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, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2013
Sep. 30, 2012
Sep. 29, 2013
Sep. 30, 2012
Income Statement [Abstract]        
NET SALES $ 4,266 [1] $ 4,118 [1] $ 12,713 [1] $ 13,042 [1]
Cost of sales 3,157 3,076 9,494 9,592
GROSS MARGIN 1,109 1,042 3,219 3,450
OPERATING EXPENSES AND INCOME        
Selling, general and administrative expenses 492 456 1,420 1,418
Research, development and engineering expenses 173 186 532 554
Equity, royalty and interest income from investees (Note 5) 91 94 281 302
Gain on sale of business (Note 3) 0 0 0 6
Other operating income (expense), net (11) (1) 0 3
OPERATING INCOME 524 493 1,548 1,789
Interest income 6 5 21 20
Interest expense 8 9 22 25
Other income (expense), net 6 (2) 25 14
INCOME BEFORE INCOME TAXES 528 487 1,572 1,798
Income tax expense (Note 6) 154 117 445 458
CONSOLIDATED NET INCOME 374 370 1,127 1,340
Less: Net income attributable to noncontrolling interests 19 18 76 64
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 355 $ 352 $ 1,051 $ 1,276
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.        
Basic (in dollars per share) $ 1.91 $ 1.87 $ 5.61 $ 6.73
Diluted (in dollars per share) $ 1.90 $ 1.86 $ 5.60 $ 6.72
WEIGHTED AVERAGE SHARES OUTSTANDING        
Basic (in shares) 186.0 188.6 187.4 189.6
Dilutive effect of stock compensation awards (in shares) 0.5 0.4 0.4 0.4
Diluted (in shares) 186.5 189.0 187.8 190.0
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.625 $ 0.5 $ 1.625 $ 1.3
[1] Includes sales to nonconsolidated equity investees of $553 million and $1,681 million and $579 million and $1,870 million for the three and nine month periods ended September 29, 2013 and September 30, 2012, respectively.