Annual report pursuant to Section 13 and 15(d)

QUARTERLY FINANCIAL INFORMATION DISCLOSURE (unaudited) (Details)

v3.10.0.1
QUARTERLY FINANCIAL INFORMATION DISCLOSURE (unaudited) (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
$ / shares
Sep. 30, 2018
USD ($)
$ / shares
Jul. 01, 2018
USD ($)
$ / shares
Apr. 01, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
$ / shares
Oct. 01, 2017
USD ($)
$ / shares
Jul. 02, 2017
USD ($)
$ / shares
Apr. 02, 2017
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
$ / shares
Dec. 31, 2016
USD ($)
$ / shares
Effect of Fourth Quarter Events [Line Items]                      
Net sales | $ $ 6,126 $ 5,943 $ 6,132 $ 5,570 $ 5,476 $ 5,285 $ 5,078 $ 4,589 $ 23,771 [1] $ 20,428 [1] $ 17,509 [1]
Gross Profit | $ 1,546 1,551 1,440 [2] 1,200 [2] 1,376 1,341 1,251 1,132 5,737 5,100 4,458
NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $ $ 579 [3] $ 692 [3] $ 545 [2],[3] $ 325 [2],[3] $ (274) [3] $ 453 $ 424 $ 396 $ 2,141 $ 999 $ 1,394
Basic (in dollars per share) $ 3.65 [3],[4] $ 4.29 [3],[4] $ 3.33 [2],[3],[4] $ 1.97 [2],[3],[4] $ (1.66) [3],[4] $ 2.72 [4] $ 2.53 [4] $ 2.36 [4] $ 13.20 $ 5.99 $ 8.25
Diluted (in dollars per share) 3.63 [3],[4] 4.28 [3],[4] 3.32 [2],[3],[4] 1.96 [2],[3],[4] (1.65) [3],[4] 2.71 [4] 2.53 [4] 2.36 [4] $ 13.15 $ 5.97 $ 8.23
Cash dividend (in dollars per share) $ 1.14 $ 1.14 $ 1.08 $ 1.08 1.08 $ 1.08 1.025 1.025      
Selected Quarterly Financial Information [Abstract]                      
Product Liability Accrual, Period Expense | $     $ 181 $ 187   $ 29       $ 36  
Product Liability Accrual, Period Expense, Net of Tax | $     139 144   $ 21          
Total Tax Legislation Impact Net | $ $ 10 $ 33 $ (8) $ (74)           $ (777)  
Registered Shareholders Total 3,256               3,256    
Maximum                      
Effect of Fourth Quarter Events [Line Items]                      
Sale of Stock, Price Per Share $ 156.49 $ 151.87 $ 172.08 $ 194.18 181.79 $ 170.68 164.23 155.51 $ 156.49 $ 181.79  
Minimum                      
Effect of Fourth Quarter Events [Line Items]                      
Sale of Stock, Price Per Share 124.40 129.90 131.58 154.58 158.75 150.25 $ 143.83 $ 134.06 $ 124.40 $ 158.75  
Tax Legislation Impact                      
Effect of Fourth Quarter Events [Line Items]                      
Basic (in dollars per share) 0.06 0.20 (0.05) (0.45) (4.70)            
Diluted (in dollars per share) $ 0.06 $ 0.20 (0.05) (0.45) $ (4.68)            
Engine Campaign                      
Effect of Fourth Quarter Events [Line Items]                      
Basic (in dollars per share)     (0.85) (0.87)   (0.13)          
Diluted (in dollars per share)     $ (0.85) $ (0.87)   $ (0.13)          
[1] Includes sales to nonconsolidated equity investees of $1,267 million, $1,174 million and $1,028 million for the years ended December 31, 2018, 2017 and 2016, respectively.
[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] 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.
[4] 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.