Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2023

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 included in our Consolidated Statement of Financial Position as of March 31, 2023 and December 31, 2022 were as follows:

	March 31, 2023
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets / Liabilities, at Fair Value
Assets
Debt securities
Government debt securities
U.S. treasury bonds	$	9	$	—	$	—	$	—	$	9
Other U.S. and non-U.S. government bonds	—		57		—		—		57
Corporate debt securities
Corporate bonds and other debt securities	—		2,469		50		—		2,519
Asset-backed securities	—		184		—		—		184
Mortgage-backed debt securities
U.S. governmental agency	—		341		—		—		341
Residential	—		2		—		—		2
Commercial	—		125		—		—		125
Total debt securities	9		3,178		50		—		3,237
Equity securities
Large capitalization value	200		—		—		—		200
Smaller company growth	32		—		—		—		32
REIT	—		—		—		200		200
Total equity securities	232		—		—		200		432
Derivative financial instruments - assets
Foreign currency contracts - net	—		309		—		—		309
Commodity contracts - net	—		17		—		—		17
Total assets	$	241	$	3,504	$	50	$	200	$	3,995
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net	$	—	$	135	$	—	$	—	$	135
Total liabilities	$	—	$	135	$	—	$	—	$	135

	December 31, 2022
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets / Liabilities, at Fair Value
Assets
Debt securities
Government debt securities
U.S. treasury bonds	$	9	$	—	$	—	$	—	$	9
Other U.S. and non-U.S. government bonds	—		55		—		—		55
Corporate debt securities
Corporate bonds and other debt securities	—		2,416		50		—		2,466
Asset-backed securities	—		182		—		—		182
Mortgage-backed debt securities
U.S. governmental agency	—		333		—		—		333
Residential	—		2		—		—		2
Commercial	—		117		—		—		117
Total debt securities	9		3,105		50		—		3,164
Equity securities
Large capitalization value	203		—		—		—		203
Smaller company growth	31		—		—		—		31
REIT	—		—		—		207		207
Total equity securities	234		—		—		207		441
Derivative financial instruments - assets
Foreign currency contracts - net	—		328		—		—		328
Commodity contracts - net	—		15		—		—		15
Total Assets	$	243	$	3,448	$	50	$	207	$	3,948
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net	$	—	$	195	$	—	$	—	$	195
Total liabilities	$	—	$	195	$	—	$	—	$	195

Fair values of financial instruments

Our financial instruments not carried at fair value were as follows:

	March 31, 2023				December 31, 2022
(Millions of dollars)	Carrying  Amount		Fair  Value		Carrying  Amount		Fair  Value		Fair Value Levels	Reference
Assets
Finance receivables – net (excluding finance leases 1 )	$	14,010	$	13,488	$	13,965	$	13,377	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	1,024		967		827		778		3
Liabilities
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	9,595		9,542		9,618		9,240		2
Financial Products	21,602		21,066		21,418		20,686		2

1    Represents finance leases and failed sale leasebacks of $7,198 million and $7,325 million at March 31, 2023 and December 31, 2022, respectively.