?
Industrial market sales decreased primarily due to a 36 percent reduction in global mining shipments as a result of lower commodity prices and a 37 percent decline in engine shipments to North American oil and gas markets, partially offset by increased shipments to the Western European construction markets as a result of the pre-buy activity in 2013 ahead of the Tier IV emission regulations beginning in the first quarter of 2014.  ?
Foreign currency fluctuations unfavorably impacted sales.
The decreases above were partially offset by the following: ?
Medium-duty truck engine sales increased due to market share gains in the North American medium-duty truck market and improved demand in the Brazilian and European truck markets.
The improved sales in Brazil were primarily due to lower sales in the first half of 2012 as the result of the implementation of the Euro V emission regulations beginning in the first quarter of 2012.
Total on-highway-related sales for 2013 were 62 percent of total engine segment sales, compared to 59 percent in 2012.
Segment EBIT Engine segment EBIT decreased versus 2012, primarily due to lower gross margin, partially offset by lower research, development and engineering expenses and higher equity, royalty and interest income from investees.
Engine segment EBIT for 2012 included restructuring and other charges of $20 million in the fourth quarter of 2012.
Major components of EBIT and related changes to segment EBIT and EBIT as a percentage of sales were as follows:
## Table 0 ##
The decrease in gross margin versus 2012 was primarily due to unfavorable product mix and lower high-horsepower volumes, partially offset by improved price realization, decreased material and commodity costs and favorable foreign currency fluctuations.
The decrease in selling, general and administrative expenses was primarily due to lower discretionary spending and the absence of restructuring charges incurred in 2012, partially offset by increased headcount.
The decrease in research, development and engineering expenses was primarily due to lower discretionary spending in 2013, partially offset by increases in new product development spending and increased headcount to support our strategic growth initiatives.
The increase in equity, royalty and interest income from investees was primarily due to increased earnings at Beijing Foton Cummins Engine Co. , Ltd.  within the light-duty business and Dongfeng Cummins Engine Company, Ltd, partially offset by decreased earnings at Cummins Westport, Inc.  and larger losses at Beijing Foton Cummins Engine Company, Ltd.  (Heavy-duty) in anticipation of production in the second quarter of 2014.2012 vs.  2011 Sales Engine segment sales decreased versus 2011 due to lower demand in the industrial and medium-duty truck and bus businesses, partially offset by growth in the heavy-duty truck and light-duty automotive and RV businesses.
The following are the primary drivers by market: ?
Industrial market sales decreased primarily due to a 53 percent decline in construction engine shipments in international markets, including a 72 percent decline in China, and a 44 percent decline in engine shipments to the North American oil and gas markets due to weakened natural gas prices, which were partially offset by a 4 percent increase in engine shipments in the North American construction market.
Table of Contents 39 OPERATING SEGMENT RESULTS Our reporting structure is organized according to the products and markets each segment serves.
We use segment EBIT as the primary basis for the Chief Operating Decision Maker (CODM) to evaluate the performance of each of our operating segments.
As previously announced, beginning with the second quarter of 2016, we realigned certain of our reportable segments to be consistent with changes to our organizational structure and how the CODM monitors the performance of our segments.
We reorganized our business to combine our Power Generation segment and our high-horsepower engine business to create the new Power Systems segment.
Our reportable operating segments consist of Engine, Distribution, Components and Power Systems.
We began to report results for our new reporting structure in the second quarter of 2016 and also reflected this change for historical periods.
The formation of the Power Systems segment combined two businesses that were already strongly interdependent, which will allow us to streamline business and technical processes to accelerate innovation, grow market share and more efficiently manage our supply chain and manufacturing operations.
We allocate certain common costs and expenses, primarily corporate functions, among segments.
These include certain costs and expenses of shared services, such as information technology, human resources, legal, finance and supply chain management.
In addition to the reorganization noted above, we reevaluated the allocation of these costs, considering the new segment structure created in April 2016 and adjusted our allocation methodology accordingly.
The revised methodology, which is based on a combination of relative segment sales and relative service usage levels, is effective for the periods beginning after January 1, 2016 and resulted in the revision of our segment operating results, including segment EBIT, for all four segments for the first quarter of 2016 with a greater share of costs allocated to the Distribution and Components segments than in previous years.
Prior periods were not revised for the new allocation methodology.
These changes had no impact on our consolidated results.
