SEC Filings


10-K
CUMMINS INC filed this Form 10-K on 02/11/2019
Entire Document
 

Obligations and Funded Status
Benefit obligation balances presented below reflect the accumulated postretirement benefit obligations (APBO) 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
 
2018
 
2017
Change in benefit obligation
 
 
 
 
Benefit obligation at the beginning of the year
 
$
318

 
$
364

Interest cost
 
11

 
14

Plan participants' contributions
 
21

 
24

Actuarial gain
 
(51
)
 
(35
)
Benefits paid directly by employer
 
(53
)
 
(49
)
Benefit obligation at end of year
 
$
246

 
$
318

 
 
 
 
 
Funded status at end of year
 
$
(246
)
 
$
(318
)
 
 
 
 
 
Amounts recognized in consolidated balance sheets
 
 
 
 
Accrued compensation, benefits and retirement costs - current liabilities
 
$
(22
)
 
$
(29
)
Postretirement benefits other than pensions-long-term liabilities
 
(224
)
 
(289
)
Net amount recognized
 
$
(246
)
 
$
(318
)
 
 
 
 
 
Amounts recognized in accumulated other comprehensive loss:
 
 
 
 
Net actuarial (gain) loss
 
$
(24
)
 
$
27

Prior service credit
 
(4
)
 
(4
)
Net amount recognized
 
$
(28
)
 
$
23


In addition to the OPEB plans in the above table, we also maintain less significant OPEB plans in four other countries outside the U.S. that comprise approximately 9 percent and 6 percent of our OPEB obligations at December 31, 2018 and 2017, respectively. These plans are reflected in "Other liabilities" in our Consolidated Balance Sheets.
Components of Net Periodic Other Postretirement Benefits Cost
The following table presents the net periodic OPEB cost under our plans:
 
 
Years ended December 31,
In millions
 
2018
 
2017
 
2016
Interest cost
 
$
11

 
$
14

 
$
16

Recognized net actuarial loss
 

 
6

 
5

Net periodic other postretirement benefit cost
 
$
11

 
$
20

 
$
21


Other changes in benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 were as follows:
 
 
Years ended December 31,
In millions
 
2018
 
2017
 
2016
Recognized net actuarial loss
 
$

 
$
(6
)
 
$
(6
)
Incurred actuarial (gain) loss
 
(51
)
 
(35
)
 
9

Total recognized in other comprehensive (income) loss
 
$
(51
)
 
$
(41
)
 
$
3

 
 
 
 
 
 
 
Total recognized in net periodic other postretirement benefit cost and other comprehensive (income) loss
 
$
(40
)
 
$
(21
)
 
$
24



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