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 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Jun. 29, 2014
Jun. 30, 2013
Income Statement [Abstract]        
NET SALES $ 4,835 [1] $ 4,525 [1] $ 9,241 [1] $ 8,447 [1]
Cost of sales 3,608 3,372 6,898 6,337
GROSS MARGIN 1,227 1,153 2,343 2,110
OPERATING EXPENSES AND INCOME        
Selling, general and administrative expenses 535 484 1,037 928
Research, development and engineering expenses 179 177 369 359
Equity, royalty and interest income from investees (Note 5) 105 108 195 190
Other operating income (expense), net (6) 10 (7) 11
OPERATING INCOME 612 610 1,125 1,024
Interest income 6 10 11 15
Interest expense 15 8 32 14
Other income (expense), net 39 1 49 19
INCOME BEFORE INCOME TAXES 642 613 1,153 1,044
Income tax expense (Note 6) 170 172 323 291
CONSOLIDATED NET INCOME 472 441 830 753
Less: Net income attributable to noncontrolling interests 26 27 46 57
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 446 $ 414 $ 784 $ 696
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.        
Basic (in dollars per share) $ 2.44 $ 2.20 $ 4.27 $ 3.70
Diluted (in dollars per share) $ 2.43 $ 2.20 $ 4.26 $ 3.69
WEIGHTED AVERAGE SHARES OUTSTANDING        
Basic (in shares) 182.8 187.8 183.5 188.1
Dilutive effect of stock compensation awards (in shares) 0.4 0.4 0.4 0.4
Diluted (in shares) 183.2 188.2 183.9 188.5
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.625 $ 0.5 $ 1.25 $ 1
[1] Includes sales to nonconsolidated equity investees of $546 million and $1,138 million and $576 million and $1,128 million for the three and six month periods ended June 29, 2014 and June 30, 2013, respectively.