Cummins (CMI) 10-K 12 Feb 24 2023 FY Annual report Financial data

DOCUMENT COVER Document

DOCUMENT COVER Document - USD ($) $ / shares in Units, $ in Billions	12 Months Ended
	Dec. 31, 2023	Jan. 31, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity File Number	1-4949
Entity Registrant Name	CUMMINS INC.
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-0257090
Entity Address, Address Line One	500 Jackson Street
Entity Address, Address Line Two	Box 3005
Entity Address, City or Town	Columbus
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47202-3005
City Area Code	812
Local Phone Number	377-5000
Title of 12(b) Security	Common stock, $2.50 par value
Trading Symbol	CMI
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	true
Document Financial Statement Restatement Recovery Analysis [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 34.7
Entity Common Stock, Shares Outstanding		141,856,847
Common Stock, Par or Stated Value Per Share	$ 2.50	$ 2.50
Entity Central Index Key	0000026172
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Document Annual Report	true
Amendment Flag	false
Document Transition Report	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2023
Auditor [Line Items]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Indianapolis, Indiana

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Net sales	$ 34,065	$ 28,074	$ 24,021
Cost of sales	25,816	21,355	18,326
Gross Margin	8,249	6,719	5,695
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	3,333	2,687	2,374
Research, development and engineering expenses	1,500	1,278	1,090
Equity, royalty and interest income from investees	483	349	506
Other operating expense, net (Note 2)	2,138	174	31
OPERATING INCOME	1,761	2,929	2,706
Interest expense	375	199	111
Other income, net	240	89	156
INCOME BEFORE INCOME TAXES	1,626	2,819	2,751
Income tax expense (Note 5)	786	636	587
CONSOLIDATED NET INCOME	840	2,183	2,164
Less: Net income attributable to noncontrolling interests	105	32	33
Cummins share of net income	$ 735	$ 2,151	$ 2,131
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. (Note 20)
Basic (in dollars per share)	$ 5.19	$ 15.20	$ 14.74
Diluted (in dollars per share)	$ 5.15	$ 15.12	$ 14.61

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 840	$ 2,183	$ 2,164
Other comprehensive (loss) income, net of tax (Note 17)
Change in pension and other postretirement defined benefit plans	(421)	(81)	389
Foreign currency translation adjustments	92	(384)	(9)
Unrealized gain on derivatives	10	106	26
Total other comprehensive loss, net of tax	(319)	(359)	406
COMPREHENSIVE INCOME	521	1,824	2,570
Less: Comprehensive income (loss) attributable to noncontrolling interests	102	(8)	28
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$ 419	$ 1,832	$ 2,542

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions	Dec. 31, 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	80.7	81.2
Current assets
Cash and cash equivalents	$ 2,179	$ 2,101
Marketable securities	562	472
Cash, cash equivalents and marketable securities	2,741	2,573
Accounts and notes receivable, net
Trade and other	5,583	5,202
Inventories (Note 7)	5,677	5,603
Prepaid expenses and other current assets	1,197	1,073
Total current assets	15,198	14,451
Long-term assets
Property, plant and equipment, net (Note 8)	6,249	5,521
Investments and advances related to equity method investees (Note 4)	1,800	1,759
Goodwill (Note 10)	2,499	2,343
Other intangible assets, net (Note 10)	2,519	2,687
Pension assets (Note 11)	1,197	1,398
Other assets	2,543	2,140
Total assets	32,005	30,299
Current liabilities
Accounts payable (principally trade)	4,260	4,252
Loans payable (Note 13)	280	210
Commercial paper (Note 13)	1,496	2,574
Current maturities of long-term debt (Note 13)	118	573
Accrued compensation, benefits and retirement costs	1,108	617
Current portion of accrued product warranty (Note 14)	667	726
Current portion of deferred revenue (Note 3)	1,220	1,004
Other accrued expenses (Note 12)	3,754	1,465
Total current liabilities	12,903	11,421
Long-term liabilities
Long-term debt (Note 13)	4,802	4,498
Deferred revenue (Note 3)	966	844
Other liabilities	3,430	3,311
Total liabilities	22,101	20,074
Commitments and contingencies (Note 15)
Redeemable Noncontrolling Interest, Equity, Carrying Amount	0	258
Cummins Inc. shareholders’ equity (Note 16)
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	2,564	2,243
Retained earnings	17,851	18,037
Treasury stock, at cost, 80.7 and 81.2 shares	(9,359)	(9,415)
Accumulated other comprehensive loss (Note 17)	(2,206)	(1,890)
Total Cummins Inc. shareholders' equity	8,850	8,975
Noncontrolling interests (Note 18)	1,054	992
Total equity	9,904	9,967
Total liabilities, redeemable noncontrolling interests and equity	$ 32,005	$ 30,299

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 840	$ 2,183	$ 2,164
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	1,024	784	662
Deferred income taxes (Note 5)	(457)	(274)	7
Equity in income of investees, net of dividends	(81)	64	(83)
Pension and OPEB expense (Note 11)	8	24	83
Pension contributions and OPEB payments (Note 11)	(134)	(85)	(102)
Russian suspension costs	0	111	0
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(330)	(697)	(174)
Inventories	0	(567)	(945)
Other current assets	(120)	(109)	2
Accounts Payable	(66)	538	217
Accrued expenses (Note 2)	2,934	(170)	541
Other, net	348	160	(116)
Net cash provided by operating activities	3,966	1,962	2,256
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,213)	(916)	(734)
Acquisitions of businesses, net of cash acquired (Note 24)	(292)	(3,191)	0
Investments in marketable securities—acquisitions	(1,409)	(1,073)	(806)
Investments in marketable securities—liquidations (Note 6)	1,334	1,151	673
Other, net	(63)	(143)	(6)
Net cash used in investing activities	(1,643)	(4,172)	(873)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	861	2,103	79
Net (payments) borrowings of commercial paper	(779)	2,261	(10)
Payments on borrowings and finance lease obligations	(1,136)	(1,550)	(73)
Dividend payments on common stock (Note 16)	(921)	(855)	(809)
Repurchases of common stock (Note 16)	0	(374)	(1,402)
Payments for Repurchase of Redeemable Noncontrolling Interest	(175)	0	0
Other, net	(27)	84	(12)
Net cash (used in) provided by financing activities	(2,177)	1,669	(2,227)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(68)	50	35
Net increase (decrease) in cash and cash equivalents	78	(491)	(809)
Cash and cash equivalents at beginning of year	2,101	2,592	3,401
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 2,179	$ 2,101	$ 2,592

CONSOLIDATED STATEMENTS OF CHAN

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_NetIncomeinTotalEquityexcludingNoncontrollingInterestAmount
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount		$ 282
BALANCE, AT THE BEGINNING OF THE PERIOD at Dec. 31, 2020	$ 8,707		$ 556	$ 1,617	$ 15,419	$ (7,779)	$ (1,982)	$ 7,831	$ 876
Increase (Decrease) in Shareholders' Equity
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(13)
Net income	2,164				2,131			2,131	46	$ 2,177
Other comprehensive loss, net of tax (Note 17)	406						411	411	(5)
Issuance of common stock	1			1				1
Repurchases of common stock (Note 16)	(1,402)					(1,402)		(1,402)
Cash dividends on common stock (Note 16)	(809)				(809)			(809)
Distributions to noncontrolling interests	(28)								(28)
Share-based awards	56			1		55		56
Fair value adjustment of redeemable noncontrolling interests	(97)	97		(97)				(97)
Other shareholder transactions	24			21		3		24	0
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2021	9,035		556	1,543	16,741	(9,123)	(1,571)	8,146	889
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount		366
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(24)
Net income	2,183				2,151			2,151	56	2,207
Other comprehensive loss, net of tax (Note 17)	(359)						(319)	(319)	(40)
Issuance of common stock	8			8				8
Repurchases of common stock (Note 16)	(374)					(374)		(374)
Cash dividends on common stock (Note 16)	(855)				(855)			(855)
Distributions to noncontrolling interests	(38)								(38)
Share-based awards	80			3		77		80
Acquisition of business (Note 24)	111								111
Fair value adjustment of redeemable noncontrolling interests	104	(104)		104				104
Other shareholder transactions	48	(20)		29		5		(34)	14
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2022	9,967		556	1,687	18,037	(9,415)	(1,890)	8,975	992
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount	258	258
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		(20)
Net income	840				735			735	125	$ 860
Other comprehensive loss, net of tax (Note 17)	(319)						(316)	(316)	(3)
Issuance of common stock	3			3				3
Cash dividends on common stock (Note 16)	(921)				(921)			(921)
Distributions to noncontrolling interests	(57)								(57)
Share-based awards	48			(4)		52		48
Fair value adjustment of redeemable noncontrolling interests	(33)	33		(33)				(33)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests		(271)
Impact on equity of sale of noncontrolling interest in subsidiary	282			285				285	(3)
Other shareholder transactions	74			70		4		74	0
BALANCE, AT THE END OF THE PERIOD at Dec. 31, 2023	9,904		$ 556	$ 2,008	$ 17,851	$ (9,359)	$ (2,206)	$ 8,850	$ 1,054
Increase (Decrease) in Shareholders' Equity
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We were founded in 1919 as Cummins Engine Company, a corporation in Columbus, Indiana, and one of the first diesel engine manufacturers. In 2001, we changed our name to Cummins Inc. We are a global power leader that designs, manufactures, distributes and services diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, hydrogen production technologies 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 450 wholly-owned, joint venture and independent distributor locations and more than 19,000 Cummins certified dealer locations in approximately 190 countries and territories. Meritor Acquisition On August 3, 2022, we completed the acquisition of Meritor with a purchase price of $2.9 billion (including debt repaid concurrent with the acquisition). Our consolidated results and segment results include Meritor's activity since the date of acquisition. Meritor was split into the newly formed axles and brakes business and electric powertrain. The results for the axles and brakes business are included in our Components segment while the electric powertrain portion is included in our Accelera segment. See NOTE 24, "ACQUISITIONS," for additional information. Principles of Consolidation Our Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). All intercompany balances and transactions are eliminated in consolidation. We include the accounts of all wholly-owned and majority-owned domestic and foreign subsidiaries where our ownership is more than 50 percent of outstanding equity interests except for majority-owned subsidiaries that are considered variable interest entities (VIEs) where we are not deemed to have a controlling financial interest. In addition, we also consolidate, regardless of our ownership percentage, VIEs or joint ventures for which we are deemed to have a controlling financial interest. We have variable interests in several businesses accounted for under the equity method of accounting. For consolidated entities where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported in our Consolidated Balance Sheets . The noncontrolling ownership interest in our income, net of tax, is classified as net income attributable to noncontrolling interests in our Consolidated Statements of Net Income . Reclassifications Certain amounts for 2022 and 2021 were reclassified to conform to the current year presentation. Investments in Equity Investees We use the equity method to account for our investments in joint ventures, affiliated companies and alliances in which we have the ability to exercise significant influence, generally represented by equity ownership or partnership equity of at least 20 percent but not more than 50 percent. Generally, under the equity method, original investments in these entities are recorded at cost and subsequently adjusted by our share of equity in income or losses after the date of acquisition. Investment amounts in excess of our share of an investee's net assets are amortized over the life of the related asset creating the excess, except goodwill which is not amortized. Equity in income or losses of each investee is recorded according to our level of ownership; if losses accumulate, we record our share of losses until our investment has been fully depleted. If our investment has been fully depleted, we recognize additional losses only when we are the primary funding source. We eliminate (to the extent of our ownership percentage) in our Consolidated Financial Statements the profit in inventory held by our equity method investees that has not yet been sold to a third-party. Dividends received from equity method investees reduce the amount of our investment when received and do not impact our earnings. Our investments are classified as Investments and advances related to equity method investees in our Consolidated Balance Sheets. Our share of the results from joint ventures, affiliated companies and alliances is reported in our Consolidated Statements of Net Income as equity, royalty and interest income from investees, and is reported net of all applicable income taxes. Our share of the results from our foreign equity investees are presented net of applicable foreign income taxes in our Consolidated Statements of Net Income . Our remaining U.S. equity investees are partnerships (non-taxable), thus there is no difference between gross or net of tax presentation as the investees are not taxed. See NOTE 4, "INVESTMENTS IN EQUITY INVESTEES," for additional information. Use of Estimates in the Preparation of the Financial Statements Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Consolidated Financial Statements . Significant estimates and assumptions in these Consolidated Financial Statements require the exercise of judgement and are used for, but not limited to, estimates of future cash flows and other assumptions associated with the valuation of intangible assets and goodwill and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, determination of discount rate and other assumptions for pensions and other postretirement benefit obligations (OPEB) and related costs, income taxes, deferred tax valuation allowances, contingencies and allowances for doubtful accounts. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Revenue From Contracts with Customers Revenue Recognition Sales of Products We sell to customers either through long-term arrangements or standalone purchase orders. Our long-term arrangements generally do not include committed volumes until underlying purchase orders are issued. Our performance obligations vary by contract, but may include diesel, 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, valvetrain technologies, suspension systems, electric power generation systems and construction related projects, batteries, electrified power systems, electric powertrains, hydrogen production technologies, fuel cell products, parts, maintenance services and extended warranty coverage. Typically, we recognize revenue on the products we sell at a point in time, generally in accordance with shipping terms, which reflects the transfer of control to the customer. Since control of construction projects transfer to the customer as the work is performed, revenue on these projects is recognized based on the percentage of inputs incurred to date compared to the total expected cost of inputs, which is reflective of the value transferred to the customer. Revenue is recognized under long-term maintenance and other service agreements over the term of the agreement as underlying services are performed based on the percentage of the cost of services provided to date compared to the total expected cost of services to be provided under the contract. Sales of extended coverage are recognized based on the pattern of expected costs over the extended coverage period or, if such a pattern is unknown, on a straight-line basis over the coverage period as the customer is considered to benefit from our stand ready obligation over the coverage period. In all cases, we believe cost incurred is the most representative depiction of the extent of service performed to date on a particular contract. Our arrangements may include the act of shipping products to our customers after the performance obligation related to that product has been satisfied. We have elected to account for shipping and handling as activities to fulfill the promise to transfer goods and have not allocated revenue to the shipping activity. All related shipping and handling costs are accrued at the time the related performance obligation is satisfied. Our sales arrangements may include the collection of sales and other similar taxes that are then remitted to the related taxing authority. We have elected to present the amounts collected for these taxes net of the related tax expense rather than presenting them as additional revenue. We grant credit limits and terms to customers based upon traditional practices and competitive conditions. Typical terms vary by market, but payments are generally due in 90 days or less from invoicing for most of our product and service sales, while payments on construction, electrolyzer and certain power generation contracts may be due on an installment basis. For contracts where the time between cash collection and performance is less than one year, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. For contracts where this time period exceeds one year, generally the timing difference is the result of business concerns other than financing. We do have a limited amount of customer financing for which we charge or impute interest, but such amounts are immaterial to our Consolidated Statements of Net Income. Sales Incentives We provide various sales incentives to both our distribution network and OEM customers. These programs are designed to promote the sale of our products in the channel or encourage the usage of our products by OEM customers. When there is uncertainty surrounding these sales incentives, we may limit the amount of revenue we recognize under a contract until the uncertainty has been resolved. Sales incentives primarily fall into three categories: • Volume rebates; • Market share rebates; and • Aftermarket rebates. For volume rebates, we provide certain customers with rebate opportunities for attaining specified volumes during a particular quarter or year. We consider the expected amount of these rebates at the time of the original sale as we determine the overall transaction price. We update our assessment of the amount of rebates that will be earned quarterly based on our best estimate of the volume levels the customer will reach during the measurement period. For market share rebates, we provide certain customers with rebate opportunities based on the percentage of their production that utilizes our product. These rebates are typically measured either quarterly or annually and we assess them at least quarterly to determine our current estimates of amounts expected to be earned. These estimates are considered in the determination of transaction price at the time of the original sale based on the current market shares, with adjustments made as the level changes. For aftermarket rebates, we provide incentives to promote sales to certain dealers and end-markets. These rebates are typically paid on a quarterly, or more frequent basis. At the time of the sales, we consider the expected amount of these rebates when determining the overall transaction price. Estimates are adjusted at the end of each quarter based on the amounts yet to be paid. These estimates are based on historical experience with the particular program. Sales Returns The initial determination of the transaction price may also be impacted by expected product returns. Rights of return do not exist for the majority of our sales other than for quality issues. We do offer certain return rights in our aftermarket business, where some aftermarket customers are permitted to return small amounts of parts and filters each year, and in our power generation business, which sells portable generators to retail customers. An estimate of future returns is accounted for at the time of sale as a reduction in the overall contract transaction price based on historical return rates. Multiple Performance Obligations Our sales arrangements may include multiple performance obligations. We identify each of the material performance obligations in these arrangements and allocate the total transaction price to each performance obligation based on its relative selling price. In most cases, the individual performance obligations are also sold separately and we use that price as the basis for allocating revenue to the included performance obligations. When an arrangement includes multiple performance obligations and invoicing to the customer does not match the allocated portion of the transaction price, unbilled revenue or deferred revenue is recorded reflecting that difference. Unbilled and deferred revenue are discussed in more detail below. Long-term Contracts Our long-term maintenance agreements often include a variable component of the transaction price. We are generally compensated under such arrangements on a cost per hour of usage basis. We typically can estimate the expected usage over the life of the contract, but reassess the transaction price each quarter and adjust our recognized revenue accordingly. Certain maintenance agreements apply to generators used to provide standby power, which have limited expectations of usage. These agreements may include monthly minimum payments, providing some certainty to the total transaction price. For these particular contracts that relate to standby power, we limit revenue recognized to date to an amount representing the total minimums earned to date under the contract plus any cumulative billings earned in excess of the minimums. We reassess the estimates of progress and transaction price on a quarterly basis. For prime power arrangements, revenue is not subject to such a constraint and is generally equal to the current estimate on a percentage of completion basis times the total expected revenue under the contract. Deferred Revenue The timing of our billing does not always match the timing of our revenue recognition. We record deferred revenue when we are entitled to bill a customer in advance of when we are permitted to recognize revenue. Deferred revenue may arise in construction and other power generation systems and electrolyzer contracts, where billings may occur in advance of performance or in accordance with specific milestones. Deferred revenue may also occur in long-term maintenance contracts, where billings are often based on usage of the underlying equipment, which generally follows a predictable pattern that often will result in the accumulation of collections in advance of our performance of the related maintenance services. Finally, deferred revenue exists in our extended coverage contracts, where the cash is collected prior to the commencement of the coverage period. Deferred revenue is included in our Consolidated Balance Sheets as a component of current liabilities for the amount expected to be recognized in revenue in a period of less than one year and long-term liabilities for the amount expected to be recognized as revenue in a period beyond one year. Deferred revenue is recognized as revenue when control of the underlying product, project or service passes to the customer under the related contract. Unbilled Revenue We recognize unbilled revenue when the revenue has been earned, but not yet billed. Unbilled revenue is included in our Consolidated Balance Sheets as a component of current assets for those expected to be collected in a period of less than one year and long-term assets for those expected to be collected in a period beyond one year. Unbilled revenue relates to our right to consideration for our completed performance under a contract. Unbilled revenue generally arises from contractual provisions that delay a portion of the billings on genset deliveries until commissioning occurs. Unbilled revenue may also occur when billings trail the provision of service in construction and long-term maintenance contracts. Our unbilled revenue is assessed for collection risks at the time the amounts are initially recorded. This estimate of expected losses reflects those losses expected to occur over the contractual life of the unbilled amount through the time of collection. We did not record any impairment losses on our unbilled revenues during the years ended December 31, 2023, 2022 and 2021. Contract Costs We are required to record an asset for the incremental costs of obtaining a contract with a customer and other costs to fulfill a contract not otherwise required to be immediately expensed when we expect to recover those costs. The only material incremental cost we incur is commission expense, which is generally incurred in the same period as the underlying revenue. Costs to fulfill a contract are generally limited to customer-specific engineering expenses that do not meet the definition of research and development expenses. As a practical expedient, we have elected to recognize these costs of obtaining a contract as an expense when the related contract period is less than one year. When the period exceeds one year, this asset is amortized over the life of the contract. We did not have any material capitalized balances at December 31, 2023 or 2022. Extended Warranty We sell extended warranty coverage on most of our engines and on certain components. We consider a warranty to be extended coverage in any of the following situations: • When a warranty is sold separately or is optional (extended coverage contracts, for example) or • When a warranty provides additional services. The consideration collected is initially deferred and is recognized as revenue in proportion to the costs expected to be incurred in performing services over the contract period. We compare the remaining deferred revenue balance quarterly to the estimated amount of future claims under extended warranty programs and provide an additional accrual when the deferred revenue balance is less than expected future costs. Foreign Currency Transactions and Translation We translate assets and liabilities of foreign entities to U.S. dollars, where the local currency is the functional currency, at month-end exchange rates. We translate income and expenses to U.S. dollars using weighted-average exchange rates. We record adjustments resulting from translation in a separate component of accumulated other comprehensive loss (AOCL) and include the adjustments in net income only upon sale, loss of controlling financial interest or liquidation of the underlying foreign investment. Foreign currency transaction gains and losses are included in current net income. For foreign entities where the U.S. dollar is the functional currency, including those operating in highly inflationary economies when applicable, we remeasure non-monetary balances and the related income statement amounts using historical exchange rates. We include the resulting gains and losses in income, including the effect of derivatives in our Consolidated Statements of Net Income , which combined with transaction gains and losses amounted to a net loss of $30 million and $8 million and a net gain of $2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Fair Value Measurements A three-level valuation hierarchy, based upon the observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets; • Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and • Level 3 - Instruments whose significant inputs are unobservable . Derivative Instruments We make use of derivative instruments in foreign exchange, commodity price and interest rate hedging programs. Derivatives currently in use are foreign currency forward contracts, commodity swaps and interest rate swaps and locks. These contracts are used strictly for hedging and not for speculative purposes. Due to our international business presence, we are exposed to foreign currency exchange risk. We transact in foreign currencies and have assets, liabilities and investments in subsidiaries denominated in foreign currencies. Consequently, our income experiences some volatility related to movements in foreign currency exchange rates. In order to benefit from global diversification and after considering naturally offsetting currency positions, we enter into foreign currency forward contracts to minimize our existing exposures (recognized assets and liabilities) and hedge forecasted transactions. Foreign currency forward contracts are designated and qualify as foreign currency cash flow hedges. The unrealized gain or loss on the forward contract is deferred and reported as a component of AOCL. When the hedged forecasted transaction (sale or purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income. At December 31, 2023 and 2022, realized and unrealized gains and losses related to these hedges were not material to our financial statements. To minimize the income volatility resulting from the remeasurement of net monetary assets and payables denominated in a currency other than the functional currency, we enter into foreign currency forward contracts, which are considered economic hedges. The objective is to offset the gain or loss from remeasurement with the gain or loss from the fair market valuation of the forward contract. These derivative instruments are not designated as hedges. Gains or losses are recorded directly to the Consolidated Statements of Net Income. We are further exposed to foreign currency exchange risk as many of our subsidiaries are subject to fluctuations as the functional currencies of the underlying entities are not our U.S. dollar reporting currency. In order to minimize movements in certain investments, in 2022 we began entering into foreign exchange forwards designated as net investment hedges. These forwards are utilized to hedge portions of our net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. The change in fair value related to the spot-to-forward rate difference is recorded as other income (expense) with all other changes in fair value deferred and reported as components of AOCL. The unrealized gain or loss is classified into income in the same period when the foreign subsidiary is sold or substantially liquidated. We are exposed to fluctuations in commodity prices due to contractual agreements with component suppliers. In order to protect ourselves against future price volatility and, consequently, fluctuations in gross margins, we periodically enter into commodity swap and forward contracts with designated banks and other counterparties to fix the cost of certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations. These commodity swaps are designated and qualify as cash flow hedges. At December 31, 2023, realized and unrealized gains and losses related to these hedges were not material to our financial statements. We also enter into physical forward contracts, which qualify for the normal purchases scope exception and are treated as purchase commitments. Additional information on the physical forwards is included in NOTE 15, "COMMITMENTS AND CONTINGENCIES." We are exposed to market risk from fluctuations in interest rates. We manage our exposure to interest rate fluctuations through the use of interest rate swaps and locks. The objective is to more effectively balance our borrowing costs and interest rate risk for current and future exposure. The gain or loss on the swaps as well as the offsetting gain or loss on the hedged item are recognized in current income as interest expense. The gain or loss on the locks is deferred and reported as a component of AOCL. For more detail on our interest rate swaps, see NOTE 21, "DERIVATIVES." We record all derivatives at fair value in our financial statements. Cash flows related to derivatives that are designated as hedges are classified in the same manner as the item being hedged, while cash flows related to derivatives that are not designated as hedges are included in cash flows from investing activities in our Consolidated Statements of Cash Flows . Substantially all of our derivative contracts are subject to master netting arrangements, which provide us with the option to settle certain contracts on a net basis when they settle on the same day with the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. When material, we adjust the value of our derivative contracts for counter-party or our credit risk. None of our derivative instruments are subject to collateral requirements. Income Tax Accounting We determine our income tax expense using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits of net operating loss and credit carryforwards are also recognized as deferred tax assets. We evaluate the recoverability of our deferred tax assets each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. A valuation allowance is recorded to reduce the tax assets to the net value management believes is more likely than not to be realized. In the event our operating performance deteriorates, future assessments could conclude that a larger valuation allowance will be needed to further reduce the deferred tax assets. In addition, we operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. We accrue for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions. We believe we made adequate provisions for income taxes for all years that are subject to audit based upon the latest information available. A more complete description of our income taxes and the future benefits of our net operating loss and credit carryforwards is disclosed in NOTE 5, "INCOME TAXES." Cash and Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with an original maturity of 90 days or less at the time of purchase. The carrying amounts reflected in our Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to the short-term maturity of these investments. Cash payments for income taxes and interest were as follows: Years ended December 31, In millions 2023 2022 2021 Cash payments for income taxes, net of refunds $ 1,181 $ 903 $ 521 Cash payments for interest, net of capitalized interest 374 184 111 Marketable Securities Debt securities are classified as "held-to-maturity," "available-for-sale" or "trading." We determine the appropriate classification of debt securities at the time of purchase and re-evaluate such classifications at each balance sheet date. At December 31, 2023 and 2022, all of our debt securities were classified as available-for-sale. Debt and equity securities are carried at fair value with the unrealized gain or loss, net of tax, reported in other comprehensive income and other income, respectively. For debt securities, unrealized losses considered to be "other-than-temporary" are recognized currently in other income. The cost of securities sold is based on the specific identification method. The fair value of most investment securities is determined by currently available market prices. Where quoted market prices are not available, we use the market price of similar types of securities that are traded in the market to estimate fair value. See NOTE 6, "MARKETABLE SECURITIES," for a detailed description of our investments in marketable securities. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable represent amounts billed to customers and not yet collected or amounts that were earned, but may not be billed until the passage of time, and are recorded when the right to consideration becomes unconditional. Trade accounts receivable are recorded at the invoiced amount, which approximates net realizable value, and generally do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of expected credit losses in our existing accounts receivable. We determine the allowance based on our historical collection experience and by performing an analysis of our accounts receivable in light of the current economic environment. This estimate of expected losses reflects those losses expected to occur over the contractual life of the receivable. We review our allowance for doubtful accounts on a regular basis. In addition, when necessary, we provide an allowance for the full amount of specific accounts deemed to be uncollectible. Account balances are charged off against the allowance in the period in which we determine that it is probable the receivable will not be recovered. The allowance for doubtful accounts balances were $75 million and $78 million at December 31, 2023, and 2022, respectively, and bad debt write-offs were not material. Inventories Our inventories are stated at the lower of cost or net realizable value. For the years ended December 31, 2023 and 2022, approximately 12 percent and 14 percent, respectively, of our consolidated inventories (primarily heavy-duty and high-horsepower engines and parts) were valued using the last-in, first-out (LIFO) cost method. The cost of other inventories is generally valued using the first-in, first-out (FIFO) cost method. Our inventories at interim and year-end reporting dates include estimates for adjustments related to annual physical inventory results and for inventory cost changes under the LIFO cost method. Due to significant movements of partially-manufactured components and parts between manufacturing plants, we do not internally measure, nor do our accounting systems provide, a meaningful segregation between raw materials and work-in-process. See NOTE 7, "INVENTORIES," for additional information. Property, Plant and Equipment We record property, plant and equipment at cost, inclusive of assets under finance leases. We depreciate the cost of the majority of our property, plant and equipment using the straight-line method with depreciable lives ranging from 20 to 40 years for buildings and 3 to 15 years for machinery, equipment and fixtures. Finance lease asset amortization is recorded in depreciation expense. We expense normal maintenance and repair costs as incurred. Depreciation expense totaled $691 million, $557 million and $514 million for the years ended December 31, 2023, 2022 and 2021, respectively. See NOTE 8, "PROPERTY, PLANT AND EQUIPMENT" and NOTE 9, "LEASES," for additional information. Impairment of Long-Lived Assets We review our long-lived assets for possible impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. We assess the recoverability of the carrying value of the long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment of a long-lived asset or asset group exists when the expected future pre-tax cash flows (undiscounted and without interest charges) estimated to be generated by the asset or asset

AGREEMENT IN PRINCIPLE

AGREEMENT IN PRINCIPLE	12 Months Ended
	Dec. 31, 2023
Guarantee Obligations:
COMMITMENTS AND CONTINGENCIES	NOTE 15. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to numerous lawsuits and claims arising out of the ordinary course of our business, including actions related to product liability; personal injury; the use and performance of our products; warranty matters; product recalls; patent, trademark or other intellectual property infringement; contractual liability; the conduct of our business; tax reporting in foreign jurisdictions; distributor termination; workplace safety; environmental matters; and asbestos claims. We also have been identified as a potentially responsible party at multiple waste disposal sites under U.S. federal and related state environmental statutes and regulations and may have joint and several liability for any investigation and remediation costs incurred with respect to such sites. We have denied liability with respect to many of these lawsuits, claims and proceedings and are vigorously defending such lawsuits, claims and proceedings. We carry various forms of commercial, property and casualty, product liability and other forms of insurance; however, such insurance may not be applicable or adequate to cover the costs associated with a judgment against us with respect to these lawsuits, claims and proceedings. We do not believe that these lawsuits are material individually or in the aggregate. While we believe we have also established adequate accruals for our expected future liability with respect to pending lawsuits, claims and proceedings, where the nature and extent of any such liability can be reasonably estimated based upon then presently available information, there can be no assurance that the final resolution of any existing or future lawsuits, claims or proceedings will not have a material adverse effect on our business, results of operations, financial condition or cash flows. We conduct significant business operations in Brazil that are subject to the Brazilian federal, state and local labor, social security, tax and customs laws. While we believe we comply with such laws, they are complex, subject to varying interpretations and we are often engaged in litigation regarding the application of these laws to particular circumstances. On June 28, 2022, KAMAZ Publicly Traded Company (KAMAZ) was designated to the List of Specially Designated Nationals and Blocked Persons by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). We filed blocked property reports for relevant assets and sought 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, and from the U.K. Office of Financial Sanctions Implementation on September 15, 2023, which allowed us to finalize the exit of 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 EPA and CARB regarding certification of our engines in model year 2019 RAM 2500 and 3500 trucks. This review was conducted with external advisors as we continue to 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. In December 2023, we announced that we reached the Agreement in Principle with EPA, CARB, the Environmental and Natural Resources Division of the DOJ and the CA AG to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S. As part of the Agreement in Principle, among other things, we agreed to pay civil penalties, complete recall requirements, undertake mitigation projects, provide extended warranties, undertake certain testing, take certain corporate compliance measures and make other payments. Failure to comply with the Agreement in Principle will subject us to further stipulated penalties. We recorded a charge of $2.036 billion in the fourth quarter of 2023 to resolve the matters addressed by the Agreement in Principle involving approximately one million of our pick-up truck applications in the U.S. This charge was in addition to the previously announced charges of $59 million for the recalls of model years 2013 through 2018 RAM 2500 and 3500 trucks and model years 2016 through 2019 Titan trucks. The Agreement in Principle remains subject to final regulatory and judicial approvals, and we cannot be certain that the Agreement in Principle will be approved, in its current form, or at all. See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information. We have also been in communication with other non-U.S. regulators regarding matters related to the emission systems in our engines and may also become subject to additional regulatory review in connection with these matters. In connection with our announcement of our entry into the Agreement in Principle, we have become subject to shareholder, consumer and third-party litigation regarding the matters covered by the Agreement in Principle and we may become subject to additional litigation in connection with these matters. The consequences resulting from the resolution of the foregoing matters are uncertain and the related expenses and reputational damage could have a material adverse impact on our results of operations, financial condition and cash flows. Guarantees and Commitments Periodically, we enter into guarantee arrangements, including guarantees of non-U.S. distributor financings, residual value guarantees on equipment under operating leases and other miscellaneous guarantees of joint ventures or third-party obligations. At December 31, 2023, the maximum potential loss related to these guarantees was $41 million. We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At December 31, 2023, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $393 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, palladium and iridium to purchase certain volumes of the commodities at contractually stated prices for various periods, which generally fall within two years. At December 31, 2023, the total commitments under these contracts were $104 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 $178 million at December 31, 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.
Unfavorable Regulatory Action [Member]
Guarantee Obligations:
COMMITMENTS AND CONTINGENCIES	NOTE 2. AGREEMENT IN PRINCIPLE In December 2023, we announced that we reached an agreement in principle with the Environmental Protection Agency (EPA), the California Air Resources Board (CARB), the Environmental and Natural Resources Division of the U.S. Department of Justice (DOJ) and the California Attorney General’s Office (CA AG) to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S (collectively, the Agreement in Principle). As part of the Agreement in Principle, among other things, we agreed to pay civil penalties, complete recall requirements, undertake mitigation projects, provide extended warranties, undertake certain testing, take certain corporate compliance measures and make certain payments. Failure to comply with the terms and conditions of the Agreement in Principle will subject us to further stipulated penalties. We recorded a charge of $2.036 billion in the fourth quarter of 2023 to resolve the matters addressed by the Agreement in Principle involving approximately one million of our pick-up truck applications in the U.S. The charge is included in other operating expense, net, in our Consolidated Statements of Net Income . See NOTE 15, "COMMITMENTS AND CONTINGENCIES," for further information. The majority of the amount is expected to be paid in 2024 after final regulatory and judicial approvals are obtained. As a result, $1.938 billion is included in other current liabilities in our Consolidated Balance Sheets with the remainder included in other long-

