Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE (Details)

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EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Oct. 01, 2017
Jul. 02, 2017
Apr. 02, 2017
Dec. 31, 2016
Oct. 02, 2016
Jul. 03, 2016
Apr. 03, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]                      
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ (274) [1] $ 453 $ 424 $ 396 $ 378 $ 289 $ 406 $ 321 $ 999 $ 1,394 $ 1,399
Weighted-average common shares outstanding:                      
Basic (in shares)                 166,625,320 169,038,410 178,037,581
Dilutive effect of stock compensation awards (in shares)                 645,545 298,206 369,247
Diluted (in shares)                 167,270,865 169,336,616 178,406,828
Options excluded (in shares)                 31,991 1,091,799 866,262
Earnings per common share attributable to Cummins Inc.                      
Basic (in dollars per share) $ (1.66) [2] $ 2.72 [2] $ 2.53 [2] $ 2.36 [2] $ 2.26 [2],[3] $ 1.72 [2],[3] $ 2.41 [2],[3] $ 1.87 [2] $ 5.99 $ 8.25 $ 7.86
Diluted (in dollars per share) $ (1.65) [2] $ 2.71 [2] $ 2.53 [2] $ 2.36 [2] $ 2.25 [2],[3] $ 1.72 [2],[3] $ 2.40 [2],[3] $ 1.87 [2] $ 5.97 $ 8.23 $ 7.84
[1] Net income attributable to Cummins Inc. and earnings per share were negatively impacted by a $777 million tax adjustment related to The Tax Cuts and Jobs Act passed in December of 2017. For the fourth quarter of 2017, results for basic and diluted earnings per share were reduced by $4.70 per share and $4.68 per share, respectively, due to tax reform.
[2] Earnings per share in each quarter is computed using the weighted-average number of shares outstanding during that quarter while earnings per share for the full year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the four quarters earnings per share may not equal the full year earnings per share.
[3] The second quarter of 2016 included a $39 million loss contingency charge ($24 million after-tax). The third quarter of 2016 included an additional $99 million loss contingency charge ($50 million net of favorable compensation impact and after-tax).