Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2012

Assets and liabilities measured at fair value

Assets and liabilities measured on a recurring basis at fair value included in our Consolidated Statements of Financial Position are summarized below:



(Millions of dollars)
	December 31, 2012
	Level 1		Level 2		Level 3		Total Assets/Liabilities, at Fair Value
Assets
Derivative financial instruments, net	$	—	$	223	$	—	$	223
Total Assets	$	—	$	223	$	—	$	223
Liabilities
Guarantees	$	—	$	—	$	2	$	2
Total Liabilities	$	—	$	—	$	2	$	2

	December 31, 2011
	Level 1		Level 2		Level 3		Total Assets/Liabilities, at Fair Value
Assets
Derivative financial instruments, net	$	—	$	232	$	—	$	232
Total Assets	$	—	$	232	$	—	$	232
Liabilities
Guarantees	$	—	$	—	$	2	$	2
Total Liabilities	$	—	$	—	$	2	$	2

	December 31, 2010
	Level 1		Level 2		Level 3		Total Assets/Liabilities, at Fair Value
Assets
Derivative financial instruments, net	$	—	$	189	$	—	$	189
Total Assets	$	—	$	189	$	—	$	189
Liabilities
Guarantees	$	—	$	—	$	3	$	3
Total Liabilities	$	—	$	—	$	3	$	3

Roll-forwards of assets and liabilities measured at fair value using Level 3 inputs

Below are roll-forwards of assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2012, 2011 and 2010. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions of a marketplace participant.



(Millions of dollars)	Securitized Retained Interests			Guarantees
Balance as of December 31, 2009	$	102		$	4
Adjustment to adopt consolidation of variable-interest entities	(102		)	—
Issuance of guarantees	—			7
Expiration of guarantees	—			(8		)
Balance as of December 31, 2010	$	—		$	3
Issuance of guarantees	—			4
Expiration of guarantees	—			(5		)
Balance as of December 31, 2011	$	—		$	2
Issuance of guarantees	—			2
Expiration of guarantees	—			(2		)
Balance as of December 31, 2012	$	—		$	2

Fair values of financial instruments

Please refer to the table below for the fair values of our financial instruments.



(Millions of dollars)	2012						2011						2010
	Carrying Amount			Fair Value			Carrying Amount			Fair Value			Carrying Amount			Fair Value			Fair Value Levels	Reference
Cash and cash equivalents	$	2,080		$	2,080		$	1,176		$	1,176		$	1,676		$	1,676		1
Foreign currency contracts:
In a receivable position	$	10		$	10		$	7		$	7		$	6		$	6		2	Note 8
In a payable position	$	(5	)	$	(5	)	$	(16	)	$	(16	)	$	(9	)	$	(9	)	2	Note 8
Cross currency contracts	$	(1	)	$	(1	)	$	—		$	—		$	—		$	—		2	Note 8
Finance receivables, net (excluding finance leases⁽¹⁾)	$	20,189		$	20,079		$	17,431		$	17,172		$	15,444		$	15,311		2	Note 2
Restricted cash and cash equivalents⁽²⁾	$	19		$	19		$	64		$	64		$	91		$	91		1
Short-term borrowings	$	(4,651	)	$	(4,651	)	$	(3,895	)	$	(3,895	)	$	(3,852	)	$	(3,852	)	1	Note 6
Long-term debt	$	(25,077	)	$	(26,063	)	$	(21,631	)	$	(22,674	)	$	(19,362	)	$	(20,364	)	2	Note 7
Interest rate swaps:
In a net receivable position	$	228		$	228		$	248		$	248		$	211		$	211		2	Note 8
In a net payable position	$	(9	)	$	(9	)	$	(7	)	$	(7	)	$	(19	)	$	(19	)	2	Note 8
Guarantees	$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	(3	)	$	(3	)	3	Note 9

⁽¹⁾As of December 31, 2012, 2011 and 2010, represents finance leases with a net carrying value of $7,968 million, $7,325 million and $7,299 million, respectively.

^{(2 )}Included in Other assets in the Consolidated Statements of Financial Position.

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

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Reference 12: http://www.xbrl.org/2003/role/presentationRef

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+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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