Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information | ' |
Entity Registrant Name | 'CATERPILLAR INC |
Entity Central Index Key | '0000018230 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 636,355,991 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Consolidated_Statement_of_Resu
Consolidated Statement of Results of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Sales and revenues: | ' | ' | ' | ' | ||||
Sales of Machinery and Power Systems | $12,678 | $15,739 | $39,048 | $47,711 | ||||
Revenues of Financial Products | 745 | 706 | 2,206 | 2,089 | ||||
Total sales and revenues | 13,423 | 16,445 | 41,254 | 49,800 | ||||
Operating costs: | ' | ' | ' | ' | ||||
Cost of goods sold | 9,774 | 11,639 | 30,186 | 35,156 | ||||
Selling, general and administrative expenses | 1,319 | 1,471 | 4,130 | 4,328 | ||||
Research and development expenses | 469 | 634 | 1,579 | 1,853 | ||||
Interest expense of Financial Products | 178 | 197 | 552 | 599 | ||||
Other operating (income) expenses | 282 | -92 | 631 | 329 | ||||
Total operating costs | 12,022 | 13,849 | 37,078 | 42,265 | ||||
Operating profit | 1,401 | 2,596 | 4,176 | 7,535 | ||||
Interest expense excluding Financial Products | 116 | 129 | 356 | 352 | ||||
Other income (expense) | -24 | -17 | -79 | 141 | ||||
Consolidated profit before taxes | 1,261 | 2,450 | 3,741 | 7,324 | ||||
Provision (benefit) for income taxes | 310 | 753 | 943 | 2,314 | ||||
Profit of consolidated companies | 951 | 1,697 | 2,798 | 5,010 | ||||
Equity in profit (loss) of unconsolidated affiliated companies | -1 | 5 | -1 | 12 | ||||
Profit of consolidated and affiliated companies | 950 | 1,702 | 2,797 | 5,022 | ||||
Less: Profit (loss) attributable to noncontrolling interests | 4 | 3 | 11 | 38 | ||||
Profit | $946 | [1] | $1,699 | [1] | $2,786 | [1] | $4,984 | [1] |
Profit per common share (in dollars per share) | $1.48 | $2.60 | $4.30 | $7.64 | ||||
Profit per common share - diluted (in dollars per share) | $1.45 | [2] | $2.54 | [2] | $4.21 | [2] | $7.44 | [2] |
Weighted-average common shares outstanding (millions) | ' | ' | ' | ' | ||||
Basic (in shares) | 639.3 | 653.6 | 647.6 | 652 | ||||
Diluted (in shares) | 651.9 | [2] | 668.7 | [2] | 661.3 | [2] | 669.7 | [2] |
Cash dividends declared per common share (in dollars per share) | $0 | $0 | $1.12 | $0.98 | ||||
[1] | 1 Profit attributable to common stockholders. | |||||||
[2] | 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Profit of consolidated and affiliated companies | $950 | $1,702 | $2,797 | $5,022 |
Other Comprehensive Income (Loss), Net of Tax: | ' | ' | ' | ' |
Foreign currency translation, net of tax (provision)/benefit of: Three months ended: 2013-$33, 2012-$11; Nine months ended: 2013-$41, 2012-$(5) | 291 | 193 | -255 | 35 |
Pension and other postretirement benefits: | ' | ' | ' | ' |
Current year actuarial gain (loss), net of tax (provision)/benefit of: Three months ended: 2013-$2, 2012-$91; Nine months ended: 2013-$(14), 2012-$83 | -3 | -155 | 24 | -140 |
Amortization of actuarial (gain) loss, net of tax (provision)/benefit of: Three months ended: 2013-$(67), 2012-$(61); Nine months ended: 2013-$(201), 2012-$(181) | 129 | 114 | 388 | 340 |
Current year prior service credit (cost), net of tax (provision)/benefit of: Three months ended: 2013-$0, 2012-$(3); Nine months ended: 2013-$0, 2012-$(1) | 0 | 4 | 0 | 1 |
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: Three months ended: 2013-$5, 2012-$4; Nine months ended: 2013-$14, 2012-$12 | -9 | -8 | -27 | -23 |
Amortization of transition (asset) obligation, net of tax (provision)/benefit of: Three months ended: 2013-$(1), 2012-$0; Nine months ended: 2013-$(1), 2012-$0 | 0 | 1 | 1 | 2 |
Derivative financial instruments: | ' | ' | ' | ' |
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2013-$(15), 2012-$5; Nine months ended: 2013-$(2), 2012-$21 | 26 | -7 | 2 | -35 |
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2013-$(5), 2012-$(5); Nine months ended: 2013-$(24), 2012-$(6) | 9 | 9 | 42 | 10 |
Available-for-sale securities: | ' | ' | ' | ' |
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2013-$(6), 2012-$(8); Nine months ended: 2013-$(8), 2012-$(13) | 9 | 12 | 14 | 28 |
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2013-$0, 2012-$0; Nine months ended: 2013-$0, 2012-$0 | -1 | -1 | -1 | -3 |
Total other comprehensive income (loss), net of tax | 451 | 162 | 188 | 215 |
Comprehensive Income | 1,401 | 1,864 | 2,985 | 5,237 |
Less: comprehensive income attributable to the noncontrolling interests | -4 | -3 | -13 | -20 |
Comprehensive income attributable to stockholders | $1,397 | $1,861 | $2,972 | $5,217 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Parenthetical) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Foreign currency translation, net of tax (provision)/benefit | $33 | $11 | $41 | ($5) |
Current year actuarial gain (loss), net of tax (provision)/benefit | 2 | 91 | -14 | 83 |
Amortization of actuarial (gain) loss, net of tax (provision)/benefit | -67 | -61 | -201 | -181 |
Current year prior service credit (cost), net of tax (provision)/benefit | 0 | -3 | 0 | -1 |
Amortization of prior service (credit) cost, net of tax (provision)/benefit | 5 | 4 | 14 | 12 |
Amortization of transition (asset) obligation, net of tax (provision)/benefit | -1 | 0 | -1 | 0 |
Derivative financial instruments, Gains (losses) deferred, net of tax (provision)/benefit | -15 | 5 | -2 | 21 |
Derivative financial instruments, (Gains) losses reclassified to earnings, net of tax (provision)/benefit | -5 | -5 | -24 | -6 |
Available-for-sale securities, Gains (losses) deferred, net of tax (provision)/benefit | -6 | -8 | -8 | -13 |
Available-for-sale securities, (Gains) losses reclassified to earnings, net of tax (provision)/benefit | $0 | $0 | $0 | $0 |
Consolidated_Statement_of_Fina
Consolidated Statement of Financial Position (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and short-term investments | $6,357 | $5,490 |
Receivables - trade and other | 8,649 | 10,092 |
Receivables - finance | 9,161 | 8,860 |
Deferred and refundable income taxes | 1,541 | 1,547 |
Prepaid expenses and other current assets | 988 | 988 |
Inventories | 13,392 | 15,547 |
Total current assets | 40,088 | 42,524 |
Property, plant and equipment - net | 16,588 | 16,461 |
Long-term receivables - trade and other | 1,329 | 1,316 |
Long-term receivables - finance | 14,585 | 14,029 |
Investments in unconsolidated affiliated companies | 278 | 272 |
Noncurrent deferred and refundable income taxes | 1,985 | 2,011 |
Intangible assets | 3,718 | 4,016 |
Goodwill | 6,968 | 6,942 |
Other assets | 1,733 | 1,785 |
Total assets | 87,272 | 89,356 |
Short-term borrowings: | ' | ' |
Machinery and Power Systems | 290 | 636 |
Financial Products | 5,557 | 4,651 |
Accounts payable | 6,280 | 6,753 |
Accrued expenses | 3,373 | 3,667 |
Accrued wages, salaries and employee benefits | 1,391 | 1,911 |
Customer advances | 2,699 | 2,978 |
Other current liabilities | 1,854 | 2,055 |
Long-term debt due within one year: | ' | ' |
Machinery and Power Systems | 1,110 | 1,113 |
Financial Products | 6,565 | 5,991 |
Total current liabilities | 29,119 | 29,755 |
Long-term debt due after one year: | ' | ' |
Machinery and Power Systems | 7,951 | 8,666 |
Financial Products | 18,064 | 19,086 |
Liability for postemployment benefits | 10,785 | 11,085 |
Other liabilities | 3,176 | 3,182 |
Total liabilities | 69,095 | 71,774 |
Commitments and contingencies (Notes 10 and 13) | ' | ' |
Stockholders' equity | ' | ' |
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (9/30/13 and 12/31/12 - 814,894,624) at paid-in amount | 4,657 | 4,481 |
Treasury stock (9/30/13 - 178,538,633 shares; 12/31/12 - 159,846,131 shares) at cost | -11,914 | -10,074 |
Profit employed in the business | 31,614 | 29,558 |
Accumulated other comprehensive income (loss) | -6,247 | -6,433 |
Noncontrolling interests | 67 | 50 |
Total stockholders' equity | 18,177 | 17,582 |
Total liabilities and stockholders' equity | $87,272 | $89,356 |
Consolidated_Statement_of_Fina1
Consolidated Statement of Financial Position (Parenthetical) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, Authorized shares | 2,000,000,000 | 2,000,000,000 |
Common stock, Issued shares | 814,894,624 | 814,894,624 |
Treasury stock, shares | 178,538,633 | 159,846,131 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common stock | Treasury stock | Profit employed in the business | Accumulated other comprehensive income (loss) | Noncontrolling interests | |
In Millions, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $12,929 | $4,273 | ($10,281) | $25,219 | ($6,328) | $46 | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | |
Profit of consolidated and affiliated companies | 5,022 | 0 | 0 | 4,984 | 0 | 38 | |
Foreign currency translation, net of tax | 35 | 0 | 0 | 0 | 59 | -24 | |
Pension and other postretirement benefits, net of tax | 180 | 0 | 0 | 0 | 175 | 5 | |
Derivative financial instruments, net of tax | -25 | 0 | 0 | 0 | -25 | 0 | |
Available-for-sale securities, net of tax | 25 | 0 | 0 | 0 | 24 | 1 | |
Change in ownership from noncontrolling interests | 1 | 0 | 0 | 0 | 0 | 1 | |
Dividends declared | -639 | 0 | 0 | -639 | 0 | 0 | |
Distribution to noncontrolling interests | -5 | 0 | 0 | 0 | 0 | -5 | |
Common shares issued from treasury stock for stock-based compensation: 4,792,341 and 6,400,328 for the nine months ended September 30, 2013 and 2012, respectively | 41 | -122 | 163 | 0 | 0 | 0 | |
Stock-based compensation expense | 208 | 208 | 0 | 0 | 0 | 0 | |
Net excess tax benefits from stock-based compensation | 164 | 164 | 0 | 0 | 0 | 0 | |
Cat Japan share redemption | [1] | 0 | -74 | 0 | -23 | 107 | -10 |
Balance at Sep. 30, 2012 | 17,936 | 4,449 | -10,118 | 29,541 | -5,988 | 52 | |
Balance at Dec. 31, 2012 | 17,582 | 4,481 | -10,074 | 29,558 | -6,433 | 50 | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | |
Profit of consolidated and affiliated companies | 2,797 | 0 | 0 | 2,786 | 0 | 11 | |
Foreign currency translation, net of tax | -255 | 0 | 0 | 0 | -257 | 2 | |
Pension and other postretirement benefits, net of tax | 386 | 0 | 0 | 0 | 386 | 0 | |
Derivative financial instruments, net of tax | 44 | 0 | 0 | 0 | 44 | 0 | |
Available-for-sale securities, net of tax | 13 | 0 | 0 | 0 | 13 | 0 | |
Change in ownership from noncontrolling interests | 8 | -6 | 0 | 0 | 0 | 14 | |
Dividends declared | -730 | 0 | 0 | -730 | 0 | 0 | |
Distribution to noncontrolling interests | -10 | 0 | 0 | 0 | 0 | -10 | |
Common shares issued from treasury stock for stock-based compensation: 4,792,341 and 6,400,328 for the nine months ended September 30, 2013 and 2012, respectively | 77 | -83 | 160 | 0 | 0 | 0 | |
Stock-based compensation expense | 196 | 196 | 0 | 0 | 0 | 0 | |
Net excess tax benefits from stock-based compensation | 69 | 69 | 0 | 0 | 0 | 0 | |
Common shares repurchased: 23,484,843 for the nine months ended September 30, 2013 | [2] | -2,000 | 0 | -2,000 | 0 | 0 | 0 |
Balance at Sep. 30, 2013 | $18,177 | $4,657 | ($11,914) | $31,614 | ($6,247) | $67 | |
[1] | 1B See Notes 12 and 17 regarding the Cat Japan share redemption. | ||||||
[2] | 2B See Note 11 regarding shares repurchased. |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (Parentheticals) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Common shares issued from treasury stock for stock-based compensation (in shares) | 4,792,341 | 6,400,328 |
Common shares repurchased (in shares) | 23,484,843 | 0 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flow | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
USD ($) | USD ($) | |
Cash flow from operating activities: | ' | ' |
Profit of consolidated and affiliated companies | $2,797 | $5,022 |
Adjustments for non-cash items: | ' | ' |
Depreciation and amortization | 2,263 | 2,070 |
Other | 377 | -267 |
Changes in assets and liabilities, net of acquisitions and divestitures: | ' | ' |
Receivables - trade and other | 1,165 | 136 |
Inventories | 1,911 | -3,118 |
Accounts payable | 41 | -334 |
Accrued expenses | -227 | 32 |
Accrued wages, salaries and employee benefits | -500 | -643 |
Customer advances | -287 | 306 |
Other assets - net | -74 | -20 |
Other liabilities - net | 145 | 34 |
Net cash provided by (used for) operating activities | 7,611 | 3,218 |
Cash flow from investing activities: | ' | ' |
Capital expenditures - excluding equipment leased to others | -1,862 | -2,270 |
Expenditures for equipment leased to others | -1,301 | -1,256 |
Proceeds from disposals of leased assets and property, plant and equipment | 593 | 840 |
Additions to finance receivables | -8,339 | -8,835 |
Collections of finance receivables | 6,790 | 6,567 |
Proceeds from sale of finance receivables | 110 | 109 |
Investments and acquisitions (net of cash acquired) | -193 | -542 |
Proceeds from sale of businesses and investments (net of cash sold) | 168 | 1,009 |
Proceeds from sale of available-for-sale securities | 297 | 243 |
Investments in available-for-sale securities | -312 | -299 |
Other - net | -29 | 82 |
Net cash provided by (used for) investing activities | -4,078 | -4,352 |
Cash flow from financing activities: | ' | ' |
Dividends paid | -730 | -937 |
Distribution to noncontrolling interests | -10 | -5 |
Common stock issued, including treasury shares reissued | 77 | 41 |
Treasury shares purchased | -2,000 | 0 |
Excess tax benefit from stock-based compensation | 70 | 165 |
Acquisitions of redeemable noncontrolling interests | 0 | -444 |
Proceeds from debt issued (original maturities greater than three months): | ' | ' |
Machinery and Power Systems | 145 | 2,015 |
Financial Products | 6,854 | 9,617 |
Payments on debt (original maturities greater than three months): | ' | ' |
Machinery and Power Systems | -1,134 | -485 |
Financial Products | -7,636 | -6,242 |
Short-term borrowings - net (original maturities three months or less) | 1,736 | 166 |
Net cash provided by (used for) financing activities | -2,628 | 3,891 |
Effect of exchange rate changes on cash | -38 | -125 |
Increase (decrease) in cash and short-term investments | 867 | 2,632 |
Cash and short-term investments at beginning of period | 5,490 | 3,057 |
Cash and short-term investments at end of period | 6,357 | 5,689 |
Non-cash activities: | ' | ' |
Debt exchange original debentures amount | ' | 1,325 |
Debt exchange new debentures amount | ' | 1,722 |
Debt exchange new debentures interest rate (as a percent) | ' | 3.80% |
Debt exchange new debentures due date (year) | ' | '2042 |
Debt exchange cash paid | ' | $179 |
Basis_of_Presentation_and_Natu
Basis of Presentation and Nature of Operations | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation and Nature of Operations | ' |
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 nine month periods ended September 30, 2013 and 2012, (b) the consolidated comprehensive income for the three and nine month periods ended September 30, 2013 and 2012, (c) the consolidated financial position at September 30, 2013 and December 31, 2012, (d) the consolidated changes in stockholders’ equity for the nine month periods ended September 30, 2013 and 2012, and (e) the consolidated cash flow for the nine month periods ended September 30, 2013 and 2012. 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. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. | |
We have revised previously reported cash flows from operating and financing activities for the nine month period ended September 30, 2012 to correct for the impact of interest payments on certain Cat Financial bank borrowings. Cash provided by operating activities decreased from the amounts previously reported by $44 million for the nine month period ended September 30, 2012, and cash provided by financing activities increased by the same amount. Revisions will be made to previously reported amounts in future filings. Cash provided by operating activities will decrease by $57 million and $53 million for the years ended December 31, 2012 and 2011, respectively. Cash provided by financing activities will increase by the same amounts for the respective periods. Management has concluded that the impact was not material to any quarterly or annual period. | |
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, 2012 (2012 Form 10-K). | |
The December 31, 2012 financial position data included herein is derived from the audited consolidated financial statements included in the 2012 Form 10-K but does not include all disclosures required by U.S. GAAP. | |
B. Nature of Operations | |
Information in our financial statements and related commentary are presented in the following categories: | |
Machinery and Power Systems – Represents the aggregate total of Construction Industries, Resource Industries, Power Systems, and All Other segments and related corporate items and eliminations. | |
Financial Products – Primarily includes the company’s Financial Products Segment. This category includes Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Insurance Holdings Inc. (Cat Insurance) and their respective subsidiaries. |
New_Accounting_Guidance
New Accounting Guidance | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
New Accounting Guidance | ' |
New Accounting Guidance | |
Disclosures about offsetting assets and liabilities – In December 2011, the Financial Accounting Standards Board (FASB) issued accounting guidance on disclosures about offsetting assets and liabilities. The guidance requires entities to disclose both gross and net information about instruments and transactions that are offset in the statement of financial position, as well as instruments and transactions that are subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued guidance clarifying the scope of the disclosures to apply only to derivatives, including bifurcated embedded derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions. This guidance was effective January 1, 2013, with retrospective application required. The guidance did not have a material impact on our financial statements. See Note 4 for additional information. | |
Indefinite-lived intangible assets impairment testing – In July 2012, the FASB issued accounting guidance on the testing of indefinite-lived intangible assets for impairment. The guidance allows entities to first perform a qualitative assessment to determine the likelihood of an impairment for an indefinite-lived intangible asset and whether it is necessary to perform the quantitative impairment assessment currently required. This guidance was effective January 1, 2013 and did not have a material impact on our financial statements. | |
Reporting of amounts reclassified out of accumulated other comprehensive income – In February 2013, the FASB issued accounting guidance on the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income if the amount is reclassified to net income in its entirety in the same reporting period. For other amounts not required to be reclassified in their entirety to net income in the same reporting period, a cross reference to other disclosures that provide additional detail about the reclassification amounts is required. This guidance was effective January 1, 2013 and did not have a material impact on our financial statements. See Note 12 for additional information. | |
