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, 2019
 [1]
Sep. 29, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jul. 01, 2018
 [2]
Apr. 01, 2018
 [2]
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Earnings Per Share [Abstract]                      
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 300 $ 622 $ 675 $ 663 $ 579 $ 692 $ 545 $ 325 $ 2,260 $ 2,141 $ 999
Weighted-average common shares outstanding:                      
Basic (in shares)                 155,400,000 162,200,000 166,700,000
Dilutive effect of stock compensation awards (in shares)                 700,000 600,000 600,000
Diluted (in shares)                 156,100,000 162,800,000 167,300,000
Options excluded (in shares)                 473,845 969,385 31,991
Earnings per common share attributable to Cummins Inc.                      
Basic (in dollars per share) $ 1.98 [3] $ 3.99 [3] $ 4.29 [3] $ 4.22 [3] $ 3.65 [3],[4] $ 4.29 [3],[4] $ 3.33 [3],[4] $ 1.97 [3],[4] $ 14.54 $ 13.20 $ 5.99
Diluted (in dollars per share) $ 1.97 [3] $ 3.97 [3] $ 4.27 [3] $ 4.20 [3] $ 3.63 [3],[4] $ 4.28 [3],[4] $ 3.32 [3],[4] $ 1.96 [3],[4] $ 14.48 $ 13.15 $ 5.97
[1]
Net income attributable to Cummins Inc. and earnings per share were negatively impacted by $119 million ($90 million after-tax) of restructuring actions in the fourth quarter of 2019 ($0.59 per basic share and $0.59 per diluted share).
[2]
Gross margin, net income attributable to Cummins Inc. and earnings per share in 2018 were negatively impacted by an Engine Campaign charge of $187 million ($144 million after-tax) in the first quarter ($0.87 per basic share and $0.87 per diluted share). The second quarter of 2018 was negatively impacted by an additional charge of $181 million ($139 million after-tax) ($0.85 per basic share and $0.85 per diluted share).
[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.
[4]
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 quarters, respectively, while they increased in the third and fourth quarters by $0.20 per share and $0.06 per share, respectively.