Cummins (CMI) 10-Q 3 Aug 23 2023 Q2 Quarterly report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2023
Entity File Number	1-4949
Entity Registrant Name	CUMMINS INC.
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-0257090
Entity Address, Address Line One	500 Jackson Street
Entity Address, Address Line Two	Box 3005
Entity Address, City or Town	Columbus
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47202-3005
City Area Code	812
Local Phone Number	377-5000
Title of 12(b) Security	Common stock, $2.50 par value
Trading Symbol	CMI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding | shares	141,647,129
Common Stock, Par or Stated Value Per Share | $ / shares	$ 2.50
Entity Central Index Key	0000026172
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Amendment Flag	false
Document Transition Report	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenues	$ 8,638	$ 6,586	$ 17,091	$ 12,971
Cost of sales	6,490	4,860	12,914	9,713
GROSS MARGIN	2,148	1,726	4,177	3,258
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	873	622	1,626	1,237
Research, development and engineering expenses	384	299	734	597
Equity, royalty and interest income from investees	133	95	252	191
Other operating expense, net	27	3	46	114
OPERATING INCOME	997	897	2,023	1,501
Interest expense	99	34	186	51
Other income (expense), net	51	(8)	141	(17)
INCOME BEFORE INCOME TAXES	949	855	1,978	1,433
Income tax expense (Note 5)	212	148	435	303
CONSOLIDATED NET INCOME	737	707	1,543	1,130
Less: Net income attributable to noncontrolling interests	17	5	33	10
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 720	$ 702	$ 1,510	$ 1,120
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic (in dollars per share)	$ 5.08	$ 4.97	$ 10.66	$ 7.90
Diluted (in dollars per share)	$ 5.05	$ 4.94	$ 10.60	$ 7.86
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)	141.7	141.2	141.6	141.7
Dilutive effect of stock compensation awards (in shares)	0.8	0.8	0.9	0.8
Diluted (in shares)	142.5	142	142.5	142.5

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME	$ 737	$ 707	$ 1,543	$ 1,130
Other comprehensive income (loss), net of tax (Note 12)
Change in pension and other postretirement defined benefit plans	2	6	(7)	22
Foreign currency translation adjustments	(110)	(245)	(28)	(241)
Unrealized gain on derivatives	12	43	9	71
Total other comprehensive loss, net of tax	(96)	(196)	(26)	(148)
COMPREHENSIVE INCOME	641	511	1,517	982
Less: Comprehensive income (loss) attributable to noncontrolling interests	15	(10)	34	(13)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 626	$ 521	$ 1,483	$ 995

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions	Jun. 30, 2023	Dec. 31, 2022
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, Common, Shares	80.9	81.2
Current assets
Cash and cash equivalents	$ 1,802	$ 2,101
Marketable securities	512	472
Total cash, cash equivalents and marketable securities	2,314	2,573
Accounts and notes receivable, net	5,863	5,202
Inventories (Note 7)	6,026	5,603
Prepaid expenses and other current assets	1,207	1,073
Total current assets	15,410	14,451
Long-term assets
Property, plant and equipment	10,922	10,507
Accumulated depreciation	(5,199)	(4,986)
Property, plant and equipment, net	5,723	5,521
Investments and advances related to equity method investees	1,861	1,759
Goodwill	2,404	2,343
Other intangible assets, net	2,584	2,687
Pension assets (Note 3)	1,523	1,398
Other assets (Note 8)	2,230	2,140
Total assets	31,735	30,299
Current liabilities
Accounts payable (principally trade)	4,308	4,252
Loans payable (Note 9)	419	210
Commercial paper (Note 9)	1,617	2,574
Current maturities of long-term debt (Note 9)	575	573
Accrued compensation, benefits and retirement costs	721	617
Current portion of accrued product warranty (Note 10)	751	726
Current portion of deferred revenue (Note 2)	1,017	1,004
Other accrued expenses (Note 8)	1,637	1,465
Total current liabilities	11,045	11,421
Long-term liabilities
Long-term debt (Note 9)	5,089	4,498
Deferred revenue (Note 2)	939	844
Other liabilities (Note 8)	3,306	3,311
Total liabilities	20,379	20,074
Commitments and contingencies (Note 11)
Redeemable Noncontrolling Interest, Equity, Carrying Amount	0	258
Cummins Inc. shareholders' equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	2,532	2,243
Retained earnings	19,102	18,037
Treasury stock, at cost, 80.9 and 81.2 shares	(9,380)	(9,415)
Accumulated other comprehensive loss (Note 12)	(1,917)	(1,890)
Total Cummins Inc. shareholders' equity	10,337	8,975
Noncontrolling interests	1,019	992
Total equity	11,356	9,967
Total liabilities, redeemable noncontrolling interests and equity	$ 31,735	$ 30,299

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 1,543	$ 1,130
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	503	328
Deferred income taxes	(132)	(112)
Equity in income of investees, net of dividends	(113)	(62)
Pension and OPEB expense (Note 3)	3	17
Pension contributions and OPEB payments (Note 3)	(103)	(55)
Russian suspension costs, net of recoveries (Note 14)	0	111
(Gain) loss on corporate owned life insurance	(20)	85
Foreign currency remeasurement and transaction exposure	(59)	(10)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(635)	(252)
Inventories	(403)	(498)
Other current assets	(137)	(65)
Accounts payable	65	426
Accrued expenses	261	(281)
Changes in other liabilities	75	(11)
Other, net	130	12
Net cash provided by operating activities	978	763
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(414)	(251)
Acquisitions of businesses, net of cash acquired (Note 16)	(134)	(245)
Investments in marketable securities—acquisitions	(648)	(433)
Investments in marketable securities—liquidations (Note 6)	620	461
Other, net	(30)	(108)
Net cash used in investing activities	(606)	(576)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	737	56
Net (payments) borrowings of commercial paper	(658)	392
Payments on borrowings and finance lease obligations	(228)	(71)
Dividend payments on common stock	(445)	(411)
Repurchases of common stock	0	(347)
Other, net	(9)	(10)
Net cash used in financing activities	(603)	(391)
Effect of exchange rate changes on cash and cash equivalents	(68)	74
Net decrease in cash and cash equivalents	(299)	(130)
Cash and cash equivalents at beginning of year	2,101	2,592
Cash and cash equivalents	$ 1,802	$ 2,462

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Redeemable Noncontrolling Interest	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock, Common	Accumulated Other Comprehensive Loss	Total Cummins Inc. Shareholders' Equity	Noncontrolling Interests	us-gaap_Net Income in Total Equity Excluding Noncontrolling Interest Amount
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 2.90
Redeemable noncontrolling interests (Note 16) at Dec. 31, 2021		$ 366
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2021	$ 9,035		$ 556	$ 1,543	$ 16,741	$ (9,123)	$ (1,571)	$ 8,146	$ 889
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(11)
CONSOLIDATED NET INCOME	1,130				1,120			1,120	21	$ 1,141
Other comprehensive loss, net of tax (Note 12)	(148)						(125)	(125)	(23)
Issuance of common stock	1			1				1
Cash dividends on common stock	(411)				(411)			(411)
Distributions to noncontrolling interests	(14)								(14)
Repurchases of common stock	(347)					(347)		(347)
Share-based awards	19			(7)		26		19
Fair value adjustment of redeemable noncontrolling interests	129	(129)		129				129
Other shareholder transactions	24			2		5		7	17
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Jun. 30, 2022		226
BALANCE AT END OF PERIOD at Jun. 30, 2022	$ 9,429		556	1,668	17,450	(9,439)	(1,696)	8,539	890
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.45
Redeemable noncontrolling interests (Note 16) at Mar. 31, 2022		392
BALANCE AT BEGINNING OF PERIOD at Mar. 31, 2022	$ 8,971		556	1,497	16,952	(9,412)	(1,515)	8,078	893
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(7)
CONSOLIDATED NET INCOME	707				702			702	12	714
Other comprehensive loss, net of tax (Note 12)	(196)						(181)	(181)	(15)
Issuance of common stock	1			1				1
Cash dividends on common stock	(204)				(204)			(204)
Repurchases of common stock	(36)					(36)		(36)
Share-based awards	10			2		8		10
Fair value adjustment of redeemable noncontrolling interests	159	(159)		159				159
Other shareholder transactions	10			9		1		10
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Jun. 30, 2022		226
BALANCE AT END OF PERIOD at Jun. 30, 2022	$ 9,429		556	1,668	17,450	(9,439)	(1,696)	8,539	890
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 3.14
Redeemable noncontrolling interests (Note 16) at Dec. 31, 2022	$ 258	258
BALANCE AT BEGINNING OF PERIOD at Dec. 31, 2022	9,967		556	1,687	18,037	(9,415)	(1,890)	8,975	992
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(20)
CONSOLIDATED NET INCOME	1,543				1,510			1,510	53	1,563
Other comprehensive loss, net of tax (Note 12)	(26)						(27)	(27)	1
Issuance of common stock	2			2				2
Cash dividends on common stock	(445)				(445)			(445)
Distributions to noncontrolling interests	(24)								(24)
Share-based awards	28			(4)		32		28
Fair value adjustment of redeemable noncontrolling interests	(33)	33		(33)				(33)
Acquisition of redeemable noncontrolling interests (Note 16)		(271)
Sale of Atmus stock (Note 15)	282			285				285	(3)
Other shareholder transactions	42			39		3		42	0
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Jun. 30, 2023	0	0
BALANCE AT END OF PERIOD at Jun. 30, 2023	$ 11,356		556	1,976	19,102	(9,380)	(1,917)	10,337	1,019
Statement of Stockholders' Equity [Abstract]
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 1.57
Redeemable noncontrolling interests (Note 16) at Mar. 31, 2023		261
BALANCE AT BEGINNING OF PERIOD at Mar. 31, 2023	$ 10,620		556	1,674	18,605	(9,389)	(1,823)	9,623	997
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(12)
CONSOLIDATED NET INCOME	737				720			720	29	$ 749
Other comprehensive loss, net of tax (Note 12)	(96)						(94)	(94)	(2)
Issuance of common stock	2			2				2
Cash dividends on common stock	(223)				(223)			(223)
Distributions to noncontrolling interests	(2)								(2)
Share-based awards	8			1		7		8
Fair value adjustment of redeemable noncontrolling interests	(22)	22		(22)				(22)
Acquisition of redeemable noncontrolling interests (Note 16)		(271)
Sale of Atmus stock (Note 15)	282			285				285	(3)
Other shareholder transactions	38			36		2		38	0
Balance at End of Period Redeemable Noncontrolling Interest, Equity, Carrying Amount at Jun. 30, 2023	0	$ 0
BALANCE AT END OF PERIOD at Jun. 30, 2023	$ 11,356		$ 556	$ 1,976	$ 19,102	$ (9,380)	$ (1,917)	$ 10,337	$ 1,019

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Overview Cummins Inc. (“Cummins,” “we,” “our” or “us”) was founded in 1919 as Cummins Engine Company, a corporation in Columbus, Indiana, and one of the first diesel engine manufacturers. In 2001, we changed our name to Cummins Inc. We are a global power leader that designs, manufactures, distributes and services diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, electric powertrains, hydrogen production and fuel cell products. We sell our products to original equipment manufacturers (OEMs), distributors, dealers and other customers worldwide. We serve our customers through a service network of approximately 460 wholly-owned, joint venture and independent distributor locations and more than 10,000 Cummins certified dealer locations in approximately 190 countries and territories. Interim Condensed Financial Statements The unaudited Condensed Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows. All such adjustments are of a normal recurring nature. The Condensed Consolidated Financial Statements were prepared in accordance with accounting principles in the United States of America (GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements were condensed or omitted as permitted by such rules and regulations. These interim condensed financial statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 . Our interim period financial results for the three and six month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all required annual disclosures. Reclassifications Certain amounts for prior year periods were reclassified to conform to the current year presentation. Use of Estimates in Preparation of Financial Statements Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Condensed Consolidated Financial Statements . Significant estimates and assumptions in these Condensed Consolidated Financial Statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Weighted-Average Diluted Shares Outstanding The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Options excluded 14,210 33,100 9,522 26,782 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. The following is a summary of sales to and purchases from nonconsolidated equity investees: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Sales to nonconsolidated equity investees $ 320 $ 281 $ 696 $ 625 Purchases from nonconsolidated equity investees 687 328 1,391 755 The following is a summary of accounts receivable from and accounts payable to nonconsolidated equity investees: In millions June 30, December 31, Balance Sheet Location Accounts receivable from nonconsolidated equity investees $ 466 $ 376 Accounts and notes receivable, net Accounts payable to nonconsolidated equity investees 332 292 Accounts payable (principally trade) Supply Chain Financing We currently have supply chain financing programs with financial intermediaries, which provide certain vendors the option to be paid by financial intermediaries earlier than the due date on the applicable invoice. When a vendor utilizes the program and receives an early payment from a financial intermediary, they take a discount on the invoice. We then pay the financial intermediary the face amount of the invoice on the original due date. The maximum amount that we could have outstanding under the program was $482 million at June 30, 2023. We do not reimburse vendors for any costs they incur for participation in the program, their participation is completely voluntary and there are no assets pledged as security or other forms of guarantees provided for the committed payment to the finance provider or intermediary. As a result, all amounts owed to the financial intermediaries are presented as accounts payable in our Condensed Consolidated Balance Sheets . Amounts due to the financial intermediaries reflected in accounts payable at June 30, 2023 and December 31, 2022, were $231 million and $331 million, respectively.