Joint and several liability arrangements – In February 2013, the FASB issued accounting guidance on the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements. The guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The entity is also required to disclose the nature and amount of the obligation as well as any other information about those obligations. This guidance is effective January 1, 2014, with retrospective application required. We do not expect the adoption to have a material impact on our financial statements. | |
Parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity – In March 2013, the FASB issued accounting guidance on the parent's accounting for the cumulative translation adjustment (CTA) upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The new standard clarifies existing guidance regarding when the CTA should be released into earnings upon various deconsolidation and consolidation transactions. This guidance is effective January 1, 2014. We do not expect the adoption to have a material impact on our financial statements. | |
Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists – In July 2013, the FASB issued accounting guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward in the financial statements if available under the applicable tax jurisdiction. The guidance is effective January 1, 2014. We do not expect the adoption to have a material impact on our financial statements. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
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 options, restricted stock units (RSUs) and stock-settled stock appreciation rights (SARs). We recognized pretax stock-based compensation cost in the amount of $64 million and $196 million for the three and nine months ended September 30, 2013, respectively; and $69 million and $204 million for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||
The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine month periods ended September 30, 2013 and 2012, respectively: | ||||||||||||||
2013 | 2012 | |||||||||||||
Shares Granted | Fair Value | Shares Granted | Fair Value | |||||||||||
Per Award | Per Award | |||||||||||||
Stock options | 4,276,060 | $ | 28.34 | 3,224,203 | $ | 39.2 | ||||||||
RSUs | 1,614,870 | $ | 84.05 | 1,429,939 | $ | 104.61 | ||||||||
The stock price on the date of grant was $89.75 and $110.09 for 2013 and 2012, respectively. | ||||||||||||||
The following table provides the assumptions used in determining the fair value of the stock-based awards for the nine month periods ended September 30, 2013 and 2012, respectively: | ||||||||||||||
Grant Year | ||||||||||||||
2013 | 2012 | |||||||||||||
Weighted-average dividend yield | 2.13% | 2.16% | ||||||||||||
Weighted-average volatility | 30.60% | 35.00% | ||||||||||||
Range of volatilities | 23.4-40.6% | 33.3-40.4% | ||||||||||||
Range of risk-free interest rates | 0.16-1.88% | 0.17-2.00% | ||||||||||||
Weighted-average expected lives | 8 years | 7 years | ||||||||||||
As of September 30, 2013, the total remaining unrecognized compensation cost related to nonvested stock-based compensation awards was $232 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 1.9 years. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Risk Management | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Derivative Financial Instruments and Risk Management | ' | ||||||||||||||||||||||||
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. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option, and cross currency contracts, interest rate swaps, and commodity forward and option 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 into, 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 recognized 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), to the extent effective, 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 in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. | |||||||||||||||||||||||||
Foreign Currency Exchange Rate Risk | |||||||||||||||||||||||||
Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. | |||||||||||||||||||||||||
Our Machinery and Power Systems operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to five years. | |||||||||||||||||||||||||
We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, euro, Indian rupee, Japanese yen, Mexican peso, Singapore dollar or Swiss franc forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. Designation is performed on a specific exposure basis to support hedge accounting. The remainder of Machinery and Power Systems foreign currency contracts are undesignated, including any hedges designed to protect our competitive exposure. | |||||||||||||||||||||||||
As of September 30, 2013, $15 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings (Other income (expense) in the Consolidated Statement of Results of Operations) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. | |||||||||||||||||||||||||
In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Substantially all such foreign currency forward, option and cross currency contracts are undesignated. | |||||||||||||||||||||||||
Interest Rate Risk | |||||||||||||||||||||||||
Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate derivatives to manage our exposure to interest rate changes and, in some cases, lower the cost of borrowed funds. | |||||||||||||||||||||||||
Our Machinery and Power Systems operations generally use fixed-rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate swaps and forward rate agreements to meet that objective with the intent to designate as fair value hedges at inception of the contract all fixed-to-floating interest rate swaps. Designation as a hedge of the fair value of our fixed-rate debt is performed to support hedge accounting. | |||||||||||||||||||||||||
Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate) of Cat Financial’s debt portfolio with the interest rate profile of their receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. | |||||||||||||||||||||||||
Our policy allows us to use fixed-to-floating, floating-to-fixed, and floating-to-floating interest rate swaps to meet the match-funding objective. We designate fixed-to-floating interest rate swaps as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate swaps as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. | |||||||||||||||||||||||||
As of September 30, 2013, $3 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. | |||||||||||||||||||||||||
We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery and Power Systems and Financial Products. The gains or losses associated with these swaps at the time of liquidation are amortized into earnings over the original term of the previously designated hedged item. | |||||||||||||||||||||||||
Commodity Price Risk | |||||||||||||||||||||||||
Commodity price movements create a degree of risk by affecting the price we must pay for certain raw material. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. | |||||||||||||||||||||||||
Our Machinery and Power Systems operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. | |||||||||||||||||||||||||
Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated. | |||||||||||||||||||||||||
The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position are as follows: | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Consolidated Statement of Financial | Asset (Liability) Fair Value | ||||||||||||||||||||||||
Position Location | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Designated derivatives | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Receivables – trade and other | $ | 49 | $ | 28 | ||||||||||||||||||||
Machinery and Power Systems | Long-term receivables – trade and other | 1 | — | ||||||||||||||||||||||
Machinery and Power Systems | Accrued expenses | (24 | ) | (66 | ) | ||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Receivables – trade and other | 12 | 17 | ||||||||||||||||||||||
Financial Products | Long-term receivables – trade and other | 130 | 209 | ||||||||||||||||||||||
Financial Products | Accrued expenses | (6 | ) | (8 | ) | ||||||||||||||||||||
$ | 162 | $ | 180 | ||||||||||||||||||||||
Undesignated derivatives | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Receivables – trade and other | $ | 42 | $ | 31 | ||||||||||||||||||||
Machinery and Power Systems | Accrued expenses | (31 | ) | (63 | ) | ||||||||||||||||||||
Financial Products | Receivables – trade and other | 13 | 10 | ||||||||||||||||||||||
Financial Products | Long-term receivables – trade and other | 8 | — | ||||||||||||||||||||||
Financial Products | Accrued expenses | (7 | ) | (6 | ) | ||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Receivables – trade and other | — | 2 | ||||||||||||||||||||||
Financial Products | Accrued expenses | — | (1 | ) | |||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Receivables – trade and other | — | 1 | ||||||||||||||||||||||
Machinery and Power Systems | Accrued expenses | (1 | ) | — | |||||||||||||||||||||
$ | 24 | $ | (26 | ) | |||||||||||||||||||||
The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: | |||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||
on Derivatives | on Borrowings | on Derivatives | on Borrowings | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (9 | ) | $ | 12 | $ | 7 | $ | (3 | ) | ||||||||||||||
$ | (9 | ) | $ | 12 | $ | 7 | $ | (3 | ) | ||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||
on Derivatives | on Borrowings | on Derivatives | on Borrowings | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (87 | ) | $ | 92 | $ | 4 | $ | 7 | |||||||||||||||
$ | (87 | ) | $ | 92 | $ | 4 | $ | 7 | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | 44 | Other income (expense) | $ | (12 | ) | $ | — | |||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Machinery and Power Systems | — | Other income (expense) | (1 | ) | — | ||||||||||||||||||||
Financial Products | (3 | ) | Interest expense of Financial Products | (1 | ) | — | |||||||||||||||||||
$ | 41 | $ | (14 | ) | $ | — | |||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | (6 | ) | Other income (expense) | $ | (14 | ) | $ | — | ||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Machinery and Power Systems | — | Other income (expense) | 1 | — | |||||||||||||||||||||
Financial Products | (6 | ) | Interest expense of Financial Products | (1 | ) | — | |||||||||||||||||||
$ | (12 | ) | $ | (14 | ) | $ | — | ||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | 4 | Other income (expense) | $ | (60 | ) | 2 | $ | — | ||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Machinery and Power Systems | — | Other income (expense) | (2 | ) | — | ||||||||||||||||||||
Financial Products | — | Interest expense of Financial Products | (4 | ) | — | ||||||||||||||||||||
$ | 4 | $ | (66 | ) | $ | — | |||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | (48 | ) | Other income (expense) | $ | (13 | ) | $ | — | ||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | (8 | ) | Interest expense of Financial Products | (3 | ) | (1 | ) | 1 | |||||||||||||||||
$ | (56 | ) | $ | (16 | ) | $ | (1 | ) | |||||||||||||||||
1 | The ineffective portion recognized in earnings is included in Other income (expense). | ||||||||||||||||||||||||
2 | Includes $3 million loss reclassified from AOCI to Other income (expense) in 2013 as certain derivatives were dedesignated as the related transactions are no longer probable to occur. | ||||||||||||||||||||||||
The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Classification of Gains (Losses) | Three Months Ended | Three Months Ended | |||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | $ | 15 | $ | (9 | ) | |||||||||||||||||||
Financial Products | Other income (expense) | 3 | 5 | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | (1 | ) | — | |||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | 2 | 3 | ||||||||||||||||||||||
$ | 19 | $ | (1 | ) | |||||||||||||||||||||
Classification of Gains (Losses) | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | $ | 7 | $ | 21 | ||||||||||||||||||||
Financial Products | Other income (expense) | 4 | 7 | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | (1 | ) | — | |||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | (2 | ) | 3 | |||||||||||||||||||||
$ | 8 | $ | 31 | ||||||||||||||||||||||
We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within Machinery & Power Systems and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. | |||||||||||||||||||||||||
Collateral is generally not required of the counterparties or of our company under the master netting agreements. As of September 30, 2013 and December 31, 2012, no cash collateral was received or pledged under the master netting agreements. | |||||||||||||||||||||||||
The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event is as follows: | |||||||||||||||||||||||||
September 30, 2013 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount of Assets | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | 92 | $ | — | $ | 92 | $ | (52 | ) | $ | — | $ | 40 | ||||||||||||
Financial Products | 163 | — | 163 | (9 | ) | — | 154 | ||||||||||||||||||
Total | $ | 255 | $ | — | $ | 255 | $ | (61 | ) | $ | — | $ | 194 | ||||||||||||
September 30, 2013 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount of Liabilities | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | (56 | ) | $ | — | $ | (56 | ) | $ | 52 | $ | — | $ | (4 | ) | ||||||||||
Financial Products | (13 | ) | — | (13 | ) | 9 | — | (4 | ) | ||||||||||||||||
Total | $ | (69 | ) | $ | — | $ | (69 | ) | $ | 61 | $ | — | $ | (8 | ) | ||||||||||
December 31, 2012 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount of Assets | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | 60 | $ | — | $ | 60 | $ | (59 | ) | $ | — | $ | 1 | ||||||||||||
Financial Products | 238 | — | 238 | (12 | ) | — | 226 | ||||||||||||||||||
Total | $ | 298 | $ | — | $ | 298 | $ | (71 | ) | $ | — | $ | 227 | ||||||||||||
December 31, 2012 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount of Liabilities | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | (129 | ) | $ | — | $ | (129 | ) | $ | 59 | $ | — | $ | (70 | ) | ||||||||||
Financial Products | (15 | ) | — | (15 | ) | 12 | — | (3 | ) | ||||||||||||||||
Total | $ | (144 | ) | $ | — | $ | (144 | ) | $ | 71 | $ | — | $ | (73 | ) | ||||||||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following: | ||||||||
(Millions of dollars) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Raw materials | $ | 3,138 | $ | 3,573 | ||||
Work-in-process | 2,749 | 2,920 | ||||||
Finished goods | 7,221 | 8,767 | ||||||
Supplies | 284 | 287 | ||||||
Total inventories | $ | 13,392 | $ | 15,547 | ||||
Investments_in_Unconsolidated_
Investments in Unconsolidated Affiliated Companies | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Investments in Unconsolidated Affiliated Companies | ' | |||||||||||||||
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 | Nine Months Ended | ||||||||||||||
(Millions of dollars) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sales | $ | 349 | $ | 253 | $ | 916 | $ | 625 | ||||||||
Cost of sales | 284 | 206 | 722 | 492 | ||||||||||||
Gross profit | $ | 65 | $ | 47 | $ | 194 | $ | 133 | ||||||||
Profit (loss) | $ | (6 | ) | $ | 17 | $ | (31 | ) | $ | 39 | ||||||
Financial Position of unconsolidated affiliated companies: | September 30, | December 31, | ||||||||||||||
(Millions of dollars) | 2013 | 2012 | ||||||||||||||
Assets: | ||||||||||||||||
Current assets | $ | 707 | $ | 715 | ||||||||||||
Property, plant and equipment – net | 714 | 529 | ||||||||||||||
Other assets | 498 | 616 | ||||||||||||||
1,919 | 1,860 | |||||||||||||||
Liabilities: | ||||||||||||||||
Current liabilities | 450 | 443 | ||||||||||||||
Long-term debt due after one year | 887 | 708 | ||||||||||||||
Other liabilities | 167 | 170 | ||||||||||||||
1,504 | 1,321 | |||||||||||||||
Equity | $ | 415 | $ | 539 | ||||||||||||
Caterpillar’s investments in unconsolidated affiliated companies: | September 30, | December 31, | ||||||||||||||
(Millions of dollars) | 2013 | 2012 | ||||||||||||||
Investments in equity method companies | $ | 268 | $ | 256 | ||||||||||||
Plus: Investments in cost method companies | 10 | 16 | ||||||||||||||
Total investments in unconsolidated affiliated companies | $ | 278 | $ | 272 | ||||||||||||
The change in the results of operations amounts for the three and nine months ended September 30, 2013 as compared to September 30, 2012 primarily relates to the third party logistics business, in which Caterpillar sold a majority interest on July 31, 2012. Under the terms of the agreement, Caterpillar retained a 35 percent equity interest. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||||||
Intangible Assets and Goodwill | |||||||||||||||||||||
A. Intangible assets | |||||||||||||||||||||
Intangible assets are comprised of the following: | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
(Millions of dollars) | Weighted | Gross | Accumulated | Net | |||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||
Customer relationships | 15 | $ | 2,685 | $ | (497 | ) | $ | 2,188 | |||||||||||||
Intellectual property | 11 | 1,816 | (455 | ) | 1,361 | ||||||||||||||||
Other | 10 | 282 | (131 | ) | 151 | ||||||||||||||||
Total finite-lived intangible assets | 13 | 4,783 | (1,083 | ) | 3,700 | ||||||||||||||||
Indefinite-lived intangible assets - In-process research & development | 18 | — | 18 | ||||||||||||||||||
Total intangible assets | $ | 4,801 | $ | (1,083 | ) | $ | 3,718 | ||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||
Customer relationships | 15 | $ | 2,756 | $ | (377 | ) | $ | 2,379 | |||||||||||||
Intellectual property | 12 | 1,767 | (342 | ) | 1,425 | ||||||||||||||||
Other | 10 | 299 | (105 | ) | 194 | ||||||||||||||||
Total finite-lived intangible assets | 13 | 4,822 | (824 | ) | 3,998 | ||||||||||||||||
Indefinite-lived intangible assets - In-process research & development | 18 | — | 18 | ||||||||||||||||||
Total intangible assets | $ | 4,840 | $ | (824 | ) | $ | 4,016 | ||||||||||||||
During the third quarter of 2013, we acquired finite-lived intangible assets of $66 million due to the purchase of Johan Walter Berg AB. See Note 19 for details on this business combination. | |||||||||||||||||||||
Gross customer relationship intangibles of $123 million and related accumulated amortization of $17 million were reclassified from Intangible assets to assets held for sale and/or divested during the nine months ended September 30, 2013, and are not included in the September 30, 2013 balances in the table above. These transactions were related to the divestiture of portions of the Bucyrus distribution business. See Note 20 for additional information on divestitures and assets held for sale. | |||||||||||||||||||||
Amortization expense for the three and nine months ended September 30, 2013 was $91 million and $276 million, respectively. Amortization expense for the three and nine months ended September 30, 2012 was $101 million and $294 million, respectively. Amortization expense related to intangible assets is expected to be: | |||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | ||||||||||||||||
$369 | $374 | $372 | $360 | $358 | $2,161 | ||||||||||||||||
B. Goodwill | |||||||||||||||||||||
During the third quarter of 2013, we recorded goodwill of $109 million related to the acquisition of Johan Walter Berg AB. See Note 19 for details on this business combination. | |||||||||||||||||||||
