v3.25.4
Fair value disclosures (Tables)
 12 Months Ended
Dec. 31, 2025
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 Statement 3 as of December 31, 2025 and 2024 were as follows:

 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 
 December 31, 2024
(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— 68 — — 68 
Corporate debt securities    
Corporate bonds and other debt securities— 3,170 — — 3,170 
Asset-backed securities— 219 — — 219 
Mortgage-backed debt securities    
U.S. governmental agency— 443 — — 443 
Residential— 2 — — 2 
Commercial— 130 — — 130 
Total debt securities10 4,032 — — 4,042 
Equity securities    
Large capitalization value261 — — 261 
Smaller company growth41 — — 41 
REIT— — — 167 167 
Total equity securities302 — — 167 469 
Derivative financial instruments - assets
Foreign currency contracts - net— 117 — — 117 
Total assets$312 $4,149 $— $167 $4,628 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $191 $— $— $191 
Commodity contracts - net— 2 — — 2 
Total return swap contracts - net— 33 — — 33 
Total liabilities$— $226 $— $— $226 
Fair values of financial instruments
Our financial instruments not carried at fair value were as follows:
 
 20252024 
(Millions of dollars)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Fair Value LevelsReference
Assets at December 31,     
Finance receivables–net (excluding finance leases 1)
$17,922 $17,648 $16,180 $15,788 3Note 7
Wholesale inventory receivables–net (excluding finance leases 1)
1,931 1,871 1,568 1,527 3Note 7
Liabilities at December 31,     
Long-term debt (including amounts due within one year):     
Machinery, Power & Energy10,713 10,363 8,610 7,980 2Note 14
Financial Products27,103 27,204 25,406 25,304 2Note 14
 1 Represents finance leases and failed sale leasebacks of $7,189 million and $6,769 million at December 31, 2025 and 2024, respectively.