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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2019

Commission File Number 1-4949

CUMMINS INC.

Indiana		35-0257090
(State of Incorporation)		(IRS Employer Identification No.)

500 Jackson Street

Box 3005

Columbus**,** Indiana 47202-3005

(Address of principal executive offices)

Telephone (812) 377-5000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, $2.50 par value		CMI		New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None.

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x		Accelerated filer	☐		Non-accelerated filer	☐
Smaller reporting company	☐		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The aggregate market value of the voting stock held by non-affiliates was approximately $27.0 billion at June 28, 2019. This value includes all shares of the registrant's common stock, except for treasury shares.

As of January 31, 2020, there were 150,269,665 shares outstanding of $2.50 par value common stock.

Documents Incorporated by Reference

Portions of the registrant's definitive Proxy Statement for its 2020 annual meeting of shareholders, which will be filed with the Securities and Exchange Commission on Schedule 14A within 120 days after the end of 2019, will be incorporated by reference in Part III of this Form 10-K to the extent indicated therein upon such filing.

CUMMINS INC. AND SUBSIDIARIES

TABLE OF CONTENTS

PART		ITEM				PAGE
				Cautionary Statements Regarding Forward-Looking Information		3
I		1		Business		5
				Overview		5
				Operating Segments		5
				Engine Segment		5
				Distribution Segment		6
				Components Segment		7
				Power Systems Segment		8
				New Power Segment		8
				Joint Ventures, Alliances and Non-Wholly-Owned Subsidiaries		8
				Supply		10
				Patents and Trademarks		11
				Seasonality		11
				Largest Customers		11
				Backlog		11
				Research and Development		11
				Environmental Sustainability		12
				Environmental Compliance		12
				Employees		14
				Available Information		14
				Information About Our Executive Officers		15
		1A		Risk Factors		17
		1B		Unresolved Staff Comments		24
		2		Properties		25
		3		Legal Proceedings		26
		4		Mine Safety Disclosures		27
II		5		Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		28
		6		Selected Financial Data		30
		7		Management's Discussion and Analysis of Financial Condition and Results of Operations		31
		7A		Quantitative and Qualitative Disclosures About Market Risk		56
		8		Financial Statements and Supplementary Data		58
				Index to Financial Statements		58
		9		Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		117
		9A		Controls and Procedures		117
		9B		Other Information		117
III		10		Directors, Executive Officers and Corporate Governance		117
		11		Executive Compensation		117
		12		Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		118
		13		Certain Relationships and Related Transactions and Director Independence		118
		14		Principal Accounting Fees and Services		118
IV		15		Exhibits, Financial Statement Schedules		118
		16		Form 10-K Summary (optional)		121
				Signatures		122

Cummins Inc. and its consolidated subsidiaries are hereinafter sometimes referred to as "Cummins," "we," "our," or "us."

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

Certain parts of this annual report contain forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those that are based on current expectations, estimates and projections about the industries in which we operate and management’s beliefs and assumptions. Forward-looking statements are generally accompanied by words such as "anticipates," "expects," "forecasts," "intends," "plans," "believes," "seeks," "estimates," "could," "should" or words of similar meaning. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which we refer to as "future factors," which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some future factors that could cause our results to differ materially from the results discussed in such forward-looking statements are discussed below and shareholders, potential investors and other readers are urged to consider these future factors carefully in evaluating forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Future factors that could affect the outcome of forward-looking statements include the following:

•	any adverse results of our internal review into our emissions certification process and compliance with emission standards;

•	increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world;

•	a sustained slowdown or significant downturn in our markets;

•	an extended shutdown of our operations in China due to the coronavirus outbreak;

•	product recalls;

•	the development of new technologies that reduce demand for our current products and services;

•	policy changes in international trade;

•	a slowdown in infrastructure development and/or depressed commodity prices;

•	the U.K.'s decision to end its membership in the European Union (EU);

•	lower than expected acceptance of new or existing products or services;

•	supply shortages and supplier financial risk, particularly from any of our single-sourced suppliers;

•	changes in the engine outsourcing practices of significant customers;

•	our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions;

•	exposure to potential security breaches or other disruptions to our information technology systems and data security;

•	aligning our capacity and production with our demand;

•	challenges or unexpected costs in completing cost reduction actions and restructuring initiatives;

•	a major customer experiencing financial distress;

•	failure to realize expected results from our investment in Eaton Cummins Automated Transmission Technologies joint venture;

•	political, economic and other risks from operations in numerous countries;

•	competitor activity;

•	increasing competition, including increased global competition among our customers in emerging markets;

•	foreign currency exchange rate changes;

•	variability in material and commodity costs;

•	the actions of, and income from, joint ventures and other investees that we do not directly control;

•	changes in taxation;

•	global legal and ethical compliance costs and risks;

•	product liability claims;

•	increasingly stringent environmental laws and regulations;

•	future bans or limitations on the use of diesel-powered products;

•	the price and availability of energy;

•	the performance of our pension plan assets and volatility of discount rates;

•	labor relations;

•	our sales mix of products;

•	protection and validity of our patent and other intellectual property rights;

•	the outcome of pending and future litigation and governmental proceedings;

•	continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and

•	other risk factors described in Item 1A. under the caption "Risk Factors."

Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this annual report and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

PART I