Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

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 are summarized below:

(Millions of dollars)
	March 31, 2015
	Level 1		Level 2		Level 3		Total Assets/Liabilities, at Fair Value
Assets
Derivative financial instruments, net	$	—	$	88	$	—	$	88
Total Assets	$	—	$	88	$	—	$	88
Liabilities
Guarantees	$	—	$	—	$	1	$	1
Total Liabilities	$	—	$	—	$	1	$	1
	December 31, 2014
	Level 1		Level 2		Level 3		Total Assets/Liabilities, at Fair Value
Assets
Derivative financial instruments, net	$	—	$	78	$	—	$	78
Total Assets	$	—	$	78	$	—	$	78
Liabilities
Guarantees	$	—	$	—	$	1	$	1
Total Liabilities	$	—	$	—	$	1	$	1

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

Below are roll-forwards of liabilities measured at fair value using Level 3 inputs for the three months ended March 31, 2015 and 2014. 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, 2014	$	1
Issuance of guarantees	—
Expiration of guarantees	—
Balance as of March 31, 2015	$	1

(Millions of dollars)	Guarantees
Balance as of December 31, 2013	$	1
Issuance of guarantees	—
Expiration of guarantees	—
Balance as of March 31, 2014	$	1

Fair values of financial instruments

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

(Millions of dollars)	March 31, 2015						December 31, 2014
	Carrying Amount			Fair Value			Carrying Amount			Fair Value			Fair Value Levels	Reference
Cash and cash equivalents	$	1,147		$	1,147		$	857		$	857		1
Foreign currency contracts:
In a receivable position	$	8		$	8		$	5		$	5		2	Note 5
In a payable position	$	(18	)	$	(18	)	$	(15	)	$	(15	)	2	Note 5
Cross currency contracts
In a receivable position	$	27		$	27		$	17		$	17		2	Note 5
Finance receivables, net (excluding finance leases(1))	$	20,918		$	20,688		$	21,434		$	21,093		3	Note 4
Restricted cash and cash equivalents(2)	$	16		$	16		$	11		$	11		1
Short-term borrowings	$	(5,259	)	$	(5,259	)	$	(4,699	)	$	(4,699	)	1
Long-term debt	$	(23,500	)	$	(24,107	)	$	(24,574	)	$	(25,103	)	2
Interest rate swaps:
In a net receivable position	$	77		$	77		$	79		$	79		2	Note 5
In a net payable position	$	(6	)	$	(6	)	$	(8	)	$	(8	)	2	Note 5
Guarantees	$	(1	)	$	(1	)	$	(1	)	$	(1	)	3	Note 7

⁽¹⁾As of March 31, 2015 and December 31, 2014, represents finance leases with a net carrying value of $7.10 billion and $7.64 billion, respectively.

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