Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
3 Months Ended
Apr. 01, 2018
Apr. 02, 2017
Income Statement [Abstract]    
NET SALES (a) (Note 3) [1] $ 5,570 $ 4,589
Cost of sales 4,370 3,457
GROSS MARGIN 1,200 1,132
OPERATING EXPENSES AND INCOME    
Selling, general and administrative expenses 577 547
Research, development and engineering expenses 210 158
Equity, royalty and interest income from investees (Note 5) 115 108
Other operating income (expense), net 2 5
OPERATING INCOME 530 540
Interest income 7 2
Interest expense (Note 9) 24 18
Other income, net 10 24
INCOME BEFORE INCOME TAXES 523 548
Income tax expense (Note 6) 198 143
CONSOLIDATED NET INCOME 325 405
Less: Net income attributable to noncontrolling interests 0 9
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 325 $ 396
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.    
Basic (in dollars per share) $ 1.97 $ 2.36
Diluted (in dollars per share) $ 1.96 $ 2.36
WEIGHTED AVERAGE SHARES OUTSTANDING    
Basic (in shares) 164.9 167.5
Dilutive effect of stock compensation awards (in shares) 0.8 0.5
Diluted (in shares) 165.7 168.0
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 1.08 $ 1.025
Sales to nonconsolidated equity investees $ 297 $ 267
[1] Includes sales to nonconsolidated equity investees of $297 million and $267 million for the three months ended April 1, 2018 and April 2, 2017, respectively.