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

INVESTMENTS IN EQUITY INVESTEES (Tables)

12 Months Ended

Dec. 31, 2013

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



		December 31,
In millions	Ownership %	2013		2012
Dongfeng Cummins Engine Company, Ltd.	50%	$	135	$	113
Komatsu alliances	20-50%	132		132
North American distributors	37-50%	114		139
Beijing Foton Cummins Engine Co., Ltd. ⁽¹⁾	50%	103		107
Cummins-Scania XPI Manufacturing, LLC	50%	71		65
Chongqing Cummins Engine Company, Ltd.	50%	67		58
Tata Cummins, Ltd.	50%	50		52
Cummins Olayan Energy	49%	34		34
Shanghai Fleetguard Filter Co., Ltd.	50%	33		31
Guangxi Cummins Industrial Power Co., Ltd.	50%	26		30
Other	Various	166		136
Total		$	931	$	897

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⁽¹⁾ Includes both the Light-duty and the Heavy-duty businesses.

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



	Years ended December 31,
In millions	2013			2012			2011
Distribution Entities
North American distributors	$	129		$	147		$	134
Komatsu Cummins Chile, Ltda.	25			26			22
All other distributors	1			4			4
Manufacturing Entities
Dongfeng Cummins Engine Company, Ltd.	63			52			80
Chongqing Cummins Engine Company, Ltd.	58			61			68
Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty)	(21		)	(13		)	(6		)
Beijing Foton Cummins Engine Co., Ltd. (Light-duty)	17			5			(7		)
Shanghai Fleetguard Filter Co., Ltd.	13			13			15
Tata Cummins, Ltd.	5			11			14
Cummins Westport, Inc.	4			14			14
All other manufacturers	31			27			37
Cummins share of net income	325			347			375
Royalty and interest income	36			37			41
Equity, royalty and interest income from investees	$	361		$	384		$	416

Summary financial information for our equity investees was as follows:



	As of and for the years ended December 31,
In millions	2013			2012			2011
Net sales	$	7,799		$	8,296		$	8,659
Gross margin	1,719			1,870			1,948
Net income	690			747			788

Cummins share of net income	$	325		$	347		$	375
Royalty and interest income	36			37			41
Total equity, royalty and interest from investees	$	361		$	384		$	416

Current assets	$	2,742		$	2,843
Non-current assets	1,794			1,588
Current liabilities	(2,090		)	(2,039		)
Non-current liabilities	(541		)	(431		)
Net assets	$	1,905		$	1,961

Cummins share of net assets	$	967		$	886