Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019 are summarized below:

	March 31, 2020
(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	—		47		—		—		47
Corporate bonds
Corporate bonds	—		871		—		—		871
Asset-backed securities	—		86		—		—		86
Mortgage-backed debt securities
U.S. governmental agency	—		378		—		—		378
Residential	—		5		—		—		5
Commercial	—		53		—		—		53
Total debt securities	9		1,440		—		—		1,449
Equity securities
Large capitalization value	139		—		—		—		139
Smaller company growth	23		—		2		—		25
REIT	—		—		—		137		137
Total equity securities	162		—		2		137		301
Derivative financial instruments, net	—		121		—		—		121
Total assets	$	171	$	1,561	$	2	$	137	$	1,871

 

	December 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	—		54		—		—		54
Corporate bonds
Corporate bonds	—		856		—		—		856
Asset-backed securities	—		62		—		—		62
Mortgage-backed debt securities
U.S. governmental agency	—		331		—		—		331
Residential	—		6		—		—		6
Commercial	—		47		—		—		47
Total debt securities	9		1,356		—		—		1,365
Equity securities
Large capitalization value	187		—		—		—		187
Smaller company growth	29		—		4		—		33
REIT	—		—		—		126		126
Total equity securities	216		—		4		126		346
Derivative financial instruments, net	—		45		—		—		45
Total assets	$	225	$	1,401	$	4	$	126	$	1,756

Fair values of financial instruments

Fair values of our financial instruments were as follows:

	Fair Value of Financial Instruments
	March 31, 2020				December 31, 2019
(Millions of dollars)	Carrying  Amount		Fair  Value		Carrying  Amount		Fair  Value		Fair Value Levels	Reference
Assets
Cash and short-term investments	$	7,123	$	7,123	$	8,284	$	8,284	1
Restricted cash and short-term investments	$	7	$	7	$	8	$	8	1
Investments in debt and equity securities	$	1,750	$	1,750	$	1,711	$	1,711	1, 2 & 3	Note 8
Finance receivables – net (excluding finance leases 1)	$	14,076	$	14,149	$	14,473	$	14,613	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	$	1,104	$	1,071	$	1,105	$	1,076	3
Foreign currency contracts – net	$	129	$	129	$	62	$	62	2	Note 5
Interest rate contracts – net	$	26	$	26	$	—	$	—	2	Note 5
Commodity contracts – net	$	—	$	—	$	3	$	3	2	Note 5
Liabilities
Short-term borrowings	$	4,789	$	4,789	$	5,166	$	5,166	1
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	$	9,141	$	11,061	$	9,157	$	11,216	2
Financial Products	$	23,163	$	23,226	$	23,334	$	23,655	2
Interest rate contracts – net	$	—	$	—	$	20	$	20	2	Note 5
Commodity contracts – net	$	34	$	34	$	—	$	—	2	Note 5
Guarantees	$	5	$	5	$	5	$	5	3	Note 11

¹  Represents finance leases and failed sales leasebacks of $7,328 million and $7,800 million at March 31, 2020 and December 31, 2019, respectively.