Fair value levels presented below are described in the “Signifi cant accounting policies – Fair value measurement” section of these Notes.
Assets and liabilities measured at fair value
The following table provides the fair value hierarchy for financial assets and liabilities that are measured at fair value, on a recurring or non-recurring basis, in the statement of financial position at December 31, 2014 and 2013:
|At December 31, 2014||At December 31, 2013|
|($ million)||Note||Level 1||Level 2||Level 3||Total||Level 1||Level 2||Level 3||Total|
|Other non-current securities||(16)||1||-||-||1||1||-||-||1|
|Other fi nancial assets||(21)||-||205||-||205||-||261||-||261|
|Other financial liabilities||-||(235)||-||(235)||-||(94)||-||(94)|
In 2014 and 2013 there were no transfers between levels in the fair value hierarchy.
Description of the valuation techniques used to determine the fair value of derivative fi nancial instruments is included in Note 21 “Other fi nancial assets and Other fi nancial liabilities”.
Assets and liabilities not measured at fair value
With reference to Cash and cash equivalents, Trade receivables, Current tax receivables, Other current assets, Trade payables and Other current liabilities, their carrying amount approximates their fair value due to the short maturity of these items.
The following tables provide the fair value and fair value hierarchy for the most relevant categories of fi nancial assets and liabilities that are not measured at fair value in the Statement of fi nancial position at December 31, 2014 and 2013:
|At December 31, 2014|
|($ million)||Note||Level 1||Level 2||Level 3||Total Fair Value||Carrying value|
|Other receivables from ﬁnancing activities||(19)||-||-||94||94||94|
|Total Receivables from financing activities||-||-||21,427||21,427||21,472|
|Borrowings from banks||(27)||-||5,343||-||5,343||5,547|
|Payables represented by securities||(27)||-||699||-||699||701|
|At December 31, 2013|
|($ million)||Note||Level 1||Level 2||Level 3||Total Fair|
|Other receivables from ﬁnancing activities||(19)||-||-||136||136||136|
|Total Receivables from financing activities||-||-||21,984||21,984||21,986|
|Borrowings from banks||(27)||-||6,940||-||6,940||7,101|
|Payables represented by securities||(27)||-||538||-||538||541|
The fair values of Receivables from fi nancing activities are included in the Level 3 and have been estimated based on discounted cash fl ows analysis with the most signifi cant inputs being the market discount rates that refl ect conditions applied in various reference markets on receivables with similar characteristic, adjusted to take into account the credit risk of the counterparties.
The fair values of Bonds are included in the Level 2, with the exception of the bonds issued by CNH Industrial Finance Europe S.A. which are included in the Level 1 and have been estimated with reference to quoted prices in active markets.
The fair value of Asset backed fi nancing, Borrowings from banks, Payable represented by securities and Other debt are included in the Level 2 and have been estimated based on discounted cash fl ows analysis using the current market interest rates at year-end adjusted for the Group non-performance risk over the remaining term of the fi nancial liability.