Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN EQUITY INVESTEES (Tables)

v3.20.4
INVESTMENTS IN EQUITY INVESTEES (Tables)
 12 Months Ended
Dec. 31, 2020
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:
    December 31,
Dollars in millions Ownership % 2020 2019
Komatsu alliances
20-50%
 $ 309  $ 267 
Beijing Foton Cummins Engine Co., Ltd. 50% 255  193 
Dongfeng Cummins Engine Company, Ltd. 50% 134  149 
Chongqing Cummins Engine Company, Ltd. 50% 125  110 
Cummins-Scania XPI Manufacturing, LLC 50% 99  96 
Tata Cummins, Ltd. 50% 78  60 
Other Various 441  362 
Investments and advances related to equity method investees   $ 1,441  $ 1,237 
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 2020 2019 2018
Manufacturing entities      
Beijing Foton Cummins Engine Co., Ltd. $ 113  $ 60  $ 72 
Dongfeng Cummins Engine Company, Ltd. 63  52  58 
Chongqing Cummins Engine Company, Ltd. 35  41  51 
All other manufacturers 134 
(1)(2)
 88  129 
Distribution entities
Komatsu Cummins Chile, Ltda. 31  28  26 
All other distributors 2  2  — 
Cummins share of net income 378  271  336 
Royalty and interest income 74  59  58 
Equity, royalty and interest income from investees $ 452  $ 330  $ 394 
(1) Includes $37 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 4, "INCOME TAXES" for additional information on India Tax Law Change.
(2) Includes impairment charges of $13 million and loss on sale of business of $8 million for a joint venture in the Power Systems segment.
Summary of financial information for equity investees
Summary financial information for our equity investees was as follows:
  For the years ended and at December 31,
In millions 2020 2019 2018
Net sales $ 7,794  $ 7,068  $ 7,352 
Gross margin 1,418  1,274  1,373 
Net income 696  566  647 
Cummins share of net income $ 378  $ 271  $ 336 
Royalty and interest income 74  59  58 
Total equity, royalty and interest from investees $ 452  $ 330  $ 394 
Current assets $ 4,264  $ 3,282   
Non-current assets 1,673  1,622   
Current liabilities (3,347) (2,654)  
Non-current liabilities (251) (326)  
Net assets $ 2,339  $ 1,924   
Cummins share of net assets $ 1,361  $ 1,159