REVENUE RECOGNITION LONG-TERM C

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE	12 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 3. REVENUE FROM CONTRACTS WITH CUSTOMERS Long-term Contracts We have certain arrangements, primarily long-term maintenance agreements, construction contracts, product sales with associated performance obligations extending beyond a year, product sales with lead times extending beyond one year that are non-cancellable or for which the customer incurs a penalty for cancellation and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for these contracts, excluding extended warranty coverage arrangements, as of December 31, 2023, was $2.1 billion. We expect to recognize the related revenue of $1.0 billion over the next 12 months and $1.1 billion over periods up to 10 years. See NOTE 14,"PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: December 31, In millions 2023 2022 Unbilled revenue $ 303 $ 257 Deferred revenue 2,186 1,848 We recognized revenue of $733 million and $639 million in 2023 and 2022, respectively, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during 2023 or 2022. Disaggregation of Revenue The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Years ended December 31, In millions 2023 2022 2021 United States (1) $ 19,302 $ 15,833 $ 12,489 China 3,115 2,390 3,169 India 1,678 1,392 1,133 Other international (1) 9,970 8,459 7,230 Total net sales $ 34,065 $ 28,074 $ 24,021 (1) We revised $281 million from other international to United States for the year ended December 31, 2022. 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 23, "FORMATION OF ATMUS AND IPO," for additional information. Components segment external sales by business were as follows: Years ended December 31, In millions 2023 2022 2021 Axles and brakes $ 4,822 $ 1,879 $ — Emission solutions 3,425 3,086 3,142 Atmus 1,345 1,259 1,171 Engine components 1,119 946 1,019 Automated transmissions 714 593 481 Software and electronics 106 84 119 Total sales $ 11,531 $ 7,847 $ 5,932 Engine segment external sales by market were as follows: Years ended December 31, In millions 2023 2022 2021 Heavy-duty truck $ 3,391 $ 2,995 $ 2,511 Medium-duty truck and bus 2,622 2,412 1,978 Light-duty automotive 1,748 1,704 1,845 Total on-highway 7,761 7,111 6,334 Off-highway 1,113 1,088 1,255 Total sales $ 8,874 $ 8,199 $ 7,589 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: Years ended December 31, In millions 2023 2022 2021 North America $ 7,054 $ 5,948 $ 4,902 Asia Pacific 1,091 1,011 901 Europe 848 914 962 China 424 351 323 Africa and Middle East 294 250 278 India 264 217 194 Latin America 224 210 182 Total sales $ 10,199 $ 8,901 $ 7,742 Distribution segment external sales by product line were as follows: Years ended December 31, In millions 2023 2022 2021 Parts $ 4,052 $ 3,809 $ 3,136 Power generation 2,496 1,767 1,754 Engines 1,987 1,770 1,493 Service 1,664 1,555 1,359 Total sales $ 10,199 $ 8,901 $ 7,742 Power Systems segment external sales by product line were as follows: Years ended December 31, In millions 2023 2022 2021 Power generation $ 1,698 $ 1,658 $ 1,481 Industrial 970 843 820 Generator technologies 457 450 349 Total sales $ 3,125 $ 2,951 $ 2,650

REVENUE RECOGNITION DISAGGREGAT

REVENUE RECOGNITION DISAGGREGATION OF REVENUES REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Notes)	12 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	NOTE 3. REVENUE FROM CONTRACTS WITH CUSTOMERS Long-term Contracts We have certain arrangements, primarily long-term maintenance agreements, construction contracts, product sales with associated performance obligations extending beyond a year, product sales with lead times extending beyond one year that are non-cancellable or for which the customer incurs a penalty for cancellation and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for these contracts, excluding extended warranty coverage arrangements, as of December 31, 2023, was $2.1 billion. We expect to recognize the related revenue of $1.0 billion over the next 12 months and $1.1 billion over periods up to 10 years. See NOTE 14,"PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties. Deferred and Unbilled Revenue The following is a summary of our unbilled and deferred revenue and related activity: December 31, In millions 2023 2022 Unbilled revenue $ 303 $ 257 Deferred revenue 2,186 1,848 We recognized revenue of $733 million and $639 million in 2023 and 2022, respectively, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during 2023 or 2022. Disaggregation of Revenue The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer. Years ended December 31, In millions 2023 2022 2021 United States (1) $ 19,302 $ 15,833 $ 12,489 China 3,115 2,390 3,169 India 1,678 1,392 1,133 Other international (1) 9,970 8,459 7,230 Total net sales $ 34,065 $ 28,074 $ 24,021 (1) We revised $281 million from other international to United States for the year ended December 31, 2022. 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 23, "FORMATION OF ATMUS AND IPO," for additional information. Components segment external sales by business were as follows: Years ended December 31, In millions 2023 2022 2021 Axles and brakes $ 4,822 $ 1,879 $ — Emission solutions 3,425 3,086 3,142 Atmus 1,345 1,259 1,171 Engine components 1,119 946 1,019 Automated transmissions 714 593 481 Software and electronics 106 84 119 Total sales $ 11,531 $ 7,847 $ 5,932 Engine segment external sales by market were as follows: Years ended December 31, In millions 2023 2022 2021 Heavy-duty truck $ 3,391 $ 2,995 $ 2,511 Medium-duty truck and bus 2,622 2,412 1,978 Light-duty automotive 1,748 1,704 1,845 Total on-highway 7,761 7,111 6,334 Off-highway 1,113 1,088 1,255 Total sales $ 8,874 $ 8,199 $ 7,589 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: Years ended December 31, In millions 2023 2022 2021 North America $ 7,054 $ 5,948 $ 4,902 Asia Pacific 1,091 1,011 901 Europe 848 914 962 China 424 351 323 Africa and Middle East 294 250 278 India 264 217 194 Latin America 224 210 182 Total sales $ 10,199 $ 8,901 $ 7,742 Distribution segment external sales by product line were as follows: Years ended December 31, In millions 2023 2022 2021 Parts $ 4,052 $ 3,809 $ 3,136 Power generation 2,496 1,767 1,754 Engines 1,987 1,770 1,493 Service 1,664 1,555 1,359 Total sales $ 10,199 $ 8,901 $ 7,742 Power Systems segment external sales by product line were as follows: Years ended December 31, In millions 2023 2022 2021 Power generation $ 1,698 $ 1,658 $ 1,481 Industrial 970 843 820 Generator technologies 457 450 349 Total sales $ 3,125 $ 2,951 $ 2,650

INVESTMENTS IN EQUITY INVESTEES

INVESTMENTS IN EQUITY INVESTEES	12 Months Ended
	Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN EQUITY INVESTEES	NOTE 4. INVESTMENTS IN EQUITY INVESTEES Investments and advances related to equity method investees and our ownership percentages were as follows: Ownership December 31, Dollars in millions percentage 2023 2022 Komatsu alliances 20-50% $ 331 $ 295 Beijing Foton Cummins Engine Co., Ltd. 50% 194 189 Sisamex 50% 149 144 Dongfeng Cummins Engine Company, Ltd. 50% 128 106 Automotive Axles Limited 36% 125 125 Chongqing Cummins Engine Company, Ltd. 50% 110 118 Tata Cummins, Ltd. 50% 89 92 Cummins-Scania XPI Manufacturing, LLC 50% 85 130 Freios Master 49% 84 86 Other Various 505 474 Investments and advances related to equity method investees $ 1,800 $ 1,759 We have approximately $936 million in our investment account at December 31, 2023, that represents cumulative undistributed income in our equity investees. Dividends received from our unconsolidated equity investees were $257 million, $318 million and $336 million in 2023, 2022 and 2021, respectively. Equity, royalty and interest income from investees, net of applicable taxes, was as follows: Years ended December 31, In millions 2023 2022 2021 Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 65 $ 45 $ 82 Beijing Foton Cummins Engine Co., Ltd. 47 37 112 Chongqing Cummins Engine Company, Ltd. 36 32 39 Tata Cummins, Ltd. 29 27 18 All other manufacturers 91 28 (1) 131 Distribution entities Komatsu Cummins Chile, Ltda. 55 44 32 All other distributors 16 11 10 Cummins share of net income 339 224 424 Royalty and interest income 144 125 82 Equity, royalty and interest income from investees $ 483 $ 349 $ 506 (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. In addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. See NOTE 24, "ACQUISITIONS," and NOTE 22, "RUSSIAN OPERATIONS," for additional information. Manufacturing Entities Our manufacturing joint ventures were generally formed with customers and are primarily intended to allow us to increase our market penetration in geographic regions, reduce capital spending, streamline our supply chain management and develop technologies. Our largest manufacturing joint ventures are based in China and are included in the list below. Our engine manufacturing joint ventures are supplied by our Components segment in the same manner as it supplies our wholly-owned Engine segment and Power Systems segment manufacturing facilities. Our Components segment joint ventures and wholly-owned entities provide axles, drivelines, brakes and suspension systems for commercial diesel and natural gas applications, aftertreatment systems, turbochargers, fuel systems, filtration products, automated transmissions and electronics that are used with our engines as well as some competitors' products. The results and investments in our joint ventures in which we have 50 percent or less ownership interest (except for Eaton Cummins Automated Transmission Technologies joint venture, which is consolidated due to our majority voting interest) are included in equity, royalty and interest income from investees and investments and advances related to equity method investees in our Consolidated Statements of Net Income and Consolidated Balance Sheets , respectively. • Dongfeng Cummins Engine Company, Ltd. - Dongfeng Cummins Engine Company, Ltd. (DCEC) is a joint venture in China with Dongfeng Automotive Co. Ltd., a subsidiary of Dongfeng Motor Corporation and one of the largest medium-duty and heavy-duty truck manufacturers in China. DCEC produces 3.9 liter to 14.5 liter diesel engines with a power range from 80 to 760 horsepower, natural gas engines and automated transmissions. On-highway engines are used in multiple applications in light-duty and medium-duty trucks, special purpose vehicles, buses and heavy-duty trucks with a main market in China. Off-highway engines are used in a variety of construction, power generation, marine and agriculture markets in China. • Beijing Foton Cummins Engine Co., Ltd. - Beijing Foton Cummins Engine Co., Ltd. is a joint venture in China with Beiqi Foton Motor Co., Ltd., a commercial vehicle manufacturer, which has two distinct lines of business - a light-duty business and a heavy-duty business. The light-duty business produces our families of ISF 2.5 liter to 4.5 liter high performance light-duty diesel engines in Beijing. These engines are used in light-duty and medium-duty commercial trucks, pick-up trucks, buses, multipurpose and sport utility vehicles with main markets in China and Brazil. Certain types of small construction equipment and industrial applications are also served by these engine families. The heavy-duty business produces 8.5 liter to 14.5 liter high performance heavy-duty diesel and natural gas engines in Beijing. Certain types of construction equipment and industrial applications are also served by these engine families. • Chongqing Cummins Engine Company, Ltd. - Chongqing Cummins Engine Company, Ltd. is a joint venture in China with Chongqing Machinery and Electric Co. Ltd. This joint venture manufactures several models of our heavy-duty and high-horsepower diesel engines primarily serving the industrial and stationary power markets in China. • Tata Cummins, Ltd. - Tata Cummins, Ltd. is a joint venture in India with Tata Motors Ltd., the largest automotive company in India and a member of the Tata group of companies. This joint venture manufactures Cummins' 3.8 to 8.9 liter diesel and natural gas engines in India with a power range from 75 to 400 horsepower for use in trucks and buses manufactured by Tata Motors, as well as for various on-highway, industrial and power generation applications for Cummins. In September 2023, our Accelera business signed an agreement to form a joint venture with Daimler Trucks and Buses US Holding LLC (Daimler Truck), PACCAR Inc. (PACCAR) and EVE Energy to accelerate and localize battery cell production and the battery supply chain in the U.S., including building a 21-gigawatt hour battery production facility in Marshall County, Mississippi. The joint venture will manufacture battery cells for electric commercial vehicles and industrial applications. Accelera, Daimler Truck and PACCAR will each own 30 percent of the joint venture, while EVE Energy will own 10 percent. Total investment by the partners is expected to be in the range of $2 billion to $3 billion for the 21-gigawatt hour facility. The transaction is subject to closing conditions and receipt of applicable merger control and regulatory approvals including submission of a voluntary notice to the Committee on Foreign Investment in the U.S. Distribution Entities We have an extensive worldwide distributor and dealer network through which we sell and distribute our products and services. Generally, our distributors are divided by geographic region with some of our distributors being wholly-owned by Cummins, some partially-owned and some independently owned. We consolidate all wholly-owned distributors and partially-owned distributors where we are the primary beneficiary and account for other partially-owned distributors using the equity method of accounting. Komatsu Cummins Chile, Ltda. - Komatsu Cummins Chile, Ltda. is a joint venture with Komatsu America Corporation. The joint venture is a distributor that offers the full range of our products and services to customers and end-users in Chile and Peru. In certain cases where we own a partial interest in a distributor, we may be obligated to purchase the other equity holders' interests if certain events occur (such as the death or resignation of the distributor principal or a change in control of Cummins Inc.). The purchase consideration of the equity interests may be determined based on the fair value of the distributor's assets. Repurchase obligations and practices vary by geographic region. All distributors that are partially-owned are considered to be related parties in our Consolidated Financial Statements . Equity Investee Financial Summary Summary financial information for our equity investees was as follows: Years ended and at December 31, In millions 2023 2022 2021 Net sales $ 9,998 $ 7,501 $ 8,934 Gross margin 1,597 1,211 1,574 Net income 677 475 802 Cummins share of net income $ 339 $ 224 $ 424 Royalty and interest income 144 125 82 Total equity, royalty and interest from investees $ 483 $ 349 $ 506 Current assets $ 4,922 $ 4,252 Long-term assets 2,021 1,935 Current liabilities (3,812) (3,224) Long-term liabilities (432) (399) Net assets $ 2,699 $ 2,564 Cummins share of net assets $ 1,786 $ 1,715

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5. INCOME TAXES The following table summarizes income before income taxes: Years ended December 31, In millions 2023 2022 2021 U.S. (loss) income $ (541) $ 1,336 $ 1,251 Foreign income 2,167 1,483 1,500 Income before income taxes $ 1,626 $ 2,819 $ 2,751 Income tax expense (benefit) consisted of the following: Years ended December 31, In millions 2023 2022 2021 Current U.S. federal and state $ 611 $ 425 $ 261 Foreign 632 485 319 Total current income tax expense 1,243 910 580 Deferred U.S. federal and state (468) (229) (12) Foreign 11 (45) 19 Total deferred income tax (benefit) expense (457) (274) 7 Income tax expense $ 786 $ 636 $ 587 A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate was as follows: Years ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal effect (0.4) 1.3 1.1 Differences in rates and taxability of foreign subsidiaries and joint ventures (1) 11.9 3.1 0.1 Research tax credits (4.7) (1.8) (0.6) Foreign derived intangible income (4.2) (2.0) (1.0) Agreement in Principle, federal impact (2) 22.4 — — Agreement in Principle, state impact (2) 2.1 — — Other, net 0.2 1.0 0.7 Effective tax rate 48.3 % 22.6 % 21.3 % (1) Includes the jurisdictional mix of pre-tax income and impact of actual and planned repatriation of earnings back to the U.S. (2) See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information. The year ended December 31, 2023, contained unfavorable net discrete items of $397 million, primarily due to $398 million in the fourth quarter related to the $2.0 billion charge from the Agreement in Principle, $22 million of unfavorable adjustments for uncertain tax positions and $3 million of net unfavorable other discrete tax items, partially offset by $21 million of favorable return to provision adjustments and $5 million of favorable share-based compensation tax benefit. See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information. The year ended December 31, 2022, contained discrete tax items that netted to zero, primarily due to $31 million of favorable changes in accrued withholding taxes, $29 million of favorable changes in tax reserves, $15 million of favorable valuation allowance adjustments and $9 million of favorable other net discrete items, offset by $69 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $15 million of unfavorable return to provision adjustments related to the 2021 filed tax returns. The year ended December 31, 2021, contained $9 million of unfavorable net discrete tax items, primarily due to $12 million of unfavorable provision to return adjustments related to the 2020 filed tax returns, partially offset by $3 million of favorable other discrete tax items. At December 31, 2023, $6.0 billion of non-U.S. earnings are considered indefinitely reinvested in operations outside the U.S. for which deferred taxes were not provided. Determination of the related deferred tax liability, if any, is not practicable because of the complexities associated with the hypothetical calculation. Carryforward tax benefits and the tax effect of temporary differences between financial and tax reporting that give rise to net deferred tax assets (liabilities) were as follows: December 31, In millions 2023 2022 Deferred tax assets U.S. and state carryforward benefits $ 272 $ 272 Foreign carryforward benefits 609 527 Employee benefit plans 347 258 Warranty expenses 483 458 Lease liabilities 125 110 Capitalized research and development expenditures 591 238 Accrued expenses 253 174 Other 78 126 Gross deferred tax assets 2,758 2,163 Valuation allowance (789) (704) Total deferred tax assets 1,969 1,459 Deferred tax liabilities Property, plant and equipment (367) (369) Unremitted income of foreign subsidiaries and joint ventures (179) (210) Employee benefit plans (278) (311) Lease assets (123) (108) Intangible assets (406) (435) Other (64) (50) Total deferred tax liabilities (1,417) (1,483) Net deferred tax (liabilities) assets $ 552 $ (24) Our 2023 U.S. carryforward benefits include $272 million of state credit and net operating loss carryforward benefits that begin to expire in 2024. Our foreign carryforward benefits include $609 million of net operating loss carryforwards that begin to expire in 2024. A valuation allowance is recorded to reduce the gross deferred tax assets to an amount we believe is more likely than not to be realized. The valuation allowance is $789 million and increased in 2023 by a net $85 million. The valuation allowance is primarily attributable to the uncertainty regarding the realization of a portion of the U.S. state and foreign net operating loss and tax credit carryforward benefits. Our Consolidated Balance Sheets contain the following tax related items: December 31, In millions 2023 2022 Prepaid expenses and other current assets Refundable income taxes $ 81 $ 83 Other assets Deferred income tax assets 1,082 625 Long-term refundable income taxes 27 14 Other accrued expenses Income tax payable 242 173 Other liabilities Long-term income taxes 111 192 Deferred income tax liabilities 530 649 A reconciliation of unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021 was as follows: December 31, In millions 2023 2022 2021 Balance at beginning of year $ 283 $ 89 $ 122 Additions to tax positions due to acquisitions 8 189 — Additions to current year tax positions 21 17 11 Additions to prior years' tax positions 19 17 16 Reductions to prior years' tax positions (1) (1) (28) Reductions for tax positions due to settlements with taxing authorities — (28) (32) Balance at end of year $ 330 $ 283 $ 89 Included in the December 31, 2023, 2022 and 2021, balances are $314 million, $270 million and $85 million, respectively, related to tax positions that, if recognized, would favorably impact the effective tax rate in future periods. We also accrued interest expense related to the unrecognized tax benefits of $33 million, $18 million and $15 million as of December 31, 2023, 2022 and 2021, respectively. We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although we believe that adequate provision has been made for such issues, there is the possibility that the ultimate resolution of such issues could have an adverse effect on our earnings. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced, thus having a positive impact on earnings. As a result of our global operations, we file income tax returns in various jurisdictions including U.S. federal, state and foreign jurisdictions. We are routinely subject to examination by taxing authorities throughout the world, including Australia, Belgium, Brazil, Canada, China, France, India, Mexico, the U.K. and the U.S. With few exceptions, our U.S. federal, major state and foreign jurisdictions are no longer subject to income tax assessments for years before 2018.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2023
Marketable Securities [Abstract]
MARKETABLE SECURITIES	NOTE 6. MARKETABLE SECURITIES A summary of marketable securities, all of which are classified as current, was as follows: December 31, 2023 2022 In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 272 $ — $ 272 $ 238 $ (5) $ 233 Certificates of deposit 246 — 246 209 — 209 Equity mutual funds 22 6 28 25 3 28 Debt securities 16 — 16 2 — 2 Marketable securities $ 556 $ 6 $ 562 $ 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 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 2023 or 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: Years ended December 31, In millions 2023 2022 2021 Proceeds from sales of marketable securities $ 1,075 $ 750 $ 494 Proceeds from maturities of marketable securities 259 401 179 Investments in marketable securities - liquidations $ 1,334 $ 1,151 $ 673

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 7. INVENTORIES Inventories are stated at the lower of cost or net realizable value. Inventories included the following: December 31, In millions 2023 2022 Finished products $ 2,770 $ 2,917 Work-in-process and raw materials 3,156 2,926 Inventories at FIFO cost 5,926 5,843 Excess of FIFO over LIFO (249) (240) Inventories $ 5,677 $ 5,603

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 8. PROPERTY, PLANT AND EQUIPMENT Details of our property, plant and equipment balance were as follows: December 31, In millions 2023 2022 Land and buildings $ 3,039 $ 2,908 Machinery, equipment and fixtures 7,245 6,598 Construction in process 1,390 1,001 Property, plant and equipment, gross 11,674 10,507 Less: Accumulated depreciation (5,425) (4,986) Property, plant and equipment, net $ 6,249 $ 5,521

LEASES FOOTNOTE DISCLOSURE LEAS

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Notes)	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Leases of Lessee Disclosure	NOTE 9. LEASES Our lease portfolio consists primarily of real estate and equipment leases. Our real estate leases primarily consist of land, office, distribution, warehousing and manufacturing facilities. These leases typically range in term from 2 to 50 years and may contain renewal options for periods up to 10 years at our discretion. Our equipment lease portfolio consists primarily of vehicles (including service vehicles), fork trucks and IT equipment. These leases typically range in term from two The components of our lease cost were as follows: Years ended December 31, In millions 2023 2022 2021 Operating lease cost $ 165 $ 160 $ 172 Finance lease cost Amortization of right-of-use asset 20 19 16 Interest expense 4 4 4 Short-term lease cost 24 23 18 Variable lease cost 14 12 11 Total lease cost $ 227 $ 218 $ 221 Supplemental balance sheet information related to leases: December 31, In millions 2023 2022 Balance Sheet Location Assets Operating lease assets $ 501 $ 492 Other assets Finance lease assets (1) 115 117 Property, plant and equipment, net Total lease assets $ 616 $ 609 Liabilities Current Operating lease liabilities $ 138 $ 132 Other accrued expenses Finance lease liabilities 17 32 Current maturities of long-term debt Long-term Operating lease liabilities 374 368 Other liabilities Finance lease liabilities 94 81 Long-term debt Total lease liabilities $ 623 $ 613 (1) Finance lease assets were recorded net of accumulated amortization of $77 million and $78 million at December 31, 2023 and 2022. Supplemental cash flow and other information related to leases: Years ended December 31, In millions 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 148 $ 151 $ 159 Operating cash flows from finance leases 4 4 4 Financing cash flows from finance leases 35 16 14 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 153 $ 148 $ 160 Finance leases 12 29 13 Additional information related to leases: December 31, 2023 2022 Weighted-average remaining lease term (in years) Operating leases 5.2 5.4 Finance leases 8.6 7.9 Weighted-average discount rate Operating leases 4.2 % 3.7 % Finance leases 5.0 % 4.7 % Following is a summary of the future minimum lease payments related to finance and operating leases with terms of more than one year at December 31, 2023, together with the net present value of the minimum payments: In millions Finance Leases Operating Leases 2024 $ 23 $ 155 2025 19 126 2026 15 92 2027 13 68 2028 12 45 After 2028 56 90 Total minimum lease payments 138 576 Interest (27) (64) Present value of net minimum lease payments $ 111 $ 512

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 10. GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022: In millions Components Accelera Distribution Power Systems Engine Total Balance at December 31, 2021 $ 934 $ 257 $ 79 $ 11 $ 6 $ 1,287 Acquisitions 835 237 — — — 1,072 Foreign currency translation and other (17) 1 — — — (16) Balance at December 31, 2022 1,752 495 79 11 6 2,343 Acquisitions 122 — 4 — 18 144 Foreign currency translation and other 10 1 — — 1 12 Balance at December 31, 2023 $ 1,884 $ 496 $ 83 $ 11 $ 25 $ 2,499 Intangible assets that have finite useful lives are amortized over their estimated useful lives. The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: December 31, In millions 2023 2022 Software $ 622 $ 679 Less: Accumulated amortization (323) (410) Software, net 299 269 Trademarks, patents, customer relationships and other 2,886 2,858 Less: Accumulated amortization (666) (440) Trademarks, patents, customer relationships and other, net 2,220 2,418 Other intangible assets, net $ 2,519 $ 2,687 Amortization expense for software and other intangibles totaled $324 million, $223 million and $144 million for the years ended December 31, 2023, 2022 and 2021, respectively. The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows: In millions 2024 2025 2026 2027 2028 Projected amortization expense $ 323 $ 299 $ 281 $ 260 $ 233

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	12 Months Ended
	Dec. 31, 2023
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefits Disclosure	NOTE 11. PENSIONS AND OTHER POSTRETIREMENT BENEFITS Pension Plans We sponsor several pension plans covering substantially all employees. Generally, pension benefits for salaried employees are determined as a function of employee’s compensation. Pension benefits for most hourly employees are determined similarly and as a function of employee’s compensation, with the exception of a small group of hourly employees whose pension benefits were grandfathered in accordance with agreements with their union representation and are based on their years of service and compensation during active employment. The level of benefits and terms of vesting may vary among plans and are offered in accordance with applicable laws. Pension plan assets are administered by trustees and are principally invested in fixed income securities and equity securities. It is our policy to make contributions to our various qualified plans in accordance with statutory and contractual funding requirements, and any additional contributions we determine are appropriate. Obligations, Assets and Funded Status Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for our pension plans. The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2023 2022 2023 2022 Change in benefit obligation Benefit obligation at the beginning of the year $ 3,171 $ 3,012 $ 1,398 $ 1,887 Service cost 117 137 17 30 Interest cost 168 101 70 39 Actuarial loss (gain) 172 (643) 47 (702) Benefits paid from fund (223) (200) (87) (70) Benefits paid directly by employer (25) (25) — — Plan amendment 1 3 — — Assumption of Meritor's benefit obligation — 786 — 418 Foreign currency translation adjustments — — 80 (204) Benefit obligation at end of year $ 3,381 $ 3,171 $ 1,525 $ 1,398 Change in plan assets Fair value of plan assets at beginning of year $ 3,828 $ 3,548 $ 1,670 $ 2,390 Actual return on plan assets 221 (244) (51) (960) Employer contributions — 25 90 3 Benefits paid from fund (223) (200) (87) (70) Assumption of Meritor's plan assets — 699 — 565 Foreign currency translation adjustments — — 98 (258) Fair value of plan assets at end of year $ 3,826 $ 3,828 $ 1,720 $ 1,670 Funded status (including unfunded plans) at end of year $ 445 $ 657 $ 195 $ 272 Amounts recognized in consolidated balance sheets Pension assets $ 1,002 $ 1,126 $ 195 $ 272 Accrued compensation, benefits and retirement costs (27) (24) — — Other liabilities (530) (445) — — Net amount recognized $ 445 $ 657 $ 195 $ 272 Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ 493 $ 273 $ 606 $ 402 Prior service cost 8 8 8 10 Net amount recognized $ 501 $ 281 $ 614 $ 412 In addition to the pension plans in the above table, we also maintain less significant defined benefit pension plans in 15 other countries outside of the U.S. and the U.K. that comprise approximately 5 percent and 6 percent of our pension plan assets and benefit obligations, respectively, at December 31, 2023. These plans are reflected in other liabilities on our Consolidated Balance Sheets . In 2023 and 2022, we made $16 million and $12 million of contributions to these plans, respectively. The following table summarizes the total accumulated benefit obligation (ABO), the ABO for defined benefit pension plans with ABO in excess of plan assets and the PBO for defined benefit pension plans with PBO in excess of plan assets: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2023 2022 2023 2022 Total ABO $ 3,334 $ 3,138 $ 1,504 $ 1,376 Plans with ABO in excess of plan assets ABO 1,067 1,044 — — Plans with PBO in excess of plan assets PBO 1,116 1,078 — — Components of Net Periodic Pension Cost (Income) The following table presents the net periodic pension cost (income) under our plans for the years ended December 31: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2023 2022 2021 2023 2022 2021 Service cost $ 117 $ 137 $ 139 $ 17 $ 30 $ 33 Interest cost 168 101 79 70 39 30 Expected return on plan assets (277) (229) (199) (105) (87) (85) Amortization of prior service cost 2 1 1 1 1 2 Recognized net actuarial loss 8 23 47 — 3 31 Net periodic pension cost (income) $ 18 $ 33 $ 67 $ (17) $ (14) $ 11 Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows: In millions 2023 2022 2021 Amortization of prior service cost $ (3) $ (2) $ (3) Recognized net actuarial loss (8) (26) (78) Incurred prior service cost 1 3 — Incurred actuarial loss (gain) 432 173 (368) Foreign currency translation adjustments — — 5 Total recognized in other comprehensive loss (income) $ 422 $ 148 $ (444) Total recognized in net periodic pension cost and other comprehensive loss (income) $ 423 $ 167 $ (366) Assumptions The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2023 2022 2023 2022 Discount rate 5.15 % 5.55 % 4.72 % 4.99 % Cash balance crediting rate 4.55 % 4.56 % — — Compensation increase rate 5.34 % 5.35 % 3.75 % 3.75 % The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2023 2022 2021 2023 2022 2021 Discount rate 5.55 % 3.31 % 2.62 % 4.99 % 2.26 % 1.50 % Expected return on plan assets 7.00 % 6.50 % 6.25 % 5.00 % 4.01 % 4.00 % Compensation increase rate 5.35 % 2.71 % 2.72 % 3.75 % 3.75 % 3.75 % Plan Assets Our investment policies in the U.S. and U.K. provide for the rebalancing of assets to maintain our long-term strategic asset allocation. We are committed to this long-term strategy and do not attempt to time the market. Given empirical evidence that asset allocation is critical, rebalancing of the assets has and continues to occur, maintaining the proper weighting of assets to achieve the expected total portfolio returns. We believe that our portfolio is highly diversified and does not have any significant exposure to concentration risk. The plan assets for our defined benefit pension plans do not include any of our common stock or corporate bonds. U.S. Plan Assets For the U.S. qualified pension plans, our assumption for the expected return is greatly influenced by our objective to match assets and liabilities and the increase in bond yields. Projected returns are based primarily on broad, publicly traded equity and fixed income indices and forward-looking estimates of active portfolio and investment management. We expect additional positive returns from this active investment management. Based on the historical returns and forward-looking return expectations, we elected an assumption of 7.25 percent in 2024. To achieve these objectives, we established the following targets: Asset Class Plan Target U.S. equities 8 % Non-U.S. equities 3 % Global equities 5 % Total equities 16 % Real assets 5 % Private equity/venture capital 5 % Opportunistic credit 3 % Fixed income 71 % Total 100 % The fixed income component of the plans is structured to represent a custom bond benchmark that will closely hedge the change in the value of our liabilities. This component is structured in such a way that its benchmark covers approximately 100 percent of the plans' exposure to changes in its discount rate (AA corporate bond yields). In order to achieve a hedge on more than the targeted 71 percent of plan assets invested in fixed income securities, our Benefits Policy Committee (BPC) permits the fixed income managers, other managers or the custodian/trustee to utilize derivative securities, as part of a liability driven investment strategy to further reduce the plans' risk of changes in interest rates. However, all managers hired to manage assets for the trust are prohibited from using leverage unless approved by the BPC. U.K. Plan Assets The methodology used to determine the rate of return on the pension plan assets in the U.K. was based on establishing an equity-risk premium over current long-term bond yields adjusted based on target asset allocations. Our strategy with respect to our investments in these assets is to be invested in a suitable mixture of return-seeking assets such as equities, real estate and liability matching assets such as group annuity insurance contracts and duration matched bonds. Therefore, the risk and return balance of our U.K. asset portfolio should reflect a long-term horizon. To achieve these objectives, we established the following targets: Asset Class Plan Target Equities 1 % Property/secure income assets 8 % Credit/bank loans 5 % Diversified strategies 1 % Private equity 5 % Fixed income/insurance annuity 78 % Cash 2 % Total 100 % As part of our strategy in the U.K. we have not prohibited the use of any financial instrument, including derivatives. As in the U.S. plans, derivatives may be used to better match liability duration and are not used in a speculative way. The fixed income component of our portfolio hedges approximately 79 percent of the plans' exposure to interest rates and 79 percent of the plans' exposure to inflation. Based on the above discussion, we elected an assumption of 5.00 percent in 2024. Fair Value of U.S. Plan Assets The fair values of U.S. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2023 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 73 $ — $ — $ 73 Non-U.S. 36 — — 36 Fixed income Government debt 157 — 157 Corporate debt U.S. — 603 — 603 Non-U.S. — 49 — 49 Asset/mortgaged backed securities — 8 — 8 Net cash equivalents (1) 467 — — 467 Private markets and real assets (2) — — 604 604 Net plan assets subject to leveling $ 576 $ 817 $ 604 $ 1,997 Pending trade/purchases/sales (16) Accruals (3) 10 Investments measured at net asset value 1,835 Net plan assets $ 3,826 Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 118 $ — $ — $ 118 Non-U.S. 31 — — 31 Fixed income Government debt — 188 — 188 Corporate debt U.S. — 423 — 423 Non-U.S. 12 41 — 53 Asset/mortgaged backed securities 7 — — 7 Net cash equivalents (1) 499 9 — 508 Diversified strategies 14 — — 14 Private markets and real assets (2) — — 641 641 Net plan assets subject to leveling $ 681 $ 661 $ 641 $ 1,983 Accruals (3) 7 Investments measured at net asset value 1,838 Net plan assets $ 3,828 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31. Certain of our assets are valued based on their respective net asset value (NAV) (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows: • U.S. and Non-U.S. Corporate Debt ($915 million and $938 million at December 31, 2023 and 2022, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • U.S. and Non-U.S. Equities ($222 million and $224 million at December 31, 2023 and 2022, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Government Debt ($257 million and $227 million at December 31, 2023 and 2022, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Real Estate ($134 million and $154 million at December 31, 2023 and 2022, respectively) - This asset type represents different types of real estate including development property, industrial property, individual mortgages, office property, property investment companies and retail property. These funds are valued using NAVs and allow quarterly or more frequent redemptions. • Asset/Mortgage Backed Securities ($307 million and $277 million at December 31, 2023 and 2022, respectively) - This asset type represents investments in fixed- and floating-rate loans. These funds are valued using NAVs and allow quarterly or more frequent redemptions. • Diversified Strategies ($0 million and $18 million at December 31, 2023 and 2022, respectively) - These commingled funds invest in commodities, fixed income and equity securities. They have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Private Markets Real Assets Total Balance at December 31, 2021 $ 471 $ 80 $ 551 Actual return on plan assets Unrealized gains on assets still held at the reporting date 6 19 25 Purchases, sales and settlements, net (12) (17) (29) Assumption of Meritor's plan assets 94 — 94 Balance at December 31, 2022 559 82 641 Actual return on plan assets Unrealized gains on assets still held at the reporting date 6 (13) (7) Purchases, sales and settlements, net (28) (2) (30) Balance at December 31, 2023 $ 537 $ 67 $ 604 Fair Value of U.K. Plan Assets The fair values of U.K. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2023 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 12 $ — $ — $ 12 Non-U.S. 8 — — 8 Fixed income Government debt — 232 — 232 Corporate debt U.S. — 30 — 30 Non-U.S. — 95 — 95 Net cash equivalents (1) 17 18 — 35 Insurance annuity — — 436 436 Private markets and real assets (2) — — 103 103 Net plan assets subject to leveling $ 37 $ 375 $ 539 $ 951 Pending trade/purchases/sales 1 Accruals (3) 2 Investments measured at net asset value 766 Net plan assets $ 1,720 Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 13 $ — $ — $ 13 Non-U.S. 9 — — 9 Fixed income Government debt — 222 — 222 Corporate debt U.S. — 24 — 24 Non-U.S. — 80 — 80 Net cash equivalents (1) 27 11 — 38 Insurance annuity — — 428 428 Private markets and real assets (2) — — 390 390 Net plan assets subject to leveling $ 49 $ 337 $ 818 $ 1,204 Pending trade/purchases/sales 141 Accruals (3) 2 Investments measured at net asset value 323 Net plan assets $ 1,670 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31. Ce rtain of our assets are valued based on their respective NAV (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows: • U.S. and Non-U.S. Corporate Debt ($71 million and $77 million at December 31, 2023 and 2022, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Government Debt ($572 million and $64 million at December 31, 2023 and 2022, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. • Asset/Mortgage Backed Securities ($117 million and $128 million at December 31, 2023 and 2022, respectively) - This asset type represents investments in fixed- and floating-rate loans. These funds are valued using NAVs and allow quarterly or more frequent redemptions. • Re-insurance ($6 million and $54 million at December 31, 2023 and 2022, respectively) - This commingled fund has a NAV that is determined on a monthly basis and the investment may be sold at that value. The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Insurance Annuity Real Assets Private Markets Total Balance at December 31, 2021 $ 514 $ 33 $ 356 $ 903 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (178) (2) 39 (141) Purchases, sales and settlements, net — (23) (13) (36) Assumption of Meritor's plan assets 92 — — 92 Balance at December 31, 2022 428 8 382 818 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date 8 — (35) (27) Purchases, sales and settlements, net — (1) (251) (252) Balance at December 31, 2023 $ 436 $ 7 $ 96 $ 539 Level 3 Assets The investments in an insurance annuity contract, venture capital, private equity and real estate, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by quarterly financial statements of the funds. These financial statements are audited at least annually. In conjunction with our investment consultant and actuary, we monitor the fair value of the insurance contract as periodically reported by our insurer and their counterparty risk. The fair value of all real estate properties, held in the partnerships, are valued at least once per year by an independent professional real estate valuation firm. Fair value generally represents the fund's proportionate share of the net assets of the investment partnerships as reported by the general partners of the underlying partnerships. Some securities with no readily available market are initially valued at cost, utilizing independent professional valuation firms as well as market comparisons with subsequent adjustments to values which reflect either the basis of meaningful third-party transactions in the private market or the fair value deemed appropriate by the general partners of the underlying investment partnerships. In such instances, consideration is also given to the financial condition and operating results of the issuer, the amount that the investment partnerships can reasonably expect to realize upon the sale of the securities and any other factors deemed relevant. The estimated fair values are subject to uncertainty and therefore may differ from the values that would have been used had a ready market for such investments existed and such differences could be material. Estimated Future Contributions and Benefit Payments We plan to contribute approximately $67 million to our defined benefit pension plans in 2024. The table below presents expected future benefit payments under our pension plans: Qualified and Non-Qualified Pension Plans In millions 2024 2025 2026 2027 2028 2029 - 2033 Expected benefit payments $ 360 $ 358 $ 361 $ 364 $ 370 $ 1,872 Other Pension Plans We also sponsor defined contribution plans for certain hourly and salaried employees. Our contributions to these plans were $130 million, $110 million and $92 million for the years ended December 31, 2023, 2022 and 2021. Other Postretirement Benefits Our OPEB plans provide various health care and life insurance benefits to eligible employees, who retire and satisfy certain age and service requirements, and their dependents. The plans are contributory and contain cost-sharing features such as caps, deductibles, coinsurance and spousal contributions. Employer contributions are limited by formulas in each plan. Retiree contributions for health care benefits are adjusted annually, and we reserve the right to change benefits covered under these plans. There were no plan assets for OPEB plans as our policy is to fund benefits and expenses for these plans as claims and premiums are incurred. Obligations and Funded Status Benefit obligation balances presented below reflect the accumulated postretirement benefit obligations for our OPEB plans. The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows: December 31, In millions 2023 2022 Change in benefit obligation Benefit obligation at the beginning of the year $ 162 $ 192 Interest cost 9 5 Plan participants' contributions 18 4 Actuarial gain (2) (25) Benefits paid directly by employer (37) (36) Assumption of Meritor's benefit obligation — 22 Benefit obligation at end of year $ 150 $ 162 Funded status at end of year $ (150) $ (162) Amounts recognized in consolidated balance sheets Accrued compensation, benefits and retirement costs $ (19) $ (21) Other liabilities (131) (141) Net amount recognized $ (150) $ (162) Amounts recognized in accumulated other comprehensive loss Net actuarial gain $ (44) $ (44) Prior service credit (3) (3) Net amount recognized $ (47) $ (47) In addition to the OPEB plans in the above table, we also maintain less significant OPEB plans in five other countries outside the U.S. that comprise approximately 16 percent and 14 percent of our OPEB obligations at December 31, 2023 and 2022, respectively. These plans are reflected in other liabilities in our Consolidated Balance Sheets . Components of Net Periodic OPEB Cost The following table presents the net periodic OPEB cost under our plans: Years ended December 31, In millions 2023 2022 2021 Interest cost $ 9 $ 5 $ 5 Recognized net actuarial gain (2) — — Net periodic OPEB cost $ 7 $ 5 $ 5 Other changes in benefit obligations recognized in other comprehensive loss (income) for the years ended December 31 were as follows: Years ended December 31, In millions 2023 2022 2021 Recognized net actuarial gain $ 2 $ — $ — Incurred actuarial gain (2) (25) (8) Total recognized in other comprehensive loss (income) $ — $ (25) $ (8) Total recognized in net periodic OPEB cost and other comprehensive loss (income) $ 7 $ (20) $ (3) Assumptions The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows: 2023 2022 Discount rate 5.19 % 5.59 % The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows: 2023 2022 2021 Discount rate 5.59 % 2.93 % 2.30 % Our consolidated OPEB obligation is determined by application of the terms of health care and life insurance plans, together with relevant actuarial assumptions and health care cost trend rates. For measurement purposes, a 6.75 percent annual rate of increase in the per capita cost of covered health care benefits was assumed in 2023. The rate is assumed to decrease on a linear basis to 5.0 percent through 2032 and remain at that level thereafter. Estimated Benefit Payments The table below presents expected benefit payments under our OPEB plans: In millions 2024 2025 2026 2027 2028 2029 - 2033 Expected benefit payments $ 20 $ 18 $ 16 $ 16 $ 15 $ 58

