Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN EQUITY INVESTEES (Tables)

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INVESTMENTS IN EQUITY INVESTEES (Tables)
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Summary of investments in and advances to equity investees and our ownership percentage
Investments and advances related to equity method investees and our ownership percentages were as follows:
  Ownership December 31,
Dollars in millions percentage 2022 2021
Komatsu alliances
20-50%
 $ 295  $ 275 
Beijing Foton Cummins Engine Co., Ltd. 50% 189  255 
Sisamex 50% 144  — 
Cummins-Scania XPI Manufacturing, LLC 50% 130  125 
Automotive Axles Limited 36% 125  — 
Chongqing Cummins Engine Company, Ltd. 50% 118  144 
Dongfeng Cummins Engine Company, Ltd. 50% 106  148 
Tata Cummins, Ltd. 50% 92  88 
Freios Master 49% 86  — 
Other Various 474  503 
Investments and advances related to equity method investees   $ 1,759  $ 1,538 
Equity, royalty and interest income from investees
Equity, royalty and interest income from investees, net of applicable taxes, was as follows:
  Years ended December 31,
In millions 2022 2021 2020
Manufacturing entities      
Dongfeng Cummins Engine Company, Ltd. $ 45  $ 82  $ 63 
Beijing Foton Cummins Engine Co., Ltd. 37  112  113 
Chongqing Cummins Engine Company, Ltd. 32  39  35 
Tata Cummins, Ltd. 27  18  19 
(1)
All other manufacturers 28 
(2)
 131  115 
(3)
Distribution entities
Komatsu Cummins Chile, Ltda. 44  32  31 
All other distributors 11  10  2 
Cummins share of net income 224  424  378 
Royalty and interest income 125  82  74 
Equity, royalty and interest income from investees $ 349  $ 506  $ 452 
(1) Includes $18 million in favorable adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 5, "INCOME TAXES" for additional information on India Tax Law Change.
(2) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. In addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. See NOTE 2, "ACQUISITIONS," and NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information.
(3) Includes $19 million in favorable adjustments related to India Tax Law Change, impairment charges of $13 million and loss on sale of business of $8 million for a joint venture in the Power Systems segment. See NOTE 5, "INCOME TAXES" for additional information on India Tax Law Change.
Summary of financial information for equity investees
Summary financial information for our equity investees was as follows:
  Years ended and at December 31,
In millions 2022 2021 2020
Net sales $ 7,501  $ 8,934  $ 7,794 
Gross margin 1,211  1,574  1,418 
Net income 475  802  696 
Cummins share of net income $ 224  $ 424  $ 378 
Royalty and interest income 125  82  74 
Total equity, royalty and interest from investees $ 349  $ 506  $ 452 
Current assets $ 4,252  $ 4,587   
Long-term assets 1,935  1,850   
Current liabilities (3,224) (3,573)  
Long-term liabilities (399) (288)  
Net assets $ 2,564  $ 2,576   
Cummins share of net assets $ 1,715  $ 1,490