Caterpillar (CAT) 10-Q 3 May 10 2010 Q1 Quarterly report Financial data

Consolidated Statement of Resul

Consolidated Statement of Results of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010		3 Months Ended Mar. 31, 2009
Sales and revenues
Sales of Machinery and Engines	$7,551		$8,510
Revenues of Financial Products	687		715
Total sales and revenues	8,238		9,225
Operating costs
Cost of goods sold	5,894		7,027
Selling, general and administrative expenses	932		882
Research and development expenses	402		388
Interest expense of Financial Products	233		279
Other operating (income) expenses	269		824
Total operating costs	7,730		9,400
Operating profit (loss)	508		(175)
Interest expense excluding Financial Products	102		101
Other income (expense)	63		64
Consolidated profit (loss) before taxes	469		(212)
Provision (benefit) for income taxes	231		(80)
Profit (loss) of consolidated companies	238		(132)
Equity in profit (loss) of unconsolidated affiliated companies	(2)		1
Profit (loss) of consolidated and affiliated companies	236		(131)
Less: Profit (loss) attributable to noncontrolling interests	3		(19)
Profit (loss)	$233	[1]	($112)	[1]
Profit (loss) per common share	0.37		-0.19
Profit (loss) per common share - diluted	0.36	[2]	-0.19	[2]
Weighted-average common shares outstanding (millions)
Basic	626.4		602.1
Diluted	643.5	[2]	602.1	[2]
Cash dividends declared per common share	$0		$0
[1]Profit (loss) attributable to common stockholders.
[2]Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Consolidated Statement of Finan

Consolidated Statement of Financial Position (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	Dec. 31, 2009
Current assets
Cash and short-term investments	$3,538	$4,867
Receivables - trade and other	6,068	5,611
Receivables - finance	8,123	8,301
Deferred and refundable income taxes	1,153	1,216
Prepaid expenses and other current assets	540	434
Inventories	6,990	6,360
Total current assets	26,412	26,789
Property, plant and equipment - net	12,057	12,386
Long-term receivables - trade and other	722	971
Long-term receivables - finance	12,157	12,279
Investments in unconsolidated affiliated companies	133	105
Noncurrent deferred and refundable income taxes	2,558	2,714
Intangible assets	488	465
Goodwill	2,284	2,269
Other assets	2,025	2,060
Total assets	58,836	60,038
Short-term borrowings
Machinery and Engines	584	433
Financial Products	2,996	3,650
Accounts payable	3,431	2,993
Accrued expenses	3,216	3,351
Accrued wages, salaries and employee benefits	900	797
Customer advances	1,367	1,217
Dividends payable	0	262
Other current liabilities	881	888
Long-term debt due within one year:
Machinery and Engines	248	302
Financial Products	4,794	5,399
Total current liabilities	18,417	19,292
Long-term debt due after one year
Machinery and Engines	5,135	5,652
Financial Products	16,413	16,195
Liability for postemployment benefits	7,281	7,420
Other liabilities	2,116	2,179
Total liabilities	49,362	50,738
Commitments and contingencies (Notes 10 and 12)
Redeemable noncontrolling interest	452	477
Stockholders' equity
Common stock of $1.00 par (Authorized shares: 900,000,000, Issued shares: 3/31/10 and 12/31/09 - 814,894,624) at paid-in amount	3,482	3,439
Treasury stock (3/31/10 - 187,149,230 shares; 12/31/09 - 190,171,905 shares) at cost	(10,595)	(10,646)
Profit employed in the business	19,941	19,711
Accumulated other comprehensive income (loss)	(3,886)	(3,764)
Noncontrolling interests	80	83
Total stockholders' equity	9,022	8,823
Total liabilities, redeemable noncontrolling interest and stockholders' equity	$58,836	$60,038

Parenthetical Data to The Conso

Parenthetical Data to The Consolidated Statement of Financial Position (Unaudited) (USD $)
	Mar. 31, 2010	Dec. 31, 2009
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	187,149,230	190,171,905

