EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

9 Months Ended

Sep. 27, 2020

Equity Method Investments and Joint Ventures [Abstract]

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

NOTE 5. 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
In millions	September 27, 2020			September 29, 2019		September 27, 2020			September 29, 2019
Manufacturing entities
Beijing Foton Cummins Engine Co., Ltd.	$	30		$	15	$	81		$	56
Dongfeng Cummins Engine Company, Ltd.	20			10		54			40
Chongqing Cummins Engine Company, Ltd.	7			10		27			32
All other manufacturers	22		(1)	21		100		(1)(2)	76
Distribution entities
Komatsu Cummins Chile, Ltda.	6			6		23			19
All other distributors	1			1		1			—
Cummins share of net income	86			63		286			223
Royalty and interest income	12			5		56			33
Equity, royalty and interest income from investees	$	98		$	68	$	342		$	256
(1) Includes impairment charges of $10 million and $13 million for the three and nine months ended September 27, 2020, respectively, for a joint venture in the Power Systems segment.
(2) Includes $37 million in adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 6, "INCOME TAXES" for additional information on India Tax Law Change.