Quarterly report pursuant to Section 13 or 15(d)

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

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EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
 9 Months Ended
Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
NOTE 4. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:
Three months ended Nine months ended
  September 30, September 30,
In millions 2024 2023 2024 2023
Manufacturing entities
Chongqing Cummins Engine Company, Ltd. $ 15  $ 7  $ 51  $ 29 
Dongfeng Cummins Engine Company, Ltd. 14  15  51  52 
Beijing Foton Cummins Engine Co., Ltd. 6  8  29  33 
Tata Cummins, Ltd. 6  6  22  21 
All other manufacturers 7  18  41  69 
Distribution entities
Komatsu Cummins Chile, Ltda. 15  13  42  40 
All other distributors 3  3  10  10 
Cummins share of net income 66  70  246  254 
Royalty and interest income 33  48  79  116 
Equity, royalty and interest income from investees $ 99  $ 118  $ 325  $ 370 
In September 2023, our Accelera business signed an agreement to form a joint venture, Amplify Cell Technologies LLC, with Daimler Trucks and Buses US Holding LLC (Daimler Truck), PACCAR Inc. (PACCAR) and EVE Energy to accelerate and localize battery cell production and the battery supply chain in the U.S., including building a 21-gigawatt hour battery production facility in Marshall County, Mississippi. The joint venture will manufacture battery cells for electric commercial vehicles and industrial applications. The joint venture meets the definition of a variable interest entity since the equity-at-risk is not currently sufficient to support the future operations of the joint venture. Accelera, Daimler Truck and PACCAR will each own 30 percent of the joint venture and have two board positions, while EVE Energy will own 10 percent and have one board position. All significant decisions require majority or super-majority approval of the board. As a result, we are not the primary beneficiary of the joint venture, and the joint venture will not be consolidated. We will account for the joint venture using the equity method. Our maximum required contribution (the majority of which is expected to be contributed by 2028) to the joint venture is $830 million, which could be reduced by future government incentives received by the joint venture. As of September 30, 2024, we contributed $126 million. In addition, we are required to purchase 33 percent of the joint venture's output in the future or be subject to certain penalties. The joint venture received all government approvals and began operations in May 2024, but is not expected to begin production until 2027.