Investments in Non-consolidated Affiliates

Investments in non-consolidated affiliates is comprised of our interests in partially-owned affiliates of which our ownership percentages range from 10% to 50%. We do not control these affiliates, but have the ability to exercise significant influence over their operating and financial policies. We account for them using the equity method of accounting. We made new and incremental investments in these non-consolidated affiliates of $25 million and $39 million during 2013 and 2012, respectively.

The following table summarizes 100% of the combined assets, liabilities, and equity of our equity method affiliates as of October 31:



	(Unaudited)
(in millions)	2013		2012
Assets:
Current assets	$	254	$	271
Noncurrent assets	50		199
Total assets	$	304	$	470
Liabilities and equity:
Current liabilities	$	111	$	195
Noncurrent liabilities	8		91
Total liabilities	119		286
Partners' capital and stockholders' equity:
NIC	77		55
Third parties	108		129
Total partners' capital and stockholders' equity	185		184
Total liabilities and equity	$	304	$	470

The following table summarizes 100% of the combined results of operations of our equity method affiliates for the years ended October 31:



	(Unaudited)
(in millions)	2013		2012			2011^(A)
Net sales	$	448	$	704		$	938
Costs, expenses, and income tax expense	412		726			1,069
Net income (loss)	$	36	$	(22	)	$	(131	)

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(A)	Includes amounts for NC² (defined below) through September 29, 2011.

We recorded sales to certain of these affiliates totaling $63 million, $25 million, and $107 million in 2013, 2012, and 2011, respectively. We also purchased $245 million, $370 million, and $426 million of products and services from certain of these affiliates in 2013, 2012, and 2011, respectively.

Amounts due to and due from our affiliates arising from the sale and purchase of products and services as of October 31 are as follows:



(in millions)	2013		2012
Receivables due from affiliates	$	23	$	32
Payables due to affiliates	32		29

As of October 31, 2013 and 2012, our share of net unfunded losses in non-consolidated affiliates totaled $77 million and $68 million, respectively.

In February 2013, the Company sold its interests in the Mahindra Joint Ventures to Mahindra for $33 million. As a result of the divestiture, the Global Operations segment recognized a gain of $26 million in 2013. As part of the transaction, the Company entered into licensing and service agreements with Mahindra.

In September 2009, NC² Global LLC ("NC^2") was established as a joint venture with Caterpillar to develop, manufacture, and distribute conventional and cab-over truck designs to serve the global commercial truck market. In September 2011, we restructured our relationship with Caterpillar resulting in the termination of the joint venture agreement and the Company subsequently acquired all of Caterpillar's ownership interest in NC², thereby increasing the Company's equity interest in NC² from 50% to 100%. The effects of accounting for this acquisition were not material. Prior to the termination of our NC² joint venture agreement with Caterpillar, our 50% interest in NC² was included in Investments in non-consolidated affiliates. Equity in loss of non-consolidated affiliates included a loss of $39 million related to NC² for the year ended October 31, 2011. We have consolidated the operating results of NC² within our North America Truck segment since September 30, 2011.

Presented below is summarized financial information representing 100% of NC², which was considered a significant non-consolidated affiliate in 2011, prior to increasing the equity interest in September 2011.



(in millions)	Eleven Months Ended September 29, 2011
Net revenue	$	235
Net expenses	318
Loss before tax expense	(83		)
Net loss	(83		)