Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018 are summarized below:

	March 31, 2019
(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	—		50		—		—		50
Corporate bonds
Corporate bonds	—		777		—		—		777
Asset-backed securities	—		61		—		—		61
Mortgage-backed debt securities
U.S. governmental agency	—		304		—		—		304
Residential	—		7		—		—		7
Commercial	—		17		—		—		17
Total debt securities	9		1,216		—		—		1,225
Equity securities
Large capitalization value	294		—		—		—		294
Smaller company growth	53		—		—		—		53
REIT	—		—		—		120		120
Total equity securities	347		—		—		120		467
Derivative financial instruments, net	—		25		—		—		25
Total assets	$	356	$	1,241	$	—	$	120	$	1,717

	December 31, 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	—		42		—		—		42
Corporate bonds
Corporate bonds	—		720		—		—		720
Asset-backed securities	—		63		—		—		63
Mortgage-backed debt securities
U.S. governmental agency	—		297		—		—		297
Residential	—		7		—		—		7
Commercial	—		13		—		—		13
Total debt securities	9		1,142		—		—		1,151
Equity securities
Large capitalization value	260		—		—		—		260
Smaller company growth	46		—		—		—		46
REIT	—		—		—		119		119
Total equity securities	306		—		—		119		425
Total assets	$	315	$	1,142	$	—	$	119	$	1,576
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
	March 31, 2019				December 31, 2018
(Millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Levels	Reference
Assets
Cash and short-term investments	$	7,128	$	7,128	$	7,857	$	7,857	1
Restricted cash and short-term investments	$	30	$	30	$	33	$	33	1
Investments in debt and equity securities	$	1,692	$	1,692	$	1,576	$	1,576	1 & 2	Note 8
Finance receivables – net (excluding finance leases 1)	$	14,340	$	14,480	$	14,714	$	14,798	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	$	1,132	$	1,103	$	1,050	$	1,025	3
Foreign currency contracts – net	$	82	$	82	$	47	$	47	2	Note 5
Liabilities
Short-term borrowings	$	5,590	$	5,590	$	5,723	$	5,723	1
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	$	7,663	$	9,155	$	8,015	$	9,046	2
Financial Products	$	22,529	$	22,633	$	22,815	$	22,684	2
Interest rate contracts – net	$	55	$	55	$	36	$	36	2	Note 5
Commodity contracts – net	$	2	$	2	$	30	$	30	2	Note 5
Guarantees	$	10	$	10	$	8	$	8	3	Note 11

¹  Represents finance leases and failed sales leasebacks of $7,495 million at March 31, 2019 and finance leases of $7,463 million at December 31, 2018, respectively.