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Long-term Contracts The majority of our contracts are for a period of less than one year. We have certain arrangements, primarily long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that were not satisfied as of June 30, 2023, was $730 million. We expect to recognize the related revenue of $232 million over the next 12 months and $498 million over periods up to 10 years. See NOTE 10, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: In millions June 30, December 31, Unbilled revenue $ 299 $ 257 Deferred revenue 1,956 1,848 We recognized revenue of $178 million and $384 million for the three and six months ended June 30, 2023, compared with $176 million and $416 million for the comparable periods in 2022, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2023 or 2022. Disaggregation of Revenue Consolidated Revenue The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 United States $ 4,937 $ 3,788 $ 9,739 $ 7,245 China 762 520 1,552 1,173 India 413 311 824 620 Other international 2,526 1,967 4,976 3,933 Total net sales $ 8,638 $ 6,586 $ 17,091 $ 12,971 Segment Revenue As previously announced, our Components segment reorganized its reporting structure to carve out the electronics business into the newly formed software and electronics business and combined the turbo technologies and fuel systems businesses into the newly formed engine components business. We started reporting results for the reorganized business in the first quarter of 2023 and reflected these changes for prior periods. On May 26, 2023, with the Atmus Filtration Technologies Inc. (Atmus) initial public offering (IPO), we changed the name of our Components' filtration business to Atmus. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information. Components segment external sales by business were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Axles and brakes $ 1,249 $ — $ 2,521 $ — Emission solutions 842 767 1,781 1,575 Atmus 341 319 683 627 Engine components 283 223 575 463 Automated transmissions 180 143 358 277 Software and electronics 29 25 49 52 Total sales $ 2,924 $ 1,477 $ 5,967 $ 2,994 Engine segment external sales by market were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Heavy-duty truck $ 856 $ 797 $ 1,716 $ 1,481 Medium-duty truck and bus 687 620 1,304 1,211 Light-duty automotive 444 425 885 912 Total on-highway 1,987 1,842 3,905 3,604 Off-highway 276 250 610 537 Total sales $ 2,263 $ 2,092 $ 4,515 $ 4,141 As previously announced, due to the indefinite suspension of operations in Russia, we reorganized the regional management structure of our Distribution segment and moved all Commonwealth of Independent States (CIS) sales into the Europe and Africa and Middle East regions. The Russian portion of prior period CIS sales moved to the Europe region. We started to report results for our new regional management structure in the first quarter of 2023 and reflected these changes for historical periods. Distribution segment external sales by region were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 North America $ 1,783 $ 1,491 $ 3,476 $ 2,862 Asia Pacific 265 242 504 486 Europe 213 246 407 521 China 112 99 213 181 Africa and Middle East 80 61 142 111 India 63 52 120 100 Latin America 60 56 113 97 Total sales $ 2,576 $ 2,247 $ 4,975 $ 4,358 Distribution segment external sales by product line were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Parts $ 1,011 $ 987 $ 2,063 $ 1,913 Power generation 609 440 1,100 838 Engines 527 428 983 866 Service 429 392 829 741 Total sales $ 2,576 $ 2,247 $ 4,975 $ 4,358 Power Systems segment external sales by product line were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Power generation $ 447 $ 408 $ 827 $ 807 Industrial 218 213 407 401 Generator technologies 129 113 239 209 Total sales $ 794 $ 734 $ 1,473 $ 1,417

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Long-term Contracts The majority of our contracts are for a period of less than one year. We have certain arrangements, primarily long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that were not satisfied as of June 30, 2023, was $730 million. We expect to recognize the related revenue of $232 million over the next 12 months and $498 million over periods up to 10 years. See NOTE 10, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: In millions June 30, December 31, Unbilled revenue $ 299 $ 257 Deferred revenue 1,956 1,848 We recognized revenue of $178 million and $384 million for the three and six months ended June 30, 2023, compared with $176 million and $416 million for the comparable periods in 2022, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2023 or 2022. Disaggregation of Revenue Consolidated Revenue The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 United States $ 4,937 $ 3,788 $ 9,739 $ 7,245 China 762 520 1,552 1,173 India 413 311 824 620 Other international 2,526 1,967 4,976 3,933 Total net sales $ 8,638 $ 6,586 $ 17,091 $ 12,971 Segment Revenue As previously announced, our Components segment reorganized its reporting structure to carve out the electronics business into the newly formed software and electronics business and combined the turbo technologies and fuel systems businesses into the newly formed engine components business. We started reporting results for the reorganized business in the first quarter of 2023 and reflected these changes for prior periods. On May 26, 2023, with the Atmus Filtration Technologies Inc. (Atmus) initial public offering (IPO), we changed the name of our Components' filtration business to Atmus. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information. Components segment external sales by business were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Axles and brakes $ 1,249 $ — $ 2,521 $ — Emission solutions 842 767 1,781 1,575 Atmus 341 319 683 627 Engine components 283 223 575 463 Automated transmissions 180 143 358 277 Software and electronics 29 25 49 52 Total sales $ 2,924 $ 1,477 $ 5,967 $ 2,994 Engine segment external sales by market were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Heavy-duty truck $ 856 $ 797 $ 1,716 $ 1,481 Medium-duty truck and bus 687 620 1,304 1,211 Light-duty automotive 444 425 885 912 Total on-highway 1,987 1,842 3,905 3,604 Off-highway 276 250 610 537 Total sales $ 2,263 $ 2,092 $ 4,515 $ 4,141 As previously announced, due to the indefinite suspension of operations in Russia, we reorganized the regional management structure of our Distribution segment and moved all Commonwealth of Independent States (CIS) sales into the Europe and Africa and Middle East regions. The Russian portion of prior period CIS sales moved to the Europe region. We started to report results for our new regional management structure in the first quarter of 2023 and reflected these changes for historical periods. Distribution segment external sales by region were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 North America $ 1,783 $ 1,491 $ 3,476 $ 2,862 Asia Pacific 265 242 504 486 Europe 213 246 407 521 China 112 99 213 181 Africa and Middle East 80 61 142 111 India 63 52 120 100 Latin America 60 56 113 97 Total sales $ 2,576 $ 2,247 $ 4,975 $ 4,358 Distribution segment external sales by product line were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Parts $ 1,011 $ 987 $ 2,063 $ 1,913 Power generation 609 440 1,100 838 Engines 527 428 983 866 Service 429 392 829 741 Total sales $ 2,576 $ 2,247 $ 4,975 $ 4,358 Power Systems segment external sales by product line were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Power generation $ 447 $ 408 $ 827 $ 807 Industrial 218 213 407 401 Generator technologies 129 113 239 209 Total sales $ 794 $ 734 $ 1,473 $ 1,417

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	NOTE 3. PENSIONS AND OTHER POSTRETIREMENT BENEFITS We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit (OPEB) plans. Contributions to these plans were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Defined benefit pension contributions $ 6 $ 6 $ 94 $ 39 OPEB payments, net 5 6 9 16 Defined contribution pension plans 30 20 73 56 We anticipate making additional defined benefit pension contributions during the remainder of 2023 of $20 million for our U.S. and U.K. qualified and non-qualified pension plans. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2023 annual net periodic pension cost to be near zero. The components of net periodic pension and OPEB expense (income) under our plans were as follows: Pension U.S. Plans U.K. Plans OPEB Three months ended June 30, In millions 2023 2022 2023 2022 2023 2022 Service cost $ 29 $ 34 $ 4 $ 8 $ — $ — Interest cost 42 22 18 9 2 1 Expected return on plan assets (69) (52) (27) (20) — — Amortization of prior service cost 1 — — — — — Recognized net actuarial loss 2 6 — — — — Net periodic benefit expense (income) $ 5 $ 10 $ (5) $ (3) $ 2 $ 1 Pension U.S. Plans U.K. Plans OPEB Six months ended June 30, In millions 2023 2022 2023 2022 2023 2022 Service cost $ 58 $ 68 $ 8 $ 16 $ — $ — Interest cost 84 44 35 18 4 2 Expected return on plan assets (138) (104) (52) (40) — — Amortization of prior service cost 1 — — — — — Recognized net actuarial loss (gain) 4 12 — 1 (1) — Net periodic benefit expense (income) $ 9 $ 20 $ (9) $ (5) $ 3 $ 2

EQUITY, ROYALTY AND INTEREST IN

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	6 Months Ended
	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES	NOTE 4. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 18 $ 11 $ 37 $ 27 Chongqing Cummins Engine Company, Ltd. 13 7 22 16 Beijing Foton Cummins Engine Co., Ltd. 9 14 25 28 Tata Cummins, Ltd. 7 5 15 14 All other manufacturers 32 13 51 3 (1) Distribution entities Komatsu Cummins Chile, Ltda. 13 12 27 19 All other distributors 4 3 7 5 Cummins share of net income 96 65 184 112 Royalty and interest income 37 30 68 79 Equity, royalty and interest income from investees $ 133 $ 95 $ 252 $ 191 (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 indefinite suspension of our Russian operations. See NOTE 14, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Tax Disclosure	NOTE 5. INCOME TAXES Our effective tax rates for the three and six months ended June 30, 2023, were 22.3 percent and 22.0 percent, respectively. Our effective tax rates for the three and six months ended June 30, 2022, were 17.3 percent and 21.1 percent, respectively. The three months ended June 30, 2023, contained net unfavorable discrete tax items of $3 million. The six months ended June 30, 2023, contained net discrete tax amounts of zero, as the result of offsetting amounts for the first two quarters, primarily due to share-based compensation tax benefits and other discrete items. The three months ended June 30, 2022, contained favorable discrete items of $36 million, primarily due to $36 million of favorable changes in tax reserves, $10 million of favorable changes associated with the indefinite suspension in our Russian operations and $8 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus. The six months ended June 30, 2022, contained favorable net discrete tax items of $5 million, primarily due to $27 million of favorable changes in tax reserves and $4 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $8 million of unfavorable changes associated with the indefinite suspension in our Russian operations.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 6. MARKETABLE SECURITIES A summary of marketable securities, all of which were classified as current, was as follows: June 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 244 $ (5) $ 239 $ 238 $ (5) $ 233 Certificates of deposit 242 — 242 209 — 209 Equity mutual funds 29 2 31 25 3 28 Debt securities — — — 2 — 2 Marketable securities $ 515 $ (3) $ 512 $ 474 $ (2) $ 472 (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 Condensed Consolidated Statements of Net Income . All debt securities are classified as available-for-sale. All marketable securities presented use a Level 2 fair value measure. The fair value of Level 2 securities is estimated using actively quoted prices for similar instruments from brokers and observable inputs where available, including market transactions and third-party pricing services, or net asset values provided to investors. We do not currently have any Level 3 securities, and there were no transfers between Level 2 or 3 during the six months ended June 30, 2023, or the year ended December 31, 2022. A description of the valuation techniques and inputs used for our Level 2 fair value measures is as follows: • Debt mutual funds — The fair value measures for the vast majority of these investments are the daily net asset values published on a regulated governmental website. Daily quoted prices are available from the issuing brokerage and are used on a test basis to corroborate this Level 2 input measure. • Certificates of deposit — These investments provide us with a contractual rate of return and generally range in maturity from three months to five years. The counterparties to these investments are reputable financial institutions with investment grade credit ratings. Since these instruments are not tradable and must be settled directly by us with the respective financial institution, our fair value measure is the financial institution's month-end statement. • Equity mutual funds — The fair value measures for these investments are the net asset values published by the issuing brokerage. Daily quoted prices are available from reputable third-party pricing services and are used on a test basis to corroborate this Level 2 input measure. • Debt securities — The fair value measures for these securities are broker quotes received from reputable firms. These securities are infrequently traded on a national exchange and these values are used on a test basis to corroborate our Level 2 input measure. The proceeds from sales and maturities of marketable securities were as follows: Six months ended June 30, In millions 2023 2022 Proceeds from sales of marketable securities $ 509 $ 346 Proceeds from maturities of marketable securities 111 115 Investments in marketable securities - liquidations $ 620 $ 461

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 7. INVENTORIES Inventories are stated at the lower of cost or net realizable value. Inventories included the following: In millions June 30, December 31, Finished products $ 3,169 $ 2,917 Work-in-process and raw materials 3,102 2,926 Inventories at FIFO cost 6,271 5,843 Excess of FIFO over LIFO (245) (240) Inventories $ 6,026 $ 5,603

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA	6 Months Ended
	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET DATA	NOTE 8. SUPPLEMENTAL BALANCE SHEET DATA Other assets included the following: In millions June 30, December 31, Deferred income taxes $ 767 $ 625 Operating lease assets 514 492 Corporate owned life insurance 409 390 Other 540 633 Other assets $ 2,230 $ 2,140 Other accrued expenses included the following: In millions June 30, December 31, Marketing accruals $ 348 $ 316 Other taxes payable 233 224 Income taxes payable 202 173 Current portion of operating lease liabilities 135 132 Other 719 620 Other accrued expenses $ 1,637 $ 1,465 Other liabilities included the following: In millions June 30, December 31, Accrued product warranty (1) $ 778 $ 744 Deferred income taxes 615 649 Pensions 441 445 Operating lease liabilities 386 368 Accrued compensation 183 184 Mark-to-market valuation on interest rate derivatives 138 151 Other postretirement benefits 138 141 Long-term income taxes 116 192 Other long-term liabilities 511 437 Other liabilities $ 3,306 $ 3,311 (1) See NOTE 10, "PRODUCT WARRANTY LIABILITY," to our Condensed Consolidated Financial Statements for additional information.

