Cummins Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2013

A summary of marketable securities, all of which are classified as current, was as follows:



	December 31,
	2013							2012
In millions	Cost		Gross unrealized gains/(losses)			Estimated fair value		Cost		Gross unrealized gains/(losses)		Estimated fair value
Available-for-sale
Debt mutual funds⁽¹⁾	$	99	$	2		$	101	$	139	$	3	$	142
Bank debentures	2		—			2		45		—		45
Certificates of deposit	22		—			22		47		—		47
Government debt securities-non-U.S.	3		(1		)	2		3		—		3
Corporate debt securities	—		—			—		1		—		1
Equity securities and other⁽²⁾	10		13			23		—		9		9
Total marketable securities	$	136	$	14		$	150	$	235	$	12	$	247

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⁽¹⁾ Contractual maturities are only applicable to debt mutual funds that utilize a Level 2 fair value.

⁽²⁾ In the first quarter of 2013, we realized a $9 million gain on the sale of equity securities.

Schedule of proceeds from sales and maturities and gross realized gains and losses

The proceeds from sales and maturities of marketable securities and gross realized gains from the sale of AFS securities were as follows:



In millions	2013		2012		2011
Proceeds from sales and maturities of marketable securities	$	525	$	585	$	750
Gross realized gains from the sale of available-for-sale securities⁽¹⁾	14		3		3

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⁽¹⁾ Gross realized losses from the sale of available-for-sale securities were immaterial.

Summary of fair value of AFS investments in debt securities by contractual maturity

At December 31, 2013, the fair value of AFS investments in debt securities by contractual maturity was as follows:



	Fair value
Maturity date	(in millions)
1 year or less	$	50
1 - 5 years	4
5 - 10 years	1
Total	$	55

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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