Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2022

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 included in our Consolidated Statement of Financial Position as of March 31, 2022 and December 31, 2021 were as follows:

	March 31, 2022
(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	—		60		—		—		60
Corporate bonds
Corporate bonds	—		1,988		—		—		1,988
Asset-backed securities	—		183		—		—		183
Mortgage-backed debt securities
U.S. governmental agency	—		319		—		—		319
Residential	—		3		—		—		3
Commercial	—		100		—		—		100
Total debt securities	9		2,653		—		—		2,662
Equity securities
Large capitalization value	214		—		—		—		214
Smaller company growth	72		—		—		—		72
REIT	—		—		—		185		185
Total equity securities	286		—		—		185		471
Derivative financial instruments - assets
Foreign currency contracts - net	—		85		—		—		85
Commodity contracts - net	—		87		—		—		87
Total assets	$	295	$	2,825	$	—	$	185	$	3,305
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net	$	—	$	12	$	—	$	—	$	12
Total liabilities	$	—	$	12	$	—	$	—	$	12

	December 31, 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	—		61		—		—		61
Corporate bonds
Corporate bonds	—		1,046		—		—		1,046
Asset-backed securities	—		176		—		—		176
Mortgage-backed debt securities
U.S. governmental agency	—		325		—		—		325
Residential	—		4		—		—		4
Commercial	—		99		—		—		99
Total debt securities	10		1,711		—		—		1,721
Equity securities
Large capitalization value	217		—		—		—		217
Smaller company growth	98		—		—		—		98
REIT	—		—		—		167		167
Total equity securities	315		—		—		167		482
Derivative financial instruments - assets
Foreign currency contracts - net	—		168		—		—		168
Interest rate contracts - net	—		23		—		—		23
Commodity contracts - net	—		21		—		—		21
Total Assets	$	325	$	1,923	$	—	$	167	$	2,415

Fair values of financial instruments

Our financial instruments not carried at fair value were as follows:

	March 31, 2022				December 31, 2021
(Millions of dollars)	Carrying  Amount		Fair  Value		Carrying  Amount		Fair  Value		Fair Value Levels	Reference
Assets
Finance receivables – net (excluding finance leases 1 )	$	14,077	$	13,848	$	13,837	$	13,836	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	714		690		773		753		3
Liabilities
Long-term debt (including amounts due within one year)
Machinery, Energy & Transportation	9,763		11,127		9,791		12,420		2
Financial Products	23,320		23,010		22,594		22,797		2

1    Represents finance leases and failed sale leasebacks of $7,895 million and $8,083 million at March 31, 2022 and December 31, 2021, respectively.