Goodwill of $47 million was reclassified to assets held for sale and/or divested during the nine months ended September 30, 2013, and is not included in the September 30, 2013 balance in the table below. These transactions were related to the divestiture of portions of the Bucyrus distribution business and the sale of certain Power Systems assets that were accounted for as a business. See Note 20 for additional information on divestitures and assets held for sale. | |||||||||||||||||||||
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 qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit's goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the 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 higher 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 as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit's goodwill, the difference is recognized as an impairment loss. No goodwill for reporting units was impaired during the three and nine months ended September 30, 2013 or 2012. | |||||||||||||||||||||
The changes in the carrying amount of the goodwill by reportable segment for the nine months ended September 30, 2013 were as follows: | |||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||
December 31, | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Other Adjustments 3 | September 30, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
Construction Industries | |||||||||||||||||||||
Goodwill | $ | 382 | $ | — | $ | — | $ | (46 | ) | $ | 336 | ||||||||||
Resource Industries | |||||||||||||||||||||
Goodwill | 4,559 | — | (37 | ) | 1 | 4,523 | |||||||||||||||
Impairments | (602 | ) | — | — | — | (602 | ) | ||||||||||||||
Net goodwill | 3,957 | — | (37 | ) | 1 | 3,921 | |||||||||||||||
Power Systems | |||||||||||||||||||||
Goodwill | 2,486 | 109 | (10 | ) | 9 | 2,594 | |||||||||||||||
All Other 4 | |||||||||||||||||||||
Goodwill | 117 | — | — | — | 117 | ||||||||||||||||
Consolidated total | |||||||||||||||||||||
Goodwill | 7,544 | 109 | (47 | ) | (36 | ) | 7,570 | ||||||||||||||
Impairments | (602 | ) | — | — | — | (602 | ) | ||||||||||||||
Net goodwill | $ | 6,942 | $ | 109 | $ | (47 | ) | $ | (36 | ) | $ | 6,968 | |||||||||
1 See Note 19 for additional details. | |||||||||||||||||||||
2 See Note 20 for additional details. | |||||||||||||||||||||
3 Other adjustments are comprised primarily of foreign currency translation. | |||||||||||||||||||||
4 Includes All Other operating segment (See Note 15). | |||||||||||||||||||||
AvailableForSale_Securities
Available-For-Sale Securities | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Available-For-Sale Securities | ' | |||||||||||||||||||||||
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 investments 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. | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Millions of dollars) | Cost | Unrealized Pretax Net Gains | Fair | Cost | Unrealized Pretax Net Gains | Fair | ||||||||||||||||||
Basis | (Losses) | Value | Basis | (Losses) | Value | |||||||||||||||||||
Government debt | ||||||||||||||||||||||||
U.S. treasury bonds | $ | 11 | $ | — | $ | 11 | $ | 10 | $ | — | $ | 10 | ||||||||||||
Other U.S. and non-U.S. government bonds | 125 | 1 | 126 | 144 | 2 | 146 | ||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||
Corporate bonds | 648 | 24 | 672 | 626 | 38 | 664 | ||||||||||||||||||
Asset-backed securities | 75 | — | 75 | 96 | — | 96 | ||||||||||||||||||
Mortgage-backed debt securities | ||||||||||||||||||||||||
U.S. governmental agency | 336 | 1 | 337 | 291 | 8 | 299 | ||||||||||||||||||
Residential | 21 | — | 21 | 26 | (1 | ) | 25 | |||||||||||||||||
Commercial | 87 | 6 | 93 | 117 | 10 | 127 | ||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Large capitalization value | 158 | 73 | 231 | 147 | 38 | 185 | ||||||||||||||||||
Smaller company growth | 22 | 23 | 45 | 22 | 12 | 34 | ||||||||||||||||||
Total | $ | 1,483 | $ | 128 | $ | 1,611 | $ | 1,479 | $ | 107 | $ | 1,586 | ||||||||||||
During the three months ended September 30, 2013 and 2012, there were no charges for other-than-temporary declines in the market values of securities. During the nine months ended September 30, 2013 and 2012, charges for other-than-temporary declines in the market values of securities were $1 million. These charges were accounted for as realized losses and were included in Other income (expense) in the Consolidated Statement of Results of Operations. The cost basis for the impacted securities was adjusted to reflect these charges. | ||||||||||||||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||
(Millions of dollars) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||
Corporate bonds | $ | 174 | $ | 2 | $ | — | $ | — | $ | 174 | $ | 2 | ||||||||||||
Asset-backed securities | 4 | — | 20 | 2 | 24 | 2 | ||||||||||||||||||
Mortgage-backed debt securities | ||||||||||||||||||||||||
U.S. governmental agency | 145 | 4 | 56 | 1 | 201 | 5 | ||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Large capitalization value | 15 | 1 | 2 | — | 17 | 1 | ||||||||||||||||||
Total | $ | 338 | $ | 7 | $ | 78 | $ | 3 | $ | 416 | $ | 10 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||
(Millions of dollars) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | — | $ | 20 | $ | 3 | $ | 20 | $ | 3 | ||||||||||||
Mortgage-backed debt securities | ||||||||||||||||||||||||
U.S. governmental agency | 84 | 1 | 15 | — | 99 | 1 | ||||||||||||||||||
Residential | — | — | 14 | 1 | 14 | 1 | ||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Large capitalization value | 25 | 2 | 10 | 1 | 35 | 3 | ||||||||||||||||||
Total | $ | 109 | $ | 3 | $ | 59 | $ | 5 | $ | 168 | $ | 8 | ||||||||||||
1 Indicates length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||
Corporate Bonds. The unrealized losses on our investments in corporate bonds and asset-backed securities relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. We do not consider these investments to be other-than-temporarily impaired as of September 30, 2013. | ||||||||||||||||||||||||
Mortgage-Backed Debt Securities. The unrealized losses on our investments in mortgage-backed securities and mortgage-related asset-backed securities relate mainly to the continuation of elevated housing delinquencies, default rates and higher market yields since the time of purchase. We do not intend to sell the investments and it is not likely that we will be required to sell these investments before recovery of their amortized cost basis. We do not consider these investments to be other-than-temporarily impaired as of September 30, 2013. | ||||||||||||||||||||||||
Equity Securities. Cat Insurance maintains a well-diversified equity portfolio consisting of two specific mandates: large capitalization value stocks and smaller company growth stocks. U.S. equity valuations were generally higher during the third quarter of 2013 on generally favorable employment and housing data. The unrealized losses on investments in equity securities relate to uneven sector participation in the market recovery. We do not consider these investments to be other-than-temporarily impaired as of September 30, 2013. | ||||||||||||||||||||||||
The cost basis and fair value of the available-for-sale debt securities at September 30, 2013, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
(Millions of dollars) | Cost Basis | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 211 | $ | 214 | ||||||||||||||||||||
Due after one year through five years | 589 | 611 | ||||||||||||||||||||||
Due after five years through ten years | 28 | 29 | ||||||||||||||||||||||
Due after ten years | 31 | 30 | ||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | 336 | 337 | ||||||||||||||||||||||
Residential mortgage-backed securities | 21 | 21 | ||||||||||||||||||||||
Commercial mortgage-backed securities | 87 | 93 | ||||||||||||||||||||||
Total debt securities – available-for-sale | $ | 1,303 | $ | 1,335 | ||||||||||||||||||||
Sales of Securities: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions of dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Proceeds from the sale of available-for-sale securities | $ | 90 | $ | 66 | $ | 297 | $ | 243 | ||||||||||||||||
Gross gains from the sale of available-for-sale securities | $ | 2 | $ | 1 | $ | 4 | $ | 4 | ||||||||||||||||
Gross losses from the sale of available-for-sale securities | $ | 1 | $ | — | $ | 2 | $ | — | ||||||||||||||||
Postretirement_Benefits
Postretirement Benefits | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Postretirement Benefits | ' | |||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||
A. Pension and postretirement benefit costs | ||||||||||||||||||||||||
In February 2012, we announced the closure of the Electro-Motive Diesel facility located in London, Ontario. As a result of the closure, we recognized a $37 million other postretirement benefits curtailment gain. This excludes a $21 million loss of a third-party receivable for other postretirement benefits that was eliminated due to the closure. In addition, a $10 million special termination benefit expense was recognized related to statutory pension benefits required to be paid to certain affected employees. As a result, a net gain of $6 million related to the facility closure was recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations for the nine months ended September 30, 2012. | ||||||||||||||||||||||||
In August 2012, we announced changes to our U.S. hourly pension plan, which impacted certain hourly employees. For the impacted employees, pension benefit accruals were frozen on January 1, 2013 or will freeze on January 1, 2016, at which time employees will become eligible for various provisions of company sponsored 401(k) plans including a matching contribution and an annual employer contribution. The plan changes resulted in a curtailment and required a remeasurement as of August 31, 2012. The curtailment and the remeasurement resulted in a net increase in our Liability for postemployment benefits of $243 million and a net loss of $153 million, net of tax, recognized in Accumulated other comprehensive income (loss). The increase in the liability was primarily due to a decline in the discount rate. Also, the curtailment resulted in expense of $7 million which was recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations for the three and nine months ended September 30, 2012. | ||||||||||||||||||||||||
U.S. Pension | Non-U.S. Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | Postretirement | ||||||||||||||||||||||
(Millions of dollars) | Benefits | |||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
For the three months ended: | ||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 49 | $ | 46 | $ | 31 | $ | 26 | $ | 24 | $ | 23 | ||||||||||||
Interest cost | 147 | 152 | 43 | 44 | 48 | 55 | ||||||||||||||||||
Expected return on plan assets | (208 | ) | (204 | ) | (59 | ) | (53 | ) | (14 | ) | (15 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | 1 | 1 | ||||||||||||||||||
Prior service cost (credit) 1 | 4 | 5 | — | 1 | (18 | ) | (18 | ) | ||||||||||||||||
Net actuarial loss (gain) 1 | 136 | 126 | 33 | 24 | 27 | 25 | ||||||||||||||||||
Net periodic benefit cost | 128 | 125 | 48 | 42 | 68 | 71 | ||||||||||||||||||
Adjustment for subsidiary pension plan 2 | 31 | — | — | — | — | — | ||||||||||||||||||
Curtailments, settlements and special termination benefits 3 | — | 7 | — | 6 | — | — | ||||||||||||||||||
Total cost included in operating profit | $ | 159 | $ | 132 | $ | 48 | $ | 48 | $ | 68 | $ | 71 | ||||||||||||
For the nine months ended: | ||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 147 | $ | 138 | $ | 93 | $ | 82 | $ | 79 | $ | 69 | ||||||||||||
Interest cost | 436 | 460 | 128 | 135 | 146 | 166 | ||||||||||||||||||
Expected return on plan assets | (624 | ) | (610 | ) | (176 | ) | (160 | ) | (42 | ) | (47 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | 2 | 2 | ||||||||||||||||||
Prior service cost (credit) 1 | 13 | 15 | 1 | 1 | (55 | ) | (51 | ) | ||||||||||||||||
Net actuarial loss (gain) 1 | 409 | 374 | 99 | 72 | 81 | 75 | ||||||||||||||||||
Net periodic benefit cost | 381 | 377 | 145 | 130 | 211 | 214 | ||||||||||||||||||
Adjustment for subsidiary pension plan 2 | 31 | — | — | — | — | — | ||||||||||||||||||
Curtailments, settlements and special termination benefits 3 | — | 7 | 3 | 28 | — | (40 | ) | |||||||||||||||||
Total cost included in operating profit | $ | 412 | $ | 384 | $ | 148 | $ | 158 | $ | 211 | $ | 174 | ||||||||||||
Weighted-average assumptions used to determine net cost: | ||||||||||||||||||||||||
Discount rate | 3.7 | % | 4.3 | % | 3.7 | % | 4.3 | % | 3.7 | % | 4.3 | % | ||||||||||||
Expected return on plan assets | 7.8 | % | 8 | % | 6.7 | % | 7.1 | % | 7.8 | % | 8 | % | ||||||||||||
Rate of compensation increase | 4.5 | % | 4.5 | % | 3.9 | % | 3.9 | % | 4.4 | % | 4.4 | % | ||||||||||||
1 | Prior service cost (credit) and net actuarial loss (gain) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period to the full retirement eligibility date of employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) and net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of those participants. | |||||||||||||||||||||||
2 | Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans. | |||||||||||||||||||||||
3 | Curtailments, settlements and special termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations. | |||||||||||||||||||||||
We made $118 million and $398 million of contributions to our pension plans during the three and nine months ended September 30, 2013, respectively. We currently anticipate full-year 2013 contributions of approximately $500 million, all of which are required. We made $195 million and $488 million of contributions to our pension plans during the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||
B. Defined contribution benefit costs | ||||||||||||||||||||||||
Total company costs related to our defined contribution plans were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions of dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
U.S. Plans | $ | 74 | $ | 62 | $ | 218 | $ | 196 | ||||||||||||||||
Non-U.S. Plans | 16 | 15 | 47 | 46 | ||||||||||||||||||||
$ | 90 | $ | 77 | $ | 265 | $ | 242 | |||||||||||||||||
Guarantees_and_Product_Warrant
Guarantees and Product Warranty | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Guarantees and Product Warranty | ' | |||||||
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 being financed. 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. | ||||||||
We have provided a guarantee to one of our customers in Brazil related to the performance of contractual obligations by a supplier consortium to which one of our Caterpillar subsidiaries is a member. The guarantees cover potential damages (some of them capped) incurred by the customer resulting from the supplier consortium’s non-performance. The guarantee will expire when the supplier consortium performs all its contractual obligations, which is expected to be completed in 2022. | ||||||||
We have provided guarantees to third-party lessors for certain properties leased by Cat Logistics Services, LLC, in which we sold a 65 percent equity interest in the third quarter of 2012. The guarantees are for the possibility that the third party logistics business would default on real estate lease payments. The guarantees were granted at lease inception, which was prior to the divestiture, and generally will expire at the end of the lease terms. | ||||||||
No loss has been experienced or is anticipated under any of these guarantees. At September 30, 2013 and December 31, 2012, 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 be recovered under recourse or collateralized provisions) we could be required to make under the guarantees are as follows: | ||||||||
(Millions of dollars) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Caterpillar dealer guarantees | $ | 201 | $ | 180 | ||||
Customer guarantees | 53 | 77 | ||||||
Customer guarantees – supplier consortium | 359 | — | ||||||
Third party logistics business guarantees | 156 | 176 | ||||||
Other guarantees | 35 | 53 | ||||||
Total guarantees | $ | 804 | $ | 486 | ||||
Cat Financial provides guarantees to repurchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. Cat Financial has a loan purchase agreement with the SPC that obligates Cat Financial to purchase certain loans that are not paid at maturity. Cat Financial receives a fee for providing this guarantee, which provides a source of liquidity for the SPC. Cat Financial is the primary beneficiary of the SPC as their guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC. As of September 30, 2013 and December 31, 2012, the SPC’s assets of $1,044 million and $927 million, respectively, are primarily comprised of loans to dealers and the SPC’s liabilities of $1,043 million and $927 million, respectively, are primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial's creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. | ||||||||
Our product warranty liability is determined by applying historical claim rate experience to the current field population and dealer inventory. Generally, historical claim rates are based on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). Specific rates are developed for each product shipment month and are updated monthly based on actual warranty claim experience. | ||||||||
(Millions of dollars) | 2013 | |||||||
Warranty liability, January 1 | $ | 1,477 | ||||||
Reduction in liability (payments) | (677 | ) | ||||||
Increase in liability (new warranties) | 570 | |||||||
Warranty liability, September 30 | $ | 1,370 | ||||||
(Millions of dollars) | 2012 | |||||||
Warranty liability, January 1 | $ | 1,308 | ||||||
Reduction in liability (payments) | (920 | ) | ||||||
Increase in liability (new warranties) | 1,089 | |||||||
Warranty liability, December 31 | $ | 1,477 | ||||||
Profit_Per_Share
Profit Per Share | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||
Profit Per Share | ' | |||||||||||||||||
Profit Per Share | ||||||||||||||||||
Computations of profit per share: | Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Dollars in millions except per share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Profit for the period (A) 1: | $ | 946 | $ | 1,699 | $ | 2,786 | $ | 4,984 | ||||||||||
Determination of shares (in millions): | ||||||||||||||||||
Weighted-average number of common shares outstanding (B) | 639.3 | 653.6 | 647.6 | 652 | ||||||||||||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price | 12.6 | 15.1 | 13.7 | 17.7 | ||||||||||||||
Average common shares outstanding for fully diluted computation (C) 2 | 651.9 | 668.7 | 661.3 | 669.7 | ||||||||||||||
Profit per share of common stock: | ||||||||||||||||||
Assuming no dilution (A/B) | $ | 1.48 | $ | 2.6 | $ | 4.3 | $ | 7.64 | ||||||||||
Assuming full dilution (A/C) 2 | $ | 1.45 | $ | 2.54 | $ | 4.21 | $ | 7.44 | ||||||||||
Shares outstanding as of September 30 (in millions) | 636.4 | 653.9 | ||||||||||||||||
1 | Profit attributable to common stockholders. | |||||||||||||||||
2 | Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. | |||||||||||||||||
SARs and stock options to purchase 10,285,409 and 10,191,424 common shares were outstanding for the three and nine months ended September 30, 2013, respectively, which were not included in the computation of diluted earnings per share because the effect would have been antidilutive. For the three and nine months ended September 30, 2012, there were outstanding SARs and stock options to purchase 6,073,271 common shares which were antidilutive. | ||||||||||||||||||
