SEC Filings


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

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:
 
 
2018
 
2017
Discount rate
 
4.25
%
 
3.55
%

The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows:
 
 
2018
 
2017
 
2016
Discount rate
 
3.55
%
 
4.00
%
 
4.35
%

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 7.63 percent annual rate of increase in the per capita cost of covered health care benefits was assumed in 2018. The rate is assumed to decrease on a linear basis to 5.0 percent through 2026 and remain at that level thereafter.
Estimated Benefit Payments
The table below presents expected benefit payments under our OPEB plans:
In millions
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024 - 2028
Expected benefit payments
 
$
24

 
$
23

 
$
22

 
$
22

 
$
21

 
$
90


NOTE 12. OTHER ACCRUED EXPENSES AND OTHER LIABILITIES
Other accrued expenses included the following:
 
 
December 31,
In millions
 
2018
 
2017
Marketing accruals
 
$
199

 
$
146

Other taxes payable
 
196

 
197

Income taxes payable
 
97

 
77

Other
 
360

 
495

Other accrued expenses
 
$
852

 
$
915


Other liabilities included the following:
 
 
December 31,
In millions
 
2018
 
2017
Income tax payable (1)
 
$
293

 
$
281

Deferred income taxes
 
263

 
391

Accrued compensation
 
173

 
151

Other long-term liabilities
 
163

 
134

Other liabilities
 
$
892

 
$
957


____________________________________________________
(1) Long-term income taxes payable are the result of Tax Legislation and relate to the non-current portion of
the one-time transition tax on accumulated foreign earnings. See Note 4, "INCOME TAXES," to our
Consolidated Financial Statements for additional information.

101