Caterpillar (CAT) 10-Q/A 12 Aug 09 2009 Q2 Quarterly report (amended) Financial data

1000 - Consolidated Statement o

1000 - Consolidated Statement of Results of Operations (USD $)
In Millions, except Share data	3 Months Ended Jun. 30, 2009		3 Months Ended Jun. 30, 2008		6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 30, 2008
Sales and revenues
Sales of Machinery and Engines	$7,254		$12,797		$15,764		$23,776
Revenues of Financial Products	721		827		1,436		1,644
Total sales and revenues	7,975		13,624		17,200		25,420
Operating costs
Cost of goods sold	5,752		10,036		12,779		18,645
Selling, general and administrative expenses	914		1,074		1,796		2,033
Research and development expenses	351		415		739		784
Interest expense of Financial Products	272		279		551		563
Other operating (income) expenses	339		295		1,163		577
Total operating costs	7,628		12,099		17,028		22,602
Operating profit	347		1,525		172		2,818
Interest expense excluding Financial Products	109		70		210		144
Other income (expense)	163		83		227		205
Consolidated profit before taxes	401		1,538		189		2,879
Provision for income taxes	40		434		(40)		854
Profit of consolidated companies	361		1,104		229		2,025
Equity in profit (loss) of unconsolidated affiliated companies	(1)		10		0		21
Profit of consolidated and affiliated companies	360		1,114		229		2,046
Less: Profit (loss) attributable to noncontrolling interests	(11)		8		(30)		18
Profit	$371	[2]	$1,106	[2]	$259	[2]	$2,028	[2]
Profit per common share	0.61		1.8		0.43		3.29
Profit per common share - diluted	0.6		1.74		0.42		3.18
Weighted-average common shares outstanding
Basic	611,800,000		614,300,000		607,600,000		616,000,000
Diluted	619,800,000	[1]	635,500,000	[1]	614,000,000	[1]	637,000,000	[1]
Cash dividends declared per common share	0.84		0.78		0.84		0.78
[1]Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
[2]Profit attributable to common stockholders.

2000 - Consolidated Statement o

2000 - Consolidated Statement of Financial Position (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Current assets
Cash and short-term investments	$3,991	$2,736
Receivables - trade and other	6,534	9,397
Receivables - finance	8,110	8,731
Deferred and refundable income taxes	1,147	1,223
Prepaid expenses and other current assets	441	765
Inventories	7,160	8,781
Total current assets	27,383	31,633
Property, plant and equipment - net	12,226	12,524
Long-term receivables - trade and other	817	1,479
Long-term receivables - finance	13,488	14,264
Investments in unconsolidated affiliated companies	92	94
Noncurrent Deferred and Refundable Income Taxes	3,270	3,311
Intangible assets	485	511
Goodwill	2,264	2,261
Other assets	2,067	1,705
Total assets	62,092	67,782
Short-term borrowings
Machinery and Engines	702	1,632
Financial Products	4,470	5,577
Accounts payable	2,682	4,827
Accrued expenses	3,611	4,121
Accrued wages, salaries and employee benefits	795	1,242
Customer advances	1,546	1,898
Dividends payable	261	253
Other current liabilities	857	1,027
Long-term debt due within one year:
Machinery and Engines	472	456
Financial Products	4,094	5,036
Total current liabilities	19,490	26,069
Long-term debt due after one year
Machinery and Engines	5,677	5,736
Financial Products	17,881	17,098
Liability for postemployment benefits	8,920	9,975
Other liabilities	2,268	2,190
Total liabilities	54,236	61,068
Redeemable noncontrolling interest	481	524
Stockholders' equity
Common stock at paid-in amount	3,347	3,057
Treasury stock at cost	(10,745)	(11,217)
Profit employed in the business	19,579	19,826
Accumulated other comprehensive income (loss)	(4,906)	(5,579)
Noncontrolling interests	100	103
Total stockholders' equity	7,375	6,190
Total liabilities, redeemable noncontrolling interest and stockholders' equity	$62,092	$67,782

2010 - ParentheticalDataToTheCo

2010 - ParentheticalDataToTheConsolidatedStatementOfFinancialPosition (USD $)
	Jun. 30, 2009	Dec. 31, 2008
Stockholders' equity
Common stock, par value	$1	$1
Authorized shares	900,000,000	900,000,000
Issued shares	814,894,624	814,894,624
Treasury Stock, Shares	193,601,082	213,367,983

