Consolidated Results of Operations Summary Consolidated Results of Operations (2014 versus 2013) Sales  — The following table shows changes in our sales by geographic region. Sales for 2014 declined $152 or 2% from 2013, with the primary driver being weaker international currencies.  After  adjusting to exclude currency effects, sales increased $61. Sales benefited by $65 from cost recovery pricing, while overall  market volume and mix reduced sales by $4. Stronger sales volume in North  America and Europe was more than of fset by  weaker demand in our global Off-Highway business and the South America medium/heavy truck market.  The 2014 sales increase of 6% in North America was driven primarily by stronger production levels in the light vehicle and  medium/heavy vehicle markets. Light vehicle engine builds and full frame light truck production were up about 5% and  combined medium/heavy truck production was higher by about 16%. Partially of fsetting these stronger volumes was lower  demand in the off-highway markets. 2014 2013 Dollars % of Net Sales Dollars % of Net Sales Increase/ (Decrease) Net sales $ 6,617 $ 6,769 $ (152) Cost of sales 5,672 85.7% 5,849 86.4% (177) Gross margin 945 14.3% 920 13.6% 25 Selling, general and administrative expenses 411 6.2% 410 6.1% 1 Amortization of intangibles 42 74 (32) Restructuring charges, net 21 24 (3) Loss on disposal group held for sale (80) (80) Pension settlement charges (42) (42) Loss on extinguishment of debt (19) (19) Other income, net 48 55 (7) Income from continuing operations before interest expense and income taxes 378 467 (89) Interest expense 118 99 19 Income from continuing operations before income taxes 260 368 (108) Income tax expense (benefit) (70) 119 (189) Equity in earnings of affiliates 13 12 1 Income from continuing operations 343 261 82 Loss from discontinued operations (15) (1) (14) Net income 328 260 68 Less: Noncontrolling interests net income 9 16 (7) Net income attributable to the parent company $ 319 $ 244 $ 75 Amount of Change Due To 2014 2013 Increase/ (Decrease) Currency Effects Organic Change North America $ 3,126 $ 2,958 $ 168 $ (15) $ 183 Europe 1,978 1,994 (16) 3 (19) South America 771 983 (212) (170) (42) Asia Pacific 742 834 (92) (31) (61) Total $ 6,617 $ 6,769 $ (152) $ (213) $ 61 20