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (USD $)
In Millions	Common Stock at Paid-in Amount [Member]		Treasury Stock [Member]		Profit Employed in the Business [Member]		Accumulated Other Comprehensive Income (Loss) [Member]		Noncontrolling Interest [Member]	Total
Beginning at Dec. 31, 2008	$3,057		($11,217)		$19,826		($5,579)		$103	$6,190
Profit (loss) of consolidated and affiliated companies					(112)				(19)	(131)
Foreign Currency Transalation, net of tax							(120)	[1]	(3)	(123)	[1]
Pension & other postretirement benefits: Current year actuarial gain (loss), net of tax							50	[2]		50	[2]
Pension & other postretirement benefits: Amortization of actuarial (gain) loss, net of tax							50	[3]	2	52	[3]
Pension & other postretirement benefits: Current year prior service costs, net of tax							236	[4]		236	[4]
Pension & other postretirement benefits: Amortization of prior service cost, net of tax							6	[5]		6	[5]
Derivative financial instruments: Gains (losses) deferred, net of tax							9	[6]		9	[6]
Derivative financial instruments: (Gains) losses reclassified to earnings, net of tax							8	[7]	(1)	7	[7]
Retained interest: Gains (losses) deferred, net of tax							(9)	[8]		(9)	[8]
Retained interest: (Gains) losses reclassed to earnings, net of tax							14	[6]		14	[6]
Available-for-sale securities: Gains (losses) deferred, net of tax							(8)	[9]		(8)	[9]
Available-for-sale securities: (Gains) losses reclassed to earnings, net of tax							11	[10]		11	[10]
Common shares issued from treasury stock for stock-based compensation	(3)	[11]	3	[11]						0
Stock-based compensation expense	32									32
Cat Japan share redemption					(20)				20	0
Comprehensive income (loss)										114
Ending at Mar. 31, 2009	3,086		(11,214)		19,694		(5,332)		102	6,336
Beginning at Dec. 31, 2009	3,439		(10,646)		19,711		(3,764)		83	8,823
Adjustment to adopt consolidation of variable-interest entites					(6)	[12]	3	[13]		(3)	[14]
Profit (loss) of consolidated and affiliated companies					233				3	236
Foreign Currency Transalation, net of tax							(165)	[15]	(5)	(170)	[15]
Pension & other postretirement benefits: Amortization of actuarial (gain) loss, net of tax							77	[16]	4	81	[16]
Pension & other postretirement benefits: Amortization of prior service cost, net of tax							(2)	[9]		(2)	[9]
Derivative financial instruments: Gains (losses) deferred, net of tax							(65)	[17]		(65)	[17]
Derivative financial instruments: (Gains) losses reclassified to earnings, net of tax							16	[18]		16	[18]
Available-for-sale securities: Gains (losses) deferred, net of tax							14	[18]		14	[18]
Change in ownership for noncontrolling interests	(17)								(11)	(28)
Common shares issued from treasury stock for stock-based compensation	(14)	[19]	40	[19]						26	[19]
Common shares issued from treasury stock for benefit plans	18	[20]	11	[20]						29	[20]
Stock-based compensation expense	42									42
Excess tax benefits from stock-based compensation	14									14
Cat Japan share redemption					3				6	9
Comprehensive income (loss)										110
Ending at Mar. 31, 2010	$3,482		($10,595)		$19,941		($3,886)		$80	$9,022
[1]Net of tax of $(38) million.
[2]Net of tax of $83 million.
[3]Net of tax of $30 million.
[4]Net of tax of $197 million.
[5]Net of tax of $3 million.
[6]Net of tax of $7 million.
[7]Net of tax of $5 million.
[8]Net of tax of $(5) million.
[9]Net of tax of $(4) million.
[10]Net of tax of $6 million.
[11]Common shares issued from treasury stock for stock-based compensation: 183,040.
[12]Adjustments were made on January 1, 2010. As a result, the balance of Profit employed in the business as of January 1, 2010 was $19,705 million.
[13]Adjustments were made on January 1, 2010. As a result, the balance of Accumulated other comprehensive loss as of January 1, 2010 was $3,761 million.
[14]The adjustments were made on January 1, 2010. As a result, the balance of total stockholders' equity as of January 1, 2010 was $8,820 million.
[15]Net of tax of $(64) million.
[16]Net of tax of $46 million.
[17]Net of tax of $(40) million.
[18]Net of tax of $9 million.
[19]Common shares issued from treasury stock for stock-based compensation: 2,489,804.
[20]Common shares issued from treasury stock for benefit plans: 532,871.

