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 6 Months Ended
Jul. 01, 2018
Jul. 02, 2017
Jul. 01, 2018
Jul. 02, 2017
Income Statement [Abstract]        
NET SALES (a) (Note 3) [1] $ 6,132 $ 5,078 $ 11,702 $ 9,667
Cost of sales 4,692 3,827 9,062 7,284
GROSS MARGIN 1,440 1,251 2,640 2,383
OPERATING EXPENSES AND INCOME        
Selling, general and administrative expenses 613 606 1,190 1,153
Research, development and engineering expenses 219 175 429 333
Equity, royalty and interest income from investees (Note 5) 110 98 225 206
Other operating income (expense), net 4 18 6 23
OPERATING INCOME 722 586 1,252 1,126
Interest income 10 5 17 7
Interest expense 28 21 52 39
Other income, net 11 29 21 53
INCOME BEFORE INCOME TAXES 715 599 1,238 1,147
Income tax expense (Note 6) 161 158 359 301
CONSOLIDATED NET INCOME 554 441 879 846
Less: Net income attributable to noncontrolling interests 9 17 9 26
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 545 $ 424 $ 870 $ 820
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.        
Basic (in dollars per share) $ 3.33 $ 2.53 $ 5.30 $ 4.90
Diluted (in dollars per share) $ 3.32 $ 2.53 $ 5.27 $ 4.88
WEIGHTED AVERAGE SHARES OUTSTANDING        
Basic (in shares) 163.8 167.3 164.3 167.4
Dilutive effect of stock compensation awards (in shares) 0.5 0.5 0.7 0.5
Diluted (in shares) 164.3 167.8 165.0 167.9
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 1.08 $ 1.025 $ 2.16 $ 2.05
Sales to nonconsolidated equity investees $ 340 $ 283 $ 637 $ 550
[1] Includes sales to nonconsolidated equity investees of $340 million and $637 million and $283 million and $550 million for the three and six months ended July 1, 2018 and July 2, 2017, respectively.