Fair Value Disclosures (Tables)

9 Months Ended

Sep. 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 September 30, 2023 and December 31, 2022 were as follows:

	September 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	$	9	$	—	$	—	$	—	$	9
Other U.S. and non-U.S. government bonds	—		53		—		—		53
Corporate debt securities
Corporate bonds and other debt securities	—		2,730		—		—		2,730
Asset-backed securities	—		189		—		—		189
Mortgage-backed debt securities
U.S. governmental agency	—		384		—		—		384
Residential	—		2		—		—		2
Commercial	—		126		—		—		126
Total debt securities	9		3,484		—		—		3,493
Equity securities
Large capitalization value	204		—		—		—		204
Smaller company growth	31		—		—		—		31
REIT	—		—		—		184		184
Total equity securities	235		—		—		184		419
Derivative financial instruments - assets
Foreign currency contracts - net	—		232		—		—		232
Commodity contracts - net	—		9		—		—		9
Total assets	$	244	$	3,725	$	—	$	184	$	4,153
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net	$	—	$	294	$	—	$	—	$	294
Total liabilities	$	—	$	294	$	—	$	—	$	294

	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:

	September 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 )	$	14,894	$	14,365	$	13,965	$	13,377	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	1,075		1,032		827		778		3
Liabilities
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	9,513		8,712		9,618		9,240		2
Financial Products	23,408		22,806		21,418		20,686		2

1    Represents finance leases and failed sale leasebacks of $6,816 million and $7,325 million at September 30, 2023 and December 31, 2022, respectively.