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

INVESTMENTS IN EQUITY INVESTEES (Tables)

12 Months Ended

Dec. 31, 2014

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



		December 31,
In millions	Ownership %	2014		2013
Komatsu alliances	20-50%	$	160	$	132
Dongfeng Cummins Engine Company, Ltd.	50%	136		135
Beijing Foton Cummins Engine Co., Ltd. ⁽¹⁾	50%	117		103
Chongqing Cummins Engine Company, Ltd.	50%	92		67
Cummins-Scania XPI Manufacturing, LLC	50%	85		71
Tata Cummins, Ltd.	50%	57		50
North American distributors ⁽²⁾	49-50%	41		114
Other	Various	293		259
Total		$	981	$	931

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⁽¹⁾ Includes both the light-duty and the heavy-duty businesses.

⁽²⁾ Current ownership percentage of North American distributor investments as of December 31, 2014.

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



	Years ended December 31,
In millions	2014			2013			2012
Distribution Entities
North American distributors	$	107		$	129		$	147
Komatsu Cummins Chile, Ltda.	29			25			26
All other distributors	4			1			4
Manufacturing Entities
Dongfeng Cummins Engine Company, Ltd.	67			63			52
Chongqing Cummins Engine Company, Ltd.	51			58			61
Beijing Foton Cummins Engine Co., Ltd. (Light-duty)	28			17			5
Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty)	(30		)	(21		)	(13		)
All other manufacturers	74			53			65
Cummins share of net income	330			325			347
Royalty and interest income	40			36			37
Equity, royalty and interest income from investees	$	370		$	361		$	384

Summary financial information for our equity investees was as follows:



	As of and for the years ended December 31,
In millions	2014			2013			2012
Net sales	$	7,426		$	7,799		$	8,296
Gross margin	1,539			1,719			1,870
Net income	630			690			747

Cummins share of net income	$	330		$	325		$	347
Royalty and interest income	40			36			37
Total equity, royalty and interest from investees	$	370		$	361		$	384

Current assets	$	2,476		$	2,742
Non-current assets	1,667			1,794
Current liabilities	(1,875		)	(2,090		)
Non-current liabilities	(420		)	(541		)
Net assets	$	1,848		$	1,905

Cummins share of net assets	$	956		$	967