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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
cmi-20220331_g1.jpg
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2022
 
Commission File Number 1-4949
CUMMINS INC.
(Exact name of registrant as specified in its charter)
Indiana35-0257090
(State of Incorporation)  (IRS Employer Identification No.)
500 Jackson Street
Box 3005
Columbus, Indiana 47202-3005
(Address of principal executive offices)
 
Telephone (812377-5000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common stock, $2.50 par valueCMINew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files).  Yes x  No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.  (Check one):
Large Accelerated FilerxAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No x
 
As of March 31, 2022, there were 141,097,817 shares of common stock outstanding with a par value of $2.50 per share.

1

Table of Contents
CUMMINS INC. AND SUBSIDIARIES
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
 
  Page
  
 Condensed Consolidated Statements of Net Income for the three months ended March 31, 2022 and April 4, 2021
 Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and April 4, 2021
 Condensed Consolidated Balance Sheets at March 31, 2022 and December 31, 2021
 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and April 4, 2021
 Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2022 and April 4, 2021
 
  
 

2

Table of Contents
PART I.  FINANCIAL INFORMATION 
ITEM 1.  Condensed Consolidated Financial Statements 

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
 Three months ended
In millions, except per share amounts March 31,
2022
April 4,
2021
NET SALES (a) (Note 2)
$6,385 $6,092 
Cost of sales (Note 3)4,853 4,606 
GROSS MARGIN 1,532 1,486 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses 615 574 
Research, development and engineering expenses 298 260 
Equity, royalty and interest income from investees (Notes 3 and 5)96 166 
Other operating expense, net (Note 3)111 8 
OPERATING INCOME 604 810 
Interest expense 17 28 
Other (expense) income, net (9)1 
INCOME BEFORE INCOME TAXES 578 783 
Income tax expense (Note 6)155 172 
CONSOLIDATED NET INCOME 423 611 
Less: Net income attributable to noncontrolling interests5 8 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $418 $603 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.   
Basic $2.94 $4.10 
Diluted $2.92 $4.07 
 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING   
Basic 142.2 147.0 
Dilutive effect of stock compensation awards 0.9 1.3 
Diluted 143.1 148.3 
(a) Includes sales to nonconsolidated equity investees of $344 million for the three months ended March 31, 2022, compared with $478 million for the comparable period in 2021.

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
3

Table of Contents
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
 Three months ended
In millions March 31,
2022
April 4,
2021
CONSOLIDATED NET INCOME $423 $611 
Other comprehensive income (loss), net of tax (Note 13)  
Change in pension and other postretirement defined benefit plans 16 29 
Foreign currency translation adjustments 4 (56)
Unrealized gain on derivatives 28 72 
Total other comprehensive income, net of tax 48 45 
COMPREHENSIVE INCOME 471 656 
Less: Comprehensive (loss) income attributable to noncontrolling interests (3)8 
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC. $474 $648 
 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
4

Table of Contents
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In millions, except par valueMarch 31,
2022
December 31,
2021
ASSETS  
Current assets   
Cash and cash equivalents $2,276 $2,592 
Marketable securities (Note 7)527 595 
Total cash, cash equivalents and marketable securities 2,803 3,187 
Accounts and notes receivable, net
Trade and other 3,969 3,565 
Nonconsolidated equity investees 399 425 
Inventories (Note 8)4,586 4,355 
Prepaid expenses and other current assets 839 777 
Total current assets 12,596 12,309 
Long-term assets   
Property, plant and equipment 9,333 9,358 
Accumulated depreciation (4,952)(4,936)
Property, plant and equipment, net 4,381 4,422 
Investments and advances related to equity method investees 1,592 1,538 
Goodwill 1,286 1,287 
Other intangible assets, net 917 900 
Pension assets (Note 4)1,506 1,488 
Other assets (Note 9)1,844 1,766 
Total assets $24,122 $23,710 
LIABILITIES  
Current liabilities   
Accounts payable (principally trade) $3,497 $3,021 
Loans payable (Note 10)243 208 
Commercial paper (Note 10)311 313 
Accrued compensation, benefits and retirement costs 411 683 
Current portion of accrued product warranty (Note 11)798 755 
Current portion of deferred revenue (Note 2)883 855 
Other accrued expenses (Note 9)1,300 1,190 
Current maturities of long-term debt (Note 10)69 59 
Total current liabilities 7,512 7,084 
Long-term liabilities   
Long-term debt (Note 10)3,502 3,579 
Pensions and other postretirement benefits (Note 4)593 604 
Accrued product warranty (Note 11)709 684 
Deferred revenue (Note 2)877 850 
Other liabilities (Note 9)1,566 1,508 
Total liabilities $14,759 $14,309 
Commitments and contingencies (Note 12)
 
