SEC Filings


10-K
CUMMINS INC filed this Form 10-K on 02/11/2019
Entire Document
 

Common Stock
Changes in shares of common stock, treasury stock and common stock held in trust for employee benefit plans were as follows:
In millions
 
Common
Stock
 
Treasury
Stock
 
Common Stock
Held in Trust
Balance at December 31, 2015
 
222.4

 
47.2

 
0.9

Shares acquired
 

 
7.3

 

Shares issued
 

 
(0.3
)
 
(0.2
)
Balance at December 31, 2016
 
222.4

 
54.2

 
0.7

Shares acquired
 

 
2.9

 

Shares issued
 

 
(0.4
)
 
(0.2
)
Balance at December 31, 2017
 
222.4

 
56.7

 
0.5

Shares acquired
 

 
7.9

 

Shares issued
 

 
(0.2
)
 
(0.1
)
Balance at December 31, 2018
 
222.4

 
64.4

 
0.4


Treasury Stock
Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of shareholders' equity in our Consolidated Balance Sheets. Treasury shares may be reissued as part of our stock-based compensation programs. When shares are reissued, we use the weighted-average cost method for determining cost. The gains between the cost of the shares and the issuance price are added to additional paid-in-capital. The losses are deducted from additional paid-in capital to the extent of the gains. Thereafter, the losses are deducted from retained earnings. Treasury stock activity for the three-year period ended December 31, 2018, consisting of shares issued and repurchased is presented in our Consolidated Statements of Changes in Equity.
In October 2018, our Board of Directors authorized the acquisition of up to $2 billion of additional common stock upon completion of the 2016 repurchase plan. In December 2016, our Board of Directors authorized the acquisition of up to $1 billion of additional common stock upon completion of the 2015 repurchase plan. For the year ended December 31, 2018, we made the following purchases under our stock repurchase programs:
In millions (except per share amounts)
For each quarter ended
 
2018 Shares Purchased
 
Average Cost
Per Share
 
Total Cost of
Repurchases
 
Cash Paid for Shares Not Received
 
Remaining
Authorized
Capacity (1)
November 2015, $1 billion repurchase program
 
 

 
 

 
 

 
 
 
 

April 1
 
0.3

 
$
166.79

 
$
46

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
December 2016, $1 billion repurchase program
 
 
 
 
 
 
 
 
 
 
April 1
 
0.7

 
$
164.48

 
$
117

 
 
 
$
883

July 1
 
1.5

 
143.69

 
216

 
 
 
667

September 30
 
2.8

 
143.58

 
400

 
100

 
167

December 31
 
1.9

 
139.67

 
267

 
(100
)
 

Subtotal
 
6.9

 
144.68

 
1,000

 

 

 
 
 
 
 
 
 
 
 
 
 
October 2018, $2 billion repurchase program
 
 
 
 
 
 
 
 
 
 
December 31
 
0.7

 
$
139.85

 
$
94

 
 
 
$
1,906

 
 
 
 
 
 
 
 
 
 
 
Total
 
7.9

 
$
145.05

 
$
1,140

 
$

 
 

___________________________________________
(1) The remaining authorized capacity under these plans was calculated based on the cost to purchase the shares but excludes commission expenses in accordance with the authorized plan.  

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