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. 27, 2015

Investments, Debt and Equity Securities [Abstract]

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



	September 27, 2015							December 31, 2014
In millions	Cost		Gross unrealized gains/(losses)			Estimated fair value		Cost		Gross unrealized gains/(losses)		Estimated fair value
Available-for-sale
Level 2⁽¹⁾
Debt mutual funds	$	25	$	—		$	25	$	75	$	1	$	76
Equity mutual funds	9		(1		)	8		9		—		9
Bank debentures	—		—			—		6		—		6
Government debt securities	2		—			2		2		—		2
Total marketable securities	$	36	$	(1	)	$	35	$	92	$	1	$	93

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⁽¹⁾The fair value of Level 2 securities is estimated primarily using actively quoted prices for similar instruments from brokers and observable inputs, including market transactions and third-party pricing services. We do not currently have any Level 3 securities, and there were no transfers between Level 2 or 3 during the first nine months of 2015 and 2014.

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 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Proceeds from sales and maturities of marketable securities	$	73	$	137	$	228	$	316
Gross realized gains from the sale of marketable securities	—		1		1		14

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

At September 27, 2015, the fair value of available-for-sale investments in debt securities that utilize a Level 2 fair value measure by contractual maturity was as follows:



Maturity date	Fair value (in millions)
1 year or less	$	25
1 - 5 years	1
5 - 10 years	1
Total	$	27

- 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