DEBT

DEBT	3 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 9. DEBT Loans Payable and Commercial Paper Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions June 30, December 31, Loans payable (1) $ 419 $ 210 Commercial paper (2) 1,617 2,574 (1) Loans payable consist primarily of notes payable to various domestic and international financial institutions. It is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate. (2) The weighted-average interest rate, inclusive of all brokerage fees, was 5.14 percent and 4.27 percent at June 30, 2023 and December 31, 2022, respectively. 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. These programs facilitate the private placement of unsecured short-term debt through third-party brokers. We intend to use the net proceeds from the commercial paper borrowings for acquisitions and general corporate purposes. Revolving Credit Facilities On June 5, 2023, we entered into an amended and restated 364-day credit agreement that allows us to borrow up to $2.0 billion of unsecured funds at any time prior to June 3, 2024. This credit agreement amended and restated the prior $1.5 billion 364-day credit facility that matured on August 16, 2023. In connection with the 364-day credit agreement, effective June 5, 2023, we terminated our $500 million incremental 364-day credit agreement dated August 17, 2022. We have access to committed credit facilities totaling $4.0 billion, including our $2.0 billion 364-day facility that expires June 3, 2024, and our $2.0 billion five-year facility that expires on August 18, 2026. We intend to maintain credit facilities at the current or higher aggregate amounts by renewing or replacing these facilities at or before expiration. These revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings and general corporate purposes. There were no outstanding borrowings under these facilities at June 30, 2023 and December 31, 2022. At June 30, 2023, the $1.6 billion of outstanding commercial paper effectively reduced the $4.0 billion of revolving credit capacity to $2.4 billion. At June 30, 2023, we also had an additional $221 million available for borrowings under our international and other domestic credit facilities. On May 26, 2023, Atmus borrowed $50 million of its $400 million revolving credit facility. See "Atmus Credit Agreement" section below for additional details. Long-term Debt A summary of long-term debt was as follows: In millions Interest Rate June 30, December 31, Long-term debt Senior notes, due 2023 (1) 3.65% $ 500 $ 500 Hydrogenics promissory notes, due 2024 and 2025 (2) —% 160 — Term loan, due 2025 (3) Variable 1,400 1,550 Senior notes, due 2025 (4) 0.75% 500 500 Atmus revolving credit facility, due 2027 (5) Variable 50 — Atmus term loan, due 2027 (5) Variable 600 — Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 (4) 1.50% 850 850 Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 650 Debentures, due 2098 (6) 5.65% 165 165 Other debt 68 121 Unamortized discount and deferred issuance costs (77) (64) Fair value adjustments due to hedge on indebtedness (121) (122) Finance leases 111 113 Total long-term debt 5,664 5,071 Less: Current maturities of long-term debt 575 573 Long-term debt $ 5,089 $ 4,498 (1) Senior notes, due 2023, are classified as current maturities of long-term debt. (2) See NOTE 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information. (3) During the first six months of 2023, we paid down $150 million of the term loan. (4) 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" in NOTE 13, "DERIVATIVES," to our Condensed Consolidated Financial Statements for additional information. (5) See "Atmus Credit Agreement" section below for additional information. (6) 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 $ 550 $ 98 $ 2,016 $ 9 $ 715 Fair Value of Debt Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows: In millions June 30, December 31, Fair value of total debt (1) $ 7,280 $ 7,400 Carrying value of total debt 7,700 7,855 (1) The fair value of debt is derived from Level 2 input measures. Atmus Credit Agreement On February 15, 2023, certain of our subsidiaries entered into an amendment to the $1.0 billion credit agreement (Credit Agreement), consisting of a $400 million revolving credit facility and a $600 million term loan facility, in anticipation of the separation of our filtration business, which extended the date on which the Credit Agreement terminates from March 30, 2023 to June 30, 2023. On May 26, 2023, Atmus drew down the entire $600 million term loan facility and borrowed $50 million under the revolving credit facility. Borrowings under the Credit Agreement mature in September 2027 and 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 bear interest at adjusted term Secured Overnight Financing Rate (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. The Credit Agreement contains customary events of default and financial and other covenants, including maintaining a net leverage ratio of 4.0 to 1.0 and a minimum interest coverage ratio of 3.0 to 1.0. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information.

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	6 Months Ended
	Jun. 30, 2023
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 10. PRODUCT WARRANTY LIABILITY A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued product campaigns, was as follows: Six months ended June 30, In millions 2023 2022 Balance, beginning of year $ 2,477 $ 2,425 Provision for base warranties issued 301 267 Deferred revenue on extended warranty contracts sold 166 145 Provision for product campaigns issued 12 65 Payments made during period (283) (289) Amortization of deferred revenue on extended warranty contracts (152) (146) Changes in estimates for pre-existing product warranties and campaigns 22 (47) Acquisitions — 97 Foreign currency translation adjustments and other 2 9 Balance, end of period $ 2,545 $ 2,526 We recognized supplier recoveries of $2 million and $12 million for the three and six months ended June 30, 2023, compared with $10 million and $23 million for the comparable periods in 2022. Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions June 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 285 $ 290 Current portion of deferred revenue Long-term portion 731 717 Deferred revenue Total $ 1,016 $ 1,007 Product warranty Current portion $ 751 $ 726 Current portion of accrued product warranty Long-term portion 778 744 Other liabilities Total $ 1,529 $ 1,470 Total warranty accrual $ 2,545 $ 2,477

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to numerous lawsuits and claims arising out of the ordinary course of our business, including actions related to product liability; personal injury; the use and performance of our products; warranty matters; product recalls; patent, trademark or other intellectual property infringement; contractual liability; the conduct of our business; tax reporting in foreign jurisdictions; distributor termination; workplace safety; 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 (OFAC). 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, in compliance with U.S. and other applicable laws. We received OFAC authorization on May 26, 2023. We are now waiting on approval from the Office of Financial Sanctions Implementation in the U.K., at which time we are able to execute the termination agreements with KAMAZ necessary to transfer our shares to KAMAZ and exit our unconsolidated joint venture with KAMAZ. 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. Most recently, the regulators have also raised concerns regarding the completeness of our disclosures in our certification applications for RAM 2500 and 3500 trucks for model years 2013 through 2023. 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 improvements and seek to reach further resolutions as part of our ongoing commitment to compliance. Based upon our discussions to date with the regulators which are continuing, such resolutions may involve our agreeing to one or more consent decrees and paying civil penalties. Due to the presence of many unknown facts and circumstances, we are not yet able to estimate any further financial impact of these matters. The consequences resulting from our formal review and these regulatory processes likely will have a material adverse impact on our results of operations and cash flows, however we cannot yet reasonably estimate a loss or range of loss. Guarantees and Commitments Periodically, we enter into guarantee arrangements, including guarantees of non-U.S. distributor financings, residual value guarantees on equipment under operating leases and other miscellaneous guarantees of joint ventures or third-party obligations. At June 30, 2023, 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 June 30, 2023, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $160 million. These arrangements enable us to secure supplies of critical components and IT services. We do not currently anticipate paying any penalties under these contracts. We enter into physical forward contracts with suppliers of platinum and palladium to purchase certain volumes of the commodities at contractually stated prices for various periods, which generally fall within two years. At June 30, 2023, the total commitments under these contracts were $60 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 $145 million at June 30, 2023. Indemnifications Periodically, we enter into various contractual arrangements where we agree to indemnify a third-party against certain types of losses. Common types of indemnities include: • product liability and license, patent or trademark indemnifications; • asset sale agreements where we agree to indemnify the purchaser against future environmental exposures related to the asset sold; and • any contractual agreement where we agree to indemnify the counterparty for losses suffered as a result of a misrepresentation in the contract. We regularly evaluate the probability of having to incur costs associated with these indemnities and accrue for expected losses that are probable. Because the indemnifications are not related to specified known liabilities and due to their uncertain nature, we are unable to estimate the maximum amount of the potential loss associated with these indemnifications.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 12. ACCUMULATED OTHER COMPREHENSIVE LOSS Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended: In millions Change in pension and OPEB plans Foreign currency Unrealized gain Total Noncontrolling Total Balance at March 31, 2023 $ (436) $ (1,473) $ 86 $ (1,823) Other comprehensive income (loss) before reclassifications Before-tax amount — (111) 18 (93) $ (2) $ (95) Tax benefit (expense) — 3 (2) 1 — 1 After-tax amount — (108) 16 (92) (2) (94) Amounts reclassified from accumulated other comprehensive income (loss) (1) 2 — (4) (2) — (2) Net current period other comprehensive income (loss) 2 (108) 12 (94) $ (2) $ (96) Balance at June 30, 2023 $ (434) $ (1,581) $ 98 $ (1,917) Balance at March 31, 2022 $ (330) $ (1,196) $ 11 $ (1,515) Other comprehensive income (loss) before reclassifications Before-tax amount — (235) 59 (176) $ (15) $ (191) Tax benefit (expense) 1 5 (15) (9) — (9) After-tax amount 1 (230) 44 (185) (15) (200) Amounts reclassified from accumulated other comprehensive income (loss) (1) 5 — (1) 4 — 4 Net current period other comprehensive income (loss) 6 (230) 43 (2) (181) $ (15) $ (196) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. (2) Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 13, "DERIVATIVES," for additional information. Following are the changes in accumulated other comprehensive income (loss) by component for the six months ended: In millions Change in pension and OPEB plans Foreign currency Unrealized gain (loss) on derivatives Total Noncontrolling Total Balance at December 31, 2022 $ (427) $ (1,552) $ 89 $ (1,890) Other comprehensive income (loss) before reclassifications Before-tax amount (13) (36) 15 (34) $ 1 $ (33) Tax benefit (expense) 2 7 (1) 8 — 8 After-tax amount (11) (29) 14 (26) 1 (25) Amounts reclassified from accumulated other comprehensive income (loss) (1) 4 — (5) (1) — (1) Net current period other comprehensive (loss) income (7) (29) 9 (27) $ 1 $ (26) Balance at June 30, 2023 $ (434) $ (1,581) $ 98 $ (1,917) Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount 14 (224) 95 (115) $ (23) $ (138) Tax (expense) benefit (3) 6 (22) (19) — (19) After-tax amount 11 (218) 73 (134) (23) (157) Amounts reclassified from accumulated other comprehensive income (loss) (1) 11 — (2) 9 — 9 Net current period other comprehensive income (loss) 22 (218) 71 (2) (125) $ (23) $ (148) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. (2) Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 13, "DERIVATIVES," for additional information.

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure	NOTE 13. 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 $4.4 billion and $3.6 billion at June 30, 2023 and December 31, 2022, respectively. The following currencies comprise 86 percent and 88 percent of outstanding foreign currency forward contracts at June 30, 2023 and December 31, 2022, respectively: British pound, Chinese renminbi, 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 the third quarter of 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 June 30, 2023, was $741 million. The following table summarizes the net investment hedge activity in accumulated other comprehensive loss (AOCL): Three months ended Six months ended June 30, June 30, In millions 2023 2023 Type of Derivative Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Foreign exchange forwards $ (13) $ — $ (28) $ — 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. We designated the swaps as fair value hedges. The gain or loss on these derivative instruments, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current income as interest expense. The net swap settlements that accrue each period are also reported in the Condensed Consolidated Financial Statements as interest expense. In March 2023, we settled a portion of our 2021 interest rate swaps with a notional amount of $100 million. The $7 million loss on settlement will be amortized over the remaining term of the related debt. The following table summarizes the gains and losses: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Type of Swap Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Interest rate swaps (1) $ (20) $ 16 $ (39) $ 34 $ 7 $ (6) $ (111) $ 114 (1) The difference between the gain (loss) on swaps and borrowings represents 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 are 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. In February 2023, we settled certain rate lock agreements with notional amounts totaling $100 million for $34 million. The $83 million of gains on settlements will remain in other comprehensive income and will be amortized over the term of the anticipated new debt as discussed above. The following table summarizes the interest rate lock activity in AOCL: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 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 Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate locks $ 10 $ — $ 43 $ — $ 1 $ — $ 82 $ — Cash Flow Hedging The following table summarizes the effect on our Condensed 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. Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Gain (loss) reclassified from AOCL into income - Net sales (1) $ 4 $ (1) $ 5 $ 2 Gain (loss) reclassified from AOCL into income - Cost of sales (1)(2) 1 1 1 (1) (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 Condensed Consolidated Statements of Net Income for derivative instruments not designated as hedging instruments: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 (Loss) gain recognized in income - Cost of sales (1) $ (1) $ 3 $ (3) $ 2 Loss recognized in income - Other income (expense), net (1) (44) (31) (17) (23) (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 Condensed Consolidated Balance Sheets : Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments In millions June 30, December 31, June 30, December 31, Notional amount $ 2,908 $ 3,051 $ 3,691 $ 2,900 Derivative assets Prepaid expenses and other current assets $ 17 $ 18 $ 20 $ 27 Other assets 47 80 — — Total derivative assets (1) $ 64 $ 98 $ 20 $ 27 Derivative liabilities Other accrued expenses $ 21 $ 19 $ 17 $ 3 Other liabilities 138 151 — — Total derivative liabilities (1) $ 159 $ 170 $ 17 $ 3 (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 the six months ended June 30, 2023, or the year ended December 31, 2022. We elected to present our derivative contracts on a gross basis in our Condensed Consolidated Balance Sheets . Had we chosen to present on a net basis, we would have derivatives in a net asset position of $44 million and $52 million and derivatives in a net liability position of $136 million and $100 million at June 30, 2023 and December 31, 2022, respectively.

