SEC Filings


10-Q
CUMMINS INC filed this Form 10-Q on 10/31/2017
Entire Document
 

 
 
Three months ended
 
Nine months ended
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Options excluded
3,728

 
936,857

 
42,139

 
1,295,664


NOTE 3. PENSION AND OTHER POSTRETIREMENT BENEFITS
We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement plans. Contributions to these plans were as follows:
 
 
 
Three months ended
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Defined benefit pension plans
 
 

 
 

 
 

 
 

Voluntary contribution
 
$
41

 
$
16

 
$
125

 
$
101

Mandatory contribution
 

 
5

 

 
23

Defined benefit pension contributions
 
$
41

 
$
21

 
$
125

 
$
124

 
 
 
 
 
 
 
 
 
Other postretirement plans
 
$
1

 
$
4

 
$
19

 
$
32

 
 
 
 
 
 
 
 
 
Defined contribution pension plans
 
$
19

 
$
17

 
$
67

 
$
53


We anticipate making additional defined benefit pension contributions during the remainder of 2017 of $10 million for our U.S. and U.K. pension plans. Approximately $134 million of the estimated $135 million of pension contributions for the full year are voluntary. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2017 net periodic pension cost to approximate $83 million.
The components of net periodic pension and other postretirement benefit costs under our plans were as follows:
 
 
Pension
 
 
 
 
 
 
U.S. Plans
 
U.K. Plans
 
Other Postretirement Benefits
 
 
Three months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Service cost
 
$
27

 
$
22

 
$
7

 
$
5

 
$

 
$

Interest cost
 
26

 
26

 
10

 
13

 
3

 
4

Expected return on plan assets
 
(50
)
 
(50
)
 
(18
)
 
(17
)
 

 

Recognized net actuarial loss
 
10

 
9

 
10

 
3

 
2

 
1

Net periodic benefit cost
 
$
13

 
$
7

 
$
9

 
$
4

 
$
5

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension
 
 
 
 
 
 
U.S. Plans
 
U.K. Plans
 
Other Postretirement Benefits
 
 
Nine months ended
In millions
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
Service cost
 
$
80

 
$
68

 
$
20

 
$
16

 
$

 
$

Interest cost
 
79

 
82

 
30

 
39

 
10

 
12

Expected return on plan assets
 
(153
)
 
(152
)
 
(52
)
 
(55
)
 

 

Recognized net actuarial loss
 
28

 
23

 
30

 
11

 
5

 
4

Net periodic benefit cost
 
$
34

 
$
21

 
$
28

 
$
11

 
$
15

 
$
16



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