Cummins Inc. Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN EQUITY INVESTEES (Tables)

12 Months Ended

Dec. 31, 2017

Investments and advances related to equity method investees and our ownership percentage was as follows:



		December 31,
In millions	Ownership %	2017		2016
Beijing Foton Cummins Engine Co., Ltd.	50%	$	223	$	163
Komatsu alliances	20-50%	219		197
Dongfeng Cummins Engine Company, Ltd.	50%	146		111
Cummins-Scania XPI Manufacturing, LLC	50%	87		82
Chongqing Cummins Engine Company, Ltd.	50%	84		73
Tata Cummins, Ltd.	50%	59		63
Other	Various	338		257
Investments and advances related to equity method investees		$	1,156	$	946

Equity, royalty and interest income from investees, net of applicable taxes, was as follows:



	Years ended December 31,
In millions	2017				2016		2015
Distribution entities
Komatsu Cummins Chile, Ltda.	$	30			$	34	$	31
North American distributors	—				21		33
All other distributors	(1		)		—		3
Manufacturing entities
Beijing Foton Cummins Engine Co., Ltd.	94				52		62
Dongfeng Cummins Engine Company, Ltd.	73				46		51
Chongqing Cummins Engine Company, Ltd.	41				38		41
Dongfeng Cummins Emission Solutions Co., Ltd.	13				9		6
Shanghai Fleetguard Filter Co., Ltd.	12				10		10
Cummins Westport, Inc.	9			⁽¹⁾	11		18
All other manufacturers	37			⁽¹⁾	39		18
Cummins share of net income	308				260		273
Royalty and interest income	49				41		42
Equity, royalty and interest income from investees	$	357			$	301	$	315

Summary financial information for our equity investees was as follows:



	For the years ended and at December 31,
In millions	2017			2016			2015
Net sales	$	7,050		$	5,654		$	5,946
Gross margin	1,422			1,182			1,265
Net income	680			499			521

Cummins share of net income	$	308		$	260		$	273
Royalty and interest income	49			41			42
Total equity, royalty and interest from investees	$	357		$	301		$	315

Current assets	$	3,416		$	2,602
Non-current assets	1,379			1,377
Current liabilities	(2,567		)	(1,938		)
Non-current liabilities	(237		)	(232		)
Net assets	$	1,991		$	1,809

Cummins share of net assets	$	1,116		$	927