SEC Filings


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

ITEM 6.    Selected Financial Data
The selected financial information presented below for each of the last five years ended December 31, beginning with 2018, 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
 
2018
 
2017
 
2016
 
2015
 
2014
For the years ended December 31,
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
23,771

 
$
20,428

 
$
17,509

 
$
19,110

 
$
19,221

U.S. percentage of sales
 
56
%
 
54
%
 
54
%
 
56
%
 
52
%
Non-U.S. percentage of sales
 
44
%
 
46
%
 
46
%
 
44
%
 
48
%
Gross margin (1)
 
5,737

 
5,100

 
4,458

 
4,947

 
4,861

Research, development and engineering expenses(1)
 
902

 
754

 
637

 
735

 
754

Equity, royalty and interest income from investees
 
394

 
357

 
301

 
315

 
370

Interest expense
 
114

 
81

 
69

 
65

 
64

Net income attributable to Cummins Inc.(2)
 
2,141

 
999

 
1,394

 
1,399

 
1,651

Earnings per common share attributable to Cummins Inc.(3)
 
 
 
 
 
 
 
 
 
 
Basic
 
$
13.20

 
$
5.99

 
$
8.25

 
$
7.86

 
$
9.04

Diluted
 
13.15

 
5.97

 
8.23

 
7.84

 
9.02

Cash dividends declared per share
 
4.44

 
4.21

 
4.00

 
3.51

 
2.81

Net cash provided by operating activities(4)
 
$
2,378

 
$
2,277

 
$
1,939

 
$
2,065

 
$
2,283

Capital expenditures
 
709

 
506

 
531

 
744

 
743

At December 31,
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,303

 
$
1,369

 
$
1,120

 
$
1,711

 
$
2,301

Total assets
 
19,062

 
18,075

 
15,011

 
15,134

 
15,764

Long-term debt(5)
 
1,597

 
1,588

 
1,568

 
1,576

 
1,577

Total equity(6)
 
8,259

 
8,164

 
7,174

 
7,750

 
8,093

_____________________________________________________________
(1) In 2018, we adopted the standard related to pension and other postretirement benefit costs resulting in reclassification of balances between Cost of sales, Selling, general and administrative expenses, Research, development and engineering expenses and Other income, net. Reclassifications resulted in an increase in gross margin of $10 million and $6 million and an increase in Research, development and engineering expenses of $2 million and $1 million for the years ended December 31, 2017 and 2016, respectively. Reclassifications were not made for the years ended December 31, 2015 and 2014 as the changes were immaterial.
(2) For the year ended December 31, 2018, net income attributable to Cummins Inc. was reduced by $39 million due to Tax Legislation. For the year ended December 31, 2017, net income attributable to Cummins Inc. was reduced by $777 million due to Tax Legislation. 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.
(3) For the year ended December 31, 2018 results for basic and diluted earnings per share were reduced by $0.24 due to Tax Legislation. 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 Legislation.
(4) In 2017, we adopted new rules related to accounting for stock compensation which resulted in a net reclassification of $4 million, $6 million and $17 million of compensation payments from operating to financing activities for the years ended December 31, 2016, 2015 and 2014, respectively.  
(5) 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.
(6) For the years ended December 31, 2018, 2017, 2016, 2015 and 2014, we recorded non-cash charges (credits) to equity of ($74) million, ($28) million, $65 million, $63 million and $78 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, 2018, 2017, 2016, 2015 and 2014, we recorded non-cash charges (credits) to equity of $326 million, ($315) million, $431 million, $290 million and $227 million, respectively, to record unrealized losses (gains) associated with the foreign currency translation adjustments.

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