ 159	$ 133	$ 151
Weighted average grant date fair value of options granted (in dollars per share)	$ 45.74	$ 46.03	$ 25.40
Total intrinsic value of options exercised	$ 53	$ 41	$ 40

STOCK INCENTIVE AND STOCK OPT_5

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 3) Grant Date Fair Value - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Black-Scholes option pricing model assumptions
Expected life	6 years	6 years	6 years
Risk-free interest rate	2.32%	1.15%	0.62%
Expected volatility	28.40%	28.68%	27.05%
Dividend yield	2.85%	2.95%	2.88%
Performance Shares
Share-based compensation plan, other than stock options, activity
Nonvested at the beginning of the period (in shares)	440,149	376,954	395,931
Granted (in shares)	230,535	217,684	260,480
Vested (in shares)	(122,188)	(131,744)	(268,773)
Forfeited (in shares)	(63,197)	(22,745)	(10,684)
Nonvested at the end of the period (in shares)	485,299	440,149	376,954
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Weighted-average Fair Value, Nonvested at the beginning of the period (in dollars per share)	$ 183.72	$ 140.85	$ 144.64
Granted (in dollars per share)	184.92	234.22	132.57
Vested (in dollars per share)	148.99	146.55	138.27
Forfeited (in dollars per share)	182.68	171.91	144.22
Weighted-average Nonvested, Outstanding at the end of the period (in dollars per share)	$ 193.17	$ 183.72	$ 140.85
Total fair value of equity instruments other than options vested in period (in dollars)	$ 24	$ 35	$ 41
Restricted Shares
Share-based compensation plan, other than stock options, activity
Nonvested at the beginning of the period (in shares)	29,928	3,704	2,697
Granted (in shares)	215,260	26,224	3,704
Vested (in shares)	(5,513)	0	(2,697)
Forfeited (in shares)	(3,262)	0	0
Nonvested at the end of the period (in shares)	236,413	29,928	3,704
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Weighted-average Fair Value, Nonvested at the beginning of the period (in dollars per share)	$ 252.99	$ 165.04	$ 117.68
Granted (in dollars per share)	209.08	265.41	165.04
Vested (in dollars per share)	249.79	0	117.68
Forfeited (in dollars per share)	211.37	0	0
Weighted-average Nonvested, Outstanding at the end of the period (in dollars per share)	$ 213.66	$ 252.99	$ 165.04
Total fair value of equity instruments other than options vested in period (in dollars)	$ 1	$ 0
Restricted Shares | Maximum
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Total fair value of equity instruments other than options vested in period (in dollars)			$ 1

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Cummins share of net income	$ 2,151	$ 2,131	$ 1,789
Basic (in dollars per share)	$ 15.20	$ 14.74	$ 12.07
Diluted (in dollars per share)	$ 15.12	$ 14.61	$ 12.01
Weighted-average common shares outstanding:
Basic (in shares)	141,500,000	144,600,000	148,200,000
Dilutive effect of stock compensation awards (in shares)	800,000	1,300,000	800,000
Diluted (in shares)	142,300,000	145,900,000	149,000,000
Options excluded (in shares)	20,595	6,463	645,334

DERIVATIVES (Details)