SUPPLEMENTAL BALANCE SHEET

SUPPLEMENTAL BALANCE SHEET	12 Months Ended
	Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Supplemental Balance Sheet Disclosures	NOTE 12. SUPPLEMENTAL BALANCE SHEET DATA Other assets included the following: December 31, In millions 2023 2022 Deferred income taxes $ 1,082 $ 625 Operating lease assets 501 492 Corporate owned life insurance 417 390 Other 543 633 Other assets $ 2,543 $ 2,140 Other accrued expenses included the following: December 31, In millions 2023 2022 Agreement in Principle (1) $ 1,938 $ — Marketing accruals 399 316 Other taxes payable 296 224 Income taxes payable 242 173 Current portion of operating lease liabilities 138 132 Other 741 620 Other accrued expenses $ 3,754 $ 1,465 (1) See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information. Other liabilities included the following: December 31, In millions 2023 2022 Accrued product warranty $ 777 $ 744 Pensions 530 445 Deferred income taxes 530 649 Operating lease liabilities 374 368 Accrued compensation 213 184 Other postretirement benefits 131 141 Mark-to-market valuation on interest rate derivatives 117 151 Long-term income taxes 111 192 Other long-term liabilities 647 437 Other liabilities $ 3,430 $ 3,311

DEBT

DEBT	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 13. DEBT Loans Payable Loans payable at December 31, 2023 and 2022 were $280 million and $210 million, respectively, and consisted primarily of notes payable to financial institutions. The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows: 2023 2022 Weighted-average interest rate 3.31 % 4.02 % Commercial Paper Our committed credit facilities provide access 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. We had $1.496 billion and $2.574 billion in outstanding borrowings under our commercial paper programs at December 31, 2023 and 2022, respectively. The weighted-average interest rate for commercial paper at December 31 was as follows: 2023 2022 Weighted-average interest rate 5.43 % 4.27 % 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 was scheduled to mature 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. On August 18, 2021, we entered into an amended and restated 5-year revolving credit agreement, which allows us to borrow up to $2 billion of unsecured funds at any time prior to August 18, 2026. In connection with the new credit agreements, on August 17, 2022, we entered into an amendment to our $2.0 billion five-year facility to replace LIBOR with Secured Overnight Financing Rate (SOFR) as an interest rate benchmark and to make other conforming changes to interest rate determinations. Amounts payable under our revolving credit facility rank pro rata with all of our unsecured, unsubordinated indebtedness. Up to $300 million under this credit facility is available for swingline loans. Based on our current long-term debt ratings, the applicable margin on SOFR rate loans was 0.85 percent per annum. Advances under the facility may be prepaid without premium or penalty, subject to customary breakage costs. Our committed credit facilities provide access up to $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. Our credit agreements include various covenants, including, among others, maintaining a net debt to total capital ratio of no more than 0.65 to 1.0. At December 31, 2023, we were in compliance with the financial debt covenants. There were no outstanding borrowings under these facilities at December 31, 2023 and December 31, 2022. The total combined borrowing capacity under the revolving credit facilities and commercial programs should not exceed $4.0 billion. At December 31, 2023, our $1.5 billion of commercial paper outstanding effectively reduced the $4.0 billion available capacity under our revolving credit facilities to $2.5 billion. At December 31, 2023, we also had an additional $393 million available for borrowings under our international and other domestic credit facilities. At December 31, 2023, Atmus had no outstanding borrowings under 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: December 31, In millions Interest Rate 2023 2022 Long-term debt Senior notes, due 2023 3.65% $ — $ 500 Hydrogenics promissory notes, due 2024 and 2025 (1) —% 160 — Term loan, due 2025 (2)(3) Variable 1,150 1,550 Senior notes, due 2025 (4) 0.75% 500 500 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 94 121 Unamortized discount and deferred issuance costs (72) (64) Fair value adjustments due to hedge on indebtedness (96) (122) Finance leases 111 113 Total long-term debt 4,920 5,071 Less: Current maturities of long-term debt 118 573 Long-term debt $ 4,802 $ 4,498 (1) See NOTE 24, "ACQUISITIONS," for additional information. (2) During 2023, we paid down $400 million of the term loan. (3) In September 2023, we entered into a series of interest rate swaps in order to trade a portion of the floating rate into fixed rate. See "Interest Rate Risk" in NOTE 21, "DERIVATIVES," for additional information. (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 21, "DERIVATIVES," 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 2024 2025 2026 2027 2028 Principal payments $ 118 $ 1,797 $ 67 $ 614 $ 266 On July 13, 2022, we entered into a loan agreement under which we may obtain delayed-draw loans in an amount up to $2.0 billion in the aggregate prior to October 13, 2022. We drew down the entire $2.0 billion balance on August 2, 2022, to help fund the acquisition of Meritor. The interest rate is based on SOFR for the one-month interest period plus the relevant spread. The loan will mature on August 1, 2025. As of December 31, 2023 we repaid $850 million of this term loan. The agreement contains customary events of default and financial and other covenants, including maintaining a net debt to capital ratio of no more than 0.65 to 1.0. The $250 million 7.125 percent debentures and $165 million 5.65 percent debentures are unsecured and are not subject to any sinking fund requirements. We can redeem these debentures at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture holders are not penalized by the early redemption. Our debt agreements contain several restrictive covenants. The most restrictive of these covenants applies to our revolving credit facility which will upon default, among other things, limit our ability to incur additional debt or issue preferred stock, enter into sale-leaseback transactions, sell or create liens on our assets, make investments and merge or consolidate with any other entity. At December 31, 2023, we were in compliance with all of the financial debt covenants under our borrowing agreements. Shelf Registration As a well-known seasoned issuer, we filed an automatic shelf registration for an undetermined amount of debt and equity securities with the Securities and Exchange Commission (SEC) on February 8, 2022. Under this shelf registration we may offer, from time to time, debt securities, common stock, preferred and preference stock, depositary shares, warrants, stock purchase contracts and stock purchase units. Our current shelf is scheduled to expire in February 2025. Interest Expense For the years ended December 31, 2023, 2022 and 2021, total interest incurred was $383 million, $204 million and $113 million, respectively, and interest capitalized was $8 million, $5 million and $2 million, respectively. Fair Value of Debt Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows: December 31, In millions 2023 2022 Fair values of total debt (1) $ 6,375 $ 7,400 Carrying value of total debt 6,696 7,855 (1) The fair value of debt is derived from Level 2 input measures. Atmus Credit Agreement

PRODUCT WARRANTY LIABILITY

PRODUCT WARRANTY LIABILITY	12 Months Ended
	Dec. 31, 2023
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY LIABILITY	NOTE 14. PRODUCT WARRANTY LIABILITY A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued product campaigns, was as follows: December 31, In millions 2023 2022 2021 Balance at beginning of year $ 2,477 $ 2,425 $ 2,307 Provision for base warranties issued 602 515 503 Deferred revenue on extended warranty contracts sold 350 287 288 Provision for product campaigns issued 28 141 346 Payments made during period (705) (596) (530) Amortization of deferred revenue on extended warranty contracts (300) (298) (260) Changes in estimates for pre-existing product warranties and campaigns 37 (128) (228) Acquisitions (1) — 147 — Foreign currency translation adjustments and other 8 (16) (1) Balance at end of year $ 2,497 $ 2,477 $ 2,425 (1) See NOTE 24, "ACQUISITIONS," for additional information. We recognized supplier recoveries of $36 million, $39 million and $170 million for the years ended December 31, 2023, 2022 and 2021, respectively. Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows: December 31, In millions 2023 2022 Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 279 $ 290 Current portion of deferred revenue Long-term portion 774 717 Deferred revenue Total $ 1,053 $ 1,007 Product warranty Current portion $ 667 $ 726 Current portion of accrued product warranty Long-term portion 777 744 Other liabilities Total $ 1,444 $ 1,470 Total warranty accrual $ 2,497 $ 2,477

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 15. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to numerous lawsuits and claims arising out of the ordinary course of our business, including actions related to product liability; personal injury; the use and performance of our products; warranty matters; product recalls; patent, trademark or other intellectual property infringement; contractual liability; the conduct of our business; tax reporting in foreign jurisdictions; distributor termination; workplace safety; environmental matters; and asbestos claims. We also have been identified as a potentially responsible party at multiple waste disposal sites under U.S. federal and related state environmental statutes and regulations and may have joint and several liability for any investigation and remediation costs incurred with respect to such sites. We have denied liability with respect to many of these lawsuits, claims and proceedings and are vigorously defending such lawsuits, claims and proceedings. We carry various forms of commercial, property and casualty, product liability and other forms of insurance; however, such insurance may not be applicable or adequate to cover the costs associated with a judgment against us with respect to these lawsuits, claims and proceedings. We do not believe that these lawsuits are material individually or in the aggregate. While we believe we have also established adequate accruals for our expected future liability with respect to pending lawsuits, claims and proceedings, where the nature and extent of any such liability can be reasonably estimated based upon then presently available information, there can be no assurance that the final resolution of any existing or future lawsuits, claims or proceedings will not have a material adverse effect on our business, results of operations, financial condition or cash flows. We conduct significant business operations in Brazil that are subject to the Brazilian federal, state and local labor, social security, tax and customs laws. While we believe we comply with such laws, they are complex, subject to varying interpretations and we are often engaged in litigation regarding the application of these laws to particular circumstances. On June 28, 2022, KAMAZ Publicly Traded Company (KAMAZ) was designated to the List of Specially Designated Nationals and Blocked Persons by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). We filed blocked property reports for relevant assets and sought 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, and from the U.K. Office of Financial Sanctions Implementation on September 15, 2023, which allowed us to finalize the exit of 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 EPA and CARB regarding certification of our engines in model year 2019 RAM 2500 and 3500 trucks. This review was conducted with external advisors as we continue to 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. In December 2023, we announced that we reached the Agreement in Principle with EPA, CARB, the Environmental and Natural Resources Division of the DOJ and the CA AG to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S. As part of the Agreement in Principle, among other things, we agreed to pay civil penalties, complete recall requirements, undertake mitigation projects, provide extended warranties, undertake certain testing, take certain corporate compliance measures and make other payments. Failure to comply with the Agreement in Principle will subject us to further stipulated penalties. We recorded a charge of $2.036 billion in the fourth quarter of 2023 to resolve the matters addressed by the Agreement in Principle involving approximately one million of our pick-up truck applications in the U.S. This charge was in addition to the previously announced charges of $59 million for the recalls of model years 2013 through 2018 RAM 2500 and 3500 trucks and model years 2016 through 2019 Titan trucks. The Agreement in Principle remains subject to final regulatory and judicial approvals, and we cannot be certain that the Agreement in Principle will be approved, in its current form, or at all. See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information. We have also been in communication with other non-U.S. regulators regarding matters related to the emission systems in our engines and may also become subject to additional regulatory review in connection with these matters. In connection with our announcement of our entry into the Agreement in Principle, we have become subject to shareholder, consumer and third-party litigation regarding the matters covered by the Agreement in Principle and we may become subject to additional litigation in connection with these matters. The consequences resulting from the resolution of the foregoing matters are uncertain and the related expenses and reputational damage could have a material adverse impact on our results of operations, financial condition and cash flows. Guarantees and Commitments Periodically, we enter into guarantee arrangements, including guarantees of non-U.S. distributor financings, residual value guarantees on equipment under operating leases and other miscellaneous guarantees of joint ventures or third-party obligations. At December 31, 2023, the maximum potential loss related to these guarantees was $41 million. We have arrangements with certain suppliers that require us to purchase minimum volumes or be subject to monetary penalties. At December 31, 2023, if we were to stop purchasing from each of these suppliers, the aggregate amount of the penalty would be approximately $393 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, palladium and iridium to purchase certain volumes of the commodities at contractually stated prices for various periods, which generally fall within two years. At December 31, 2023, the total commitments under these contracts were $104 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 $178 million at December 31, 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.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 16. CUMMINS INC. SHAREHOLDERS' EQUITY Preferred and Preference Stock We are authorized to issue one million shares of zero par value preferred and one million shares of preference stock with preferred shares being senior to preference shares. We can determine the number of shares of each series, and the rights, preferences and limitations of each series. At December 31, 2023 and 2022, there was no preferred or preference stock outstanding. Common Stock Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans were as follows: In millions Common Treasury Balance at December 31, 2020 222.4 74.8 Shares acquired — 5.7 Shares issued 0.1 (0.5) Balance at December 31, 2021 222.5 80.0 Shares acquired — 1.9 Shares issued — (0.7) Balance at December 31, 2022 222.5 81.2 Shares issued — (0.5) Balance at December 31, 2023 222.5 80.7 Treasury Stock Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of shareholders' equity in our Consolidated Balance Sheets . Treasury shares may be reissued as part of our stock-based compensation programs. When shares are reissued, we use the weighted-average cost method for determining cost. The gains between the cost of the shares and the issuance price are added to additional paid-in-capital. The losses are deducted from additional paid-in capital to the extent of the gains. Thereafter, the losses are deducted from retained earnings. Treasury stock activity for the three-year period ended December 31, 2023, consisting of shares issued and repurchased is presented in our Consolidated Statements of Changes in Redeemable Noncontrolling Interests and Equity . In December 2021, the Board authorized the acquisition of up to $2.0 billion of additional common stock upon completion of the $2.0 billion repurchase plan authorized in 2019. The dollar value remaining available for future purchases under the 2019 program at December 31, 2023, was $218 million. We did not make any repurchases of common stock during 2023. We repurchased $374 million and $1,402 million of our common stock in the years ended December 31, 2022 and 2021, respectively. Dividends Total dividends paid to common shareholders in 2023, 2022 and 2021 were $921 million, $855 million and $809 million, respectively. Declaration and payment of dividends in the future depends upon our income and liquidity position, among other factors, and is subject to declaration by the Board, who meets quarterly to consider our dividend payment. We expect to fund dividend payments with cash from operations. In July 2023, the Board authorized an increase to our quarterly dividend of 7.0 percent from $1.57 per share to $1.68 per share. In July 2022, the Board authorized an 8.3 percent increase to our quarterly cash dividend on our common stock from $1.45 per share to $1.57 per share. In July 2021, the Board approved a 7.4 percent increase to our quarterly dividend on our common stock from $1.35 per share to $1.45 per share. Cash dividends per share paid to common shareholders for the last three years were as follows: Quarterly Dividends 2023 2022 2021 First quarter $ 1.57 $ 1.45 $ 1.35 Second quarter 1.57 1.45 1.35 Third quarter 1.68 1.57 1.45 Fourth quarter 1.68 1.57 1.45 Total $ 6.50 $ 6.04 $ 5.60

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 17. ACCUMULATED OTHER COMPREHENSIVE LOSS Following are the changes in accumulated other comprehensive (loss) income by component: In millions Change in pensions Foreign Unrealized gain Total Noncontrolling Total Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income (loss) before reclassifications Before-tax amount 425 (5) 38 458 $ (5) $ 453 Tax (expense) benefit (103) 1 (12) (114) — (114) After-tax amount 322 (4) 26 344 (5) 339 Amounts reclassified from accumulated other comprehensive income (1) 67 — — 67 — 67 Net current period other comprehensive income (loss) 389 (4) 26 411 $ (5) $ 406 Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount (123) (350) 136 (337) $ (40) $ (377) Tax benefit (expense) 19 6 (32) (7) — (7) After-tax amount (104) (344) 104 (344) (40) (384) Amounts reclassified from accumulated other comprehensive income (1) 23 — 2 25 — 25 Net current period other comprehensive income (loss) (81) (344) 106 (319) $ (40) $ (359) Balance at December 31, 2022 $ (427) $ (1,552) $ 89 $ (1,890) Other comprehensive income (loss) before reclassifications Before-tax amount (541) 96 35 (410) $ (3) $ (413) Tax benefit (expense) 113 (1) (7) 105 — 105 After-tax amount (428) 95 28 (305) (3) (308) Amounts reclassified from accumulated other comprehensive income (1) 7 — (18) (11) — (11) Net current period other comprehensive (loss) income (421) 95 10 (316) $ (3) $ (319) Balance at December 31, 2023 $ (848) $ (1,457) $ 99 $ (2,206) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS	12 Months Ended
	Dec. 31, 2023
Noncontrolling Interest [Abstract]
NONCONTROLLING INTERESTS	NOTE 18. NONCONTROLLING INTERESTS Noncontrolling interests in the equity of consolidated subsidiaries were as follows: December 31, In millions 2023 2022 Eaton Cummins Automated Transmission Technologies $ 534 $ 525 Cummins India Ltd. 388 342 Other 132 125 Noncontrolling interests $ 1,054 $ 992

STOCK INCENTIVE AND STOCK OPTIO

STOCK INCENTIVE AND STOCK OPTION PLANS	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
STOCK INCENTIVE AND STOCK OPTION PLANS	NOTE 19. STOCK INCENTIVE AND STOCK OPTION PLANS Our stock incentive plan (the Plan) allows for granting of up to 8.5 million total shares of equity awards to executives, employees and non-employee directors. Awards available for grant under the Plan include, but are not limited to, stock options, stock appreciation rights, performance shares and other stock awards. Shares issued under the Plan may be newly issued shares or reissued treasury shares. Stock options are generally granted with a strike price equal to the fair market value of the stock on the date of grant and a life of 10 years. Stock options granted have a three Stock options are also awarded through the Key Employee Stock Investment Plan (KESIP) which allows certain employees, other than officers, to purchase shares of common stock on an installment basis up to an established credit limit. For every block of 100 KESIP shares purchased by the employee 50 stock options are granted. The options granted through the KESIP program are considered awards under the Plan and are vested immediately. Compensation expense for stock options granted through the KESIP program is recorded based on the fair value of each option grant using the Black-Scholes option pricing model. Performance shares are granted as target awards and are earned based on certain measures of our operating performance. A payout factor has been established ranging from 0 to 200 percent of the target award based on our actual performance during the three Restricted stock and restricted stock units are awarded from time to time at no cost to certain employees. Restrictions limit the sale or transfer of the shares during a defined period. Most awards are not entitled to cash dividends and voting rights until vesting. Generally, the shares vest and become free from restrictions ratably over a three Employee compensation expense (net of estimated forfeitures) related to our share-based plans for the years ended December 31, 2023, 2022 and 2021, was approximately $79 million, $33 million and $36 million, respectively. The excess tax benefit associated with our employee share-based plans for the years ended December 31, 2023, 2022 and 2021, was $7 million, $8 million and $9 million, respectively. The total unrecognized compensation expense (net of estimated forfeitures) related to nonvested awards for our employee share-based plans was approximately $95 million at December 31, 2023 and is expected to be recognized over a weighted-average period of approximately two years. The table below summarizes the employee share-based activity in the Plan: Options Weighted-average Weighted-average Aggregate Balance at December 31, 2020 3,175,530 $ 142.63 Granted 16,550 232.44 Exercised (400,154) 138.93 Forfeited (48,828) 153.72 Balance at December 31, 2021 2,743,098 143.51 Granted 18,900 207.79 Exercised (586,990) 137.83 Forfeited (29,045) 148.08 Balance at December 31, 2022 2,145,963 145.57 Granted 17,500 225.39 Exercised (345,250) 142.69 Forfeited (3,793) 144.16 Balance at December 31, 2023 1,814,420 $ 146.89 4.2 $ 169 Exercisable, December 31, 2021 1,629,588 $ 136.74 4.4 $ 133 Exercisable, December 31, 2022 1,655,298 $ 146.37 4.6 $ 159 Exercisable, December 31, 2023 1,814,420 $ 146.89 4.2 $ 169 The weighted-average grant date fair value of options granted during the years ended December 31, 2023, 2022 and 2021, was $57.01, $45.74 and $46.03, respectively. The total intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021, was approximately $35 million, $53 million and $41 million, respectively. The share-based activity and weighted-average grant date fair value of performance and restricted shares was as follows: Performance Shares Restricted Shares Nonvested Shares Weighted-average Shares Weighted-average Balance at December 31, 2020 376,954 $ 140.85 3,704 $ 165.04 Granted 217,684 234.22 26,224 265.41 Vested (131,744) 146.55 — — Forfeited (22,745) 171.91 — — Balance at December 31, 2021 440,149 183.72 29,928 252.99 Granted 230,535 184.92 215,260 209.08 Vested (122,188) 148.99 (5,513) 249.79 Forfeited (63,197) 182.68 (3,262) 211.37 Balance at December 31, 2022 485,299 193.17 236,413 213.66 Granted 170,205 222.86 176,128 223.92 Vested (99,425) 126.38 (74,270) 215.38 Forfeited (68,566) 199.69 (27,931) 217.01 Balance at December 31, 2023 487,513 $ 216.24 310,340 $ 218.77 The total vesting date fair value of performance shares vested during the years ended December 31, 2023, 2022 and 2021, was $25 million, $24 million and $35 million, respectively. The total fair value of restricted shares vested was $17 million, $1 million and $0 for the years ended December 31, 2023, 2022 and 2021, respectively. The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: 2023 2022 2021 Expected life (years) 6 6 6 Risk-free interest rate 3.91 % 2.32 % 1.15 % Expected volatility 28.73 % 28.40 % 28.68 % Dividend yield 2.81 % 2.85 % 2.95 % Expected life —The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding based upon our historical data. Risk-free interest rate —The risk-free interest rate assumption is based upon the observed U.S. treasury security rate appropriate for the expected life of our employee stock options. Expected volatility —The expected volatility assumption is based upon the weighted-average historical daily price changes of our common stock over the most recent period equal to the expected option life of the grant, adjusted for activity which is not expected to occur in the future. Dividend yield —The dividend yield assumption is based on our history and expectation of dividend payouts.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 20. EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. We calculate basic earnings per share (EPS) of common stock by dividing net income attributable to Cummins Inc. by the weighted-average number of common shares outstanding for the period. The calculation of diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding, which is calculated using the treasury-stock method for share-based awards. Following are the computations for basic and diluted earnings per share: Years ended December 31, In millions, except per share amounts 2023 2022 2021 Net income attributable to Cummins Inc. $ 735 $ 2,151 $ 2,131 Weighted-average common shares outstanding Basic 141.7 141.5 144.6 Dilutive effect of stock compensation awards 1.0 0.8 1.3 Diluted 142.7 142.3 145.9 Earnings per common share attributable to Cummins Inc. Basic $ 5.19 $ 15.20 $ 14.74 Diluted 5.15 15.12 14.61 The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows: Years ended December 31, 2023 2022 2021 Options excluded 10,587 20,595 6,463

DERIVATIVES

DERIVATIVES	12 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure	NOTE 21. 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 $4.5 billion at December 31, 2023, with the following currencies comprising 85 percent of outstanding foreign currency forward contracts: British pound, Chinese renminbi, Canadian dollar, Australian dollar and Swedish kronor. We had foreign currency forward contracts with notional amounts of $3.6 billion at December 31, 2022, with the following currencies comprising 88 percent of outstanding foreign currency forward contracts: Chinese renminbi, British pound, Canadian dollar, Australian dollar and Euro. We are further exposed to foreign currency exchange risk as many of our subsidiaries are subject to fluctuations as the functional currencies of the underlying entities are not our U.S. dollar reporting currency. To help minimize movements for certain investments, in 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 December 31, 2023, was $808 million. The following table summarizes the net investment hedge activity in AOCL: Years ended December 31, In millions 2023 2022 Type of Derivative Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Foreign exchange forwards $ (30) $ — $ (22) $ — Interest Rate Risk In September 2023, we entered into a series of interest rate swaps with a total notional value of $500 million in order to trade a portion of the floating rate into a fixed rate on our term loan, due in 2025. The maturity date of the interest rate swaps is August 1, 2025. The weighted-average interest rate of the interest rate swaps is 5.72 percent. We designated the swaps as cash flow hedges. The gains and losses on these derivative instruments are initially recorded in other comprehensive income and reclassified into earnings as interest expense in the Consolidated Financial Statements as each interest payment is accrued. The following table summarizes the interest rate swap activity in AOCL: Year ended December 31, In millions 2023 Type of Swap Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate swaps $ (4) $ — In 2021, we entered into a series of interest rate swaps to effectively convert our $500 million senior notes, due in 2025, from a fixed rate of 0.75 percent to a floating rate equal to the three-month LIBOR plus a spread. We also entered into a series of interest rate swaps to effectively convert $765 million of our $850 million senior notes, due in 2030, from a fixed rate of 1.50 percent to a floating rate equal to the three-month LIBOR plus a spread. The fallback protocol in our derivative agreements allowed for a transition from LIBOR to SOFR in the third quarter of 2023. 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 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: Years ended December 31, In millions 2023 2022 2021 Type of Swap Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Interest rate swaps (1) $ 31 $ (32) $ (148) $ 145 $ (3) $ 2 (1) The difference between the gain (loss) on swaps and borrowings represented hedge ineffectiveness. In 2019, we entered into $350 million of interest rate lock agreements, and in 2020 we entered into an additional $150 million of lock agreements to reduce the variability of the cash flows of the interest payments on a total of $500 million of fixed rate debt originally 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 2022, we settled certain rate lock agreements with notional amounts totaling $150 million for $49 million in cash. In 2023, we settled all remaining rate lock agreements with notional amounts totaling $350 million for $101 million. The majority of the $150 million of gains on settlements will remain in other comprehensive income and will be amortized over the term of the debt anticipated to be issued in early 2024. The following table summarizes the interest rate lock activity in AOCL: Year ended December 31, In millions 2023 2022 2021 Type of Swap Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate locks $ 14 $ 2 $ 112 $ — $ 19 $ — Cash Flow Hedging The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments classified as cash flow hedges. The table does not include amounts related to ineffectiveness as it was not material for the periods presented. Years ended December 31, In millions 2023 2022 2021 Gain (loss) reclassified from AOCL into income - Net sales (1) $ 17 $ (4) $ (4) Gain reclassified from AOCL into income - Cost of sales (1)(2) 3 1 6 (1) Includes foreign currency forward contracts. (2) Includes commodity swap contracts. Derivatives Not Designated as Hedging Instruments The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments not designated as hedging instruments: Years ended December 31, In millions 2023 2022 2021 (Loss) gain recognized in income - Cost of sales (1) $ (3) $ 2 $ — (Loss) gain recognized in income - Other income, net (1) (21) (5) 45 (1) Includes foreign currency forward contracts. Fair Value Amount and Location of Derivative Instruments The following table summarizes the location and fair value of derivative instruments on our Consolidated Balance Sheets : Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, In millions 2023 2022 2023 2022 Notional amount $ 2,997 $ 3,051 $ 3,610 $ 2,900 Derivative assets Prepaid expenses and other current assets $ 14 $ 18 $ 16 $ 27 Other assets — 80 — — Total derivative assets (1) $ 14 $ 98 $ 16 $ 27 Derivative liabilities Other accrued expenses $ 43 $ 19 $ 14 $ 3 Other liabilities 117 151 — — Total derivative liabilities (1) $ 160 $ 170 $ 14 $ 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 2023 or 2022. We elected to present our derivative contracts on a gross basis in our Consolidated Balance Sheets . Had we chosen to present on a net basis, we would have derivatives in a net asset position of $4 million and $52 million and derivatives in a net liability position of $148 million and $100 million at December 31, 2023, and 2022, respectively.

