Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2021

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 June 30, 2021 and December 31, 2020 were as follows:

	June 30, 2021
(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	$	10	$	—	$	—	$	—	$	10
Other U.S. and non-U.S. government bonds	—		58		—		—		58
Corporate bonds
Corporate bonds	—		1,028		—		—		1,028
Asset-backed securities	—		152		—		—		152
Mortgage-backed debt securities
U.S. governmental agency	—		355		—		—		355
Residential	—		5		—		—		5
Commercial	—		83		—		—		83
Total debt securities	10		1,681		—		—		1,691
Equity securities
Large capitalization value	234		—		—		—		234
Smaller company growth	40		—		—		—		40
REIT	—		—		—		152		152
Total equity securities	274		—		—		152		426
Derivative financial instruments, net	—		221		—		—		221
Total assets	$	284	$	1,902	$	—	$	152	$	2,338

	December 31, 2020
(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	$	10	$	—	$	—	$	—	$	10
Other U.S. and non-U.S. government bonds	—		59		—		—		59
Corporate bonds
Corporate bonds	—		1,012		—		—		1,012
Asset-backed securities	—		159		—		—		159
Mortgage-backed debt securities
U.S. governmental agency	—		374		—		—		374
Residential	—		5		—		—		5
Commercial	—		64		—		—		64
Total debt securities	10		1,673		—		—		1,683
Equity securities
Large capitalization value	199		—		—		—		199
Smaller company growth	58		—		—		—		58
REIT	—		—		—		148		148
Total equity securities	257		—		—		148		405
Total assets	$	267	$	1,673	$	—	$	148	$	2,088
Liabilities
Derivative financial instruments, net	$	—	$	17	$	—	$	—	$	17
Total liabilities	$	—	$	17	$	—	$	—	$	17

Fair values of financial instruments

Fair values of our financial instruments were as follows:

	Fair Value of Financial Instruments
	June 30, 2021				December 31, 2020
(Millions of dollars)	Carrying  Amount		Fair  Value		Carrying  Amount		Fair  Value		Fair Value Levels	Reference
Assets
Cash and short-term investments	$	10,831	$	10,831	$	9,352	$	9,352	1
Restricted cash and short-term investments	236		236		14		14		1
Investments in debt and equity securities	2,117		2,117		2,088		2,088		1 & 2	Note 8
Finance receivables – net (excluding finance leases 1)	14,275		14,452		14,028		14,357		3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	832		806		929		911		3
Foreign currency contracts – net	133		133		—		—		2	Note 5
Interest rate contracts – net	30		30		58		58		2	Note 5
Commodity contracts – net	58		58		37		37		2	Note 5
Liabilities
Short-term borrowings	3,425		3,425		2,015		2,015		1
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	9,802		12,544		11,169		14,549		2
Financial Products	24,358		24,811		23,979		24,614		2
Foreign currency contracts – net	—		—		112		112		2	Note 5
Guarantees	5		5		5		5		3	Note 11

1    Represents finance leases and failed sale leasebacks of $8,147 million and $7,961 million at June 30, 2021 and December 31, 2020, respectively.