EQUITY
Cummins Inc. shareholders’ equity   
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued
$2,411 $2,427 
Retained earnings 16,952 16,741 
Treasury stock, at cost, 81.4 and 80.0 shares
(9,412)(9,123)
Accumulated other comprehensive loss (Note 13)(1,515)(1,571)
Total Cummins Inc. shareholders’ equity 8,436 8,474 
Noncontrolling interests 927 927 
Total equity $9,363 $9,401 
Total liabilities and equity $24,122 $23,710 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Three months ended
In millionsMarch 31,
2022
April 4,
2021
CASH FLOWS FROM OPERATING ACTIVITIES  
Consolidated net income $423 $611 
Adjustments to reconcile consolidated net income to net cash provided by operating activities   
Depreciation and amortization161 170 
Deferred income taxes(66)8 
Equity in income of investees, net of dividends (76)(136)
Pension and OPEB expense (Note 4)9 20 
Pension contributions and OPEB payments (Note 4)(43)(51)
Share-based compensation expense 5 8 
Russian suspension costs (Note 3)158  
Asset impairments and other charges 36  
Loss on corporate owned life insurance 37 32 
Foreign currency remeasurement and transaction exposure (7)1 
Changes in current assets and liabilities, net of acquisitions  
Accounts and notes receivable (417)(374)
Inventories (289)(336)
Other current assets (57)(24)
Accounts payable 484 465 
Accrued expenses (251)(24)
Changes in other liabilities 70 — 
Other, net (13)(31)
Net cash provided by operating activities 164 339 
CASH FLOWS FROM INVESTING ACTIVITIES   
Capital expenditures (104)(87)
Investments in internal use software (11)(11)
Investments in and advances to equity investees (32)(24)
Acquisition of a business, net of cash acquired (Note 14)83  
Investments in marketable securities—acquisitions (197)(143)
Investments in marketable securities—liquidations (Note 7)254 207 
Cash flows from derivatives not designated as hedges (2)14 
Other, net (1)19 
Net cash used in investing activities (10)(25)
CASH FLOWS FROM FINANCING ACTIVITIES   
Net payments of commercial paper (2)(6)
Payments on borrowings and finance lease obligations (24)(16)
Net borrowings (payments) under short-term credit agreements 29 (102)
Distributions to noncontrolling interests (14)(13)
Dividend payments on common stock (207)(197)
Repurchases of common stock (311)(418)
Proceeds from issuing common stock 9 18 
Other, net 23 (11)
Net cash used in financing activities (497)(745)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 27 (12)
Net decrease in cash and cash equivalents(316)(443)
Cash and cash equivalents at beginning of year 2,592 3,401 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,276 $2,958 

 The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
 
Three months ended
In millions, except per share amountsCommon StockAdditional Paid-in CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Cummins Inc. Shareholders’ EquityNoncontrolling InterestsTotal Equity
BALANCE AT DECEMBER 31, 2021$556 $1,871 $16,741 $(9,123)$(1,571)$8,474 $927 $9,401 
Net income 418 418 5 423 
Other comprehensive income (loss), net of tax (Note 13)56 56 (8)48 
Repurchases of common stock(311)(311) (311)
Cash dividends on common stock, $1.45 per share
(207)(207) (207)
Distributions to noncontrolling interests  (14)(14)
Share-based awards (9)18 9  9 
Other shareholder transactions (7)4 (3)17 14 
BALANCE AT MARCH 31, 2022$556 $1,855 $16,952 $(9,412)$(1,515)$8,436 $927 $9,363 
BALANCE AT DECEMBER 31, 2020$556 $1,848 $15,419 $(7,779)$(1,982)$8,062 $927 $8,989 
Net income603 603 8 611 
Other comprehensive income, net of tax (Note 13)45 45  45 
Repurchases of common stock(418)(418)— (418)
Cash dividends on common stock, $1.35 per share
(197)(197)— (197)
Distributions to noncontrolling interests— (13)(13)
Share-based awards(6)24 18 — 18 
Other shareholder transactions(5)1 (4)— (4)
BALANCE AT APRIL 4, 2021$556 $1,837 $15,825 $(8,172)$(1,937)$8,109 $922 $9,031 
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.




