Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

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 as of March 31, 2013 and December 31, 2012 are summarized below:

(Millions of dollars)
	March 31, 2013
	Level 1		Level 2		Level 3		Total Assets/Liabilities, at Fair Value
Assets
Derivative financial instruments, net	$	—	$	179	$	—	$	179
Total Assets	$	—	$	179	$	—	$	179
Liabilities
Guarantees	$	—	$	—	$	2	$	2
Total Liabilities	$	—	$	—	$	2	$	2
	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

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 three months ended March 31, 2013 and 2012. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions of a marketplace participant.

(Millions of dollars)	Guarantees
Balance as of December 31, 2012	$	2
Issuance of guarantees	1
Expiration of guarantees	(1		)
Balance as of March 31, 2013	$	2

(Millions of dollars)	Guarantees
Balance as of December 31, 2011	$	2
Issuance of guarantees	—
Expiration of guarantees	—
Balance as of March 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)	March 31, 2013						December 31, 2012
	Carrying Amount			Fair Value			Carrying Amount			Fair Value			Fair Value Levels	Reference
Cash and cash equivalents	$	2,256		$	2,256		$	2,080		$	2,080		1
Foreign currency contracts:
In a receivable position	$	9		$	9		$	10		$	10		2	Note 5
In a payable position	$	(16	)	$	(16	)	$	(5	)	$	(5	)	2	Note 5
Cross currency contracts	$	(4	)	$	(4	)	$	(1	)	$	(1	)	2	Note 5
Finance receivables, net (excluding finance leases(1))	$	20,343		$	20,184		$	20,189		$	20,079		2	Note 4
Restricted cash and cash equivalents(2)	$	39		$	39		$	19		$	19		1
Short-term borrowings	$	(4,315	)	$	(4,315	)	$	(4,651	)	$	(4,651	)	1
Long-term debt	$	(25,725	)	$	(26,675	)	$	(25,077	)	$	(26,063	)	2
Interest rate swaps:
In a net receivable position	$	199		$	199		$	228		$	228		2	Note 5
In a net payable position	$	(9	)	$	(9	)	$	(9	)	$	(9	)	2	Note 5
Guarantees	$	(2	)	$	(2	)	$	(2	)	$	(2	)	3	Note 7

⁽¹⁾As of March 31, 2013 and December 31, 2012, represents finance leases with a net carrying value of $8,008 million and $7,968 million, respectively.

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