Meritor Acquisition and 2022 Financial Results
Table of Contents
We have approximately $851 million in our investment account at December 31, 2022, that represents cumulative undistributed income in our equity investees. Dividends
received from our unconsolidated equity investees were $318 million, $336 million and $271 million in 2022, 2021 and 2020, respectively.
Equity, royalty and interest income from investees, net of applicable taxes, was as follows:
In millions
Manufacturing entities
Dongfeng Cummins Engine Company, Ltd.
Beijing Foton Cummins Engine Co., Ltd.
Chongqing Cummins Engine Company, Ltd.
Tata Cummins, Ltd.
All other manufacturers
Distribution entities
Komatsu Cummins Chile, Ltda.
All other distributors
Cummins share of net income
Royalty and interest income
Equity, royalty and interest income from investees
$
$
2022
Years ended December 31,
2021
2020
45
82
$
63
37
112
113
32
39
35
27
18
19 (1)
28 (2)
131
115 (3)
44
32
31
11
10
2
224
424
378
125
82
74
349
$
506 $
452
(1) Includes $18 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 5,
"INCOME TAXES" for additional information on India Tax Law Change.
(2) Includes a $28 million impairment of our joint venture with KAMAZ and $ 3 million of royalty charges as part of our costs associated with the suspension of our Russian operations. In
addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Westport JV. See NOTE 2, "ACQUISITIONS," and NOTE 23, "RUSSIAN OPERATIONS," to our
Consolidated Financial Statements for additional information.
(3) Includes $19 million in favorable adjustments related to India Tax Law Change, impairment charges of $ 13 million and loss on sale of business of $8 million for a joint venture in the
Power Systems segment. See NOTE 5, "INCOME TAXES" for additional information on India Tax Law Change.
Manufacturing Entities
Our manufacturing joint ventures were generally formed with customers and are primarily intended to allow us to increase our market penetration in geographic regions, reduce
capital spending, streamline our supply chain management and develop technologies. Our largest manufacturing joint ventures are based in China and are included in the list
below. Our engine manufacturing joint ventures are supplied by our Components segment in the same manner as it supplies our wholly-owned Engine segment and Power
Systems segment manufacturing facilities. Our Components segment joint ventures and wholly-owned entities provide electronics, fuel systems, filtration, aftertreatment
systems, turbocharger products, axles, drivelines, braking systems and automated transmissions that are used with our engines as well as some competitors' products. The results
and investments in our joint ventures in which we have 50 percent or less ownership interest (except for Eaton Cummins Automated Transmission Technologies joint venture,
which is consolidated due to our majority voting interest) are included in equity, royalty and interest income from investees and investments and advances related to equity
method investees in our Consolidated Statements of Net Income and Consolidated Balance Sheets, respectively.
Beijing Foton Cummins Engine Co., Ltd. -Beijing Foton Cummins Engine Co., Ltd. is a joint venture in China with Beiqi Foton Motor Co., Ltd., a commercial vehicle
manufacturer, which has two distinct lines of business - a light-duty business and a heavy-duty business. The light-duty business produces our families of ISF 2.5 liter to
4.5 liter high performance light-duty diesel engines in Beijing. These engines are used in light-duty and medium-duty commercial trucks, pick-up trucks, buses,
multipurpose and sport utility vehicles with main markets in China and Brazil. Certain types of small construction equipment and industrial applications are also served
by these engine families. The heavy-duty business produces the X11, X12, X13 and X15, ranging from 10.5 liter to 14.5 liter, high performance heavy-duty diesel
engines and natural gas engines in Beijing. Certain types of construction equipment and industrial applications are also served by these engine families.
Dongfeng Cummins Engine Company, Ltd. -Dongfeng Cummins Engine Company, Ltd. (DCEC) is a joint venture in China with Dongfeng Automotive Co. Ltd., a
subsidiary of Dongfeng Motor Corporation and one of the largest medium-duty and heavy-duty truck manufacturers in China. DCEC produces 3.9 liter to 14.5 liter
diesel engines with a power range from 80 to 760 horsepower, natural gas engines and automated transmissions. On-highway engines are used in multiple applications in
light-duty and medium-duty trucks, special purpose vehicles, buses and heavy-duty trucks with a main market in China. Off-highway engines are used in a variety of
construction, power generation, marine and agriculture markets in China.
86View entire presentation