SEC Filings


10-K
CUMMINS INC filed this Form 10-K on 02/11/2019
Entire Document
 

A description of the valuation techniques and inputs used for our Level 2 fair value measures is as follows:
Debt mutual funds— The fair value measure for the vast majority of these investments is the daily net asset value 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.
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.
Equity mutual funds— The fair value measure for these investments is the net asset value 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 measure for these securities is broker quotes received from reputable firms. These securities are infrequently traded on a national stock 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:
 
 
Years ended December 31,
In millions
 
2018
 
2017
 
2016
Proceeds from sales of marketable securities
 
$
253

 
$
145

 
$
116

Proceeds from maturities of marketable securities
 
78

 
121

 
190

Investments in marketable securities - liquidations
 
$
331

 
$
266

 
$
306

 

NOTE 6. INVENTORIES
Inventories are stated at the lower of cost or market. Inventories included the following:
 
 
December 31,
In millions
 
2018
 
2017
Finished products
 
$
2,405

 
$
2,078

Work-in-process and raw materials
 
1,487

 
1,216

Inventories at FIFO cost
 
3,892

 
3,294

Excess of FIFO over LIFO
 
(133
)
 
(128
)
Total inventories
 
$
3,759

 
$
3,166


NOTE 7. PROPERTY, PLANT AND EQUIPMENT
Details of our property, plant and equipment balance were as follows:
 
 
December 31,
In millions
 
2018
 
2017
Land and buildings
 
$
2,398

 
$
2,332

Machinery, equipment and fixtures
 
5,391

 
5,285

Construction in process
 
530

 
441

Property, plant and equipment, gross
 
8,319

 
8,058

Less: Accumulated depreciation
 
(4,223
)
 
(4,131
)
Property, plant and equipment, net
 
$
4,096

 
$
3,927



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