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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2012
Fair Value Measurements  
Assets and liabilities measured at fair value

 

 

 

March 31, 2012

 

(Millions of dollars)

 

Level 1

 

Level 2

 

Level 3

 

Total
Assets / Liabilities,
at Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

Government debt

 

 

 

 

 

 

 

 

 

U.S. treasury bonds

 

$

12

 

$

 

$

 

$

12

 

Other U.S. and non-U.S. government bonds

 

 

123

 

 

123

 

Corporate bonds

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

604

 

 

604

 

Asset-backed securities

 

 

98

 

 

98

 

Mortgage-backed debt securities

 

 

 

 

 

 

 

 

 

U.S. governmental agency

 

 

279

 

 

279

 

Residential

 

 

29

 

 

29

 

Commercial

 

 

143

 

 

143

 

Equity securities

 

 

 

 

 

 

 

 

 

Large capitalization value

 

168

 

 

 

168

 

Smaller company growth

 

42

 

 

 

42

 

Total available-for-sale securities

 

222

 

1,276

 

 

1,498

 

Derivative financial instruments, net

 

 

183

 

 

183

 

Total Assets

 

$

222

 

$

1,459

 

$

 

$

1,681

 

Liabilities

 

 

 

 

 

 

 

 

 

Guarantees

 

$

 

$

 

$

7

 

$

7

 

Total Liabilities

 

$

 

$

 

$

7

 

$

7

 

 

 

 

December 31, 2011

 

(Millions of dollars)

 

Level 1

 

Level 2

 

Level 3

 

Total
 
Assets / Liabilities,
 
at Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

Government debt

 

 

 

 

 

 

 

 

 

U.S. treasury bonds

 

$

10

 

$

 

$

 

$

10

 

Other U.S. and non-U.S. government bonds

 

 

92

 

 

92

 

Corporate bonds

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

572

 

 

572

 

Asset-backed securities

 

 

111

 

 

111

 

Mortgage-backed debt securities

 

 

 

 

 

 

 

 

 

U.S. governmental agency

 

 

310

 

 

310

 

Residential

 

 

30

 

 

30

 

Commercial

 

 

145

 

 

145

 

Equity securities

 

 

 

 

 

 

 

 

 

Large capitalization value

 

148

 

 

 

148

 

Smaller company growth

 

29

 

 

 

29

 

Total available-for-sale securities

 

187

 

1,260

 

 

1,447

 

Derivative financial instruments, net

 

 

145

 

 

145

 

Total Assets

 

$

187

 

$

1,405

 

$

 

$

1,592

 

Liabilities

 

 

 

 

 

 

 

 

 

Guarantees

 

$

 

$

 

$

7

 

$

7

 

Total Liabilities

 

$

 

$

 

$

7

 

$

7

 

Roll-forwards of assets and liabilities measured at fair value using Level 3 inputs

 

(Millions of dollars)

 

Guarantees

 

 

 

 

 

Balance at December 31, 2011

 

$

7

 

Issuance of guarantees

 

 

Expiration of guarantees

 

 

Balance at March 31, 2012

 

$

7

 

 

 

 

 

Balance at December 31, 2010

 

$

10

 

Issuance of guarantees

 

1

 

Expiration of guarantees

 

(1

)

Balance at March 31, 2011

 

$

10

 

Fair Values of Financial Instruments

 

Fair Value of Financial Instruments

 

 

 

March 31, 2012

 

December 31, 2011

 

 

 

 

 

(Millions of dollars)

 

Carrying
Amount

 

Fair
Value

 

Carrying
Amount

 

Fair 
Value

 

Fair 
Value 
Levels

 

Reference

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

2,864

 

$

2,864

 

$

3,057

 

$

3,057

 

1

 

 

 

Restricted cash and short-term investments

 

51

 

51

 

87

 

87

 

1

 

 

 

Available-for-sale securities

 

1,498

 

1,498

 

1,447

 

1,447

 

1 & 2

 

Note 8

 

Finance receivables—net (excluding finance leases(1))

 

13,276

 

13,099

 

12,689

 

12,516

 

2

 

Note 15

 

Wholesale inventory receivables—net (excluding finance leases(1))

 

1,519

 

1,448

 

1,591

 

1,505

 

2

 

Note 15

 

Interest rate swaps—net

 

233

 

233

 

241

 

241

 

2

 

Note 4

 

Commodity contracts—net

 

1

 

1

 

 

 

2

 

Note 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

4,774

 

4,774

 

3,988

 

3,988

 

1

 

 

 

Long-term debt (including amounts due within one year)

 

 

 

 

 

 

 

 

 

 

 

 

 

Machinery and Power Systems

 

8,966

 

10,566

 

8,973

 

10,737

 

2

 

 

 

Financial Products

 

22,213

 

23,265

 

21,631

 

22,674

 

1 & 2

 

 

 

Foreign currency contracts—net

 

51

 

51

 

89

 

89

 

2

 

Note 4

 

Commodity contracts—net

 

 

 

7

 

7

 

2

 

Note 4

 

Guarantees

 

7

 

7

 

7

 

7

 

3

 

Note 10

 

 

 

(1) Total excluded items have a net carrying value at March 31, 2012 and December 31, 2011 of $7,452 million and $7,324 million, respectively.