Analyzing and Interpreting Disclosures on Equity Method Investments Cummins Inc. (CMI) reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures. Cummins reports those investments on its balance sheet at $886 million, and provides the following financial information of its investee companies in a footnote to its 10-K report:

Equity Investee Financial Summary As of and for the years ended December 31,

In millions 2012 2011 2010

Net sales $8,296 $ 8,659 $ 7,107

Gross margin 1,870 1,948 1,651

Net income 747 788 668

Cummins share of net income $ 347 $ 375 $ 321

Royalty and interest income 37 41 30

Total equity, royalty and interest income from investees $ 384 $ 416 $ 351

Current assets $ 2,843 $ 2,892

Noncurrent assets 1,588 1,440

Current liabilities (2,039) (2,055)

Noncurrent liabilities (431) (391)

Net assets $ 1,961 $ 1,886

Cummins share of net assets $ 886 $ 885

(a) What assets and liabilities of unconsolidated affiliates are omitted from Cummins balance sheet as a result of the equity method of accounting for those investments?

Assets = $Answer million

Liabilities = $Answer million