CUMMINS INC Goodwill & Intangibles Disclosure
| In millions | Components | Accelera | Distribution | Power Systems | Engine | Total | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 1,884 | $ | 496 | $ | 83 | $ | 11 | $ | 25 | $ | 2,499 | ||||||||||||||||||||||||||
| Acquisitions | 2 | — | — | 33 | — | 35 | ||||||||||||||||||||||||||||||||
| Foreign currency translation and other | (48) | (2) | — | — | — | (50) | ||||||||||||||||||||||||||||||||
Divestiture (1) | (114) | — | — | — | — | (114) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 1,724 | 494 | 83 | 44 | 25 | 2,370 | ||||||||||||||||||||||||||||||||
| Acquisitions | — | — | — | — | 9 | 9 | ||||||||||||||||||||||||||||||||
| Foreign currency translation and other | 50 | 4 | — | 1 | — | 55 | ||||||||||||||||||||||||||||||||
Impairment (2) | — | (210) | — | — | — | (210) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 1,774 | $ | 288 | $ | 83 | $ | 45 | $ | 34 | $ | 2,224 | ||||||||||||||||||||||||||
(1) See NOTE 21, “ATMUS DIVESTITURE,” for additional information. | ||||||||||||||||||||||||||||||||||||||
(2) See NOTE 22, “ACCELERA ACTIONS,” for additional information. | ||||||||||||||||||||||||||||||||||||||
| December 31, | ||||||||||||||
| In millions | 2025 | 2024 | ||||||||||||
| Amortizable intangible assets | ||||||||||||||
| Software | $ | 924 | $ | 793 | ||||||||||
| Less: Accumulated amortization | (469) | (372) | ||||||||||||
| Software, net | 455 | 421 | ||||||||||||
| Trademarks, patents, customer relationships and other | 2,718 | 2,685 | ||||||||||||
| Less: Accumulated amortization | (1,028) | (819) | ||||||||||||
| Trademarks, patents, customer relationships and other, net | 1,690 | 1,866 | ||||||||||||
| Unamortizable other intangible assets | 22 | 64 | ||||||||||||
| Other intangible assets, net | $ | 2,167 | $ | 2,351 | ||||||||||
| In millions | 2026 | 2027 | 2028 | 2029 | 2030 | |||||||||||||||||||||||||||
| Projected amortization expense | $ | 312 | $ | 303 | $ | 280 | $ | 246 | $ | 204 | ||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 8, 2022 | |
| 2020 | Feb 10, 2021 | |
| 2019 | Feb 11, 2020 | |
| 2018 | Feb 11, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 13, 2017 | |
| 2015 | Feb 12, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.