Consolidated Statement of Cash

Consolidated Statement of Cash Flow (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flow from operating activities
Profit (loss) of consolidated and affiliated companies	$236	($131)
Adjustments for non-cash items
Depreciation and amortization	554	534
Other	94	106
Changes in assets and liabilities
Receivables - trade and other	(373)	1,622
Inventories	(644)	764
Accounts payable	533	(1,406)
Accrued expenses	(65)	(321)
Customer advances	140	(179)
Other assets - net	109	48
Other liabilities - net	(33)	(142)
Net cash provided by (used for) operating activities	551	895
Cash flow from investing activities
Capital expenditures - excluding equipment leased to others	(204)	(224)
Expenditures for equipment leased to others	(169)	(221)
Proceeds from disposals of property, plant and equipment	353	208
Additions to finance receivables	(1,757)	(1,789)
Collections of finance receivables	1,956	2,450
Proceeds from sales of finance receivables	2	27
Investments and acquisitions (net of cash acquired)	(103)	0
Proceeds from sale of available-for-sale securities	45	87
Investments in available-for-sale securities	(46)	(58)
Other - net	33	23
Net cash provided by (used for) investing activities	110	503
Cash flow from financing activities
Dividends paid	(262)	(253)
Common stock issued, including treasury shares reissued	26	0
Excess tax benefit from stock-based compensation	13	0
Acquistion of noncontrolling interests	(26)	0
Proceeds from debt issued (original maturities greater than three months)
Machinery and Engines	54	121
Financial Products	1,264	4,697
Payments on debt (original maturities greater than three months)
Machinery and Engines	(607)	(205)
Financial Products	(2,729)	(3,116)
Short-term borrowings - net (original maturities three months or less)	331	(1,779)
Net cash provided by (used for) financing activities	(1,936)	(535)
Effect of exchange rate changes on cash	(54)	(33)
Increase (decrease) in cash and short-term investments	(1,329)	830
Cash and short-term investments at beginning of period	4,867	2,736
Cash and short-term investments at end of period	$3,538	$3,566

Basis of Presentation, Nature o

Basis of Presentation, Nature of Operations and Accumulated Other Comprehensive Income (Loss)
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Basis of Presentation	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 month periods ended March 31, 2010 and 2009, (b) the consolidated financial position at March 31, 2010 and December 31, 2009, (c) the consolidated changes in stockholders' equity for the three month periods ended March 31, 2010 and 2009, and (d) the consolidated cash flow for the three month periods ended March 31, 2010 and 2009.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, 2009 (2009 Form 10-K). The December 31, 2009 financial position data included herein is derived from the audited consolidated financial statements included in the 2009 Form 10-K but does not include all disclosures required by U.S. GAAP.
Nature of Operations	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) Engines - A principal line of business including the design, manufacture, marketing and sales of engines for Caterpillar machinery, electric power generation systems, 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 21,800 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.
Accumulated Other Comprehensive Income (Loss)	C.Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) and its components are presented in Consolidated Statement of Changes in Stockholders' Equity.Accumulated other comprehensive income (loss), net of tax, consisted of the following: (Millions of dollars) March 31, 2010 March 31, 2009 Foreign currency translation $ 438 $ 141 Pension and other postretirement benefits (4,364 ) (5,507 ) Derivative financial instruments 11 112 Retained interests (2 ) Available-for-sale securities 29 (76 ) Total accumulated other comprehensive income (loss) $ (3,886 ) $ (5,332 )

New Accounting Guidance

New Accounting Guidance
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
New Accounting Guidance	2. New Accounting Guidance Fair value measurements - In September 2006, the Financial Accounting Standards Board (FASB) issued accounting guidance on fair value measurements, which provides a common definition of fair value and a framework for measuring assets and liabilities at fair values when a particular standard prescribes it. In addition, this guidance expands disclosures about fair value measurements. In February 2008, the FASB issued additional guidance that (1) deferred the effective date of the original guidance for one year for certain nonfinancial assets and nonfinancial liabilities and (2) removed certain leasing transactions from the scope of the original guidance.We applied this new guidance to financial assets and liabilities effective January 1, 2008 and nonfinancial assets and liabilities effective January 1, 2009. The adoption of this guidance did not have a material impact on our financial statements.See Note 17 for additional information. In January 2010, the FASB issued new accounting guidance that requires the gross presentation of activity within the Level 3 fair value measurement roll forward and details of transfers in and out of Level 1 and 2 fair value measurements.It also clarifies existing disclosure requirements regarding the level of disaggregation of fair value measurements and disclosures on inputs.We adopted this new accounting guidance for the quarterly period ended March 31, 2010.The adoption of this guidance did not have a material impact on our financial statements.See Note 17 for additional information. Business combinations and noncontrolling interests in consolidated financial statements - In December 2007, the FASB issued accounting guidance on business combinations and noncontrolling interests in consolidated financial statements.The guidance on business combinations requires the acquiring entity in a business combination to recognize the assets acquired and liabilities assumed. Further, it changes the accounting for acquired in-process research and development assets, contingent consideration, partial acquisitions and transaction costs.Under the guidance on noncontrolling interests, all entities are required to report noncontrolling (minority) interests in subsidiaries as equity in the consolidated financial statements. In addition, transactions between an entity and noncontrolling interests are treated as equity transactions.We adopted this new guidance on January 1, 2009.As required, the guidance on noncontrolling interests was adopted through retrospective application.The adoption of this guidance did not have a material impact on our financial statements.See Note 19 for further details. Disclosures about derivative instruments and hedging activities - In March 2008, the FASB issued accounting guidance on disclosures about derivative instruments and hedging activities.This guidance expands disclosures for derivative instruments by requiring entities to disclose the fair value of derivative instruments and their gains or losses in tabular format.It also requires disclosure of information about credit risk-related contingent features in derivative agreements, counterparty credit ri