Following is a discussion of results for each of our operating segments.
Engine Segment Results Financial data for the Engine segment was as follows:
## Table 1 ##
____________________________________ "NM" - not meaningful information (1) Due to the acquisitions of North American distributors, sales previously recognized as external sales are now included in intersegment sales.
(2) See respective sections of "Results of Operations" for additional information.
In the second quarter of 2016, in conjunction with the reorganization of our segments, our Engine segment reorganized its reporting structure as follows: ?
Heavy-duty truck - We manufacture diesel and natural gas engines that range from 310 to 605 horsepower serving global heavy-duty truck customers worldwide, primarily in North America, Latin America and Australia
Table of Contents 76 In February 2016, the FASB amended its standards related to the accounting for leases.
Under the new standard, lessees will now be required to recognize substantially all leases on the balance sheet as both a right-of-use-asset and a liability.
The standard will continue to have two types of leases for income statement recognition purposes: operating leases and finance leases.
Operating leases will result in the recognition of a single lease expense on a straight-line basis over the lease term similar to the treatment for operating leases under today's standards.
Finance leases will result in an accelerated expense similar to the accounting for capital leases under today's standards.
The determination of a lease classification as operating or finance will be done in a manner similar to today's standard.
The new standard also contains amended guidance regarding the identification of embedded leases in service contracts and the identification of lease and non-lease components in an arrangement.
The new standard is effective on January 1, 2019, with early adoption permitted.
We are still evaluating the impact the standard could have on our Consolidated Financial Statements; however, while we have not yet quantified the amount, we do expect the standard will have a material impact on our Consolidated Balance Sheets due to the recognition of additional assets and liabilities for operating leases.
In January 2016, the FASB amended its standards related to the accounting for certain financial instruments.
This amendment addresses certain aspects of recognition, measurement, presentation and disclosure.
The new rules will become effective for annual and interim periods beginning after December 15, 2017.
Early adoption is not permitted.
We are in the process of evaluating the impact the amendment will have on our Consolidated Financial Statements.
In May 2014, the FASB amended its standards related to revenue recognition.
This amendment replaces all existing revenue recognition guidance and provides a single, comprehensive revenue recognition model for all contracts with customers.
The standard contains principles that we will apply to determine the measurement of revenue and timing of when it is recognized.
The underlying principle is that we will recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that we expect to be entitled to in exchange for those goods or services.
The guidance provides a fivestep analysis of transactions to determine when and how revenue is recognized.
Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances.
The amendment also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in those judgments and assets recognized from costs incurred to fulfill a contract.
The standard allows either full or modified retrospective adoption effective for annual and interim periods beginning January 1, 2018.
We are in the process of evaluating the impact the amendment will have on our Consolidated Financial Statements.
We expect to adopt the standard using the modified retrospective approach.
While we have not yet completed our evaluation process, we have identified that a change will be required related to our accounting for remanufactured product sales that include an exchange of the used product, referred to as core.
Revenue is not currently recognized related to the core component unless the used product is not returned.
Under the new standard, the transaction will be accounted for as a gross sale and a purchase of inventory.
As a result the exchange will increase both sales and cost of sales, in equal amounts, related to the used core.
This will not impact gross margin dollars, but will impact the gross margin percentage.
We are still quantifying the amount of this change.
We have also identified transactions where revenue recognition is currently limited to the amount of billings not contingent on our future performance.
With the allocation provisions of the new model, we expect to accelerate the timing of revenue recognition for amounts related to satisfied performance obligations that would have been delayed under the current guidance.
We do not expect the impact of this change to be material, but we are still quantifying the impact.
NOTE 2.
INVESTMENTS IN EQUITY INVESTEES Investments and advances related to equity method investees and our ownership percentage was as follows:
## Table 2 ##
(1) Ownership percentage of North American distributor investments at December 31, 2015.
