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

INVESTMENTS IN EQUITY INVESTEES (Tables)

12 Months Ended

Dec. 31, 2015

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



		December 31,
In millions	Ownership %	2015		2014
Komatsu alliances	20-50%	$	173	$	160
Beijing Foton Cummins Engine Co., Ltd.	50%	172		117
Dongfeng Cummins Engine Company, Ltd.	50%	118		136
Chongqing Cummins Engine Company, Ltd.	50%	80		92
Cummins-Scania XPI Manufacturing, LLC	50%	66		85
Tata Cummins, Ltd.	50%	60		57
North American distributors ⁽¹⁾	50%	15		41
Other	Various	291		293
Total		$	975	$	981

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



	Years ended December 31,
In millions	2015		2014			2013
Distribution Entities
North American distributors	$	33	$	107		$	129
Komatsu Cummins Chile, Ltda.	31		29			25
All other distributors	3		4			1
Manufacturing Entities
Beijing Foton Cummins Engine Co., Ltd.	62		(2		)	(4		)
Dongfeng Cummins Engine Company, Ltd.	51		67			63
Chongqing Cummins Engine Company, Ltd.	41		51			58
All other manufacturers	52		74			53
Cummins share of net income	273		330			325
Royalty and interest income	42		40			36
Equity, royalty and interest income from investees	$	315	$	370		$	361

Summary financial information for our equity investees was as follows:



	At and for the years ended December 31,
In millions	2015			2014			2013
Net sales	$	5,946		$	7,426		$	7,799
Gross margin	1,265			1,539			1,719
Net income	521			630			690

Cummins share of net income	$	273		$	330		$	325
Royalty and interest income	42			40			36
Total equity, royalty and interest from investees	$	315		$	370		$	361

Current assets	$	2,458		$	2,476
Non-current assets	1,539			1,667
Current liabilities	(1,796		)	(1,875		)
Non-current liabilities	(284		)	(420		)
Net assets	$	1,917		$	1,848

Cummins share of net assets	$	958		$	956