Stock-Based Compensation

Stock-Based Compensation
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Stock-Based Compensation	3. Stock-Based Compensation Accounting for stock-based compensation 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-settled stock appreciation rights (SARs), restricted stock units (RSUs) and stock options.We recognized pretax stock-based compensation cost of $42 million and $32 million in the first quarter of 2010 and 2009, respectively. The following table illustrates the type and fair value of the stock-based compensation awards granted during the first quarter of 2010 and 2009, respectively: 2010 2009 # Granted Fair Value Per Award # Granted Fair Value Per Award SARs 7,125,210 $ 22.31 6,260,647 $ 7.10 RSUs 1,711,771 53.35 2,185,674 20.22 Stock options 431,271 22.31 562,580 7.10 The stock price on the date of grant was $57.85 and $22.17 for 2010 and 2009, respectively. The following table provides the assumptions used in determining the fair value of the stock-based awards for the three month periods ended March 31, 2010 and 2009, respectively: Grant Year 2010 2009 Weighted-average dividend yield 2.32% 3.07% Weighted-average volatility 36.4% 36.0% Range of volatilities 35.2-51.8% 35.8-61.0% Range of risk-free interest rates 0.32-3.61% 0.17-2.99% Weighted-average expected lives 7 years 8 years As of March 31, 2010, the total remaining unrecognized compensation cost related to nonvested stock-based compensation awards was $312 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 2.6 years.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Derivative Financial Instruments and Risk Management	4. Derivative Financial Instruments and Risk Management 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 Risk Management 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, commodity forward and option contracts, and stock repurchase contracts.Our derivative activities are subject to the management, 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 variability of 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 asset or 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 (loss) (AOCI) on the Consolidated Statement 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 Consolidated Statement 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

Inventories

Inventories
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Inventories	5. Inventories Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following: (Millions of dollars) March 31, December 31, 2010 2009 Raw materials $ 2,116 $ 1,979 Work-in-process 795 656 Finished goods 3,840 3,465 Supplies 239 260 Total inventories $ 6,990 $ 6,360

Investment in Unconsolidated Af

Investment in Unconsolidated Affiliated Companies
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Investment in Unconsolidated Affiliated Companies	6. Investments in Unconsolidated Affiliated Companies Combined financial information of the unconsolidated affiliated companies accounted for by the equity method (generally on a lag of 3 months or less) was as follows: Results of Operations of unconsolidated affiliated companies: Three Months Ended (Millions of dollars) March 31, 2010 2009 Sales $ 162 $ 123 Cost of sales 120 91 Gross profit $ 42 $ 32 Profit (loss) $ (2 ) $ 2 Financial Position of unconsolidated affiliated companies: March 31, December 31, (Millions of dollars) 2010 2009 Assets: Current assets $ 320 $ 223 Property, plant and equipment net 198 219 Other assets 8 5 526 447 Liabilities: Current liabilities 205 250 Long-term debt due after one year 92 41 Other liabilities 26 17 323 308 Equity $ 203 $ 139 Caterpillar's investments in unconsolidated affiliated companies: (Millions of dollars) Investments in equity method companies $ 98 $ 70 Plus: Investments in cost method companies 35 35 Total investments in unconsolidated affiliated companies $ 133 $ 105

