Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN EQUITY INVESTEES (Tables)

v3.6.0.2
INVESTMENTS IN EQUITY INVESTEES (Tables)
12 Months Ended
Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Summary of investments in and advances to equity investees and our ownership percentage
Investments and advances related to equity method investees and our ownership percentage was as follows:
 
 
 
 
December 31,
In millions
 
Ownership %
 
2016
 
2015
Komatsu alliances
 
20-50%
 
$
197

 
$
173

Beijing Foton Cummins Engine Co., Ltd.
 
50%
 
163

 
172

Dongfeng Cummins Engine Company, Ltd.
 
50%
 
111

 
118

Chongqing Cummins Engine Company, Ltd.
 
50%
 
73

 
80

Cummins-Scania XPI Manufacturing, LLC
 
50%
 
82

 
66

Tata Cummins, Ltd.
 
50%
 
63

 
60

North American distributors (1)
 
50%
 

 
15

Other
 
Various
 
257

 
291

Investments and advances related to equity method investees
 
 
 
$
946

 
$
975


____________________________________
(1) Ownership percentage of North American distributor investments at December 31, 2015.
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees, net of applicable taxes, was as follows:
 
 
Years ended December 31,
In millions
 
2016
 
2015
 
2014
Distribution entities
 
 
 
 
 
 
Komatsu Cummins Chile, Ltda.
 
$
34

 
$
31

 
$
29

North American distributors
 
21

 
33

 
107

All other distributors
 

 
3

 
4

Manufacturing entities
 
 
 
 
 
 
Beijing Foton Cummins Engine Co., Ltd.
 
52

 
62

 
(2
)
Dongfeng Cummins Engine Company, Ltd.
 
46

 
51

 
67

Chongqing Cummins Engine Company, Ltd.
 
38

 
41

 
51

All other manufacturers
 
69

 
52

 
74

Cummins share of net income
 
260

 
273

 
330

Royalty and interest income
 
41

 
42

 
40

Equity, royalty and interest income from investees
 
$
301

 
$
315

 
$
370

Summary of financial information for equity investees
Summary financial information for our equity investees was as follows:
 
 
At and for the years ended December 31,
In millions
 
2016
 
2015
 
2014
Net sales
 
$
5,654

 
$
5,946

 
$
7,426

Gross margin
 
1,182

 
1,265

 
1,539

Net income
 
499

 
521

 
630

 
 
 
 
 
 
 
Cummins share of net income
 
$
260

 
$
273

 
$
330

Royalty and interest income
 
41

 
42

 
40

Total equity, royalty and interest from investees
 
$
301

 
$
315

 
$
370

 
 
 
 
 
 
 
Current assets
 
$
2,602

 
$
2,458

 
 

Non-current assets
 
1,377

 
1,539

 
 

Current liabilities
 
(1,938
)
 
(1,796
)
 
 

Non-current liabilities
 
(232
)
 
(284
)
 
 

Net assets
 
$
1,809

 
$
1,917

 
 

 
 
 
 
 
 
 
Cummins share of net assets
 
$
927

 
$
958