Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN EQUITY INVESTEES (Details 1) Investments in and Earnings from

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INVESTMENTS IN EQUITY INVESTEES (Details 1) Investments in and Earnings from
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
hp
l
Sep. 30, 2018
USD ($)
Jul. 01, 2018
USD ($)
Apr. 01, 2018
USD ($)
Dec. 31, 2017
USD ($)
Oct. 01, 2017
USD ($)
Jul. 02, 2017
USD ($)
Apr. 02, 2017
USD ($)
Dec. 31, 2018
USD ($)
hp
l
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Equity, royalty and interest income from investees                      
Investments and advances to equity method investees $ 1,222       $ 1,156       $ 1,222 $ 1,156 $ 946
Investment account representing cumulative undistributed income in equity investees 743               743    
Dividends from the unconsolidated equity investees                 242 219 212
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 336 308 260
Royalty and interest income $ 6,126 $ 5,943 $ 6,132 $ 5,570 5,476 $ 5,285 $ 5,078 $ 4,589 23,771 [1] 20,428 [1] 17,509 [1]
Equity, royalty and interest income from investees                 394 357 [2] 301
Tax Legislation Impact to JV Earnings                   (152)  
Proceeds from Sale of Equity Method Investments                 $ 0 0 60
Minimum                      
Equity, royalty and interest income from investees                      
Ownership percentage 20.00%               20.00%    
Maximum                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Manufacturing Entities | Maximum                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Komatsu Manufacturing Alliances                      
Equity, royalty and interest income from investees                      
Investments and advances to equity method investees $ 238       219       $ 238 219  
Komatsu Manufacturing Alliances | Minimum                      
Equity, royalty and interest income from investees                      
Ownership percentage 20.00%               20.00%    
Komatsu Manufacturing Alliances | Maximum                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Manufacturing - Beijing Foton Cummins Engine Co., Ltd.                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Investments and advances to equity method investees $ 203       223       $ 203 223  
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 $ 72 94 52
Beijing Foton Cummins Engine Company (Light-Duty) | Minimum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 2.8               2.8    
Beijing Foton Cummins Engine Company (Light-Duty) | Maximum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 4.5               4.5    
Manufacturing - Dongfeng Cummins Engine Company, Ltd.                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Investments and advances to equity method investees $ 160       146       $ 160 146  
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 $ 58 73 46
Manufacturing - Dongfeng Cummins Engine Company, Ltd. | Minimum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 3.9               3.9    
Power of mechanical engines (in horsepower) | hp 80               80    
Manufacturing - Dongfeng Cummins Engine Company, Ltd. | Maximum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 13               13    
Power of mechanical engines (in horsepower) | hp 680               680    
Manufacturing - Chongqing Cummins Engine Company, Ltd.                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Investments and advances to equity method investees $ 102       84       $ 102 84  
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 $ 51 41 38
Cummins Scania XPI Manufacturing LLC                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Investments and advances to equity method investees $ 101       87       $ 101 87  
Manufacturing Tata Cummins Ltd                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Investments and advances to equity method investees $ 58       59       $ 58 59  
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 $ 14 (7) [3] 6
Manufacturing Tata Cummins Ltd | Minimum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 3.8               3.8    
Power of mechanical engines (in horsepower) | hp 75               75    
Manufacturing Tata Cummins Ltd | Maximum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 8.9               8.9    
Power of mechanical engines (in horsepower) | hp 400               400    
Other Distributors and Manufacturers                      
Equity, royalty and interest income from investees                      
Investments and advances to equity method investees $ 360       338       $ 360 338  
Manufacturing - Cummins Westport, Inc.                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 28 9 [3] 11
Manufacturing - Dongfeng Cummins Emission Solutions Co. Ltd.                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 14 13 9
Manufacturing - All other manufacturers                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 73 56 [3] 43
Distribution - Komatsu Cummins Chile, Ltda.                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 26 30 34
Distribution - North American distributors                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss) [4]                     21
Distribution - All other distributors                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 0 (1) 0
Power Systems                      
Equity, royalty and interest income from investees                      
Investments and advances to equity method investees $ 177       $ 164       177 164 139
Royalty and interest income                 4,626 4,058 3,517
Equity, royalty and interest income from investees                 56 54 $ 42
Power Systems | Cummins Olayan Energy                      
Equity, royalty and interest income from investees                      
Ownership percentage                     49.00%
Equity Method Investment, Amount Sold                     $ 61
Gain (Loss) on Sale of Equity Investments                     17
Proceeds from Sale of Equity Method Investments                     58
Tax Legislation Impact | Manufacturing Tata Cummins Ltd                      
Equity, royalty and interest income from investees                      
Tax Legislation Impact to JV Earnings                   (15)  
Tax Legislation Impact | Manufacturing - Cummins Westport, Inc.                      
Equity, royalty and interest income from investees                      
Tax Legislation Impact to JV Earnings                   (7)  
Tax Legislation Impact | Manufacturing - All other manufacturers                      
Equity, royalty and interest income from investees                      
Tax Legislation Impact to JV Earnings                   (17)  
Royalty                      
Equity, royalty and interest income from investees                      
Royalty and interest income                 $ 58 $ 49 $ 41
[1] Includes sales to nonconsolidated equity investees of $1,267 million, $1,174 million and $1,028 million for the years ended December 31, 2018, 2017 and 2016, respectively.
[2] U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million, $4 million and $12 million for the Engine, Distribution and Components segments, respectively. See Note 4, "INCOME TAXES," for additional information.
[3] U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, including a $7 million unfavorable impact to Cummins Westport, Inc. due to the remeasurement of deferred taxes and $15 million unfavorable impact to Tata Cummins, Ltd. and a $17 million unfavorable impact to "All other manufacturers" due to withholding tax adjustments on foreign earnings. See Note 4, "INCOME TAXES," to our Consolidated Financial Statements for additional information.
[4] During 2016, we acquired the remaining interest in the final unconsolidated North American distributor joint venture.