In February 2007, the Board of Directors authorized the repurchase of $7.5 billion of Caterpillar stock, and in December 2011, the authorization was extended through December 31, 2015. In April 2013, we entered into a definitive agreement with Citibank, N.A. to purchase shares of our common stock under an accelerated stock repurchase transaction (April ASR Agreement), which was completed in June 2013. In accordance with the terms of the April ASR Agreement, a total of 11.5 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $1.0 billion. | ||||||||||||||||||
In July 2013, we entered into a definitive agreement with Société Générale to purchase shares of our common stock under an accelerated stock repurchase transaction (July ASR Agreement), which was completed in September 2013. In accordance with the terms of the July ASR Agreement, a total of 11.9 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $1.0 billion. Through the end of the third quarter of 2013, $5.8 billion of the $7.5 billion authorization was spent. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accumulated other comprehensive income (loss) [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
Comprehensive income and its components are presented in the Consolidated Statement of Comprehensive Income. Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Stockholders’ Equity, consisted of the following: | |||||||||||||||||||||
(Millions of dollars) | Foreign currency translation | Pension and other postretirement benefits | Derivative financial instruments | Available-for-sale securities | Total | ||||||||||||||||
Balance at September 30, 2012 1 | $ | 432 | $ | (6,454 | ) | $ | (35 | ) | $ | 69 | $ | (5,988 | ) | ||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||
Balance at June 30, 2013 | $ | (92 | ) | $ | (6,645 | ) | $ | (33 | ) | $ | 72 | $ | (6,698 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 291 | (3 | ) | 26 | 9 | 323 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 120 | 9 | (1 | ) | 128 | |||||||||||||||
Other comprehensive income (loss) | 291 | 117 | 35 | 8 | 451 | ||||||||||||||||
Balance at September 30, 2013 | $ | 199 | $ | (6,528 | ) | $ | 2 | $ | 80 | $ | (6,247 | ) | |||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 456 | $ | (6,914 | ) | $ | (42 | ) | $ | 67 | $ | (6,433 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (257 | ) | 24 | 2 | 14 | (217 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 362 | 42 | (1 | ) | 403 | |||||||||||||||
Other comprehensive income (loss) | (257 | ) | 386 | 44 | 13 | 186 | |||||||||||||||
Balance at September 30, 2013 | $ | 199 | $ | (6,528 | ) | $ | 2 | $ | 80 | $ | (6,247 | ) | |||||||||
1 | In conjunction with the Cat Japan share redemption, to reflect the increase in our ownership interest in Cat Japan from 67 percent to 100 percent, $107 million was reclassified to Accumulated other comprehensive income (loss) from other components of stockholders' equity and was not included in Comprehensive income during the second quarter of 2012. The amount was comprised of foreign currency translation of $167 million, pension and other postretirement benefits of $(61) million and available-for-sale securities of $1 million. | ||||||||||||||||||||
The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations is as follows: | |||||||||||||||||||||
(Millions of dollars) | Classification of | Three Months Ended | Nine Months Ended | ||||||||||||||||||
income (expense) | 30-Sep-13 | 30-Sep-13 | |||||||||||||||||||
Pension and other postretirement benefits: | |||||||||||||||||||||
Amortization of actuarial gain (loss) | Note 9 1 | $ | (196 | ) | $ | (589 | ) | ||||||||||||||
Amortization of prior service credit (cost) | Note 9 1 | 14 | 41 | ||||||||||||||||||
Amortization of transition asset (obligation) | Note 9 1 | (1 | ) | (2 | ) | ||||||||||||||||
Reclassifications before tax | (183 | ) | (550 | ) | |||||||||||||||||
Tax (provision) benefit | 63 | 188 | |||||||||||||||||||
Reclassifications net of tax | $ | (120 | ) | $ | (362 | ) | |||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||
Foreign exchange contracts | Other income (expense) | $ | (12 | ) | $ | (60 | ) | ||||||||||||||
Interest rate contracts | Other income (expense) | (1 | ) | (2 | ) | ||||||||||||||||
Interest rate contracts | Interest expense of Financial Products | (1 | ) | (4 | ) | ||||||||||||||||
Reclassifications before tax | (14 | ) | (66 | ) | |||||||||||||||||
Tax (provision) benefit | 5 | 24 | |||||||||||||||||||
Reclassifications net of tax | $ | (9 | ) | $ | (42 | ) | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Realized gain (loss) | Other income (expense) | $ | 1 | $ | 1 | ||||||||||||||||
Tax (provision) benefit | — | — | |||||||||||||||||||
Reclassifications net of tax | $ | 1 | $ | 1 | |||||||||||||||||
Total reclassifications from Accumulated other comprehensive income (loss) | $ | (128 | ) | $ | (403 | ) | |||||||||||||||
1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. | |||||||||||||||||||||
Environmental_and_Legal_Matter
Environmental and Legal Matters | 9 Months Ended |
Sep. 30, 2013 | |
Environmental Remediation Obligations [Abstract] | ' |
Environmental and Legal Matters | ' |
Environmental and Legal 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. We have made, and will continue to make, significant research and development and capital expenditures to comply with these emissions standards. | |
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 accrued 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 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 October 24, 2013, Progress Rail Services Corporation (Progress Rail), a wholly-owned indirect subsidiary of Caterpillar Inc., received a grand jury subpoena from the U.S. District Court for the Central District of California. The subpoena requests documents and information from Progress Rail, United Industries Corporation, a wholly-owned subsidiary of Progress Rail, and Caterpillar Inc. relating to allegations that Progress Rail conducted improper or unnecessary railcar inspections and repairs and improperly disposed of parts, equipment, tools and other items. In connection with this subpoena, Progress Rail was informed by the U.S. Attorney for the Central District of California that it is a target of a criminal investigation into potential violations of environmental laws and alleged improper business practices. The Company is cooperating with the authorities. Because of the recent timing of the subpoena, the Company is unable to predict the outcome or reasonably estimate the potential loss; however, we currently believe that this matter will not have a material adverse effect on the Company's consolidated results of operation, financial position or liquidity. | |
We are also involved in 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, environmental matters or intellectual property rights. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal actions is not material. In some cases, we cannot reasonably estimate a range of loss because there is insufficient information regarding the matter. However, there is no more than a remote chance that any liability arising from these matters would be material. 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. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The provision for income taxes for the first nine months of 2013 reflects an estimated annual effective tax rate of 29 percent compared with 30.5 percent for 2012, excluding the items discussed below. The decrease is primarily due to the U.S. research and development tax credit that was expired in 2012, along with expected changes in our geographic mix of profits from a tax perspective. | |
The 2013 tax provision also includes a benefit of $87 million primarily related to the research and development tax credit that was retroactively extended for 2012 and a benefit of $55 million resulting from true-up of estimated amounts used in the tax provision to the 2012 U.S. tax return as filed in September 2013. This compares to an $81 million negative impact related to nondeductible goodwill in the first nine months of 2012. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||
A. | Basis for segment information | |||||||||||||||||||||||||||
Our Executive Office is comprised of five Group Presidents, a Senior Vice President and a CEO. Group Presidents are accountable for a related set of end-to-end businesses that they manage. The Senior Vice President leads the Caterpillar Enterprise System Group, which was formed during the second quarter of 2013 with the goal of improving our manufacturing and supply chain capabilities, driving sustained improvements in customer deliveries, improving operational efficiencies and building on recent product quality improvements. The CEO allocates resources and manages performance at the Group President level. As such, the CEO serves as our Chief Operating Decision Maker and operating segments are primarily based on the Group President reporting structure. | ||||||||||||||||||||||||||||
Three of our operating segments, Construction Industries, Resource Industries and Power Systems, are led by Group Presidents. One operating segment, Financial Products, is led by a Group President who has responsibility for Corporate Services. Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. The Caterpillar Enterprise System Group is also a cost center and does not meet the definition of an operating segment. One Group President leads a smaller operating segment that is included in the All Other operating segment. | ||||||||||||||||||||||||||||
B. | Description of segments | |||||||||||||||||||||||||||
We have five operating segments, of which four are reportable segments. Following is a brief description of our reportable segments and the business activities included in the All Other operating segment: | ||||||||||||||||||||||||||||
Construction Industries: A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing, and sales and product support. The product portfolio includes backhoe loaders, small wheel loaders, small track-type tractors, skid steer loaders, multi-terrain loaders, mini excavators, compact wheel loaders, select work tools, small, medium and large track excavators, wheel excavators, medium wheel loaders, medium track-type tractors, track-type loaders, motor graders and pipe layers. In addition, Construction Industries has responsibility for Power Systems and three wholly-owned dealers in Japan and an integrated manufacturing cost center. Inter-segment sales are a source of revenue for this segment. | ||||||||||||||||||||||||||||
Resource Industries: A segment primarily responsible for supporting customers using machinery in mining and quarrying applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors, large mining trucks, underground mining equipment, electric rope shovels, draglines, hydraulic shovels, drills, highwall miners, tunnel boring equipment, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, select work tools, forestry products, paving products, industrial and waste products, machinery components and electronics and control systems. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing and research and development. In addition, segment profit includes the impact from divestiture of portions of the Bucyrus distribution business and the acquisition of ERA Mining Machinery Limited, including its wholly-owned subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing Co., Ltd., commonly known as Siwei, which was completed during the second quarter of 2012. Siwei primarily designs, manufactures, sells and supports underground coal mining equipment in China. Inter-segment sales are a source of revenue for this segment. | ||||||||||||||||||||||||||||
Power Systems: A segment primarily responsible for supporting customers using reciprocating engines, turbines and related parts across industries serving electric power, industrial, petroleum and marine applications as well as rail-related businesses. Responsibilities include business strategy, product design, product management, development, manufacturing, marketing, sales and product support of reciprocating engine powered generator sets, integrated systems used in the electric power generation industry, reciprocating engines and integrated systems and solutions for the marine and petroleum industries; reciprocating engines supplied to the industrial industry as well as Caterpillar machinery; the business strategy, product design, product management, development, manufacturing, marketing, sales and product support of turbines and turbine-related services; the development, manufacturing, remanufacturing, maintenance, leasing and service of diesel-electric locomotives and components and other rail-related products and services. Inter-segment sales are a source of revenue for this segment. | ||||||||||||||||||||||||||||
Financial Products Segment: Provides financing to customers and dealers for the purchase and lease of Caterpillar and other equipment, as well as some financing for Caterpillar sales to dealers. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans. The segment also provides various forms of insurance to customers and dealers to help support the purchase and lease of our equipment. | ||||||||||||||||||||||||||||
All Other: Primarily includes activities such as: the remanufacturing of Cat® engines and components and remanufacturing services for other companies as well as the product management, development, manufacturing, marketing and product support of undercarriage, specialty products, hardened bar stock components and ground engaging tools primarily for Caterpillar products; logistics services; the product management, development, marketing, sales and product support of on-highway vocational trucks for North America; distribution services responsible for dealer development and administration, dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts. On July 31, 2012, we sold a majority interest in Caterpillar's third party logistics business. Inter-segment sales are a source of revenue for this segment. Results for the All Other operating segment are included as a reconciling item between reportable segments and consolidated external reporting. | ||||||||||||||||||||||||||||
C. | Segment measurement and reconciliations | |||||||||||||||||||||||||||
There are several methodology differences between our segment reporting and our external reporting. The following is a list of the more significant methodology differences: | ||||||||||||||||||||||||||||
• | Machinery and Power Systems segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable, and customer advances. Liabilities other than accounts payable and customer advances are generally managed at the corporate level and are not included in segment operations. Financial Products Segment assets generally include all categories of assets. | |||||||||||||||||||||||||||
• | Segment inventories and cost of sales are valued using a current cost methodology. | |||||||||||||||||||||||||||
• | Goodwill allocated to segments is amortized using a fixed amount based on a 20 year useful life. This methodology difference only impacts segment assets; no goodwill amortization expense is included in segment profit. In addition, only a portion of goodwill for certain acquisitions made in 2011 or later has been allocated to segments. | |||||||||||||||||||||||||||
• | The present value of future lease payments for certain Machinery and Power Systems operating leases is included in segment assets. The estimated financing component of the lease payments is excluded. | |||||||||||||||||||||||||||
• | Currency exposures for Machinery and Power Systems are generally managed at the corporate level and the effects of changes in exchange rates on results of operations within the year are not included in segment profit. The net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting are recorded as a methodology difference. | |||||||||||||||||||||||||||
• | Postretirement benefit expenses are split; segments are generally responsible for service and prior service costs, with the remaining elements of net periodic benefit cost included as a methodology difference. | |||||||||||||||||||||||||||
• | Machinery and Power Systems segment profit is determined on a pretax basis and excludes interest expense, gains and losses on interest rate swaps and other income/expense items. Financial Products Segment profit is determined on a pretax basis and includes other income/expense items. | |||||||||||||||||||||||||||
Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 34 to 39 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows: | ||||||||||||||||||||||||||||
• | Corporate costs: These costs are related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. | |||||||||||||||||||||||||||
• | Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting. | |||||||||||||||||||||||||||
• | Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. | |||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | 30-Sep | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 4,547 | $ | 68 | $ | 4,615 | $ | 145 | $ | 262 | $ | 8,489 | $ | 143 | ||||||||||||||
Resource Industries | 3,004 | 208 | 3,212 | 192 | 409 | 11,703 | 106 | |||||||||||||||||||||
Power Systems | 4,922 | 471 | 5,393 | 161 | 883 | 9,013 | 125 | |||||||||||||||||||||
Machinery and Power Systems | $ | 12,473 | $ | 747 | $ | 13,220 | $ | 498 | $ | 1,554 | $ | 29,205 | $ | 374 | ||||||||||||||
Financial Products Segment | 807 | — | 807 | 203 | 218 | 37,239 | 473 | |||||||||||||||||||||
Total | $ | 13,280 | $ | 747 | $ | 14,027 | $ | 701 | $ | 1,772 | $ | 66,444 | $ | 847 | ||||||||||||||
2012 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | December 31 | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 4,904 | $ | 102 | $ | 5,006 | $ | 144 | $ | 459 | $ | 10,393 | $ | 247 | ||||||||||||||
Resource Industries | 5,214 | 253 | 5,467 | 179 | 1,113 | 13,455 | 229 | |||||||||||||||||||||
Power Systems | 5,317 | 597 | 5,914 | 157 | 943 | 9,323 | 244 | |||||||||||||||||||||
Machinery and Power Systems | $ | 15,435 | $ | 952 | $ | 16,387 | $ | 480 | $ | 2,515 | $ | 33,171 | $ | 720 | ||||||||||||||
Financial Products Segment | 776 | — | 776 | 179 | 190 | 36,563 | 432 | |||||||||||||||||||||
Total | $ | 16,211 | $ | 952 | $ | 17,163 | $ | 659 | $ | 2,705 | $ | 69,734 | $ | 1,152 | ||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | 30-Sep | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 13,594 | $ | 262 | $ | 13,856 | $ | 426 | $ | 863 | $ | 8,489 | $ | 403 | ||||||||||||||
Resource Industries | 10,251 | 661 | 10,912 | 558 | 1,436 | 11,703 | 358 | |||||||||||||||||||||
Power Systems | 14,590 | 1,328 | 15,918 | 468 | 2,436 | 9,013 | 390 | |||||||||||||||||||||
Machinery and Power Systems | $ | 38,435 | $ | 2,251 | $ | 40,686 | $ | 1,452 | $ | 4,735 | $ | 29,205 | $ | 1,151 | ||||||||||||||
Financial Products Segment | 2,408 | — | 2,408 | 571 | 724 | 37,239 | 1,244 | |||||||||||||||||||||
Total | $ | 40,843 | $ | 2,251 | $ | 43,094 | $ | 2,023 | $ | 5,459 | $ | 66,444 | $ | 2,395 | ||||||||||||||
2012 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | December 31 | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 15,306 | $ | 355 | $ | 15,661 | $ | 414 | $ | 1,763 | $ | 10,393 | $ | 597 | ||||||||||||||
