Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

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 September 30, 2019 and December 31, 2018 are summarized below:

	September 30, 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	—		48		—		—		48
Corporate bonds
Corporate bonds	—		840		—		—		840
Asset-backed securities	—		53		—		—		53
Mortgage-backed debt securities
U.S. governmental agency	—		331		—		—		331
Residential	—		6		—		—		6
Commercial	—		41		—		—		41
Total debt securities	9		1,319		—		—		1,328
Equity securities
Large capitalization value	310		—		—		—		310
Smaller company growth	47		—		8		—		55
REIT	—		—		—		124		124
Total equity securities	357		—		8		124		489
Derivative financial instruments, net	—		55		—		—		55
Total assets	$	366	$	1,374	$	8	$	124	$	1,872

 

	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
	September 30, 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	$	7,906	$	7,906	$	7,857	$	7,857	1
Restricted cash and short-term investments	$	30	$	30	$	33	$	33	1
Investments in debt and equity securities	$	1,817	$	1,817	$	1,576	$	1,576	1, 2 & 3	Note 8
Finance receivables – net (excluding finance leases 1)	$	14,218	$	14,351	$	14,714	$	14,798	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	$	1,118	$	1,090	$	1,050	$	1,025	3
Foreign currency contracts – net	$	116	$	116	$	47	$	47	2	Note 5
Liabilities
Short-term borrowings	$	4,268	$	4,268	$	5,723	$	5,723	1
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	$	9,159	$	11,412	$	8,015	$	9,046	2
Financial Products	$	24,479	$	24,798	$	22,815	$	22,684	2
Interest rate contracts – net	$	54	$	54	$	36	$	36	2	Note 5
Commodity contracts – net	$	7	$	7	$	30	$	30	2	Note 5
Guarantees	$	6	$	6	$	8	$	8	3	Note 11

¹  Represents finance leases and failed sales leasebacks of $7,668 million at September 30, 2019 and finance leases of $7,463 million at December 31, 2018, respectively.