v3.26.1
Fair Value Disclosures (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2026 and December 31, 2025 were as follows:
June 30, 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— 67 — — 67 
Corporate debt securities
Corporate bonds and other debt securities— 2,861 — — 2,861 
Asset-backed securities— 291 — — 291 
Mortgage-backed debt securities
U.S. governmental agency— 569 — — 569 
Residential— 4 — — 4 
Commercial— 154 — — 154 
Total debt securities10 3,946 — — 3,956 
Equity securities
Large capitalization value317 — — — 317 
Smaller company growth71 — — — 71 
REIT— — — 175 175 
Total equity securities388 — — 175 563 
Derivative financial instruments - assets
Foreign currency contracts - net— 163 — — 163 
Total return swap contracts - net— 39 — — 39 
Total assets$398 $4,148 $— $175 $4,721 
Liabilities
Derivative financial instruments - liabilities
Interest rate contracts - net$— $103 $— $— $103 
Commodity contracts - net— 2 — — 2 
Total liabilities$— $105 $— $— $105 
 
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:
 
June 30, 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)
$18,512 $18,130 $17,922 $17,648 3Note 17
Wholesale inventory receivables – net (excluding finance leases 1)
2,455 2,391 1,931 1,871 3
Liabilities
Long-term debt (including amounts due within one year)
Machinery, Power & Energy$10,690 $10,168 $10,713 $10,363 2
Financial Products29,410 29,415 27,103 27,204 2

1    Represents finance leases and failed sale leasebacks of $6,834 million and $7,189 million at June 30, 2026 and December 31, 2025, respectively.