SEC Filings


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

 
 
Qualified and Non-Qualified Pension Plans
 
 
U.S. Plans
 
U.K. Plans
In millions
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation
 
 
 
 
 
 
 
 
Benefit obligation at the beginning of the year
 
$
2,765

 
$
2,661

 
$
1,662

 
$
1,451

Service cost
 
120

 
107

 
29

 
26

Interest cost
 
98

 
106

 
41

 
40

Actuarial (gain) loss
 
(212
)
 
61

 
(46
)
 
53

Benefits paid from fund
 
(193
)
 
(155
)
 
(62
)
 
(54
)
Benefits paid directly by employer
 
(16
)
 
(15
)
 

 

Plan amendment
 

 

 
15

(1) 

Exchange rate changes
 

 

 
(89
)
 
146

Benefit obligation at end of year
 
$
2,562

 
$
2,765

 
$
1,550

 
$
1,662

Change in plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
3,166

 
$
2,751

 
$
1,960

 
$
1,753

Actual return on plan assets
 
(36
)
 
351

 
(33
)
 
78

Employer contributions
 

 
219

 
21

 
9

Benefits paid
 
(193
)
 
(155
)
 
(62
)
 
(54
)
Exchange rate changes
 

 

 
(104
)
 
174

Fair value of plan assets at end of year
 
$
2,937

 
$
3,166

 
$
1,782

 
$
1,960

Funded status (including unfunded plans) at end of year
 
$
375

 
$
401

 
$
232

 
$
298

Amounts recognized in consolidated balance sheets
 
 
 
 
 
 
 
 
Pension assets - long-term
 
$
697

 
$
745

 
$
232

 
$
298

Accrued compensation, benefits and retirement costs - current liabilities
 
(14
)
 
(14
)
 

 

Pensions - long-term liabilities
 
(308
)
 
(330
)
 

 

Net amount recognized
 
$
375

 
$
401

 
$
232

 
$
298

Amounts recognized in accumulated other comprehensive loss
 
 
 
 
 
 
 
 
Net actuarial loss
 
$
635

 
$
649

 
$
230

 
$
207

Prior service cost
 
8

 
8

 
16

 

Net amount recognized
 
$
643

 
$
657

 
$
246

 
$
207


___________________________________________________________
(1) Guaranteed minimum pension benefits to equalize certain pension benefits between men and women per the United Kingdom court decision.
In addition to the pension plans in the above table, we also maintain less significant defined benefit pension plans in 14 other countries outside of the U.S. and the U.K. that comprise approximately 4 percent and 5 percent of our pension plan assets and obligations, respectively, at December 31, 2018. These plans are reflected in "Other liabilities" on our Consolidated Balance Sheets. In 2018 and 2017, we made $11 million and $11 million of contributions to these plans, respectively.
The following table presents information regarding total accumulated benefit obligation (ABO), the ABO and fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets and the PBO and fair value of plan assets 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
 
2018
 
2017
 
2018
 
2017
Total accumulated benefit obligation
 
$
2,544

 
$
2,745

 
$
1,473

 
$
1,569

Plans with accumulated benefit obligation in excess of plan assets
 
 
 
 
 
 
 
 
Accumulated benefit obligation
 
304

 
323

 

 

Plans with projected benefit obligation in excess of plan assets
 
 
 
 
 
 
 
 
Projected benefit obligation
 
322

 
344

 

 



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