3000 - Consolidated Statement o

3000 - Consolidated Statement of Changes in Stockholders' Equity (USD $)
In Millions	Common Stock at Paid-in Amount [Member]		Treasury Stock [Member]		Profit Employed in the Business [Member]		Accumulated Other Comprehensive Income [Member]		Noncontrolling Interest [Member]	Total
Beginning at Dec. 31, 2007	$2,744		($9,451)		$17,398		($1,808)		$113	$8,996
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to adopt measurement date provision of FAS 158, net of tax					(33)	[21]	17	[22]		(16)	[23]
Profit of consolidated and affiliated companies					2,028				18	2,046
Foreign currency transalation, net of tax							177	[14]	(1)	176	[14]
Pension & other retirement benefits: Amortization of actuarial (gain) loss, net of tax							76	[15]		76	[15]
Pension & other retirement benefits: Amortization of transition asset/obligation, net of tax							1	[8]		1	[8]
Derivative financial instruments: Gains (losses) deferred, net of tax							7	[8]		7	[8]
Derivative financial instrumentss - Gains (losses) reclassified to earnings, net of tax							(45)	[7]		(45)	[7]
Retained interest: Gains / (losses) deferred, net of tax							(5)	[6]		(5)	[6]
Retained interest: Gains / (losses) reclassed to earnings, net of tax							2	[9]		2	[9]
Available-for-sale securities: Gains (losses) deferred, net of tax							(36)	[5]		(36)	[5]
Available-for-sale securities: Gains (losses) reclassed to earnings, net of tax							(1)	[8]		(1)	[8]
Change in ownership for noncontrolling interests									(17)	(17)
Dividends declared					(475)					(475)
Common shares issued from treasury stock for stock-based compensation at cost	5	[3]	111	[3]						116	[3]
Stock-based compensation expense	107									107
Tax benefits from stock-based compensation	51									51
Shares repurchased			(1,390)	[20]						(1,390)	[20]
Stock repurchase derivative contracts	(10)									(10)
Ending at Jun. 30, 2008	2,897		(10,730)		18,918		(1,615)	[19]	113	9,583
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning at Dec. 31, 2008	3,057		(11,217)		19,826		(5,579)		103	6,190
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Profit of consolidated and affiliated companies					259				(30)	229
Foreign currency transalation, net of tax							166	[12]	1	167	[12]
Pension & other retirement benefits: Current year actuarial (gain) loss, net of tax							55	[18]		55	[18]
Pension & other retirement benefits: Amortization of actuarial (gain) loss, net of tax							95	[16]	2	97	[16]
Pension & other retirement benefits: Current year prior service costs, net of tax							236	[13]		236	[13]
Pension & other retirement benefits: Amortization of prior service cost, net of tax							2	[9]		2	[9]
Pension & other retirement benefits: Amortization of transition asset/obligation, net of tax							1	[8]		1	[8]
Derivative financial instruments: Gains (losses) deferred, net of tax							92	[17]		92	[17]
Derivative financial instrumentss - Gains (losses) reclassified to earnings, net of tax							(15)	[4]		(15)	[4]
Retained interest: Gains / (losses) deferred, net of tax							(22)	[4]		(22)	[4]
Retained interest: Gains / (losses) reclassed to earnings, net of tax							18	[10]		18	[10]
Available-for-sale securities: Gains (losses) deferred, net of tax							26	[11]		26	[11]
Available-for-sale securities: Gains (losses) reclassed to earnings, net of tax							19	[10]		19	[10]
Change in ownership for noncontrolling interests									(6)	(6)
Dividends declared					(513)					(513)
Common shares issued from treasury stock for stock-based compensation at cost	(6)	[1]	37	[1]						31	[1]
Common shares issued from treasury stock for benefit plans	224	[2]	435	[2]						659	[2]
Stock-based compensation expense	74									74
Tax benefits from stock-based compensation	(2)									(2)
Cat Japan share redemption					7				30	37
Ending at Jun. 30, 2009	$3,347		($10,745)		$19,579		($4,906)		$100	$7,375
[1]Common shares issued: 1,286,806.
[2]Common shares issued: 18,480,095.
[3]Common shares issued: 4,123,074.
[4]Net of tax of $(12) million.
[5]Net of tax of $(18) million.
[6]Net of tax of $(2) million.
[7]Net of tax of $(26) million.
[8]Net of tax of $0 million.
[9]Net of tax of $1 million.
[10]Net of tax of $10 million.
[11]Net of tax of $14 million.
[12]Net of tax of $16 million.
[13]Net of tax of $197 million.
[14]Net of tax of $3 million.
[15]Net of tax of $41 million.
[16]Net of tax of $54 million.
[17]Net of tax of $57 million.
[18]Net of tax of $80 million.
[19]Pension and other postretirement benefits include net adjustments for Cat Japan, while they were an unconsolidated affiliate, of ($6) million for the six months ended June 30, 2008. The ending balance was ($58) million at June 30, 2008.
[20]Shares repurchased: 19,393,026
[21]The adjustment was made on January 1, 2008 and was net of tax of $(17) million. As a result, the balance of Profit employed in the business as of January 1, 2008 is $17,365 million.
[22]The adjustment was made on January 1, 2008 and was net of tax of $9 million. As a result, the balance of Accumulated other comprehensive income (loss) as of January 1, 2008 was $(1,791) million.
[23]The adjustments were made on January 1, 2008. As a result, the balance of total stockholders' equity as of January 1, 2008 was $8,980 million.

4000 - Consolidated Statement o

4000 - Consolidated Statement of Cash Flow (USD $)
In Millions	3 Months Ended Jun. 30, 2009		3 Months Ended Jun. 30, 2008		6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 30, 2008
Cash flow from operating activities
Profit of consolidated and affiliated companies	$360		$1,114		$229		$2,046
Adjustments for non-cash items
Depreciation and amortization					1,072		952
Other					59		184
Changes in assets and liabilities
Receivables - trade and other					3,133		(1,137)
Inventories					1,631		(1,009)
Accounts payable and accrued expenses					(2,717)		1,023
Customer advances					(338)		210
Other assets - net					168		(93)
Other liabilities - net					(434)		(271)
Net cash provided by (used for) operating activities					2,803		1,905
Cash flow from investing activities
Capital expenditures - excluding equipment leased to others					(443)		(814)
Expenditures for equipment leased to others					(441)		(699)
Proceeds from disposals of property, plant and equipment					454		449
Additions to finance receivables					(3,800)		(7,099)
Collections of finance receivables					5,119		4,748
Proceeds from sales of finance receivables					93		696
Investments and acquisitions (net of cash acquired)					0		(111)
Proceeds from sales of available-for-sale securities					170		173
Investments in available-for-sale securities					(251)		(230)
Other - net					(53)		56
Net cash provided by (used for) investing activities					848		(2,831)
Cash flow from financing activities
Dividends paid					(505)		(444)
Common stock issued, including treasury shares reissued					31		116
Payment for stock repurchase derivative contracts					0		(38)
Treasury shares purchased					0		(1,362)
Excess tax benefit from stock-based compensation					2		53
Acquistion of noncontrolling interests					(6)		0
Proceeds from debt issued (original maturities greater than three months)
Machinery and Engines					872		110
Financial Products					8,157		9,048
Payments on debt (original maturities greater than three months)
Machinery and Engines					(915)		(133)
Financial Products					(6,655)		(6,397)
Short-term borrowings (original maturities three months or less) - net					(3,365)		(393)
Net cash provided by (used for) financing activities					(2,384)		560
Effect of exchange rate changes on cash					(12)		26
Increase (decrease) in cash and short-term investments					1,255		(340)
Cash and short-term investments at beginning of period					2,736	[1]	1,122	[1]
Cash and short-term investments at end of period	$3,991	[1]	$782	[1]	$3,991	[1]	$782	[1]
[1]All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.