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CUMMINS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Overview
Cummins Inc. (“Cummins,” “we,” “our” or “us”) was founded in 1919 as Cummins Engine Company, a corporation in Columbus, Indiana, and one of the first diesel engine manufacturers. In 2001, we changed our name to Cummins Inc. We are a global power leader that designs, manufactures, distributes and services diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen production and fuel cell products. We sell our products to original equipment manufacturers (OEMs), distributors, dealers and other customers worldwide. We serve our customers through a service network of approximately 500 wholly-owned, joint venture and independent distributor locations and more than 10,000 Cummins certified dealer locations in approximately 190 countries and territories.
Reporting Period
Beginning in 2022, we transitioned to a Gregorian calendar with our reporting period ending on the last day of the quarterly calendar period. In 2021 and prior, our reporting period ended on the Sunday closest to the last day of the quarterly calendar period. The first quarters of 2022 and 2021 ended on March 31 and April 4, respectively. Our fiscal year ends on December 31, regardless of the day of the week on which December 31 falls.
Interim Condensed Financial Statements
The unaudited Condensed Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows. All such adjustments are of a normal recurring nature. The Condensed Consolidated Financial Statements were prepared in accordance with accounting principles in the United States of America (GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements were condensed or omitted as permitted by such rules and regulations.
These interim condensed financial statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Our interim period financial results for the three month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all required annual disclosures.
Reclassifications
Certain amounts for prior year periods were reclassified to conform to the current year presentation.
Use of Estimates in Preparation of Financial Statements
Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Condensed Consolidated Financial Statements. Significant estimates and assumptions in these Condensed Consolidated Financial Statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.
Weighted-Average Diluted Shares Outstanding
The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows:
 
 Three months ended
 March 31,
2022
April 4,
2021
Options excluded20,463 2,780 

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NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Contracts
The majority of our contracts are for a period of less than one year. We have certain long-term maintenance agreements, construction contracts and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for long-term maintenance agreements and construction contracts allocated to performance obligations that were not satisfied as of March 31, 2022, was $736 million. We expect to recognize the related revenue of $112 million over the next 12 months and $624 million over periods up to 10 years. See Note 11, "PRODUCT WARRANTY LIABILITY," for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties.
Deferred and Unbilled Revenue
The following is a summary of our unbilled and deferred revenue and related activity:
In millionsMarch 31,
2022
December 31,
2021
Unbilled revenue$138 $100 
Deferred revenue, primarily extended warranty1,760 1,705 
We recognized revenue of $240 million for the three months ended March 31, 2022, compared with $169 million for the comparable period in 2021, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three months ended March 31, 2022 or April 4, 2021.
Disaggregation of Revenue
Consolidated Revenue
The table below presents our consolidated sales by geographic area. Net sales attributed to geographic areas were based on the location of the customer.
 Three months ended
In millionsMarch 31,
2022
April 4,
2021
United States$3,457 $3,060 
China653 957 
India309 330 
Other international1,966 1,745 
Total net sales$6,385 $6,092 
Segment Revenue
Engine segment external sales by market were as follows:
Three months ended
In millionsMarch 31,
2022
April 4,
2021
Heavy-duty truck$684 $613 
Medium-duty truck and bus591 483 
Light-duty automotive487 474 
Total on-highway1,762 1,570 
Off-highway287 325 
Total sales$2,049 $1,895 
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Distribution segment external sales by region were as follows:
Three months ended
In millionsMarch 31,
2022
April 4,
2021
North America$1,371 $1,166 
Asia Pacific244 213 
Europe143 163 
Russia136 57 
China82 85 
India48 49 
Africa and Middle East46 54 
Latin America41 40 
Total sales$2,111 $1,827 
Distribution segment external sales by product line were as follows:
Three months ended
In millionsMarch 31,
2022
April 4,
2021
Parts$926 $754 
Engines438 333 
Power generation398 416 
Service349 324 
Total sales$2,111 $1,827 
Components segment external sales by business were as follows:
Three months ended
In millionsMarch 31,
2022
April 4,
2021
Emission solutions$808 $966 
Filtration308 301 
Turbo technologies197 225 
Automated transmissions134 115 
Electronics and fuel systems70 117 
Total sales$1,517 $1,724 
Power Systems segment external sales by product line were as follows:
Three months ended
In millionsMarch 31,
2022
April 4,
2021
Power generation$399 $351 
Industrial188 179 
Generator technologies96 82 
Total sales$683 $612 

