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, 2023
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 2023 2022
Komatsu alliances
20-50%
 $ 331  $ 295 
Beijing Foton Cummins Engine Co., Ltd. 50% 194  189 
Sisamex 50% 149  144 
Dongfeng Cummins Engine Company, Ltd. 50% 128  106 
Automotive Axles Limited 36% 125  125 
Chongqing Cummins Engine Company, Ltd. 50% 110  118 
Tata Cummins, Ltd. 50% 89  92 
Cummins-Scania XPI Manufacturing, LLC 50% 85  130 
Freios Master 49% 84  86 
Other Various 505  474 
Investments and advances related to equity method investees   $ 1,800  $ 1,759 
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 2023 2022 2021
Manufacturing entities      
Dongfeng Cummins Engine Company, Ltd. $ 65  $ 45  $ 82 
Beijing Foton Cummins Engine Co., Ltd. 47  37  112 
Chongqing Cummins Engine Company, Ltd. 36  32  39 
Tata Cummins, Ltd. 29  27  18 
All other manufacturers 91  28 
(1)
 131 
Distribution entities
Komatsu Cummins Chile, Ltda. 55  44  32 
All other distributors 16  11  10 
Cummins share of net income 339  224  424 
Royalty and interest income 144  125  82 
Equity, royalty and interest income from investees $ 483  $ 349  $ 506 
(1) 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 indefinite suspension of our Russian operations. In addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. See NOTE 24, "ACQUISITIONS," and NOTE 22, "RUSSIAN OPERATIONS," for additional information.
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 2023 2022 2021
Net sales $ 9,998  $ 7,501  $ 8,934 
Gross margin 1,597  1,211  1,574 
Net income 677  475  802 
Cummins share of net income $ 339  $ 224  $ 424 
Royalty and interest income 144  125  82 
Total equity, royalty and interest from investees $ 483  $ 349  $ 506 
Current assets $ 4,922  $ 4,252   
Long-term assets 2,021  1,935   
Current liabilities (3,812) (3,224)  
Long-term liabilities (432) (399)  
Net assets $ 2,699  $ 2,564   
Cummins share of net assets $ 1,786  $ 1,715