Print PageCUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5. MARKETABLE SECURITIES
A summary of marketable securities, all of which are classified as current, is as follows:
| December 31, | ||||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
| Cost | Gross unrealized gains / (losses) |
Estimated fair value |
Cost | Gross unrealized gains/(losses) |
Estimated fair value |
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| Millions | ||||||||||||||||||||
| Available-for-sale: Debt mutual funds |
$ | 94 | $ | — | $ | 94 | $ | 71 | $ | 1 | $ | 72 | ||||||||
| Government debt securities—non-U.S. | 6 | (1 | ) | 5 | 14 | (1 | ) | 13 | ||||||||||||
| Corporate debt securities | 12 | — | 12 | 4 | — | 4 | ||||||||||||||
| Equity securities and other | — | 9 | 9 | 2 | 4 | 6 | ||||||||||||||
| Total marketable securities | $ | 112 | $ | 8 | $ | 120 | $ | 91 | $ | 4 | $ | 95 | ||||||||
Proceeds from sales of available-for-sale securities were $395 million, $273 million and $126 million in 2007, 2006 and 2005, respectively. Gross realized gains from the sale of available-for-sale securities were $1 million, $1 million and $2 million in 2007, 2006 and 2005, respectively. Gross realized losses from the sale of available-for-sale securities were less than $1 million in 2007, 2006 and 2005.
At December 31, 2007, the fair value of available-for-sale investments in debt securities by contractual maturity is as follows:
| Maturity date | Fair value | ||
| Millions | |||
| 1 year or less | $ | 4 | |
| 1-5 years | 6 | ||
| 5-10 years | 5 | ||
| After 10 years | 2 | ||
| Total | $ | 17 | |
The accompanying notes are an integral part of the Consolidated Financial Statements.