RUSSIAN OPERATIONS

RUSSIAN OPERATIONS	12 Months Ended
	Dec. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure	NOTE 22. 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. The following summarizes the costs associated with the suspension of our Russian operations in our Consolidated Statements of Net Income: Year ended In millions December 31, Statement of Net Income Location Inventory write-downs $ 17 Cost of sales Accounts receivable reserves 41 Other operating expense, net Impairment and other joint venture costs 31 Equity, royalty and interest income from investees Other 22 Other operating expense, net Russian suspension costs, net of recoveries $ 111

FORMATION OF ATMUS AND IPO

FORMATION OF ATMUS AND IPO	12 Months Ended
	Dec. 31, 2023
Business Acquisition [Line Items]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 24. ACQUISITIONS Acquisitions for the years ended December 31, 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 Type of Acquisition (1) Goodwill Acquired Intangibles Recognized (2) 2023 Cummins France SA 10/31/23 100 % $ 25 $ 5 $ 30 COMB $ 4 $ — Faurecia 10/02/23 100 % 210 — 210 (3) COMB 90 — Hydrogenics Corporation (Hydrogenics) 06/29/23 19 % 287 48 335 (4) EQUITY — — Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) 04/03/23 100 % 143 — 143 (5) COMB 18 — 2022 Siemens Commercial Vehicles Propulsion (Siemens CVP) 11/30/22 100 % $ 187 $ — $ 187 COMB $ 70 $ 106 Meritor, Inc. (Meritor) 08/03/22 100 % 2,613 248 2,861 COMB 926 1,610 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) 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). (2) Intangible assets acquired in the business combination were mostly customer, technology and trade name related. (3) Total purchase consideration included $30 million for the settlement of accounts payable that were treated as an operating cash outflow. (4) 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. (5) Total purchase consideration included $32 million for the settlement of accounts payable that were treated as an operating cash outflow. Faurecia On October 2, 2023, we purchased, from the Forvia Group, all of the equity ownership of Faurecia's U.S. and Europe commercial vehicle exhaust business for $210 million, subject to certain working capital and other customary adjustments, and does not contain any contingent consideration. The acquisition provides canning and assembly operations for full exhaust systems primarily for on-highway applications, ensures the long-term supply of aftertreatment components, minimizes opportunities for supply disruptions, adds significant technical and manufacturing resources and enhances our existing portfolio. 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 contingent liabilities and deferred taxes. The preliminary purchase price allocation was as follows: In millions Cash and cash equivalents $ 8 Accounts and notes receivable, net (1) 52 Inventories 32 Property, plant and equipment 93 Goodwill 90 Other current and long-term assets 46 Accounts payable (principally trade) (62) Other current and long-term liabilities (49) Total purchase price $ 210 (1) Includes $30 million of Cummins receivables that were eliminated against payables at other Cummins entities. Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible assets and liabilities. All of the goodwill is expected to be deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are an acquired workforce and other economic benefits that are anticipated to arise from operational synergies from combining the business with Cummins. The results of this business were reported in our Components segment within the emission solutions business. Since we are the primary customer of this business, the acquisition is not expected to result in material incremental sales to our business. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements. 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 Consolidated Financial Statements. The debt amount, net of unamortized debt discount, was $148 million and reflected in current maturities of long-term debt and long-term debt at December 31, 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 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 $143 million (including $32 million for the settlement of accounts payable), 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 $18 million of goodwill, none of which is deductible for tax purposes. In the third quarter we finalized the purchase accounting and made certain other adjustments, which resulted in a $7 million decrease in goodwill. The results of the business were reported in our Engine segment. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements . Siemens CVP On November 30, 2022, we acquired Siemens' Commercial Vehicles Propulsion business for approximately $187 million, subject to working capital and other customary adjustments, and was allocated primarily to intangible assets, goodwill and inventories. This business develops, designs and produces electric drive systems including electric motors, inverters, software and related services for the commercial vehicle markets. This acquisition is included in our Accelera segment. This acquisition added key capabilities in direct drive and transmission-based remote mount electric motors, inverters, software and related services that are critical elements in the next generation of electric powertrain, which will accelerate our ability to offer global customers a wider array of electrified product solutions across commercial vehicle applications. Final purchase accounting adjustments did not significantly impact goodwill. Meritor, Inc. On August 3, 2022, we completed the acquisition of Meritor whereby we paid $36.50 per share for each outstanding share of Meritor, a global leader of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. The total purchase price was $2.9 billion, including debt that was retired on the closing date of $248 million. In addition, we assumed $1.0 billion of additional debt, of which $0.9 billion was retired prior to the end of the third quarter of 2022. The acquisition was funded with a combination of $2.0 billion in new debt (see NOTE 13, "DEBT" for additional details), cash on hand and additional commercial paper borrowings. The integration of Meritor’s people, technology and capabilities position us as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications at a time when demand for decarbonized solutions is continuing to accelerate. The majority of this business was be included within our Components segment with the exception of the electric powertrain business, which was included in our Accelera segment. The final purchase price allocation has been updated as follows: In millions Cash and cash equivalents $ 98 Accounts and notes receivable, net 640 Inventories 750 Property, plant and equipment 841 Intangible assets 1,610 Investments and advances related to equity method investees 382 Goodwill 926 Pension assets 147 Other current and long-term assets 322 Accounts payable (principally trade) (711) Net deferred taxes (277) Other liabilities (pensions and other postretirement benefits) (129) Long-term debt (962) Other current and long-term liabilities (665) Noncontrolling interests (111) Total purchase price $ 2,861 During 2023, we finalized our accounting for the Meritor, Inc. acquisition. The primary components of the change were to increase contingent liabilities by $70 million offset by finalization of deferred taxes and tax reserves, with a net increase to goodwill of $32 million. There was no impact to the Consolidated Statements of Net Income for any of the changes. The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 960 12 Multi-period excess earnings Revenue, EBITDA (1) , discount rate, customer renewal rates, customer attrition rates Technology 345 8 Relief-from-royalty Royalty rate, discount rate, obsolescence factor Trade name 305 21 Relief-from-royalty Royalty rate, discount rate (1) Earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. Annual amortization of the intangible assets for the next five years is expected to approximate $142 million per year. Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible and intangible assets and liabilities. Goodwill was allocated to the Components segment ($759 million) and the Accelera segment ($167 million) based on the relative value of those businesses compared to the assets and liabilities assigned to them. We do not expect any of the goodwill to be deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are Meritor’s expected future customers, new versions of technologies, an acquired workforce, other economic benefits that are anticipated to arise from future product sales and operational synergies from combining the business with Cummins. Included in our results for the year ended December 31, 2022, were revenues of $1.9 billion and net loss of $43 million related to this business. In addition, in 2022 we incurred acquisition related costs of $30 million included in selling, general and administrative expenses in our Consolidated Statements of Net Income . The following table presents the supplemental consolidated results of the Company for the years ended December 2022 and 2021, on an unaudited pro-forma basis as if the acquisition had been consummated on January 1, 2021. The primary adjustments reflected in the pro-forma results related to (1) increase in interest expense for debt used to fund the acquisition, (2) removal of acquisition related costs from 2022 (and included in 2021) and (3) changes related to purchase accounting primarily related to amortization of intangibles, fixed assets and joint ventures. The unaudited pro forma financial information presented below does not purport to represent the actual results of operations that Cummins and Meritor would have achieved had the companies been combined during the periods presented and was not intended to project the future results of operations that the combined company could achieve after the acquisition. The unaudited pro forma financial information does not reflect any potential cost savings, operating efficiencies, long-term debt pay down estimates, financial synergies or other strategic benefits as a result of the acquisition or any restructuring costs to achieve those benefits. (Unaudited) Years ended December 31, In millions 2022 2021 Net sales $ 30,841 $ 27,949 Net income 2,196 2,058 The Meritor acquisition increased net assets in the Components segment by $3.8 billion and Accelera segment by $0.3 billion in 2022. Jacobs Vehicle Systems On April 8, 2022, we completed the acquisition of Jacobs Vehicle Systems business (Jacobs) from Altra Industrial Motion Corp. The purchase price was $345 million in cash and does not contain any contingent consideration. Jacobs is a supplier of engine braking, cylinder deactivation and start and stop thermal management technologies (valvetrain technologies). The acquisition furthers our investment in key technologies and capabilities to drive growth, while securing our supply base. The final purchase price allocation was as follows: In millions Cash and cash equivalents $ 18 Accounts and notes receivable, net 24 Inventories 15 Property, plant and equipment 70 Intangible assets 164 Goodwill 108 Accounts payable (principally trade) (21) Net deferred taxes (27) Other, net (6) Total purchase price $ 345 The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 108 9 Multi-period excess earnings Discount rate, customer renewal rates Technology 31 7 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 25 14 Relief-from-royalty Royalty rate, discount Annual amortization of the intangible assets for the next five years is expected to approximate $18 million per year. Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible and intangible assets and liabilities. Approximately $9 million of the goodwill is deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are Jacobs' expected future customers, new versions of technologies, an acquired workforce and other economic benefits that are anticipated to arise from future product sales and operational synergies from combining the business with Cummins. Included in our results for the year ended December 31, 2022, were revenues of $118 million and loss of $1 million related to this business. The results of this business were reported in our Components segment. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements. Westport JV On February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. We will continue to operate the business as the sole owner. The purchase price was $42 million and was allocated primarily to cash, warranty and deferred revenue related to extended coverage contracts. The results of the business were reported in our Engine segment. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements.
Atmus Filtration Technologies Inc.
Business Acquisition [Line Items]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 23. 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 $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, was used for the retirement of our historical debt and payment of dividends. 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 December 31, 2023, $166 million is retained by Atmus for its working capital purposes. See NOTE 13 , " DEBT ," 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 year ended December 31, 2023, were $17 million. At December 31, 2023, the noncontrolling interest associated with Atmus is reflected in noncontrolling interests in our 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	12 Months Ended
	Dec. 31, 2023
Business Combinations [Abstract]
Mergers, Acquisitions and Dispositions Disclosures	NOTE 24. ACQUISITIONS Acquisitions for the years ended December 31, 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 Type of Acquisition (1) Goodwill Acquired Intangibles Recognized (2) 2023 Cummins France SA 10/31/23 100 % $ 25 $ 5 $ 30 COMB $ 4 $ — Faurecia 10/02/23 100 % 210 — 210 (3) COMB 90 — Hydrogenics Corporation (Hydrogenics) 06/29/23 19 % 287 48 335 (4) EQUITY — — Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) 04/03/23 100 % 143 — 143 (5) COMB 18 — 2022 Siemens Commercial Vehicles Propulsion (Siemens CVP) 11/30/22 100 % $ 187 $ — $ 187 COMB $ 70 $ 106 Meritor, Inc. (Meritor) 08/03/22 100 % 2,613 248 2,861 COMB 926 1,610 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) 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). (2) Intangible assets acquired in the business combination were mostly customer, technology and trade name related. (3) Total purchase consideration included $30 million for the settlement of accounts payable that were treated as an operating cash outflow. (4) 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. (5) Total purchase consideration included $32 million for the settlement of accounts payable that were treated as an operating cash outflow. Faurecia On October 2, 2023, we purchased, from the Forvia Group, all of the equity ownership of Faurecia's U.S. and Europe commercial vehicle exhaust business for $210 million, subject to certain working capital and other customary adjustments, and does not contain any contingent consideration. The acquisition provides canning and assembly operations for full exhaust systems primarily for on-highway applications, ensures the long-term supply of aftertreatment components, minimizes opportunities for supply disruptions, adds significant technical and manufacturing resources and enhances our existing portfolio. 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 contingent liabilities and deferred taxes. The preliminary purchase price allocation was as follows: In millions Cash and cash equivalents $ 8 Accounts and notes receivable, net (1) 52 Inventories 32 Property, plant and equipment 93 Goodwill 90 Other current and long-term assets 46 Accounts payable (principally trade) (62) Other current and long-term liabilities (49) Total purchase price $ 210 (1) Includes $30 million of Cummins receivables that were eliminated against payables at other Cummins entities. Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible assets and liabilities. All of the goodwill is expected to be deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are an acquired workforce and other economic benefits that are anticipated to arise from operational synergies from combining the business with Cummins. The results of this business were reported in our Components segment within the emission solutions business. Since we are the primary customer of this business, the acquisition is not expected to result in material incremental sales to our business. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements. 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 Consolidated Financial Statements. The debt amount, net of unamortized debt discount, was $148 million and reflected in current maturities of long-term debt and long-term debt at December 31, 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 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 $143 million (including $32 million for the settlement of accounts payable), 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 $18 million of goodwill, none of which is deductible for tax purposes. In the third quarter we finalized the purchase accounting and made certain other adjustments, which resulted in a $7 million decrease in goodwill. The results of the business were reported in our Engine segment. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements . Siemens CVP On November 30, 2022, we acquired Siemens' Commercial Vehicles Propulsion business for approximately $187 million, subject to working capital and other customary adjustments, and was allocated primarily to intangible assets, goodwill and inventories. This business develops, designs and produces electric drive systems including electric motors, inverters, software and related services for the commercial vehicle markets. This acquisition is included in our Accelera segment. This acquisition added key capabilities in direct drive and transmission-based remote mount electric motors, inverters, software and related services that are critical elements in the next generation of electric powertrain, which will accelerate our ability to offer global customers a wider array of electrified product solutions across commercial vehicle applications. Final purchase accounting adjustments did not significantly impact goodwill. Meritor, Inc. On August 3, 2022, we completed the acquisition of Meritor whereby we paid $36.50 per share for each outstanding share of Meritor, a global leader of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. The total purchase price was $2.9 billion, including debt that was retired on the closing date of $248 million. In addition, we assumed $1.0 billion of additional debt, of which $0.9 billion was retired prior to the end of the third quarter of 2022. The acquisition was funded with a combination of $2.0 billion in new debt (see NOTE 13, "DEBT" for additional details), cash on hand and additional commercial paper borrowings. The integration of Meritor’s people, technology and capabilities position us as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications at a time when demand for decarbonized solutions is continuing to accelerate. The majority of this business was be included within our Components segment with the exception of the electric powertrain business, which was included in our Accelera segment. The final purchase price allocation has been updated as follows: In millions Cash and cash equivalents $ 98 Accounts and notes receivable, net 640 Inventories 750 Property, plant and equipment 841 Intangible assets 1,610 Investments and advances related to equity method investees 382 Goodwill 926 Pension assets 147 Other current and long-term assets 322 Accounts payable (principally trade) (711) Net deferred taxes (277) Other liabilities (pensions and other postretirement benefits) (129) Long-term debt (962) Other current and long-term liabilities (665) Noncontrolling interests (111) Total purchase price $ 2,861 During 2023, we finalized our accounting for the Meritor, Inc. acquisition. The primary components of the change were to increase contingent liabilities by $70 million offset by finalization of deferred taxes and tax reserves, with a net increase to goodwill of $32 million. There was no impact to the Consolidated Statements of Net Income for any of the changes. The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 960 12 Multi-period excess earnings Revenue, EBITDA (1) , discount rate, customer renewal rates, customer attrition rates Technology 345 8 Relief-from-royalty Royalty rate, discount rate, obsolescence factor Trade name 305 21 Relief-from-royalty Royalty rate, discount rate (1) Earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. Annual amortization of the intangible assets for the next five years is expected to approximate $142 million per year. Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible and intangible assets and liabilities. Goodwill was allocated to the Components segment ($759 million) and the Accelera segment ($167 million) based on the relative value of those businesses compared to the assets and liabilities assigned to them. We do not expect any of the goodwill to be deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are Meritor’s expected future customers, new versions of technologies, an acquired workforce, other economic benefits that are anticipated to arise from future product sales and operational synergies from combining the business with Cummins. Included in our results for the year ended December 31, 2022, were revenues of $1.9 billion and net loss of $43 million related to this business. In addition, in 2022 we incurred acquisition related costs of $30 million included in selling, general and administrative expenses in our Consolidated Statements of Net Income . The following table presents the supplemental consolidated results of the Company for the years ended December 2022 and 2021, on an unaudited pro-forma basis as if the acquisition had been consummated on January 1, 2021. The primary adjustments reflected in the pro-forma results related to (1) increase in interest expense for debt used to fund the acquisition, (2) removal of acquisition related costs from 2022 (and included in 2021) and (3) changes related to purchase accounting primarily related to amortization of intangibles, fixed assets and joint ventures. The unaudited pro forma financial information presented below does not purport to represent the actual results of operations that Cummins and Meritor would have achieved had the companies been combined during the periods presented and was not intended to project the future results of operations that the combined company could achieve after the acquisition. The unaudited pro forma financial information does not reflect any potential cost savings, operating efficiencies, long-term debt pay down estimates, financial synergies or other strategic benefits as a result of the acquisition or any restructuring costs to achieve those benefits. (Unaudited) Years ended December 31, In millions 2022 2021 Net sales $ 30,841 $ 27,949 Net income 2,196 2,058 The Meritor acquisition increased net assets in the Components segment by $3.8 billion and Accelera segment by $0.3 billion in 2022. Jacobs Vehicle Systems On April 8, 2022, we completed the acquisition of Jacobs Vehicle Systems business (Jacobs) from Altra Industrial Motion Corp. The purchase price was $345 million in cash and does not contain any contingent consideration. Jacobs is a supplier of engine braking, cylinder deactivation and start and stop thermal management technologies (valvetrain technologies). The acquisition furthers our investment in key technologies and capabilities to drive growth, while securing our supply base. The final purchase price allocation was as follows: In millions Cash and cash equivalents $ 18 Accounts and notes receivable, net 24 Inventories 15 Property, plant and equipment 70 Intangible assets 164 Goodwill 108 Accounts payable (principally trade) (21) Net deferred taxes (27) Other, net (6) Total purchase price $ 345 The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 108 9 Multi-period excess earnings Discount rate, customer renewal rates Technology 31 7 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 25 14 Relief-from-royalty Royalty rate, discount Annual amortization of the intangible assets for the next five years is expected to approximate $18 million per year. Goodwill was determined based on the residual difference between the fair value of consideration transferred and the value assigned to tangible and intangible assets and liabilities. Approximately $9 million of the goodwill is deductible for tax purposes. Among the factors contributing to a purchase price resulting in the recognition of goodwill are Jacobs' expected future customers, new versions of technologies, an acquired workforce and other economic benefits that are anticipated to arise from future product sales and operational synergies from combining the business with Cummins. Included in our results for the year ended December 31, 2022, were revenues of $118 million and loss of $1 million related to this business. The results of this business were reported in our Components segment. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements. Westport JV On February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. We will continue to operate the business as the sole owner. The purchase price was $42 million and was allocated primarily to cash, warranty and deferred revenue related to extended coverage contracts. The results of the business were reported in our Engine segment. Pro forma financial information for the acquisition was not presented as the effects were not material to our Consolidated Financial Statements.

OPERATING SEGMENTS

OPERATING SEGMENTS	12 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 25. 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 axles, drivelines, brakes and suspension systems for commercial diesel and natural gas applications, aftertreatment systems, turbochargers, fuel systems, valvetrain technologies, filtration products, automated transmissions and electronics. 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 technologies 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 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 at December 31, is shown in the table below: In millions Components Engine Distribution Power Systems Accelera Total Segments 2023 External sales $ 11,531 $ 8,874 $ 10,199 $ 3,125 $ 336 $ 34,065 Intersegment sales 1,878 2,810 50 2,548 18 7,304 Total sales 13,409 11,684 10,249 5,673 354 41,369 Research, development and engineering expenses 387 614 57 237 203 1,498 Equity, royalty and interest income (loss) from investees 97 251 97 53 (15) 483 Interest income 31 19 34 9 2 95 Segment EBITDA 1,840 (1) 1,630 1,209 836 (443) 5,072 Depreciation and amortization (2) 491 225 115 122 63 1,016 Net assets 6,965 930 2,348 1,938 1,159 13,340 Investments and advances to equity investees 582 660 396 132 25 1,795 Capital expenditures 373 538 103 115 84 1,213 2022 External sales $ 7,847 $ 8,199 $ 8,901 $ 2,951 $ 176 $ 28,074 Intersegment sales 1,889 2,746 28 2,082 22 6,767 Total sales 9,736 10,945 8,929 5,033 198 34,841 Research, development and engineering expenses 309 506 52 240 171 1,278 Equity, royalty and interest income (loss) from investees 71 160 (3) 77 43 (2) 349 Interest income 12 14 16 7 — 49 Russian suspension costs (4) 5 33 (5) 54 19 — 111 Segment EBITDA 1,346 (6) 1,535 888 596 (334) 4,031 Depreciation and amortization (2) 304 205 114 120 38 781 Net assets 7,306 1,451 2,698 2,382 1,158 14,995 Investments and advances to equity investees 617 617 352 138 33 1,757 Capital expenditures 264 368 114 96 74 916 2021 External sales $ 5,932 $ 7,589 $ 7,742 $ 2,650 $ 108 $ 24,021 Intersegment sales 1,733 2,365 30 1,765 8 5,901 Total sales 7,665 9,954 7,772 4,415 116 29,922 Research, development and engineering expenses 307 399 48 234 102 1,090 Equity, royalty and interest income from investees 50 335 63 56 2 506 Interest income 5 8 7 5 — 25 Segment EBITDA 1,180 1,406 731 496 (218) 3,595 Depreciation and amortization (2) 183 205 116 131 24 659 Net assets 2,938 1,554 2,294 2,251 602 9,639 Investments and advances to equity investees 254 771 329 164 20 1,538 Capital expenditures 184 341 92 80 37 734 (1) Includes $78 million of costs associated with the IPO and separation of Atmus for the year ended December 31, 2023. (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs were $8 million, $3 million and $3 million for the years ended 2023, 2022 and 2021, respectively. A portion of depreciation expense is included in research, development and engineering expense. (3) 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 22, "RUSSIAN OPERATIONS," for additional information. (4) See NOTE 22, "RUSSIAN OPERATIONS," for additional information. (5) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above. (6) Includes $83 million of costs related to the acquisition and integration of Meritor and $28 million of costs associated with the separation of Atmus. A reconciliation of our segment information to the corresponding amounts in the Consolidated Statements of Net Income is shown in the table below: Years ended December 31, In millions 2023 2022 2021 TOTAL SEGMENT EBITDA $ 5,072 $ 4,031 $ 3,595 Intersegment eliminations and other (1) (2,055) (232) (74) Less: Interest expense 375 199 111 Depreciation and amortization 1,016 781 659 INCOME BEFORE INCOME TAXES $ 1,626 $ 2,819 $ 2,751 (1) Intersegment eliminations and other included $2.0 billion related to the Agreement in Principle, $22 million of costs associated with the IPO and separation of Atmus and $21 million of voluntary retirement and voluntary separation charges for the year ended December 31, 2023. The year ended December 31, 2022, included $53 million of costs associated with the planned separation of Atmus. See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information. A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below: December 31, In millions 2023 2022 Net assets for operating segments $ 13,340 $ 14,995 Cash, cash equivalents and marketable securities 2,741 2,573 Net liabilities deducted in arriving at net segment assets (1) 14,531 11,270 Pension and OPEB adjustments excluded from net segment assets 307 832 Deferred tax assets not allocated to segments 1,082 625 Deferred debt costs not allocated to segments 4 4 Total assets $ 32,005 $ 30,299 (1) Liabilities deducted in arriving at net segment assets include certain accounts payable, accrued expenses, long-term liabilities and other items. See NOTE 3, "REVENUE FROM CONTRACTS WITH CUSTOMERS," for segment net sales by geographic area. Long-lived assets include property, plant and equipment, net of depreciation, investments and advances to equity investees and other assets, excluding deferred tax assets, refundable taxes and deferred debt expenses. Long-lived segment assets by geographic area were as follows: December 31, In millions 2023 2022 United States $ 5,013 $ 4,714 China 1,030 1,052 India 681 665 Mexico 583 429 United Kingdom 489 431 Netherlands 437 334 Brazil 261 256 Canada 171 168 Other international countries 819 731 Total long-lived assets $ 9,484 $ 8,780 Our largest customer is PACCAR Inc. Worldwide sales to this customer were approximately $5.5 billion, $4.5 billion and $3.6 billion for the years ended December 31, 2023, 2022 and 2021, representing 16 percent, 16 percent and 15 percent, respectively, of our consolidated net sales. No other customer accounted for more than 10 percent of consolidated net sales.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation Our Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). All intercompany balances and transactions are eliminated in consolidation. We include the accounts of all wholly-owned and majority-owned domestic and foreign subsidiaries where our ownership is more than 50 percent of outstanding equity interests except for majority-owned subsidiaries that are considered variable interest entities (VIEs) where we are not deemed to have a controlling financial interest. In addition, we also consolidate, regardless of our ownership percentage, VIEs or joint ventures for which we are deemed to have a controlling financial interest. We have variable interests in several businesses accounted for under the equity method of accounting. For consolidated entities where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported in our Consolidated Balance Sheets . The noncontrolling ownership interest in our income, net of tax, is classified as net income attributable to noncontrolling interests in our Consolidated Statements of Net Income .
Reclassifications and Revisions	Reclassifications Certain amounts for 2022 and 2021 were reclassified to conform to the current year presentation.
Investments in Equity Investees	Investments in Equity Investees We use the equity method to account for our investments in joint ventures, affiliated companies and alliances in which we have the ability to exercise significant influence, generally represented by equity ownership or partnership equity of at least 20 percent but not more than 50 percent. Generally, under the equity method, original investments in these entities are recorded at cost and subsequently adjusted by our share of equity in income or losses after the date of acquisition. Investment amounts in excess of our share of an investee's net assets are amortized over the life of the related asset creating the excess, except goodwill which is not amortized. Equity in income or losses of each investee is recorded according to our level of ownership; if losses accumulate, we record our share of losses until our investment has been fully depleted. If our investment has been fully depleted, we recognize additional losses only when we are the primary funding source. We eliminate (to the extent of our ownership percentage) in our Consolidated Financial Statements the profit in inventory held by our equity method investees that has not yet been sold to a third-party. Dividends received from equity method investees reduce the amount of our investment when received and do not impact our earnings. Our investments are classified as Investments and advances related to equity method investees in our Consolidated Balance Sheets. Our share of the results from joint ventures, affiliated companies and alliances is reported in our Consolidated Statements of Net Income as equity, royalty and interest income from investees, and is reported net of all applicable income taxes. Our share of the results from our foreign equity investees are presented net of applicable foreign income taxes in our Consolidated Statements of Net Income . Our remaining U.S. equity investees are partnerships (non-taxable), thus there is no difference between gross or net of tax presentation as the investees are not taxed. See NOTE 4, "INVESTMENTS IN EQUITY INVESTEES," for additional information.
Use of Estimates in the Preparation of the Financial Statements	Use of Estimates in the Preparation of the Financial Statements Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Consolidated Financial Statements . Significant estimates and assumptions in these Consolidated Financial Statements require the exercise of judgement and are used for, but not limited to, estimates of future cash flows and other assumptions associated with the valuation of intangible assets and goodwill and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, determination of discount rate and other assumptions for pensions and other postretirement benefit obligations (OPEB) and related costs, income taxes, deferred tax valuation allowances, contingencies and allowances for doubtful accounts. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.
Revenue from Contract with Customer	Revenue From Contracts with Customers Revenue Recognition Sales of Products We sell to customers either through long-term arrangements or standalone purchase orders. Our long-term arrangements generally do not include committed volumes until underlying purchase orders are issued. Our performance obligations vary by contract, but may include diesel, 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, valvetrain technologies, suspension systems, electric power generation systems and construction related projects, batteries, electrified power systems, electric powertrains, hydrogen production technologies, fuel cell products, parts, maintenance services and extended warranty coverage. Typically, we recognize revenue on the products we sell at a point in time, generally in accordance with shipping terms, which reflects the transfer of control to the customer. Since control of construction projects transfer to the customer as the work is performed, revenue on these projects is recognized based on the percentage of inputs incurred to date compared to the total expected cost of inputs, which is reflective of the value transferred to the customer. Revenue is recognized under long-term maintenance and other service agreements over the term of the agreement as underlying services are performed based on the percentage of the cost of services provided to date compared to the total expected cost of services to be provided under the contract. Sales of extended coverage are recognized based on the pattern of expected costs over the extended coverage period or, if such a pattern is unknown, on a straight-line basis over the coverage period as the customer is considered to benefit from our stand ready obligation over the coverage period. In all cases, we believe cost incurred is the most representative depiction of the extent of service performed to date on a particular contract. Our arrangements may include the act of shipping products to our customers after the performance obligation related to that product has been satisfied. We have elected to account for shipping and handling as activities to fulfill the promise to transfer goods and have not allocated revenue to the shipping activity. All related shipping and handling costs are accrued at the time the related performance obligation is satisfied. Our sales arrangements may include the collection of sales and other similar taxes that are then remitted to the related taxing authority. We have elected to present the amounts collected for these taxes net of the related tax expense rather than presenting them as additional revenue. We grant credit limits and terms to customers based upon traditional practices and competitive conditions. Typical terms vary by market, but payments are generally due in 90 days or less from invoicing for most of our product and service sales, while payments on construction, electrolyzer and certain power generation contracts may be due on an installment basis. For contracts where the time between cash collection and performance is less than one year, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. For contracts where this time period exceeds one year, generally the timing difference is the result of business concerns other than financing. We do have a limited amount of customer financing for which we charge or impute interest, but such amounts are immaterial to our Consolidated Statements of Net Income. Sales Incentives We provide various sales incentives to both our distribution network and OEM customers. These programs are designed to promote the sale of our products in the channel or encourage the usage of our products by OEM customers. When there is uncertainty surrounding these sales incentives, we may limit the amount of revenue we recognize under a contract until the uncertainty has been resolved. Sales incentives primarily fall into three categories: • Volume rebates; • Market share rebates; and • Aftermarket rebates. For volume rebates, we provide certain customers with rebate opportunities for attaining specified volumes during a particular quarter or year. We consider the expected amount of these rebates at the time of the original sale as we determine the overall transaction price. We update our assessment of the amount of rebates that will be earned quarterly based on our best estimate of the volume levels the customer will reach during the measurement period. For market share rebates, we provide certain customers with rebate opportunities based on the percentage of their production that utilizes our product. These rebates are typically measured either quarterly or annually and we assess them at least quarterly to determine our current estimates of amounts expected to be earned. These estimates are considered in the determination of transaction price at the time of the original sale based on the current market shares, with adjustments made as the level changes. For aftermarket rebates, we provide incentives to promote sales to certain dealers and end-markets. These rebates are typically paid on a quarterly, or more frequent basis. At the time of the sales, we consider the expected amount of these rebates when determining the overall transaction price. Estimates are adjusted at the end of each quarter based on the amounts yet to be paid. These estimates are based on historical experience with the particular program. Sales Returns The initial determination of the transaction price may also be impacted by expected product returns. Rights of return do not exist for the majority of our sales other than for quality issues. We do offer certain return rights in our aftermarket business, where some aftermarket customers are permitted to return small amounts of parts and filters each year, and in our power generation business, which sells portable generators to retail customers. An estimate of future returns is accounted for at the time of sale as a reduction in the overall contract transaction price based on historical return rates. Multiple Performance Obligations Our sales arrangements may include multiple performance obligations. We identify each of the material performance obligations in these arrangements and allocate the total transaction price to each performance obligation based on its relative selling price. In most cases, the individual performance obligations are also sold separately and we use that price as the basis for allocating revenue to the included performance obligations. When an arrangement includes multiple performance obligations and invoicing to the customer does not match the allocated portion of the transaction price, unbilled revenue or deferred revenue is recorded reflecting that difference. Unbilled and deferred revenue are discussed in more detail below. Long-term Contracts Our long-term maintenance agreements often include a variable component of the transaction price. We are generally compensated under such arrangements on a cost per hour of usage basis. We typically can estimate the expected usage over the life of the contract, but reassess the transaction price each quarter and adjust our recognized revenue accordingly. Certain maintenance agreements apply to generators used to provide standby power, which have limited expectations of usage. These agreements may include monthly minimum payments, providing some certainty to the total transaction price. For these particular contracts that relate to standby power, we limit revenue recognized to date to an amount representing the total minimums earned to date under the contract plus any cumulative billings earned in excess of the minimums. We reassess the estimates of progress and transaction price on a quarterly basis. For prime power arrangements, revenue is not subject to such a constraint and is generally equal to the current estimate on a percentage of completion basis times the total expected revenue under the contract. Deferred Revenue The timing of our billing does not always match the timing of our revenue recognition. We record deferred revenue when we are entitled to bill a customer in advance of when we are permitted to recognize revenue. Deferred revenue may arise in construction and other power generation systems and electrolyzer contracts, where billings may occur in advance of performance or in accordance with specific milestones. Deferred revenue may also occur in long-term maintenance contracts, where billings are often based on usage of the underlying equipment, which generally follows a predictable pattern that often will result in the accumulation of collections in advance of our performance of the related maintenance services. Finally, deferred revenue exists in our extended coverage contracts, where the cash is collected prior to the commencement of the coverage period. Deferred revenue is included in our Consolidated Balance Sheets as a component of current liabilities for the amount expected to be recognized in revenue in a period of less than one year and long-term liabilities for the amount expected to be recognized as revenue in a period beyond one year. Deferred revenue is recognized as revenue when control of the underlying product, project or service passes to the customer under the related contract. Unbilled Revenue We recognize unbilled revenue when the revenue has been earned, but not yet billed. Unbilled revenue is included in our Consolidated Balance Sheets as a component of current assets for those expected to be collected in a period of less than one year and long-term assets for those expected to be collected in a period beyond one year. Unbilled revenue relates to our right to consideration for our completed performance under a contract. Unbilled revenue generally arises from contractual provisions that delay a portion of the billings on genset deliveries until commissioning occurs. Unbilled revenue may also occur when billings trail the provision of service in construction and long-term maintenance contracts. Our unbilled revenue is assessed for collection risks at the time the amounts are initially recorded. This estimate of expected losses reflects those losses expected to occur over the contractual life of the unbilled amount through the time of collection. We did not record any impairment losses on our unbilled revenues during the years ended December 31, 2023, 2022 and 2021. Contract Costs We are required to record an asset for the incremental costs of obtaining a contract with a customer and other costs to fulfill a contract not otherwise required to be immediately expensed when we expect to recover those costs. The only material incremental cost we incur is commission expense, which is generally incurred in the same period as the underlying revenue. Costs to fulfill a contract are generally limited to customer-specific engineering expenses that do not meet the definition of research and development expenses. As a practical expedient, we have elected to recognize these costs of obtaining a contract as an expense when the related contract period is less than one year. When the period exceeds one year, this asset is amortized over the life of the contract. We did not have any material capitalized balances at December 31, 2023 or 2022.
Extended Product Warranty, Policy	Extended Warranty We sell extended warranty coverage on most of our engines and on certain components. We consider a warranty to be extended coverage in any of the following situations: • When a warranty is sold separately or is optional (extended coverage contracts, for example) or • When a warranty provides additional services.
Foreign Currency Transactions and Translation	Foreign Currency Transactions and Translation We translate assets and liabilities of foreign entities to U.S. dollars, where the local currency is the functional currency, at month-end exchange rates. We translate income and expenses to U.S. dollars using weighted-average exchange rates. We record adjustments resulting from translation in a separate component of accumulated other comprehensive loss (AOCL) and include the adjustments in net income only upon sale, loss of controlling financial interest or liquidation of the underlying foreign investment. Foreign currency transaction gains and losses are included in current net income. For foreign entities where the U.S. dollar is the functional currency, including those operating in highly inflationary economies when applicable, we remeasure non-monetary balances and the related income statement amounts using historical exchange rates. We include the resulting gains and losses in income, including the effect of derivatives in our Consolidated Statements of Net Income , which combined with transaction gains and losses amounted to a net loss of $30 million and $8 million and a net gain of $2 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Fair Value Measurement	Fair Value Measurements A three-level valuation hierarchy, based upon the observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets; • Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and • Level 3 - Instruments whose significant inputs are unobservable .
Derivative Instruments	Derivative Instruments We make use of derivative instruments in foreign exchange, commodity price and interest rate hedging programs. Derivatives currently in use are foreign currency forward contracts, commodity swaps and interest rate swaps and locks. These contracts are used strictly for hedging and not for speculative purposes. Due to our international business presence, we are exposed to foreign currency exchange risk. We transact in foreign currencies and have assets, liabilities and investments in subsidiaries denominated in foreign currencies. Consequently, our income experiences some volatility related to movements in foreign currency exchange rates. In order to benefit from global diversification and after considering naturally offsetting currency positions, we enter into foreign currency forward contracts to minimize our existing exposures (recognized assets and liabilities) and hedge forecasted transactions. Foreign currency forward contracts are designated and qualify as foreign currency cash flow hedges. The unrealized gain or loss on the forward contract is deferred and reported as a component of AOCL. When the hedged forecasted transaction (sale or purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income. At December 31, 2023 and 2022, realized and unrealized gains and losses related to these hedges were not material to our financial statements. To minimize the income volatility resulting from the remeasurement of net monetary assets and payables denominated in a currency other than the functional currency, we enter into foreign currency forward contracts, which are considered economic hedges. The objective is to offset the gain or loss from remeasurement with the gain or loss from the fair market valuation of the forward contract. These derivative instruments are not designated as hedges. Gains or losses are recorded directly to the Consolidated Statements of Net Income. We are further exposed to foreign currency exchange risk as many of our subsidiaries are subject to fluctuations as the functional currencies of the underlying entities are not our U.S. dollar reporting currency. In order to minimize movements in certain investments, in 2022 we began entering into foreign exchange forwards designated as net investment hedges. These forwards are utilized to hedge portions of our net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. The change in fair value related to the spot-to-forward rate difference is recorded as other income (expense) with all other changes in fair value deferred and reported as components of AOCL. The unrealized gain or loss is classified into income in the same period when the foreign subsidiary is sold or substantially liquidated. We are exposed to fluctuations in commodity prices due to contractual agreements with component suppliers. In order to protect ourselves against future price volatility and, consequently, fluctuations in gross margins, we periodically enter into commodity swap and forward contracts with designated banks and other counterparties to fix the cost of certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations. These commodity swaps are designated and qualify as cash flow hedges. At December 31, 2023, realized and unrealized gains and losses related to these hedges were not material to our financial statements. We also enter into physical forward contracts, which qualify for the normal purchases scope exception and are treated as purchase commitments. Additional information on the physical forwards is included in NOTE 15, "COMMITMENTS AND CONTINGENCIES." We are exposed to market risk from fluctuations in interest rates. We manage our exposure to interest rate fluctuations through the use of interest rate swaps and locks. The objective is to more effectively balance our borrowing costs and interest rate risk for current and future exposure. The gain or loss on the swaps as well as the offsetting gain or loss on the hedged item are recognized in current income as interest expense. The gain or loss on the locks is deferred and reported as a component of AOCL. For more detail on our interest rate swaps, see NOTE 21, "DERIVATIVES." We record all derivatives at fair value in our financial statements. Cash flows related to derivatives that are designated as hedges are classified in the same manner as the item being hedged, while cash flows related to derivatives that are not designated as hedges are included in cash flows from investing activities in our Consolidated Statements of Cash Flows . Substantially all of our derivative contracts are subject to master netting arrangements, which provide us with the option to settle certain contracts on a net basis when they settle on the same day with the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. When material, we adjust the value of our derivative contracts for counter-party or our credit risk. None of our derivative instruments are subject to collateral requirements.
Income Tax Accounting	Income Tax Accounting We determine our income tax expense using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits of net operating loss and credit carryforwards are also recognized as deferred tax assets. We evaluate the recoverability of our deferred tax assets each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. A valuation allowance is recorded to reduce the tax assets to the net value management believes is more likely than not to be realized. In the event our operating performance deteriorates, future assessments could conclude that a larger valuation allowance will be needed to further reduce the deferred tax assets. In addition, we operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. We accrue for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions. We believe we made adequate provisions for income taxes for all years that are subject to audit based upon the latest information available. A more complete description of our income taxes and the future benefits of our net operating loss and credit carryforwards is disclosed in NOTE 5, "INCOME TAXES."
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents are defined as short-term, highly liquid investments with an original maturity of 90 days or less at the time of purchase. The carrying amounts reflected in our Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to the short-term maturity of these investments. Cash payments for income taxes and interest were as follows: Years ended December 31, In millions 2023 2022 2021 Cash payments for income taxes, net of refunds $ 1,181 $ 903 $ 521 Cash payments for interest, net of capitalized interest 374 184 111
Marketable Securities	Marketable Securities Debt securities are classified as "held-to-maturity," "available-for-sale" or "trading." We determine the appropriate classification of debt securities at the time of purchase and re-evaluate such classifications at each balance sheet date. At December 31, 2023 and 2022, all of our debt securities were classified as available-for-sale. Debt and equity securities are carried at fair value with the unrealized gain or loss, net of tax, reported in other comprehensive income and other income, respectively. For debt securities, unrealized losses considered to be "other-than-temporary" are recognized currently in other income. The cost of securities sold is based on the specific identification method. The fair value of most investment securities is determined by currently available market prices. Where quoted market prices are not available, we use the market price of similar types of securities that are traded in the market to estimate fair value. See NOTE 6, "MARKETABLE SECURITIES," for a detailed description of our investments in marketable securities.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts
Inventories	Inventories Our inventories are stated at the lower of cost or net realizable value. For the years ended December 31, 2023 and 2022, approximately 12 percent and 14 percent, respectively, of our consolidated inventories (primarily heavy-duty and high-horsepower engines and parts) were valued using the last-in, first-out (LIFO) cost method. The cost of other inventories is generally valued using the first-in, first-out (FIFO) cost method. Our inventories at interim and year-end reporting dates include estimates for adjustments related to annual physical inventory results and for inventory cost changes under the LIFO cost method. Due to significant movements of partially-manufactured components and parts between manufacturing plants, we do not internally measure, nor do our accounting systems provide, a meaningful segregation between raw materials and work-in-process. See NOTE 7, "INVENTORIES," for additional information.
Property, Plant and Equipment	Property, Plant and Equipment We record property, plant and equipment at cost, inclusive of assets under finance leases. We depreciate the cost of the majority of our property, plant and equipment using the straight-line method with depreciable lives ranging from 20 to 40 years for buildings and 3 to 15 years for machinery, equipment and fixtures. Finance lease asset amortization is recorded in depreciation expense. We expense normal maintenance and repair costs as incurred. Depreciation expense totaled $691 million, $557 million and $514 million for the years ended December 31, 2023, 2022 and 2021, respectively. See NOTE 8, "PROPERTY, PLANT AND EQUIPMENT" and NOTE 9, "LEASES," for additional information.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Lessee, Leases	Leases We determine if an arrangement contains a lease in whole or in part at the inception of the contract. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term while lease liabilities represent our obligation to make lease payments arising from the lease. All leases greater than 12 months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. As most of our leases do not provide the information required to determine the implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. This rate is determined considering factors such as the lease term, our credit standing and the economic environment of the location of the lease. We use the implicit rate when readily determinable. Our lease terms include all non-cancelable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that we will exercise that option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of an asset or a liability. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases is generally front-loaded as the finance lease ROU asset is depreciated on a straight-line basis, but interest expense on the liability is recognized utilizing the interest method that results in more expense during the early years of the lease. We have lease agreements with lease and non-lease components, primarily related to real estate, vehicle and information technology (IT) assets. For vehicle and real estate leases, we account for the lease and non-lease components as a single lease component. For IT leases, we allocate the payment between the lease and non-lease components based on the relative value of each component. See NOTE 9, "LEASES," for additional information.
Goodwill	Goodwill We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform an annual quantitative goodwill impairment test. We have elected this option on certain reporting units. The quantitative impairment test is only required if an entity determines through this qualitative analysis that it is more likely than not that the fair value of the reporting unit is less than its carrying value. In addition, the carrying value of goodwill must be tested for impairment on an interim basis in certain circumstances where impairment may be indicated. We perform our annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. When we are required or opt to perform the quantitative impairment test, the fair value of each reporting unit is estimated with either the market approach or the income approach. Our income approach method uses a discounted cash flow model in which cash flows anticipated over several periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate rate of return. Our reporting units are generally defined as one level below an operating segment. However, there are four situations where we have aggregated two or more reporting units which share similar economic characteristics and thus are aggregated into a single reporting unit for testing purposes. These four situations are described further below: • Within our Components segment, our emission solutions and Atmus businesses were aggregated into a single reporting unit, • Within our Accelera segment, our fuel cell and electrolyzer businesses were aggregated into a single reporting unit and our epowertrain and traction systems businesses were aggregated into a single reporting unit and • Our Distribution segment is considered a single reporting unit as it is managed geographically and all regions share similar economic characteristics and provide similar products and services. The discounted cash flow model requires us to make projections of revenue, gross margin, operating expenses, working capital investment and fixed asset additions for the reporting units over a multi-year period. Additionally, management must estimate a weighted-average cost of capital, which reflects a market rate, for each reporting unit for use as a discount rate. The discounted cash flows are compared to the carrying value of the reporting unit and, if less than the carrying value, the difference is recorded as a goodwill impairment loss. In addition, we also perform sensitivity analyses to determine how much our forecasts can fluctuate before the fair value of a reporting unit would be lower than its carrying amount. Future changes in the judgments, assumptions and estimates that are used in our goodwill impairment testing, including discount rates or future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges that could materially affect our financial statements in any given year. We perform the goodwill impairment assessment as of the end of our fiscal third quarter. At December 31, 2023, our recorded goodwill was $2.5 billion, of which approximately 31 percent resided in the axles and brakes reporting unit, 22 percent in the automated transmissions reporting unit and 19 percent in the aggregated emission solutions and filtration reporting unit. While none of the reporting units recorded a goodwill impairment in 2023, the estimated fair value of two of these reporting units did not significantly exceed the carrying value in our annual impairment testing. Our automated transmissions reporting unit had an estimated fair value that exceeded its carrying value by approximately 7 percent and our axles and brakes reporting unit had an estimated fair value that exceeded its carrying value by approximately 12 percent. Changes in our projections or estimates, a deterioration of our operating results and the related cash flow effect or a significant increase in the discount rate could decrease the estimated fair value of our reporting units and result in a future impairment of goodwill. See NOTE 10, "GOODWILL AND OTHER INTANGIBLE ASSETS," for additional information.
Other Intangible Assets	Other Intangible Assets We capitalize other intangible assets, such as trademarks, patents and customer relationships, that were acquired either individually or with a group of other assets. These intangible assets are amortized on a straight-line basis over their estimated useful lives generally ranging from 3 to 25 years. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. See NOTE 10, "GOODWILL AND OTHER INTANGIBLE ASSETS," for additional information.
Software	Software
Warranty	Warranty We estimate and record a liability for base warranty programs at the time our products are sold. Our estimates are based on historical experience and reflect management's best estimates of expected costs at the time products are sold and subsequent adjustment to those expected costs when actual costs differ. Factors considered in developing these estimates included component failure rates, repair costs and the point of failure within the product life cycle. As a result of the uncertainty surrounding the nature and frequency of product campaigns, the liability for such campaigns is recorded when we commit to a recall action or when a recall becomes probable and estimable, which generally occurs when it is announced. The liability for these campaigns is reflected in the provision for product campaigns. We review and assess the liability for these programs on a quarterly basis. We also assess our ability to recover certain costs from our suppliers and record a receivable when we believe a recovery is probable. In addition to costs incurred on warranty and product campaigns, from time to time we also incur costs related to customer satisfaction programs for items not covered by warranty. We accrue for these costs when agreement is reached with a specific customer. These costs are not included in the provision for warranties, but are included in cost of sales. In addition, we sell extended warranty coverage on most of our engines. See Extended Warranty policy discussion above and NOTE 14, "PRODUCT WARRANTY LIABILITY," for additional information.
Contingent Liabilities	Contingent Liabilities We record an accrual for contingent liabilities when the amounts are probable and estimable. As the cash flow associated with most of our contingent liabilities can not be reasonably predicted, we record our estimated obligations on an undiscounted basis. In addition, our accrual does not include amounts for estimated legal defense costs as those are expensed in the period in which they are incurred.
Research and Development	Research and Development Our research and development programs are focused on product improvements, product extensions, innovations and cost reductions for our customers. Research and development expenditures include salaries, contractor fees, building costs, utilities, testing, technical information technology expenses, administrative expenses and allocation of corporate costs and are expensed, net of contract reimbursements, when incurred. From time to time, we enter into agreements with customers and government agencies to fund a portion of the research and development costs of a particular project. When not associated with a sales contract, we generally account for these reimbursements as an offset to the related research and development expenditure. Research and development expenses, net of contract reimbursements, were $1.4 billion, $1.2 billion and $1.1 billion for the years ended December 31, 2023, 2022 and 2021, respectively. Contract reimbursements were $81 million, $110 million and $104 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Related Party Transactions	Related Party Transactions In accordance with the provisions of various joint venture agreements, we may purchase products and components from our joint ventures, sell products and components to our joint ventures and our joint ventures may sell products and components to unrelated parties. Joint venture transfer prices may differ from normal selling prices. Certain joint venture agreements transfer product at cost, some transfer product on a cost-plus basis, and others transfer product at market value. The following is a summary of sales to and purchases from nonconsolidated equity investees: Years ended December 31, In millions 2023 2022 2021 Sales to nonconsolidated equity investees $ 1,548 $ 1,197 $ 1,713 Purchases from nonconsolidated equity investees 2,628 1,838 1,796 The following is a summary of accounts receivable from and accounts payable to nonconsolidated equity investees: In millions December 31, December 31, Balance Sheet Location Accounts receivable from nonconsolidated equity investees $ 530 $ 376 Accounts and notes receivable, net Accounts payable to nonconsolidated equity investees 324 292 Accounts payable (principally trade)
Supplier Finance Program	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, which generally have 60 to 90 day payment terms. The maximum amount that we could have outstanding under the program was $512 million at December 31, 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 Consolidated Balance Sheets . Amounts due to the financial intermediaries reflected in accounts payable at December 31, 2023, and 2022, were $199 million and $331 million, respectively. The following table summarizes the changes in amounts due to financial intermediaries reflected in accounts payable for the year ended December 31, 2023: In millions Balance at December 31, 2022 $ 331 Additional invoices presented for payment 1,141 Payments to financial intermediaries (1,274) Foreign currency translation adjustments and other 1 Balance at December 31, 2023 $ 199
Government Assistance	Government Assistance From time to time, we receive assistance from government agencies primarily related to two areas (1) expense reimbursement and funding grants in the form of cash in conjunction with research and development projects and (2) incentives primarily related to investments in new or existing facilities. The grants and related projects range in term from 1 to 6 years. Generally, the grant awards for research are payable to us when we achieve specific milestones or deliverables. Certain grant awards are subject to audit, whereby non-compliance may result in a refund to the government agency. Grants related to investments supporting facilities are typically in the form of reimbursement for capital assets or expenses such as training the employees at those facilities. We recognize grant awards related to research and development as an offset of the related research and development expenditure when the awards become payable upon us meeting a specific milestone or deliverable. We recognize grant awards for reimbursement of capital as a reduction in value of the related fixed asset. We recognize grants for reimbursement of training or other expenses as an offset to the related expense. For the years ended December 31, 2023, and 2022, government grants did not have a material impact on our financial statements as a whole, and we did not have any individually material grant awards.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Cash payments for income taxes and interest were as follows: Years ended December 31, In millions 2023 2022 2021 Cash payments for income taxes, net of refunds $ 1,181 $ 903 $ 521 Cash payments for interest, net of capitalized interest 374 184 111
Schedule of Related Party Transactions	The following is a summary of sales to and purchases from nonconsolidated equity investees: Years ended December 31, In millions 2023 2022 2021 Sales to nonconsolidated equity investees $ 1,548 $ 1,197 $ 1,713 Purchases from nonconsolidated equity investees 2,628 1,838 1,796 The following is a summary of accounts receivable from and accounts payable to nonconsolidated equity investees: In millions December 31, December 31, Balance Sheet Location Accounts receivable from nonconsolidated equity investees $ 530 $ 376 Accounts and notes receivable, net Accounts payable to nonconsolidated equity investees 324 292 Accounts payable (principally trade)
Supplier Finance Program	The following table summarizes the changes in amounts due to financial intermediaries reflected in accounts payable for the year ended December 31, 2023: In millions Balance at December 31, 2022 $ 331 Additional invoices presented for payment 1,141 Payments to financial intermediaries (1,274) Foreign currency translation adjustments and other 1 Balance at December 31, 2023 $ 199

