Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023 and December 31, 2022 were as follows:

	June 30, 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	$	10	$	—	$	—	$	—	$	10
Other U.S. and non-U.S. government bonds	—		56		—		—		56
Corporate debt securities
Corporate bonds and other debt securities	—		2,500		—		—		2,500
Asset-backed securities	—		186		—		—		186
Mortgage-backed debt securities
U.S. governmental agency	—		359		—		—		359
Residential	—		2		—		—		2
Commercial	—		127		—		—		127
Total debt securities	10		3,230		—		—		3,240
Equity securities
Large capitalization value	207		—		—		—		207
Smaller company growth	33		—		—		—		33
REIT	—		—		—		188		188
Total equity securities	240		—		—		188		428
Derivative financial instruments - assets
Foreign currency contracts - net	—		281		—		—		281
Commodity contracts - net	—		1		—		—		1
Total assets	$	250	$	3,512	$	—	$	188	$	3,950
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net	$	—	$	213	$	—	$	—	$	213
Total liabilities	$	—	$	213	$	—	$	—	$	213

	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:

	June 30, 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 )	$	14,411	$	13,784	$	13,965	$	13,377	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	1,063		1,008		827		778		3
Liabilities
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	9,578		9,368		9,618		9,240		2
Financial Products	22,573		21,963		21,418		20,686		2

1    Represents finance leases and failed sale leasebacks of $7,117 million and $7,325 million at June 30, 2023 and December 31, 2022, respectively.