RUSSIAN OPERATIONS

RUSSIAN OPERATIONS	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring, Impairment, and Other Activities Disclosure	NOTE 14. 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 joint venture with KAMAZ (a Russian truck manufacturer) and direct sales into Russia from our other business segments. As a result of the indefinite suspension of operations, we evaluated the recoverability of assets in Russia and assessed other potential liabilities. We experienced an inability to collect customer receivables and may be the subject of litigation as a consequence of our indefinite suspension of commercial operations in Russia. The following summarizes the (recoveries) costs associated with the suspension of our Russian operations in our Condensed Consolidated Statements of Net Income: Three months ended Six months ended In millions June 30, June 30, Statement of Net Income Location Inventory write-downs $ (40) $ 19 Cost of sales Accounts receivable reserves — 43 Other operating expense, net Impairment and other joint venture costs — 31 Equity, royalty and interest income from investees Other (7) 18 Other operating expense, net Total $ (47) $ 111 For the three and six months ended June 30, 2023, there were no material additional costs. We will continue to evaluate the situation as conditions evolve and may take additional actions as deemed necessary in future periods.

FORMATION OF ATMUS AND IPO

FORMATION OF ATMUS AND IPO	6 Months Ended
	Jun. 30, 2023
Business Acquisition [Line Items]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 16. ACQUISITIONS Acquisitions for the six months ended June 30, 2023 and 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) Type of Acquisition (2) Goodwill Acquired Intangibles Recognized (3) 2023 Hydrogenics Corporation (Hydrogenics) 06/29/23 19% $ 287 $ 48 $ 335 EQUITY $ — $ — Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) 04/03/23 100% 150 — 150 COMB 25 — 2022 (4) Jacobs Vehicle Systems (Jacobs) 04/08/22 100% $ 345 $ — $ 345 COMB $ 108 $ 164 Cummins Westport, Inc. (Westport JV) 02/07/22 50% 42 — 42 COMB — 20 (1) The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. Hydrogenics entered into three non-interest-bearing promissory notes with $175 million paid on July 31, 2023, and the remaining $160 million due in three installments through 2025. (2) All results from acquired entities were included in segment results subsequent to the acquisition date. Previously consolidated entities were accounted for as equity transactions (EQUITY). Newly consolidated entities were accounted for as business combinations (COMB). (3) Intangible assets acquired in the business combination were mostly customer, technology and trade name related. (4) See Note 2, "ACQUISITIONS , " of the Notes to the Consolidated Financial Statements of our 2022 Form 10-K for additional information on prior year acquisitions. Hydrogenics Corporation - Redeemable Noncontrolling Interest On June 29, 2023, a share purchase agreement was executed with a 19 percent minority shareholder in one of our businesses, Hydrogenics Corporation (Hydrogenics), whereby we agreed to pay the minority shareholder $335 million for their 19 percent ownership, including the settlement of shareholder loans of $48 million. As part of the share purchase agreement, Hydrogenics entered into three non-interest-bearing promissory notes with $175 million paid on July 31, 2023, and the remaining $160 million due in three installments through 2025. We recorded the non-interest-bearing promissory notes at their present value in our Condensed Consolidated Financial Statements . The short-term amount was $175 million and recorded in loans payable at June 30, 2023. The long-term amount, net of unamortized debt discount, was $145 million and reflected in long-term debt at June 30, 2023. Prior to the execution of this transaction, the minority shareholder had, among other rights and subject to related obligations and restrictive covenants, rights that were 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). The estimated fair value of the put option was recorded as redeemable noncontrolling interests in our Condensed Consolidated Financial Statements with an offset to additional paid-in capital, and at December 31, 2022, the balance was $258 million. The redeemable noncontrolling interest balance was reduced to zero as of the acquisition date. Teksid Hierro de Mexico, S.A. de C.V. On April 3, 2023, we purchased 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 $150 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. Since we are the primary customer of the foundry, the acquisition is not expected to result in material incremental sales to our business. Approximately $90 million of the purchase price was allocated to property, plant and equipment. The remainder was allocated primarily to working capital assets and liabilities (including approximately $16 million of cash and cash equivalents) and resulted in approximately $25 million of goodwill, none of which is deductible for tax purposes. 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 are related to deferred taxes and other tax contingencies. The results of the business were reported in our Engine segment. Pro forma financial information for the acquisition was not presented as the effects are not material to our Condensed Consolidated Financial Statements. Meritor, Inc. During the second quarter of 2023, we finalized our accounting for the Meritor, Inc. acquisition. The primary components of the change were to increase contingent liabilities by $62 million offset by finalization of deferred taxes and tax reserves, with a net increase to goodwill of $26 million. There was no impact to the Condensed Consolidated Statements of Net Income for any of the changes. Pending Acquisition
Atmus Filtration Technologies Inc.
Business Acquisition [Line Items]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 15. FORMATION OF ATMUS AND IPO On May 23, 2023, in connection with the Atmus IPO, Cummins issued approximately $350 million of commercial paper with certain lenders. On May 26, 2023, Atmus shares began trading on the New York Stock Exchange under the symbol "ATMU." The IPO was completed on May 30, 2023, whereby Cummins exchanged 19.5 percent (approximately 16 million shares) of its ownership in Atmus, at $19.50 per share, to retire $299 million of the commercial paper as proceeds from the offering through a non-cash transaction. In connection with the completion of the IPO, through a series of asset and equity contributions, we transferred the filtration business to Atmus. In exchange, Atmus transferred consideration of approximately $650 million to Cummins, which consisted primarily of the net proceeds from a term loan facility and revolver executed by Atmus during May 2023. The commercial paper issued and retired through the IPO proceeds, coupled with the $650 million received, is intended to be used for the retirement of our historical debt, dividends and share repurchases. The difference between the commercial paper retired from the IPO, other IPO related fees and the net book value of our divested interest was $285 million and was recorded as an offset to additional paid-in capital. Of our consolidated cash and cash equivalents at June 30, 2023, $134 million is retained by Atmus for its working capital purposes. See NOTE 9 , " DEBT ," to our Condensed Consolidated Financial Statements for additional information. We will continue to consolidate the financial position and results of Atmus, so long as we retain control. The earnings attributable to the divested, noncontrolling interest for the period from IPO until June 30, 2023, were not material for the three months ended June 30, 2023. At June 30, 2023, the noncontrolling interest associated with Atmus is reflected in noncontrolling interests in our Condensed Consolidated Balance Sheets. Subject to market conditions, we intend to make a tax-free split-off of Atmus, pursuant to which Cummins will offer its stockholders the option to exchange their shares of Cummins common stock for shares of Atmus common stock in an exchange offer.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2023
Business Combinations [Abstract]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 16. ACQUISITIONS Acquisitions for the six months ended June 30, 2023 and 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) Type of Acquisition (2) Goodwill Acquired Intangibles Recognized (3) 2023 Hydrogenics Corporation (Hydrogenics) 06/29/23 19% $ 287 $ 48 $ 335 EQUITY $ — $ — Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) 04/03/23 100% 150 — 150 COMB 25 — 2022 (4) Jacobs Vehicle Systems (Jacobs) 04/08/22 100% $ 345 $ — $ 345 COMB $ 108 $ 164 Cummins Westport, Inc. (Westport JV) 02/07/22 50% 42 — 42 COMB — 20 (1) The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. Hydrogenics entered into three non-interest-bearing promissory notes with $175 million paid on July 31, 2023, and the remaining $160 million due in three installments through 2025. (2) All results from acquired entities were included in segment results subsequent to the acquisition date. Previously consolidated entities were accounted for as equity transactions (EQUITY). Newly consolidated entities were accounted for as business combinations (COMB). (3) Intangible assets acquired in the business combination were mostly customer, technology and trade name related. (4) See Note 2, "ACQUISITIONS , " of the Notes to the Consolidated Financial Statements of our 2022 Form 10-K for additional information on prior year acquisitions. Hydrogenics Corporation - Redeemable Noncontrolling Interest On June 29, 2023, a share purchase agreement was executed with a 19 percent minority shareholder in one of our businesses, Hydrogenics Corporation (Hydrogenics), whereby we agreed to pay the minority shareholder $335 million for their 19 percent ownership, including the settlement of shareholder loans of $48 million. As part of the share purchase agreement, Hydrogenics entered into three non-interest-bearing promissory notes with $175 million paid on July 31, 2023, and the remaining $160 million due in three installments through 2025. We recorded the non-interest-bearing promissory notes at their present value in our Condensed Consolidated Financial Statements . The short-term amount was $175 million and recorded in loans payable at June 30, 2023. The long-term amount, net of unamortized debt discount, was $145 million and reflected in long-term debt at June 30, 2023. Prior to the execution of this transaction, the minority shareholder had, among other rights and subject to related obligations and restrictive covenants, rights that were 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). The estimated fair value of the put option was recorded as redeemable noncontrolling interests in our Condensed Consolidated Financial Statements with an offset to additional paid-in capital, and at December 31, 2022, the balance was $258 million. The redeemable noncontrolling interest balance was reduced to zero as of the acquisition date. Teksid Hierro de Mexico, S.A. de C.V. On April 3, 2023, we purchased 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 $150 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. Since we are the primary customer of the foundry, the acquisition is not expected to result in material incremental sales to our business. Approximately $90 million of the purchase price was allocated to property, plant and equipment. The remainder was allocated primarily to working capital assets and liabilities (including approximately $16 million of cash and cash equivalents) and resulted in approximately $25 million of goodwill, none of which is deductible for tax purposes. 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 are related to deferred taxes and other tax contingencies. The results of the business were reported in our Engine segment. Pro forma financial information for the acquisition was not presented as the effects are not material to our Condensed Consolidated Financial Statements. Meritor, Inc. During the second quarter of 2023, we finalized our accounting for the Meritor, Inc. acquisition. The primary components of the change were to increase contingent liabilities by $62 million offset by finalization of deferred taxes and tax reserves, with a net increase to goodwill of $26 million. There was no impact to the Condensed Consolidated Statements of Net Income for any of the changes. Pending Acquisition

OPERATING SEGMENTS

OPERATING SEGMENTS	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 17. OPERATING SEGMENTS Operating segments under GAAP are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (CODM), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is the Chief Executive Officer. Our reportable operating segments consist of Components, Engine, Distribution, Power Systems and Accelera. This reporting structure is organized according to the products and markets each segment serves. The Components segment sells filtration products, aftertreatment systems, turbochargers, electronics, fuel systems, automated transmissions, axles, drivelines, brakes and suspension systems. The Engine segment produces engines (15 liters and smaller) and associated parts for sale to customers in on-highway and various off-highway markets. Our engines are used in trucks of all sizes, buses and recreational vehicles, as well as in various industrial applications, including construction, agriculture, power generation systems and other off-highway applications. The Distribution segment includes wholly-owned and partially-owned distributorships engaged in wholesaling engines, generator sets and service parts, as well as performing service and repair activities on our products and maintaining relationships with various OEMs throughout the world. The 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 Accelera 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 Accelera 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 basis for the CODM to evaluate the performance of each of our reportable operating segments. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. Segment amounts exclude certain expenses not specifically identifiable to segments. The accounting policies of our operating segments are the same as those applied in our Condensed Consolidated Financial Statements. We prepared the financial results of our operating segments on a basis that is consistent with the manner in which we internally disaggregate financial information to assist in making internal operating decisions. We allocate certain common costs and expenses, primarily corporate functions, among segments differently than we would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as information technology, human resources, legal, finance and supply chain management. We do not allocate gains or losses of corporate owned life insurance and certain Atmus separation costs to individual segments. EBITDA may not be consistent with measures used by other companies. As previously announced, in March 2023, we rebranded our New Power segment as "Accelera" to better represent our commitment to zero-emission technologies. In addition, we moved our NPROXX joint venture from the Accelera segment to the Engine segment, which adjusted both the equity, royalty and interest income from investees and segment EBITDA line items for the current and prior year. We started to report results for the changes within our operating segments effective January 1, 2023, and reflected these changes in the historical periods presented. Summarized financial information regarding our reportable operating segments for the three and six months ended June 30, 2023 and 2022 is shown in the table below: In millions Components Engine Distribution Power Systems Accelera Total Segments Three months ended June 30, 2023 External sales $ 2,924 $ 2,263 $ 2,576 $ 794 $ 81 $ 8,638 Intersegment sales 501 725 19 663 4 1,912 Total sales 3,425 2,988 2,595 1,457 85 10,550 Research, development and engineering expenses 103 148 15 66 52 384 Equity, royalty and interest income (loss) from investees 24 71 24 18 (4) 133 Interest income 7 7 8 2 1 25 Segment EBITDA 486 (1) 425 299 201 (114) 1,297 Depreciation and amortization (2) 125 56 28 32 15 256 Three months ended June 30, 2022 External sales $ 1,477 $ 2,092 $ 2,247 $ 734 $ 36 $ 6,586 Intersegment sales 473 683 6 469 6 1,637 Total sales 1,950 2,775 2,253 1,203 42 8,223 Research, development and engineering expenses 73 116 13 58 39 299 Equity, royalty and interest income (loss) from investees 9 58 21 10 (3) 95 Interest income 2 1 3 1 — 7 Russian suspension (recoveries) costs (3) (2) 1 (45) (1) — (47) Segment EBITDA 352 421 297 128 (79) 1,119 Depreciation and amortization (2) 49 49 29 31 8 166 Six months ended June 30, 2023 External sales $ 5,967 $ 4,515 $ 4,975 $ 1,473 $ 161 $ 17,091 Intersegment sales 1,015 1,459 26 1,327 9 3,836 Total sales 6,982 5,974 5,001 2,800 170 20,927 Research, development and engineering expenses 194 282 29 129 100 734 Equity, royalty and interest income (loss) from investees 45 136 48 31 (8) 252 Interest income 13 10 15 4 1 43 Segment EBITDA 993 (1) 882 634 420 (208) 2,721 Depreciation and amortization (2) 248 107 56 61 29 501 Six months ended June 30, 2022 External sales $ 2,994 $ 4,141 $ 4,358 $ 1,417 $ 61 $ 12,971 Intersegment sales 944 1,387 12 946 12 3,301 Total sales 3,938 5,528 4,370 2,363 73 16,272 Research, development and engineering expenses 149 225 26 122 75 597 Equity, royalty and interest income (loss) from investees 37 100 (4) 37 21 (4) 191 Interest income 3 5 5 2 — 15 Russian suspension costs (3) 4 33 (5) 55 19 — 111 Segment EBITDA 672 811 407 218 (144) 1,964 Depreciation and amortization (2) 92 100 57 62 15 326 (1) Includes $18 million and $30 million of costs associated with the IPO and separation of Atmus for the three and six months ended June 30, 2023, respectively. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information. (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $2 million and $2 million for the six months ended June 30, 2023 and June 30, 2022, respectively. A portion of depreciation expense is included in research, development and engineering expenses. (3) See NOTE 14, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (4) 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 indefinite suspension of our Russian operations. See NOTE 14, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (5) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above. A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 TOTAL SEGMENT EBITDA $ 1,297 $ 1,119 $ 2,721 $ 1,964 Intersegment eliminations and other (1) 7 (64) (56) (154) Less: Interest expense 99 34 186 51 Depreciation and amortization 256 166 501 326 INCOME BEFORE INCOME TAXES $ 949 $ 855 1,978 1,433 (1) Intersegment eliminations and other included $5 million and $11 million of costs associated with the IPO and separation of Atmus for the three and six month periods ended June 30, 2023, respectively and $24 million and $41 million for the comparable periods in 2022, respectively. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information.