REVENUE RECOGNITION LONG-TERM_2

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRAACTS AND DEFERRED AND UNBILLED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability	The following is a summary of our unbilled and deferred revenue and related activity: December 31, In millions 2023 2022 Unbilled revenue $ 303 $ 257 Deferred revenue 2,186 1,848

REVENUE RECOGNITION DISAGGREG_2

REVENUE RECOGNITION DISAGGREGATION OF REVENUES REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Tables)	12 Months Ended
	Dec. 31, 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. Years ended December 31, In millions 2023 2022 2021 United States (1) $ 19,302 $ 15,833 $ 12,489 China 3,115 2,390 3,169 India 1,678 1,392 1,133 Other international (1) 9,970 8,459 7,230 Total net sales $ 34,065 $ 28,074 $ 24,021 (1) We revised $281 million from other international to United States for the year ended December 31, 2022.
Components
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Components segment external sales by business were as follows: Years ended December 31, In millions 2023 2022 2021 Axles and brakes $ 4,822 $ 1,879 $ — Emission solutions 3,425 3,086 3,142 Atmus 1,345 1,259 1,171 Engine components 1,119 946 1,019 Automated transmissions 714 593 481 Software and electronics 106 84 119 Total sales $ 11,531 $ 7,847 $ 5,932
Engine
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Market	Engine segment external sales by market were as follows: Years ended December 31, In millions 2023 2022 2021 Heavy-duty truck $ 3,391 $ 2,995 $ 2,511 Medium-duty truck and bus 2,622 2,412 1,978 Light-duty automotive 1,748 1,704 1,845 Total on-highway 7,761 7,111 6,334 Off-highway 1,113 1,088 1,255 Total sales $ 8,874 $ 8,199 $ 7,589
Distribution
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Geographic Areas	Distribution segment external sales by region were as follows: Years ended December 31, In millions 2023 2022 2021 North America $ 7,054 $ 5,948 $ 4,902 Asia Pacific 1,091 1,011 901 Europe 848 914 962 China 424 351 323 Africa and Middle East 294 250 278 India 264 217 194 Latin America 224 210 182 Total sales $ 10,199 $ 8,901 $ 7,742
Revenue from External Customers by Products and Services	Distribution segment external sales by product line were as follows: Years ended December 31, In millions 2023 2022 2021 Parts $ 4,052 $ 3,809 $ 3,136 Power generation 2,496 1,767 1,754 Engines 1,987 1,770 1,493 Service 1,664 1,555 1,359 Total sales $ 10,199 $ 8,901 $ 7,742
Power Systems
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products and Services	Power Systems segment external sales by product line were as follows: Years ended December 31, In millions 2023 2022 2021 Power generation $ 1,698 $ 1,658 $ 1,481 Industrial 970 843 820 Generator technologies 457 450 349 Total sales $ 3,125 $ 2,951 $ 2,650

INVESTMENTS IN EQUITY INVESTE_2

INVESTMENTS IN EQUITY INVESTEES (Tables)	12 Months Ended
	Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Summary of investments in and advances to equity investees and our ownership percentage	Investments and advances related to equity method investees and our ownership percentages were as follows: Ownership December 31, Dollars in millions percentage 2023 2022 Komatsu alliances 20-50% $ 331 $ 295 Beijing Foton Cummins Engine Co., Ltd. 50% 194 189 Sisamex 50% 149 144 Dongfeng Cummins Engine Company, Ltd. 50% 128 106 Automotive Axles Limited 36% 125 125 Chongqing Cummins Engine Company, Ltd. 50% 110 118 Tata Cummins, Ltd. 50% 89 92 Cummins-Scania XPI Manufacturing, LLC 50% 85 130 Freios Master 49% 84 86 Other Various 505 474 Investments and advances related to equity method investees $ 1,800 $ 1,759
Equity, royalty and interest income from investees	Equity, royalty and interest income from investees, net of applicable taxes, was as follows: Years ended December 31, In millions 2023 2022 2021 Manufacturing entities Dongfeng Cummins Engine Company, Ltd. $ 65 $ 45 $ 82 Beijing Foton Cummins Engine Co., Ltd. 47 37 112 Chongqing Cummins Engine Company, Ltd. 36 32 39 Tata Cummins, Ltd. 29 27 18 All other manufacturers 91 28 (1) 131 Distribution entities Komatsu Cummins Chile, Ltda. 55 44 32 All other distributors 16 11 10 Cummins share of net income 339 224 424 Royalty and interest income 144 125 82 Equity, royalty and interest income from investees $ 483 $ 349 $ 506 (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. In addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. See NOTE 24, "ACQUISITIONS," and NOTE 22, "RUSSIAN OPERATIONS," for additional information.
Summary of financial information for equity investees	Summary financial information for our equity investees was as follows: Years ended and at December 31, In millions 2023 2022 2021 Net sales $ 9,998 $ 7,501 $ 8,934 Gross margin 1,597 1,211 1,574 Net income 677 475 802 Cummins share of net income $ 339 $ 224 $ 424 Royalty and interest income 144 125 82 Total equity, royalty and interest from investees $ 483 $ 349 $ 506 Current assets $ 4,922 $ 4,252 Long-term assets 2,021 1,935 Current liabilities (3,812) (3,224) Long-term liabilities (432) (399) Net assets $ 2,699 $ 2,564 Cummins share of net assets $ 1,786 $ 1,715

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	The following table summarizes income before income taxes: Years ended December 31, In millions 2023 2022 2021 U.S. (loss) income $ (541) $ 1,336 $ 1,251 Foreign income 2,167 1,483 1,500 Income before income taxes $ 1,626 $ 2,819 $ 2,751
Schedule of Components of Income Tax Expense (Benefit)	Income tax expense (benefit) consisted of the following: Years ended December 31, In millions 2023 2022 2021 Current U.S. federal and state $ 611 $ 425 $ 261 Foreign 632 485 319 Total current income tax expense 1,243 910 580 Deferred U.S. federal and state (468) (229) (12) Foreign 11 (45) 19 Total deferred income tax (benefit) expense (457) (274) 7 Income tax expense $ 786 $ 636 $ 587
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate was as follows: Years ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal effect (0.4) 1.3 1.1 Differences in rates and taxability of foreign subsidiaries and joint ventures (1) 11.9 3.1 0.1 Research tax credits (4.7) (1.8) (0.6) Foreign derived intangible income (4.2) (2.0) (1.0) Agreement in Principle, federal impact (2) 22.4 — — Agreement in Principle, state impact (2) 2.1 — — Other, net 0.2 1.0 0.7 Effective tax rate 48.3 % 22.6 % 21.3 % (1) Includes the jurisdictional mix of pre-tax income and impact of actual and planned repatriation of earnings back to the U.S. (2) See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information.
Schedule of Deferred Tax Assets and Liabilities	Carryforward tax benefits and the tax effect of temporary differences between financial and tax reporting that give rise to net deferred tax assets (liabilities) were as follows: December 31, In millions 2023 2022 Deferred tax assets U.S. and state carryforward benefits $ 272 $ 272 Foreign carryforward benefits 609 527 Employee benefit plans 347 258 Warranty expenses 483 458 Lease liabilities 125 110 Capitalized research and development expenditures 591 238 Accrued expenses 253 174 Other 78 126 Gross deferred tax assets 2,758 2,163 Valuation allowance (789) (704) Total deferred tax assets 1,969 1,459 Deferred tax liabilities Property, plant and equipment (367) (369) Unremitted income of foreign subsidiaries and joint ventures (179) (210) Employee benefit plans (278) (311) Lease assets (123) (108) Intangible assets (406) (435) Other (64) (50) Total deferred tax liabilities (1,417) (1,483) Net deferred tax (liabilities) assets $ 552 $ (24)
Tax Related Line Items on the Consolidated Balance Sheets	Our Consolidated Balance Sheets contain the following tax related items: December 31, In millions 2023 2022 Prepaid expenses and other current assets Refundable income taxes $ 81 $ 83 Other assets Deferred income tax assets 1,082 625 Long-term refundable income taxes 27 14 Other accrued expenses Income tax payable 242 173 Other liabilities Long-term income taxes 111 192 Deferred income tax liabilities 530 649
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021 was as follows: December 31, In millions 2023 2022 2021 Balance at beginning of year $ 283 $ 89 $ 122 Additions to tax positions due to acquisitions 8 189 — Additions to current year tax positions 21 17 11 Additions to prior years' tax positions 19 17 16 Reductions to prior years' tax positions (1) (1) (28) Reductions for tax positions due to settlements with taxing authorities — (28) (32) Balance at end of year $ 330 $ 283 $ 89

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2023
Marketable Securities [Abstract]
Summary of marketable securities	A summary of marketable securities, all of which are classified as current, was as follows: December 31, 2023 2022 In millions Cost Gross unrealized gains/(losses) (1) Estimated Cost Gross unrealized gains/(losses) (1) Estimated Equity securities Debt mutual funds $ 272 $ — $ 272 $ 238 $ (5) $ 233 Certificates of deposit 246 — 246 209 — 209 Equity mutual funds 22 6 28 25 3 28 Debt securities 16 — 16 2 — 2 Marketable securities $ 556 $ 6 $ 562 $ 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 Consolidated Statements of Net Income .
Schedule of proceeds from sales and maturities of marketable securities	The proceeds from sales and maturities of marketable securities were as follows: Years ended December 31, In millions 2023 2022 2021 Proceeds from sales of marketable securities $ 1,075 $ 750 $ 494 Proceeds from maturities of marketable securities 259 401 179 Investments in marketable securities - liquidations $ 1,334 $ 1,151 $ 673

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories are stated at the lower of cost or net realizable value. Inventories included the following: December 31, In millions 2023 2022 Finished products $ 2,770 $ 2,917 Work-in-process and raw materials 3,156 2,926 Inventories at FIFO cost 5,926 5,843 Excess of FIFO over LIFO (249) (240) Inventories $ 5,677 $ 5,603

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Property, plant and equipment	Details of our property, plant and equipment balance were as follows: December 31, In millions 2023 2022 Land and buildings $ 3,039 $ 2,908 Machinery, equipment and fixtures 7,245 6,598 Construction in process 1,390 1,001 Property, plant and equipment, gross 11,674 10,507 Less: Accumulated depreciation (5,425) (4,986) Property, plant and equipment, net $ 6,249 $ 5,521

LEASES FOOTNOTE DISCLOSURE LE_2

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Tables)	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Lease, Cost	The components of our lease cost were as follows: Years ended December 31, In millions 2023 2022 2021 Operating lease cost $ 165 $ 160 $ 172 Finance lease cost Amortization of right-of-use asset 20 19 16 Interest expense 4 4 4 Short-term lease cost 24 23 18 Variable lease cost 14 12 11 Total lease cost $ 227 $ 218 $ 221
Schedule Of Supplemental Balance Sheet Information Related To Leases Table	Supplemental balance sheet information related to leases: December 31, In millions 2023 2022 Balance Sheet Location Assets Operating lease assets $ 501 $ 492 Other assets Finance lease assets (1) 115 117 Property, plant and equipment, net Total lease assets $ 616 $ 609 Liabilities Current Operating lease liabilities $ 138 $ 132 Other accrued expenses Finance lease liabilities 17 32 Current maturities of long-term debt Long-term Operating lease liabilities 374 368 Other liabilities Finance lease liabilities 94 81 Long-term debt Total lease liabilities $ 623 $ 613 (1) Finance lease assets were recorded net of accumulated amortization of $77 million and $78 million at December 31, 2023 and 2022.
Schedule Of Supplemental Cash Flow Information Related To Leases Table	Supplemental cash flow and other information related to leases: Years ended December 31, In millions 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 148 $ 151 $ 159 Operating cash flows from finance leases 4 4 4 Financing cash flows from finance leases 35 16 14 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 153 $ 148 $ 160 Finance leases 12 29 13
Schedule Of Supplemental Other Information Related To Leases Table	Additional information related to leases: December 31, 2023 2022 Weighted-average remaining lease term (in years) Operating leases 5.2 5.4 Finance leases 8.6 7.9 Weighted-average discount rate Operating leases 4.2 % 3.7 % Finance leases 5.0 % 4.7 %
Lessee, Finance and Operating Lease, Liability, Maturity	Following is a summary of the future minimum lease payments related to finance and operating leases with terms of more than one year at December 31, 2023, together with the net present value of the minimum payments: In millions Finance Leases Operating Leases 2024 $ 23 $ 155 2025 19 126 2026 15 92 2027 13 68 2028 12 45 After 2028 56 90 Total minimum lease payments 138 576 Interest (27) (64) Present value of net minimum lease payments $ 111 $ 512

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022: In millions Components Accelera Distribution Power Systems Engine Total Balance at December 31, 2021 $ 934 $ 257 $ 79 $ 11 $ 6 $ 1,287 Acquisitions 835 237 — — — 1,072 Foreign currency translation and other (17) 1 — — — (16) Balance at December 31, 2022 1,752 495 79 11 6 2,343 Acquisitions 122 — 4 — 18 144 Foreign currency translation and other 10 1 — — 1 12 Balance at December 31, 2023 $ 1,884 $ 496 $ 83 $ 11 $ 25 $ 2,499
Summary of other intangible assets with finite useful lives that are subject to amortization	The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: December 31, In millions 2023 2022 Software $ 622 $ 679 Less: Accumulated amortization (323) (410) Software, net 299 269 Trademarks, patents, customer relationships and other 2,886 2,858 Less: Accumulated amortization (666) (440) Trademarks, patents, customer relationships and other, net 2,220 2,418 Other intangible assets, net $ 2,519 $ 2,687
Projected amortization expense of intangible assets	The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows: In millions 2024 2025 2026 2027 2028 Projected amortization expense $ 323 $ 299 $ 281 $ 260 $ 233

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	12 Months Ended
	Dec. 31, 2023
Pension and other postretirement benefits
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets	The following table summarizes the total accumulated benefit obligation (ABO), the ABO for defined benefit pension plans with ABO in excess of plan assets and the PBO for defined benefit pension plans with PBO in excess of plan assets: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2023 2022 2023 2022 Total ABO $ 3,334 $ 3,138 $ 1,504 $ 1,376 Plans with ABO in excess of plan assets ABO 1,067 1,044 — — Plans with PBO in excess of plan assets PBO 1,116 1,078 — —
Pension Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2023 2022 2023 2022 Change in benefit obligation Benefit obligation at the beginning of the year $ 3,171 $ 3,012 $ 1,398 $ 1,887 Service cost 117 137 17 30 Interest cost 168 101 70 39 Actuarial loss (gain) 172 (643) 47 (702) Benefits paid from fund (223) (200) (87) (70) Benefits paid directly by employer (25) (25) — — Plan amendment 1 3 — — Assumption of Meritor's benefit obligation — 786 — 418 Foreign currency translation adjustments — — 80 (204) Benefit obligation at end of year $ 3,381 $ 3,171 $ 1,525 $ 1,398 Change in plan assets Fair value of plan assets at beginning of year $ 3,828 $ 3,548 $ 1,670 $ 2,390 Actual return on plan assets 221 (244) (51) (960) Employer contributions — 25 90 3 Benefits paid from fund (223) (200) (87) (70) Assumption of Meritor's plan assets — 699 — 565 Foreign currency translation adjustments — — 98 (258) Fair value of plan assets at end of year $ 3,826 $ 3,828 $ 1,720 $ 1,670 Funded status (including unfunded plans) at end of year $ 445 $ 657 $ 195 $ 272 Amounts recognized in consolidated balance sheets Pension assets $ 1,002 $ 1,126 $ 195 $ 272 Accrued compensation, benefits and retirement costs (27) (24) — — Other liabilities (530) (445) — — Net amount recognized $ 445 $ 657 $ 195 $ 272 Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ 493 $ 273 $ 606 $ 402 Prior service cost 8 8 8 10 Net amount recognized $ 501 $ 281 $ 614 $ 412
Schedule of Net Benefit Costs	The following table presents the net periodic pension cost (income) under our plans for the years ended December 31: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans In millions 2023 2022 2021 2023 2022 2021 Service cost $ 117 $ 137 $ 139 $ 17 $ 30 $ 33 Interest cost 168 101 79 70 39 30 Expected return on plan assets (277) (229) (199) (105) (87) (85) Amortization of prior service cost 2 1 1 1 1 2 Recognized net actuarial loss 8 23 47 — 3 31 Net periodic pension cost (income) $ 18 $ 33 $ 67 $ (17) $ (14) $ 11
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows: In millions 2023 2022 2021 Amortization of prior service cost $ (3) $ (2) $ (3) Recognized net actuarial loss (8) (26) (78) Incurred prior service cost 1 3 — Incurred actuarial loss (gain) 432 173 (368) Foreign currency translation adjustments — — 5 Total recognized in other comprehensive loss (income) $ 422 $ 148 $ (444) Total recognized in net periodic pension cost and other comprehensive loss (income) $ 423 $ 167 $ (366)
Schedule of Assumptions Used	The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2023 2022 2023 2022 Discount rate 5.15 % 5.55 % 4.72 % 4.99 % Cash balance crediting rate 4.55 % 4.56 % — — Compensation increase rate 5.34 % 5.35 % 3.75 % 3.75 % The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2023 2022 2021 2023 2022 2021 Discount rate 5.55 % 3.31 % 2.62 % 4.99 % 2.26 % 1.50 % Expected return on plan assets 7.00 % 6.50 % 6.25 % 5.00 % 4.01 % 4.00 % Compensation increase rate 5.35 % 2.71 % 2.72 % 3.75 % 3.75 % 3.75 %
Schedule of Expected Benefit Payments	The table below presents expected future benefit payments under our pension plans: Qualified and Non-Qualified Pension Plans In millions 2024 2025 2026 2027 2028 2029 - 2033 Expected benefit payments $ 360 $ 358 $ 361 $ 364 $ 370 $ 1,872
Other Postretirement Benefit Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows: December 31, In millions 2023 2022 Change in benefit obligation Benefit obligation at the beginning of the year $ 162 $ 192 Interest cost 9 5 Plan participants' contributions 18 4 Actuarial gain (2) (25) Benefits paid directly by employer (37) (36) Assumption of Meritor's benefit obligation — 22 Benefit obligation at end of year $ 150 $ 162 Funded status at end of year $ (150) $ (162) Amounts recognized in consolidated balance sheets Accrued compensation, benefits and retirement costs $ (19) $ (21) Other liabilities (131) (141) Net amount recognized $ (150) $ (162) Amounts recognized in accumulated other comprehensive loss Net actuarial gain $ (44) $ (44) Prior service credit (3) (3) Net amount recognized $ (47) $ (47)
Schedule of Net Benefit Costs	The following table presents the net periodic OPEB cost under our plans: Years ended December 31, In millions 2023 2022 2021 Interest cost $ 9 $ 5 $ 5 Recognized net actuarial gain (2) — — Net periodic OPEB cost $ 7 $ 5 $ 5
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations recognized in other comprehensive loss (income) for the years ended December 31 were as follows: Years ended December 31, In millions 2023 2022 2021 Recognized net actuarial gain $ 2 $ — $ — Incurred actuarial gain (2) (25) (8) Total recognized in other comprehensive loss (income) $ — $ (25) $ (8) Total recognized in net periodic OPEB cost and other comprehensive loss (income) $ 7 $ (20) $ (3)
Schedule of Assumptions Used	The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows: 2023 2022 Discount rate 5.19 % 5.59 % The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows: 2023 2022 2021 Discount rate 5.59 % 2.93 % 2.30 %
Schedule of Expected Benefit Payments	The table below presents expected benefit payments under our OPEB plans: In millions 2024 2025 2026 2027 2028 2029 - 2033 Expected benefit payments $ 20 $ 18 $ 16 $ 16 $ 15 $ 58
UNITED STATES
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	To achieve these objectives, we established the following targets: Asset Class Plan Target U.S. equities 8 % Non-U.S. equities 3 % Global equities 5 % Total equities 16 % Real assets 5 % Private equity/venture capital 5 % Opportunistic credit 3 % Fixed income 71 % Total 100 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.S. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2023 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 73 $ — $ — $ 73 Non-U.S. 36 — — 36 Fixed income Government debt 157 — 157 Corporate debt U.S. — 603 — 603 Non-U.S. — 49 — 49 Asset/mortgaged backed securities — 8 — 8 Net cash equivalents (1) 467 — — 467 Private markets and real assets (2) — — 604 604 Net plan assets subject to leveling $ 576 $ 817 $ 604 $ 1,997 Pending trade/purchases/sales (16) Accruals (3) 10 Investments measured at net asset value 1,835 Net plan assets $ 3,826 Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 118 $ — $ — $ 118 Non-U.S. 31 — — 31 Fixed income Government debt — 188 — 188 Corporate debt U.S. — 423 — 423 Non-U.S. 12 41 — 53 Asset/mortgaged backed securities 7 — — 7 Net cash equivalents (1) 499 9 — 508 Diversified strategies 14 — — 14 Private markets and real assets (2) — — 641 641 Net plan assets subject to leveling $ 681 $ 661 $ 641 $ 1,983 Accruals (3) 7 Investments measured at net asset value 1,838 Net plan assets $ 3,828 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Private Markets Real Assets Total Balance at December 31, 2021 $ 471 $ 80 $ 551 Actual return on plan assets Unrealized gains on assets still held at the reporting date 6 19 25 Purchases, sales and settlements, net (12) (17) (29) Assumption of Meritor's plan assets 94 — 94 Balance at December 31, 2022 559 82 641 Actual return on plan assets Unrealized gains on assets still held at the reporting date 6 (13) (7) Purchases, sales and settlements, net (28) (2) (30) Balance at December 31, 2023 $ 537 $ 67 $ 604
UNITED KINGDOM
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	To achieve these objectives, we established the following targets: Asset Class Plan Target Equities 1 % Property/secure income assets 8 % Credit/bank loans 5 % Diversified strategies 1 % Private equity 5 % Fixed income/insurance annuity 78 % Cash 2 % Total 100 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.K. pension plan assets by asset category were as follows: Fair Value Measurements at December 31, 2023 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 12 $ — $ — $ 12 Non-U.S. 8 — — 8 Fixed income Government debt — 232 — 232 Corporate debt U.S. — 30 — 30 Non-U.S. — 95 — 95 Net cash equivalents (1) 17 18 — 35 Insurance annuity — — 436 436 Private markets and real assets (2) — — 103 103 Net plan assets subject to leveling $ 37 $ 375 $ 539 $ 951 Pending trade/purchases/sales 1 Accruals (3) 2 Investments measured at net asset value 766 Net plan assets $ 1,720 Fair Value Measurements at December 31, 2022 In millions Quoted prices in active Significant other Significant Total Equities U.S. $ 13 $ — $ — $ 13 Non-U.S. 9 — — 9 Fixed income Government debt — 222 — 222 Corporate debt U.S. — 24 — 24 Non-U.S. — 80 — 80 Net cash equivalents (1) 27 11 — 38 Insurance annuity — — 428 428 Private markets and real assets (2) — — 390 390 Net plan assets subject to leveling $ 49 $ 337 $ 818 $ 1,204 Pending trade/purchases/sales 141 Accruals (3) 2 Investments measured at net asset value 323 Net plan assets $ 1,670 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows: Fair Value Measurements In millions Insurance Annuity Real Assets Private Markets Total Balance at December 31, 2021 $ 514 $ 33 $ 356 $ 903 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date (178) (2) 39 (141) Purchases, sales and settlements, net — (23) (13) (36) Assumption of Meritor's plan assets 92 — — 92 Balance at December 31, 2022 428 8 382 818 Actual return on plan assets Unrealized (losses) gains on assets still held at the reporting date 8 — (35) (27) Purchases, sales and settlements, net — (1) (251) (252) Balance at December 31, 2023 $ 436 $ 7 $ 96 $ 539

