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, 2021
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 2021 2020
Komatsu alliances
20-50%
 $ 275  $ 309 
Beijing Foton Cummins Engine Co., Ltd. 50% 255  255 
Dongfeng Cummins Engine Company, Ltd. 50% 148  134 
Chongqing Cummins Engine Company, Ltd. 50% 144  125 
Cummins-Scania XPI Manufacturing, LLC 50% 125  99 
Tata Cummins, Ltd. 50% 88  78 
Other Various 503  441 
Investments and advances related to equity method investees   $ 1,538  $ 1,441 
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 2021 2020 2019
Manufacturing entities      
Beijing Foton Cummins Engine Co., Ltd. $ 112  $ 113  $ 60 
Dongfeng Cummins Engine Company, Ltd. 82  63  52 
Chongqing Cummins Engine Company, Ltd. 39  35  41 
All other manufacturers 149  134 
(1)(2)
 88 
Distribution entities
Komatsu Cummins Chile, Ltda. 32  31  28 
All other distributors 10  2  2 
Cummins share of net income 424  378  271 
Royalty and interest income 82  74  59 
Equity, royalty and interest income from investees $ 506  $ 452  $ 330 
(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:
  Years ended and at December 31,
In millions 2021 2020 2019
Net sales $ 8,934  $ 7,794  $ 7,068 
Gross margin 1,574  1,418  1,274 
Net income 802  696  566 
Cummins share of net income $ 424  $ 378  $ 271 
Royalty and interest income 82  74  59 
Total equity, royalty and interest from investees $ 506  $ 452  $ 330 
Current assets $ 4,587  $ 4,264   
Long-term assets 1,850  1,673   
Current liabilities (3,573) (3,347)  
Long-term liabilities (288) (251)  
Net assets $ 2,576  $ 2,339   
Cummins share of net assets $ 1,490  $ 1,361