Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2013 and December 31, 2012 are summarized below:

(Millions of dollars)
	June 30, 2013
	Level 1		Level 2		Level 3		Total Assets/Liabilities, at Fair Value
Assets
Derivative financial instruments, net	$	—	$	161	$	—	$	161
Total Assets	$	—	$	161	$	—	$	161
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 six months ended June 30, 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	2
Expiration of guarantees	(2		)
Balance as of June 30, 2013	$	2

(Millions of dollars)	Guarantees
Balance as of December 31, 2011	$	2
Issuance of guarantees	1
Expiration of guarantees	(1		)
Balance as of June 30, 2012	$	2

Fair values of financial instruments

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

(Millions of dollars)	June 30, 2013						December 31, 2012
	Carrying Amount			Fair Value			Carrying Amount			Fair Value			Fair Value Levels	Reference
Cash and cash equivalents	$	2,004		$	2,004		$	2,080		$	2,080		1
Foreign currency contracts:
In a receivable position	$	10		$	10		$	10		$	10		2	Note 5
In a payable position	$	(3	)	$	(3	)	$	(5	)	$	(5	)	2	Note 5
Cross currency contracts
In a receivable position	$	6		$	6		$	—		$	—		2	Note 5
In a payable position	$	—		$	—		$	(1	)	$	(1	)	2	Note 5
Finance receivables, net (excluding finance leases(1))	$	20,393		$	20,262		$	20,189		$	20,079		2	Note 4
Restricted cash and cash equivalents(2)	$	42		$	42		$	19		$	19		1
Short-term borrowings	$	(5,119	)	$	(5,119	)	$	(4,651	)	$	(4,651	)	1
Long-term debt	$	(24,979	)	$	(25,607	)	$	(25,077	)	$	(26,063	)	2
Interest rate swaps:
In a net receivable position	$	154		$	154		$	228		$	228		2	Note 5
In a net payable position	$	(6	)	$	(6	)	$	(9	)	$	(9	)	2	Note 5
Guarantees	$	(2	)	$	(2	)	$	(2	)	$	(2	)	3	Note 7

⁽¹⁾As of June 30, 2013 and December 31, 2012, represents finance leases with a net carrying value of $8,064 million and $7,968 million, respectively.

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