Table of Contents 77 Equity, royalty and interest income from investees, net of applicable taxes, was as follows:

<table><tr><td></td><td colspan="3">Year ended December 31, 2013 vs. 2012 Favorable/(Unfavorable) Change</td></tr><tr><td>In millions</td><td>Amount</td><td>Percent</td><td>Percentage point changeas a percent of sales</td></tr><tr><td>Gross margin</td><td>$-237</td><td>-10%</td><td>-0.7</td></tr><tr><td>Selling, general and administrative expenses</td><td>1</td><td>—%</td><td>-0.5</td></tr><tr><td>Research, development and engineering expenses</td><td>17</td><td>4%</td><td>-0.2</td></tr><tr><td>Equity, royalty and interest income from investees</td><td>9</td><td>7%</td><td>0.2</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td colspan="4">Favorable/(Unfavorable)</td></tr><tr><td></td><td colspan="3">Years ended December 31,</td><td colspan="2">2016 vs. 2015</td><td colspan="2">2015 vs. 2014</td></tr><tr><td>In millions</td><td>2016</td><td>2015</td><td>2014</td><td>Amount</td><td>Percent</td><td>Amount</td><td>Percent</td></tr><tr><td>External sales<sup>-1</sup></td><td>$5,774</td><td>$6,733</td><td>$7,462</td><td>$-959</td><td>-14%</td><td>$-729</td><td>-10%</td></tr><tr><td>Intersegment sales<sup>-1</sup></td><td>2,030</td><td>1,937</td><td>1,505</td><td>93</td><td>5%</td><td>432</td><td>29%</td></tr><tr><td>Total sales</td><td>7,804</td><td>8,670</td><td>8,967</td><td>-866</td><td>-10%</td><td>-297</td><td>-3%</td></tr><tr><td>Depreciation and amortization</td><td>163</td><td>187</td><td>163</td><td>24</td><td>13%</td><td>-24</td><td>-15%</td></tr><tr><td>Research, development and engineering expenses</td><td>226</td><td>263</td><td>265</td><td>37</td><td>14%</td><td>2</td><td>1%</td></tr><tr><td>Equity, royalty and interest income from investees</td><td>148</td><td>146</td><td>118</td><td>2</td><td>1%</td><td>28</td><td>24%</td></tr><tr><td>Interest income</td><td>10</td><td>11</td><td>9</td><td>-1</td><td>-9%</td><td>2</td><td>22%</td></tr><tr><td>Loss contingency charges<sup>-2</sup></td><td>138</td><td>60</td><td>—</td><td>-78</td><td>NM</td><td>-60</td><td>NM</td></tr><tr><td>Impairment of light-duty diesel assets<sup>-2</sup></td><td>—</td><td>202</td><td>—</td><td>202</td><td>NM</td><td>-202</td><td>NM</td></tr><tr><td>Restructuring actions and other charges<sup>-2</sup></td><td>—</td><td>17</td><td>—</td><td>17</td><td>NM</td><td>-17</td><td>NM</td></tr><tr><td>Segment EBIT</td><td>686</td><td>636</td><td>1,031</td><td>50</td><td>8%</td><td>-395</td><td>-38%</td></tr><tr><td></td><td></td><td></td><td></td><td colspan="2">Percentage Points</td><td colspan="2">Percentage Points</td></tr><tr><td>Segment EBIT as a percentage of total sales</td><td>8.8%</td><td>7.3%</td><td>11.5%</td><td></td><td>1.5</td><td></td><td>-4.2</td></tr></table>
<table><tr><td></td><td></td><td colspan="2">December 31,</td></tr><tr><td>In millions</td><td>Ownership %</td><td>2016</td><td>2015</td></tr><tr><td>Komatsu alliances</td><td>20-50%</td><td>$197</td><td>$173</td></tr><tr><td>Beijing Foton Cummins Engine Co., Ltd.</td><td>50%</td><td>163</td><td>172</td></tr><tr><td>Dongfeng Cummins Engine Company, Ltd.</td><td>50%</td><td>111</td><td>118</td></tr><tr><td>Chongqing Cummins Engine Company, Ltd.</td><td>50%</td><td>73</td><td>80</td></tr><tr><td>Cummins-Scania XPI Manufacturing, LLC</td><td>50%</td><td>82</td><td>66</td></tr><tr><td>Tata Cummins, Ltd.</td><td>50%</td><td>63</td><td>60</td></tr><tr><td>North American distributors<sup>-1</sup></td><td>50%</td><td>—</td><td>15</td></tr><tr><td>Other</td><td>Various</td><td>257</td><td>291</td></tr><tr><td>Investments and advances related to equity method investees</td><td></td><td>$946</td><td>$975</td></tr></table>

Question: If Total sales develops with the same increasing rate in 2016, what will it reach in 2017? (in million)
Answer: 7024.50012