DERIVATIVES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Gain (Loss) Reclassified from AOCL into Earnings/Interest Expense	$ (3)	$ 2	$ 3
Unsecured Debt			500
Gain (Loss) on Swaps	(148)	(3)	7
Gain/(Loss) on Borrowings	145	2	(5)
Derivative, Cash Received on Hedge	49
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(3)	$ 45	$ 0
Derivative Assets (Liabilities), at Fair Value, Net	52
Derivative, Net Liability Position, Aggregate Fair Value	$ 100
Sales
Derivative [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Net sales	Net sales	Net sales
Cost of Sales
Derivative [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 2	$ 0	$ (1)
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of sales	Cost of sales	Cost of sales
Other Income
Derivative [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (5)	$ 45	$ 1
Foreign Exchange Forward
Derivative [Line Items]
Derivative, Notional Amount	3,600	$ 2,700
Gain (Loss)  Recognized in AOCL	(22)
Gain (Loss) Reclassified from AOCL into Earnings/Interest Expense	$ 0
Foreign Exchange Forward | Foreign currencies | Geographic Concentration Risk
Derivative [Line Items]
Concentration Risk, Percentage	88%	87%
Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount			150	$ 350
Gain (Loss)  Recognized in AOCL	$ 112	$ 19	(22)
Gain (Loss) Reclassified from AOCL into Earnings/Interest Expense	0	0	$ 0
Derivative, Notional Amount Settled	150
Designated
Derivative [Line Items]
Derivative, Notional Amount	3,051	2,558
Derivative Asset	98	15
Derivative Liability	170	30
Designated | Prepaid Expenses and Other Current Assets
Derivative [Line Items]
Derivative Asset	18	15
Designated | Other Noncurrent Assets
Derivative [Line Items]
Derivative Asset	80	0
Designated | Accrued Liabilities
Derivative [Line Items]
Derivative Liability	19	11
Designated | Other liabilities
Derivative [Line Items]
Derivative Liability	151	19
Not Designated
Derivative [Line Items]
Derivative, Notional Amount	2,900	1,888
Derivative Asset	27	4
Derivative Liability	3	4
Not Designated | Prepaid Expenses and Other Current Assets
Derivative [Line Items]
Derivative Asset	27	4
Not Designated | Other Noncurrent Assets
Derivative [Line Items]
Derivative Asset	0	0
Not Designated | Accrued Liabilities
Derivative [Line Items]
Derivative Liability	3	4
Not Designated | Other liabilities
Derivative [Line Items]
Derivative Liability	0	0
Senior Notes 0.75 Percent, Due 2025
Derivative [Line Items]
Unsecured Debt	$ 500	500
Debt instrument interest rate (as a percent)	0.75%
Senior Notes 0.75 Percent, Due 2025 | London Interbank Offered Rate (LIBOR)
Derivative [Line Items]
Debt Instrument, Description of Variable Rate Basis	LIBOR
Senior Notes 1.50 Percent, Due 2030
Derivative [Line Items]
Unsecured Debt	$ 850	850
Debt instrument interest rate (as a percent)	1.50%
Senior Notes 1.50 Percent, Due 2030 | Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount	$ 765
Senior Notes 1.50 Percent, Due 2030 | London Interbank Offered Rate (LIBOR)
Derivative [Line Items]
Debt Instrument, Description of Variable Rate Basis	LIBOR
Senior Notes, 3.65%, due 2023
Derivative [Line Items]
Unsecured Debt	$ 500	$ 500
Debt instrument interest rate (as a percent)	3.65%
Senior Notes, 3.65%, due 2023 | London Interbank Offered Rate (LIBOR)
Derivative [Line Items]
Debt Instrument, Description of Variable Rate Basis	LIBOR

RUSSIAN OPERATIONS (Details)

RUSSIAN OPERATIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring and Related Activities [Abstract]
Inventory Write-down	$ 17
Accounts Receivable, Allowance for Credit Loss, Writeoff	41
Equity Method Investment, Other than Temporary Impairment	31		$ 13
Other Restructuring Costs	22
Russian suspension costs	111	$ 0	$ 0
Total Restructuring Charges
Accounts Receivable, after Allowance for Credit Loss	4,826	$ 3,565
RUSSIA
Total Restructuring Charges
Accounts Receivable, after Allowance for Credit Loss	14
Cash and cash equivalents	$ 66

