Item 6. Selected Financial Data

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Item 6. Selected Financial Data

The selected financial information presented below for each of the last five years ended December 31, beginning with 2017, was derived from our Consolidated Financial Statements. This information should be read in conjunction with our Consolidated Financial Statements and related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations."



In millions, except per share amounts	2017			2016			2015			2014			2013
For the years ended December 31,
Net sales	$	20,428		$	17,509		$	19,110		$	19,221		$	17,301
U.S. percentage of sales	54		%	54		%	56		%	52		%	48		%
Non-U.S. percentage of sales	46		%	46		%	44		%	48		%	52		%
Gross margin	5,090			4,452			4,947			4,861			4,280
Research, development and engineering expenses	752			636			735			754			713
Equity, royalty and interest income from investees	357			301			315			370			361
Interest expense	81			69			65			64			41
Net income attributable to Cummins Inc.(1)	999			1,394			1,399			1,651			1,483
Earnings per common share attributable to Cummins Inc. (2)
Basic	$	5.99		$	8.25		$	7.86		$	9.04		$	7.93
Diluted	5.97			8.23			7.84			9.02			7.91
Cash dividends declared per share	4.21			4.00			3.51			2.81			2.25
Net cash provided by operating activities	$	2,277		$	1,935		$	2,059		$	2,266		$	2,089
Capital expenditures	506			531			744			743			676
At December 31,
Cash and cash equivalents	$	1,369		$	1,120		$	1,711		$	2,301		$	2,699
Total assets	18,075			15,011			15,134			15,764			14,728
Long-term debt(3)	1,588			1,568			1,576			1,577			1,672
Total equity(4)	8,164			7,174			7,750			8,093			7,870

(1) For the year ended December 31, 2017, net income attributable to Cummins Inc. was reduced by $777 million due to tax reform. For the year ended December 31, 2016, net income attributable to Cummins Inc. included a $138 million charge for a loss contingency ($74 million net of favorable variable compensation impact and after-tax). For the year ended December 31, 2015, net income attributable to Cummins Inc. included $211 million for an impairment of light-duty diesel assets ($133 million after-tax), $90 million of restructuring actions and other charges ($61 million after-tax) and a $60 million charge for a loss contingency ($38 million after-tax). For the year ended December 31, 2014, net income attributable to Cummins Inc. included $32 million of restructuring and other charges ($21 million after-tax) for operating actions related to the Power Systems segment.

(2) For the year ended December 31, 2017, results for basic and diluted earnings per share were reduced by $4.66 per share and $4.65 per share, respectively, due to tax reform.

(3) In 2015, we adopted new rules related to balance sheet debt issuance costs, which resulted in the reclassification of our December 31, 2014, debt balance, reducing our long-term debt by $12 million. In September 2013, we issued $1 billion of senior unsecured debt.

(4) For the years ended December 31, 2017, 2016, 2015, 2014 and 2013, we recorded non-cash charges (credits) to equity of ($28) million, $65 million, $63 million, $78 million and ($102) million, respectively, to record net actuarial losses (gains) associated with the valuation of our pension plans. These losses (gains) include the effects of market conditions on our pension trust assets and the effects of economic factors on the valuation of the pension liability. For the years ended December 31, 2017, 2016, 2015, 2014 and 2013, we recorded non-cash charges (credits) to equity of ($315) million, $431 million, $290 million, $227 million and $18 million, respectively, to record unrealized losses (gains) associated with the foreign currency translation adjustments.

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