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NOTE 3. RUSSIAN OPERATIONS
On March 17, 2022, the Board of Directors (the Board) decided to indefinitely suspend our operations in Russia due to the ongoing conflict in Ukraine. At the time of suspension, our Russian operations included a wholly-owned distributor in Russia, an unconsolidated joint venture and direct sales into Russia from our other business units. As a result of the suspension of operations, we evaluated the recoverability of assets in Russia and assessed other liabilities that may have been incurred. We have experienced and expect to continue to experience, an inability to collect customer receivables and may be the subject of litigation in connection with our suspension of commercial operations in Russia. We will continue to evaluate the situation as conditions evolve and may take additional actions as deemed necessary in future periods. The following summarizes the costs associated with the suspension of our Russian operations in our first quarter results on our Condensed Consolidated Statements of Net Income:
In millionsMarch 31,
2022
Statement of Net Income Location
Inventory write-downs$59 Cost of sales
Accounts receivable reserves43 Other operating expense, net
Impairment and other joint venture costs31 Equity, royalty and interest income from investees
Other25 Other operating expense, net
Total$158  
NOTE 4. PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit (OPEB) plans. Contributions to these plans were as follows:
 Three months ended
In millionsMarch 31,
2022
April 4,
2021
Defined benefit pension contributions$33 $42 
OPEB payments, net10 9 
Defined contribution pension plans36 35 
We anticipate making additional defined benefit pension contributions during the remainder of 2022 of $17 million for our U.S. and U.K. qualified and non-qualified pension plans. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2022 annual net periodic pension cost to approximate $31 million.
The components of net periodic pension and OPEB costs under our plans were as follows:
 Pension  
 U.S. PlansU.K. PlansOPEB
 Three months ended
In millionsMarch 31,
2022
April 4,
2021
March 31,
2022
April 4,
2021
March 31,
2022
April 4,
2021
Service cost$34 $35 $8 $8 $ $ 
Interest cost22 19 9 8 1 1 
Expected return on plan assets(52)(50)(20)(21)  
Recognized net actuarial loss6 12 1 8   
Net periodic benefit cost (credit)$10 $16 $(2)$3 $1 $1 
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NOTE 5. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting period was as follows:
 Three months ended
In millionsMarch 31,
2022
April 4,
2021
Manufacturing entities
Dongfeng Cummins Engine Company, Ltd.$16 $31 
Beijing Foton Cummins Engine Co., Ltd.14 39 
Tata Cummins, Ltd.9 6 
Chongqing Cummins Engine Company, Ltd.9 10 
All other manufacturers(10)
(1)
55 
Distribution entities
Komatsu Cummins Chile, Ltda.7 6 
All other distributors2 3 
Cummins share of net income47 150 
Royalty and interest income49 16 
Equity, royalty and interest income from investees$96 $166 
(1) 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 Cummins Westport Joint Venture. See NOTE 3, "RUSSIAN OPERATIONS" and NOTE 14, "ACQUISITIONS" to our Condensed Consolidated Financial Statements for additional information.
NOTE 6. INCOME TAXES
Our effective tax rates for the three months ended March 31, 2022 and April 4, 2021, were 26.8 percent and 22.0 percent, respectively.
The three months ended March 31, 2022, contained unfavorable discrete tax items of $31 million, primarily due to $18 million of unfavorable changes associated with uncertainty in our Russian operations, $9 million of unfavorable changes in tax reserves and $4 million of net unfavorable other discrete tax items.
The three months ended April 4, 2021, contained favorable discrete items of $4 million.
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NOTE 7. MARKETABLE SECURITIES
A summary of marketable securities, all of which were classified as current, was as follows:
 March 31,
2022
December 31,
2021
In millionsCost
Gross unrealized gains/(losses)(1)
Estimated
fair value
Cost
Gross unrealized gains/(losses)(1)
Estimated
fair value
Equity securities      
Certificates of deposit$284 $ $284 $299 $ $299 
Debt mutual funds205 (2)203 254 2 256 
Equity mutual funds31 9 40 29 10 39 
Debt securities   1  1 
Total marketable securities$520 $7 $527 $583 $12 $595 
(1) Unrealized gains and losses for debt securities are recorded in other comprehensive income while unrealized gains and losses for equity securities are recorded in other income, net in our Condensed Consolidated Statements of Net Income.
All debt securities are classified as available-for-sale. All marketable securities presented use a Level 2 fair value measure. The fair value of Level 2 securities is estimated using actively quoted prices for similar instruments from brokers and observable inputs where available, including market transactions and third-party pricing services, or net asset values provided to investors. We do not currently have any Level 3 securities, and there were no transfers between Level 2 or 3 during the three months ended March 31, 2022, or the year ended December 31, 2021.

