34. Fair value measurement

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, 2014At December 31, 2013
($ million)NoteLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Other non-current securities (16) 1 - - 1 1 - - 1
Other fi nancial assets (21) - 205 - 205 - 261 - 261
Total Assets (21) 1 205 - 206 1 261 - 262
Other financial liabilities   - (235) - (235) - (94) - (94)
Total 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)NoteLevel 1Level 2Level 3Total Fair ValueCarrying value
Retail financing (19) - - 10,976 10,976 11,023
Dealer financing (19) - - 9,398 9,398 9,400
Finance leases (19) - - 959 959 955
Other receivables from financing activities (19) - - 94 94 94
Total Receivables from financing activities - - 21,427 21,427 21,472
Asset-backed financing (27) - 13,586 - 13,586 13,587
Bonds (27) 5,119 4,789 - 9,908 9,519
Borrowings from banks (27) - 5,343 - 5,343 5,547
Payables represented by securities (27) - 699 - 699 701
Other debt (27) - 347 - 347 347
Total Debt   5,119 24,764 - 29,883 29,701

  At December 31, 2013
($ million)NoteLevel 1Level 2Level 3Total Fair
Value
Carrying
value
Retail financing (19) - - 11,200 11,200 11,202
Dealer financing (19) - - 9,119 9,119 9,113
Finance leases (19) - - 1,529 1,529 1,535
Other receivables from financing activities (19) - - 136 136 136
Total Receivables from financing activities   - - 21,984 21,984 21,986
Asset-backed financing (27) - 14,747 - 14,747 14,727
Bonds (27) 3,471 4,497 - 7,968 7,329
Borrowings from banks (27) - 6,940 - 6,940 7,101
Payables represented by securities (27) - 538 - 538 541
Other debt (27) - 248 - 248 248
Total Debt   3,471 26,970 - 30,441 29,946

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.