6000 - Basis of Presentation an

6000 - Basis of Presentation and Nature of Operations
	6 Months Ended Jun. 30, 2009 USD / shares
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
Nature of Operations [Text Block]	1. B.Nature of Operations We operate in three principal lines of business: (1) Machinery A principal line of business which includes the design, manufacture, marketing and sales of construction, mining and forestry machinerytrack and wheel tractors, track and wheel loaders, pipelayers, motor graders,wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment and related parts. Also includes logistics services for other companies and the design, manufacture, remanufacture, maintenance and services of rail-related products. (2) EnginesA principal line of business including the design, manufacture, marketing and sales of engines for Caterpillar machinery; electric power generation systems; on-highway vehicles and locomotives; marine, petroleum, construction, industrial, agricultural and other applications; and related parts.Also includes remanufacturing of Caterpillar engines and a variety of Caterpillar machine and engine components and remanufacturing services for other companies.Reciprocating engines meet power needs ranging from 10 to 21,700 horsepower (8 to over 16 000 kilowatts).Turbines range from 1,600 to 30,000 horsepower (1 200 to 22 000 kilowatts). (3) Financial Products A principal line of business consisting primarily of Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Insurance Holdings, Inc. (Cat Insurance) and their respective subsidiaries.Cat Financial provides a wide range of financing alternatives to customers and dealers for Caterpillar machinery and engines, Solar gas turbines as well as other equipment and marine vessels.Cat Financial also extends loans to customers and dealers.Cat Insurance provides various forms of insurance to customers and dealers to help support the purchase and lease of our equipment. Our Machinery and Enginesoperations are highly integrated.Throughout the Notes, Machinery and Engines represents the aggregate total of these principal lines of business.
Basis of Accounting [Text Block]	1. A.Basis of Presentation In the opinion of management, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and six month periods ended June 30, 2009 and 2008, (b) the consolidated financial position at June 30, 2009 and December 31, 2008, (c) the consolidated changes in stockholders' equity for the six month periods ended June 30, 2009 and 2008, and (d) the consolidated statement of cash flow for the six month periods ended June 30, 2009 and 2008.The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our Company's annual report on Form 10-K for the year ended December 31, 2008, as supplemented by the Companyscurrent report on Form 8-K filed on May 14, 2009 (2008 Form 10-K) to reflect certain retrospective adjustments relating to the adoption of SFAS 160, Noncontrolling Interests in Consolidated Financial Statements an amendment of ARB No. 51, and the change in our reportable segments as discussed in Note 13. Comprehensive income (loss) is comprised of Profit of consolidated and affiliated companies, as well as adjustments for foreign currency translation, derivative instruments designated as cash flow hedges, available-for-sale securities, pension and other postretirement benefits and retained interests.Total Comprehensive income for the three monthsended June 30, 2009 and 2008 was $791 million and $1,208 million, respectively.Total Comprehensive income for the six months ended June 30, 2009 and 2008 was $905 million and $2,221 million, respectively. The December 31, 2008 financial position data included herein is derived from the audited consolidated financial statements included in the 2008 Form 10-K but does not include all disclosures required by U.S. GAAP. We have performed a review of subsequent events through July 31, 2009, the date the financial statements were issued, and concluded there were no events or transactions occurring during this period that required recognition or disclosure in our financial statements.

6010 - New Accounting Pronounce

6010 - New Accounting Pronouncements
	6 Months Ended Jun. 30, 2009 USD / shares
Description of New Accounting Pronouncements Not yet Adopted	2. New Accounting Pronouncements SFAS 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157 (SFAS 157), Fair Value Measurements. SFAS 157 provides a common definition of fair value and a framework for measuring assets and liabilitiesat fair values when a particular standard prescribes it. In addition, the Statement expands disclosures about fair value measurements. In February 2008, the FASB issued final Staff Positions that (1) deferred the effective date of this Statement for one year for certain nonfinancial assets and nonfinancial liabilities (see below) and (2) removed certain leasing transactions from the scope of the Statement.We applied this new accounting standard to all other fair value measurements effective January 1, 2008. The adoption of SFAS 157 did not have a material impact on our financial statements. See Note 14 for additional information. FSP 157-2 In February 2008, the FASB issued FASB Staff Position on Statement 157, "Effective Date of FASB Statement No. 157" (FSP 157-2).FSP 157-2 delayed the effective date of SFAS 157 for nonfinancial assets and nonfinancial liabilities, except those that arerecognized or disclosed on a recurring basis, to fiscal years beginning after November 15, 2008.Our significant nonfinancial assets and liabilities include those initially measured at fair value in a business combination and goodwill tested annually for impairment.We adopted this new accounting standard on January 1, 2009.The adoption of FSP 157-2 did not have a material impact on our financial statements. FSP 157-3 In October 2008, the FASB issued FASB Staff Position on Statement 157, "Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active (FSP 157-3).FSP 157-3 clarifies how SFAS 157 should be applied when valuing securities in markets that are not active by illustrating key considerations in determining fair value.It also reaffirms the notion of fair value as the exit price as of the measurement date.FSP 157-3 was effective upon issuance, which included periods for which financial statements have not yet been issued.We adopted this new accounting standard on July 1, 2008.The adoption of FSP 157-3 did not have a material impact on our financial statements. SFAS 158 In September 2006, the FASB issued Statement of Financial Accounting Standards No. 158 (SFAS 158), Employers Accounting for Defined Benefit Pension and Other Postretirement Plans an amendment of FASB Statements No. 87, 88, 106 and 132(R).SFAS 158requires recognition of the overfunded or underfunded status of pension and other postretirement benefit plans on the balance sheet.Also, the measurement date the date at which the benefit obligation and plan assets are measured is required to be the companys fiscal year-end.We adopted the balance sheet recognition provisions at December 31, 2006, and adopted the year-end measurement date effective January 1, 2008 using the one measurement approach.Under the one measurementapproach, net periodic benefit cost for the period between any early measurement date and the end of the fiscal year that

