Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN EQUITY INVESTEES (Details 2) Equity Investee Financial Summary

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INVESTMENTS IN EQUITY INVESTEES (Details 2) Equity Investee Financial Summary - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jul. 01, 2018
Apr. 01, 2018
Dec. 31, 2017
Oct. 01, 2017
Jul. 02, 2017
Apr. 02, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Equity, royalty and interest income from investees                      
Net sales for equity investees                 $ 7,352 $ 7,050 $ 5,654
Gross margin                 1,373 1,422 1,182
Net income                 647 680 499
Cummins share of net income                 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
Current assets 3,401       3,416       3,401 3,416  
Non-current assets 1,449       1,379       1,449 1,379  
Current liabilities (2,669)       (2,567)       (2,669) (2,567)  
Non-current liabilities (218)       (237)       (218) (237)  
Net assets 1,963       1,991       1,963 1,991  
Cummins share of net assets $ 1,144       $ 1,116       1,144 1,116  
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.