Resource Industries | 15,382 | 909 | 16,291 | 510 | 3,707 | 13,455 | 603 | |||||||||||||||||||||
Power Systems | 15,815 | 1,952 | 17,767 | 442 | 2,737 | 9,323 | 610 | |||||||||||||||||||||
Machinery and Power Systems | $ | 46,503 | $ | 3,216 | $ | 49,719 | $ | 1,366 | $ | 8,207 | $ | 33,171 | $ | 1,810 | ||||||||||||||
Financial Products Segment | 2,301 | — | 2,301 | 530 | 583 | 36,563 | 1,232 | |||||||||||||||||||||
Total | $ | 48,804 | $ | 3,216 | $ | 52,020 | $ | 1,896 | $ | 8,790 | $ | 69,734 | $ | 3,042 | ||||||||||||||
Reconciliation of Sales and revenues: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 12,473 | $ | 807 | $ | — | $ | 13,280 | ||||||||||||||||||||
All Other operating segment | 219 | — | — | 219 | ||||||||||||||||||||||||
Other | (14 | ) | 18 | (80 | ) | 1 | (76 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 12,678 | $ | 825 | $ | (80 | ) | $ | 13,423 | |||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 15,435 | $ | 776 | $ | — | $ | 16,211 | ||||||||||||||||||||
All Other operating segment | 318 | — | — | 318 | ||||||||||||||||||||||||
Other | (14 | ) | 20 | (90 | ) | 1 | (84 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 15,739 | $ | 796 | $ | (90 | ) | $ | 16,445 | |||||||||||||||||||
1 Elimination of Financial Products revenues from Machinery and Power Systems. | ||||||||||||||||||||||||||||
Reconciliation of Sales and revenues: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 38,435 | $ | 2,408 | $ | — | $ | 40,843 | ||||||||||||||||||||
All Other operating segment | 647 | — | — | 647 | ||||||||||||||||||||||||
Other | (34 | ) | 54 | (256 | ) | 1 | (236 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 39,048 | $ | 2,462 | $ | (256 | ) | $ | 41,254 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 46,503 | $ | 2,301 | $ | — | $ | 48,804 | ||||||||||||||||||||
All Other operating segment | 1,246 | — | — | 1,246 | ||||||||||||||||||||||||
Other | (38 | ) | 52 | (264 | ) | 1 | (250 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 47,711 | $ | 2,353 | $ | (264 | ) | $ | 49,800 | |||||||||||||||||||
1 Elimination of Financial Products revenues from Machinery and Power Systems. | ||||||||||||||||||||||||||||
Reconciliation of Consolidated profit before taxes: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 1,554 | $ | 218 | $ | 1,772 | ||||||||||||||||||||||
All Other operating segment | 170 | — | 170 | |||||||||||||||||||||||||
Cost centers | 42 | — | 42 | |||||||||||||||||||||||||
Corporate costs | (376 | ) | — | (376 | ) | |||||||||||||||||||||||
Timing | 77 | — | 77 | |||||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | (36 | ) | — | (36 | ) | |||||||||||||||||||||||
Postretirement benefit expense | (174 | ) | — | (174 | ) | |||||||||||||||||||||||
Financing costs | (120 | ) | — | (120 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | 1 | — | 1 | |||||||||||||||||||||||||
Currency | (32 | ) | — | (32 | ) | |||||||||||||||||||||||
Other income/expense methodology differences | (58 | ) | — | (58 | ) | |||||||||||||||||||||||
Other methodology differences | (1 | ) | (4 | ) | (5 | ) | ||||||||||||||||||||||
Total consolidated profit before taxes | $ | 1,047 | $ | 214 | $ | 1,261 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 2,515 | $ | 190 | $ | 2,705 | ||||||||||||||||||||||
All Other operating segment | 482 | — | 482 | |||||||||||||||||||||||||
Cost centers | 9 | — | 9 | |||||||||||||||||||||||||
Corporate costs | (366 | ) | — | (366 | ) | |||||||||||||||||||||||
Timing | (30 | ) | — | (30 | ) | |||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | 9 | — | 9 | |||||||||||||||||||||||||
Postretirement benefit expense | (177 | ) | — | (177 | ) | |||||||||||||||||||||||
Financing costs | (130 | ) | — | (130 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (5 | ) | — | (5 | ) | |||||||||||||||||||||||
Currency | 20 | — | 20 | |||||||||||||||||||||||||
Interest rate swaps | 2 | — | 2 | |||||||||||||||||||||||||
Other income/expense methodology differences | (64 | ) | — | (64 | ) | |||||||||||||||||||||||
Other methodology differences | (9 | ) | 4 | (5 | ) | |||||||||||||||||||||||
Total consolidated profit before taxes | $ | 2,256 | $ | 194 | $ | 2,450 | ||||||||||||||||||||||
Reconciliation of Consolidated profit before taxes: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 4,735 | $ | 724 | $ | 5,459 | ||||||||||||||||||||||
All Other operating segment | 547 | — | 547 | |||||||||||||||||||||||||
Cost centers | 100 | — | 100 | |||||||||||||||||||||||||
Corporate costs | (1,160 | ) | — | (1,160 | ) | |||||||||||||||||||||||
Timing | 58 | — | 58 | |||||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | (139 | ) | — | (139 | ) | |||||||||||||||||||||||
Postretirement benefit expense | (505 | ) | — | (505 | ) | |||||||||||||||||||||||
Financing costs | (361 | ) | — | (361 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | 1 | — | 1 | |||||||||||||||||||||||||
Currency | (71 | ) | — | (71 | ) | |||||||||||||||||||||||
Other income/expense methodology differences | (178 | ) | — | (178 | ) | |||||||||||||||||||||||
Other methodology differences | (20 | ) | 10 | (10 | ) | |||||||||||||||||||||||
Total consolidated profit before taxes | $ | 3,007 | $ | 734 | $ | 3,741 | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 8,207 | $ | 583 | $ | 8,790 | ||||||||||||||||||||||
All Other operating segment | 888 | — | 888 | |||||||||||||||||||||||||
Cost centers | 32 | — | 32 | |||||||||||||||||||||||||
Corporate costs | (1,126 | ) | — | (1,126 | ) | |||||||||||||||||||||||
Timing | (318 | ) | — | (318 | ) | |||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | (26 | ) | — | (26 | ) | |||||||||||||||||||||||
Postretirement benefit expense | (508 | ) | — | (508 | ) | |||||||||||||||||||||||
Financing costs | (357 | ) | — | (357 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (12 | ) | — | (12 | ) | |||||||||||||||||||||||
Currency | 160 | — | 160 | |||||||||||||||||||||||||
Interest rate swaps | 2 | — | 2 | |||||||||||||||||||||||||
Other income/expense methodology differences | (199 | ) | — | (199 | ) | |||||||||||||||||||||||
Other methodology differences | (3 | ) | 1 | (2 | ) | |||||||||||||||||||||||
Total consolidated profit before taxes | $ | 6,740 | $ | 584 | $ | 7,324 | ||||||||||||||||||||||
Reconciliation of Assets: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 29,205 | $ | 37,239 | $ | — | $ | 66,444 | ||||||||||||||||||||
All Other operating segment | 1,442 | — | — | 1,442 | ||||||||||||||||||||||||
Items not included in segment assets: | ||||||||||||||||||||||||||||
Cash and short-term investments | 4,108 | — | — | 4,108 | ||||||||||||||||||||||||
Intercompany receivables | 243 | — | (243 | ) | — | |||||||||||||||||||||||
Investment in Financial Products | 4,769 | — | (4,769 | ) | — | |||||||||||||||||||||||
Deferred income taxes | 3,883 | — | (490 | ) | 3,393 | |||||||||||||||||||||||
Goodwill and intangible assets | 3,567 | — | — | 3,567 | ||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 1,057 | — | — | 1,057 | ||||||||||||||||||||||||
Operating lease methodology difference | (287 | ) | — | — | (287 | ) | ||||||||||||||||||||||
Liabilities included in segment assets | 10,504 | — | — | 10,504 | ||||||||||||||||||||||||
Inventory methodology differences | (2,610 | ) | — | — | (2,610 | ) | ||||||||||||||||||||||
Other | (132 | ) | (151 | ) | (63 | ) | (346 | ) | ||||||||||||||||||||
Total assets | $ | 55,749 | $ | 37,088 | $ | (5,565 | ) | $ | 87,272 | |||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 33,171 | $ | 36,563 | $ | — | $ | 69,734 | ||||||||||||||||||||
All Other operating segment | 1,499 | — | — | 1,499 | ||||||||||||||||||||||||
Items not included in segment assets: | ||||||||||||||||||||||||||||
Cash and short-term investments | 3,306 | — | — | 3,306 | ||||||||||||||||||||||||
Intercompany receivables | 303 | — | (303 | ) | — | |||||||||||||||||||||||
Investment in Financial Products | 4,433 | — | (4,433 | ) | — | |||||||||||||||||||||||
Deferred income taxes | 3,926 | — | (516 | ) | 3,410 | |||||||||||||||||||||||
Goodwill and intangible assets | 3,145 | — | — | 3,145 | ||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 668 | — | — | 668 | ||||||||||||||||||||||||
Operating lease methodology difference | (329 | ) | — | — | (329 | ) | ||||||||||||||||||||||
Liabilities included in segment assets | 11,293 | — | — | 11,293 | ||||||||||||||||||||||||
Inventory methodology differences | (2,949 | ) | — | — | (2,949 | ) | ||||||||||||||||||||||
Other | (182 | ) | (107 | ) | (132 | ) | (421 | ) | ||||||||||||||||||||
Total assets | $ | 58,284 | $ | 36,456 | $ | (5,384 | ) | $ | 89,356 | |||||||||||||||||||
Reconciliations of Depreciation and amortization: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 498 | $ | 203 | $ | 701 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 43 | — | 43 | |||||||||||||||||||||||||
Cost centers | 36 | — | 36 | |||||||||||||||||||||||||
Other | (7 | ) | 6 | (1 | ) | |||||||||||||||||||||||
Total depreciation and amortization | $ | 570 | $ | 209 | $ | 779 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 480 | $ | 179 | $ | 659 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 41 | — | 41 | |||||||||||||||||||||||||
Cost centers | 23 | — | 23 | |||||||||||||||||||||||||
Other | (9 | ) | 6 | (3 | ) | |||||||||||||||||||||||
Total depreciation and amortization | $ | 535 | $ | 185 | $ | 720 | ||||||||||||||||||||||
Reconciliations of Depreciation and amortization: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,452 | $ | 571 | $ | 2,023 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 127 | — | 127 | |||||||||||||||||||||||||
Cost centers | 104 | — | 104 | |||||||||||||||||||||||||
Other | (9 | ) | 18 | 9 | ||||||||||||||||||||||||
Total depreciation and amortization | $ | 1,674 | $ | 589 | $ | 2,263 | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,366 | $ | 530 | $ | 1,896 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 125 | — | 125 | |||||||||||||||||||||||||
Cost centers | 64 | — | 64 | |||||||||||||||||||||||||
Other | (32 | ) | 17 | (15 | ) | |||||||||||||||||||||||
Total depreciation and amortization | $ | 1,523 | $ | 547 | $ | 2,070 | ||||||||||||||||||||||
Reconciliations of Capital expenditures: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 374 | $ | 473 | $ | — | $ | 847 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 88 | — | — | 88 | ||||||||||||||||||||||||
Cost centers | 41 | — | — | 41 | ||||||||||||||||||||||||
Timing | 5 | — | — | 5 | ||||||||||||||||||||||||
Other | (18 | ) | 18 | (15 | ) | (15 | ) | |||||||||||||||||||||
Total capital expenditures | $ | 490 | $ | 491 | $ | (15 | ) | $ | 966 | |||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 720 | $ | 432 | $ | — | $ | 1,152 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 75 | — | — | 75 | ||||||||||||||||||||||||
Cost centers | 16 | — | — | 16 | ||||||||||||||||||||||||
Timing | (40 | ) | — | — | (40 | ) | ||||||||||||||||||||||
Other | 8 | 35 | (15 | ) | 28 | |||||||||||||||||||||||
Total capital expenditures | $ | 779 | $ | 467 | $ | (15 | ) | $ | 1,231 | |||||||||||||||||||
Reconciliations of Capital expenditures: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,151 | $ | 1,244 | $ | — | $ | 2,395 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 200 | — | — | 200 | ||||||||||||||||||||||||
Cost centers | 115 | — | — | 115 | ||||||||||||||||||||||||
Timing | 531 | — | — | 531 | ||||||||||||||||||||||||
Other | (94 | ) | 66 | (50 | ) | (78 | ) | |||||||||||||||||||||
Total capital expenditures | $ | 1,903 | $ | 1,310 | $ | (50 | ) | $ | 3,163 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,810 | $ | 1,232 | $ | — | $ | 3,042 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 229 | — | — | 229 | ||||||||||||||||||||||||
Cost centers | 119 | — | — | 119 | ||||||||||||||||||||||||
Timing | 281 | — | — | 281 | ||||||||||||||||||||||||
Other | (115 | ) | 109 | (139 | ) | (145 | ) | |||||||||||||||||||||
Total capital expenditures | $ | 2,324 | $ | 1,341 | $ | (139 | ) | $ | 3,526 | |||||||||||||||||||
Cat_Financial_Financing_Activi
Cat Financial Financing Activities | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Cat Financial Financing Activities | ' | |||||||||||||||||||||||||||
Cat Financial Financing Activities | ||||||||||||||||||||||||||||
Credit quality of financing receivables and allowance for credit losses | ||||||||||||||||||||||||||||
Cat Financial applies a systematic methodology to determine the allowance for credit losses for finance receivables. Based upon Cat Financial’s analysis of credit losses and risk factors, portfolio segments are as follows: | ||||||||||||||||||||||||||||
• | Customer – Finance receivables with retail customers. | |||||||||||||||||||||||||||
• | Dealer – Finance receivables with Caterpillar dealers. | |||||||||||||||||||||||||||
Cat Financial further evaluates portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Typically, Cat Financial’s finance receivables within a geographic area have similar credit risk profiles and methods for assessing and monitoring credit risk. Cat Financial’s classes, which align with management reporting for credit losses, are as follows: | ||||||||||||||||||||||||||||
• | North America – Finance receivables originated in the United States or Canada. | |||||||||||||||||||||||||||
• | Europe – Finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States. | |||||||||||||||||||||||||||
• | Asia Pacific – Finance receivables originated in Australia, New Zealand, China, Japan, South Korea and Southeast Asia. | |||||||||||||||||||||||||||
• | Mining – Finance receivables related to large mining customers worldwide. | |||||||||||||||||||||||||||
• | Latin America – Finance receivables originated in Central and South American countries and Mexico. | |||||||||||||||||||||||||||
• | Caterpillar Power Finance – Finance receivables related to marine vessels with Caterpillar engines worldwide and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems worldwide. | |||||||||||||||||||||||||||
Impaired loans and finance leases | ||||||||||||||||||||||||||||
For all classes, a loan or finance lease is considered impaired, based on current information and events, if it is probable that Cat Financial will be unable to collect all amounts due according to the contractual terms of the loan or finance lease. Loans and finance leases reviewed for impairment include loans and finance leases that are past due, non-performing or in bankruptcy. Recognition of income is suspended and the loan or finance lease is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due except in locations where local regulatory requirements dictate a different method, or in instances in which relevant information is known that warrants placing the loan or finance lease on non-accrual status). Accrual is resumed, and previously suspended income is recognized, when the loan or finance lease becomes contractually current and/or collection doubts are removed. Cash receipts on impaired loans or finance leases are recorded against the receivable and then to any unrecognized income. | ||||||||||||||||||||||||||||
During the second quarter of 2013, Cat Financial changed the classification of certain loans and finance leases previously reported as impaired. While these loans and finance leases had been incorrectly reported as impaired, the related allowance for these loans and finance leases was appropriately measured; therefore, this change had no impact on the allowance for credit losses. The impact of incorrectly reporting these loans and finance leases as impaired was not considered material to previously issued financial statements; however, prior period impaired loan and finance lease balances have been revised throughout Notes 16 and 18. | ||||||||||||||||||||||||||||
There were no impaired loans or finance leases as of September 30, 2013 or December 31, 2012, for the Dealer portfolio segment. The average recorded investment for impaired loans and finance leases for the Dealer portfolio segment was zero for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||||
Individually impaired loans and finance leases for the Customer portfolio segment were as follows: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | |||||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 20 | $ | 19 | $ | — | $ | 28 | $ | 27 | $ | — | ||||||||||||||||
Europe | 53 | 52 | — | 45 | 45 | — | ||||||||||||||||||||||
Asia Pacific | 2 | 2 | — | 2 | 2 | — | ||||||||||||||||||||||
Mining | 127 | 127 | — | 1 | 1 | — | ||||||||||||||||||||||
Latin America | 16 | 16 | — | 7 | 7 | — | ||||||||||||||||||||||
Caterpillar Power Finance | 305 | 304 | — | 295 | 295 | — | ||||||||||||||||||||||
Total | $ | 523 | $ | 520 | $ | — | $ | 378 | $ | 377 | $ | — | ||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 16 | $ | 14 | $ | 4 | $ | 25 | $ | 23 | $ | 7 | ||||||||||||||||
Europe | 19 | 15 | 7 | 28 | 26 | 11 | ||||||||||||||||||||||
Asia Pacific | 22 | 22 | 6 | 19 | 19 | 4 | ||||||||||||||||||||||
Mining | — | — | — | — | — | — | ||||||||||||||||||||||
Latin America | 62 | 62 | 18 | 30 | 30 | 8 | ||||||||||||||||||||||
Caterpillar Power Finance | 94 | 89 | 25 | 113 | 109 | 24 | ||||||||||||||||||||||
Total | $ | 213 | $ | 202 | $ | 60 | $ | 215 | $ | 207 | $ | 54 | ||||||||||||||||
Total Impaired Loans and Finance Leases | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 36 | $ | 33 | $ | 4 | $ | 53 | $ | 50 | $ | 7 | ||||||||||||||||
Europe | 72 | 67 | 7 | 73 | 71 | 11 | ||||||||||||||||||||||
Asia Pacific | 24 | 24 | 6 | 21 | 21 | 4 | ||||||||||||||||||||||
Mining | 127 | 127 | — | 1 | 1 | — | ||||||||||||||||||||||
Latin America | 78 | 78 | 18 | 37 | 37 | 8 | ||||||||||||||||||||||
Caterpillar Power Finance | 399 | 393 | 25 | 408 | 404 | 24 | ||||||||||||||||||||||
Total | $ | 736 | $ | 722 | $ | 60 | $ | 593 | $ | 584 | $ | 54 | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||||||
(Millions of dollars) | Average Recorded | Interest Income | Average Recorded | Interest Income | ||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 23 | $ | — | $ | 41 | $ | 1 | ||||||||||||||||||||
Europe | 52 | — | 45 | — | ||||||||||||||||||||||||
Asia Pacific | 3 | — | 3 | — | ||||||||||||||||||||||||
Mining | 96 | 2 | 9 | 1 | ||||||||||||||||||||||||
Latin America | 14 | — | 6 | — | ||||||||||||||||||||||||
Caterpillar Power Finance | 280 | 1 | 219 | — | ||||||||||||||||||||||||
Total | $ | 468 | $ | 3 | $ | 323 | $ | 2 | ||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 14 | $ | — | $ | 25 | $ | — | ||||||||||||||||||||
Europe | 21 | — | 27 | 1 | ||||||||||||||||||||||||
Asia Pacific | 18 | — | 15 | — | ||||||||||||||||||||||||
Mining | — | — | — | — | ||||||||||||||||||||||||
Latin America | 53 | 1 | 37 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 156 | 1 | 106 | — | ||||||||||||||||||||||||
Total | $ | 262 | $ | 2 | $ | 210 | $ | 2 | ||||||||||||||||||||
Total Impaired Loans and Finance Leases | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 37 | $ | — | $ | 66 | $ | 1 | ||||||||||||||||||||
Europe | 73 | — | 72 | 1 | ||||||||||||||||||||||||
Asia Pacific | 21 | — | 18 | — | ||||||||||||||||||||||||
Mining | 96 | 2 | 9 | 1 | ||||||||||||||||||||||||
Latin America | 67 | 1 | 43 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 436 | 2 | 325 | — | ||||||||||||||||||||||||
