Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2026

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 September 30, 2026 and December 31, 2025 were as follows:


	September 30, 2026
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets / Liabilities, at Fair Value
Assets
Debt securities
Government debt securities
U.S. treasury bonds	$	9	$	—	$	—	$	—	$	9
Other U.S. and non-U.S. government bonds	—		59		—		—		59
Corporate debt securities
Corporate bonds and other debt securities	—		2,870		—		—		2,870
Asset-backed securities	—		319		—		—		319
Mortgage-backed debt securities
U.S. governmental agency	—		583		—		—		583
Residential	—		4		—		—		4
Commercial	—		150		—		—		150
Total debt securities	9		3,985		—		—		3,994
Equity securities
Large capitalization value	322		—		—		—		322
Smaller company growth	67		—		—		—		67
REIT	—		—		—		179		179
Total equity securities	389		—		—		179		568
Derivative financial instruments - assets
Foreign currency contracts - net	—		50		—		—		50

Commodity contracts - net	—		40		—		—		40

Total assets	$	398	$	4,075	$	—	$	179	$	4,652
Liabilities
Derivative financial instruments - liabilities

Interest rate contracts - net	$	—	$	248	$	—	$	—	$	248

Total return swap contracts - net	—		13		—		—		13
Total liabilities	$	—	$	261	$	—	$	—	$	261


	December 31, 2025
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total 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 securities	10		3,539		—		—		3,549
Equity securities
Large capitalization value	283		—		—		—		283
Smaller company growth	65		—		—		—		65
REIT	—		—		—		174		174
Total equity securities	348		—		—		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:



	September 30, 2026				December 31, 2025
(Millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Levels	Reference
Assets
Finance receivables – net (excluding finance leases 1)	$	18,800	$	18,292	$	17,922	$	17,648	3	Note 17
Wholesale inventory receivables – net (excluding finance leases 1)	3,131		3,038		1,931		1,871		3

Liabilities
Long-term debt (including amounts due within one year)
Machinery, Power & Energy	$	10,650	$	9,441	$	10,713	$	10,363	2
Financial Products	29,696		29,536		27,103		27,204		2

1 Represents finance leases and failed sale leasebacks of $6,816 million and $7,189 million at September 30, 2026 and December 31, 2025, respectively.