A description of the valuation techniques and inputs used for our Level 2 fair value measures is as follows:
Certificates of deposit — These investments provide us with a contractual rate of return and generally range in maturity from three months to five years. The counterparties to these investments are reputable financial institutions with investment grade credit ratings. Since these instruments are not tradable and must be settled directly by us with the respective financial institution, our fair value measure is the financial institution's month-end statement.
Debt mutual funds — The fair value measures for the vast majority of these investments are the daily net asset values published on a regulated governmental website. Daily quoted prices are available from the issuing brokerage and are used on a test basis to corroborate this Level 2 input measure.
Equity mutual funds — The fair value measures for these investments are the net asset values published by the issuing brokerage. Daily quoted prices are available from reputable third-party pricing services and are used on a test basis to corroborate this Level 2 input measure.
Debt securities — The fair value measures for these securities are broker quotes received from reputable firms. These securities are infrequently traded on a national exchange and these values are used on a test basis to corroborate our Level 2 input measure.
The proceeds from sales and maturities of marketable securities were as follows:
Three months ended
In millionsMarch 31,
2022
April 4,
2021
Proceeds from sales of marketable securities$195 $163 
Proceeds from maturities of marketable securities59 44 
Investments in marketable securities - liquidations$254 $207 

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NOTE 8. INVENTORIES
Inventories are stated at the lower of cost or net realizable value. Inventories included the following:
 
In millionsMarch 31,
2022
December 31,
2021
Finished products$2,767 $2,538 
Work-in-process and raw materials2,028 2,009 
Inventories at FIFO cost4,795 4,547 
Excess of FIFO over LIFO(209)(192)
Total inventories$4,586 $4,355 

NOTE 9. SUPPLEMENTAL BALANCE SHEET DATA
Other assets included the following:
In millionsMarch 31,
2022
December 31,
2021
Deferred income taxes$494 $428 
Corporate owned life insurance455 492 
Operating lease assets440 444 
Other455 402 
Other assets$1,844 $1,766 
Other accrued expenses included the following:
In millionsMarch 31,
2022
December 31,
2021
Marketing accruals$304 $303 
Income taxes payable229 107 
Other taxes payable208 234 
Current portion of operating lease liabilities127 128 
Other432 418 
Other accrued expenses$1,300 $1,190 
Other liabilities included the following:
In millionsMarch 31,
2022
December 31,
2021
Deferred income taxes$385 $403 
Operating lease liabilities326 326 
Long-term income taxes263 263 
Accrued compensation160 177 
Mark-to-market valuation on interest rate derivatives75 19 
Other long-term liabilities357 320