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, 2018
 [1]
Sep. 30, 2018
 [1]
Jul. 01, 2018
 [1],[2]
Apr. 01, 2018
 [1],[2]
Dec. 31, 2017
 [1]
Oct. 01, 2017
Jul. 02, 2017
Apr. 02, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Earnings Per Share [Abstract]                      
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 579 $ 692 $ 545 $ 325 $ (274) $ 453 $ 424 $ 396 $ 2,141 $ 999 $ 1,394
Weighted-average common shares outstanding:                      
Basic (in shares)                 162,172,831 166,625,320 169,038,410
Dilutive effect of stock compensation awards (in shares)                 600,516 645,545 298,206
Diluted (in shares)                 162,773,347 167,270,865 169,336,616
Options excluded (in shares)                 969,385 31,991 1,091,799
Earnings per common share attributable to Cummins Inc.                      
Basic (in dollars per share) $ 3.65 [3] $ 4.29 [3] $ 3.33 [3] $ 1.97 [3] $ (1.66) [3] $ 2.72 [3] $ 2.53 [3] $ 2.36 [3] $ 13.20 $ 5.99 $ 8.25
Diluted (in dollars per share) $ 3.63 [3] $ 4.28 [3] $ 3.32 [3] $ 1.96 [3] $ (1.65) [3] $ 2.71 [3] $ 2.53 [3] $ 2.36 [3] $ 13.15 $ 5.97 $ 8.23
[1] Net income attributable to Cummins Inc., basic and diluted earnings per share were impacted by Tax Legislation adjustments. Net income attributable to Cummins Inc. was reduced by $74 million and $8 million, in the first and second quarter, respectively, while it increased in the third and fourth quarter $33 million and $10 million, respectively. Basic and diluted earnings per share were reduced by $0.45 per share and $0.05 per share in the first and second quarter, respectively, while they increased in the third and fourth quarter by $0.20 per share and $0.06 per share, respectively. Net income attributable to Cummins Inc. and earnings per share were negatively impacted by $777 million related to Tax Legislation. 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] Gross margin, net income attributable to Cummins Inc. and earnings per share were negatively impacted by an Engine Campaign charge of $187 million ($144 million after tax) in the first quarter ($0.87 per basic and diluted share). The second quarter was negatively impacted by an additional charge of $181 million ($139 million after tax) ($0.85 per basic and diluted share). In 2017, a charge of $29 million ($21 million after tax) ($0.13 per basic and diluted share) was recorded in the third quarter.
[3] 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.