OPERATING SEGMENTS FINANCIAL IN

OPERATING SEGMENTS FINANCIAL INFORMATION (Details) Reportable Operating Segments, EBITDA Reconciliation to GAAP - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating results:
Net sales	$ 28,074	$ 24,021	$ 19,811
Research, development and engineering expenses	1,278	1,090	906
Equity, royalty and interest income from investees	349	506	452
Russian suspension costs	111	0	0
Interest Expense	199	111	100
Depreciation and Amortization	781	659	670
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	2,819	2,751	2,338
Income Tax Expense (Benefit)	636	587	527
Net income	2,183	2,164	1,811
Less: Net income attributable to noncontrolling interests	32	33	22
Cummins share of net income	2,151	2,131	1,789
Amortization of Debt Discount	3	3	3
Statement of Financial Position [Abstract]
Net assets	14,995	9,639
Investments and advances to equity method investees	1,759	1,538
Capital expenditures	916	734	528
Equity Method Investment, Other than Temporary Impairment	31		13
Engine
Operating results:
Net sales	10,945	9,954	8,022
Research, development and engineering expenses	506	399	290
Equity, royalty and interest income from investees	166	340	312
Interest income	14	8	9
Russian suspension costs	33
Segment EBITDA	1,541	1,411	1,235
Depreciation and Amortization	205	205	208
Statement of Financial Position [Abstract]
Net assets	1,451	1,554
Investments and advances to equity method investees	590	742
Capital expenditures	368	341	202
Components
Operating results:
Net sales	9,736	7,665	6,024
Research, development and engineering expenses	309	307	264
Equity, royalty and interest income from investees	71	50	61
Interest income	12	5	4
Russian suspension costs	5
Segment EBITDA	1,346	1,180	961
Depreciation and Amortization	304	183	192
Meritor acquisition and integration costs	83
Filtration business separation costs	28
Statement of Financial Position [Abstract]
Net assets	7,306	2,938
Investments and advances to equity method investees	617	254
Capital expenditures	264	184	140
Distribution
Operating results:
Net sales	8,929	7,772	7,136
Research, development and engineering expenses	52	48	31
Equity, royalty and interest income from investees	77	63	62
Interest income	16	7	4
Russian suspension costs	54
Segment EBITDA	888	731	665
Depreciation and Amortization	114	116	122
Statement of Financial Position [Abstract]
Net assets	2,698	2,294
Investments and advances to equity method investees	352	329
Capital expenditures	114	92	89
Power Systems
Operating results:
Net sales	5,033	4,415	3,631
Research, development and engineering expenses	240	234	212
Equity, royalty and interest income from investees	43	56	21
Interest income	7	5	4
Russian suspension costs	19
Segment EBITDA	596	496	343
Depreciation and Amortization	120	131	130
Statement of Financial Position [Abstract]
Net assets	2,382	2,251
Investments and advances to equity method investees	138	164
Capital expenditures	96	80	79
New Power
Operating results:
Net sales	198	116	72
Research, development and engineering expenses	171	102	109
Equity, royalty and interest income from investees	(8)	(3)	(4)
Interest income	0	0	0
Russian suspension costs	0
Segment EBITDA	(340)	(223)	(172)
Depreciation and Amortization	38	24	18
Statement of Financial Position [Abstract]
Net assets	1,158	602
Investments and advances to equity method investees	60	49
Capital expenditures	74	37	18
Total Segment
Operating results:
Net sales	34,841	29,922	24,885
Research, development and engineering expenses	1,278	1,090	906
Equity, royalty and interest income from investees	349	506	452
Interest income	49	25	21
Russian suspension costs	111
Segment EBITDA	4,031	3,595	3,032
Depreciation and Amortization	781	659	670
Statement of Financial Position [Abstract]
Net assets	14,995	9,639
Investments and advances to equity method investees	1,757	1,538
Capital expenditures	916	734	528
Corporate and Other
Operating results:
Segment EBITDA	(232)	(74)	76
Filtration business separation costs	53
External Sales | Engine
Operating results:
Net sales	8,199	7,589	5,925
External Sales | Components
Operating results:
Net sales	7,847	5,932	4,650
External Sales | Distribution
Operating results:
Net sales	8,901	7,742	7,110
External Sales | Power Systems
Operating results:
Net sales	2,951	2,650	2,055
External Sales | New Power
Operating results:
Net sales	176	108	71
External Sales | Total Segment
Operating results:
Net sales	28,074	24,021	19,811
Intersegment sales | Engine
Operating results:
Net sales	2,746	2,365	2,097
Intersegment sales | Components
Operating results:
Net sales	1,889	1,733	1,374
Intersegment sales | Distribution
Operating results:
Net sales	28	30	26
Intersegment sales | Power Systems
Operating results:
Net sales	2,082	1,765	1,576
Intersegment sales | New Power
Operating results:
Net sales	22	8	1
Intersegment sales | Total Segment
Operating results:
Net sales	$ 6,767	$ 5,901	$ 5,074

OPERATING SEGMENTS - (Details 2

OPERATING SEGMENTS - (Details 2) Net Asset Reconciliation, Geographic Information and Largest Customer - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment reporting
Net assets for operating segments	$ 14,995	$ 9,639
Cash, cash equivalents and marketable securities	2,573	3,187
Net liabilities deducted in arriving at net segment assets (1)	11,270	9,486
Pension and other postretirement adjustments excluded from net assets	832	966
Deferred income taxes	625	428
Debt-related costs not allocated to segments	4	4
Assets	30,299	23,710
Long-lived assets	8,780	7,297
Net sales	28,074	24,021	$ 19,811
UNITED STATES
Segment reporting
Long-lived assets	4,714	3,978
Net sales	15,552	12,489	10,605
CHINA
Segment reporting
Long-lived assets	1,052	1,136
Net sales	2,390	3,169	2,832
INDIA
Segment reporting
Long-lived assets	665	573
Net sales	1,392	1,133	680
UNITED KINGDOM
Segment reporting
Long-lived assets	431	384
Mexico
Segment reporting
Long-lived assets	429	195
Netherlands
Segment reporting
Long-lived assets	334	314
Brazil
Segment reporting
Long-lived assets	256	76
Canada
Segment reporting
Long-lived assets	168	163
Other foreign countries
Segment reporting
Long-lived assets	731	478
Net sales	8,740	7,230	5,694
Revenue Benchmark
Segment reporting
Net sales	$ 4,500	$ 3,600	$ 2,900
Revenue Benchmark | Customer Concentration Risk | PACCAR Inc.
Segment reporting
Concentration Risk, Percentage	16%	15%	15%

Uncategorized Items - cmi-20221

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2014-09 [Member]