Intangible Assets and Goodwill

Intangible Assets and Goodwill
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Intangible assets and goodwill	7. Intangible Assets and Goodwill A. Intangible assets Intangible assets are comprised of the following: Weighted Amortizable Life (Years) March 31, 2010 (Millions of dollars) Gross Carrying Amount Accumulated Amortization Net Customer relationships 17 $ 417 $ (82 ) $ 335 Intellectual property 9 228 (147 ) 81 Other 11 129 (57 ) 72 Total intangible assets 14 $ 774 $ (286 ) $ 488 Weighted Amortizable Life (Years) December 31, 2009 (Millions of dollars) Gross Carrying Amount Accumulated Amortization Net Customer relationships 18 $ 396 $ (75 ) $ 321 Intellectual property 10 211 (143 ) 68 Other 11 130 (54 ) 76 Total intangible assets 15 $ 737 $ (272 ) $ 465 During the first quarter of 2010, we acquired finite-lived intangible assets of $28 million due to the purchase of GE Transportations Inspection Products business.During the first quarter of 2010, we also acquired finite-lived intangible assets of $12 million due to the purchase of JCS Co. Ltd.See Note 19 for details on these business combinations. Amortization expense for the three months ended March 31, 2010 and March 31, 2009 was $15 million and $18 million, respectively.Amortization expense related to intangible assets is expected to be: (Millions of dollars) 2010 2011 2012 2013 2014 Thereafter $ 63 $ 57 $ 50 $ 45 $ 42 $ 246 B.Goodwill During the first quarter of 2010, we acquired net assets with related goodwill of $14 million as part of the purchase of GE Transportations Inspection Products business.During the first quarter of 2010, we also acquired net assets with related goodwill of $8 million as part of the purchase of JCS Co. Ltd. See Note 19 for details on the acquisition of these assets. We test goodwill for impairment annually and whenever events or circumstances make it more likely than not that an impairment may have occurred.We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis.Goodwill is reviewed for impairment utilizing a two-step process.The first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill.If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired.If the carrying value is greater than the fair value, there is an indication that an impairment may exist and the second step is required.In step two, the implied fair value of goodwill is calculated

Available-For-Sale Securities

Available-For-Sale Securities
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Available-For-Sale Securities	8. Available-For-Sale Securities We have investments in certain debt and equity securities, primarily at Cat Insurance, that have been classified as available-for-sale and recorded at fair value based upon quoted market prices. These fair values are primarily 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) method for 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 new accounting and disclosure requirements regarding recognition and presentation of other-than-temporary impairments.See Note 2 for additional information. March 31, 2010 December 31, 2009 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 $ $ 14 Other U.S. and non-U.S. governmentbonds 71 71 65 65 Corporate bonds Corporate bonds 462 24 486 455 20 475 Asset-backed securities 144 (5 ) 139 141 (7 ) 134 Mortgage-backed debt securities U.S. governmental agency mortgage-backed securities 276 15 291 295 13 308 Residential mortgage-backedsecurities 57 (8 ) 49 61 (10 ) 51 Commercial mortgage-backedsecurities 173 (6 ) 167 175 (13 ) 162 Equity securities Large capitalization value 86 17 103 76 13 89 Smaller company growth 19 7 26 19 5 24 Total $ 1,302 $ 44 $ 1,346 $ 1,301 $ 21 $ 1,322 During the three months ended March 31, 2009, we recognized pretax charges for other-than-temporary declines in the market values of equi

Postretirement Benefits

Postretirement Benefits
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Postretirement Benefits	9. Postretirement Benefits A.Pension and postretirement benefit costs As discussed in Note 18, during 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 follows: U.S. Separation Programs Plan re-measurements as of January 31, 2009, March 31, 2009 and December 31, 2009 resulted in net curtailment losses of $127 million to pension and $55 million to other postretirement benefit plans.Early retirement pension benefit costs of $6 million were also recognized. Non-U.S. Separation Programs Certain plans were re-measured as of March 31, 2009 and December 31, 2009, resulting in pension settlement losses of $34 million, special termination benefits of $2 million to pension and curtailment losses of $1 million to other postretirement benefit plans. The $225 million of curtailment, settlement and special termination benefit expense for 2009 associated with certain pension and other postretirement benefit plans was reported in Other operating (income) expense in the Consolidated Statement of Results of Operations.This includes $201 million reported for the first quarter of 2009. 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, Caterpillar will fund a tax-advantaged Health Reimbursement Arrangement (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 (loss) of $272 million net of tax.The plan was further amended in December 2009 to define the HRA benefit that active employees will receive once they are retired and reach age 65.The plan was re-measured at year-end 2009 and the December amendment resulted in a decrease in our Liability for postretirement benefits of $101 million and an increase in Accumulated other comprehensive income (loss) of $64 million net of tax.These decreases will be amortized into earnings on a straight-line basis over approximately 7 years, the average remaining service period of active employees in the plan.The amendments reduced other postretirement benefits expense by approximately $27 million for the three months ended March 31, 2010 and did not impact expense for the three months ended March 31, 2009. The re-measurements did not have a material impact on our benefit obligations, plan assets or funded status for the three months ended March 31, 2009.There were no re-measurements during the three months ended March 31, 2010. In March 2010, the Patient Protection and Affordable Care Act (the PPACA) and the Health Care and Education Reconciliation Act of 2010 (H.R. 4872) which amends certain provisions of the PPACA were signed into law.As discus