SUPPLEMENTAL BALANCE SHEET DATA

SUPPLEMENTAL BALANCE SHEET DATA (Tables)	12 Months Ended
	Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Schedule of Other Assets	Other assets included the following: December 31, In millions 2023 2022 Deferred income taxes $ 1,082 $ 625 Operating lease assets 501 492 Corporate owned life insurance 417 390 Other 543 633 Other assets $ 2,543 $ 2,140
Schedule of Accrued Liabilities	Other accrued expenses included the following: December 31, In millions 2023 2022 Agreement in Principle (1) $ 1,938 $ — Marketing accruals 399 316 Other taxes payable 296 224 Income taxes payable 242 173 Current portion of operating lease liabilities 138 132 Other 741 620 Other accrued expenses $ 3,754 $ 1,465 (1) See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information.
Other Noncurrent Liabilities	Other liabilities included the following: December 31, In millions 2023 2022 Accrued product warranty $ 777 $ 744 Pensions 530 445 Deferred income taxes 530 649 Operating lease liabilities 374 368 Accrued compensation 213 184 Other postretirement benefits 131 141 Mark-to-market valuation on interest rate derivatives 117 151 Long-term income taxes 111 192 Other long-term liabilities 647 437 Other liabilities $ 3,430 $ 3,311

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2023
Short-term Debt [Line Items]
Summary of long-term debt	A summary of long-term debt was as follows: December 31, In millions Interest Rate 2023 2022 Long-term debt Senior notes, due 2023 3.65% $ — $ 500 Hydrogenics promissory notes, due 2024 and 2025 (1) —% 160 — Term loan, due 2025 (2)(3) Variable 1,150 1,550 Senior notes, due 2025 (4) 0.75% 500 500 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 94 121 Unamortized discount and deferred issuance costs (72) (64) Fair value adjustments due to hedge on indebtedness (96) (122) Finance leases 111 113 Total long-term debt 4,920 5,071 Less: Current maturities of long-term debt 118 573 Long-term debt $ 4,802 $ 4,498 (1) See NOTE 24, "ACQUISITIONS," for additional information. (2) During 2023, we paid down $400 million of the term loan. (3) In September 2023, we entered into a series of interest rate swaps in order to trade a portion of the floating rate into fixed rate. See "Interest Rate Risk" in NOTE 21, "DERIVATIVES," for additional information. (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 21, "DERIVATIVES," 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 2024 2025 2026 2027 2028 Principal payments $ 118 $ 1,797 $ 67 $ 614 $ 266
Fair value and carrying value of total debt	Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows: December 31, In millions 2023 2022 Fair values of total debt (1) $ 6,375 $ 7,400 Carrying value of total debt 6,696 7,855 (1) The fair value of debt is derived from Level 2 input measures.
Loans Payable
Short-term Debt [Line Items]
Weighted-average interest rate	The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows: 2023 2022 Weighted-average interest rate 3.31 % 4.02 %
Commercial Paper
Short-term Debt [Line Items]
Weighted-average interest rate	The weighted-average interest rate for commercial paper at December 31 was as follows: 2023 2022 Weighted-average interest rate 5.43 % 4.27 %

PRODUCT WARRANTY LIABILITY (Tab

PRODUCT WARRANTY LIABILITY (Tables)	12 Months Ended
	Dec. 31, 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: December 31, In millions 2023 2022 2021 Balance at beginning of year $ 2,477 $ 2,425 $ 2,307 Provision for base warranties issued 602 515 503 Deferred revenue on extended warranty contracts sold 350 287 288 Provision for product campaigns issued 28 141 346 Payments made during period (705) (596) (530) Amortization of deferred revenue on extended warranty contracts (300) (298) (260) Changes in estimates for pre-existing product warranties and campaigns 37 (128) (228) Acquisitions (1) — 147 — Foreign currency translation adjustments and other 8 (16) (1) Balance at end of year $ 2,497 $ 2,477 $ 2,425 (1) See NOTE 24, "ACQUISITIONS," for additional information.
Deferred Revenue Extended Coverage and Base Warranty Liability, Disclosure	Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows: December 31, In millions 2023 2022 Balance Sheet Location Deferred revenue related to extended coverage programs Current portion $ 279 $ 290 Current portion of deferred revenue Long-term portion 774 717 Deferred revenue Total $ 1,053 $ 1,007 Product warranty Current portion $ 667 $ 726 Current portion of accrued product warranty Long-term portion 777 744 Other liabilities Total $ 1,444 $ 1,470 Total warranty accrual $ 2,497 $ 2,477

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans	Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans were as follows: In millions Common Treasury Balance at December 31, 2020 222.4 74.8 Shares acquired — 5.7 Shares issued 0.1 (0.5) Balance at December 31, 2021 222.5 80.0 Shares acquired — 1.9 Shares issued — (0.7) Balance at December 31, 2022 222.5 81.2 Shares issued — (0.5) Balance at December 31, 2023 222.5 80.7
Dividends per share paid to common shareholders	Cash dividends per share paid to common shareholders for the last three years were as follows: Quarterly Dividends 2023 2022 2021 First quarter $ 1.57 $ 1.45 $ 1.35 Second quarter 1.57 1.45 1.35 Third quarter 1.68 1.57 1.45 Fourth quarter 1.68 1.57 1.45 Total $ 6.50 $ 6.04 $ 5.60

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Changes in accumulated other comprehensive income (loss) by component	Following are the changes in accumulated other comprehensive (loss) income by component: In millions Change in pensions Foreign Unrealized gain Total Noncontrolling Total Balance at December 31, 2020 $ (735) $ (1,204) $ (43) $ (1,982) Other comprehensive income (loss) before reclassifications Before-tax amount 425 (5) 38 458 $ (5) $ 453 Tax (expense) benefit (103) 1 (12) (114) — (114) After-tax amount 322 (4) 26 344 (5) 339 Amounts reclassified from accumulated other comprehensive income (1) 67 — — 67 — 67 Net current period other comprehensive income (loss) 389 (4) 26 411 $ (5) $ 406 Balance at December 31, 2021 $ (346) $ (1,208) $ (17) $ (1,571) Other comprehensive income (loss) before reclassifications Before-tax amount (123) (350) 136 (337) $ (40) $ (377) Tax benefit (expense) 19 6 (32) (7) — (7) After-tax amount (104) (344) 104 (344) (40) (384) Amounts reclassified from accumulated other comprehensive income (1) 23 — 2 25 — 25 Net current period other comprehensive income (loss) (81) (344) 106 (319) $ (40) $ (359) Balance at December 31, 2022 $ (427) $ (1,552) $ 89 $ (1,890) Other comprehensive income (loss) before reclassifications Before-tax amount (541) 96 35 (410) $ (3) $ (413) Tax benefit (expense) 113 (1) (7) 105 — 105 After-tax amount (428) 95 28 (305) (3) (308) Amounts reclassified from accumulated other comprehensive income (1) 7 — (18) (11) — (11) Net current period other comprehensive (loss) income (421) 95 10 (316) $ (3) $ (319) Balance at December 31, 2023 $ (848) $ (1,457) $ 99 $ (2,206) (1) Amounts are net of tax. Reclassifications out of accumulated other comprehensive income (loss) and the related tax effects are immaterial for separate disclosure.

NONCONTROLLING INTERESTS (Table

NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Dec. 31, 2023
Noncontrolling Interest [Abstract]
Noncontrolling interests in the equity of consolidated subsidiaries	Noncontrolling interests in the equity of consolidated subsidiaries were as follows: December 31, In millions 2023 2022 Eaton Cummins Automated Transmission Technologies $ 534 $ 525 Cummins India Ltd. 388 342 Other 132 125 Noncontrolling interests $ 1,054 $ 992

STOCK INCENTIVE AND STOCK OPT_2

STOCK INCENTIVE AND STOCK OPTION PLANS (Tables)	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Option, Activity	The table below summarizes the employee share-based activity in the Plan: Options Weighted-average Weighted-average Aggregate Balance at December 31, 2020 3,175,530 $ 142.63 Granted 16,550 232.44 Exercised (400,154) 138.93 Forfeited (48,828) 153.72 Balance at December 31, 2021 2,743,098 143.51 Granted 18,900 207.79 Exercised (586,990) 137.83 Forfeited (29,045) 148.08 Balance at December 31, 2022 2,145,963 145.57 Granted 17,500 225.39 Exercised (345,250) 142.69 Forfeited (3,793) 144.16 Balance at December 31, 2023 1,814,420 $ 146.89 4.2 $ 169 Exercisable, December 31, 2021 1,629,588 $ 136.74 4.4 $ 133 Exercisable, December 31, 2022 1,655,298 $ 146.37 4.6 $ 159 Exercisable, December 31, 2023 1,814,420 $ 146.89 4.2 $ 169
Schedule of Nonvested Share Activity	The share-based activity and weighted-average grant date fair value of performance and restricted shares was as follows: Performance Shares Restricted Shares Nonvested Shares Weighted-average Shares Weighted-average Balance at December 31, 2020 376,954 $ 140.85 3,704 $ 165.04 Granted 217,684 234.22 26,224 265.41 Vested (131,744) 146.55 — — Forfeited (22,745) 171.91 — — Balance at December 31, 2021 440,149 183.72 29,928 252.99 Granted 230,535 184.92 215,260 209.08 Vested (122,188) 148.99 (5,513) 249.79 Forfeited (63,197) 182.68 (3,262) 211.37 Balance at December 31, 2022 485,299 193.17 236,413 213.66 Granted 170,205 222.86 176,128 223.92 Vested (99,425) 126.38 (74,270) 215.38 Forfeited (68,566) 199.69 (27,931) 217.01 Balance at December 31, 2023 487,513 $ 216.24 310,340 $ 218.77
Schedule of Share-based Payment Award,s for Performance and Restricted shares - Assumptions	The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: 2023 2022 2021 Expected life (years) 6 6 6 Risk-free interest rate 3.91 % 2.32 % 1.15 % Expected volatility 28.73 % 28.40 % 28.68 % Dividend yield 2.81 % 2.85 % 2.95 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Computations for basic and diluted earnings per share	Following are the computations for basic and diluted earnings per share: Years ended December 31, In millions, except per share amounts 2023 2022 2021 Net income attributable to Cummins Inc. $ 735 $ 2,151 $ 2,131 Weighted-average common shares outstanding Basic 141.7 141.5 144.6 Dilutive effect of stock compensation awards 1.0 0.8 1.3 Diluted 142.7 142.3 145.9 Earnings per common share attributable to Cummins Inc. Basic $ 5.19 $ 15.20 $ 14.74 Diluted 5.15 15.12 14.61
Options excluded from diluted earnings per share	The options excluded from diluted earnings per share were as follows: Years ended December 31, 2023 2022 2021 Options excluded 10,587 20,595 6,463

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 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 AOCL: Years ended December 31, In millions 2023 2022 Type of Derivative Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Gain (Loss) Gain (Loss) Reclassified from AOCL into Earnings Foreign exchange forwards $ (30) $ — $ (22) $ — The following table summarizes the interest rate swap activity in AOCL: Year ended December 31, In millions 2023 Type of Swap Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate swaps $ (4) $ — Year ended December 31, In millions 2023 2022 2021 Type of Swap Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) Gain (Loss) Reclassified from AOCL into Interest Expense Interest rate locks $ 14 $ 2 $ 112 $ — $ 19 $ —
Schedule of Interest Rate Derivatives	The following table summarizes the gains and losses: Years ended December 31, In millions 2023 2022 2021 Type of Swap Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Gain (Loss) on Interest rate swaps (1) $ 31 $ (32) $ (148) $ 145 $ (3) $ 2 (1) The difference between the gain (loss) on swaps and borrowings represented hedge ineffectiveness.
Derivative Instruments, Gain (Loss)	The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments classified as cash flow hedges. The table does not include amounts related to ineffectiveness as it was not material for the periods presented. Years ended December 31, In millions 2023 2022 2021 Gain (loss) reclassified from AOCL into income - Net sales (1) $ 17 $ (4) $ (4) Gain reclassified from AOCL into income - Cost of sales (1)(2) 3 1 6 (1) Includes foreign currency forward contracts. (2) Includes commodity swap contracts.
Derivatives Not Designated as Hedging Instruments	The following table summarizes the effect on our Consolidated Statements of Net Income for derivative instruments not designated as hedging instruments: Years ended December 31, In millions 2023 2022 2021 (Loss) gain recognized in income - Cost of sales (1) $ (3) $ 2 $ — (Loss) gain recognized in income - Other income, net (1) (21) (5) 45 (1) Includes foreign currency forward contracts.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The following table summarizes the location and fair value of derivative instruments on our Consolidated Balance Sheets : Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, In millions 2023 2022 2023 2022 Notional amount $ 2,997 $ 3,051 $ 3,610 $ 2,900 Derivative assets Prepaid expenses and other current assets $ 14 $ 18 $ 16 $ 27 Other assets — 80 — — Total derivative assets (1) $ 14 $ 98 $ 16 $ 27 Derivative liabilities Other accrued expenses $ 43 $ 19 $ 14 $ 3 Other liabilities 117 151 — — Total derivative liabilities (1) $ 160 $ 170 $ 14 $ 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 2023 or 2022.

RUSSIAN OPERATIONS (Tables)

RUSSIAN OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following summarizes the costs associated with the suspension of our Russian operations in our Consolidated Statements of Net Income: Year ended In millions December 31, Statement of Net Income Location Inventory write-downs $ 17 Cost of sales Accounts receivable reserves 41 Other operating expense, net Impairment and other joint venture costs 31 Equity, royalty and interest income from investees Other 22 Other operating expense, net Russian suspension costs, net of recoveries $ 111

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)				12 Months Ended
	Oct. 02, 2023	Aug. 03, 2022	Apr. 08, 2022	Dec. 31, 2023
Business Acquisition [Line Items]
Schedule of Business Acquisitions, by Acquisition				Acquisitions for the years ended December 31, 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 Type of Acquisition (1) Goodwill Acquired Intangibles Recognized (2) 2023 Cummins France SA 10/31/23 100 % $ 25 $ 5 $ 30 COMB $ 4 $ — Faurecia 10/02/23 100 % 210 — 210 (3) COMB 90 — Hydrogenics Corporation (Hydrogenics) 06/29/23 19 % 287 48 335 (4) EQUITY — — Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) 04/03/23 100 % 143 — 143 (5) COMB 18 — 2022 Siemens Commercial Vehicles Propulsion (Siemens CVP) 11/30/22 100 % $ 187 $ — $ 187 COMB $ 70 $ 106 Meritor, Inc. (Meritor) 08/03/22 100 % 2,613 248 2,861 COMB 926 1,610 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) 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). (2) Intangible assets acquired in the business combination were mostly customer, technology and trade name related. (3) Total purchase consideration included $30 million for the settlement of accounts payable that were treated as an operating cash outflow. (4) 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. (5) Total purchase consideration included $32 million for the settlement of accounts payable that were treated as an operating cash outflow.
Summary of other intangible assets with finite useful lives that are subject to amortization				The following table summarizes our other intangible assets with finite useful lives that are subject to amortization: December 31, In millions 2023 2022 Software $ 622 $ 679 Less: Accumulated amortization (323) (410) Software, net 299 269 Trademarks, patents, customer relationships and other 2,886 2,858 Less: Accumulated amortization (666) (440) Trademarks, patents, customer relationships and other, net 2,220 2,418 Other intangible assets, net $ 2,519 $ 2,687
Faurecia
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The preliminary purchase price allocation was as follows: In millions Cash and cash equivalents $ 8 Accounts and notes receivable, net (1) 52 Inventories 32 Property, plant and equipment 93 Goodwill 90 Other current and long-term assets 46 Accounts payable (principally trade) (62) Other current and long-term liabilities (49) Total purchase price $ 210 (1) Includes $30 million of Cummins receivables that were eliminated against payables at other Cummins entities.
Meritor Inc.
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed		The final purchase price allocation has been updated as follows: In millions Cash and cash equivalents $ 98 Accounts and notes receivable, net 640 Inventories 750 Property, plant and equipment 841 Intangible assets 1,610 Investments and advances related to equity method investees 382 Goodwill 926 Pension assets 147 Other current and long-term assets 322 Accounts payable (principally trade) (711) Net deferred taxes (277) Other liabilities (pensions and other postretirement benefits) (129) Long-term debt (962) Other current and long-term liabilities (665) Noncontrolling interests (111) Total purchase price $ 2,861
Summary of other intangible assets with finite useful lives that are subject to amortization		The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 960 12 Multi-period excess earnings Revenue, EBITDA (1) , discount rate, customer renewal rates, customer attrition rates Technology 345 8 Relief-from-royalty Royalty rate, discount rate, obsolescence factor Trade name 305 21 Relief-from-royalty Royalty rate, discount rate (1) Earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.
Business Acquisition, Pro Forma Information				The unaudited pro forma financial information does not reflect any potential cost savings, operating efficiencies, long-term debt pay down estimates, financial synergies or other strategic benefits as a result of the acquisition or any restructuring costs to achieve those benefits. (Unaudited) Years ended December 31, In millions 2022 2021 Net sales $ 30,841 $ 27,949 Net income 2,196 2,058
Jacobs Vehicle Systems
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed			The final purchase price allocation was as follows: In millions Cash and cash equivalents $ 18 Accounts and notes receivable, net 24 Inventories 15 Property, plant and equipment 70 Intangible assets 164 Goodwill 108 Accounts payable (principally trade) (21) Net deferred taxes (27) Other, net (6) Total purchase price $ 345
Summary of other intangible assets with finite useful lives that are subject to amortization			The estimated fair values (all considered Level 3 measurements) of the identifiable intangible assets acquired, their weighted-average useful lives, the related valuation methodology and key assumptions are as follows: Fair Value (in millions) Weighted-Average Useful Life (in years) Valuation Methodology Key Assumptions Customer relationships $ 108 9 Multi-period excess earnings Discount rate, customer renewal rates Technology 31 7 Relief-from-royalty Royalty rate, rate of return, obsolescence factor Trade name 25 14 Relief-from-royalty Royalty rate, discount

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summarized financial information regarding our reportable operating segments at December 31, is shown in the table below: In millions Components Engine Distribution Power Systems Accelera Total Segments 2023 External sales $ 11,531 $ 8,874 $ 10,199 $ 3,125 $ 336 $ 34,065 Intersegment sales 1,878 2,810 50 2,548 18 7,304 Total sales 13,409 11,684 10,249 5,673 354 41,369 Research, development and engineering expenses 387 614 57 237 203 1,498 Equity, royalty and interest income (loss) from investees 97 251 97 53 (15) 483 Interest income 31 19 34 9 2 95 Segment EBITDA 1,840 (1) 1,630 1,209 836 (443) 5,072 Depreciation and amortization (2) 491 225 115 122 63 1,016 Net assets 6,965 930 2,348 1,938 1,159 13,340 Investments and advances to equity investees 582 660 396 132 25 1,795 Capital expenditures 373 538 103 115 84 1,213 2022 External sales $ 7,847 $ 8,199 $ 8,901 $ 2,951 $ 176 $ 28,074 Intersegment sales 1,889 2,746 28 2,082 22 6,767 Total sales 9,736 10,945 8,929 5,033 198 34,841 Research, development and engineering expenses 309 506 52 240 171 1,278 Equity, royalty and interest income (loss) from investees 71 160 (3) 77 43 (2) 349 Interest income 12 14 16 7 — 49 Russian suspension costs (4) 5 33 (5) 54 19 — 111 Segment EBITDA 1,346 (6) 1,535 888 596 (334) 4,031 Depreciation and amortization (2) 304 205 114 120 38 781 Net assets 7,306 1,451 2,698 2,382 1,158 14,995 Investments and advances to equity investees 617 617 352 138 33 1,757 Capital expenditures 264 368 114 96 74 916 2021 External sales $ 5,932 $ 7,589 $ 7,742 $ 2,650 $ 108 $ 24,021 Intersegment sales 1,733 2,365 30 1,765 8 5,901 Total sales 7,665 9,954 7,772 4,415 116 29,922 Research, development and engineering expenses 307 399 48 234 102 1,090 Equity, royalty and interest income from investees 50 335 63 56 2 506 Interest income 5 8 7 5 — 25 Segment EBITDA 1,180 1,406 731 496 (218) 3,595 Depreciation and amortization (2) 183 205 116 131 24 659 Net assets 2,938 1,554 2,294 2,251 602 9,639 Investments and advances to equity investees 254 771 329 164 20 1,538 Capital expenditures 184 341 92 80 37 734 (1) Includes $78 million of costs associated with the IPO and separation of Atmus for the year ended December 31, 2023. (2) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs were $8 million, $3 million and $3 million for the years ended 2023, 2022 and 2021, respectively. A portion of depreciation expense is included in research, development and engineering expense. (3) 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 22, "RUSSIAN OPERATIONS," for additional information. (4) See NOTE 22, "RUSSIAN OPERATIONS," for additional information. (5) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above. (6) Includes $83 million of costs related to the acquisition and integration of Meritor and $28 million of costs associated with the separation of Atmus.
Reconciliation of segment information	A reconciliation of our segment information to the corresponding amounts in the Consolidated Statements of Net Income is shown in the table below: Years ended December 31, In millions 2023 2022 2021 TOTAL SEGMENT EBITDA $ 5,072 $ 4,031 $ 3,595 Intersegment eliminations and other (1) (2,055) (232) (74) Less: Interest expense 375 199 111 Depreciation and amortization 1,016 781 659 INCOME BEFORE INCOME TAXES $ 1,626 $ 2,819 $ 2,751 (1) Intersegment eliminations and other included $2.0 billion related to the Agreement in Principle, $22 million of costs associated with the IPO and separation of Atmus and $21 million of voluntary retirement and voluntary separation charges for the year ended December 31, 2023. The year ended December 31, 2022, included $53 million of costs associated with the planned separation of Atmus. See NOTE 2, "AGREEMENT IN PRINCIPLE," for additional information.
Reconciliation of segment information from net assets to total assets	A reconciliation of our segment net assets to the corresponding amounts in the Consolidated Balance Sheets is shown in the table below: December 31, In millions 2023 2022 Net assets for operating segments $ 13,340 $ 14,995 Cash, cash equivalents and marketable securities 2,741 2,573 Net liabilities deducted in arriving at net segment assets (1) 14,531 11,270 Pension and OPEB adjustments excluded from net segment assets 307 832 Deferred tax assets not allocated to segments 1,082 625 Deferred debt costs not allocated to segments 4 4 Total assets $ 32,005 $ 30,299 (1) Liabilities deducted in arriving at net segment assets include certain accounts payable, accrued expenses, long-term liabilities and other items.
Long-lived assets attributed to geographic areas	Long-lived segment assets by geographic area were as follows: December 31, In millions 2023 2022 United States $ 5,013 $ 4,714 China 1,030 1,052 India 681 665 Mexico 583 429 United Kingdom 489 431 Netherlands 437 334 Brazil 261 256 Canada 171 168 Other international countries 819 731 Total long-lived assets $ 9,484 $ 8,780

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) Nature of Operations, Acquisition, Equity Investments $ in Millions		12 Months Ended
	Aug. 03, 2022 USD ($)	Dec. 31, 2023 location country
Real Estate Properties [Line Items]
Company owned and independent distributor locations | location		450
Countries and territories located in | country		190
Minimum
Real Estate Properties [Line Items]
Dealer locations | location		19,000
Investments in Equity Investees
Percentage of equity method investment ownership		20%
Maximum
Investments in Equity Investees
Percentage of equity method investment ownership		50%
Meritor Inc.
Business Acquisition [Line Items]
Total purchase consideration | $	$ 2,861
Meritor Inc. | Rounded Purchase Price Member
Business Acquisition [Line Items]
Total purchase consideration | $	$ 2,900

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) Foreign Currency, Supp. Cash Flow, Allowance, Inventory - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Foreign Currency Transaction Gain (Loss), before Tax	$ (30)	$ (8)	$ 2
Cash payments for income taxes, net of refunds	1,181	903	521
Cash payments for interest, net of capitalized interest	374	184	$ 111
Allowance for doubtful accounts receivable	$ 75	$ 78
Percentage of total inventory values using LIFO	12%	14%

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) PP&E - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment
Depreciation expense on property, plant and equipment	$ 691	$ 557	$ 514
Minimum | Buildings
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	20 years
Minimum | Machinery, equipment and fixtures
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum | Buildings
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	40 years
Maximum | Machinery, equipment and fixtures
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	15 years

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) Goodwill - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill
Goodwill	$ 2,499	$ 2,343	$ 1,287
Axles and Brakes Reporting Unit
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	31%
Percentage of estimated fair value exceeding carrying value	1,200%
Automated Transmission [CBU business]
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	22%
Percentage of estimated fair value exceeding carrying value	700%
Aggregated Emission Solution and Filtration Reporting Unit
Goodwill
Percentage of Goodwill Accounted by a Single or aggregated Reporting Unit	19%

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) Other Intangibles, Softare and R&D - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Research and Development
Research and development expenses, net of contract reimbursements	$ 1,400	$ 1,200	$ 1,100
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned	$ 81	$ 110	$ 104
Minimum | Other Intangible Assets
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	3 years
Minimum | Software
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	2 years
Maximum | Other Intangible Assets
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	25 years
Maximum | Software
Finite Lived Intangible Assets
Finite-Lived Intangible Asset, Useful Life	12 years

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) Related Party - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Net sales	$ 34,065	$ 28,074	$ 24,021
Trade and other	5,583	5,202
Accounts payable (principally trade)	4,260	4,252
Related Party
Related Party Transaction [Line Items]
Net sales	1,548	1,197	1,713
Related Party Transaction, Purchases from Related Party	2,628	1,838	$ 1,796
Trade and other	530	376
Accounts payable (principally trade)	$ 324	$ 292

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) Supplier Finance Program - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Supplier Finance Program [Line Items]
Supply Chain Financing, Program Maximum	$ 512
Supplier Finance Program, Obligation	199	$ 331
Supplier Finance Program, Obligation, Addition	1,141
Payments to Suppliers	(1,274)
Supplier Finance Program, Foreign translation adjustments and other	$ 1
Minimum
Supplier Finance Program [Line Items]
Supplier Finance Program, Payment Timing, Period	60 days
Maximum
Supplier Finance Program [Line Items]
Supplier Finance Program, Payment Timing, Period	90 days

SUMMARY OF SIGNIFICANT ACCOU_11

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 8) Government Assistance	12 Months Ended
	Dec. 31, 2023
Minimum
Government Assistance [Line Items]
Government Assistance, Transaction Duration	1 year
Maximum
Government Assistance [Line Items]
Government Assistance, Transaction Duration	6 years

SUMMARY OF SIGNIFICANT ACCOU_12

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 9) Accounting Pronouncements	12 Months Ended
	Dec. 31, 2023
Accounting Standards Update 2022-04
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 (FASB) 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 adopted 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 above for additional information.
Accounting Standards Update 2023-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description	In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," to enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC 280. The standard did not change the definition of a segment, the method for determining segments or the criteria for aggregating operating segments into reportable segments. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Retrospective adoption is required for all prior periods presented in the financial statements. We plan to adopt the standard beginning with our 2024 Form 10-K. The adoption is not expected to have a material impact to our financial statements or disclosures.
Accounting Standards Update 2023-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description	In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements in Income Tax Disclosures" to enhance the transparency and decision usefulness of income tax disclosures. This amendment requires public companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, under the amendment entities are required to disclose the amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as disaggregated by material individual jurisdictions. Finally, the amendment requires entities to disclose income from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations disaggregated by federal, state and foreign. The new rules are effective for annual periods beginning after December 15, 2024. We will adopt this standard on a prospective basis as allowed by the standard. The adoption of this standard is not expected to have a material impact on our Consolidated Financial Statements.