6020 - Stock Based Compensation

6020 - Stock Based Compensation
	6 Months Ended Jun. 30, 2009 USD / shares
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	3. Stock-Based Compensation Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment (SFAS 123R), requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award.Stock-based compensation primarily consists of stock-settledstock appreciation rights (SARs), restricted stock units (RSUs) and stock options.We recognized pretax stock-based compensation cost in the amount of $41 million and $74 million for the three and six months ended June 30, 2009, respectively; and $70 million and $107 million for the three and six months ended June 30, 2008, respectively. The following table illustrates the type and fair market value of the stock-based compensation awards granted during the six month periods ended June 30, 2009 and 2008, respectively: 2009 2008 # Granted Fair Value Per Award # Granted Fair Value Per Award SARs 6,260,647 $ 7.10 4,476,095 $ 22.32 RSUs 2,185,674 20.22 1,511,523 69.17 Stock options 562,580 7.10 410,506 22.32 The stock price on the date of grant was $22.17 and $73.20 for 2009 and 2008, respectively. The following table provides the assumptions used in determining the fair value of the stock-based awards for the six month periods ended June 30, 2009 and 2008, respectively: Grant Year 2009 2008 Weighted-average dividend yield 3.07% 1.89% Weighted-average volatility 36.02% 27.14% Range of volatilities 35.75-61.02% 27.13-28.99% Range of risk-free interest rates 0.17-2.99% 1.60-3.64% Weighted-average expected lives 8 years 8 years As of June 30, 2009, the total remaining unrecognized compensation cost related to nonvested stock-based compensation awards was $153 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 2.0 years. Our long-standing practices and policies specify all stock-based compensation awards are approved by the Compensation Committee (the Committee) of the Board of Directors on the date of grant.The stock-based award approval process specifies the number of awards granted, the terms of the award and the grant date.Thesame terms and conditions are consistently applied to all employee grants, including Officers. The Committee approves all individual Officer grants.The number of stock-based compensation awards included in an individuals award is determined based on the methodology approved by the Committee.In 2007, under the terms of the Caterpillar Inc. 2006 Long-Term Incentive Plan (approved by stockholders in June of 2006), theCommittee approved the exercise price methodology to be theclosing price of the Company stock on the date of grant.

6030 - Derivative Instruments a

6030 - Derivative Instruments and Hedging Activities
	6 Months Ended Jun. 30, 2009 USD / shares
Derivative Instruments and Hedging Activities Disclosure [Text Block]	4. Derivative Instruments and Hedging Activities Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices.In addition, the amount of Caterpillar stock that can be repurchased under our stock repurchase program is impacted by movements in the price of the stock.Our RiskManagement Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and Caterpillar stock price exposures.Our policy specifies that derivatives are not to be used for speculative purposes.Derivatives that we use are primarily foreign currency forward and option contracts, interest rate swaps and commodity forward and option contracts.Our derivative activities are subject to themanagement, direction and control of our senior financial officers.Risk management practices, including the use of financial derivative instruments, are presented to the Audit Committee of the Board of Directors at least annually. All derivatives are recognized on the Consolidated Statement of Financial Position at their fair value. On the date the derivative contract is entered, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability ("fair value" hedge), (2) a hedge of a forecasted transaction or the variabilityof cash flow to be paid ("cash flow" hedge), or (3) an "undesignated" instrument. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income (AOCI) in the ConsolidatedStatement of Financial Position until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings.Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. Cash flow from designated derivative financial instruments are classified within the same category as the item being hedged on the Consolidated Statement of Cash Flow.Cash flow from undesignated derivative financial instruments are included in the investing category on the Consolidated Statement of Cash Flow. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions.This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the ConsolidatedStatement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge's inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting chan

6040 - Inventories

6040 - Inventories
	6 Months Ended Jun. 30, 2009 USD / shares
Inventories
Inventory Disclosure [Text Block]	5. Inventories Inventories (principally using the "last-in, first-out" (LIFO) method) are comprised of the following: (Millions of dollars) June 30, December 31, 2009 2008 Raw materials $ 2,300 $ 2,678 Work-in-process 959 1,508 Finished goods 3,641 4,316 Supplies 260 279 Total inventories $ 7,160 $ 8,781 Inventory quantities have been reduced during the six months ended June 30, 2009.This reduction resulted in a liquidation of LIFO inventory layers carried at lower costs prevailing in prior years as compared with current costs.The effect of this reduction of inventory that is not expected to be replacedby the end of 2009 decreased Cost of goods sold in the Consolidated Results of Operations by approximately $110 million and increased Profit by approximately $85 million or $0.14 per share for the three and six months ended June 30, 2009.Additional LIFO liquidations may occur during the second half of 2009.

6050 - Investments in Unconsoli

6050 - Investments in Unconsolidated Affiliated Companies
	6 Months Ended Jun. 30, 2009 USD / shares
Investment to unconsolidated affiliated companies [Text Block]	6. Investments in Unconsolidated Affiliated Companies Our investments in affiliated companies accounted for by the equity method have historically consisted primarily of a 50 percent interest in Shin Caterpillar Mitsubishi Ltd. (SCM) located in Japan.On August 1, 2008, SCM redeemed half of Mitsubishi Heavy Industries Ltd.s (MHIs) shares in SCM.As a result, Caterpillar now owns 67 percent of the renamed entity, Caterpillar Japan Ltd. (Cat Japan) and consolidates its financial statements.In February 2008, we sold our 23 percent equity investment in A.S.V. Inc. (ASV) resulting in a $60 million pretax gain.Accordingly, the June 30, 2009 and December 31, 2008 financial position and equity investment amounts noted below do not include ASV or Cat Japan. Combined financial information of the unconsolidated affiliated companies accounted for by the equity method (generally on a lag of three months or less) was as follows: Results of Operations of unconsolidated affiliated companies: Three Months Ended Six Months Ended June 30, June 30, (Millions of dollars) 2009 2008 2009 2008 Sales $ 144 $ 1,083 $ 267 $ 2,171 Cost of sales 110 901 201 1,801 Gross profit $ 34 $ 182 $ 66 $ 370 Profit (loss) $ (10 ) $ 20 $ (8 ) $ 37 Sales from SCM to Caterpillar for the three months ended June 30, 2008 of $553 million and for the six months ended June 30, 2008 of $995 million are included in the affiliated company sales.In addition, SCM purchases of Caterpillar products were $66 million for the three months ended June 30, 2008 and $139 millionfor the six months ended June 30, 2008. Financial Position of unconsolidated affiliated companies: June 30, December 31, (Millions of dollars) 2009 2008 Assets: Current assets $ 211 $ 209 Property, plant and equipment net 227 227 Other assets 11 26 449 462 Liabilities: Current liabilities 260 173 Long-term debt due after one year 40 110 Other liabilities 17 35 317 318 Ownership $ 132 $ 144 Caterpillars investments in unconsolidated affiliated companies: (Millions of dollars) Investments in equity method companies $ 66 $ 66 Plus: Investments in cost method companies 26 28 Total investments in unconsolidated affiliated companies $ 92 $ 94