Guarantees and Product Warranty

Guarantees and Product Warranty
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Guarantees and product warranty	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 dealers.We also provided guarantees to a third party related to the performance of contractual obligations by certain Caterpillar dealers. The guarantees cover potential financial losses incurred by the third party resulting from the dealers' nonperformance. 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 letters of credit have varying terms and beneficiaries and are secured by customer assets. Cat Financial has provided a limited indemnity to a third-party bank 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 these guarantees.At March 31, 2010 and December 31, 2009, the related liability was $19 million and $17 million, respectively. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees are as follows: (Millions of dollars) March 31, December 31, 2010 2009 Guarantees with Caterpillar dealers $ 313 $ 313 Guarantees with customers 177 193 Limited indemnity 20 20 Guarantees other 54 64 Total guarantees $ 564 $ 590 We provide guarantees to repurchase certain loans of Caterpillar dealers from a financial trust (Trust) that qualifies as a variable interest entity.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.We determined that we are the primary beneficiary of the Trust as our guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the Trust's economic performance and the obligation to absorb losses, and therefore we have consolidated the financial statements of the Trust.As of March 31, 2010 and December 31, 2009, the Trust's assets of $254 million and $231 million, respectively, are primarily comprised of loans to dealers and the Trust's liabilities of $254 million and $231 million, respectively are primarily comprised of commercial pa

Computation of Profit Per Share

Computation of Profit Per Share
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Computation of Profit Per Share	11. Computations of Profit Per Share (Dollars in millions except per share data) Three Months Ended March 31, 2010 2009 I. Profit (loss) for the period (A)1: $ 233 $ (112 ) II. Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 626.4 602.1 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 17.1 Average common shares outstanding for fully diluted computation (C) 643.5 602.1 III. Profit (loss) per share of common stock: Assuming no dilution (A/B) $ 0.37 $ (0.19 ) Assuming full dilution (A/C) $ 0.36 $ (0.19 ) 1 Profit (loss) attributable to common stockholders. SARs and stock options to purchase 25,891,566 common shares were outstanding for the three months ended March 31, 2010, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive.In 2009, the assumed exercise of stock-based compensation awards was not considered because the impact would be anti-dilutive.

Environmenal and Legal Matters

Environmenal and Legal Matters
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Environmenal and Legal Matters	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 compliance with 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, we do 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 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. We have disclosed certain individual legal proceedings in this filing.Additionally, we are involved in other unresolved legal actions that arise in the normal course of business. The most prevalent of these unresolved actions involve disputes related to product design, manufacture and performance liability (including claimed asbestos and welding fumes exposure), contracts, employment issues or intellectual property rights.Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity. 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 will have 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 facil

