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INVESTMENTS IN EQUITY INVESTEES (Tables) | 12 Months Ended
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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 |  |  |

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- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
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