AGREEMENT IN PRINCIPLE (Details

AGREEMENT IN PRINCIPLE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Guarantee Obligations:
Loss Contingency, Loss in Period	$ 2,036
Agreement in Principle, current	1,938	$ 0
Non-deductible Tax Penalties
Guarantee Obligations:
Loss Contingency, Loss in Period	$ 1,732

REVENUE RECOGNITION LONG-TERM_3

REVENUE RECOGNITION LONG-TERM CONTRACTS AND DEFERRED AND UNBILLED REVENUE REVENUE RECOGNITION LONG-TERM CONTRATS AND DEFERRED AND UNBILLED REVENUE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 2,100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	2,100
Unbilled revenue	303	$ 257
Deferred revenue	2,186	1,848
Contract with Customer, Liability, Revenue Recognized	733	$ 639
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	1,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 1,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 1,100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 1,100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years

REVENUE RECOGNITION DISAGGREG_3

REVENUE RECOGNITION DISAGGREGATION OF REVENUES REVENUE RECOGNITION DISAGGREGATION OF REVENUES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 34,065	$ 28,074	$ 24,021
Axles and brakes (CBU business)
Disaggregation of Revenue [Line Items]
Net sales	4,822	1,879	0
Emission solutions (CBU business)
Disaggregation of Revenue [Line Items]
Net sales	3,425	3,086	3,142
Atmus - Filtration (CBU business)
Disaggregation of Revenue [Line Items]
Net sales	1,345	1,259	1,171
Engine Components [CBU business]
Disaggregation of Revenue [Line Items]
Net sales	1,119	946	1,019
Automated Transmission [CBU business]
Disaggregation of Revenue [Line Items]
Net sales	714	593	481
Software and electronics [CBU business]
Disaggregation of Revenue [Line Items]
Net sales	106	84	119
Heavy-duty truck (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	3,391	2,995	2,511
Medium-duty truck and bus (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	2,622	2,412	1,978
Light-duty automotive (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	1,748	1,704	1,845
On-highway (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	7,761	7,111	6,334
Off-highway (EBU market)
Disaggregation of Revenue [Line Items]
Net sales	1,113	1,088	1,255
Parts (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	4,052	3,809	3,136
Power Generation (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	2,496	1,767	1,754
Engine (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	1,987	1,770	1,493
Service (DBU product line)
Disaggregation of Revenue [Line Items]
Net sales	1,664	1,555	1,359
Power Generation (PSBU product line)
Disaggregation of Revenue [Line Items]
Net sales	1,698	1,658	1,481
Industrial (PSBU product line)
Disaggregation of Revenue [Line Items]
Net sales	970	843	820
Generator technologies (PSBU product lines)
Disaggregation of Revenue [Line Items]
Net sales	457	450	349
Components
Disaggregation of Revenue [Line Items]
Net sales	13,409	9,736	7,665
Engine
Disaggregation of Revenue [Line Items]
Net sales	11,684	10,945	9,954
Distribution
Disaggregation of Revenue [Line Items]
Net sales	10,249	8,929	7,772
Power Systems
Disaggregation of Revenue [Line Items]
Net sales	5,673	5,033	4,415
External Sales | Components
Disaggregation of Revenue [Line Items]
Net sales	11,531	7,847	5,932
External Sales | Engine
Disaggregation of Revenue [Line Items]
Net sales	8,874	8,199	7,589
External Sales | Distribution
Disaggregation of Revenue [Line Items]
Net sales	10,199	8,901	7,742
External Sales | Power Systems
Disaggregation of Revenue [Line Items]
Net sales	3,125	2,951	2,650
UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	19,302	15,833	12,489
UNITED STATES | Revision of Prior Period, Adjustment
Disaggregation of Revenue [Line Items]
Net sales		281
CHINA
Disaggregation of Revenue [Line Items]
Net sales	3,115	2,390	3,169
CHINA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	424	351	323
INDIA
Disaggregation of Revenue [Line Items]
Net sales	1,678	1,392	1,133
INDIA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	264	217	194
OTHER INTERNATIONAL
Disaggregation of Revenue [Line Items]
Net sales	9,970	8,459	7,230
NORTH AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	7,054	5,948	4,902
ASIA PACIFIC | Distribution
Disaggregation of Revenue [Line Items]
Net sales	1,091	1,011	901
EUROPE | Distribution
Disaggregation of Revenue [Line Items]
Net sales	848	914	962
AFRICA and MIDDLE EAST | Distribution
Disaggregation of Revenue [Line Items]
Net sales	294	250	278
LATIN AMERICA | Distribution
Disaggregation of Revenue [Line Items]
Net sales	$ 224	$ 210	$ 182

INVESTMENTS IN EQUITY INVESTE_3

INVESTMENTS IN EQUITY INVESTEES (Details 1) Investments in and Earnings from $ in Millions		12 Months Ended
	Jan. 01, 2024 USD ($)	Dec. 31, 2023 USD ($) hp l	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Equity, royalty and interest income from investees
Investments and advances to equity method investees		$ 1,800	$ 1,759
Investment account representing cumulative undistributed income in equity investees		936
Dividends from the unconsolidated equity investees		257	318	$ 336
Equity, royalty and interest income from investees		$ 483	349	506
Equity Method Investment, Other than Temporary Impairment			31
Minimum
Equity, royalty and interest income from investees
Ownership percentage		20%
Minimum | Scenario, Forecast
Equity, royalty and interest income from investees
Total Investment by All Partners	$ 2,000
Maximum
Equity, royalty and interest income from investees
Ownership percentage		50%
Maximum | Scenario, Forecast
Equity, royalty and interest income from investees
Total Investment by All Partners	$ 3,000
Royalty and interest income
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees		$ 144	125	82
Komatsu Manufacturing Alliances
Equity, royalty and interest income from investees
Investments and advances to equity method investees		$ 331	295
Komatsu Manufacturing Alliances | Minimum
Equity, royalty and interest income from investees
Ownership percentage		20%
Komatsu Manufacturing Alliances | Maximum
Equity, royalty and interest income from investees
Ownership percentage		50%
Beijing Foton Cummins Engine Company
Equity, royalty and interest income from investees
Ownership percentage		50%
Investments and advances to equity method investees		$ 194	189
Equity, royalty and interest income from investees		$ 47	37	112
Beijing Foton Cummins Engine Company (Light-Duty) | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		2.5
Beijing Foton Cummins Engine Company (Light-Duty) | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		4.5
Beijing Foton Cummins Engine Company (Heavy-Duty) | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		8.5
Beijing Foton Cummins Engine Company (Heavy-Duty) | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		14.5
Sisamex
Equity, royalty and interest income from investees
Ownership percentage		50%
Investments and advances to equity method investees		$ 149	144
Dongfeng Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Ownership percentage		50%
Investments and advances to equity method investees		$ 128	106
Equity, royalty and interest income from investees		$ 65	45	82
Dongfeng Cummins Engine Company Ltd | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		3.9
Power of mechanical engines (in horsepower) | hp		80
Dongfeng Cummins Engine Company Ltd | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		14.5
Power of mechanical engines (in horsepower) | hp		760
Automated Axles Limited
Equity, royalty and interest income from investees
Ownership percentage		36%
Investments and advances to equity method investees		$ 125	125
Chongqing Cummins Engine Company Ltd
Equity, royalty and interest income from investees
Ownership percentage		50%
Investments and advances to equity method investees		$ 110	118
Equity, royalty and interest income from investees		$ 36	32	39
Tata Cummins Ltd
Equity, royalty and interest income from investees
Ownership percentage		50%
Investments and advances to equity method investees		$ 89	92
Equity, royalty and interest income from investees		$ 29	27	18
Tata Cummins Ltd | Minimum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		3.8
Power of mechanical engines (in horsepower) | hp		75
Tata Cummins Ltd | Maximum
Equity, royalty and interest income from investees
Capacity of mechanical engines (in liters) | l		8.9
Power of mechanical engines (in horsepower) | hp		400
Cummins Scania X P I Manufacturing LLC
Equity, royalty and interest income from investees
Ownership percentage		50%
Investments and advances to equity method investees		$ 85	130
Freios Master
Equity, royalty and interest income from investees
Ownership percentage		49%
Investments and advances to equity method investees		$ 84	86
Other Distributors and Manufacturers
Equity, royalty and interest income from investees
Investments and advances to equity method investees		505	474
Manufacturing - All other manufacturers
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees		91	28	131
Komatsu Cummins Chile Ltda
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees		55	44	32
All other distributors
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees		16	11	10
Cummins' Share of Equity Earnings
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees		$ 339	224	$ 424
Joint venture with KAMAZ
Equity, royalty and interest income from investees
Equity Method Investment, Other than Temporary Impairment			28
Royalty charges
Equity, royalty and interest income from investees
Equity Method Investment, Other than Temporary Impairment			$ 3
Battery Joint Venture Commitment
Equity, royalty and interest income from investees
Ownership percentage		30%
Partners Investment Ownership Percentage		10%

INVESTMENTS IN EQUITY INVESTE_4

INVESTMENTS IN EQUITY INVESTEES (Details 2) Equity Investee Financial Summary - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Equity, royalty and interest income from investees
Net sales	$ 34,065	$ 28,074	$ 24,021
Gross Margin	8,249	6,719	5,695
Net income	840	2,183	2,164
Cummins share of net income	735	2,151	2,131
Equity, royalty and interest income from investees (Note 4)	483	349	506
Assets, Current	15,198	14,451
Liabilities, Current	12,903	11,421
Net assets	13,340	14,995
Cummins share of net assets	1,786	1,715
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Equity, royalty and interest income from investees
Net sales	9,998	7,501	8,934
Gross Margin	1,597	1,211	1,574
Net income	677	475	802
Cummins share of net income	339	224	424
Royalty and interest income	144	125	$ 82
Assets, Current	4,922	4,252
Assets, Noncurrent	2,021	1,935
Liabilities, Current	3,812	3,224
Liabilities, Noncurrent	432	399
Net assets	$ 2,699	$ 2,564

INCOME TAXES (Details 1) Inc. B

INCOME TAXES (Details 1) Inc. Before Taxes, Components of Tax Expense, Rate Recon., Effective Tax rate Discussion - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income before income taxes:
U.S. income	$ (541)	$ 1,336	$ 1,251
Foreign income	2,167	1,483	1,500
INCOME BEFORE INCOME TAXES	1,626	2,819	2,751
Current:
U.S. federal and state	611	425	261
Foreign	632	485	319
Total current	1,243	910	580
Deferred:
U.S. federal and state	(468)	(229)	(12)
Foreign	11	(45)	19
Total deferred	(457)	(274)	7
Income tax expense	$ 786	$ 636	$ 587
Reconciliation of the income tax provision
Statutory U.S. federal income tax rate	21%	21%	21%
State income tax, net of federal effect	(0.40%)	1.30%	1.10%
Differences in rates and taxability of foreign subsidiaries and joint ventures	11.90%	3.10%	0.10%
Research tax credits	(4.70%)	(1.80%)	(0.60%)
Foreign derived intangible income	(4.20%)	(2.00%)	(1.00%)
Agreement in Principle, Federal Impact Rate	22.40%	0%	0%
Agreement in Principle, State Impact Rate	2.10%	0%	0%
Other, net	0.20%	1%	0.70%
Effective Income Tax Rate Reconciliation, Percent	48.30%	22.60%	21.30%
Tax Adjustments, Settlements, and Unusual Provisions	$ 397		$ 9
Unfavorable discrete items for the Agreement in Principle Charges	398
Loss Contingency, Loss in Period	2,036
Unrecognized Tax Benefits, Period Increase (Decrease)	22
Other Tax Expense (Benefit)	3	$ (9)	(3)
Income tax provision to return adjustment	(21)	15
Share-based compensation tax (benefit)	(5)
Income Tax Withholding Tax Adjustments		(31)
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability		(29)	$ 12
Valuation allowance adjustments		(15)
Tax costs associated with internal restructuring		$ 69
Undistributed Earnings of Foreign Subsidiaries	$ 6,000

INCOME TAXES (Details 2) Carryf

INCOME TAXES (Details 2) Carryforward Deferred Tax Asset/Liability, BS Disclosure, Recon. of Unrecognized Tax Benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
U.S. and state carryforward benefits	$ 272	$ 272
Foreign carryforward benefits	609	527
Employee benefit plans	347	258
Warranty expenses	483	458
Lease liabilities	125	110
Capitalized research and development expenditures	591	238
Accrued expenses	253	174
Other	78	126
Gross deferred tax assets	2,758	2,163
Valuation allowance	(789)	(704)
Deferred Tax Assets, Net of Valuation Allowance	1,969	1,459
Deferred tax liabilities:
Property, plant and equipment	(367)	(369)
Unremitted income of foreign subsidiaries and joint ventures	(179)	(210)
Employee benefit plans	(278)	(311)
Lease assets	(123)	(108)
Deferred Tax Liabilities, Intangible Assets	(406)	(435)
Other	(64)	(50)
Deferred Tax Liabilities, Gross	1,417	1,483
Deferred Tax Assets, Net	552
Deferred Tax Liabilities, Net		(24)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	85
Balance Sheet Related Disclosures
Refundable income taxes	81	83
Deferred income taxes	1,082	625
Long-term refundable income taxes	27	14
Taxes Payable, Current	242	173
Taxes Payable, Non-Current	111	192
Deferred Tax Liabilities, Net	530	649
Reconciliation of unrecognized tax benefits
Beginning balance	283	89	$ 122
Unrecognized Tax Benefits, Increase Resulting from Acquisition	8	189	0
Additions to current year tax positions	21	17	11
Additions to prior years' tax positions	19	17	16
Reductions to prior years' tax positions	(1)	(1)	(28)
Reductions for tax positions due to settlements with taxing authorities	0	(28)	(32)
Ending balance	330	283	89
Unrecognized tax benefits that would impact effective tax rate	314	270	85
Unrecognized tax benefits, interest accrued	$ 33	$ 18	$ 15

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities
Debt Securities, Available-for-sale, Amortized Cost	$ 16	$ 2
Debt Securities, Available-for-sale, Unrealized Gain (Loss)	0	0
Debt Securities, Available-for-sale	16	2
Debt Securities, Trading, and Equity Securities, FV-NI, Cost	556	474
Marketable Securities, Unrealized Gain (Loss)	6	(2)
Marketable securities	562	472
Proceeds from Sale of Held-to-maturity Securities	1,075	750	$ 494
Proceeds from maturities of marketable securities	259	401	179
Proceeds from Sale and Maturity of Marketable Securities	1,334	1,151	$ 673
Debt mutual funds
Schedule of Available-for-sale Securities
Equity Securities, cost	272	238
Equity Securities, Unrealized Gain (Loss)	0	(5)
Equity Securities, Fair Value	272	233
Certificates of Deposit
Schedule of Available-for-sale Securities
Equity Securities, cost	246	209
Equity Securities, Unrealized Gain (Loss)	0	0
Equity Securities, Fair Value	246	209
Equity Mutual Funds
Schedule of Available-for-sale Securities
Equity Securities, cost	22	25
Equity Securities, Unrealized Gain (Loss)	6	3
Equity Securities, Fair Value	$ 28	$ 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	Dec. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished products	$ 2,770	$ 2,917
Work-in-process and raw materials	3,156	2,926
Inventories at FIFO cost	5,926	5,843
Excess of FIFO over LIFO	(249)	(240)
Total inventories	$ 5,677	$ 5,603

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment
Property, plant and equipment, gross	$ 11,674	$ 10,507
Accumulated depreciation	(5,425)	(4,986)
Property, plant and equipment, net	6,249	5,521
Land and buildings
Property, Plant and Equipment
Property, plant and equipment, gross	3,039	2,908
Machinery, equipment and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	7,245	6,598
Construction in process
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,390	$ 1,001

LEASES FOOTNOTE DISCLOSURE LE_3

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Details 1)	Dec. 31, 2023
Real Estate | Minimum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	2 years
Real Estate | Maximum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	50 years
Lessee, Operating Lease, Renewal Term	10 years
Equipment | Minimum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	2 years
Equipment | Maximum
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	3 years

LEASES FOOTNOTE DISCLOSURE LE_4

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Cost
Operating Lease, Cost	$ 165	$ 160	$ 172
Finance Lease, Right-of-Use Asset, Amortization	20	19	16
Finance Lease, Interest Expense	4	4	4
Short-term Lease, Cost	24	23	18
Variable Lease, Cost	14	12	11
Lease, Cost	227	218	221
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	501	492
Total leased assets	616	609
Current portion of operating lease liabilities	138	132
Operating lease liabilities, long-term	374	368
Total Lease Liabilities	623	613
Finance Lease, Right-of-Use Asset, Accumulated Amortization	77	78
Lessee, Lease, Supplemental Cash Flow Information
Operating cash flows from operating leases	148	151	159
Operating cash flows from finance leases	4	4	4
Financing cash flows from finance leases	35	16	14
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	153	148	160
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability	$ 12	$ 29	$ 13
Lessee, Lease, Other Information
Operating Lease, Weighted Average Remaining Lease Term	5 years 2 months 12 days	5 years 4 months 24 days
Finance Lease, Weighted Average Remaining Lease Term	8 years 7 months 6 days	7 years 10 months 24 days
Operating Lease, Weighted Average Discount Rate, Percent	4.20%	3.70%
Finance Lease, Weighted Average Discount Rate, Percent	5%	4.70%
Lessee, Lease, Financing
2024	$ 23
2025	19
2026	15
2027	13
2028	12
After 2028	56
Total minimum lease payments	138
Finance Lease, Liability, Undiscounted Excess Amount	(27)
Present value of net minimum lease payments	111	$ 113
Lessee, Lease, Operating
2024	155
2025	126
2026	92
2027	68
2028	45
After 2028	90
Total minimum lease payments	576
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(64)
Operating Lease, Liability	512
Other assets
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	501	492
Property, plant and equipment, net
Lessee, Lease, Description [Line Items]
Finance Lease, Right-of-Use Asset	115	117
Other accrued expenses
Lessee, Lease, Description [Line Items]
Current portion of operating lease liabilities	138	132
Current maturities of long-term debt
Lessee, Lease, Description [Line Items]
Finance Lease, Liability, Current	17	32
Other liabilities
Lessee, Lease, Description [Line Items]
Operating lease liabilities, long-term	374	368
Long-term debt
Lessee, Lease, Description [Line Items]
Finance Lease, Liability, noncurrent	$ 94	$ 81

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) Goodwill rollforward - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Changes in the carrying amount of goodwill
Balance at beginning of period	$ 2,343	$ 1,287
Acquisitions	144	1,072
Translation and other	12	(16)
Balance at end of period	2,499	2,343
Components
Changes in the carrying amount of goodwill
Balance at beginning of period	1,752	934
Acquisitions	122	835
Translation and other	10	(17)
Balance at end of period	1,884	1,752
Accelera
Changes in the carrying amount of goodwill
Balance at beginning of period	495	257
Acquisitions	0	237
Translation and other	1	1
Balance at end of period	496	495
Distribution
Changes in the carrying amount of goodwill
Balance at beginning of period	79	79
Acquisitions	4	0
Translation and other	0	0
Balance at end of period	83	79
Power Systems
Changes in the carrying amount of goodwill
Balance at beginning of period	11	11
Acquisitions	0	0
Translation and other	0	0
Balance at end of period	11	11
Engine
Changes in the carrying amount of goodwill
Balance at beginning of period	6	6
Acquisitions	18	0
Translation and other	1	0
Balance at end of period	$ 25	$ 6

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) Intangible Assets and Projected Amortization - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Finite Lived Intangible Assets
Intangible asset, Net	$ 2,519	$ 2,687
Amortization expense for software and other intangibles	324	223	$ 144
Projected amortization expense
2024	323
2025	299
2026	281
2027	260
2028	233
Software
Finite Lived Intangible Assets
Intangible Assets Gross (software and other intangibles)	622	679
Less: Accumulated amortization	(323)	(410)
Intangible asset, Net	299	269
Other Intangible Assets
Finite Lived Intangible Assets
Intangible Assets Gross (software and other intangibles)	2,886	2,858
Less: Accumulated amortization	(666)	(440)
Intangible asset, Net	$ 2,220	$ 2,418

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 1) -Obligations, Assets and Funded Status $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) country	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Amounts recognized in consolidated balance sheets
Pension assets	$ 1,197	$ 1,398
Liability, Defined Benefit Pension Plan, Noncurrent	(530)	(445)
UNITED STATES
Change in benefit obligation
Benefit obligation at the beginning of the year	3,171	3,012
Service cost	117	137	$ 139
Interest cost	168	101	79
Actuarial loss (gain)	172	(643)
Benefits paid directly by employer or from fund	(223)	(200)
Plan amendment	1	3
Assumption of Meritor's benefit obligation	0	786
Benefit obligation at the end of the year	3,381	3,171	3,012
Change in plan assets
Fair value of plan assets at the beginning of the year	3,828	3,548
Actual return on plan assets	221	(244)
Employer contributions	0	25
Benefits paid from Fund	(223)	(200)
Defined Benefit Plan, Plan Assets, Business Combination	0	699
Exchange rate changes	0	0
Fair value of plan assets at the end of the year	3,826	3,828	3,548
Funded status
Funded status at end of year	445	657
Amounts recognized in consolidated balance sheets
Pension assets	1,002	1,126
Accrued compensation, benefits and retirement costs	(27)	(24)
Liability, Defined Benefit Pension Plan, Noncurrent	(530)	(445)
Net amount recognized	445	657
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)	493	273
Prior service cost (credit)	8	8
Net amount recognized	501	281
UNITED STATES | Nonqualified Plan
Change in benefit obligation
Benefits paid directly by employer or from fund	(25)	(25)
UNITED KINGDOM
Change in benefit obligation
Benefit obligation at the beginning of the year	1,398	1,887
Service cost	17	30	33
Interest cost	70	39	30
Actuarial loss (gain)	47	(702)
Benefits paid directly by employer or from fund	(87)	(70)
Plan amendment	0	0
Assumption of Meritor's benefit obligation	0	418
Exchange rate changes	80	(204)
Benefit obligation at the end of the year	1,525	1,398	1,887
Change in plan assets
Fair value of plan assets at the beginning of the year	1,670	2,390
Actual return on plan assets	(51)	(960)
Employer contributions	90	3
Benefits paid from Fund	(87)	(70)
Defined Benefit Plan, Plan Assets, Business Combination	0	565
Exchange rate changes	98	(258)
Fair value of plan assets at the end of the year	1,720	1,670	2,390
Funded status
Funded status at end of year	195	272
Amounts recognized in consolidated balance sheets
Pension assets	195	272
Accrued compensation, benefits and retirement costs	0	0
Liability, Defined Benefit Pension Plan, Noncurrent	0	0
Net amount recognized	195	272
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)	606	402
Prior service cost (credit)	8	10
Net amount recognized	614	412
Other Pension Plan
Change in plan assets
Employer contributions	$ 16	12
Less Significant Defined Benefit or Other Postretirement Plans Applicable to Number of Countries | country	15
Maximum Percentage of Defined Benefit Plans Assets Included in Other Liabilities and Deferred Revenue	5%
Maximum Percentage of Defined Benefit Plans, Obligations Included in Other Liabilities and Deferred Revenue	6%
Other Postretirement Benefit Plan
Change in benefit obligation
Benefit obligation at the beginning of the year	$ 162	192
Interest cost	9	5	5
Plan participants' contributions	18	4
Actuarial loss (gain)	(2)	(25)
Benefits paid directly by employer or from fund	(37)	(36)
Assumption of Meritor's benefit obligation	0	22
Benefit obligation at the end of the year	$ 150	$ 162	$ 192
Change in plan assets
Less Significant Defined Benefit or Other Postretirement Plans Applicable to Number of Countries | country	5
Maximum Percentage of Defined Benefit Plans, Obligations Included in Other Liabilities and Deferred Revenue	16%	14%
Funded status
Funded status at end of year	$ (150)	$ (162)
Amounts recognized in consolidated balance sheets
Accrued compensation, benefits and retirement costs	(19)	(21)
Liability, Other Postretirement Defined Benefit Plan, Noncurrent	(131)	(141)
Net amount recognized	(150)	(162)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)	(44)	(44)
Prior service cost (credit)	(3)	(3)
Net amount recognized	$ (47)	$ (47)

PENSION AND OTHER POSTRETIREM_4

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 2) - Components of Net Periodic Pension Cost - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
UNITED STATES
Pension and other postretirement benefits
Defined Benefit Plan, Accumulated Benefit Obligation	$ 3,334	$ 3,138
Plans with accumulated benefit obligation in excess of plan assets:
ABO	1,067	1,044
Plans with projected benefit obligation in excess of plan assets:
PBO	1,116	1,078
Components of Net Periodic Benefit Cost
Service cost	117	137	$ 139
Interest cost	168	101	79
Expected return on plan assets	(277)	(229)	(199)
Amortization of prior service cost	2	1	1
Recognized net actuarial loss (gain)	8	23	47
Defined Benefit Plan and OPEB, Net Periodic Benefit Cost (Credit), Total	18	33	67
Changes in benefit obligations and plan assets recognized in other comprehensive income
Foreign currency translation adjustments	0	0
UNITED KINGDOM
Pension and other postretirement benefits
Defined Benefit Plan, Accumulated Benefit Obligation	1,504	1,376
Plans with accumulated benefit obligation in excess of plan assets:
ABO	0	0
Plans with projected benefit obligation in excess of plan assets:
PBO	0	0
Components of Net Periodic Benefit Cost
Service cost	17	30	33
Interest cost	70	39	30
Expected return on plan assets	(105)	(87)	(85)
Amortization of prior service cost	1	1	2
Recognized net actuarial loss (gain)	0	3	31
Defined Benefit Plan and OPEB, Net Periodic Benefit Cost (Credit), Total	(17)	(14)	11
Changes in benefit obligations and plan assets recognized in other comprehensive income
Foreign currency translation adjustments	98	(258)
Pension Plan
Changes in benefit obligations and plan assets recognized in other comprehensive income
Amortization of prior service cost	(3)	(2)	(3)
Recognized actuarial (loss) gain	(8)	(26)	(78)
Incurred prior service cost	1	3	0
Incurred actuarial loss (gain)	432	173	(368)
Foreign currency translation adjustments	0	0	5
Total recognized in other comprehensive loss (income)	422	148	(444)
Total recognized in net periodic pension cost and other comprehensive loss (income)	423	167	(366)
Other Postretirement Benefit Plan
Components of Net Periodic Benefit Cost
Interest cost	9	5	5
Recognized net actuarial loss (gain)	(2)	0	0
Defined Benefit Plan and OPEB, Net Periodic Benefit Cost (Credit), Total	7	5	5
Changes in benefit obligations and plan assets recognized in other comprehensive income
Recognized actuarial (loss) gain	2	0	0
Incurred actuarial loss (gain)	(2)	(25)	(8)
Total recognized in other comprehensive loss (income)	0	(25)	(8)
Total recognized in net periodic pension cost and other comprehensive loss (income)	$ 7	$ (20)	$ (3)

PENSION AND OTHER POSTRETIREM_5

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 3) - Assumptions and Plan Asset Targets		12 Months Ended
	Jan. 01, 2024 Rate	Dec. 31, 2023 Rate	Dec. 31, 2022 Rate	Dec. 31, 2021 Rate
UNITED STATES
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		5.15%	5.55%
Cash balance crediting rate		4.55%	4.56%
Compensation increase rate (as a percent)		5.34%	5.35%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		5.55%	3.31%	2.62%
Expected return on plan assets (as a percent)		7%	6.50%	6.25%
Compensation increase rate (as a percent)		5.35%	2.71%	2.72%
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		100%
Asset allocation covers exposure to changes in portion of discount rate (as a percent)		100%
UNITED STATES | U.S. equities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		8%
UNITED STATES | Non-U.S. Equity
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		3%
UNITED STATES | Global Equities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5%
UNITED STATES | Equity Securities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		16%
UNITED STATES | Real Assets
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5%
UNITED STATES | Private Markets
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5%
UNITED STATES | Opportunistic credit
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		3%
UNITED STATES | Fixed Income Funds
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		71%
UNITED KINGDOM
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		4.72%	4.99%
Cash balance crediting rate		0%	0%
Compensation increase rate (as a percent)		3.75%	3.75%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		4.99%	2.26%	1.50%
Expected return on plan assets (as a percent)		5%	4.01%	4%
Compensation increase rate (as a percent)		3.75%	3.75%	3.75%
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		100%
UNITED KINGDOM | Global Equities
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		1%
UNITED KINGDOM | Real Assets
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		8%
UNITED KINGDOM | Private Markets
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5%
UNITED KINGDOM | Fixed Income Funds
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		78%
Hedged Exposure to Interest Rates		79%
Hedged Exposure to Inflation		79%
UNITED KINGDOM | Credit
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		5%
UNITED KINGDOM | Diversified strategies
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		1%
UNITED KINGDOM | Cash
Target Allocations
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		2%
Other Postretirement Benefit Plan
Assumptions Used in Determining the Pension Benefit Obligation
Discount rate PBO (as a percent)		5.19%	5.59%
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Discount rate net periodic benefit cost (as a percent)		5.59%	2.93%	2.30%
Defined Benefit Plan, Assumed Health Care Cost Trend Rates
Annual rate of increase in the per capita cost of covered health care benefits		6.75%
Scenario, Forecast | UNITED STATES
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Expected return on plan assets (as a percent)	7.25%
Scenario, Forecast | UNITED KINGDOM
Assumptions Used in Determining the Net Periodic Pension Cost and OPEB
Expected return on plan assets (as a percent)	5%
Scenario, Forecast | Other Postretirement Benefit Plan
Defined Benefit Plan, Assumed Health Care Cost Trend Rates
Ultimate per capita trend rate for health care costs	5%

PENSION AND OTHER POSTRETIREM_6

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 4) - Fair Value of Plan Assets - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
UNITED STATES
Pension and other postretirement benefits
Fair value of plan assets	$ 3,826	$ 3,828	$ 3,548
Pending Trade Purchases, Sales	(16)
Accrued Investment Income Receivable	10	7
UNITED STATES | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	73	118
UNITED STATES | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	36	31
UNITED STATES | Government debt
Pension and other postretirement benefits
Fair value of plan assets	157	188
UNITED STATES | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	603	423
UNITED STATES | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	49	53
UNITED STATES | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	8	7
UNITED STATES | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	467	508
UNITED STATES | Diversified Strategies
Pension and other postretirement benefits
Fair value of plan assets		14
UNITED STATES | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	604	641
UNITED STATES | Fair Value, Inputs, Level 1
Pension and other postretirement benefits
Fair value of plan assets	576	681
UNITED STATES | Fair Value, Inputs, Level 1 | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	73	118
UNITED STATES | Fair Value, Inputs, Level 1 | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	36	31
UNITED STATES | Fair Value, Inputs, Level 1 | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	0	12
UNITED STATES | Fair Value, Inputs, Level 1 | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	0	7
UNITED STATES | Fair Value, Inputs, Level 1 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	467	499
UNITED STATES | Fair Value, Inputs, Level 1 | Diversified Strategies
Pension and other postretirement benefits
Fair value of plan assets		14
UNITED STATES | Significant other observable inputs Level 2
Pension and other postretirement benefits
Fair value of plan assets	817	661
UNITED STATES | Significant other observable inputs Level 2 | Government debt
Pension and other postretirement benefits
Fair value of plan assets	157	188
UNITED STATES | Significant other observable inputs Level 2 | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	603	423
UNITED STATES | Significant other observable inputs Level 2 | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	49	41
UNITED STATES | Significant other observable inputs Level 2 | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	8	0
UNITED STATES | Significant other observable inputs Level 2 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	0	9
UNITED STATES | Fair Value, Inputs, Level 3
Pension and other postretirement benefits
Fair value of plan assets	604	641	551
UNITED STATES | Fair Value, Inputs, Level 3 | Real Assets
Pension and other postretirement benefits
Fair value of plan assets	67	82	80
UNITED STATES | Fair Value, Inputs, Level 3 | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	604	641
UNITED STATES | Fair Value, Inputs, Level 1, 2 and 3
Pension and other postretirement benefits
Fair value of plan assets	1,997	1,983
UNITED STATES | Fair Value Measured at Net Asset Value Per Share
Pension and other postretirement benefits
Fair value of plan assets	1,835	1,838
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Government debt
Pension and other postretirement benefits
Fair value of plan assets	257	227
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	307	277
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Diversified Strategies
Pension and other postretirement benefits
Fair value of plan assets	0	18
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	915	938
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Global Equities
Pension and other postretirement benefits
Fair value of plan assets	222	224
UNITED STATES | Fair Value Measured at Net Asset Value Per Share | Real Assets
Pension and other postretirement benefits
Fair value of plan assets	134	154
UNITED KINGDOM
Pension and other postretirement benefits
Fair value of plan assets	1,720	1,670	2,390
Pending Trade Purchases, Sales	1	141
Accrued Investment Income Receivable	2	2
UNITED KINGDOM | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	12	13
UNITED KINGDOM | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	8	9
UNITED KINGDOM | Government debt
Pension and other postretirement benefits
Fair value of plan assets	232	222
UNITED KINGDOM | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	30	24
UNITED KINGDOM | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	95	80
UNITED KINGDOM | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	35	38
UNITED KINGDOM | Insurance
Pension and other postretirement benefits
Fair value of plan assets	436	428
UNITED KINGDOM | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	103	390
UNITED KINGDOM | Fair Value, Inputs, Level 1
Pension and other postretirement benefits
Fair value of plan assets	37	49
UNITED KINGDOM | Fair Value, Inputs, Level 1 | U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	12	13
UNITED KINGDOM | Fair Value, Inputs, Level 1 | Non-U.S. Equity
Pension and other postretirement benefits
Fair value of plan assets	8	9
UNITED KINGDOM | Fair Value, Inputs, Level 1 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	17	27
UNITED KINGDOM | Significant other observable inputs Level 2
Pension and other postretirement benefits
Fair value of plan assets	375	337
UNITED KINGDOM | Significant other observable inputs Level 2 | Government debt
Pension and other postretirement benefits
Fair value of plan assets	232	222
UNITED KINGDOM | Significant other observable inputs Level 2 | Domestic Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	30	24
UNITED KINGDOM | Significant other observable inputs Level 2 | Foreign Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	95	80
UNITED KINGDOM | Significant other observable inputs Level 2 | Net cash equivalents
Pension and other postretirement benefits
Fair value of plan assets	18	11
UNITED KINGDOM | Fair Value, Inputs, Level 3
Pension and other postretirement benefits
Fair value of plan assets	539	818	903
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Real Assets
Pension and other postretirement benefits
Fair value of plan assets	7	8	33
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Insurance
Pension and other postretirement benefits
Fair value of plan assets	436	428	$ 514
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Private markets and real assets (2)
Pension and other postretirement benefits
Fair value of plan assets	103	390
UNITED KINGDOM | Fair Value, Inputs, Level 1, 2 and 3
Pension and other postretirement benefits
Fair value of plan assets	951	1,204
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share
Pension and other postretirement benefits
Fair value of plan assets	766	323
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Government debt
Pension and other postretirement benefits
Fair value of plan assets	572	64
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Asset-backed Securities
Pension and other postretirement benefits
Fair value of plan assets	117	128
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Corporate Debt Securities
Pension and other postretirement benefits
Fair value of plan assets	71	77
UNITED KINGDOM | Fair Value Measured at Net Asset Value Per Share | Reinsurance
Pension and other postretirement benefits
Fair value of plan assets	$ 6	$ 54

PENSION AND OTHER POSTRETIREM_7

PENSION AND OTHER POSTRETIREMENT BENEFITS - (Details 5 ) - Level 3 Fair Value Reconciliation - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
UNITED STATES
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	$ 3,826	$ 3,828	$ 3,548
UNITED STATES | Fair Value, Inputs, Level 3
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	604	641	551
Unrealized gains (losses) on assets still held at the reporting date	(7)	25
Purchases, sales and settlements, net	(30)	(29)
Assumption of Meritor's plan assets		94
UNITED STATES | Fair Value, Inputs, Level 3 | Private Markets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	537	559	471
Unrealized gains (losses) on assets still held at the reporting date	6	6
Purchases, sales and settlements, net	(28)	(12)
Assumption of Meritor's plan assets		94
UNITED STATES | Fair Value, Inputs, Level 3 | Real Assets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	67	82	80
Unrealized gains (losses) on assets still held at the reporting date	(13)	19
Purchases, sales and settlements, net	(2)	(17)
Assumption of Meritor's plan assets		0
UNITED KINGDOM
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	1,720	1,670	2,390
UNITED KINGDOM | Insurance
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	436	428
UNITED KINGDOM | Fair Value, Inputs, Level 3
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	539	818	903
Unrealized gains (losses) on assets still held at the reporting date	(27)	(141)
Purchases, sales and settlements, net	(252)	(36)
Assumption of Meritor's plan assets		92
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Private Markets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	96	382	356
Unrealized gains (losses) on assets still held at the reporting date	(35)	39
Purchases, sales and settlements, net	(251)	(13)
Assumption of Meritor's plan assets		0
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Real Assets
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	7	8	33
Unrealized gains (losses) on assets still held at the reporting date	0	(2)
Purchases, sales and settlements, net	(1)	(23)
Assumption of Meritor's plan assets		0
UNITED KINGDOM | Fair Value, Inputs, Level 3 | Insurance
Summary of changes in the fair value of level 3 assets
Fair value of plan assets	436	428	$ 514
Unrealized gains (losses) on assets still held at the reporting date	8	(178)
Purchases, sales and settlements, net	$ 0	0
Assumption of Meritor's plan assets		$ 92

PENSION AND OTHER POSTRETIREM_8

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 6) - Defined Benefits Plan Tables - Scenario, Forecast $ in Millions	Jan. 01, 2024 USD ($)
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year	$ 67
Expected benefit payments
2024	360
2025	358
2026	361
2027	364
2028	370
2029 - 2033	1,872
Other Postretirement Benefit Plan
Expected benefit payments
2024	20
2025	18
2026	16
2027	16
2028	15
2029 - 2033	$ 58

PENSION AND OTHER POSTRETIREM_9

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details 7) - Contribution Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other Pension Plan
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Cost	$ 130	$ 110	$ 92

SUPPLEMENTAL BALANCE SHEET DA_2

SUPPLEMENTAL BALANCE SHEET DATA (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Deferred income taxes	$ 1,082	$ 625
Operating lease assets	501	492
Corporate owned life insurance	417	390
Other Assets, Miscellaneous, Noncurrent	543	633
Other assets	2,543	2,140
Agreement in Principle, current	1,938	0
Marketing accruals	399	316
Other taxes payable	296	224
Income taxes payable	242	173
Current portion of operating lease liabilities	138	132
Other Accrued Liabilities, Current	741	620
Other accrued expenses	3,754	1,465
Long-term portion of accrued product warranty	777	744
Pensions	530	445
Deferred income taxes	530	649
Operating lease liabilities	374	368
Accrued compensation	213	184
Other postretirement benefits	131	141
Mark-to-market valuation on interest rate derivatives	117	151
Long-term income taxes	111	192
Other liabilities	647	437
Other liabilities	$ 3,430	$ 3,311

DEBT (Details)