6060 - Intangible Assets and Go

6060 - Intangible Assets and Goodwill
	6 Months Ended Jun. 30, 2009 USD / shares
Goodwill and Intangible Assets Disclosure [Text Block]	7. Intangible Assets and Goodwill A.Intangible assets Intangible assets are comprised of the following: (Dollars in millions) Weighted Amortizable Life (Years) June 30, 2009 December 31, 2008 Customer relationships 18 $ 401 $ 397 Intellectual property 10 210 211 Other 11 114 112 Total finite-lived intangible assets gross 15 725 720 Less: Accumulated amortization (240 ) (209 ) Intangible assets net $ 485 $ 511 Amortization expense for the three and six months ended June 30, 2009 was $13 million and $31 million, respectively.Amortization expense for the three and six months ended June 30, 2008 was $12 million and $32 million, respectively.Amortization expense related to intangible assets is expected to be: (Millions of dollars) 2009 2010 2011 2012 2013 Thereafter $ 62 $ 58 $ 50 $ 42 $ 37 $ 267 B.Goodwill Annually onOctober 1, we test goodwill for impairment in accordance with Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets."Goodwill is tested for impairment between annual tests whenever events or circumstances make it more likely than not that an impairment may have occurred. No goodwill was impaired or disposed of during the first half of 2009 or 2008.The carrying amount of the goodwill by reportable segment as of June 30, 2009 and December 31, 2008 was as follows: (Millions of dollars) June 30, 2009 December 31, 2008 Building Construction Products $ 26 $ 26 Cat Japan 1 232 233 Earthmoving 43 43 Excavation 39 39 Electric Power 203 203 Large Power Systems 569 569 Marine Petroleum Power 60 60 Mining 1 28 27 All Other 1,2 1,064 1,061 Total $ 2,264 $ 2,261 1 Change from December 31, 2008 due to foreign currency translation. 2 Includes all other operating segments (See Note 13). As discussed in Note 13, our reportable segments were changed in the first quarter 2009.As a result of these changes, goodwill of $43 million, $39 million and $28 million was reallocated to the newly formed Earthmoving, Excavation and Mining reportable segments, respectively.The goodwill was reallocatedprimarily from the former reportable segments of EAME Operations, Heavy Construction Mining and Infrastructure Development.Additionally, goodwill of $22 million was reallocated to Building Construction Products from the All Other category, while goodwill of $478 million was reallocated to the All Other category from the former Industrial Power Systems reportable segment.The newly formed Cat Japan reportable segment with goodwill of $232 million was previously included in the AllOther category.

6070 - Available For Sale Secur

6070 - Available For Sale Securities
	6 Months Ended Jun. 30, 2009 USD / shares
Available-for-sale Securities [Text Block]	8. Available-For-Sale Securities Financial Products, primarily Cat Insurance, has investments in certain debt and equity securities that have been classified as available-for-sale in accordance with Statement of Financial Accounting Standards No. 115 (SFAS 115), Accounting for Certain Investments in Debt and Equity Securities and recorded at fair value basedupon quoted market prices. These fair values are included in Other assets in the Consolidated Statement of Financial Position. Unrealized gains and losses arising from the revaluation of available-for-sale securities are included, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position).Realized gains and losses on sales of investments are generally determined using the FIFO ("first-in, first-out") methodfor debt instruments and the specific identification method for equity securities.Realized gains and losses are included in Other income (expense) in the Consolidated Statement of Results of Operations. Effective April 1, 2009, we adopted the accounting and disclosure requirements of FSP FAS 115-2 and FAS 124-2.See Note 2 for additional information. June 30, 2009 December 31, 2008 Unrealized Unrealized Pretax Net Pretax Net (Millions of dollars) Cost Basis Gains (Losses) Fair Value Cost Basis Gains (Losses) Fair Value Government debt U.S. treasury bonds $ 14 $ $ 14 $ 14 $ 1 $ 15 Other U.S. and non-U.S. government bonds 57 57 15 (1 ) 14 Corporate bonds Corporate bonds 430 (1 ) 429 343 (22 ) 321 Asset-backed securities 158 (17 ) 141 165 (27 ) 138 Mortgage-backed debt securities U.S. governmental agency mortgage- backed securities 310 10 320 319 5 324 Residential mortgage-backed securities 70 (16 ) 54 79 (19 ) 60 Commercial mortgage-backed securities 182 (33 ) 149 176 (47 ) 129 Equity securities Large capitalization value 90 2 92 126 (13 ) 113 Smaller company growth 19 2 21 20 (2 ) 18 Total $ 1,330 $ (53 ) $ 1,277 $ 1,257 $ (125 ) $ 1,132 In first quarter 2009, we recognized pretax charges in accordance with the application of SFAS 115 for other-than-temporary declines in the market values of equity securities in the Cat Insurance investment portfolios of $11 million.These charges were accounted for as a r

6080 - Postretirement Benefits

6080 - Postretirement Benefits
	6 Months Ended Jun. 30, 2009 USD / shares
Postemployment benefit plans [Text Block]	9. Postretirement Benefits A.Pension and postretirement benefit plan costs As discussed in Note 17, first quarter 2009 voluntary and involuntary separation programs impacted employees participating in certain U.S. and non-U.S. pension and other postretirement benefit plans.Due to the significance of these events, certain plans were re-measured as of January 31, 2009 and March 31, 2009 as follows: U.S. Voluntary Separation Program Plan re-measurements as of January 31, 2009 resulted in curtailment losses to the U.S. support and management pension and other postretirement benefit plans of $80 million and $45 million, respectively. Other U.S. Separation Programs Certain plans were re-measured as of March 31, 2009, resulting in net curtailment losses of $44 million to pension and $16 million to other postretirement benefit plans.Early retirement pension benefit costs of $6 million werealso recognized. Non-U.S. Separation Programs Certain plans were re-measured as of March 31, 2009, resulting in settlement losses of $9 million to pension and curtailment losses of $1 million to other postretirement benefit plans. In March 2009, we amended our U.S. support and management other postretirement benefit plan.Beginning in 2010, certain retirees age 65 and older will enroll in individual health plans that work with Medicare and will no longer participate in a Caterpillar-sponsored group health plan.In addition, Caterpillarwill fund a tax-advantaged Health Reimbursement Account (HRA) to assist the retirees with medical expenses.The plan amendment required a plan re-measurement as of March 31, 2009, which resulted in a decrease in our Liability for postretirement benefits of $432 million and an increase in Accumulated other comprehensive income of $272 million after-tax.The decrease will be amortized into earnings on a straight-line basis over approximately 7 years, the average remaining service period ofactive employees impacted by the plan changes.The amendment reduced other postretirement benefits expense by approximately $20 million during the second quarter 2009. The re-measurements did not have a material impact on our benefit obligations, plan assets or funded status. (Millions of dollars) U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits June 30, June 30, June 30, 2009 2008 2009 2008 2009 2008 For the three months ended: Components of net periodic benefit cost: Service cost $ 43 $ 50 $ 20 $ 21 $ 18 $ 21 Interest cost 172 157 34 39 69 77 Expected return on plan assets (193 ) (221 ) (43 ) (50 ) (27 ) (35 ) Amortization of: Net asset existing at adoption of SFAS 87/106 1 1 Prior service cost /(credit) 1 7 8 1 (14 ) (9 ) Net actuarial loss /(gain) 63 34 9 8 5 16 Total cost included in operating profit $ 92 $ 28 $ 20 $ 19 $ 52 $ 71 (Millions of d

