Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2018

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, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of September 30, 2018 and December 31, 2017 are summarized below:

	September 30, 2018
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets / Liabilities, at Fair Value
Assets
Debt securities
Government debt
U.S. treasury bonds	$	9	$	—	$	—	$	—	$	9
Other U.S. and non-U.S. government bonds	—		48		—		—		48
Corporate bonds
Corporate bonds	—		710		—		—		710
Asset-backed securities	—		61		—		—		61
Mortgage-backed debt securities
U.S. governmental agency	—		290		—		—		290
Residential	—		7		—		—		7
Commercial	—		14		—		—		14
Total debt securities	9		1,130		—		—		1,139
Equity securities
Large capitalization value	298		—		—		—		298
Smaller company growth	65		—		—		—		65
REIT	—		—		—		117		117
Total equity securities	363		—		—		117		480
Derivative financial instruments, net	—		22		—		—		22
Total assets	$	372	$	1,152	$	—	$	117	$	1,641

	December 31, 2017
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets / Liabilities, at Fair Value
Assets
Debt securities
Government debt
U.S. treasury bonds	$	10	$	—	$	—	$	10
Other U.S. and non-U.S. government bonds	—		42		—		42
Corporate bonds
Corporate bonds	—		584		—		584
Asset-backed securities	—		67		—		67
Mortgage-backed debt securities
U.S. governmental agency	—		261		—		261
Residential	—		8		—		8
Commercial	—		17		—		17
Total debt securities	10		979		—		989
Equity securities
Large capitalization value	284		—		—		284
Smaller company growth	56		—		—		56
REIT	—		—		110		110
Total equity securities	340		—		110		450
Total assets	$	350	$	979	$	110	$	1,439
Liabilities
Derivative financial instruments, net	$	—	$	19	$	—	$	19
Total liabilities	$	—	$	19	$	—	$	19

Fair values of financial instruments

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

	Fair Value of Financial Instruments
	September 30, 2018				December 31, 2017
(Millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Levels	Reference
Assets
Cash and short-term investments	$	8,007	$	8,007	$	8,261	$	8,261	1
Restricted cash and short-term investments	$	39	$	39	$	194	$	194	1
Investments in debt and equity securities	$	1,619	$	1,619	$	1,439	$	1,439	1, 2 & 3	Note 8
Finance receivables – net (excluding finance leases 1)	$	14,815	$	14,764	$	15,452	$	15,438	3	Note 16
Wholesale inventory receivables – net (excluding finance leases 1)	$	1,194	$	1,168	$	1,153	$	1,123	3
Foreign currency contracts – net	$	13	$	13	$	—	$	—	2	Note 5
Interest rate contracts – net	$	7	$	7	$	1	$	1	2	Note 5
Commodity contracts – net	$	2	$	2	$	21	$	21	2	Note 5
Liabilities
Short-term borrowings	$	4,521	$	4,521	$	4,837	$	4,837	1
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	$	8,001	$	9,155	$	7,935	$	9,863	2
Financial Products	$	23,251	$	23,110	$	22,106	$	22,230	2
Foreign currency contracts – net	$	—	$	—	$	41	$	41	2	Note 5
Guarantees	$	8	$	8	$	8	$	8	3	Note 10

¹  Total excluded items have a net carrying value at September 30, 2018 and December 31, 2017 of $7,481 million and $7,063 million, respectively.