Cummins Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

DEBT

DEBT

6 Months Ended

Jun. 30, 2013

DEBT

DEBT

NOTE 10. DEBT

A summary of long-term debt was as follows:

	June 30,			December 31,
In millions	2013			2012
Long-term debt
Export financing loan, 4.5%, due 2013	—			23
Debentures, 6.75%, due 2027	58			58
Debentures, 7.125%, due 2028	250			250
Debentures, 5.65%, due 2098 (effective interest rate 7.48%)	165			165
Credit facilities related to consolidated joint ventures	125			88
Other	75			69
	673			653
Unamortized discount	(35		)	(35		)
Fair value adjustments due to hedge on indebtedness	60			88
Capital leases	99			53
Total long-term debt	797			759
Less: Current maturities of long-term debt	(43		)	(61		)
Long-term debt	$	754		$	698

Principal payments required on long-term debt during the next five years are the following:

	Required Principal Payments
In millions	2013		2014		2015		2016		2017
Payment	$	23	$	46	$	76	$	82	$	14

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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