RECENTLY ADOPTED AND RECENTLY I

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	NOTE 18. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In September 2022, the Financial Accounting Standards Board issued a standard related to the disclosure of additional information about the use of supplier finance programs. Under the new standard, entities are required to disclose (1) key terms of the programs, (2) the amount outstanding that remains unpaid as of the end of the period, including where amounts are recorded in the balance sheets and (3) an annual rollforward of those obligations, including the amount of obligations confirmed and the amount of obligations subsequently paid. We adopted the new standard on January 1, 2023, on a retrospective basis other than the rollforward, which we currently plan to early adopt on a prospective basis beginning with our 2023 annual financial statements. The adoption did not have a material impact on our financial statements. See "Supply Chain Financing" section in NOTE 1, "NATURE OF OPERATIONS AND BASIS OF PRESENTATION," for additional information.

NATURE OF OPERATIONS AND BASI_2

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share were as follows: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Options excluded 14,210 33,100 9,522 26,782
Schedule of Related Party Transactions	The following is a summary of sales to and purchases from nonconsolidated equity investees: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Sales to nonconsolidated equity investees $ 320 $ 281 $ 696 $ 625 Purchases from nonconsolidated equity investees 687 328 1,391 755 The following is a summary of accounts receivable from and accounts payable to nonconsolidated equity investees: In millions June 30, December 31, Balance Sheet Location Accounts receivable from nonconsolidated equity investees $ 466 $ 376 Accounts and notes receivable, net Accounts payable to nonconsolidated equity investees 332 292 Accounts payable (principally trade)

REVENUE RECOGNITION LONGTERM CO

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Contract with Customer, Contract Asset, Contract Liability, and Receivable	The following is a summary of our unbilled and deferred revenue and related activity: In millions June 30, December 31, Unbilled revenue $ 299 $ 257 Deferred revenue 1,956 1,848

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	6 Months Ended
	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 United States $ 4,937 $ 3,788 $ 9,739 $ 7,245 China 762 520 1,552 1,173 India 413 311 824 620 Other international 2,526 1,967 4,976 3,933 Total net sales $ 8,638 $ 6,586 $ 17,091 $ 12,971
Components
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Components segment external sales by business were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Axles and brakes $ 1,249 $ — $ 2,521 $ — Emission solutions 842 767 1,781 1,575 Atmus 341 319 683 627 Engine components 283 223 575 463 Automated transmissions 180 143 358 277 Software and electronics 29 25 49 52 Total sales $ 2,924 $ 1,477 $ 5,967 $ 2,994
Engine
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Market	Engine segment external sales by market were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Heavy-duty truck $ 856 $ 797 $ 1,716 $ 1,481 Medium-duty truck and bus 687 620 1,304 1,211 Light-duty automotive 444 425 885 912 Total on-highway 1,987 1,842 3,905 3,604 Off-highway 276 250 610 537 Total sales $ 2,263 $ 2,092 $ 4,515 $ 4,141
Distribution
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	Distribution segment external sales by region were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 North America $ 1,783 $ 1,491 $ 3,476 $ 2,862 Asia Pacific 265 242 504 486 Europe 213 246 407 521 China 112 99 213 181 Africa and Middle East 80 61 142 111 India 63 52 120 100 Latin America 60 56 113 97 Total sales $ 2,576 $ 2,247 $ 4,975 $ 4,358
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Parts $ 1,011 $ 987 $ 2,063 $ 1,913 Power generation 609 440 1,100 838 Engines 527 428 983 866 Service 429 392 829 741 Total sales $ 2,576 $ 2,247 $ 4,975 $ 4,358
Power Systems
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Power Systems segment external sales by product line were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Power generation $ 447 $ 408 $ 827 $ 807 Industrial 218 213 407 401 Generator technologies 129 113 239 209 Total sales $ 794 $ 734 $ 1,473 $ 1,417

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Schedule Benefit Plans Disclosures Cash Contributions	Contributions to these plans were as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Defined benefit pension contributions $ 6 $ 6 $ 94 $ 39 OPEB payments, net 5 6 9 16 Defined contribution pension plans 30 20 73 56
Components of net periodic pension and other postretirement benefit cost	The components of net periodic pension and OPEB expense (income) under our plans were as follows: Pension U.S. Plans U.K. Plans OPEB Three months ended June 30, In millions 2023 2022 2023 2022 2023 2022 Service cost $ 29 $ 34 $ 4 $ 8 $ — $ — Interest cost 42 22 18 9 2 1 Expected return on plan assets (69) (52) (27) (20) — — Amortization of prior service cost 1 — — — — — Recognized net actuarial loss 2 6 — — — — Net periodic benefit expense (income) $ 5 $ 10 $ (5) $ (3) $ 2 $ 1 Pension U.S. Plans U.K. Plans OPEB Six months ended June 30, In millions 2023 2022 2023 2022 2023 2022 Service cost $ 58 $ 68 $ 8 $ 16 $ — $ — Interest cost 84 44 35 18 4 2 Expected return on plan assets (138) (104) (52) (40) — — Amortization of prior service cost 1 — — — — — Recognized net actuarial loss (gain) 4 12 — 1 (1) — Net periodic benefit expense (income) $ 9 $ 20 $ (9) $ (5) $ 3 $ 2

EQUITY, ROYALTY AND INTEREST _2

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Tables)	6 Months Ended
	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Equity, royalty and interest income from investees	Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 18 $ 11 $ 37 $ 27 Chongqing Cummins Engine Company, Ltd. 13 7 22 16 Beijing Foton Cummins Engine Co., Ltd. 9 14 25 28 Tata Cummins, Ltd. 7 5 15 14 All other manufacturers 32 13 51 3 (1) Distribution entities Komatsu Cummins Chile, Ltda. 13 12 27 19 All other distributors 4 3 7 5 Cummins share of net income 96 65 184 112 Royalty and interest income 37 30 68 79 Equity, royalty and interest income from investees $ 133 $ 95 $ 252 $ 191 (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 indefinite suspension of our Russian operations. See NOTE 14, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Summary of marketable securities	A summary of marketable securities, all of which were classified as current, was as follows: June 30, December 31, In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 244 $ (5) $ 239 $ 238 $ (5) $ 233 Certificates of deposit 242 — 242 209 — 209 Equity mutual funds 29 2 31 25 3 28 Debt securities — — — 2 — 2 Marketable securities $ 515 $ (3) $ 512 $ 474 $ (2) $ 472 (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 Condensed Consolidated Statements of Net Income .
Schedule of proceeds from sales and maturities	The proceeds from sales and maturities of marketable securities were as follows: Six months ended June 30, In millions 2023 2022 Proceeds from sales of marketable securities $ 509 $ 346 Proceeds from maturities of marketable securities 111 115 Investments in marketable securities - liquidations $ 620 $ 461

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories included the following: In millions June 30, December 31, Finished products $ 3,169 $ 2,917 Work-in-process and raw materials 3,102 2,926 Inventories at FIFO cost 6,271 5,843 Excess of FIFO over LIFO (245) (240) Inventories $ 6,026 $ 5,603

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	6 Months Ended
	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Schedule of Other Assets	Other assets included the following: In millions June 30, December 31, Deferred income taxes $ 767 $ 625 Operating lease assets 514 492 Corporate owned life insurance 409 390 Other 540 633 Other assets $ 2,230 $ 2,140
Accrued Expenses	Other accrued expenses included the following: In millions June 30, December 31, Marketing accruals $ 348 $ 316 Other taxes payable 233 224 Income taxes payable 202 173 Current portion of operating lease liabilities 135 132 Other 719 620 Other accrued expenses $ 1,637 $ 1,465
Other Noncurrent Liabilities	Other liabilities included the following: In millions June 30, December 31, Accrued product warranty (1) $ 778 $ 744 Deferred income taxes 615 649 Pensions 441 445 Operating lease liabilities 386 368 Accrued compensation 183 184 Mark-to-market valuation on interest rate derivatives 138 151 Other postretirement benefits 138 141 Long-term income taxes 116 192 Other long-term liabilities 511 437 Other liabilities $ 3,306 $ 3,311 (1) See NOTE 10, "PRODUCT WARRANTY LIABILITY," to our Condensed Consolidated Financial Statements for additional information.

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Short-term Debt	Loans payable, commercial paper and the related weighted-average interest rates were as follows: In millions June 30, December 31, Loans payable (1) $ 419 $ 210 Commercial paper (2) 1,617 2,574 (1) Loans payable consist primarily of notes payable to various domestic and international financial institutions. It is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate. (2) The weighted-average interest rate, inclusive of all brokerage fees, was 5.14 percent and 4.27 percent at June 30, 2023 and December 31, 2022, respectively.
Summary of long-term debt	A summary of long-term debt was as follows: In millions Interest Rate June 30, December 31, Long-term debt Senior notes, due 2023 (1) 3.65% $ 500 $ 500 Hydrogenics promissory notes, due 2024 and 2025 (2) —% 160 — Term loan, due 2025 (3) Variable 1,400 1,550 Senior notes, due 2025 (4) 0.75% 500 500 Atmus revolving credit facility, due 2027 (5) Variable 50 — Atmus term loan, due 2027 (5) Variable 600 — Debentures, due 2027 6.75% 58 58 Debentures, due 2028 7.125% 250 250 Senior notes, due 2030 (4) 1.50% 850 850 Senior notes, due 2043 4.875% 500 500 Senior notes, due 2050 2.60% 650 650 Debentures, due 2098 (6) 5.65% 165 165 Other debt 68 121 Unamortized discount and deferred issuance costs (77) (64) Fair value adjustments due to hedge on indebtedness (121) (122) Finance leases 111 113 Total long-term debt 5,664 5,071 Less: Current maturities of long-term debt 575 573 Long-term debt $ 5,089 $ 4,498 (1) Senior notes, due 2023, are classified as current maturities of long-term debt. (2) See NOTE 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information. (3) During the first six months of 2023, we paid down $150 million of the term loan. (4) 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" in NOTE 13, "DERIVATIVES," to our Condensed Consolidated Financial Statements for additional information. (5) See "Atmus Credit Agreement" section below for additional information. (6) 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 $ 550 $ 98 $ 2,016 $ 9 $ 715
Fair value and carrying value of total debt	Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows: In millions June 30, December 31, Fair value of total debt (1) $ 7,280 $ 7,400 Carrying value of total debt 7,700 7,855 (1) The fair value of debt is derived from Level 2 input measures.