Total | $ | 730 | $ | 5 | $ | 533 | $ | 4 | ||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||||||
(Millions of dollars) | Average Recorded | Interest Income | Average Recorded | Interest Income | ||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 26 | $ | 3 | $ | 56 | $ | 2 | ||||||||||||||||||||
Europe | 48 | — | 45 | — | ||||||||||||||||||||||||
Asia Pacific | 4 | — | 4 | — | ||||||||||||||||||||||||
Mining | 40 | 2 | 8 | 1 | ||||||||||||||||||||||||
Latin America | 11 | — | 6 | — | ||||||||||||||||||||||||
Caterpillar Power Finance | 285 | 2 | 204 | 2 | ||||||||||||||||||||||||
Total | $ | 414 | $ | 7 | $ | 323 | $ | 5 | ||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 18 | $ | — | $ | 25 | $ | — | ||||||||||||||||||||
Europe | 23 | 1 | 26 | 1 | ||||||||||||||||||||||||
Asia Pacific | 18 | 1 | 13 | 1 | ||||||||||||||||||||||||
Mining | 1 | — | — | — | ||||||||||||||||||||||||
Latin America | 44 | 2 | 26 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 143 | 1 | 87 | — | ||||||||||||||||||||||||
Total | $ | 247 | $ | 5 | $ | 177 | $ | 3 | ||||||||||||||||||||
Total Impaired Loans and Finance Leases | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 44 | $ | 3 | $ | 81 | $ | 2 | ||||||||||||||||||||
Europe | 71 | 1 | 71 | 1 | ||||||||||||||||||||||||
Asia Pacific | 22 | 1 | 17 | 1 | ||||||||||||||||||||||||
Mining | 41 | 2 | 8 | 1 | ||||||||||||||||||||||||
Latin America | 55 | 2 | 32 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 428 | 3 | 291 | 2 | ||||||||||||||||||||||||
Total | $ | 661 | $ | 12 | $ | 500 | $ | 8 | ||||||||||||||||||||
Non-accrual and past due loans and finance leases | ||||||||||||||||||||||||||||
For all classes, Cat Financial considers a loan or finance lease past due if any portion of a contractual payment is due and unpaid for more than 30 days. Recognition of income is suspended and the loan or finance lease is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due except in locations where local regulatory requirements dictate a different method, or in instances in which relevant information is known that warrants placing the loan or finance lease on non-accrual status). Accrual is resumed, and previously suspended income is recognized, when the loan or finance lease becomes contractually current and/or collection doubts are removed. | ||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, there were no loans or finance leases on non-accrual status for the Dealer portfolio segment. | ||||||||||||||||||||||||||||
The investment in customer loans and finance leases on non-accrual status was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 39 | $ | 59 | ||||||||||||||||||||||||
Europe | 41 | 38 | ||||||||||||||||||||||||||
Asia Pacific | 51 | 36 | ||||||||||||||||||||||||||
Mining | 31 | 12 | ||||||||||||||||||||||||||
Latin America | 194 | 148 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 141 | 220 | ||||||||||||||||||||||||||
Total | $ | 497 | $ | 513 | ||||||||||||||||||||||||
Aging related to loans and finance leases was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
31-60 | 61-90 | 91+ | Total Past | Current | Total | 91+ Still | ||||||||||||||||||||||
Days | Days | Days | Due | Finance | Accruing | |||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivables | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 33 | $ | 9 | $ | 29 | $ | 71 | $ | 6,256 | $ | 6,327 | $ | — | ||||||||||||||
Europe | 32 | 16 | 36 | 84 | 2,682 | 2,766 | 8 | |||||||||||||||||||||
Asia Pacific | 65 | 42 | 60 | 167 | 2,826 | 2,993 | 16 | |||||||||||||||||||||
Mining | — | — | 12 | 12 | 2,281 | 2,293 | — | |||||||||||||||||||||
Latin America | 63 | 34 | 189 | 286 | 2,491 | 2,777 | 5 | |||||||||||||||||||||
Caterpillar Power Finance | 7 | 18 | 69 | 94 | 3,025 | 3,119 | 1 | |||||||||||||||||||||
Dealer | ||||||||||||||||||||||||||||
North America | — | — | — | — | 2,349 | 2,349 | — | |||||||||||||||||||||
Europe | — | — | — | — | 176 | 176 | — | |||||||||||||||||||||
Asia Pacific | — | — | — | — | 565 | 565 | — | |||||||||||||||||||||
Mining | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||
Latin America | — | — | 1 | 1 | 778 | 779 | 1 | |||||||||||||||||||||
Total | $ | 200 | $ | 119 | $ | 396 | $ | 715 | $ | 23,430 | $ | 24,145 | $ | 31 | ||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
31-60 | 61-90 | 91+ | Total Past | Current | Total | 91+ Still | ||||||||||||||||||||||
Days | Days | Days | Due | Finance | Accruing | |||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivables | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 35 | $ | 8 | $ | 52 | $ | 95 | $ | 5,872 | $ | 5,967 | $ | — | ||||||||||||||
Europe | 23 | 9 | 36 | 68 | 2,487 | 2,555 | 6 | |||||||||||||||||||||
Asia Pacific | 53 | 19 | 54 | 126 | 2,912 | 3,038 | 18 | |||||||||||||||||||||
Mining | — | 1 | 12 | 13 | 1,960 | 1,973 | — | |||||||||||||||||||||
Latin America | 62 | 19 | 138 | 219 | 2,500 | 2,719 | — | |||||||||||||||||||||
Caterpillar Power Finance | 15 | 14 | 126 | 155 | 3,017 | 3,172 | 4 | |||||||||||||||||||||
Dealer | ||||||||||||||||||||||||||||
North America | — | — | — | — | 2,063 | 2,063 | — | |||||||||||||||||||||
Europe | — | — | — | — | 185 | 185 | — | |||||||||||||||||||||
Asia Pacific | — | — | — | — | 751 | 751 | — | |||||||||||||||||||||
Mining | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||
Latin America | — | — | — | — | 884 | 884 | — | |||||||||||||||||||||
Total | $ | 188 | $ | 70 | $ | 418 | $ | 676 | $ | 22,632 | $ | 23,308 | $ | 28 | ||||||||||||||
Allowance for credit loss activity | ||||||||||||||||||||||||||||
In estimating the allowance for credit losses, Cat Financial reviews loans and finance leases that are past due, non-performing or in bankruptcy. An analysis of the allowance for credit losses was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Allowance for Credit Losses: | Customer | Dealer | Total | |||||||||||||||||||||||||
Balance at beginning of year | $ | 414 | $ | 9 | $ | 423 | ||||||||||||||||||||||
Receivables written off | (133 | ) | — | (133 | ) | |||||||||||||||||||||||
Recoveries on receivables previously written off | 38 | — | 38 | |||||||||||||||||||||||||
Provision for credit losses | 76 | 2 | 78 | |||||||||||||||||||||||||
Other | (5 | ) | — | (5 | ) | |||||||||||||||||||||||
Balance at end of period | $ | 390 | $ | 11 | $ | 401 | ||||||||||||||||||||||
Individually evaluated for impairment | $ | 60 | $ | — | $ | 60 | ||||||||||||||||||||||
Collectively evaluated for impairment | 330 | 11 | 341 | |||||||||||||||||||||||||
Ending Balance | $ | 390 | $ | 11 | $ | 401 | ||||||||||||||||||||||
Recorded Investment in Finance Receivables: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 736 | $ | — | $ | 736 | ||||||||||||||||||||||
Collectively evaluated for impairment | 19,539 | 3,870 | 23,409 | |||||||||||||||||||||||||
Ending Balance | $ | 20,275 | $ | 3,870 | $ | 24,145 | ||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Allowance for Credit Losses: | Customer | Dealer | Total | |||||||||||||||||||||||||
Balance at beginning of year | $ | 360 | $ | 6 | $ | 366 | ||||||||||||||||||||||
Receivables written off | (149 | ) | — | (149 | ) | |||||||||||||||||||||||
Recoveries on receivables previously written off | 47 | — | 47 | |||||||||||||||||||||||||
Provision for credit losses | 157 | 3 | 160 | |||||||||||||||||||||||||
Other | (1 | ) | — | (1 | ) | |||||||||||||||||||||||
Balance at end of year | $ | 414 | $ | 9 | $ | 423 | ||||||||||||||||||||||
Individually evaluated for impairment | $ | 54 | $ | — | $ | 54 | ||||||||||||||||||||||
Collectively evaluated for impairment | 360 | 9 | 369 | |||||||||||||||||||||||||
Ending Balance | $ | 414 | $ | 9 | $ | 423 | ||||||||||||||||||||||
Recorded Investment in Finance Receivables: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 593 | $ | — | $ | 593 | ||||||||||||||||||||||
Collectively evaluated for impairment | 18,831 | 3,884 | 22,715 | |||||||||||||||||||||||||
Ending Balance | $ | 19,424 | $ | 3,884 | $ | 23,308 | ||||||||||||||||||||||
Credit quality of finance receivables | ||||||||||||||||||||||||||||
The credit quality of finance receivables is reviewed on a monthly basis. Credit quality indicators include performing and non-performing. Non-performing is defined as finance receivables currently over 120 days past due and/or on non-accrual status or in bankruptcy. Finance receivables not meeting the criteria listed above are considered performing. Non-performing receivables have the highest probability for credit loss. The allowance for credit losses attributable to non-performing receivables is based on the most probable source of repayment, which is normally the liquidation of collateral. In determining collateral value, Cat Financial estimates the current fair market value of the collateral. In addition, Cat Financial considers credit enhancements such as additional collateral and contractual third-party guarantees in determining the allowance for credit losses attributable to non-performing receivables. | ||||||||||||||||||||||||||||
The recorded investment in performing and non-performing finance receivables was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Customer | Dealer | Total | Customer | Dealer | Total | |||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||
North America | $ | 6,288 | $ | 2,349 | $ | 8,637 | $ | 5,908 | $ | 2,063 | $ | 7,971 | ||||||||||||||||
Europe | 2,725 | 176 | 2,901 | 2,517 | 185 | 2,702 | ||||||||||||||||||||||
Asia Pacific | 2,942 | 565 | 3,507 | 3,002 | 751 | 3,753 | ||||||||||||||||||||||
Mining | 2,262 | 1 | 2,263 | 1,961 | 1 | 1,962 | ||||||||||||||||||||||
Latin America | 2,583 | 779 | 3,362 | 2,571 | 884 | 3,455 | ||||||||||||||||||||||
Caterpillar Power Finance | 2,978 | — | 2,978 | 2,952 | — | 2,952 | ||||||||||||||||||||||
Total Performing | $ | 19,778 | $ | 3,870 | $ | 23,648 | $ | 18,911 | $ | 3,884 | $ | 22,795 | ||||||||||||||||
Non-Performing | ||||||||||||||||||||||||||||
North America | $ | 39 | $ | — | $ | 39 | $ | 59 | $ | — | $ | 59 | ||||||||||||||||
Europe | 41 | — | 41 | 38 | — | 38 | ||||||||||||||||||||||
Asia Pacific | 51 | — | 51 | 36 | — | 36 | ||||||||||||||||||||||
Mining | 31 | — | 31 | 12 | — | 12 | ||||||||||||||||||||||
Latin America | 194 | — | 194 | 148 | — | 148 | ||||||||||||||||||||||
Caterpillar Power Finance | 141 | — | 141 | 220 | — | 220 | ||||||||||||||||||||||
Total Non-Performing | $ | 497 | $ | — | $ | 497 | $ | 513 | $ | — | $ | 513 | ||||||||||||||||
Performing & Non-Performing | ||||||||||||||||||||||||||||
North America | $ | 6,327 | $ | 2,349 | $ | 8,676 | $ | 5,967 | $ | 2,063 | $ | 8,030 | ||||||||||||||||
Europe | 2,766 | 176 | 2,942 | 2,555 | 185 | 2,740 | ||||||||||||||||||||||
Asia Pacific | 2,993 | 565 | 3,558 | 3,038 | 751 | 3,789 | ||||||||||||||||||||||
Mining | 2,293 | 1 | 2,294 | 1,973 | 1 | 1,974 | ||||||||||||||||||||||
Latin America | 2,777 | 779 | 3,556 | 2,719 | 884 | 3,603 | ||||||||||||||||||||||
Caterpillar Power Finance | 3,119 | — | 3,119 | 3,172 | — | 3,172 | ||||||||||||||||||||||
Total | $ | 20,275 | $ | 3,870 | $ | 24,145 | $ | 19,424 | $ | 3,884 | $ | 23,308 | ||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||
A restructuring of a loan or finance lease receivable constitutes a troubled debt restructuring (TDR) when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods. | ||||||||||||||||||||||||||||
TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the allowance for credit losses. The allowance for credit losses attributable to TDRs is based on the most probable source of repayment, which is normally the liquidation of collateral. In determining collateral value, Cat Financial estimates the current fair market value of the collateral. In addition, Cat Financial factors in credit enhancements such as additional collateral and contractual third-party guarantees in determining the allowance for credit losses attributable to TDRs. | ||||||||||||||||||||||||||||
There were no loans or finance lease receivables modified as TDRs during the three and nine months ended September 30, 2013 or 2012 for the Dealer portfolio segment. | ||||||||||||||||||||||||||||
Loan and finance lease receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2013 and 2012, were as follows: | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | |||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | |||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 14 | $ | 1 | $ | — | 17 | $ | 4 | $ | 4 | ||||||||||||||||||
Europe | 7 | 5 | 5 | 14 | 1 | 1 | ||||||||||||||||||||||
Asia Pacific | — | — | — | 12 | 3 | 3 | ||||||||||||||||||||||
Mining | 45 | 123 | 123 | — | — | — | ||||||||||||||||||||||
Latin America | 10 | 1 | 1 | — | — | — | ||||||||||||||||||||||
Caterpillar Power Finance 1 | 6 | 65 | 67 | 15 | 151 | 151 | ||||||||||||||||||||||
Total 2 | 82 | $ | 195 | $ | 196 | 58 | $ | 159 | $ | 159 | ||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | |||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | |||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 46 | $ | 5 | $ | 5 | 58 | $ | 8 | $ | 8 | ||||||||||||||||||
Europe | 15 | 6 | 6 | 21 | 8 | 8 | ||||||||||||||||||||||
Asia Pacific | — | — | — | 12 | 3 | 3 | ||||||||||||||||||||||
Mining | 45 | 123 | 123 | — | — | — | ||||||||||||||||||||||
Latin America | 16 | 2 | 2 | — | — | — | ||||||||||||||||||||||
Caterpillar Power Finance 1 | 10 | 101 | 104 | 20 | 183 | 183 | ||||||||||||||||||||||
Total 2 | 132 | $ | 237 | $ | 240 | 111 | $ | 202 | $ | 202 | ||||||||||||||||||
1 | During the three and nine months ended September 30, 2013, $13 million and $25 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $13 million and $25 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the period presented. At September 30, 2013, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $4 million. | |||||||||||||||||||||||||||
2 | Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods. | |||||||||||||||||||||||||||
TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2013 and 2012, which had been modified within twelve months prior to the default date, were as follows: | ||||||||||||||||||||||||||||
(Dollars in millions) | Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||
Number of | Post-TDR | Number of | Post-TDR | |||||||||||||||||||||||||
Contracts | Recorded | Contracts | Recorded | |||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 5 | $ | 1 | 8 | $ | 1 | ||||||||||||||||||||||
Europe | 5 | — | — | — | ||||||||||||||||||||||||
Asia Pacific | — | — | 2 | 1 | ||||||||||||||||||||||||
Total | 10 | $ | 1 | 10 | $ | 2 | ||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Number of | Post-TDR | Number of | Post-TDR | |||||||||||||||||||||||||
Contracts | Recorded | Contracts | Recorded | |||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 18 | $ | 4 | 39 | $ | 3 | ||||||||||||||||||||||
Europe | 5 | — | — | — | ||||||||||||||||||||||||
Asia Pacific | — | — | 2 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 2 | 3 | 16 | 21 | ||||||||||||||||||||||||
Total | 25 | $ | 7 | 57 | $ | 25 | ||||||||||||||||||||||
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interest - Caterpillar Japan Ltd. | 9 Months Ended |
Sep. 30, 2013 | |
Redeemable Noncontrolling Interest Disclosure Abstract | ' |
Redeemable Noncontrolling Interest - Caterpillar Japan Ltd. | ' |
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) and we consolidated its financial statements. On April 2, 2012, we redeemed the remaining 33 percent interest at its carrying amount, resulting in Caterpillar becoming the sole owner of Cat Japan. Caterpillar paid $444 million (36.5 billion Japanese Yen) to acquire the remaining equity interest held in Cat Japan by MHI. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
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. | |||||||||||||||||||||
Fair value measurement includes 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 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 (certain Level 2 and Level 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. | |||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||
The fair value of interest rate swap derivatives is primarily based on models that utilize the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency and commodity forward, option and cross currency contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. | |||||||||||||||||||||
Guarantees | |||||||||||||||||||||
The fair value of guarantees is based upon our estimate of the premium a market participant would require to issue the same guarantee in a stand-alone arms-length transaction with an unrelated party. If quoted or observable market prices are not available, fair value is based upon internally developed models that utilize current market-based assumptions. | |||||||||||||||||||||
Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of September 30, 2013 and December 31, 2012 are summarized below: | |||||||||||||||||||||
(Millions of dollars) | September 30, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets / Liabilities, | |||||||||||||||||||||
at Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Government debt | |||||||||||||||||||||
U.S. treasury bonds | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||
Other U.S. and non-U.S. government bonds | — | 126 | — | 126 | |||||||||||||||||
Corporate bonds | |||||||||||||||||||||
Corporate bonds | — | 672 | — | 672 | |||||||||||||||||
Asset-backed securities | — | 75 | — | 75 | |||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||
U.S. governmental agency | — | 337 | — | 337 | |||||||||||||||||
Residential | — | 21 | — | 21 | |||||||||||||||||
Commercial | — | 93 | — | 93 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Large capitalization value | 231 | — | — | 231 | |||||||||||||||||
Smaller company growth | 45 | — | — | 45 | |||||||||||||||||
Total available-for-sale securities | 287 | 1,324 | — | 1,611 | |||||||||||||||||
Derivative financial instruments, net | — | 186 | — | 186 | |||||||||||||||||
Total Assets | $ | 287 | $ | 1,510 | $ | — | $ | 1,797 | |||||||||||||
Liabilities | |||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets / Liabilities, | |||||||||||||||||||||
at Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Government debt | |||||||||||||||||||||
U.S. treasury bonds | $ | 10 | $ | — | $ | — | $ | 10 | |||||||||||||
Other U.S. and non-U.S. government bonds | — | 146 | — | 146 | |||||||||||||||||
Corporate bonds | |||||||||||||||||||||
Corporate bonds | — | 664 | — | 664 | |||||||||||||||||
Asset-backed securities | — | 96 | — | 96 | |||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||
U.S. governmental agency | — | 299 | — | 299 | |||||||||||||||||
Residential | — | 25 | — | 25 | |||||||||||||||||
Commercial | — | 127 | — | 127 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Large capitalization value | 185 | — | — | 185 | |||||||||||||||||
Smaller company growth | 34 | — | — | 34 | |||||||||||||||||
Total available-for-sale securities | 229 | 1,357 | — | 1,586 | |||||||||||||||||
Derivative financial instruments, net | — | 154 | — | 154 | |||||||||||||||||
Total Assets | $ | 229 | $ | 1,511 | $ | — | $ | 1,740 | |||||||||||||
Liabilities | |||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 14 | $ | 14 | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | 14 | $ | 14 | |||||||||||||
