Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021 and December 31, 2020 were as follows:


	September 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	—		57		—		—		57
Corporate bonds
Corporate bonds	—		1,035		—		—		1,035
Asset-backed securities	—		148		—		—		148
Mortgage-backed debt securities
U.S. governmental agency	—		349		—		—		349
Residential	—		4		—		—		4
Commercial	—		100		—		—		100
Total debt securities	10		1,693		—		—		1,703
Equity securities
Large capitalization value	196		—		—		—		196
Smaller company growth	86		—		—		—		86
REIT	—		—		—		158		158
Total equity securities	282		—		—		158		440

Derivative financial instruments, net	—		227		—		—		227
Total assets	$	292	$	1,920	$	—	$	158	$	2,370


	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
	September 30, 2021				December 31, 2020
(Millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Levels	Reference
Assets
Cash and cash equivalents	$	9,446	$	9,446	$	9,352	$	9,352	1
Restricted cash and short-term investments 1	546		546		14		14		1 & 2	Note 8
Investments in AFS debt and equity securities	2,143		2,143		2,088		2,088		1 & 2	Note 8
Finance receivables – net (excluding finance leases 2 )	13,785		13,921		14,028		14,357		3	Note 17
Wholesale inventory receivables – net (excluding finance leases 2)	819		800		929		911		3
Foreign currency contracts – net	193		193		—		—		2	Note 5
Interest rate contracts – net	27		27		58		58		2	Note 5
Commodity contracts – net	7		7		37		37		2	Note 5

Liabilities
Short-term borrowings	3,247		3,247		2,015		2,015		1
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	9,807		12,449		11,169		14,549		2
Financial Products	23,730		24,118		23,979		24,614		2
Foreign currency contracts – net	—		—		112		112		2	Note 5


Guarantees	5		5		5		5		3	Note 11

1 Includes time deposits of $543 million as of September 30, 2021. There were no time deposits as of December 31, 2020. See Note 8 for additional information.

2 Represents finance leases and failed sale leasebacks of $8,065 million and $7,961 million at September 30, 2021 and December 31, 2020, respectively.