DEBT (Details) $ in Millions			12 Months Ended			24 Months Ended
	Aug. 17, 2022 USD ($)	Aug. 18, 2021 USD ($)	Dec. 31, 2023 USD ($) Rate	Dec. 31, 2022 USD ($) Rate	Dec. 31, 2021 USD ($)	Dec. 31, 2023 USD ($) Rate	Jun. 05, 2023 USD ($)	May 26, 2023 USD ($)	Jul. 13, 2022 USD ($)
Debt Instruments
Loans payable			$ 280	$ 210		$ 280
Weighted average interest rate (as a percent) | Rate			3.31%	4.02%		3.31%
Commercial paper			$ 1,496	$ 2,574		$ 1,496
Line of Credit Facility, Maximum Borrowing Capacity			$ 4,000			$ 4,000
Leverage ratio			0.65			0.65
Line of credit facility, remaining borrowing capacity			$ 2,500			$ 2,500
Other Long-term Debt			94	121		94
Unamortized discount			(72)	(64)		(72)
Liabilities, Fair Value Adjustment			(96)	(122)
Finance Lease, Liability			111	113		111
Total long-term debt			4,920	5,071		4,920
Less: Current maturities of long-term debt			118	573		118
Long-term debt			4,802	4,498		4,802
Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security			(1,136)	(1,550)	$ (73)
Principal payments required on long-term debt
2024			118			118
2025			1,797			1,797
2026			67			67
2027			614			614
2028			266			266
Total interest incurred			383	204	113
Interest capitalized			8	5	$ 2
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			4,000			4,000
Fair value
Fair value of total debt			6,375	7,400		6,375
Carrying value of total debt			$ 6,696	7,855		$ 6,696
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Principal payments required on long-term debt
Debt Instrument, Description of Variable Rate Basis			(SOFR)
Senior Notes, 3.65%, due 2023
Debt Instruments
Unsecured Debt				500
Debt instrument interest rate (as a percent) | Rate			3.65%			3.65%
Hydrogenics Promissory Note, Percent Due 2024-2025
Debt Instruments
Unsecured Debt			$ 160	0		$ 160
Debt instrument interest rate (as a percent) | Rate			0%			0%
Term Loan Due 2025
Debt Instruments
Unsecured Debt			$ 1,150	1,550		$ 1,150			$ 2,000
Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security			(400)			(850)
Senior Notes 0.75 Percent, Due 2025
Debt Instruments
Unsecured Debt			$ 500	500		$ 500
Debt instrument interest rate (as a percent) | Rate			0.75%			0.75%
Atmus Term loan, due 2027
Debt Instruments
Unsecured Debt			$ 600	0		$ 600		$ 600
Principal payments required on long-term debt
Debt Instrument, Unused Borrowing Capacity, Amount			600			600
Debentures, 6.75%, due 2027
Debt Instruments
Unsecured Debt			$ 58	58		$ 58
Debt instrument interest rate (as a percent) | Rate			6.75%			6.75%
Debentures, 7.125%, due 2028
Debt Instruments
Unsecured Debt			$ 250	250		$ 250
Debt instrument interest rate (as a percent) | Rate			7.125%			7.125%
Senior Notes 1.50 Percent, Due 2030
Debt Instruments
Unsecured Debt			$ 850	850		$ 850
Debt instrument interest rate (as a percent) | Rate			1.50%			1.50%
Senior Notes 4.875 Percent, Due 2043
Debt Instruments
Unsecured Debt			$ 500	500		$ 500
Debt instrument interest rate (as a percent) | Rate			4.875%			4.875%
Senior Notes 2.60 Percent, Due 2050
Debt Instruments
Unsecured Debt			$ 650	650		$ 650
Debt instrument interest rate (as a percent) | Rate			2.60%			2.60%
Debentures, 5.65%, due 2098 (effective interest rate 7.48%)
Debt Instruments
Unsecured Debt			$ 165	$ 165		$ 165
Effective interest rate (as a percent) | Rate			7.48%			7.48%
Debt instrument interest rate (as a percent) | Rate			5.65%			5.65%
Atmus revolving credit facility
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity			$ 400			$ 400
Principal payments required on long-term debt
Debt Instrument, Unused Borrowing Capacity, Amount			400			400
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 400			$ 400
Atmus Credit Facility, Due 2027
Debt Instruments
Unsecured Debt								$ 50
Atmus Facilities
Debt Instruments
Debt instrument interest rate (as a percent)			0.10%			0.10%
Principal payments required on long-term debt
Debt Instrument, Unused Borrowing Capacity, Amount			$ 1,000			$ 1,000
Atmus Facilities | Minimum
Debt Instruments
Percentage added to reference rate to compute the variable interest rate			1.125%
Short-term Debt [Line Items]
Percentage added to reference rate to compute the variable interest rate			1.125%
Atmus Facilities | Maximum
Debt Instruments
Percentage added to reference rate to compute the variable interest rate			1.75%
Short-term Debt [Line Items]
Percentage added to reference rate to compute the variable interest rate			1.75%
Commercial Paper
Debt Instruments
Weighted average interest rate (as a percent) | Rate			5.43%	4.27%		5.43%
Line of Credit Facility, Maximum Borrowing Capacity			$ 4,000			$ 4,000
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			4,000			4,000
International and other domestic short-term credit facilities
Debt Instruments
Line of credit facility, remaining borrowing capacity			$ 393			$ 393
1-year revolving credit agreement
Debt Instruments
Debt Instrument, Term	364 days
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500						$ 2,000
Short-term Debt [Line Items]
Debt Instrument, Term	364 days
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500						$ 2,000
Incremental Domestic Line of Credit
Debt Instruments
Line of Credit Facility, Maximum Borrowing Capacity	500
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 500
5-year revolving credit agreement
Debt Instruments
Debt Instrument, Term		5 years
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases		$ 300
Percentage added to reference rate to compute the variable interest rate			0.85%
Short-term Debt [Line Items]
Debt Instrument, Term		5 years
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases		$ 300
Percentage added to reference rate to compute the variable interest rate			0.85%
Atmus Facilities
Debt Instruments
Leverage ratio			4			4
Principal payments required on long-term debt
Interest Coverage Ratio				3

PRODUCT WARRANTY LIABILITY (Det

PRODUCT WARRANTY LIABILITY (Details 1) Warranty Liability Reconciliation, Warranty Related to Deferred Revenues - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Product Warranty Liability:
Balance, beginning of year	$ 2,477	$ 2,425	$ 2,307
Provision for warranties issued	602	515	503
Deferred revenue on extended warranty contracts sold	350	287	288
Provision for product campaigns issued	28	141	346
Payments made during period	(705)	(596)	(530)
Amortization of deferred revenue on extended warranty contracts	(300)	(298)	(260)
Changes in estimates for pre-existing warranties	37	(128)	(228)
Acquisitions	0	147	0
Foreign currency translation adjustments and other	8	(16)	(1)
Balance, end of period	2,497	2,477	2,425
Product Warranty Liability [Line Items]
Product Liability Contingency, Third Party Recovery	36	39	$ 170
Current portion of deferred revenue	1,220	1,004
Long-term portion of deferred revenue	966	844
Deferred revenue related to extended coverage	1,053	1,007
Current portion of accrued product warranty	667	726
Long-term portion of accrued product warranty	777	744
Standard Product Warranty Accrual	1,444	1,470
Current portion of deferred revenue
Product Warranty Liability [Line Items]
Current portion of deferred revenue	279	290
Deferred revenue
Product Warranty Liability [Line Items]
Long-term portion of deferred revenue	774	717
Current portion of accrued product warranty
Product Warranty Liability [Line Items]
Current portion of accrued product warranty	667	726
Other Liabilities
Product Warranty Liability [Line Items]
Long-term portion of accrued product warranty	$ 777	$ 744

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details1) Guarantees and Commitments - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Guarantee Obligations:
Loss Contingency, Loss in Period	$ 2,036
Provision for product campaigns issued		$ 59
Guarantee obligations, maximum potential loss	41
Cancellation Obligation - Unrecorded Unconditional Purchase Obligation	393
Purchase Obligation	104
Guarantee obligations, current carrying value	$ 178
Maximum
Guarantee Obligations:
Guarantor Obligations, Term	two years

SHAREHOLDERS' EQUITY (Details 1

SHAREHOLDERS' EQUITY (Details 1 ) Pref. Stock, Common Stock, Quarterly Dividends, Emp. Ben. Trust - USD ($) $ / shares in Units, shares in Millions, $ in Millions				3 Months Ended												12 Months Ended
	Jul. 11, 2023	Jul. 12, 2022	Jul. 13, 2021	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Oct. 03, 2021	Jul. 04, 2021	Apr. 04, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Dividends Paid
Dividend payments on common stock (in dollars)																$ 921	$ 855	$ 809
Cash dividend (in dollars per share)				$ 1.68	$ 1.68	$ 1.57	$ 1.57	$ 1.57	$ 1.57	$ 1.45	$ 1.45	$ 1.45	$ 1.45	$ 1.35	$ 1.35	$ 6.50	$ 6.04	$ 5.60
Preferred Stock
Class of Stock
Preferred Stock, Shares Authorized				1,000,000												1,000,000
Preference Stock
Class of Stock
Preferred Stock, Shares Authorized				1,000,000												1,000,000
Common Stock
Class of Stock
Balance at beginning of period (in shares)							222.5				222.5				222.4	222.5	222.5	222.4
Stock Issued During Period, Shares																0	0	0.1
Balance at the end of the period (in shares)				222.5				222.5				222.5				222.5	222.5	222.5
Dividends Paid
Percentage increase in cash dividend per common share	7%	8.30%	7.40%
Treasury Stock, Common
Class of Stock
Balance at beginning of period (in shares)							81.2				80				74.8	81.2	80	74.8
Shares acquired (in shares)																	1.9	5.7
Stock Issued During Period, Shares																0.5	0.7	0.5
Balance at the end of the period (in shares)				80.7				81.2				80				80.7	81.2	80

SHAREHOLDERS' EQUITY (Details 2

SHAREHOLDERS' EQUITY (Details 2) Treasury Stock - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Share repurchase programs
Repurchases of common stock	$ 0	$ 374	$ 1,402
ShareRepurchaseProgram2019
Share repurchase programs
Remaining Authorized Capacity	$ 218
Treasury Stock, Common | ShareRepurchaseProgram2021
Share repurchase programs
Treasury Stock Repurchase Authorization Value			$ 2,000
Treasury Stock, Common | ShareRepurchaseProgram2019
Share repurchase programs
Treasury Stock Repurchase Authorization Value				$ 2,000

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	$ (1,890)
Before tax amount	(413)	$ (377)	$ 453
Tax benefit (expense)	105	(7)	(114)
After tax amount	(308)	(384)	339
Amounts reclassified from accumulated other comprehensive income (1)	(11)	25	67
Net current period other comprehensive (loss) income	(319)	(359)	406
Balance at the end of period	(2,206)	(1,890)
Total attributable to Cummins Inc.
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	(1,890)	(1,571)	(1,982)
Before tax amount	(410)	(337)	458
Tax benefit (expense)	105	(7)	(114)
After tax amount	(305)	(344)	344
Amounts reclassified from accumulated other comprehensive income (1)	(11)	25	67
Net current period other comprehensive (loss) income	(316)	(319)	411
Balance at the end of period	(2,206)	(1,890)	(1,571)
Change in pensions and other postretirement defined benefit plans
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	(427)	(346)	(735)
Before tax amount	(541)	(123)	425
Tax benefit (expense)	113	19	(103)
After tax amount	(428)	(104)	322
Amounts reclassified from accumulated other comprehensive income (1)	7	23	67
Net current period other comprehensive (loss) income	(421)	(81)	389
Balance at the end of period	(848)	(427)	(346)
Foreign currency translation adjustment
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	(1,552)	(1,208)	(1,204)
Before tax amount	96	(350)	(5)
Tax benefit (expense)	(1)	6	1
After tax amount	95	(344)	(4)
Amounts reclassified from accumulated other comprehensive income (1)	0	0	0
Net current period other comprehensive (loss) income	95	(344)	(4)
Balance at the end of period	(1,457)	(1,552)	(1,208)
Unrealized gain (loss) on derivatives
Changes in accumulated other comprehensive income (loss) by component:
Balance at the beginning of period	89	(17)	(43)
Before tax amount	35	136	38
Tax benefit (expense)	(7)	(32)	(12)
After tax amount	28	104	26
Amounts reclassified from accumulated other comprehensive income (1)	(18)	2	0
Net current period other comprehensive (loss) income	10	106	26
Balance at the end of period	99	89	(17)
Noncontrolling interests
Changes in accumulated other comprehensive income (loss) by component:
Before tax amount	(3)	(40)	(5)
Tax benefit (expense)	0	0	0
After tax amount	(3)	(40)	(5)
Amounts reclassified from accumulated other comprehensive income (1)	0	0	0
Net current period other comprehensive (loss) income	$ (3)	$ (40)	$ (5)

NONCONTROLLING INTERESTS (Detai

NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	$ 1,054	$ 992
Eaton Automated Transmission Technologies
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	534	525
Cummins India Ltd.
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	388	342
Other
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest	$ 132	$ 125

STOCK INCENTIVE AND STOCK OPT_3

STOCK INCENTIVE AND STOCK OPTION PLANS (Details) Plan Summaries - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	8,500,000
Stock options' expiration from the date of grant	10 years
Sale of Stock, Number of Shares Issued in Transaction	100
Stock options granted for every even block of 100 KESIP shares purchased by the employee	50
Compensation expense (net of estimated forfeitures)	$ 79	$ 33	$ 36
Excess tax benefit / (deficiency) associated with share-based plans	7	$ 8	$ 9
Total unrecognized compensation expense (net of estimated forfeitures)	$ 95
Weighted-average maximum period of recognition of total unrecognized compensation expense related to nonvested awards	2 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Target award based on the actual performance (as a percent)	0%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Target award based on the actual performance (as a percent)	200%
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years

STOCK INCENTIVE AND STOCK OPT_4

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 2) Share Based Activity - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Stock option plan activity
Balance, at the beginning of the period (in shares)	2,145,963	2,743,098	3,175,530
Granted (in shares)	17,500	18,900	16,550
Exercised (in shares)	(345,250)	(586,990)	(400,154)
Forfeited (in shares)	(3,793)	(29,045)	(48,828)
Balance, at the end of the period (in shares)	1,814,420	2,145,963	2,743,098
Weighted average exercise price activity
Weighted-average Exercise Price at the beginning of the period (in dollars per share)	$ 145.57	$ 143.51	$ 142.63
Weighted-average Exercise Price Granted (in dollars per share)	225.39	207.79	232.44
Weighted-average Exercise Price Exercised (in dollars per share)	142.69	137.83	138.93
Weighted-average Exercise Price Forfeited (in dollars per share)	144.16	148.08	153.72
Weighted-average Exercise Price at the end of the period (in dollars per share)	$ 146.89	$ 145.57	$ 143.51
Weighted-average remaining contractual life of options outstanding	4 years 2 months 12 days
Aggregate intrinsic value of options outstanding	$ 169
Exercisable (in shares)	1,814,420	1,655,298	1,629,588
Weighted-average Exercise Price Exercisable (in dollars per share)	$ 146.89	$ 146.37	$ 136.74
Weighted-average remaining contractual life of options exercisable	4 years 2 months 12 days	4 years 7 months 6 days	4 years 4 months 24 days
Aggregate intrinsic value of options exercisable	$ 169	$ 159	$ 133
Weighted average grant date fair value of options granted (in dollars per share)	$ 57.01	$ 45.74	$ 46.03
Total intrinsic value of options exercised	$ 35	$ 53	$ 41

STOCK INCENTIVE AND STOCK OPT_5

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 3) Grant Date Fair Value - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Black-Scholes option pricing model assumptions
Expected life	6 years	6 years	6 years
Risk-free interest rate	3.91%	2.32%	1.15%
Expected volatility	28.73%	28.40%	28.68%
Dividend yield	2.81%	2.85%	2.95%
Performance Shares
Share-based compensation plan, other than stock options, activity
Nonvested at the beginning of the period (in shares)	485,299	440,149	376,954
Granted (in shares)	170,205	230,535	217,684
Vested (in shares)	(99,425)	(122,188)	(131,744)
Forfeited (in shares)	(68,566)	(63,197)	(22,745)
Nonvested at the end of the period (in shares)	487,513	485,299	440,149
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Weighted-average Fair Value, Nonvested at the beginning of the period (in dollars per share)	$ 193.17	$ 183.72	$ 140.85
Granted (in dollars per share)	222.86	184.92	234.22
Vested (in dollars per share)	126.38	148.99	146.55
Forfeited (in dollars per share)	199.69	182.68	171.91
Weighted-average Nonvested, Outstanding at the end of the period (in dollars per share)	$ 216.24	$ 193.17	$ 183.72
Total fair value of equity instruments other than options vested in period (in dollars)	$ 25	$ 24	$ 35
Restricted Shares
Share-based compensation plan, other than stock options, activity
Nonvested at the beginning of the period (in shares)	236,413	29,928	3,704
Granted (in shares)	176,128	215,260	26,224
Vested (in shares)	(74,270)	(5,513)	0
Forfeited (in shares)	(27,931)	(3,262)	0
Nonvested at the end of the period (in shares)	310,340	236,413	29,928
Share-based compensation plan, other than stock options, weighted average grant date fair value activity
Weighted-average Fair Value, Nonvested at the beginning of the period (in dollars per share)	$ 213.66	$ 252.99	$ 165.04
Granted (in dollars per share)	223.92	209.08	265.41
Vested (in dollars per share)	215.38	249.79	0
Forfeited (in dollars per share)	217.01	211.37	0
Weighted-average Nonvested, Outstanding at the end of the period (in dollars per share)	$ 218.77	$ 213.66	$ 252.99
Total fair value of equity instruments other than options vested in period (in dollars)	$ 17	$ 1	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Cummins share of net income	$ 735	$ 2,151	$ 2,131
Basic (in dollars per share)	$ 5.19	$ 15.20	$ 14.74
Diluted (in dollars per share)	$ 5.15	$ 15.12	$ 14.61
Weighted-average common shares outstanding:
Basic (in shares)	141,700,000	141,500,000	144,600,000
Dilutive effect of stock compensation awards (in shares)	1,000,000	800,000	1,300,000
Diluted (in shares)	142,700,000	142,300,000	145,900,000
Options excluded (in shares)	10,587	20,595	6,463

DERIVATIVES (Details)

DERIVATIVES (Details) - USD ($) $ in Millions	12 Months Ended			24 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Derivative, Average Fixed Interest Rate	5.72%			5.72%
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge		$ 7
Gain (Loss) on Swaps	$ 31	(148)	$ (3)
Gain/(Loss) on Borrowings	(32)	145	$ 2
Derivative Assets (Liabilities), at Fair Value, Net	4	52		$ 4
Derivative, Net Liability Position, Aggregate Fair Value	148	100		148
Designated as Hedging Instrument
Derivative [Line Items]
Derivative, Notional Amount	2,997	3,051		2,997
Derivative Asset	14	98		14
Derivative Liability	160	170		160
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative, Notional Amount	3,610	2,900		3,610
Derivative Asset	16	27		16
Derivative Liability	14	3		14
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument
Derivative [Line Items]
Derivative Asset	14	18		14
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative Asset	16	27		16
Other Noncurrent Assets | Designated as Hedging Instrument
Derivative [Line Items]
Derivative Asset	0	80		0
Other Noncurrent Assets | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative Asset	0	0		0
Accrued Liabilities | Designated as Hedging Instrument
Derivative [Line Items]
Derivative Liability	43	19		43
Accrued Liabilities | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative Liability	14	3		14
Other liabilities | Designated as Hedging Instrument
Derivative [Line Items]
Derivative Liability	117	151		117
Other liabilities | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative Liability	$ 0	$ 0		0
Sales
Derivative [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Net sales	Net sales	Net sales
Cost of Sales
Derivative [Line Items]
Derivative 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
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (3)	$ 2	$ 0
Other Income
Derivative [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(21)	(5)	45
Foreign Exchange Forward
Derivative [Line Items]
Derivative, Notional Amount	$ 4,500	$ 3,600		4,500
Foreign Exchange Forward | Foreign currencies | Geographic Concentration Risk
Derivative [Line Items]
Concentration Risk, Percentage	85%	88%
Net Investment Hedging
Derivative [Line Items]
Derivative, Notional Amount	$ 808			808
Gain (Loss)  Recognized in AOCL	(30)	$ (22)
Gain (Loss) Reclassified from AOCL into Earnings	0	0
Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount	500			500
Gain (Loss)  Recognized in AOCL	(4)
Gain (Loss) Reclassified from AOCL into Earnings	0
Derivative, Notional Amount Settled	100
Interest Rate Lock
Derivative [Line Items]
Derivative, Notional Amount			500		$ 150	$ 350
Gain (Loss)  Recognized in AOCL	14	112	19
Gain (Loss) Reclassified from AOCL into Earnings	2	0	$ 0
Derivative, Notional Amount Settled	350	150
Derivative, Cash Received on Hedge	101	49		150
Senior Notes 0.75 Percent, Due 2025
Derivative [Line Items]
Unsecured Debt	$ 500	500		$ 500
Debt instrument interest rate (as a percent)	0.75%			0.75%
Senior Notes 0.75 Percent, Due 2025 | London Interbank Offered Rate
Derivative [Line Items]
Debt Instrument, Description of Variable Rate Basis	LIBOR
Senior Notes 1.50 Percent, Due 2030
Derivative [Line Items]
Unsecured Debt	$ 850	$ 850		$ 850
Debt instrument interest rate (as a percent)	1.50%			1.50%
Senior Notes 1.50 Percent, Due 2030 | Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount	$ 765			$ 765
Senior Notes 1.50 Percent, Due 2030 | London Interbank Offered Rate
Derivative [Line Items]
Debt Instrument, Description of Variable Rate Basis	LIBOR

RUSSIAN OPERATIONS (Details)

RUSSIAN OPERATIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Restructuring and Related Activities [Abstract]
Inventory Write-down		$ 17
Accounts Receivable, Allowance for Credit Loss, Writeoff		41
Equity Method Investment, Other than Temporary Impairment		31
Other Restructuring Costs		22
Russian suspension costs	$ 0	$ 111	$ 0

FORMATION OF ATMUS AND IPO (Det

FORMATION OF ATMUS AND IPO (Details) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	May 30, 2023	May 23, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	May 26, 2023
Noncash or Part Noncash Divestitures [Line Items]
Proceeds from Issuance of Commercial Paper		$ 350
Sale of Stock, Number of Shares Issued in Transaction			100
Impact on equity of sale of noncontrolling interest in subsidiary			$ 282
Less: Net income attributable to noncontrolling interests			105	$ 32	$ 33
Additional paid-in Capital
Noncash or Part Noncash Divestitures [Line Items]
Impact on equity of sale of noncontrolling interest in subsidiary	$ 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	16,000,000
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			166
Less: Net income attributable to noncontrolling interests			$ 17

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Millions									3 Months Ended		12 Months Ended
	Oct. 31, 2023	Oct. 02, 2023	Jun. 29, 2023	Apr. 03, 2023	Nov. 30, 2022	Aug. 03, 2022	Apr. 08, 2022	Feb. 07, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jul. 31, 2023
Business Acquisition [Line Items]
Goodwill											$ 2,499	$ 2,343	$ 1,287
Accounts payable (principally trade)											4,260	4,252
Redeemable Noncontrolling Interest, Equity, Carrying Amount			$ 0								0	258
Investments and advances related to equity method investees (Note 4)											1,800	1,759
Amortization expense for software and other intangibles											324	223	144
Net sales											34,065	28,074	24,021
Net assets											13,340	14,995
Hydrogenics Promissory Note, Percent Due 2024-2025
Business Acquisition [Line Items]
Unsecured Debt											160	0
Components
Business Acquisition [Line Items]
Goodwill											1,884	1,752	934
Investments and advances related to equity method investees (Note 4)											582	617	254
Net sales											13,409	9,736	7,665
Net assets											6,965	7,306	2,938
Accelera
Business Acquisition [Line Items]
Goodwill											496	495	257
Investments and advances related to equity method investees (Note 4)											25	33	20
Net sales											354	198	116
Net assets											1,159	1,158	602
Cummins France
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100%
Cash paid for business acquisition	$ 25
Payments to Acquire Businesses Liabilities Paid	5
Total purchase consideration	30
Goodwill	4
Intangibles Assets	$ 0
Faurecia
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100%
Cash paid for business acquisition		$ 210
Payments to Acquire Businesses Liabilities Paid		0
Total purchase consideration		210
Goodwill		90
Intangibles Assets		0
Accounts payable (principally trade)		30
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents		8
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables		52
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		32
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		93
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Current and Long-term Assets		46
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable		(62)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current and Long-term Liabilities, Other		$ (49)
Hydrogenics Corporation
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			19%
Cash paid for business acquisition			$ 287
Payments to Acquire Businesses Liabilities Paid			48
Other Commitment			335
Goodwill			0
Intangibles Assets			$ 0
Loans Payable														$ 175
Debt, net of unamortized debt discount											148
Teskid Hierro de Mexico
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				100%
Cash paid for business acquisition				$ 143
Payments to Acquire Businesses Liabilities Paid				0
Total purchase consideration				143
Goodwill				18
Intangibles Assets				0
Accounts payable (principally trade)				32
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents				16
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				$ 90
Goodwill, Purchase Accounting Adjustments									$ 7
Siemens Commercial Vehicles
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired					100%
Cash paid for business acquisition					$ 187
Payments to Acquire Businesses Liabilities Paid					0
Total purchase consideration					187
Goodwill					70
Intangibles Assets					$ 106
Meritor Inc.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired						100%
Cash paid for business acquisition						$ 2,613
Payments to Acquire Businesses Liabilities Paid						248
Total purchase consideration						2,861
Goodwill						926
Intangibles Assets						1,610
Unsecured Debt						2,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents						98
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables						640
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory						750
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment						841
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Current and Long-term Assets						322
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable						(711)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current and Long-term Liabilities, Other						$ (665)
Goodwill, Purchase Accounting Adjustments											32
Business Acquisition, Share Price						$ 36.50
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities						$ (277)
Repayments of Debt										$ 900
Investments and advances related to equity method investees (Note 4)						382
Defined Benefit Plan, Plan Assets, Business Combination						147
Liability, Defined Benefit Plan						(129)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-Term Debt						(962)
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value						(111)
Contingent Liability, Purchase Accounting Adjustments											$ 70
Amortization expense for software and other intangibles						142
Net sales												1,900
Income (Loss) from Subsidiaries, Net of Tax												(43)
Business Acquisition, Transaction Costs												30
Business Acquisition, Pro Forma Revenue												30,841	27,949
Business Acquisition, Pro Forma Net Income (Loss)												2,196	$ 2,058
Meritor Inc. | Rounded Purchase Price Member
Business Acquisition [Line Items]
Total purchase consideration						2,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-Term Debt						(1,000)
Meritor Inc. | Components
Business Acquisition [Line Items]
Goodwill						759
Net assets						3,800
Meritor Inc. | Accelera
Business Acquisition [Line Items]
Goodwill						167
Net assets						300
Meritor Inc. | Customer Relationships
Business Acquisition [Line Items]
Intangibles Assets						$ 960
Finite-Lived Intangible Asset, Useful Life						12 years
Meritor Inc. | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangibles Assets						$ 345
Finite-Lived Intangible Asset, Useful Life						8 years
Meritor Inc. | Trade Names
Business Acquisition [Line Items]
Intangibles Assets						$ 305
Finite-Lived Intangible Asset, Useful Life						21 years
Jacobs Vehicle Systems
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired							100%
Cash paid for business acquisition							$ 345
Payments to Acquire Businesses Liabilities Paid							0
Total purchase consideration							345
Goodwill							108
Intangibles Assets							164
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents							18
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables							24
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory							15
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment							70
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable							(21)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities							(27)
Amortization expense for software and other intangibles							18
Net sales												118
Income (Loss) from Subsidiaries, Net of Tax												$ (1)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net							(6)
Business Acquisition, Goodwill, Expected Tax Deductible Amount							9
Jacobs Vehicle Systems | Customer Relationships
Business Acquisition [Line Items]
Intangibles Assets							$ 108
Finite-Lived Intangible Asset, Useful Life							9 years
Jacobs Vehicle Systems | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangibles Assets							$ 31
Finite-Lived Intangible Asset, Useful Life							7 years
Jacobs Vehicle Systems | Trade Names
Business Acquisition [Line Items]
Intangibles Assets							$ 25
Finite-Lived Intangible Asset, Useful Life							14 years
Westport Fuel System Inc.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired								50%
Cash paid for business acquisition								$ 42
Payments to Acquire Businesses Liabilities Paid								0
Total purchase consideration								42
Goodwill								0
Intangibles Assets								$ 20

OPERATING SEGMENTS FINANCIAL IN

OPERATING SEGMENTS FINANCIAL INFORMATION (Details) Reportable Operating Segments, EBITDA Reconciliation to GAAP - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating results:
Net sales	$ 34,065	$ 28,074	$ 24,021
Research, development and engineering expenses	1,500	1,278	1,090
Equity, royalty and interest income from investees	483	349	506
Russian suspension costs	0	111	0
Interest Expense	375	199	111
Depreciation and Amortization	1,016	781	659
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	1,626	2,819	2,751
Amortization of Debt Discount	8	3	3
Loss Contingency, Loss in Period	2,036
Statement of Financial Position [Abstract]
Net assets	13,340	14,995
Investments and advances to equity method investees	1,800	1,759
Capital expenditures	1,213	916	734
Equity Method Investment, Other than Temporary Impairment		31
Royalty charges
Statement of Financial Position [Abstract]
Equity Method Investment, Other than Temporary Impairment		3
Joint venture with KAMAZ
Statement of Financial Position [Abstract]
Equity Method Investment, Other than Temporary Impairment		28
Components
Operating results:
Net sales	13,409	9,736	7,665
Research, development and engineering expenses	387	309	307
Equity, royalty and interest income from investees	97	71	50
Interest income	31	12	5
Russian suspension costs		5
Segment EBITDA	1,840	1,346	1,180
Depreciation and Amortization	491	304	183
Atmus Separation costs	78	28
Meritor acquisition and integration costs		83
Statement of Financial Position [Abstract]
Net assets	6,965	7,306	2,938
Investments and advances to equity method investees	582	617	254
Capital expenditures	373	264	184
Engine
Operating results:
Net sales	11,684	10,945	9,954
Research, development and engineering expenses	614	506	399
Equity, royalty and interest income from investees	251	160	335
Interest income	19	14	8
Russian suspension costs		33
Segment EBITDA	1,630	1,535	1,406
Depreciation and Amortization	225	205	205
Statement of Financial Position [Abstract]
Net assets	930	1,451	1,554
Investments and advances to equity method investees	660	617	771
Capital expenditures	538	368	341
Distribution
Operating results:
Net sales	10,249	8,929	7,772
Research, development and engineering expenses	57	52	48
Equity, royalty and interest income from investees	97	77	63
Interest income	34	16	7
Russian suspension costs		54
Segment EBITDA	1,209	888	731
Depreciation and Amortization	115	114	116
Statement of Financial Position [Abstract]
Net assets	2,348	2,698	2,294
Investments and advances to equity method investees	396	352	329
Capital expenditures	103	114	92
Power Systems
Operating results:
Net sales	5,673	5,033	4,415
Research, development and engineering expenses	237	240	234
Equity, royalty and interest income from investees	53	43	56
Interest income	9	7	5
Russian suspension costs		19
Segment EBITDA	836	596	496
Depreciation and Amortization	122	120	131
Statement of Financial Position [Abstract]
Net assets	1,938	2,382	2,251
Investments and advances to equity method investees	132	138	164
Capital expenditures	115	96	80
Accelera
Operating results:
Net sales	354	198	116
Research, development and engineering expenses	203	171	102
Equity, royalty and interest income from investees	(15)	(2)	2
Interest income	2	0	0
Russian suspension costs		0
Segment EBITDA	(443)	(334)	(218)
Depreciation and Amortization	63	38	24
Statement of Financial Position [Abstract]
Net assets	1,159	1,158	602
Investments and advances to equity method investees	25	33	20
Capital expenditures	84	74	37
Total Segment
Operating results:
Net sales	41,369	34,841	29,922
Research, development and engineering expenses	1,498	1,278	1,090
Equity, royalty and interest income from investees	483	349	506
Interest income	95	49	25
Russian suspension costs		111
Segment EBITDA	5,072	4,031	3,595
Depreciation and Amortization	1,016	781	659
Statement of Financial Position [Abstract]
Net assets	13,340	14,995	9,639
Investments and advances to equity method investees	1,795	1,757	1,538
Capital expenditures	1,213	916	734
Corporate and Other
Operating results:
Segment EBITDA	(2,055)	(232)	(74)
Atmus Separation costs	22	53
Loss Contingency, Loss in Period	2,000
Restructuring actions	21
External Sales | Components
Operating results:
Net sales	11,531	7,847	5,932
External Sales | Engine
Operating results:
Net sales	8,874	8,199	7,589
External Sales | Distribution
Operating results:
Net sales	10,199	8,901	7,742
External Sales | Power Systems
Operating results:
Net sales	3,125	2,951	2,650
External Sales | Accelera
Operating results:
Net sales	336	176	108
External Sales | Total Segment
Operating results:
Net sales	34,065	28,074	24,021
Intersegment sales | Components
Operating results:
Net sales	1,878	1,889	1,733
Intersegment sales | Engine
Operating results:
Net sales	2,810	2,746	2,365
Intersegment sales | Distribution
Operating results:
Net sales	50	28	30
Intersegment sales | Power Systems
Operating results:
Net sales	2,548	2,082	1,765
Intersegment sales | Accelera
Operating results:
Net sales	18	22	8
Intersegment sales | Total Segment
Operating results:
Net sales	$ 7,304	$ 6,767	$ 5,901

OPERATING SEGMENTS - (Details 2

OPERATING SEGMENTS - (Details 2) Net Asset Reconciliation, Geographic Information and Largest Customer - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment reporting
Net assets for operating segments	$ 13,340	$ 14,995
Cash, cash equivalents and marketable securities	2,741	2,573
Net liabilities deducted in arriving at net segment assets (1)	14,531	11,270
Pension and other postretirement adjustments excluded from net assets	307	832
Deferred income taxes	1,082	625
Debt-related costs not allocated to segments	4	4
Assets	32,005	30,299
Long-lived assets	9,484	8,780
Net sales	34,065	28,074	$ 24,021
UNITED STATES
Segment reporting
Long-lived assets	5,013	4,714
Net sales	19,302	15,833	12,489
CHINA
Segment reporting
Long-lived assets	1,030	1,052
Net sales	3,115	2,390	3,169
INDIA
Segment reporting
Long-lived assets	681	665
Net sales	1,678	1,392	1,133
Mexico
Segment reporting
Long-lived assets	583	429
UNITED KINGDOM
Segment reporting
Long-lived assets	489	431
Netherlands
Segment reporting
Long-lived assets	437	334
Brazil
Segment reporting
Long-lived assets	261	256
Canada
Segment reporting
Long-lived assets	171	168
Other foreign countries
Segment reporting
Long-lived assets	819	731
Net sales	9,970	8,459	7,230
Revenue Benchmark
Segment reporting
Net sales	$ 5,500	$ 4,500	$ 3,600
Revenue Benchmark | Customer Concentration Risk | PACCAR Inc.
Segment reporting
Concentration Risk, Percentage	16%	16%	15%