Annual report pursuant to Section 13 and 15(d)

QUARTERLY FINANCIAL INFORMATION DISCLOSURE (unaudited) (Details)

v3.19.3.a.u2
QUARTERLY FINANCIAL INFORMATION DISCLOSURE (unaudited) (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended 18 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
Sep. 29, 2019
USD ($)
$ / shares
Jun. 30, 2019
USD ($)
$ / shares
Mar. 31, 2019
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
Sep. 30, 2018
USD ($)
$ / shares
Jul. 01, 2018
USD ($)
$ / shares
Apr. 01, 2018
USD ($)
$ / shares
Dec. 31, 2017
$ / shares
Oct. 01, 2017
$ / shares
Jul. 02, 2017
$ / shares
Apr. 02, 2017
$ / shares
Dec. 31, 2019
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
$ / shares
Jul. 01, 2018
USD ($)
$ / shares
Effect of Quarterly Events [Line Items]                                
Net sales | $ $ 5,578 $ 5,768 $ 6,221 $ 6,004 $ 6,126 $ 5,943 $ 6,132 $ 5,570         $ 23,571 [1] $ 23,771 [1] $ 20,428 [1]  
Gross Profit | $ 1,313 1,494 1,641 1,532 1,546 1,551 1,440 [2] 1,200 [2]         5,980 5,737 5,100  
NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $ $ 300 [3] $ 622 $ 675 $ 663 $ 579 $ 692 $ 545 [2] $ 325 [2]         $ 2,260 $ 2,141 $ 999  
Basic (in dollars per share) $ 1.98 [3],[4] $ 3.99 [4] $ 4.29 [4] $ 4.22 [4] $ 3.65 [4],[5] $ 4.29 [4],[5] $ 3.33 [2],[4],[5] $ 1.97 [2],[4],[5]         $ 14.54 $ 13.20 $ 5.99  
Diluted (in dollars per share) 1.97 [3],[4] 3.97 [4] 4.27 [4] 4.20 [4] 3.63 [4],[5] 4.28 [4],[5] 3.32 [2],[4],[5] 1.96 [2],[4],[5]         14.48 13.15 5.97  
Cash dividend (in dollars per share) $ 1.311 1.311 1.14 1.14 $ 1.14 $ 1.14 $ 1.08 $ 1.08 $ 1.08 $ 1.08 $ 1.025 $ 1.025 $ 4.90 $ 4.44 $ 4.21  
Severance Costs | $                         $ 119 [6] $ 0 $ 0  
Restructuring Charges, Net of Tax | $                         $ 90      
Product Liability Accrual, Period Expense | $             $ 181 $ 187             $ 36 $ 410
Product Liability Accrual, Period Expense, Net of Tax | $             139 144                
Total Tax Legislation Impact Net | $         $ 10 $ 33 $ (8) $ (74)                
Registered Shareholders Total 3,123                       3,123      
Common Stock, Par or Stated Value Per Share $ 2.50       $ 2.50               $ 2.50 $ 2.50    
Maximum                                
Effect of Quarterly Events [Line Items]                                
Sale of Stock, Price Per Share 186.73 175.91 171.84 162.34 156.49 $ 151.87 $ 172.08 $ 194.18         186.73 156.49   $ 172.08
Minimum                                
Effect of Quarterly Events [Line Items]                                
Sale of Stock, Price Per Share 151.15 $ 141.14 $ 150.48 $ 130.03 124.40 129.90 131.58 154.58         $ 151.15 $ 124.40   $ 131.58
Tax Legislation Impact                                
Effect of Quarterly Events [Line Items]                                
Basic (in dollars per share)         0.06 0.20 (0.05) (0.45)                
Diluted (in dollars per share)         $ 0.06 $ 0.20 (0.05) (0.45)                
Engine Campaign                                
Effect of Quarterly Events [Line Items]                                
Basic (in dollars per share)             (0.85) (0.87)                
Diluted (in dollars per share)             $ (0.85) $ (0.87)                
Restructuring Charges                                
Effect of Quarterly Events [Line Items]                                
Basic (in dollars per share) 0.59                              
Diluted (in dollars per share) $ 0.59                              
[1]
Includes sales to nonconsolidated equity investees of $1,191 million, $1,267 million and $1,174 million for the years ended December 31, 2019, 2018 and 2017, respectively.
[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]
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).
[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.
[5]
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.
[6]
See Note 4 "RESTRUCTURING ACTIONS," for additional information.