Table of Contents Finance receivables Wholesale inventory receivables Short-term borrowings Long-term debt Guarantees Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Carrying amount approximated fair value. Fair value for fixed and floating rate debt was estimated based on quoted market prices. The fair value of guarantees is based upon our estimate of the premium a market participant would require to issue the same guarantee in a stand-alone arms-length transaction with an unrelated party. If quoted or observable market prices are not available, fair value is based upon internally developed models that utilize current market-based assumptions. Fair values of our financial instruments were as follows: Financial instruments with potential credit risk consist primarily of trade and finance receivables and short-term and long-term investments. Additionally, to a lesser extent, we have a potential credit risk associated with counterparties to derivative contracts. 19.Concentration of credit risk $^{1}$  Represents finance leases and failed sale leasebacks of $7,800 million at December 31, 2019 and finance leases of $7,463 million at December 31, 2018, respectively. TABLE III—Fair Values of Financial Instruments 2019 2018 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets at December 31, Cash and short-term investments $ 8,284 $ 8,284 $ 7,857 $ 7,857 1 Statement 3 Restricted cash and short-term investments 8 8 33 33 1 Statement 3 Investments in debt and equity securities 1,711 1,711 1,576 1,576 1, 2 & 3 Notes 11 & 19 Finance receivables–net (excluding finance leases $^{1}$) 14,473 14,613 14,714 14,798 3 Notes 7 & 19 Wholesale inventory receivables–net (excluding finance leases $^{1}$) 1,105 1,076 1,050 1,025 3 Notes 7 & 19 Foreign currency contracts–net 62 62 47 47 2 Notes 4 & 19 Commodity contracts–net 3 3 — — 2 Notes 4 & 19 Liabilities at December 31, Short-term borrowings 5,166 5,166 5,723 5,723 1 Note 13 Long-term debt (including amounts due within one year): Machinery, Energy & Transportation 9,157 11,216 8,015 9,046 2 Note 14 Financial Products 23,334 23,655 22,815 22,684 2 Note 14 Interest rate swaps–net 20 20 36 36 2 Notes 4 & 19 Commodity contracts–net — — 30 30 2 Notes 4 & 19 Guarantees 5 5 8 8 3 Note 21 126