v3.26.1
Fair Value Disclosures (Tables)
 3 Months Ended
Mar. 31, 2026
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 our Consolidated Statement of Financial Position as of March 31, 2026 and December 31, 2025 were as follows:
March 31, 2026
 (Millions of dollars)
Level 1Level 2Level 3Measured at NAVTotal
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— 70 — — 70 
Corporate debt securities    
Corporate bonds and other debt securities— 2,540 — — 2,540 
Asset-backed securities— 272 — — 272 
Mortgage-backed debt securities    
U.S. governmental agency— 570 — — 570 
Residential— 4 — — 4 
Commercial— 155 — — 155 
Total debt securities10 3,611 — — 3,621 
Equity securities    
Large capitalization value280 — — — 280 
Smaller company growth61 — — — 61 
REIT— — — 176 176 
Total equity securities341 — — 176 517 
Derivative financial instruments - assets
Foreign currency contracts - net— 160 — — 160 
Commodity contracts - net— 31 — — 31 
Total assets$351 $3,802 $— $176 $4,329 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $52 $— $— $52 
Total return swap contracts - net— 41 — — 41 
Total liabilities$— $93 $— $— $93 
 
December 31, 2025
 (Millions of dollars)
Level 1Level 2Level 3Measured at NAVTotal
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— 74 — — 74 
Corporate debt securities    
Corporate bonds and other debt securities— 2,480 — — 2,480 
Asset-backed securities— 273 — — 273 
Mortgage-backed debt securities   
U.S. governmental agency— 572 — — 572 
Residential— 1 — — 1 
Commercial— 139 — — 139 
Total debt securities10 3,539 — — 3,549 
Equity securities    
Large capitalization value283 — — — 283 
Smaller company growth65 — — — 65 
REIT— — — 174 174 
Total equity securities348 — — 174 522 
Derivative financial instruments - assets
Foreign currency contracts - net— 204 — — 204 
Commodity contracts - net— 8 — — 8 
Total assets$358 $3,751 $— $174 $4,283 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $40 $— $— $40 
Total return swap contracts - net— 1 — — 1 
Total liabilities$— $41 $— $— $41 
Fair values of financial instruments
Our financial instruments not carried at fair value were as follows:
 
 March 31, 2026December 31, 2025 
(Millions of dollars)
Carrying
 Amount
Fair
 Value
Carrying
 Amount
Fair
 Value
Fair Value LevelsReference
Assets     
Finance receivables – net (excluding finance leases 1)
$18,049 $17,607 $17,922 $17,648 3Note 17
Wholesale inventory receivables – net (excluding finance leases 1)
1,897 1,833 1,931 1,871 3
Liabilities     
Long-term debt (including amounts due within one year)
    
Machinery, Power & Energy$10,706 $10,178 $10,713 $10,363 2 
Financial Products27,631 27,611 27,103 27,204 2 

1    Represents finance leases and failed sale leasebacks of $6,918 million and $7,189 million at March 31, 2026 and December 31, 2025, respectively.