content_image/1058148.jpg
## Finance receivables 

Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. 

## Wholesale inventory receivables 

Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. 

## Short-term borrowings 

Carrying amount approximated fair value. 

## Long-term debt 

Fair value for fixed and floating rate debt was estimated based on quoted market prices. 

## Guarantees 

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: 

<img src='content_image/1058148.jpg'>

$^{1}$ 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. 

## 19.Concentration of credit risk 

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. 

