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

Quarterly report pursuant to Section 13 or 15(d)

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)

9 Months Ended

Sep. 29, 2013

Investments, Debt and Equity Securities [Abstract]

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



	September 29, 2013						December 31, 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⁾	$	91	$	1	$	92	$	139	$	3	$	142
Bank debentures	9		—		9		45		—		45
Certificates of deposit	36		—		36		47		—		47
Government debt securities-non-U.S.	3		—		3		3		—		3
Corporate debt securities	—		—		—		1		—		1
Equity securities and other⁽²⁾	12		10		22		—		9		9
Total marketable securities	$	151	$	11	$	162	$	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 and losses from the sale of available-for-sale securities were as follows:



	Three months ended				Nine months ended
In millions	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Proceeds from sales and maturities of marketable securities	$	153	$	195	$	433	$	475
Gross realized gains from the sale of available-for-sale securities	1		1		12		4

Summary of fair value of available-for-sale investments with contractual maturities

At September 29, 2013, the fair value of available-for-sale investments with contractual maturities was as follows:



	Fair value
Maturity date	(in millions)
1 year or less	$	68
1-5 years	1
5-10 years	10
Total	$	79

- 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.

+ References + Details