6090 - Guarantees and Product W

6090 - Guarantees and Product Warranty
	6 Months Ended Jun. 30, 2009 USD / shares
Guarantees and Product Warranty
Garantees and Product Warranty Disclosure [Text Block]	10. Guarantees and Product Warranty We have provided an indemnity to a third-party insurance company for potential losses related to performance bonds issued on behalf of Caterpillar dealers.The bonds are issued to insure governmental agencies against nonperformance by certain Caterpillar dealers. We provide loan guarantees to third-party lenders for financing associated with machinery purchased by customers. These guarantees have varying terms and are secured by the machinery. In addition, Cat Financial participates in standby letters of credit issued to third parties on behalf of their customers. These standby lettersof credit have varying terms and beneficiaries and are secured by customer assets. Cat Financial has provided a limited indemnity to a third-party bank for $23 million resulting from the assignment of certain leases to that bank. The indemnity is for the possibility that the insurers of these leases would become insolvent. The indemnity expires December 15, 2012 and is unsecured. No loss has been experienced or is anticipated under any of the guarantees noted above.At June 30, 2009 and December 31, 2008, the related liability was $15 million and $14 million, respectively. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly berecovered under recourse or collateralized provisions) we could be required to make under the guarantees are as follows: (Millions of dollars) June 30, December 31, 2009 2008 Guarantees with Caterpillar dealers $ 93 $ 100 Guarantees with customers 185 136 Limited indemnity 23 25 Guarantees other 64 43 Total guarantees $ 365 $ 304 We provide guarantees to repurchase certain loans of Caterpillar dealers from a financial trust (Trust) that qualifies as a variable interest entity under FIN 46R, Consolidation of Variable Interest Entities An Interpretation of ARB No. 51 (Revised 2003).The purpose of the Trust is to provide short-term working capital loans to Caterpillar dealers.This Trust issues commercial paper and uses the proceeds to fund its loan program.We have a loan purchase agreement with the Trust that obligates us to purchase certain loans that are not paid at maturity.We receive a fee for providing this guarantee, which provides a source of liquidity for the Trust. At December 31, 2008, we determined that we were the primary beneficiary of the Trust as our guarantee would require us to absorb a majority of the entitys expected losses, and therefore consolidated the financial position of the Trust in the Consolidated Statement of Financial Position.As of June 30, 2009, the Trusts assets of $409 million are primarily comprised of loans to dealers and the liabilities of $409 million are primarily comprised of commercial paper.No loss has been experienced or is anticipated under this loan purchase agreement. Our assets are not available to pay creditors of the Trust, except to the extentwe may be obligated to perform under the guarantee, and assets of the Trust are not available to pay our creditors. Our product warranty liab

6100 - Computations of Profit P

6100 - Computations of Profit Per Share
	6 Months Ended Jun. 30, 2009 USD / shares
Earnings Per Share [Text Block]	11. Computations of Profit Per Share Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions except per share data) 2009 2008 2009 2008 I. Profit for the period (A) 1: $ 371 $ 1,106 $ 259 $ 2,028 II. Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 611.8 614.3 607.6 616.0 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 8.0 21.2 6.4 21.0 Average common shares outstanding for fully diluted computation (C) 619.8 635.5 614.0 637.0 III. Profit per share of common stock: Assuming no dilution (A/B) $ 0.61 $ 1.80 $ 0.43 $ 3.29 Assuming full dilution (A/C) $ 0.60 $ 1.74 $ 0.42 $ 3.18 1 Profit attributable to common stockholders. For the three and six months ended June 30, 2009, there were outstanding SARs and stock options to purchase 29,040,001 and 41,376,879 common shares, respectively, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.SARs and stock options to purchase4,871,995 common shares were outstanding for both the three and six months ended June 30, 2008, which were antidilutive.

6110 - Environmental, Legal and

6110 - Environmental, Legal and Tax Matters
	6 Months Ended Jun. 30, 2009 USD / shares
Environmental, Legal and Tax Matters
Environmental and Legal Matters [Text Block]	12. Environmental, Legal and Tax Matters The company is regulated by federal, state and international environmental laws governing our use, transport and disposal of substances and control of emissions. In addition to governing our manufacturing and other operations, these laws often impact the development of our products, including, but not limited to, required compliancewith air emissions standards applicable to internal combustion engines. Compliance with these existing laws has not had a material impact on our capital expenditures, earnings or global competitive position. We are engaged in remedial activities at a number of locations, often with other companies, pursuant to federal and state laws.When it is probable we will pay remedial costs at a site and those costs can be reasonably estimated, the costs are charged against our earnings.In formulating that estimate, wedo not consider amounts expected to be recovered from insurance companies or others.The amount recorded for environmental remediation is not material and is included in Accrued expenses in the Consolidated Statement of Financial Position. We cannot reasonably estimate costs at sites in the very early stages of remediation.Currently, we have a few sites in the very early stages of remediation, and there is no more than a remote chance that a material amount for remedial activities at any individual site, or at all sites in the aggregate, will be required. On May 14, 2007, the U.S. Environmental Protection Agency (EPA) issued a Notice of Violation to Caterpillar Inc., alleging various violations of Clean Air Act Sections 203, 206 and 207.EPA claims that Caterpillar violated such sections by shipping engines and catalytic converter after-treatment devices separately, introducing into commerce a number of uncertified and/or misbuilt engines, and failing to timely report emissions-related defects.Caterpillar is currently engaging in negotiations with EPA to resolve these issues, but it is too early in the process to place precise estimates on the potential exposure to penalties.However, Caterpillar is cooperating with EPA and, based upon initial discussions, and although penalties could potentially exceed $100,000, management does not believe that this issue willhave a material adverse impact on our consolidated results of operations, financial position or liquidity. On February 8, 2009, an incident at Caterpillar's Joliet, Illinois facility resulted in the release of approximately 3,000 gallons of wastewater into the Des Plaines River. In coordination with state and federal authorities, appropriate remediation measures have been taken. On February 23, the Illinois Attorney General fileda Complaint in Will County Circuit Court containing seven Counts of violations of state environmental laws and regulations.Each Count seeks injunctive relief, as well as statutory penalties of $50,000 per violation and $10,000 per day of violation. In addition, on March 5, the U.S. EPA served Caterpillar with a Notice of Intent to file a Civil Administrative Action, indicating EPAs intent to seek civil penalties for violations of the Clean Water Act and Oil Pollution Act.The Notic

