Reformulating Financial Analysis for Equity Method Investments Cummins Inc. reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures Cummins reports those investments on its balance sheet at $958 million and provides the following financial information on its investee companies in a footnote to its 10-K report. Equity Investee Financial Summary As of and for the years ended Dec. 31 $ millions 2015 2014 2013 Net sales Gross margin Net income Cummins' share of net income Royalty and interest income $5,946 1,265 521 $273 42 $315 $7,426 1,539 630 $330 40 $7,799 1,719 690 $325 36 $361 $370 Total equity, royalty and interest from investees Current assets $2,458 $2,476 Reformulating Financial Analysis for Equity Method Investments Cummins Inc. reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures Cummins reports those investments on its balance sheet at $958 million and provides the following financial information on its investee companies in a footnote to its 10-K report. Equity Investee Financial Summary As of and for the years ended Dec. 31 $ millions 2015 2014 2013 Net sales Gross margin Net income Cummins' share of net income Royalty and interest income $5,946 1,265 521 $273 42 $315 $7,426 1,539 630 $330 40 $7,799 1,719 690 $325 36 $361 $370 Total equity, royalty and interest from investees Current assets $2,458 $2,476