Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF INCOME

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CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Net sales [1] $ 24,021 $ 19,811 $ 23,571
Cost of sales 18,326 14,917 17,591
Gross Profit 5,695 4,894 5,980
OPERATING EXPENSES AND INCOME      
Selling, general and administrative expenses 2,374 2,125 2,454
Research, development and engineering expenses 1,090 906 1,001
Equity, royalty and interest income from investees 506 452 330
Restructuring actions (Note 21) 0 0 119
Other operating income (expense), net (31) (46) (36)
OPERATING INCOME 2,706 2,269 2,700
Interest expense (Note 12) 111 100 109
Other income, net 156 169 243
INCOME BEFORE INCOME TAXES 2,751 2,338 2,834
Income tax expense (Note 4) 587 527 566
CONSOLIDATED NET INCOME 2,164 1,811 2,268
Less: Net income attributable to noncontrolling interests 33 22 8
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 2,131 $ 1,789 $ 2,260
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. (Note 19)      
Basic (in dollars per share) $ 14.74 $ 12.07 $ 14.54
Diluted (in dollars per share) $ 14.61 $ 12.01 $ 14.48
Sales to nonconsolidated equity investees $ 1,713 $ 1,283 $ 1,191
[1] (a)Includes sales to nonconsolidated equity investees of $1,713 million, $1,283 million and $1,191 million for the years ended December 31, 2021, 2020 and 2019, respectively.