Assets and liabilities measured on a recurring basis at fair value |
Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in Statement 3 as of December 31, 2018 and 2017 are summarized below:
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2018 | (Millions of dollars) | | Level 1 | | Level 2 | | Level 3 | | Measured at NAV | | Total Assets / Liabilities, at Fair Value | Assets | | |
| | |
| | |
| | | | |
| Debt securities | | |
| | |
| | |
| | | | |
| Government debt | | |
| | |
| | |
| | | | |
| U.S. treasury bonds | | $ | 9 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 9 |
| Other U.S. and non-U.S. government bonds | | — |
| | 42 |
| | — |
| | — |
| | 42 |
| | | | | | | | | | | | Corporate bonds | | |
| | | | |
| | | | |
| Corporate bonds | | — |
| | 720 |
| | — |
| | — |
| | 720 |
| Asset-backed securities | | — |
| | 63 |
| | — |
| | — |
| | 63 |
| | | | | | | | | | | | Mortgage-backed debt securities | | |
| | | | |
| | | | |
| U.S. governmental agency | | — |
| | 297 |
| | — |
| | — |
| | 297 |
| Residential | | — |
| | 7 |
| | — |
| | — |
| | 7 |
| Commercial | | — |
| | 13 |
| | — |
| | — |
| | 13 |
| Total debt securities | | 9 |
| | 1,142 |
| | — |
| | — |
| | 1,151 |
| Equity securities | | | | | | | | | | |
| Large capitalization value | | 260 |
| | — |
| | — |
| | — |
| | 260 |
| Smaller company growth | | 46 |
| | — |
| | — |
| | — |
| | 46 |
| REIT | | — |
| | — |
| | — |
| | 119 |
| | 119 |
| Total equity securities | | 306 |
| | — |
| | — |
| | 119 |
| | 425 |
| | | | | | | | | | | | Total Assets | | $ | 315 |
| | $ | 1,142 |
| | $ | — |
| | $ | 119 |
| | $ | 1,576 |
| | | | | | | | | | | | Liabilities | | |
| | |
| | |
| | | | |
| Derivative financial instruments, net | | $ | — |
| | $ | 19 |
| | $ | — |
| | $ | — |
| | $ | 19 |
| Total Liabilities | | $ | — |
| | $ | 19 |
| | $ | — |
| | $ | — |
| | $ | 19 |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | December 31, 2017 | (Millions of dollars) | | Level 1 | | Level 2 | | Level 3 | | Total Assets / Liabilities, at Fair Value | Assets | | |
| | |
| | |
| | |
| Debt securities | | |
| | |
| | |
| | |
| Government debt | | |
| | |
| | |
| | |
| U.S. treasury bonds | | $ | 10 |
| | $ | — |
| | $ | — |
| | $ | 10 |
| Other U.S. and non-U.S. government bonds | | — |
| | 42 |
| | — |
| | 42 |
| | | | | | | | | | Corporate bonds | | |
| | |
| | |
| | |
| Corporate bonds | | — |
| | 584 |
| | — |
| | 584 |
| Asset-backed securities | | — |
| | 67 |
| | — |
| | 67 |
| | | | | | | | | | Mortgage-backed debt securities | | |
| | |
| | |
| | |
| U.S. governmental agency | | — |
| | 261 |
| | — |
| | 261 |
| Residential | | — |
| | 8 |
| | — |
| | 8 |
| Commercial | | — |
| | 17 |
| | — |
| | 17 |
| Total debt securities | | 10 |
| | 979 |
| | — |
| | 989 |
| Equity securities | | |
| | |
| | |
| | |
| Large capitalization value | | 284 |
| | — |
| | — |
| | 284 |
| Smaller company growth | | 56 |
| | — |
| | — |
| | 56 |
| REIT | | — |
| | — |
| | 110 |
| | 110 |
| Total equity securities | | 340 |
| | — |
| | 110 |
| | 450 |
| Total Assets | | $ | 350 |
| | $ | 979 |
| | $ | 110 |
| | $ | 1,439 |
| | | | | | | | | | Liabilities | | |
| | |
| | |
| | |
| Derivative financial instruments, net | | $ | — |
| | $ | 19 |
| | $ | — |
| | $ | 19 |
| Total Liabilities | | $ | — |
| | $ | 19 |
| | $ | — |
| | $ | 19 |
| | | | | | | | | |
|
Fair values of financial instruments |
Please refer to the table below for the fair values of our financial instruments. | | | | | | | | | | | | | | | | | | | | | | TABLE III—Fair Values of Financial Instruments | | | 2018 | | 2017 | | | | | (Millions of dollars) | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | Fair Value Levels | | Reference | Assets at December 31, | | |
| | |
| | |
| | |
| | | | | Cash and short-term investments | | $ | 7,857 |
| | $ | 7,857 |
| | $ | 8,261 |
| | $ | 8,261 |
| | 1 | | Statement 3 | Restricted cash and short-term investments | | 33 |
| | 33 |
| | 194 |
| | 194 |
| | 1 | | Statement 3 | Investments in debt and equity securities | | 1,576 |
| | 1,576 |
| | 1,439 |
| | 1,439 |
| | 1, 2 & 3 | | Notes 11 & 19 | Finance receivables–net (excluding finance leases 1) | | 14,714 |
| | 14,798 |
| | 15,452 |
| | 15,438 |
| | 3 | | Notes 7 & 19 | Wholesale inventory receivables–net (excluding finance leases 1) | | 1,050 |
| | 1,025 |
| | 1,153 |
| | 1,123 |
| | 3 | | Notes 7 & 19 | Foreign currency contracts–net | | 47 |
| | 47 |
| | — |
| | — |
| | 2 | | Notes 4 & 19 | Interest rate swaps–net | | — |
| | — |
| | 1 |
| | 1 |
| | 2 | | Notes 4 & 19 | Commodity contracts–net | | — |
| | — |
| | 21 |
| | 21 |
| | 2 | | Notes 4 & 19 | | | | | | | | | | | | | | Liabilities at December 31, | | |
| | |
| | |
| | |
| | | | | Short-term borrowings | | 5,723 |
| | 5,723 |
| | 4,837 |
| | 4,837 |
| | 1 | | Note 13 | Long-term debt (including amounts due within one year): | | |
| | |
| | |
| | |
| | | | | Machinery, Energy & Transportation | | 8,015 |
| | 9,046 |
| | 7,935 |
| | 9,863 |
| | 2 | | Note 14 | Financial Products | | 22,815 |
| | 22,684 |
| | 22,106 |
| | 22,230 |
| | 2 | | Note 14 | Foreign currency contracts–net | | — |
| | — |
| | 41 |
| | 41 |
| | 2 | | Notes 4 & 19 | Interest rate swaps–net | | 36 |
| | 36 |
| | — |
| | — |
| | 2 | | Notes 4 & 19 | Commodity contracts–net | | 30 |
| | 30 |
| | — |
| | — |
| | 2 | | Notes 4 & 19 | Guarantees | | 8 |
| | 8 |
| | 8 |
| | 8 |
| | 3 | | Note 21 |
| | 1 | Total excluded items have a net carrying value at December 31, 2018 and 2017 of $7,463 million and $7,063 million, respectively. |
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