6120 - Segment Information

6120 - Segment Information
	6 Months Ended Jun. 30, 2009 USD / shares
Segment Information
Segment Reporting Disclosure [Text Block]	13. Segment Information A. Basis for segment information Caterpillar is organized based on a decentralized structure that has established responsibilities to continually improve business focus and increase our ability to react quickly to changes in the global business cycle, customer needs and competitors' actions. Our current structure uses a matrix organization comprised of multipleprofit and cost center divisions. In the first quarter of 2009, our organizational responsibilities were changed significantly to align the machine product, manufacturing and marketing organizations.The new divisional structure and revised set of responsibilities are as follows: Machine business divisions are profit centers primarily responsible for product management, development, marketing, sales and product support.Machine business divisions also have select manufacturing responsibilities.These activities were previously included within product and component divisions, manufacturingdivisions and machinery marketing divisions.Inter-segment sales of components may also be a source of revenue for these divisions. Engine business divisions are profit centers primarily responsible for product management, development, manufacturing, marketing, sales and product support.Inter-segment sales of engines and/or components may also be a source of revenue for these divisions. Component business divisions are profit centers primarily responsible for product management, development, manufacturing, marketing and product support for internal and external customers.Some of these activities were previously included within product and manufacturing divisions.Inter-segment sales of components are a source of revenue for these divisions. Service business divisions are profit centers primarily responsible for various services and service-related products to customers including financial, logistics, remanufacturing and rail services.Inter-segment sales of services and service-related products are a source of revenue for some of these divisions. Manufacturing services divisions are cost centers primarily responsible for the manufacture of products and/or components within the geographic regions of the Americas and EAME. Previously manufacturing divisions were profit centers with inter-segment sales of components, machines and/or engines to product divisions as the primarysources of revenue. Corporate services divisions are cost centers primarily responsible for the performance of certain support functions globally (e.g., Finance, Human Resources, Information Technology, Legal and Purchasing) and to provide centralized services. Regional distribution services divisions are cost centers primarily responsible for the total portfolio of business with each dealer, the dealer relationship, dealer development and ensuring the most efficient and effective distribution of machines, engines and parts.Previously these functions were primarily performedby machinery marketing divisions. Centers of excellence divisions are cost centers primarily responsible for Caterpillars most critical/differentiating processes in the areas of Marketing and Product Support

6130 - Fair Value Disclosures

6130 - Fair Value Disclosures
	6 Months Ended Jun. 30, 2009 USD / shares
Fair Value Disclosures
Fair Value, by Balance Sheet Grouping [Text Block]	14. Fair Value Disclosures A. Fair value measurements We adopted SFAS 157, Fair Value Measurements as of January 1, 2008.See Note 2 for additional information.SFAS 157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.SFAS 157 also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques.Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions.In accordance with SFAS 157, fair value measurements are classified under the following hierarchy: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Level 3 Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1.In some cases where market prices are not available, we make use of observable market based inputs to calculate fair value, in which case the measurements are classified within Level 2.Ifquoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates.These measurements are classified within Level 3. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation.A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. SFAS 157 expanded the definition of fair value to include the consideration of nonperformance risk.Nonperformance risk refers to the risk that an obligation (either by a counterparty or Caterpillar) will not be fulfilled.For our financial assets traded in an active market (Level 1 and certain Level 2), thenonperformance risk is included in the market price.For certain other financial assets and liabilities (Level 2 and 3), our fair value calculations have been adjusted accordingly. We adopted FSP FAS 157-4 as of April 1, 2009. See Note 2 for additional information. Available-for-sale securities Our available-for-sale securities, primarily at Cat Insurance, include a mix of equity and debt instruments (see Note 8 for additional information).Fair values for our U.S. treasury bonds and equity securities are based upon valuations for identical instruments in active markets.Fair values for other governmentbonds, corporate bonds and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as recent sa

6140 - Redeemable Noncontrollin

6140 - Redeemable Noncontrolling Interest Caterpillar Japan Ltd.
	6 Months Ended Jun. 30, 2009 USD / shares
Redeemable Noncontrolling Interest - Caterpillar Japan Ltd.
Redeemable non-controlling interest Disclosure [Text Block]	15. Redeemable Noncontrolling Interest Caterpillar Japan Ltd. On August 1, 2008, Shin Caterpillar Mitsubishi Ltd. (SCM) completed the first phase of a share redemption plan whereby SCM redeemed half of MHIs shares in SCM.This resulted in Caterpillar owning 67 percent of the outstanding shares of SCM and MHI owning the remaining 33 percent.As part of the share redemption, SCM was renamed Caterpillar Japan Ltd. (Cat Japan).Both Cat Japan and MHI have options, exercisable after five years, to require the redemption of the remaining shares owned by MHI, which if exercised, would make Caterpillar the sole owner of Cat Japan. The remaining 33 percent of Cat Japan owned by MHI has been reported as redeemable noncontrolling interest and classified as mezzanine equity (temporary equity) in the Consolidated Statement of Financial Position. The redeemable noncontrolling interest is reported at its estimated redemption value.Any adjustment tothe redemption value impacts Profit employed in the business, but does not impact Profit.If the fair value of the redeemable noncontrolling interest falls below the redemption value, profit available to common stockholders would be reduced by the difference between the redemption value and the fair value.This would result in lower profit in the profit per common share computation in that period.Reductions impacting the profit per common share computation may be partially orfully reversed in subsequent periods if the fair value of the redeemable noncontrolling interest increases relative to the redemption value.Such increases in profit per common share would be limited to cumulative prior reductions.During the second quarter of 2009, the estimated redemption value decreased, resulting in an adjustment to the carrying value of the redeemable noncontrolling interest. Profit employed in the business increased by $37 million due to this adjustment.Asof June 30, 2009, the fair value of the redeemable noncontrolling interest remained greater than the redemption value. We estimate the fair value of the redeemable noncontrolling interest using a discounted five year forecasted cash flow with a year-five residual value.If worldwide economic conditions deteriorate further and Cat Japans business forecast is negatively impacted, it is reasonably possible that the fair value of the redeemablenoncontrolling interest may fall below the estimated redemption value in the near term.Should this occur, profit would be reduced in the profit per common share computation by the difference between the redemption value and the fair value.Lower long-term growth rates, reduced long-term profitability as well as changes in interest rates, costs, pricing, capital expenditures and general market conditions may reduce the fair value of the redeemable noncontrolling interest. With the consolidation of Cat Japans results of operations, 33 percent of Cat Japans comprehensive income or loss is attributed to the redeemable noncontrolling interest, impacting its carrying value.Because the redeemable noncontrolling interest must be reported at its estimated future redemption value, the impactfrom attributing the comprehensive income or l