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2023
Product Warranties Disclosures [Abstract]
Summary of activity in the product warranty account	A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued product campaigns, was as follows: Six months ended June 30, In millions 2023 2022 Balance, beginning of year $ 2,477 $ 2,425 Provision for base warranties issued 301 267 Deferred revenue on extended warranty contracts sold 166 145 Provision for product campaigns issued 12 65 Payments made during period (283) (289) Amortization of deferred revenue on extended warranty contracts (152) (146) Changes in estimates for pre-existing product warranties and campaigns 22 (47) Acquisitions — 97 Foreign currency translation adjustments and other 2 9 Balance, end of period $ 2,545 $ 2,526
Warranty related deferred revenue and the long-term portion of the warranty liability	Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: In millions June 30, December 31, Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 285 $ 290 Current portion of deferred revenue Long-term portion 731 717 Deferred revenue Total $ 1,016 $ 1,007 Product warranty Current portion $ 751 $ 726 Current portion of accrued product warranty Long-term portion 778 744 Other liabilities Total $ 1,529 $ 1,470 Total warranty accrual $ 2,545 $ 2,477

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Changes in accumulated other comprehensive loss by component	Following are the changes in accumulated other comprehensive income (loss) by component for the three months ended: In millions Change in pension and OPEB plans Foreign currency Unrealized gain Total Noncontrolling Total Balance at March 31, 2023 $ (436) $ (1,473) $ 86 $ (1,823) Other comprehensive income (loss) before reclassifications Before-tax amount — (111) 18 (93) $ (2) $ (95) Tax benefit (expense) — 3 (2) 1 — 1 After-tax amount — (108) 16 (92) (2) (94) Amounts reclassified from accumulated other comprehensive income (loss) (1) 2 — (4) (2) — (2) Net current period other comprehensive income (loss) 2 (108) 12 (94) $ (2) $ (96) Balance at June 30, 2023 $ (434) $ (1,581) $ 98 $ (1,917) Balance at March 31, 2022 $ (330) $ (1,196) $ 11 $ (1,515) Other comprehensive income (loss) before reclassifications Before-tax amount — (235) 59 (176) $ (15) $ (191) Tax benefit (expense) 1 5 (15) (9) — (9) After-tax amount 1 (230) 44 (185) (15) (200) Amounts reclassified from accumulated other comprehensive income (loss) (1) 5 — (1) 4 — 4 Net current period other comprehensive income (loss) 6 (230) 43 (2) (181) $ (15) $ (196) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. (2) Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 13, "DERIVATIVES," for additional information. Following are the changes in accumulated other comprehensive income (loss) by component for the six months ended: In millions Change in pension and OPEB plans Foreign currency Unrealized gain (loss) on derivatives Total Noncontrolling Total Balance at December 31, 2022 $ (427) $ (1,552) $ 89 $ (1,890) Other comprehensive income (loss) before reclassifications Before-tax amount (13) (36) 15 (34) $ 1 $ (33) Tax benefit (expense) 2 7 (1) 8 — 8 After-tax amount (11) (29) 14 (26) 1 (25) Amounts reclassified from accumulated other comprehensive income (loss) (1) 4 — (5) (1) — (1) Net current period other comprehensive (loss) income (7) (29) 9 (27) $ 1 $ (26) Balance at June 30, 2023 $ (434) $ (1,581) $ 98 $ (1,917) Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount 14 (224) 95 (115) $ (23) $ (138) Tax (expense) benefit (3) 6 (22) (19) — (19) After-tax amount 11 (218) 73 (134) (23) (157) Amounts reclassified from accumulated other comprehensive income (loss) (1) 11 — (2) 9 — 9 Net current period other comprehensive income (loss) 22 (218) 71 (2) (125) $ (23) $ (148) Balance at June 30, 2022 $ (324) $ (1,426) $ 54 $ (1,696) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure. (2) Primarily related to interest rate lock activity. See the Interest Rate Risk section in NOTE 13, "DERIVATIVES," for additional information.

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2023
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 accumulated other comprehensive loss (AOCL): Three months ended Six months ended June 30, June 30, In millions 2023 2023 Type of Derivative Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Foreign exchange forwards $ (13) $ — $ (28) $ — The following table summarizes the interest rate lock activity in AOCL: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 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 Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate locks $ 10 $ — $ 43 $ — $ 1 $ — $ 82 $ —
Schedule of Interest Rate Derivatives	The following table summarizes the gains and losses: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Type of Swap Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Gain (Loss) Gain (Loss) on Borrowings Interest rate swaps (1) $ (20) $ 16 $ (39) $ 34 $ 7 $ (6) $ (111) $ 114 (1) The difference between the gain (loss) on swaps and borrowings represents hedge ineffectiveness.
Derivative Instruments, Gain (Loss)	The following table summarizes the effect on our Condensed 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. Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 Gain (loss) reclassified from AOCL into income - Net sales (1) $ 4 $ (1) $ 5 $ 2 Gain (loss) reclassified from AOCL into income - Cost of sales (1)(2) 1 1 1 (1) (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 Condensed Consolidated Statements of Net Income for derivative instruments not designated as hedging instruments: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 (Loss) gain recognized in income - Cost of sales (1) $ (1) $ 3 $ (3) $ 2 Loss recognized in income - Other income (expense), net (1) (44) (31) (17) (23) (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 Condensed Consolidated Balance Sheets : Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments In millions June 30, December 31, June 30, December 31, Notional amount $ 2,908 $ 3,051 $ 3,691 $ 2,900 Derivative assets Prepaid expenses and other current assets $ 17 $ 18 $ 20 $ 27 Other assets 47 80 — — Total derivative assets (1) $ 64 $ 98 $ 20 $ 27 Derivative liabilities Other accrued expenses $ 21 $ 19 $ 17 $ 3 Other liabilities 138 151 — — Total derivative liabilities (1) $ 159 $ 170 $ 17 $ 3 (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 the six months ended June 30, 2023, or the year ended December 31, 2022.

RUSSIAN OPERATIONS (Tables)

RUSSIAN OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following summarizes the (recoveries) costs associated with the suspension of our Russian operations in our Condensed Consolidated Statements of Net Income: Three months ended Six months ended In millions June 30, June 30, Statement of Net Income Location Inventory write-downs $ (40) $ 19 Cost of sales Accounts receivable reserves — 43 Other operating expense, net Impairment and other joint venture costs — 31 Equity, royalty and interest income from investees Other (7) 18 Other operating expense, net Total $ (47) $ 111

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	Acquisitions for the six months ended June 30, 2023 and 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) Type of Acquisition (2) Goodwill Acquired Intangibles Recognized (3) 2023 Hydrogenics Corporation (Hydrogenics) 06/29/23 19% $ 287 $ 48 $ 335 EQUITY $ — $ — Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) 04/03/23 100% 150 — 150 COMB 25 — 2022 (4) Jacobs Vehicle Systems (Jacobs) 04/08/22 100% $ 345 $ — $ 345 COMB $ 108 $ 164 Cummins Westport, Inc. (Westport JV) 02/07/22 50% 42 — 42 COMB — 20 (1) The "Total Purchase Consideration" represents the total amount that will or is estimated to be paid to complete the acquisition. Hydrogenics entered into three non-interest-bearing promissory notes with $175 million paid on July 31, 2023, and the remaining $160 million due in three installments through 2025. (2) All results from acquired entities were included in segment results subsequent to the acquisition date. Previously consolidated entities were accounted for as equity transactions (EQUITY). Newly consolidated entities were accounted for as business combinations (COMB). (3) Intangible assets acquired in the business combination were mostly customer, technology and trade name related. (4) See Note 2, "ACQUISITIONS , " of the Notes to the Consolidated Financial Statements of our 2022 Form 10-K for additional information on prior year acquisitions.

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Financial information regarding reportable operating segments	Summarized financial information regarding our reportable operating segments for the three and six months ended June 30, 2023 and 2022 is shown in the table below: In millions Components Engine Distribution Power Systems Accelera Total Segments Three months ended June 30, 2023 External sales $ 2,924 $ 2,263 $ 2,576 $ 794 $ 81 $ 8,638 Intersegment sales 501 725 19 663 4 1,912 Total sales 3,425 2,988 2,595 1,457 85 10,550 Research, development and engineering expenses 103 148 15 66 52 384 Equity, royalty and interest income (loss) from investees 24 71 24 18 (4) 133 Interest income 7 7 8 2 1 25 Segment EBITDA 486 (1) 425 299 201 (114) 1,297 Depreciation and amortization (2) 125 56 28 32 15 256 Three months ended June 30, 2022 External sales $ 1,477 $ 2,092 $ 2,247 $ 734 $ 36 $ 6,586 Intersegment sales 473 683 6 469 6 1,637 Total sales 1,950 2,775 2,253 1,203 42 8,223 Research, development and engineering expenses 73 116 13 58 39 299 Equity, royalty and interest income (loss) from investees 9 58 21 10 (3) 95 Interest income 2 1 3 1 — 7 Russian suspension (recoveries) costs (3) (2) 1 (45) (1) — (47) Segment EBITDA 352 421 297 128 (79) 1,119 Depreciation and amortization (2) 49 49 29 31 8 166 Six months ended June 30, 2023 External sales $ 5,967 $ 4,515 $ 4,975 $ 1,473 $ 161 $ 17,091 Intersegment sales 1,015 1,459 26 1,327 9 3,836 Total sales 6,982 5,974 5,001 2,800 170 20,927 Research, development and engineering expenses 194 282 29 129 100 734 Equity, royalty and interest income (loss) from investees 45 136 48 31 (8) 252 Interest income 13 10 15 4 1 43 Segment EBITDA 993 (1) 882 634 420 (208) 2,721 Depreciation and amortization (2) 248 107 56 61 29 501 Six months ended June 30, 2022 External sales $ 2,994 $ 4,141 $ 4,358 $ 1,417 $ 61 $ 12,971 Intersegment sales 944 1,387 12 946 12 3,301 Total sales 3,938 5,528 4,370 2,363 73 16,272 Research, development and engineering expenses 149 225 26 122 75 597 Equity, royalty and interest income (loss) from investees 37 100 (4) 37 21 (4) 191 Interest income 3 5 5 2 — 15 Russian suspension costs (3) 4 33 (5) 55 19 — 111 Segment EBITDA 672 811 407 218 (144) 1,964 Depreciation and amortization (2) 92 100 57 62 15 326 (1) Includes $18 million and $30 million of costs associated with the IPO and separation of Atmus for the three and six months ended June 30, 2023, respectively. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information. (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $2 million and $2 million for the six months ended June 30, 2023 and June 30, 2022, respectively. A portion of depreciation expense is included in research, development and engineering expenses. (3) See NOTE 14, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (4) 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 indefinite suspension of our Russian operations. See NOTE 14, "RUSSIAN OPERATIONS," to our Condensed Consolidated Financial Statements for additional information. (5) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above.
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below: Three months ended Six months ended June 30, June 30, In millions 2023 2022 2023 2022 TOTAL SEGMENT EBITDA $ 1,297 $ 1,119 $ 2,721 $ 1,964 Intersegment eliminations and other (1) 7 (64) (56) (154) Less: Interest expense 99 34 186 51 Depreciation and amortization 256 166 501 326 INCOME BEFORE INCOME TAXES $ 949 $ 855 1,978 1,433 (1) Intersegment eliminations and other included $5 million and $11 million of costs associated with the IPO and separation of Atmus for the three and six month periods ended June 30, 2023, respectively and $24 million and $41 million for the comparable periods in 2022, respectively. See NOTE 15, "FORMATION OF ATMUS AND IPO," to our Condensed Consolidated Financial Statements for additional information.

NATURE OF OPERATIONS AND BASI_3

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 USD ($) location country shares	Jun. 30, 2022 USD ($) shares	Dec. 31, 2022 USD ($)
Nature of Operations [Line Items]
Company Owned and Independent Distributor Locations Number | location			460
Countries and Territories Number | country			190
Options excluded (in shares) | shares	14,210	33,100	9,522	26,782
Revenues	$ 8,638	$ 6,586	$ 17,091	$ 12,971
Accounts and notes receivable, net	5,863		5,863		$ 5,202
Accounts payable (principally trade)	4,308		4,308		4,252
Supply Chain Financing, Program Maximum	482		482
SupplierFinanceProgramObligationCurrent	231		231		331
Related Party
Nature of Operations [Line Items]
Revenues	320	281	696	625
Related Party Transaction, Purchases from Related Party	687	$ 328	1,391	$ 755
Accounts and notes receivable, net	466		466		376
Accounts payable (principally trade)	$ 332		$ 332		$ 292
Minimum
Nature of Operations [Line Items]
Dealer Locations Number | location			10,000

REVENUE RECOGNITION LONGTERM _2

REVENUE RECOGNITION LONGTERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 730		$ 730
Unbilled revenue	299		299		$ 257
Deferred revenue	1,956		1,956		$ 1,848
Contract with Customer, Liability, Revenue Recognized	$ 178	$ 176	$ 384	$ 416
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months		12 months
Revenue, Remaining Performance Obligation, Amount	$ 232		$ 232
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years		10 years
Revenue, Remaining Performance Obligation, Amount	$ 498		$ 498

