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 our Consolidated Statement of Financial Position as of March 31, 2019 and December 31, 2018 are summarized below: | | | | | | | | | | | | | | | | | | | | | | March 31, 2019 | (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 | — |
| | 50 |
| | — |
| | — |
| | 50 |
| Corporate bonds | |
| | |
| | |
| | | | |
| Corporate bonds | — |
| | 777 |
| | — |
| | — |
| | 777 |
| Asset-backed securities | — |
| | 61 |
| | — |
| | — |
| | 61 |
| Mortgage-backed debt securities | |
| | |
| | |
| | | | |
| U.S. governmental agency | — |
| | 304 |
| | — |
| | — |
| | 304 |
| Residential | — |
| | 7 |
| | — |
| | — |
| | 7 |
| Commercial | — |
| | 17 |
| | — |
| | — |
| | 17 |
| Total debt securities | 9 |
| | 1,216 |
| | — |
| | — |
| | 1,225 |
| Equity securities | |
| | |
| | |
| | | | |
| Large capitalization value | 294 |
| | — |
| | — |
| | — |
| | 294 |
| Smaller company growth | 53 |
| | — |
| | — |
| | — |
| | 53 |
| REIT | — |
| | — |
| | — |
| | 120 |
| | 120 |
| Total equity securities | 347 |
| | — |
| | — |
| | 120 |
| | 467 |
| Derivative financial instruments, net | — |
| | 25 |
| | — |
| | — |
| | 25 |
| Total assets | $ | 356 |
| | $ | 1,241 |
| | $ | — |
| | $ | 120 |
| | $ | 1,717 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | 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 |
| | | | | | | | | | | | | | | | | | | | |
|
Fair values of financial instruments |
Please refer to the table below for the fair values of our financial instruments. | | | | | | | | | | | | | | | | | | | | | | | | Fair Value of Financial Instruments | | | | | | | March 31, 2019 | | December 31, 2018 | | | | | (Millions of dollars) | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | Fair Value Levels | | Reference | Assets | | |
| | |
| | |
| | |
| | | | | Cash and short-term investments | | $ | 7,128 |
| | $ | 7,128 |
| | $ | 7,857 |
| | $ | 7,857 |
| | 1 | | | Restricted cash and short-term investments | | $ | 30 |
| | $ | 30 |
| | $ | 33 |
| | $ | 33 |
| | 1 | | | Investments in debt and equity securities | | $ | 1,692 |
| | $ | 1,692 |
| | $ | 1,576 |
| | $ | 1,576 |
| | 1 & 2 | | Note 8 | Finance receivables – net (excluding finance leases 1) | | $ | 14,340 |
| | $ | 14,480 |
| | $ | 14,714 |
| | $ | 14,798 |
| | 3 | | Note 17 | Wholesale inventory receivables – net (excluding finance leases 1) | | $ | 1,132 |
| | $ | 1,103 |
| | $ | 1,050 |
| | $ | 1,025 |
| | 3 | | | Foreign currency contracts – net | | $ | 82 |
| | $ | 82 |
| | $ | 47 |
| | $ | 47 |
| | 2 | | Note 5 | | | | | | | | | | | | |
| Liabilities | | |
| | |
| | |
| | |
| | | | | Short-term borrowings | | $ | 5,590 |
| | $ | 5,590 |
| | $ | 5,723 |
| | $ | 5,723 |
| | 1 | | | Long-term debt (including amounts due within one year) | | |
| | |
| | |
| | |
| | | | | Machinery, Energy & Transportation | | $ | 7,663 |
| | $ | 9,155 |
| | $ | 8,015 |
| | $ | 9,046 |
| | 2 | | | Financial Products | | $ | 22,529 |
| | $ | 22,633 |
| | $ | 22,815 |
| | $ | 22,684 |
| | 2 | | | Interest rate contracts – net | | $ | 55 |
| | $ | 55 |
| | $ | 36 |
| | $ | 36 |
| | 2 | | Note 5 | Commodity contracts – net | | $ | 2 |
| | $ | 2 |
| | $ | 30 |
| | $ | 30 |
| | 2 | | Note 5 | Guarantees | | $ | 10 |
| | $ | 10 |
| | $ | 8 |
| | $ | 8 |
| | 3 | | Note 11 |
| | 1 | Represents finance leases and failed sales leasebacks of $7,495 million at March 31, 2019 and finance leases of $7,463 million at December 31, 2018, respectively. |
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