Below are roll-forwards of liabilities measured at fair value using Level 3 inputs for the nine months ended September 30, 2013 and 2012. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions of a marketplace participant. | |||||||||||||||||||||
(Millions of dollars) | Guarantees | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 14 | |||||||||||||||||||
Issuance of guarantees | 6 | ||||||||||||||||||||
Expiration of guarantees | (5 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 15 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 7 | |||||||||||||||||||
Acquisitions | 6 | ||||||||||||||||||||
Issuance of guarantees | 7 | ||||||||||||||||||||
Expiration of guarantees | (3 | ) | |||||||||||||||||||
Balance at September 30, 2012 | $ | 17 | |||||||||||||||||||
In addition to the amounts above, Cat Financial impaired loans are subject to measurement at fair value on a nonrecurring basis. A loan is considered impaired when management determines that collection of contractual amounts due is not probable. In these cases, an allowance for credit losses may be established based primarily on the fair value of associated collateral. As the collateral’s fair value is based on observable market prices and/or current appraised values, the impaired loans are classified as Level 2 measurements. Cat Financial had impaired loans with a fair value of $109 million and $117 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
B. Fair values of financial instruments | |||||||||||||||||||||
In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair value measurements section above, we used the following methods and assumptions to estimate the fair value of our financial instruments: | |||||||||||||||||||||
Cash and short-term investments | |||||||||||||||||||||
Carrying amount approximated fair value. | |||||||||||||||||||||
Restricted cash and short-term investments | |||||||||||||||||||||
Carrying amount approximated fair value. Restricted cash and short-term investments are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. | |||||||||||||||||||||
Finance receivables | |||||||||||||||||||||
Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. | |||||||||||||||||||||
Wholesale inventory receivables | |||||||||||||||||||||
Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. | |||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||
Carrying amount approximated fair value. | |||||||||||||||||||||
Long-term debt | |||||||||||||||||||||
Fair value for fixed and floating rate debt was estimated based on quoted market prices. | |||||||||||||||||||||
Please refer to the table below for the fair values of our financial instruments. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
(Millions of dollars) | Carrying | Fair | Carrying | Fair | Fair Value Levels | Reference | |||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and short-term investments | $ | 6,357 | $ | 6,357 | $ | 5,490 | $ | 5,490 | 1 | ||||||||||||
Restricted cash and short-term investments | 50 | 50 | 53 | 53 | 1 | ||||||||||||||||
Available-for-sale securities | 1,611 | 1,611 | 1,586 | 1,586 | 1 & 2 | Note 8 | |||||||||||||||
Finance receivables – net (excluding finance leases 1) | 16,077 | 15,952 | 15,404 | 15,359 | 2 | Note 16 | |||||||||||||||
Wholesale inventory receivables – net (excluding finance leases 1) | 1,616 | 1,542 | 1,674 | 1,609 | 2 | Note 16 | |||||||||||||||
Foreign currency contracts – net | 51 | 51 | — | — | 2 | Note 4 | |||||||||||||||
Interest rate swaps – net | 136 | 136 | 219 | 219 | 2 | Note 4 | |||||||||||||||
Commodity contracts – net | — | — | 1 | 1 | 2 | Note 4 | |||||||||||||||
Liabilities | |||||||||||||||||||||
Short-term borrowings | 5,847 | 5,847 | 5,287 | 5,287 | 1 | ||||||||||||||||
Long-term debt (including amounts due within one year) | |||||||||||||||||||||
Machinery and Power Systems | 9,061 | 10,337 | 9,779 | 11,969 | 2 | ||||||||||||||||
Financial Products | 24,629 | 25,239 | 25,077 | 26,063 | 2 | ||||||||||||||||
Foreign currency contracts – net | — | — | 66 | 66 | 2 | Note 4 | |||||||||||||||
Commodity contracts – net | 1 | 1 | — | — | 2 | Note 4 | |||||||||||||||
Guarantees | 15 | 15 | 14 | 14 | 3 | Note 10 | |||||||||||||||
1 | Total excluded items have a net carrying value at September 30, 2013 and December 31, 2012 of $8,132 million and $7,959 million, respectively. | ||||||||||||||||||||
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
Johan Walter Berg AB | |
In September 2013, we acquired 100 percent of the stock of Johan Walter Berg AB (Berg). Berg is a leading manufacturer of mechanically and electrically driven propulsion systems and marine controls for ships. Headquartered in Öckerö Islands, Sweden, Berg has designed and manufactured heavy-duty marine thrusters and controllable pitch propellers since 1929. Its proprietary systems are employed in maritime applications throughout the world that require precise maneuvering and positioning. With the acquisition, Caterpillar will transition from selling only engines and generators to providing complete marine propulsion package systems. The purchase price, net of $9 million of acquired cash, was approximately $166 million. The purchase price includes contingent consideration, payable in 2016, with a fair value of approximately $7 million. The contingent consideration will be based on the revenues achieved by Berg in the period from January 1, 2013 to December 31, 2015 and is capped at €30 million. The contingent consideration will be remeasured each reporting period at its estimated fair value with any adjustment included in Other operating (income) expenses in the Consolidated Statement of Results of Operations. | |
The transaction was financed with available cash. Tangible assets as of the acquisition date were $83 million, recorded at their fair values, and primarily included cash of $9 million, receivables of $13 million, inventories of $33 million and property, plant and equipment of $28 million. Finite-lived intangible assets acquired of $66 million included developed technology, customer relationships, and trade names. The finite lived intangible assets are being amortized on a straight-line basis over a weighted-average amortization period of approximately 10 years. Liabilities assumed as of the acquisition date were $83 million, recorded at their fair values, and primarily included accounts payable of $19 million, advance payments of $33 million and net deferred tax liabilities of $13 million. Goodwill of $109 million, non-deductible for income tax purposes, represented the excess of the consideration transferred over the net assets recognized and represented the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Factors that contributed to a purchase price resulting in the recognition of goodwill include Berg’s strategic fit into our product portfolio, the opportunity to provide worldwide support to marine operators for a complete, optimized propulsion package, and the acquired assembled workforce. These values represent a preliminary allocation of purchase price subject to finalization of post-closing procedures. Berg will be reported in the Power Systems segment in Note 15. 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. | |
ERA Mining Machinery Limited (Siwei) | |
During the second quarter of 2012, Caterpillar, through its wholly-owned subsidiary Caterpillar (Luxembourg) Investment Co. S.A. (CAT Lux), completed a tender offer to acquire the issued shares of ERA Mining Machinery Limited (Siwei), including its wholly-owned subsidiary Zhengzhou Siwei Mechanical Manufacturing Co., Ltd. Substantially all of the issued shares of Siwei, a public company listed on the Hong Kong Exchange, were acquired at the end of May 2012. In October 2012, the remaining shares of Siwei common stock were acquired for approximately $7 million in cash. Siwei primarily designs, manufactures, sells and supports underground coal mining equipment in mainland China and is known for its expertise in manufacturing mining roof support equipment. The acquisition supports Caterpillar's long-term commitment to invest in China in order to support our growing base of Chinese customers and will further expand our underground mining business both inside and outside of China. | |
The tender offer allowed Siwei shareholders to choose between two types of consideration in exchange for their shares. The alternatives were either cash consideration of HK$0.88 or a HK$1.00 loan note issued by CAT Lux to the former shareholders of Siwei that provided, subject to its terms, for the holder to receive on redemption a minimum of HK$0.75 up to a maximum of HK$1.15 depending on Siwei's consolidated gross profit for 2012 and 2013. Approximately 4 billion Siwei shares were tendered for the cash alternative and approximately 1.6 billion Siwei shares were tendered for the loan note alternative. The purchase price of approximately $677 million was comprised of net cash paid of approximately $444 million ($475 million in cash paid for shares and to cancel share options less cash acquired of $31 million), the fair value of the loan notes of $152 million, approximately $168 million of assumed third-party short term borrowings and notes payable, a loan and interest payable to Caterpillar from Siwei of $51 million, less restricted cash acquired of approximately $138 million. The noncontrolling interest for the outstanding shares not tendered was approximately $7 million. | |
The transaction was financed with available cash and included the issuance of loan notes to certain former shareholders of Siwei, which had a debt component and a portion that was contingent consideration. The $152 million fair value represented the minimum redemption amount of the debt component payable in April 2013. | |
Tangible assets as of the acquisition date and after giving effect to the adjustments described below were $598 million, recorded at their fair values, and primarily included cash of $31 million, restricted cash of $138 million, receivables of $184 million, inventories of $77 million and property, plant and equipment of $94 million. Finite-lived intangible assets acquired of $112 million were primarily related to customer relationships and also included trade names. The finite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of approximately 14 years. Liabilities assumed as of the acquisition date and after giving effect to the adjustments described below were $626 million, recorded at their fair values, and primarily included accounts payable of $352 million, third-party short term borrowings and notes payable of $168 million and accrued expenses of $37 million. Additionally, deferred tax liabilities were $25 million. Goodwill of $625 million, substantially all of which is non-deductible for income tax purposes, represented the excess of the consideration transferred over the net assets recognized and represented the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill will not be amortized, but will be tested for impairment at least annually. Factors that contributed to a purchase price resulting in the recognition of goodwill include expected cost savings primarily from increased purchasing power for raw materials, improved working capital management, expanded underground mining equipment sales opportunities in China and internationally, along with the acquired assembled workforce. 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 Resource Industries segment in Note 15. 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. | |
In November 2012, Caterpillar became aware of inventory accounting discrepancies at Siwei which led to an internal investigation. Caterpillar's investigation determined that Siwei had engaged in accounting misconduct prior to Caterpillar's acquisition of Siwei in mid-2012. The accounting misconduct included inappropriate accounting practices involving improper cost allocation that resulted in overstated profit and improper revenue recognition practices involving early and, at times unsupported, revenue recognition. Due to the identified accounting misconduct that occurred before the acquisition, measurement period adjustments were made to the fair value of the acquired assets and assumed liabilities during the fourth quarter of 2012. The fair values presented above are a final allocation of the purchase price and reflect these changes, which are primarily comprised of a decrease in finite-lived intangible assets of $82 million, a decrease in receivables of $29 million, a decrease in inventory of $17 million and a net increase in liabilities of $23 million, resulting in an increase in goodwill of $149 million. | |
Because of the accounting misconduct identified in the fourth quarter of 2012, Siwei's goodwill was tested for impairment as of November 30, 2012. We determined the carrying value of Siwei, which is a separate reporting unit, exceeded its fair value at the measurement date, requiring step two in the impairment test process. The fair value of the Siwei reporting unit was determined primarily using an income approach based on the present value of discounted cash flows. We assigned the fair value to the reporting unit's assets and liabilities and determined the implied fair value of goodwill was substantially below the carrying value of the reporting unit's goodwill. Accordingly, we recognized a $580 million goodwill impairment charge, which resulted in goodwill of approximately $45 million remaining for Siwei. The goodwill impairment was a result of changes in the assumptions used to determine the fair value resulting from the accounting misconduct that occurred before the acquisition. There was no tax benefit associated with this impairment charge. The Siwei goodwill impairment charge was reported in the fourth quarter of 2012 in the Resource Industries segment. | |
In May 2013, Caterpillar and its wholly-owned subsidiaries CAT Lux and Siwei entered into a settlement agreement with two former directors of Siwei and two other parties with an interest in the settlement, including Mining Machinery Limited (MML). The agreement settles the dispute between the parties which arose from Caterpillar's determination that Siwei senior managers had engaged in accounting misconduct for several years prior to Caterpillar's announcement of the completion of its tender offer for Siwei in the second quarter of 2012. | |
Under the terms of the settlement agreement, the parties agreed that (i) the loan notes issued by CAT Lux (and guaranteed by Caterpillar) as a portion of the Siwei purchase price and held by MML and (ii) loans made by the two former Siwei directors to Siwei prior to its acquisition by Caterpillar would all be canceled and discharged in exchange for payments by CAT Lux to MML and the two former directors in an aggregate amount of approximately $30 million. As of the settlement in May 2013, the loan notes had a book value of approximately $152 million and the obligation related to the loans by the two former directors was approximately $13 million. The settlement agreement contains a mutual release and discharge of the parties' respective claims with respect to the dispute and contains an agreement by Caterpillar and CAT Lux not to pursue any such claims against either the auditors or former directors of Siwei. The settlement and discharge of the loan obligations resulted in the recognition of a gain of approximately $135 million reported in Other operating (income) expenses in the Consolidated Statement of Results of Operations and is included in the Resource Industries segment. |
Divestitures_and_Assets_Held_f
Divestitures and Assets Held for Sale | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Divestitures and Assets held for sale [Abstract] | ' | |||||||
Divestitures and Assets Held for Sale | ' | |||||||
Divestitures and Assets Held for Sale | ||||||||
Bucyrus Distribution Business Divestiture | ||||||||
In conjunction with our acquisition of Bucyrus in July 2011, we announced our intention to sell the Bucyrus distribution business to Caterpillar dealers that support mining customers around the world in a series of individual transactions. Bucyrus predominantly employed a direct to end customer model to sell and support products. The intention is for all Bucyrus products to be sold and serviced by Caterpillar dealers, consistent with our long-held distribution strategy. These transitions are occurring in phases based on the mining business opportunity within each dealer territory. | ||||||||
As portions of the Bucyrus distribution business are sold or classified as held for sale, they will not qualify as discontinued operations because Caterpillar expects significant continuing direct cash flows from the Caterpillar dealers after the divestitures. The gain or loss on disposal, along with the continuing operations of these disposal groups, will be reported in the Resource Industries segment. Goodwill will be allocated to each disposal group using the relative fair value method. The value of the customer relationship intangibles related to each portion of the Bucyrus distribution business to be sold will be included in the disposal groups. The disposal groups will be recorded at the lower of their carrying value or fair value less cost to sell. The portions of the distribution business that were sold were not material to our results of operations, financial position or cash flow. | ||||||||
We completed two sale transactions during the first quarter, one during the second quarter and three during the third quarter of 2013 whereby we sold portions of the Bucyrus distribution business to Caterpillar dealers for an aggregate price of $199 million. For the first nine months of 2013, after-tax profit was unfavorably impacted by $44 million as a result of the Bucyrus distribution divestiture activities. This is comprised of $64 million of gains related to the sales transactions, a $34 million unfavorable adjustment due to a change in estimate to increase the reserve for parts returns related to prior sale transactions (both included in Other operating (income) expenses) and costs incurred related to the Bucyrus distribution divestiture activities of $85 million (included in Selling, general and administrative expenses), offset by an income tax benefit of $11 million. | ||||||||
Assets sold in the first nine months of 2013 primarily consisted of customer relationship intangibles of $31 million, allocated goodwill of $24 million, inventory of $20 million and fixed assets of $8 million related to the divested portions of the Bucyrus distribution business. | ||||||||
As of September 30, 2013, nine divestiture transactions were classified as held for sale and are expected to close in 2013 and 2014. Current assets held for sale were included in Prepaid expenses and other current assets and non-current assets held for sale were included in Other assets in the Consolidated Statement of Financial Position. | ||||||||
The major classes of assets held for sale for a portion of the Bucyrus distribution business were as follows: | ||||||||
(Millions of dollars) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Inventories | $ | 63 | $ | 30 | ||||
Current assets | $ | 63 | $ | 30 | ||||
Property, plant and equipment – net | $ | 3 | $ | — | ||||
Intangible assets | 101 | 32 | ||||||
Goodwill | 64 | 52 | ||||||
Non-current assets | $ | 168 | $ | 84 | ||||
Third Party Logistics Business Divestiture | ||||||||
