Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016 and December 31, 2015 are summarized below:



	March 31, 2016
(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	—		72		—		72
Corporate bonds
Corporate bonds	—		720		—		720
Asset-backed securities	—		127		—		127
Mortgage-backed debt securities
U.S. governmental agency	—		288		—		288
Residential	—		11		—		11
Commercial	—		60		—		60
Equity securities
Large capitalization value	277		—		—		277
Smaller company growth	52		—		—		52
Total available-for-sale securities	341		1,278		—		1,619
REIT	—		—		51		51
Derivative financial instruments, net	—		111		—		111
Total Assets	$	341	$	1,389	$	51	$	1,781



	December 31, 2015
(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	$	9	$	—	$	—	$	9
Other U.S. and non-U.S. government bonds	—		72		—		72
Corporate bonds
Corporate bonds	—		708		—		708
Asset-backed securities	—		129		—		129
Mortgage-backed debt securities
U.S. governmental agency	—		292		—		292
Residential	—		12		—		12
Commercial	—		61		—		61
Equity securities
Large capitalization value	273		—		—		273
Smaller company growth	54		—		—		54
Total available-for-sale securities	336		1,274		—		1,610
REIT	—		—		25		25
Derivative financial instruments, net	—		49		—		49
Total Assets	$	336	$	1,323	$	25	$	1,684

Roll-forward of assets measured at fair value using Level 3 inputs



(Millions of dollars)	REIT
Balance at December 31, 2015	$	25
Purchases of securities	25
Sale of securities	—
Gains (losses) included in Accumulated other comprehensive income (loss)	1
Balance at March 31, 2016	$	51

Fair values of financial instruments

Please refer to the table below for the fair values of our financial instruments.



	Fair Value of Financial Instruments
	March 31, 2016				December 31, 2015
(Millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Levels	Reference
Assets
Cash and short-term investments	$	5,886	$	5,886	$	6,460	$	6,460	1
Restricted cash and short-term investments	65		65		52		52		1
Investments in debt and equity securities	1,670		1,670		1,635		1,635		1, 2 & 3	Note 8
Finance receivables – net (excluding finance leases ¹)	16,753		16,826		16,515		16,551		3	Note 16
Wholesale inventory receivables – net (excluding finance leases ¹)	1,704		1,669		1,821		1,775		3	Note 16
Foreign currency contracts – net	66		66		13		13		2	Note 4
Interest rate swaps – net	52		52		48		48		2	Note 4

Liabilities
Short-term borrowings	7,817		7,817		6,967		6,967		1
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	9,482		11,234		9,477		10,691		2
Financial Products	21,064		21,596		21,569		21,904		2
Commodity contracts – net	7		7		12		12		2	Note 4
Guarantees	12		12		12		12		3	Note 10


¹	Total excluded items have a net carrying value at March 31, 2016 and December 31, 2015 of $6,409 million and $6,452 million, respectively.