Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Income Statement [Abstract]    
NET SALES [1] $ 4,291 $ 4,709
Cost of sales 3,235 3,514
GROSS MARGIN 1,056 1,195
OPERATING EXPENSES AND INCOME    
Selling, general and administrative expenses 490 517
Research, development and engineering expenses 166 195
Equity, royalty and interest income from investees (Note 4) 72 68
Other operating expense, net (2) (3)
OPERATING INCOME 470 548
Interest income 6 5
Interest expense (Note 8) 19 14
Other income, net 8 9
INCOME BEFORE INCOME TAXES 465 548
Income tax expense (Note 5) 132 144
CONSOLIDATED NET INCOME 333 404
Less: Net income attributable to noncontrolling interests 12 17
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 321 $ 387
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.    
Basic (in dollars per share) $ 1.87 $ 2.14
Diluted (in dollars per share) $ 1.87 $ 2.14
WEIGHTED AVERAGE SHARES OUTSTANDING    
Basic (in shares) 171.8 180.6
Dilutive effect of stock compensation awards (in shares) 0.2 0.4
Diluted (in shares) 172.0 181.0
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.975 $ 0.78
Sales to nonconsolidated equity investees $ 242 $ 325
[1] Includes sales to nonconsolidated equity investees of $242 million and $325 million for the three months ended April 3, 2016 and March 29, 2015, respectively.