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, 2019
USD ($)
hp
l
Sep. 29, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jul. 01, 2018
USD ($)
Apr. 01, 2018
USD ($)
Dec. 31, 2019
USD ($)
hp
l
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Equity, royalty and interest income from investees                      
Investments and advances to equity method investees $ 1,237       $ 1,222       $ 1,237 $ 1,222 $ 1,156
Investment account representing cumulative undistributed income in equity investees 758               758    
Dividends from the unconsolidated equity investees                 260 242 219
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 271 336 308
Royalty and interest income $ 5,578 $ 5,768 $ 6,221 $ 6,004 6,126 $ 5,943 $ 6,132 $ 5,570 23,571 [1] 23,771 [1] 20,428 [1]
Equity, royalty and interest income from investees                 $ 330 394 357 [2]
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 $ 267       238       $ 267 238  
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 $ 193       203       $ 193 203  
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 $ 60 72 94
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    
Beijing Foton Cummins Engine Company (Heavy-Duty) | Minimum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 10.5               10.5    
Beijing Foton Cummins Engine Company (Heavy-Duty) | Maximum                      
Equity, royalty and interest income from investees                      
Capacity of mechanical engines (in liters) | l 12.9               12.9    
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 $ 149       160       $ 149 160  
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 $ 52 58 73
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 14               14    
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 $ 110       102       $ 110 102  
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 $ 41 51 41
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 $ 96       101       $ 96 101  
Tata Cummins Ltd                      
Equity, royalty and interest income from investees                      
Ownership percentage 50.00%               50.00%    
Investments and advances to equity method investees $ 60       58       $ 60 58  
Other Distributors and Manufacturers                      
Equity, royalty and interest income from investees                      
Investments and advances to equity method investees $ 362       $ 360       362 360  
Manufacturing - All other manufacturers                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 88 129 71 [3]
Distribution - Komatsu Cummins Chile, Ltda.                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 28 26 30
Distribution - All other distributors                      
Equity, royalty and interest income from investees                      
Equity Method Investment, Summarized Financial Information, Net Income (Loss)                 2   (1)
Tax Legislation Impact | Manufacturing - All other manufacturers                      
Equity, royalty and interest income from investees                      
Tax Legislation Impact to JV Earnings                     (39)
Royalty                      
Equity, royalty and interest income from investees                      
Royalty and interest income                 $ 59 $ 58 $ 49
[1]
Includes sales to nonconsolidated equity investees of $1,191 million, $1,267 million and $1,174 million for the years ended December 31, 2019, 2018 and 2017, 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 5, "INCOME TAXES," for additional information.
[3] Tax legislation passed in December 2017 decreased our equity earnings at certain equity investees by $39 million due to withholding tax adjustments on foreign earnings and remeasurement of deferred taxes. See Note 5, "INCOME TAXES," to our Consolidated Financial Statements for additional information.