Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data
3 Months Ended 6 Months Ended
Jun. 26, 2011
Jun. 27, 2010
Jun. 26, 2011
Jun. 27, 2010
NET SALES (a) $ 4,641 [1] $ 3,208 [1] $ 8,501 [1] $ 5,686 [1]
Cost of sales 3,438 2,455 6,341 4,332
GROSS MARGIN 1,203 753 2,160 1,354
OPERATING EXPENSES AND INCOME        
Selling, general and administrative expenses 463 354 852 689
Research, development and engineering expenses 157 96 286 188
Equity, royalty and interest income from investees (Note 6) 117 97 213 173
Gain on sale of business (Note 4) 68   68  
Other operating (expense) income, net   (4) (6) (8)
OPERATING INCOME 768 396 1,297 642
Interest income 10 5 16 8
Interest expense 13 9 23 18
Other income (expense), net (3)   (6) 17
INCOME BEFORE INCOME TAXES 762 392 1,284 649
Income tax expense 225 122 382 209
CONSOLIDATED NET INCOME 537 270 902 440
Less: Net income attributable to noncontrolling interests 32 24 54 45
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 505 $ 246 $ 848 $ 395
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.        
Basic (in dollars per share) $ 2.61 $ 1.25 $ 4.36 $ 2.00
Diluted (in dollars per share) $ 2.60 $ 1.25 $ 4.34 $ 2.00
WEIGHTED AVERAGE SHARES OUTSTANDING        
Basic (in shares) 193.8 196.9 194.6 197.6
Dilutive effect of stock compensation awards (in shares) 0.6 0.4 0.6 0.3
Diluted (in shares) 194.4 197.3 195.2 197.9
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.2625 $ 0.175 $ 0.525 $ 0.35
[1] Includes sales to nonconsolidated equity investees of $635 million and $1,234 million and $516 million and $944 million for the three and six months ended June 26, 2011 and June 27, 2010, respectively.