SEC Filings


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

The fair values of U.K. pension plan assets by asset category were as follows:
 
 
Fair Value Measurements at December 31, 2018
In millions
 
Quoted prices in active
markets for identical assets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable inputs
(Level 3)
 
Total
Equities
 
 
 
 
 
 
 
 
U.S.
 
$

 
$
47

 
$

 
$
47

Non-U.S.
 

 
61

 

 
61

Fixed income
 
 
 
 
 
 
 
 
Net cash equivalents (1)
 
12

 

 

 
12

Private equity, real estate and insurance (2)
 

 

 
686

 
686

Net plan assets subject to leveling
 
$
12

 
$
108

 
$
686

 
$
806

Investments measured at net asset value
 
 
 
 
 
 
 
976

Net plan assets
 
 

 
 

 
 

 
$
1,782


 
 
Fair Value Measurements at December 31, 2017
In millions
 
Quoted prices in active
markets for identical assets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable inputs
(Level 3)
 
Total
Equities
 
 
 
 
 
 
 
 
U.S.
 
$

 
$
63

 
$

 
$
63

Non-U.S.
 

 
91

 

 
91

Fixed income
 
 
 
 
 
 
 

Net cash equivalents (1)
 
29

 

 

 
29

Private equity, real estate and insurance (2)
 

 

 
671

 
671

Net plan assets subject to leveling
 
$
29

 
$
154

 
$
671

 
$
854

Investments measured at net asset value
 
 
 
 
 
 
 
1,106

Net plan assets
 
 

 
 

 
 

 
$
1,960

_____________________________________________________
(1) 
Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.
(2) 
The instruments in private equity, real estate and insurance funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds.
Certain of our assets are valued based on their respective NAV (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows:
U.S. and Non-U.S. Corporate Debt ($753 million and $822 million at December 31, 2018 and 2017, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days.
U.S. and Non-U.S. Equities ($100 million and $144 million at December 31, 2018 and 2017, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days.
Re-insurance ($77 million and $86 million at December 31, 2018 and 2017, respectively) - This commingled fund has a NAV that is determined on a monthly basis and the investment may be sold at that value.
Managed Futures Funds ($46 million and $54 million at December 31, 2018 and 2017, respectively) - These commingled funds invest in commodities, fixed income and equity securities. They have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days.

98