Meritor Acquisition and 2022 Financial Results
Table of Contents
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Chongqing Cummins Engine Company, Ltd. - Chongqing Cummins Engine Company, Ltd. is a joint venture in China with Chongqing Machinery and Electric Co.
Ltd. This joint venture manufactures several models of our heavy-duty and high-horsepower diesel engines primarily serving the industrial and stationary power markets
in China.
Tata Cummins, Ltd. - Tata Cummins, Ltd. is a joint venture in India with Tata Motors Ltd., the largest automotive company in India and a member of the Tata group of
companies. This joint venture manufactures Cummins' 3.80 to 8.9-liter diesel and natural gas engines in India with a power range from75 to 400 horsepower for use in
trucks manufactured by Tata Motors, as well as for various industrial and power generation applications for Cummins.
Distribution Entities
We have an extensive worldwide distributor and dealer network through which we sell and distribute our products and services. Generally, our distributors are divided by
geographic region with some of our distributors being wholly-owned by Cummins, some partially-owned and some independently owned. We consolidate all wholly-owned
distributors and partially-owned distributors where we are the primary beneficiary and account for other partially-owned distributors using the equity method of accounting.
Komatsu Cummins Chile, Ltda. - Komatsu Cummins Chile, Ltda. is a joint venture with Komatsu America Corporation. The joint venture is a distributor that offers the full
range of our products and services to customers and end-users in Chile and Peru.
In certain cases where we own a partial interest in a distributor, we may be obligated to purchase the other equity holders' interests if certain events occur (such as the death or
resignation of the distributor principal or a change in control of Cummins Inc.). The purchase consideration of the equity interests may be determined based on the fair value of
the distributor's assets. Repurchase obligations and practices vary by geographic region.
All distributors that are partially-owned are considered to be related parties in ourConsolidated Financial Statements.
Equity Investee Financial Summary
Summary financial information for our equity investees was as follows:
In millions
Net sales
Gross margin
Net income
2022
Years ended and at December 31,
2021
2020
7,501 $
1,211
8,934 $
1,574
7,794
1,418
475
802
696
Cummins share of net income
$
224
$
424
$
378
Royalty and interest income
125
82
74
Total equity, royalty and interest from investees
$
349
$
506
$
452
Current assets
$
4,252
$
4,587
Long-term assets
1,935
1,850
Current liabilities
(3,224)
(3,573)
Long-term liabilities
Net assets
Cummins share of net assets
NOTE 5. INCOME TAXES
The following table summarizes income before income taxes:
(399)
(288)
$
2,564 $
2,576
$
1,715 $
1,490
In millions
U.S. income
Foreign income
Income before income taxes
87
52
Years ended December 31,
2022
2021
2020
$
1,336 $
1,483
1,251 S
1,500
1,134
1,204
$
2,819 $
2,751 $
2,338View entire presentation