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Income Taxes	13. Income Taxes The provision for income taxes in the first quarter of 2010reflects an estimated annual effective tax rate of 30 percent, excluding the discrete charge discussed below, compared to a discrete period effective tax rate of 37.5 percent for first quarter 2009.The 2010 estimated annual tax rate is expected to be less than the U.S. tax rate of 35 percent primarily due to profits in tax jurisdictions with rates lower than the U.S. rate.The 2010 estimated annual tax rate is based on current tax law and therefore does not include the U.S. research and development tax credit and other benefits that have not been extended past 2009. A discrete calculation was used to report the 2009 first quarter tax benefit rather than an estimated annual tax rate as the estimated range of annual profit/(loss) before tax produced significant variability and made it difficult to reasonably estimate the 2009 annual effective tax rate. The provision for income taxes for 2010 also includes a deferred tax charge of $90 million due to the enactment of U.S. health care legislation effectively making government subsidies received for Medicare-equivalent prescription drug coverage taxable. Guidance on accounting for income taxes requires that the tax effects of changes in laws be reflected in the financial statements in the period in which the legislation is enacted regardless of the effective date.Deferred tax assets had previously been recorded based on the liability for other postretirement benefits without regard to the tax-free subsidy. As a result of the law change, deferred tax assets were reduced to reflect the expected future income tax on the subsidy.Beginning in 2013, a cash tax cost will be incurred when the subsidies received increase taxable income. It is reasonably possible that changes in the valuation allowances against deferred tax assets of certain non-U.S. entities may occur in the next year.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Segment Information	14. 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 multiple profit and cost center divisions. Our divisional structure and 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.Inter-segment sales of components are a source of revenue for some of 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 are a source of revenue for some of these divisions. Component business divisions are profit centers primarily responsible for product management, development, manufacturing, marketing, sales and product support for internal and external customers.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. 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. Centers of excellence divisions are cost centers primarily responsible for Caterpillar's most critical/differentiating processes in the areas of Marketing and Product Support, Production and Product Development. The segment information for 2009 has been retrospectively adjusted to conform to the 2010 presentation.Core Components, formerly included in the all other category, is now a reportable segment.The portion of postretirement benefit expense ($89 million in the first quarter of 2009) that was allocated to Machinery and Engines business divisions based on budgeted external and inter-segment sales, is now a methodology difference between segment and external reporting. Our measurement system is complex and is designed to evaluate performance and to drive continuous improvement.We have chosen to discl

Securitizations

Securitizations
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Securitizations	15. Securitizations Cat Financial transfers 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 provide a source of liquidity and allow for better management of their balance sheet capacity. Securitized Retail Installment Sale Contracts and Finance Leases Cat Financial periodically transfers 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, issue asset-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 issue debt to pay for the finance 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 SPEs.The assets of the SPEs are legally isolated and are not available to pay Cat Financial creditors.Cat Financial retains interests in the securitization transactions, including subordinated certificates issued by the SPEs, rights to cash reserves, and residual interests.For bankruptcy analysis purposes, Cat Financial has sold the finance receivables to the SPEs in a true sale and the SPEs are separate legal entities.The investors and the SPEs have no recourse to any of Cat Financials other assets for failure of debtors to pay when due. In accordance with the new consolidation accounting guidance adopted on January 1, 2010, these SPEs were concluded to be VIEs. Cat Financial determined that they were the primary beneficiary based on their power to direct activities through their role as servicer and their obligation to absorb losses and right to receive benefits and therefore consolidated the entities using the carrying amounts of the SPEs' assets and liabilities. The restricted assets (Receivables-finance, Long-term receivables-finance, Prepaid expenses and other current assets, and Other assets) of these consolidated SPEs totaled $354 million at March 31, 2010. The liabilities (Accrued expenses, Long-term debt due within one year-Financial Products, and Other liabilities) of these consolidated SPEs totaled $284 million at March 31, 2010. Prior to January 1, 2010, the SPEs were considered to be QSPEs and thus not consolidated.Cat Financials retained interests in the securitized assets were classified as available-for-sale securities and were included in Other assets in the Consolidated Statement of Financial Position at fair value. Cat Financial estimated fair value and cash flows using a valuation model and key assumptions for credit losses, prepayment rates and discount rates. These assumptions were based on Cat Financials historical experience, market trends and anticipated performance relative to the particular assets securitized. The fair

Redeemable noncontrolling inter

Redeemable noncontrolling interest
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Redeemable noncontrolling interest	16. 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 Mitsubishi Heavy Industries (MHI's) 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 beginning August1, 2013, 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 to the 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 or fully 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 first quarter of 2009, there was no change to the estimated redemption value.During the first quarter of 2010, 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 $9 million due to this adjustment.As of March 31, 2010, the fair value of the redeemable noncontrolling interest remained greater than the estimated 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.Based on our current expectations for Cat Japan, we expect the fair value of the redeemable noncontrolling interest to remain greater than the redemption value. However, if economic conditions deteriorate and Cat Japans business forecast is negatively impacted, it is possible that the fair value of the redeemable noncontrolling interest may fall below the estimated redemption value. 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 Japan's results of operations, 33 percent of Cat Japan's c

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Fair Value Measurements	17. Fair Value Measurements A. Fair value measurements The guidance on fair value measurements 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.This guidance 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 this guidance, 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.If quoted 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. The guidance on fair value measurements 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), the nonperformance 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. 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 government bonds, corporate bonds and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds. Der

