| FAIR VALUE MEASUREMENTS |
CUMMINS STOCK The Cummins Inc. common stock investment is tracked on a unitized basis, and consists of Cummins Inc. common stock, and funds held in the Northern Trust Collective Short-Term Investment Fund sufficient to meet the daily cash needs of the unitized fund. The value of a unit reflects the combined market value of Cummins Inc. common stock, valued at the quoted market price, and the cash investments held by the Cummins Inc. common stock. The following is the Master Trust’s investment in Cummins Inc. common stock excluding funds held in the Northern Trust Collective Short-Term Investment Fund: | | | | | | | | | | | | | | | | | December 31, | | | | 2025 | | 2024 | | Number of shares | | 2,054,938 | | | 2,185,371 | | | Fair value | | $ | 1,048,943,101 | | | $ | 761,820,330 | | | | | | |
The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). The three levels of the fair value hierarchy are described as follows: •Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Master Trust has the ability to access. •Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. •Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The following table sets forth by level, within the hierarchy, the Master Trust’s assets measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | Master Trust level assets | | Fair Value | | Level 1 | | Fair Value | | Level 1 | | Registered investment companies | | $ | 138,692,527 | | | $ | 138,692,527 | | | $ | 361,788,044 | | | $ | 361,788,044 | | | Common stock | | 1,048,943,101 | | | 1,048,943,101 | | | 761,820,330 | | | 761,820,330 | | | Total assets in the fair value hierarchy | | 1,187,635,628 | | | $ | 1,187,635,628 | | | 1,123,608,374 | | | $ | 1,123,608,374 | | | Common/collective trust funds* | | 5,942,356,197 | | | | | 4,880,564,583 | | | | | Investments at fair value | | $ | 7,129,991,825 | | | | | $ | 6,004,172,957 | | | | | | | | | | | | | * Common/collective trust funds are measured at fair value using the net asset value per share or its equivalent as a practical expedient and are therefore not required to be classified in the fair value hierarchy. |
The following table sets forth the Master Trust's assets valued at NAV as of December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Unfunded Commitments | | Redemption Frequency | | Other Redemption Restrictions | | Redemption Notice Restrictions | | Vanguard Target Retirement Trusts | | $ | 3,631,365,005 | | | None | | Daily | | None | | None | | Northern Trust Collective S&P 500 Index Fund | | 943,391,661 | | | None | | Daily | | None | | None | | Northern Trust Collective ACWI Ex-US Fund | | 86,310,743 | | | None | | Daily | | None | | None | | Northern Trust Collective Aggregate Bond Index Fund | | 83,314,971 | | | None | | Daily | | None | | None | | Sprucegrove International Fund | | 65,821,784 | | | None | | Daily | | None | | 5 days | | Loomis Sayles Large Growth Fund | | 542,785,603 | | | None | | Daily | | None | | None | | Aristotle Collective Investment Trust Fund | | 58,507,110 | | | None | | Daily | | None | | 5 days | | Northern Trust Collective Short Term Investment Fund | | 10,304,134 | | | None | | Daily | | None | | None | | Capital Group Growth Fund of America Trust Fund | | 133,070,999 | | | None | | Daily | | None | | 5 days | | BNY Mellon Walter Scott International Fund | | 47,275,784 | | | None | | Daily | | None | | None | | Aristotle Collective Trust Investment Trust Small/Mid Capital Equity | | 38,928,436 | | | None | | Daily | | None | | 5 days | | Earnest Partners Multiple Investment Trust | | 39,172,103 | | | None | | Daily | | None | | 5 days | | PIMCO Total Return Fund | | 17,434,660 | | | None | | Daily | | None | | 5 days | | Vanguard Extended Market Index | | 244,673,204 | | | None | | Daily | | None | | None | | | | | | | | | | | |
The following table sets forth the Master Trust's assets valued at NAV as of December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Unfunded Commitments | | Redemption Frequency | | Other Redemption Restrictions | | Redemption Notice Restrictions | | Vanguard Target Retirement Trusts | | $ | 3,098,617,547 | | | None | | Daily | | None | | None | | Northern Trust Collective S&P 500 Index Fund | | 819,491,629 | | | None | | Daily | | None | | None | | Northern Trust Collective ACWI Ex-US Fund | | 38,032,572 | | | None | | Daily | | None | | None | | Northern Trust Collective Aggregate Bond Index Fund | | 62,629,776 | | | None | | Daily | | None | | None | | Sprucegrove International Fund | | 61,327,596 | | | None | | Daily | | None | | 10 days | | Loomis Sayles Large Growth Fund | | 493,510,324 | | | None | | Daily | | None | | None | | Aristotle Collective Investment Trust Fund | | 53,890,837 | | | None | | Daily | | None | | 5 days | | Northern Trust Collective Short Term Investment Fund | | 11,786,374 | | | None | | Daily | | None | | None | | Capital Group Growth Fund of America Trust Fund | | 116,793,568 | | | None | | Daily | | None | | 5 days | | BNY Mellon Walter Scott International Fund | | 42,255,794 | | | None | | Daily | | None | | None | | Aristotle Collective Trust Investment Trust Small/Mid Capital Equity | | 41,731,971 | | | None | | Daily | | None | | 5 days | | Earnest Partners Multiple Investment Trust | | 40,496,595 | | | None | | Daily | | None | | 5 days | | | | | | | | | | | |
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