6150 - Securitizations

6150 - Securitizations
	6 Months Ended Jun. 30, 2009 USD / shares
Securitizations
Transfers and Servicing of Financial Assets, Policy [Text Block]	16. Securitizations Cat Financial sells certain finance receivables relating to retail installment sale contracts and finance leases as part of their asset-backed securitization program.In addition, Cat Financial has sold interests in wholesale receivables to third-party commercial paper conduits.These transactions providea source of liquidity and allow for better management of Cat Financials balance sheet capacity. Securitized Retail Installment Sale Contracts and Finance Leases Cat Financial periodically sells certain finance receivables relating to retail installment sale contracts and finance leases to special purpose entities (SPEs) as part of their asset-backed securitization program.The SPEs have limited purposes and generally are only permitted to purchase the finance receivables, issueasset-backed securities and make payments on the securities.The SPEs only issue a single series of securities and generally are dissolved when those securities have been paid in full.The SPEs, typically trusts, are considered to be qualifying special-purpose entities (QSPEs) and thus, in accordance with SFAS 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities," (SFAS 140) are not consolidated.The QSPEs issue debt to pay for thefinance receivables they acquire from Cat Financial.The primary source for repayment of the debt is the cash flows generated from the finance receivables owned by the QSPEs.The assets of the QSPEs are legally isolated and are not available to pay the creditors of Cat Financial or any other of their affiliates.For bankruptcy analysis purposes, Cat Financial has sold the finance receivables to the QSPEs in a true sale and the QSPEs are separate legal entities.Theinvestors and the securitization trusts have no recourse to any of Cat Financials other assets for failure of debtors to pay when due. Cat Financial retains interests in the retail finance receivables that are sold through their asset-backed securitization program.Retained interests include subordinated certificates, an interest in future cash flows (excess) and reserve accounts.Retained interests in securitized assets are classified asavailable-for-sale securities and are included in Other assets in the Consolidated Statement of Financial Position at fair value in accordance with SFAS115, "Accounting for Certain Investments in Debt and Equity Securities."Cat Financial estimates fair value and cash flows using a valuation model and key assumptions for credit losses, prepayment rates and discount rates.These assumptions are based on historical experience, market trends and anticipated performance relative to theparticular assets securitized. Cat Financial periodically evaluates for impairment in accordance with FSP FAS 115-2 and FAS 124-2 (See Note 2 for additional information) and recognizes the credit component of an other-than-temporary impairment in Profit and the noncredit component in Accumulated other comprehensive income (loss) for those retained interests in which Cat Financial does not intend to sell and it is not likely that they will be required to sell prior to recovery. During the second quarte

6160 - Employee separation char

6160 - Employee separation charges
	6 Months Ended Jun. 30, 2009 USD / shares
Employee separation charges
Restructuring and Related Activities Disclosure [Text Block]	17. Employee separation charges During the fourth quarter 2008, we recognized employee separation charges of $30 million in Other operating (income) expenses in the Consolidated Statement of Results of Operations related to various voluntary and involuntary separation programs.These programs, impacting 3,085 production and support and management employees worldwide, were in response to a sharp decline in sales volume due to the global recession. During the first quarter 2009, continued cost reduction efforts in various locations around the world resulted in additional separation charges of $357 million, recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations, related to the following separation programs: U.S. Voluntary Separation Program - During December 2008, we announced a voluntary separation program for certain support and management employees based in the United States.Eligible employees had until January 12, 2009 to sign up for the program, and generallyuntil January 31, 2009 to make a final decision.Participating employees received severance pay based on current salary level and years of service.During first quarter 2009, 2,213 employees accepted the program, the majority of which separated from Caterpillar by March 31, 2009. Other U.S. Separation Programs - During the first quarter 2009, we initiated plans to reduce U.S. based production and support and management positions through a variety of programs.For support and management employees, these included involuntary separation programs.For production employees, these included both voluntary and involuntary separation programs.During the first quarter 2009, 6,870 employees accepted or were subject to these programs. Non-U.S. Separation Programs - During the first quarter 2009, we initiated several other separation programs outside the U.S.These programs, designed specific to the laws and regulations of the individual countries, represent voluntary and involuntary plans forproduction and support and management employees.During the first quarter 2009, 3,957 employees accepted or were subject to the various programs. During the second quarter 2009, on-going cost reduction efforts worldwide resulted in additional separation charges of $85 million, recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.These efforts, impacting production and support and management positions, relatedto new and previously initiated U.S. and non-U.S. voluntary and involuntary separation programs.During the second quarter 2009, 1,820 employees accepted or were subject to these programs. Our accounting for separations is dependent upon how the particular program is designed.For voluntary programs, eligible separation costs are recognized at the time of employee acceptance.For involuntary programs, eligible costs are recognized when management has approved the program, the affected employeeshave been properly identified and the costs are estimable. The following table summarizes the separation charges in the fourth quarter 2008 and first and second quarter 2009 by geographic reg

Document Information

Document Information
	6 Months Ended Jun. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Amendment Description	N/A
Document Period End Date	2009-06-30

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009
Entity Information [Line Items]
Entity Registrant Name	Caterpillar Inc.
Entity Central Index Key	0000018230
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$20,527,538,628
Entity Common Stock, Shares Outstanding	621,293,542