Employee Separation Charges

Employee Separation Charges
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Employee Separation Charges	18. Employee separation charges In 2009, we reported employee separation charges of $481 million in Other operating (income) expenses in the Consolidated Statement of Results of Operations related to various voluntary and involuntary separation programs.These programs were in response to a sharp decline in sales volume due to the global recession. 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 employees have been properly identified and the costs are estimable. The following table summarizes the 2009 separation charges and subsequent 2010 activity by geographic region: Machinery and Engines (Millions of dollars) North America Latin America EAME Asia Pacific Financial Products1 Total Liability balance at December 31, 2008 $ 4 $ 2 $ 5 $ $ $ 11 2009 Separation charges2 $ 323 $ 15 $ 102 $ 31 $ 10 $ 481 2009 Benefit payments and other adjustments (313 ) (17 ) (78 ) (25 ) (10 ) (443 ) Liability balance at December 31, 2009 $ 14 $ $ 29 $ 6 $ $ 49 2010 Benefit payments and other adjustments $ (8 ) $ $ (8 ) $ (6 ) $ $ (22 ) Liability balance at March 31, 2010 $ 6 $ $ 21 $ $ $ 27 1 Includes $8 million for North America and $2 million for EAME. 2 Includes $357 million recognized in the first quarter of 2009. The remaining liability balances as of March 31, 2010 represent costs for employees that have either not yet separated from the Company or their full severance has not yet been paid.The majority of these remaining costs are expected to be paid during 2010. In addition to the 2009 separation charges noted above, we reported $225 million ($201 million in the first quarter) of costs associated with certain pension and other postretirement benefit plans, which were also recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.See Note 9 for additional information. The majority of the separation charges, made up primarily of cash severance payments, and pension and other postretirement benefit costs noted above were not assigned to operating segments.They are included in the reconciliation of total accountable profit from reportable segments to total profit before taxes.See Note 14 for additional details surrounding this reconciliation.

Business Combinations

Business Combinations
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Business Combinations	19. Business combinations GE Transportations Inspection Products Business In March 2010, we acquired the Inspection Products business from GE Transportations Intelligent Control Systems division for approximately $45 million.The acquired business has operations located primarily in the United States, Germany and Italy that design, manufacture and sell hot wheel and hot box detectors, data acquisition systems, draggers and other related inspection products for the global freight and passenger rail industries. The acquisition supports our strategic initiative to expand the scope and product range of our rail signaling business and will provide a foundation for global expansion. The transaction was financed with available cash.Tangible assets acquired of $12 million and liabilities assumed of $9 million were recorded at their fair values.Finite-lived intangible assets acquired of $28 million related to customer relationships and intellectual property are being amortized on a straight-line basis over a weighted-average amortization period of approximately 13 years.Goodwill of $14 million, approximately $8 million of which is deductible for income tax purposes, represents the excess cost over the fair value of the net tangible and finite-lived intangible assets acquired.These values represent a preliminary allocation of the purchase price subject to finalization of post-closing procedures.The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the All Other category in Note 14.Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results. JCS Company, Ltd. In March 2010, we acquired 100 percent of the equity in privately held JCS Company Ltd. (JCS) for approximately $34 million, consisting of $32 million paid at closing with an additional $2 million post-closing adjustment to be paid during the second quarter 2010.Based in Pyongtaek, South Korea, JCS is a leading manufacturer of centrifugally cast metal face seals used in many of the idlers and rollers contained in our undercarriage components. JCS is also a large supplier of seals to external customers in Asia and presents the opportunity to expand our customer base. The purchase of this business provides Caterpillar access to proprietary technology and expertise which we will be able to replicate across our own seal production processes. The transaction was financed with available cash.Tangible assets acquired of $22 million and liabilities assumed of $8 million were recorded at their fair values. Finite-lived intangible assets acquired of $12 million related to intellectual property and customer relationships are being amortized on a straight-line basis over a weighted-average amortization period of approximately 9 years. Goodwill of $8 million, non-deductible for income tax purposes, represents the excess of cost over the fair value of net tangible and finite-lived intangible assets acquired. These values represent a preliminary allocation of the purcha

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31

Entity Information

Entity Information (USD $)
	3 Months Ended Mar. 31, 2010
Entity [Text Block]
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	$39,453,798,013
Entity Common Stock, Shares Outstanding	627,745,394
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1