Fair value disclosures (Tables)

12 Months Ended

Dec. 31, 2024

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 Statement 3 as of December 31, 2024 and 2023 were as follows:

	December 31, 2024
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets / Liabilities, at Fair Value
Assets
Debt securities
Government debt securities
U.S. treasury bonds	$	10	$	—	$	—	$	—	$	10
Other U.S. and non-U.S. government bonds	—		68		—		—		68
Corporate debt securities
Corporate bonds and other debt securities	—		3,170		—		—		3,170
Asset-backed securities	—		219		—		—		219
Mortgage-backed debt securities
U.S. governmental agency	—		443		—		—		443
Residential	—		2		—		—		2
Commercial	—		130		—		—		130
Total debt securities	10		4,032		—		—		4,042
Equity securities
Large capitalization value	261		—		—		—		261
Smaller company growth	41		—		—		—		41
REIT	—		—		—		167		167
Total equity securities	302		—		—		167		469
Derivative financial instruments - assets
Foreign currency contracts - net	—		117		—		—		117
Total assets	$	312	$	4,149	$	—	$	167	$	4,628
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net	$	—	$	191	$	—	$	—	$	191
Commodity contracts - net	—		2		—		—		2
Total return swap contracts - net	—		33		—		—		33
Total liabilities	$	—	$	226	$	—	$	—	$	226

	December 31, 2023
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total  Assets / Liabilities,  at Fair Value
Assets
Debt securities
Government debt securities
U.S. treasury bonds	$	10	$	—	$	—	$	—	$	10
Other U.S. and non-U.S. government bonds	—		60		—		—		60
Corporate debt securities
Corporate bonds and other debt securities	—		2,995		—		—		2,995
Asset-backed securities	—		192		—		—		192
Mortgage-backed debt securities
U.S. governmental agency	—		410		—		—		410
Residential	—		2		—		—		2
Commercial	—		128		—		—		128
Total debt securities	10		3,787		—		—		3,797
Equity securities
Large capitalization value	223		—		—		—		223
Smaller company growth	35		—		—		—		35
REIT	—		—		—		180		180
Total equity securities	258		—		—		180		438
Derivative financial instruments - assets
Foreign currency contracts - net	—		207		—		—		207
Commodity contracts - net	—		9		—		—		9
Total assets	$	268	$	4,003	$	—	$	180	$	4,451
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net	$	—	$	151	$	—	$	—	$	151
Total liabilities	$	—	$	151	$	—	$	—	$	151

Fair values of financial instruments

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

	2024				2023
(Millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Levels	Reference
Assets at December 31,
Finance receivables–net (excluding finance leases 1)	$	16,180	$	15,788	$	15,386	$	15,017	3	Note 7
Wholesale inventory receivables–net (excluding finance leases 1)	1,568		1,527		1,415		1,368		3	Note 7
Liabilities at December 31,
Long-term debt (including amounts due within one year):
Machinery, Energy & Transportation	8,610		7,980		9,623		9,550		2	Note 14
Financial Products	25,406		25,304		23,612		23,299		2	Note 14

1Represents finance leases and failed sale leasebacks of $6,769 million and $6,953 million at December 31, 2024 and 2023, respectively.