REVENUE RECOGNITION DISAGGREG_3

REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 8,638	$ 6,586	$ 17,091	$ 12,971
Axles and brakes (CBU business)
Disaggregation of Revenue [Line Items]
Revenues	1,249	0	2,521	0
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
Revenues	842	767	1,781	1,575
ATMUS - Filtration
Disaggregation of Revenue [Line Items]
Revenues	341	319	683	627
Engine Components (CBU business)
Disaggregation of Revenue [Line Items]
Revenues	283	223	575	463
Automated Transmissions (CBU business)
Disaggregation of Revenue [Line Items]
Revenues	180	143	358	277
Software and electronics (CBU business)
Disaggregation of Revenue [Line Items]
Revenues	29	25	49	52
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
Revenues	856	797	1,716	1,481
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
Revenues	687	620	1,304	1,211
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
Revenues	444	425	885	912
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
Revenues	1,987	1,842	3,905	3,604
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
Revenues	276	250	610	537
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
Revenues	1,011	987	2,063	1,913
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
Revenues	609	440	1,100	838
Engines (DBU product line)
Disaggregation of Revenue [Line Items]
Revenues	527	428	983	866
Service (DBU product line)
Disaggregation of Revenue [Line Items]
Revenues	429	392	829	741
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
Revenues	447	408	827	807
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
Revenues	218	213	407	401
Generator technologies (PSBU product line)
Disaggregation of Revenue [Line Items]
Revenues	129	113	239	209
Components
Disaggregation of Revenue [Line Items]
Revenues	3,425	1,950	6,982	3,938
Engine
Disaggregation of Revenue [Line Items]
Revenues	2,988	2,775	5,974	5,528
Distribution
Disaggregation of Revenue [Line Items]
Revenues	2,595	2,253	5,001	4,370
Power Systems
Disaggregation of Revenue [Line Items]
Revenues	1,457	1,203	2,800	2,363
External Sales | Components
Disaggregation of Revenue [Line Items]
Revenues	2,924	1,477	5,967	2,994
External Sales | Engine
Disaggregation of Revenue [Line Items]
Revenues	2,263	2,092	4,515	4,141
External Sales | Distribution
Disaggregation of Revenue [Line Items]
Revenues	2,576	2,247	4,975	4,358
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
Revenues	794	734	1,473	1,417
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenues	4,937	3,788	9,739	7,245
CHINA
Disaggregation of Revenue [Line Items]
Revenues	762	520	1,552	1,173
CHINA | Distribution
Disaggregation of Revenue [Line Items]
Revenues	112	99	213	181
INDIA
Disaggregation of Revenue [Line Items]
Revenues	413	311	824	620
INDIA | Distribution
Disaggregation of Revenue [Line Items]
Revenues	63	52	120	100
OTHER INTERNATIONAL
Disaggregation of Revenue [Line Items]
Revenues	2,526	1,967	4,976	3,933
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Revenues	1,783	1,491	3,476	2,862
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
Revenues	265	242	504	486
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
Revenues	213	246	407	521
AFRICA AND MIDDLE EAST | Distribution
Disaggregation of Revenue [Line Items]
Revenues	80	61	142	111
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Revenues	$ 60	$ 56	$ 113	$ 97

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jul. 01, 2023
Pension and other postretirement benefits
Defined contribution pension plans	$ 30	$ 20	$ 73	$ 56
Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	6	6	94	39
Other Postretirement Benefits Plan
Pension and other postretirement benefits
Defined Benefit Plan, Plan Assets, Contributions by Employer	5	6	9	16
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	2	1	4	2
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	0	0	0	0
Recognized net actuarial loss	0	0	(1)	0
Net periodic benefit cost	2	1	3	2
Estimate | Pension Plan
Pension and other postretirement benefits
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year					$ 20
Net periodic pension cost					$ 0
UNITED STATES | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	29	34	58	68
Interest cost	42	22	84	44
Expected return on plan assets	(69)	(52)	(138)	(104)
Amortization of prior service cost	1	0	1	0
Recognized net actuarial loss	2	6	4	12
Net periodic benefit cost	5	10	9	20
UNITED KINGDOM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	4	8	8	16
Interest cost	18	9	35	18
Expected return on plan assets	(27)	(20)	(52)	(40)
Amortization of prior service cost	0	0	0	0
Recognized net actuarial loss				1
Net periodic benefit cost	$ (5)	$ (3)	$ (9)	$ (5)

EQUITY, ROYALTY AND INTEREST _3

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	$ 133	$ 95	$ 252	$ 191
Impairment of Equity Method Investment		0		31
Dongfeng Cummins Engine Company Ltd
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	18	11	37	27
Chongqing Cummins Engine Company, Ltd.
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	13	7	22	16
Beijing Foton Cummins Engine Company
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	9	14	25	28
Tata Cummins, Ltd.
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	7	5	15	14
All other manufacturers
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	32	13	51	3
Komatsu Cummins Chile, Ltda. (Distribution)
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	13	12	27	19
All other distributors
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	4	3	7	5
Cummin's Share of Equity Earnings
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	96	65	184	112
Joint Venture with KAMAZ
Schedule of Equity Method Investments [Line Items]
Impairment of Equity Method Investment				28
Royalty charges
Schedule of Equity Method Investments [Line Items]
Impairment of Equity Method Investment				3
Royalty and interest income
Schedule of Equity Method Investments [Line Items]
Equity, royalty and interest income from investees	$ 37	$ 30	$ 68	$ 79

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	22.30%	17.30%	22%	21.10%
Discrete Tax Expense (Benefit)	$ 3	$ (36)	$ 0	$ (5)
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		(36)		(27)
Indefinite Suspension in Russian Operations Tax Adjustments		(10)		8
Other Discrete Tax Expenses		(8)		(4)
Tax costs associated with internal restructuring		$ 18		$ 18

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Schedule of Available-for-sale Securities
Debt Securities, Available-for-sale, Amortized Cost			$ 2
Debt Securities, Available for sale, Unrealized Gain (Loss)	$ 0		0
Debt Securities, Available-for-sale			2
Debt Securities, Trading, and Equity Securities, FV-NI, Cost	515		474
Marketable Securities, Unrealized Gain / (Loss)	(3)		(2)
Marketable securities	512		472
Proceeds from Sale of Held-to-maturity Securities	509	$ 346
Proceeds from Maturity of Marketable Securities	111	115
Proceeds from sales and maturities of marketable securities	620	$ 461
Debt Mutual Funds
Schedule of Available-for-sale Securities
Equity Securities, cost	244		238
Equity Securities, Unrealized Gain (Loss)	(5)		(5)
Equity Securities, Fair Value	239		233
Certificates of deposit
Schedule of Available-for-sale Securities
Equity Securities, cost	242		209
Equity Securities, Unrealized Gain (Loss)	0		0
Equity Securities, Fair Value	242		209
Equity mutual funds
Schedule of Available-for-sale Securities
Equity Securities, cost	29		25
Equity Securities, Unrealized Gain (Loss)	2		3
Equity Securities, Fair Value	$ 31		$ 28
Minimum | Certificates of deposit
Schedule of Available-for-sale Securities
Maturities of Time Deposits, Description	three months
Maximum | Certificates of deposit
Schedule of Available-for-sale Securities
Maturities of Time Deposits, Description	five years

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished products	$ 3,169	$ 2,917
Work-in-process and raw materials	3,102	2,926
Inventories at FIFO cost	6,271	5,843
Excess of FIFO over LIFO	(245)	(240)
Total inventories	$ 6,026	$ 5,603

SUPPLEMENTAL BALANCE SHEET DA_3

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Deferred income taxes	$ 767	$ 625
Operating lease assets	514	492
Corporate owned life insurance	409	390
Other Assets, Miscellaneous, Noncurrent	540	633
Other assets	2,230	2,140
Marketing accruals	348	316
Other taxes payable	233	224
Income taxes payable	202	173
Current portion of operating lease liabilities	135	132
Other Accrued Liabilities, Current	719	620
Other accrued expenses	1,637	1,465
Long-term portion of accrued product warranty	778	744
Deferred income taxes	615	649
Pensions	441	445
Operating lease liabilities	386	368
Accrued compensation	183	184
Mark-to-market valuation on interest rate derivatives	138	151
Liability, Other Postretirement Defined Benefit Plan	138	141
Long-term income taxes	116	192
Other Accrued Liabilities, Noncurrent	511	437
Other liabilities	$ 3,306	$ 3,311

DEBT (Details)

DEBT (Details) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) Rate	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) Rate	Jun. 05, 2023 USD ($)	May 26, 2023 USD ($)	Aug. 17, 2022 USD ($)	Aug. 18, 2021 USD ($)
Debt Instruments
Loans payable	$ 419		$ 210
Commercial paper	1,617		2,574
Line of Credit Facility, Maximum Borrowing Capacity	4,000
Line of Credit Facility, Remaining Borrowing Capacity	2,400
Other Long-term Debt	68		121
Unamortized discount and deferred issuance costs	(77)		(64)
Fair value adjustments due to hedge on indebtedness	(121)		(122)
Finance Lease, Liability	111		113
Total long-term debt	5,664		5,071
Current maturities of long-term debt	575		573
Long-term debt	5,089		4,498
Repayment of Long-Term Debt	(228)	$ (71)
Principal payments
2023	550
2024	98
2025	2,016
2026	9
2027	715
Fair value
Fair value of total debt	7,280		7,400
Carrying value of total debt	7,700		7,855
Senior notes, due 2023 (1)
Debt Instruments
Unsecured Debt	$ 500		500
Debt instrument interest rate (as a percent) | Rate	3.65%
Hydrogenics promissory notes, due 2024 and 2025 (2)
Debt Instruments
Unsecured Debt	$ 160		0
Term loan, due 2025 (3)
Debt Instruments
Unsecured Debt	1,400		1,550
Repayment of Long-Term Debt	(150)
Senior notes, due 2025 (4)
Debt Instruments
Unsecured Debt	$ 500		500
Debt instrument interest rate (as a percent) | Rate	0.75%
Atmus revolving credit facility, due 2027 (5)
Debt Instruments
Unsecured Debt	$ 50		0		$ 50
Atmus term loan, due 2027 (5)
Debt Instruments
Unsecured Debt	600				600
Debentures, due 2027
Debt Instruments
Unsecured Debt	$ 58		58
Debt instrument interest rate (as a percent) | Rate	6.75%
Debentures, due 2028
Debt Instruments
Unsecured Debt	$ 250		250
Debt instrument interest rate (as a percent) | Rate	7.125%
Senior notes, due 2030 (4)
Debt Instruments
Unsecured Debt	$ 850		850
Debt instrument interest rate (as a percent) | Rate	1.50%
Senior notes, due 2043
Debt Instruments
Unsecured Debt	$ 500		500
Debt instrument interest rate (as a percent) | Rate	4.875%
Senior notes, due 2050
Debt Instruments
Unsecured Debt	$ 650		650
Debt instrument interest rate (as a percent) | Rate	2.60%
Debentures, due 2098 (6)
Debt Instruments
Unsecured Debt	$ 165		$ 165
Effective interest rate (as a percent) | Rate	7.48%
Debt instrument interest rate (as a percent) | Rate	5.65%
Filtration Facilities
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000
Fair value
Credit spread adjustment to Term SOFR	0.10%
Filtration Facilities | Minimum
Fair value
Debt Instrument, Basis Spread on Variable Rate	1.125%
Filtration Facilities | Maximum
Fair value
Debt Instrument, Basis Spread on Variable Rate	1.75%
Filtration revolving credit facility
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity	$ 400				$ 400
Commercial Paper
Debt Instruments
Weighted Average Interest Rate (as a percent) | Rate	5.14%		4.27%
Line of Credit Facility, Maximum Borrowing Capacity	$ 4,000
International and Other Lines of Credit
Debt Instruments
Line of Credit Facility, Remaining Borrowing Capacity	$ 221
1-year revolving credit agreement
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity				$ 2,000		$ 1,500
Incremental Domestic Line of Credit
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity						$ 500
5-Year Revolving Credit Facility
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity							$ 2,000
Filtration Facilities
Fair value
Leverage Ratio	4
Interest Coverage Ratio	3

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Footnote Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Product Warranties Disclosures [Abstract]
Balance, beginning of year			$ 2,477	$ 2,425
Provision for base warranties issued			301	267
Deferred revenue on extended warranty contracts sold			166	145
Provision for product campaigns issued			12	65
Payments made during period			(283)	(289)
Amortization of deferred revenue on extended warranty contracts			(152)	(146)
Changes in estimates for pre-existing product warranties and campaigns			22	(47)
Acquisitions			0	97
Foreign currency translation adjustments and other			2	9
Balance, end of period	$ 2,545	$ 2,526	2,545	2,526
Supplier recoveries	2	$ 10	12	$ 23
Product Warranty Liability
Current portion of warranty related deferred revenue	1,017		1,017		$ 1,004
Long term portion of warranty related deferred revenue	939		939		844
Deferred Revenue Related to extended coverage, Total	1,016		1,016		1,007
Current portion of accrued product warranty	751		751		726
Long-term portion of accrued product warranty	778		778		744
Standard Product Warranty Accrual	1,529		1,529		1,470
Current portion of deferred revenue
Product Warranty Liability
Current portion of warranty related deferred revenue	285		285		290
Deferred revenue
Product Warranty Liability
Long term portion of warranty related deferred revenue	731		731		717
Current portion of accrued product warranty
Product Warranty Liability
Current portion of accrued product warranty	751		751		726
Other liabilities
Product Warranty Liability
Long-term portion of accrued product warranty	$ 778		$ 778		$ 744

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Guarantee Obligations
Provision for product campaigns issued	$ 29	$ 30
Guarantor obligations, maximum potential loss			$ 46
Long-term purchase commitment, penalty exposure			160
Total commitments under commodity contracts			60
Performance Bonds and Other Performance Guarantees			$ 145
Maximum
Guarantee Obligations
Forward Contract, Term			two years

