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

INVESTMENTS IN EQUITY INVESTEES (Tables)

12 Months Ended

Dec. 31, 2016

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

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⁽¹⁾Ownership percentage of North American distributor investments at December 31, 2015.

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 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