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period			$ (1,890)
Before tax amount	$ (95)	$ (191)	(33)	$ (138)
Tax (expense) benefit	1	(9)	8	(19)
After tax amount	(94)	(200)	(25)	(157)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2)	4	(1)	9
Net current period other comprehensive (loss) income	(96)	(196)	(26)	(148)
Balance at the end of the period	(1,917)		(1,917)
Change in pension and OPEB plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(436)	(330)	(427)	(346)
Before tax amount	0	0	(13)	14
Tax (expense) benefit	0	1	2	(3)
After tax amount	0	1	(11)	11
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	2	5	4	11
Net current period other comprehensive (loss) income	2	6	(7)	22
Balance at the end of the period	(434)	(324)	(434)	(324)
Foreign currency translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,473)	(1,196)	(1,552)	(1,208)
Before tax amount	(111)	(235)	(36)	(224)
Tax (expense) benefit	3	5	7	6
After tax amount	(108)	(230)	(29)	(218)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0	0
Net current period other comprehensive (loss) income	(108)	(230)	(29)	(218)
Balance at the end of the period	(1,581)	(1,426)	(1,581)	(1,426)
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	86	11	89	(17)
Before tax amount	18	59	15	95
Tax (expense) benefit	(2)	(15)	(1)	(22)
After tax amount	16	44	14	73
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(4)	(1)	(5)	(2)
Net current period other comprehensive (loss) income	12	43	9	71
Balance at the end of the period	98	54	98	54
Total attributable to Cummins Inc.
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	(1,823)	(1,515)	(1,890)	(1,571)
Before tax amount	(93)	(176)	(34)	(115)
Tax (expense) benefit	1	(9)	8	(19)
After tax amount	(92)	(185)	(26)	(134)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2)	4	(1)	9
Net current period other comprehensive (loss) income	(94)	(181)	(27)	(125)
Balance at the end of the period	(1,917)	(1,696)	(1,917)	(1,696)
Noncontrolling interests
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Before tax amount	(2)	(15)	1	(23)
Tax (expense) benefit	0	0	0	0
After tax amount	(2)	(15)	1	(23)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Net current period other comprehensive (loss) income	$ (2)	$ (15)	$ 1	$ (23)

DERIVATIVES (Details)

DERIVATIVES (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended	15 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2023	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) on Swaps	$ (20)		$ (39)	$ 7	$ (111)
Gain (Loss) on Borrowings	16		$ 34	(6)	$ 114
Derivative Assets (Liabilities), at Fair Value, Net	44			44		$ 52
Derivative, Net Liability Position, Aggregate Fair Value	136			136		100
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	2,908			2,908		3,051
Derivative Asset	64			64		98
Derivative Liability	159			159		170
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	3,691			3,691		2,900
Derivative Asset	20			20		27
Derivative Liability	17			17		3
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset	17			17		18
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset	20			20		27
Other Noncurrent Assets | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset	47			47		80
Other Noncurrent Assets | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset	0			0		0
Other accrued expenses | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability	21			21		19
Other accrued expenses | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability	17			17		3
Other liabilities | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability	138			138		151
Other liabilities | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability	$ 0			$ 0		0
Sales
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Revenues		Revenues	Revenues	Revenues
Cost of Sales
Derivative Instruments and Hedging Activities Disclosures [Line Items]
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	Cost of sales
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (1)		$ 3	$ (3)	$ 2
Other Nonoperating Income (Expense)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(44)		(31)	(17)	(23)
Foreign Exchange Forward
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	4,400			$ 4,400		$ 3,600
Foreign Exchange Forward | Foreign currencies | Geographic Concentration Risk
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Concentration Risk, Percentage				86%		88%
Net Investment Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	741			$ 741
Gain (Loss)  Recognized in AOCL	(13)			(28)
Gain (Loss) Reclassified from AOCL into Earnings	0			0
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount Settled		$ 100
Derivative, Cash Received on Hedge		7
Interest Rate Lock
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	500			500				$ 150	$ 350
Gain (Loss)  Recognized in AOCL	10		43	1	82
Gain (Loss) Reclassified from AOCL into Earnings	0		$ 0	0	$ 0
Derivative, Notional Amount Settled		100				$ 150
Derivative, Cash Received on Hedge		$ 34				49	$ 83
Senior notes, due 2025 (4)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unsecured Debt	$ 500			$ 500		500
Debt instrument interest rate (as a percent)	0.75%			0.75%
Senior notes, due 2025 (4) | London Interbank Offered Rate
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Debt Instrument, Description of Variable Rate Basis				LIBOR
Senior notes, due 2030 (4)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unsecured Debt	$ 850			$ 850		$ 850
Debt instrument interest rate (as a percent)	1.50%			1.50%
Senior notes, due 2030 (4) | Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 765			$ 765
Senior notes, due 2030 (4) | London Interbank Offered Rate
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Debt Instrument, Description of Variable Rate Basis				LIBOR

RUSSIAN OPERATIONS (Details)

RUSSIAN OPERATIONS (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Inventory Write-down	$ (40)		$ 19
Accounts Receivable, Allowance for Credit Loss, Writeoff	0		43
Impairment of Equity Method Investment	0		31
Other Restructuring Costs	(7)		18
Russian suspension costs (recoveries)	$ (47)	$ 0	$ 111

FORMATION OF ATMUS AND IPO (Det

FORMATION OF ATMUS AND IPO (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions			3 Months Ended	6 Months Ended
	May 30, 2023	May 23, 2023	Jun. 30, 2023	Jun. 30, 2023	May 26, 2023	Dec. 31, 2022	Jun. 30, 2022
Noncash or Part Noncash Divestitures [Line Items]
Proceeds from Issuance of Commercial Paper		$ 350
Sale of Atmus stock (Note 15)			$ 282	$ 282
Cash and cash equivalents			1,802	1,802		$ 2,101	$ 2,462
Additional Paid-in Capital
Noncash or Part Noncash Divestitures [Line Items]
Sale of Atmus stock (Note 15)	$ 285		285	285
Atmus Filtration Technologies Inc.
Noncash or Part Noncash Divestitures [Line Items]
Exchange of stock, percentage of ownership exchanged	19.50%
Sale of Stock, Number of Shares Issued in Transaction	16,000
Sale of Stock, Price Per Share					$ 19.50
Proceeds from Issuance or Sale of Equity	$ 299
Cash Transferred From Subsidiary to Parent	$ 650
Cash and cash equivalents			$ 134	$ 134

ACQUISITIONS (Details)

ACQUISITIONS (Details) € in Millions, $ in Millions					3 Months Ended
	Jun. 29, 2023 USD ($)	Apr. 03, 2023 USD ($)	Apr. 08, 2022 USD ($)	Feb. 07, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
Goodwill					$ 2,404		$ 2,343
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 0				0		258
Hydrogenics promissory notes, due 2024 and 2025 (2)
Business Acquisition [Line Items]
Unsecured Debt					160		$ 0
Hydrogenics Corporation
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	19%
Payments to Acquire Businesses, Gross	$ 287
Payments to Acquire Businesses Liabilities Paid	48
Other Commitment	335
Goodwill	0
Intangible assets	$ 0
Loans Payable					175
Long-Term Debt, net of unamortized debt discount					145
Teskid Hierro de Mexico
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100%
Payments to Acquire Businesses, Gross		$ 150
Payments to Acquire Businesses Liabilities Paid		0
Total Purchase Consideration(1)		150
Goodwill		25
Intangible assets		0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		90
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents		$ 16
Jacobs Vehicle Systems
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			100%
Payments to Acquire Businesses, Gross			$ 345
Payments to Acquire Businesses Liabilities Paid			0
Total Purchase Consideration(1)			345
Goodwill			108
Intangible assets			$ 164
Westport Fuel System Inc.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				50%
Payments to Acquire Businesses, Gross				$ 42
Payments to Acquire Businesses Liabilities Paid				0
Total Purchase Consideration(1)				42
Goodwill				0
Intangible assets				$ 20
Faurecia
Business Acquisition [Line Items]
Other Commitment | €						€ 142
Meritor Inc.
Business Acquisition [Line Items]
Contingent Liability, Purchase Accounting Adjustments					62
Goodwill, Purchase Accounting Adjustments					$ 26

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment reporting
Revenues	$ 8,638	$ 6,586	$ 17,091	$ 12,971
Research, development and engineering expenses	384	299	734	597
Income (Loss) from Equity Method Investments	133	95	252	191
Russian suspension costs (recoveries)		(47)	0	111
Interest expense	99	34	186	51
Depreciation and amortization	256	166	501	326
INCOME BEFORE INCOME TAXES	949	855	1,978	1,433
Amortization of Debt Discount (Premium)			2	2
Impairment of Equity Method Investment		0		31
Joint Venture with KAMAZ
Segment reporting
Impairment of Equity Method Investment				28
Royalty charges
Segment reporting
Impairment of Equity Method Investment				3
Components
Segment reporting
Revenues	3,425	1,950	6,982	3,938
Research, development and engineering expenses	103	73	194	149
Income (Loss) from Equity Method Investments	24	9	45	37
Interest income	7	2	13	3
Russian suspension costs (recoveries)		(2)		4
Segment EBITDA	486	352	993	672
Depreciation and amortization	125	49	248	92
Atmus separation costs	18		30
Engine
Segment reporting
Revenues	2,988	2,775	5,974	5,528
Research, development and engineering expenses	148	116	282	225
Income (Loss) from Equity Method Investments	71	58	136	100
Interest income	7	1	10	5
Russian suspension costs (recoveries)		1		33
Segment EBITDA	425	421	882	811
Depreciation and amortization	56	49	107	100
Distribution
Segment reporting
Revenues	2,595	2,253	5,001	4,370
Research, development and engineering expenses	15	13	29	26
Income (Loss) from Equity Method Investments	24	21	48	37
Interest income	8	3	15	5
Russian suspension costs (recoveries)		(45)		55
Segment EBITDA	299	297	634	407
Depreciation and amortization	28	29	56	57
Power Systems
Segment reporting
Revenues	1,457	1,203	2,800	2,363
Research, development and engineering expenses	66	58	129	122
Income (Loss) from Equity Method Investments	18	10	31	21
Interest income	2	1	4	2
Russian suspension costs (recoveries)		(1)		19
Segment EBITDA	201	128	420	218
Depreciation and amortization	32	31	61	62
Accelera
Segment reporting
Revenues	85	42	170	73
Research, development and engineering expenses	52	39	100	75
Income (Loss) from Equity Method Investments	(4)	(3)	(8)	(4)
Interest income	1	0	1	0
Russian suspension costs (recoveries)		0
Segment EBITDA	(114)	(79)	(208)	(144)
Depreciation and amortization	15	8	29	15
Total Segments
Segment reporting
Revenues	10,550	8,223	20,927	16,272
Research, development and engineering expenses	384	299	734	597
Income (Loss) from Equity Method Investments	133	95	252	191
Interest income	25	7	43	15
Russian suspension costs (recoveries)		(47)		111
Segment EBITDA	1,297	1,119	2,721	1,964
Depreciation and amortization	256	166	501	326
Corporate and Other
Segment reporting
Segment EBITDA	7	(64)	(56)	(154)
Atmus separation costs	5	24	11	41
External Sales | Components
Segment reporting
Revenues	2,924	1,477	5,967	2,994
External Sales | Engine
Segment reporting
Revenues	2,263	2,092	4,515	4,141
External Sales | Distribution
Segment reporting
Revenues	2,576	2,247	4,975	4,358
External Sales | Power Systems
Segment reporting
Revenues	794	734	1,473	1,417
External Sales | Accelera
Segment reporting
Revenues	81	36	161	61
External Sales | Total Segments
Segment reporting
Revenues	8,638	6,586	17,091	12,971
Intersegment sales | Components
Segment reporting
Revenues	501	473	1,015	944
Intersegment sales | Engine
Segment reporting
Revenues	725	683	1,459	1,387
Intersegment sales | Distribution
Segment reporting
Revenues	19	6	26	12
Intersegment sales | Power Systems
Segment reporting
Revenues	663	469	1,327	946
Intersegment sales | Accelera
Segment reporting
Revenues	4	6	9	12
Intersegment sales | Total Segments
Segment reporting
Revenues	$ 1,912	$ 1,637	$ 3,836	$ 3,301

RECENTLY ADOPTED AND RECENTLY_2

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) - Accounting Standards Update 2022-04	6 Months Ended
	Jun. 30, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncement or Change in Accounting Principle, Description	In September 2022, the Financial Accounting Standards Board issued a standard related to the disclosure of additional information about the use of supplier finance programs. Under the new standard, entities are required to disclose (1) key terms of the programs, (2) the amount outstanding that remains unpaid as of the end of the period, including where amounts are recorded in the balance sheets and (3) an annual rollforward of those obligations, including the amount of obligations confirmed and the amount of obligations subsequently paid. We adopted the new standard on January 1, 2023, on a retrospective basis other than the rollforward, which we currently plan to early adopt on a prospective basis beginning with our 2023 annual financial statements. The adoption did not have a material impact on our financial statements. See "Supply Chain Financing" section in NOTE 1, "NATURE OF OPERATIONS AND BASIS OF PRESENTATION," for additional information.
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description	In September 2022, the Financial Accounting Standards Board issued a standard related to the disclosure of additional information about the use of supplier finance programs. Under the new standard, entities are required to disclose (1) key terms of the programs, (2) the amount outstanding that remains unpaid as of the end of the period, including where amounts are recorded in the balance sheets and (3) an annual rollforward of those obligations, including the amount of obligations confirmed and the amount of obligations subsequently paid. We adopted the new standard on January 1, 2023, on a retrospective basis other than the rollforward, which we currently plan to early adopt on a prospective basis beginning with our 2023 annual financial statements. The adoption did not have a material impact on our financial statements. See "Supply Chain Financing" section in NOTE 1, "NATURE OF OPERATIONS AND BASIS OF PRESENTATION," for additional information.