On July 31, 2012 Platinum Equity acquired a 65 percent equity interest in Caterpillar Logistics Services LLC, the third party logistics division of our wholly owned subsidiary, Caterpillar Logistics Inc., for $567 million subject to certain working capital adjustments. The purchase price of $567 million was comprised of a $107 million equity contribution from Platinum Equity to, and third party debt raised by, Caterpillar Logistics Services LLC. The sale of the third party logistics business supports Caterpillar's increased focus on the continuing growth opportunities in its core businesses. Under the terms of the agreement, Caterpillar retained a 35 percent equity interest. | ||||||||
As a result of the divestiture, we recorded a pretax gain of $276 million (included in Other operating (income) expenses). In addition, we recognized $8 million of incremental incentive compensation expense. The fair value of our retained noncontrolling interest was $58 million, as determined by the $107 million equity contribution from Platinum Equity, and was included in Investments in unconsolidated affiliated companies in the Consolidated Statement of Financial Position. The disposal did not qualify as discontinued operations because Caterpillar has significant continuing involvement through its noncontrolling interest. The financial impact of the disposal was reported in the All Other operating segment. Results for our remaining interest are recorded in Equity in profit (loss) of unconsolidated affiliated companies and are reported in the All Other operating segment. | ||||||||
The controlling financial interest in Caterpillar Logistics Services LLC was not material to our results of operations, financial position or cash flow. |
Employee_Separation_Charges
Employee Separation Charges | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Employee separation charges [Abstract] | ' | ||||
Employee Separation Charges | ' | ||||
Employee Separation Charges | |||||
In 2012, we reported employee separation charges of $94 million in Other operating (income) expenses in the Consolidated Statement of Results of Operations primarily related to the closure of the Electro-Motive Diesel facility located in London, Ontario and separation programs in Europe. The majority of the charges were related to the Power Systems segment. | |||||
For the three and nine months ended September 30, 2013, we recognized employee separation charges of $34 million and $57 million, respectively, in Other operating (income) expenses in the Consolidated Statement of Results of Operations primarily related to separation programs in North America and Europe. The charges were related primarily to the Resource Industries and Construction Industries segments. | |||||
Our accounting for separations was dependent upon how the particular program was designed. For voluntary programs, eligible separation costs were recognized at the time of employee acceptance. For involuntary programs, eligible costs were recognized when management had approved the program, the affected employees had been properly notified and the costs were estimable. | |||||
The following table summarizes the 2012 and 2013 separation activity: | |||||
(Millions of dollars) | |||||
Total | |||||
Liability balance at December 31, 2011 | $ | 90 | |||
Increase in liability (separation charges) | 94 | ||||
Reduction in liability (payments and other adjustments) | (155 | ) | |||
Liability balance at December 31, 2012 | $ | 29 | |||
Increase in liability (separation charges) | 57 | ||||
Reduction in liability (payments and other adjustments) | (43 | ) | |||
Liability balance at September 30, 2013 | $ | 43 | |||
The remaining liability balances as of September 30, 2013 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 in 2013 and 2014. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Risk Management (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Risk Management Policy | ' |
Foreign Currency Exchange Rate Risk | |
Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. | |
Our Machinery and Power Systems operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to five years. | |
We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, euro, Indian rupee, Japanese yen, Mexican peso, Singapore dollar or Swiss franc forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. Designation is performed on a specific exposure basis to support hedge accounting. The remainder of Machinery and Power Systems foreign currency contracts are undesignated, including any hedges designed to protect our competitive exposure. | |
As of September 30, 2013, $15 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings (Other income (expense) in the Consolidated Statement of Results of Operations) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. | |
In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Substantially all such foreign currency forward, option and cross currency contracts are undesignated. | |
Interest Rate Risk | |
Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate derivatives to manage our exposure to interest rate changes and, in some cases, lower the cost of borrowed funds. | |
Our Machinery and Power Systems operations generally use fixed-rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate swaps and forward rate agreements to meet that objective with the intent to designate as fair value hedges at inception of the contract all fixed-to-floating interest rate swaps. Designation as a hedge of the fair value of our fixed-rate debt is performed to support hedge accounting. | |
Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate) of Cat Financial’s debt portfolio with the interest rate profile of their receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. | |
Our policy allows us to use fixed-to-floating, floating-to-fixed, and floating-to-floating interest rate swaps to meet the match-funding objective. We designate fixed-to-floating interest rate swaps as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate swaps as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. | |
As of September 30, 2013, $3 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. | |
We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery and Power Systems and Financial Products. The gains or losses associated with these swaps at the time of liquidation are amortized into earnings over the original term of the previously designated hedged item. | |
Commodity Price Risk | |
Commodity price movements create a degree of risk by affecting the price we must pay for certain raw material. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. | |
Our Machinery and Power Systems operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. | |
Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of type and fair value of the stock-based compensation awards granted during the period | ' | |||||||||||||
The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine month periods ended September 30, 2013 and 2012, respectively: | ||||||||||||||
2013 | 2012 | |||||||||||||
Shares Granted | Fair Value | Shares Granted | Fair Value | |||||||||||
Per Award | Per Award | |||||||||||||
Stock options | 4,276,060 | $ | 28.34 | 3,224,203 | $ | 39.2 | ||||||||
RSUs | 1,614,870 | $ | 84.05 | 1,429,939 | $ | 104.61 | ||||||||
Schedule providing assumptions used in determining the fair value of stock-based awards | ' | |||||||||||||
The following table provides the assumptions used in determining the fair value of the stock-based awards for the nine month periods ended September 30, 2013 and 2012, respectively: | ||||||||||||||
Grant Year | ||||||||||||||
2013 | 2012 | |||||||||||||
Weighted-average dividend yield | 2.13% | 2.16% | ||||||||||||
Weighted-average volatility | 30.60% | 35.00% | ||||||||||||
Range of volatilities | 23.4-40.6% | 33.3-40.4% | ||||||||||||
Range of risk-free interest rates | 0.16-1.88% | 0.17-2.00% | ||||||||||||
Weighted-average expected lives | 8 years | 7 years |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Risk Management (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position | ' | ||||||||||||||||||||||||
The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position are as follows: | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Consolidated Statement of Financial | Asset (Liability) Fair Value | ||||||||||||||||||||||||
Position Location | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Designated derivatives | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Receivables – trade and other | $ | 49 | $ | 28 | ||||||||||||||||||||
Machinery and Power Systems | Long-term receivables – trade and other | 1 | — | ||||||||||||||||||||||
Machinery and Power Systems | Accrued expenses | (24 | ) | (66 | ) | ||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Receivables – trade and other | 12 | 17 | ||||||||||||||||||||||
Financial Products | Long-term receivables – trade and other | 130 | 209 | ||||||||||||||||||||||
Financial Products | Accrued expenses | (6 | ) | (8 | ) | ||||||||||||||||||||
$ | 162 | $ | 180 | ||||||||||||||||||||||
Undesignated derivatives | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Receivables – trade and other | $ | 42 | $ | 31 | ||||||||||||||||||||
Machinery and Power Systems | Accrued expenses | (31 | ) | (63 | ) | ||||||||||||||||||||
Financial Products | Receivables – trade and other | 13 | 10 | ||||||||||||||||||||||
Financial Products | Long-term receivables – trade and other | 8 | — | ||||||||||||||||||||||
Financial Products | Accrued expenses | (7 | ) | (6 | ) | ||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Receivables – trade and other | — | 2 | ||||||||||||||||||||||
Financial Products | Accrued expenses | — | (1 | ) | |||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Receivables – trade and other | — | 1 | ||||||||||||||||||||||
Machinery and Power Systems | Accrued expenses | (1 | ) | — | |||||||||||||||||||||
$ | 24 | $ | (26 | ) | |||||||||||||||||||||
Effect of derivatives designated as hedging instruments on Consolidated Statement of Results of Operations | ' | ||||||||||||||||||||||||
The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: | |||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||
on Derivatives | on Borrowings | on Derivatives | on Borrowings | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (9 | ) | $ | 12 | $ | 7 | $ | (3 | ) | ||||||||||||||
$ | (9 | ) | $ | 12 | $ | 7 | $ | (3 | ) | ||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||
on Derivatives | on Borrowings | on Derivatives | on Borrowings | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (87 | ) | $ | 92 | $ | 4 | $ | 7 | |||||||||||||||
$ | (87 | ) | $ | 92 | $ | 4 | $ | 7 | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | 44 | Other income (expense) | $ | (12 | ) | $ | — | |||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Machinery and Power Systems | — | Other income (expense) | (1 | ) | — | ||||||||||||||||||||
Financial Products | (3 | ) | Interest expense of Financial Products | (1 | ) | — | |||||||||||||||||||
$ | 41 | $ | (14 | ) | $ | — | |||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | (6 | ) | Other income (expense) | $ | (14 | ) | $ | — | ||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Machinery and Power Systems | — | Other income (expense) | 1 | — | |||||||||||||||||||||
Financial Products | (6 | ) | Interest expense of Financial Products | (1 | ) | — | |||||||||||||||||||
$ | (12 | ) | $ | (14 | ) | $ | — | ||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | 4 | Other income (expense) | $ | (60 | ) | 2 | $ | — | ||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Machinery and Power Systems | — | Other income (expense) | (2 | ) | — | ||||||||||||||||||||
Financial Products | — | Interest expense of Financial Products | (4 | ) | — | ||||||||||||||||||||
$ | 4 | $ | (66 | ) | $ | — | |||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Earnings | |||||||||||||||||||||||||
Amount of Gains | Classification of | Amount of | Recognized | ||||||||||||||||||||||
(Losses) Recognized | Gains (Losses) | Gains (Losses) | in Earnings | ||||||||||||||||||||||
in AOCI | Reclassified | (Ineffective | |||||||||||||||||||||||
(Effective Portion) | from AOCI to | Portion) | |||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | $ | (48 | ) | Other income (expense) | $ | (13 | ) | $ | — | ||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | (8 | ) | Interest expense of Financial Products | (3 | ) | (1 | ) | 1 | |||||||||||||||||
$ | (56 | ) | $ | (16 | ) | $ | (1 | ) | |||||||||||||||||
1 | The ineffective portion recognized in earnings is included in Other income (expense). | ||||||||||||||||||||||||
2 | Includes $3 million loss reclassified from AOCI to Other income (expense) in 2013 as certain derivatives were dedesignated as the related transactions are no longer probable to occur. | ||||||||||||||||||||||||
Effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations | ' | ||||||||||||||||||||||||
The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
Classification of Gains (Losses) | Three Months Ended | Three Months Ended | |||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | $ | 15 | $ | (9 | ) | |||||||||||||||||||
Financial Products | Other income (expense) | 3 | 5 | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | (1 | ) | — | |||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | 2 | 3 | ||||||||||||||||||||||
$ | 19 | $ | (1 | ) | |||||||||||||||||||||
Classification of Gains (Losses) | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | $ | 7 | $ | 21 | ||||||||||||||||||||
Financial Products | Other income (expense) | 4 | 7 | ||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||
Financial Products | Other income (expense) | (1 | ) | — | |||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Machinery and Power Systems | Other income (expense) | (2 | ) | 3 | |||||||||||||||||||||
$ | 8 | $ | 31 | ||||||||||||||||||||||
Effect of net settlement provisions of the master netting agreements on derivative assets | ' | ||||||||||||||||||||||||
December 31, 2012 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount of Assets | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | 60 | $ | — | $ | 60 | $ | (59 | ) | $ | — | $ | 1 | ||||||||||||
Financial Products | 238 | — | 238 | (12 | ) | — | 226 | ||||||||||||||||||
Total | $ | 298 | $ | — | $ | 298 | $ | (71 | ) | $ | — | $ | 227 | ||||||||||||
The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event is as follows: | |||||||||||||||||||||||||
September 30, 2013 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount of Assets | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | 92 | $ | — | $ | 92 | $ | (52 | ) | $ | — | $ | 40 | ||||||||||||
Financial Products | 163 | — | 163 | (9 | ) | — | 154 | ||||||||||||||||||
Total | $ | 255 | $ | — | $ | 255 | $ | (61 | ) | $ | — | $ | 194 | ||||||||||||
Effect of net settlement provisions of the master netting agreements on derivative liabilities | ' | ||||||||||||||||||||||||
September 30, 2013 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount of Liabilities | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | (56 | ) | $ | — | $ | (56 | ) | $ | 52 | $ | — | $ | (4 | ) | ||||||||||
Financial Products | (13 | ) | — | (13 | ) | 9 | — | (4 | ) | ||||||||||||||||
Total | $ | (69 | ) | $ | — | $ | (69 | ) | $ | 61 | $ | — | $ | (8 | ) | ||||||||||
December 31, 2012 | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
(Millions of dollars) | Gross Amount of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amount of Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount of Liabilities | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Machinery & Power Systems | $ | (129 | ) | $ | — | $ | (129 | ) | $ | 59 | $ | — | $ | (70 | ) | ||||||||||
Financial Products | (15 | ) | — | (15 | ) | 12 | — | (3 | ) | ||||||||||||||||
Total | $ | (144 | ) | $ | — | $ | (144 | ) | $ | 71 | $ | — | $ | (73 | ) | ||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following: | ||||||||
(Millions of dollars) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Raw materials | $ | 3,138 | $ | 3,573 | ||||
Work-in-process | 2,749 | 2,920 | ||||||
Finished goods | 7,221 | 8,767 | ||||||
Supplies | 284 | 287 | ||||||
Total inventories | $ | 13,392 | $ | 15,547 | ||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Affiliated Companies (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Results of Operations of 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 | Nine Months Ended | ||||||||||||||
(Millions of dollars) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sales | $ | 349 | $ | 253 | $ | 916 | $ | 625 | ||||||||
Cost of sales | 284 | 206 | 722 | 492 | ||||||||||||
Gross profit | $ | 65 | $ | 47 | $ | 194 | $ | 133 | ||||||||
Profit (loss) | $ | (6 | ) | $ | 17 | $ | (31 | ) | $ | 39 | ||||||
Financial Position of unconsolidated affiliated companies | ' | |||||||||||||||
Financial Position of unconsolidated affiliated companies: | September 30, | December 31, | ||||||||||||||
(Millions of dollars) | 2013 | 2012 | ||||||||||||||
Assets: | ||||||||||||||||
Current assets | $ | 707 | $ | 715 | ||||||||||||
Property, plant and equipment – net | 714 | 529 | ||||||||||||||
Other assets | 498 | 616 | ||||||||||||||
1,919 | 1,860 | |||||||||||||||
Liabilities: | ||||||||||||||||
Current liabilities | 450 | 443 | ||||||||||||||
Long-term debt due after one year | 887 | 708 | ||||||||||||||
Other liabilities | 167 | 170 | ||||||||||||||
1,504 | 1,321 | |||||||||||||||
Equity | $ | 415 | $ | 539 | ||||||||||||
Caterpillar's investments in unconsolidated affiliated companies | ' | |||||||||||||||
Caterpillar’s investments in unconsolidated affiliated companies: | September 30, | December 31, | ||||||||||||||
(Millions of dollars) | 2013 | 2012 | ||||||||||||||
Investments in equity method companies | $ | 268 | $ | 256 | ||||||||||||
Plus: Investments in cost method companies | 10 | 16 | ||||||||||||||
Total investments in unconsolidated affiliated companies | $ | 278 | $ | 272 | ||||||||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Intangible assets | ' | ||||||||||||||||||||
Intangible assets are comprised of the following: | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
(Millions of dollars) | Weighted | Gross | Accumulated | Net | |||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||
Customer relationships | 15 | $ | 2,685 | $ | (497 | ) | $ | 2,188 | |||||||||||||
Intellectual property | 11 | 1,816 | (455 | ) | 1,361 | ||||||||||||||||
Other | 10 | 282 | (131 | ) | 151 | ||||||||||||||||
Total finite-lived intangible assets | 13 | 4,783 | (1,083 | ) | 3,700 | ||||||||||||||||
Indefinite-lived intangible assets - In-process research & development | 18 | — | 18 | ||||||||||||||||||
Total intangible assets | $ | 4,801 | $ | (1,083 | ) | $ | 3,718 | ||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||
Customer relationships | 15 | $ | 2,756 | $ | (377 | ) | $ | 2,379 | |||||||||||||
Intellectual property | 12 | 1,767 | (342 | ) | 1,425 | ||||||||||||||||
Other | 10 | 299 | (105 | ) | 194 | ||||||||||||||||
Total finite-lived intangible assets | 13 | 4,822 | (824 | ) | 3,998 | ||||||||||||||||
Indefinite-lived intangible assets - In-process research & development | 18 | — | 18 | ||||||||||||||||||
Total intangible assets | $ | 4,840 | $ | (824 | ) | $ | 4,016 | ||||||||||||||
Expected amortization expense related to intangible assets | ' | ||||||||||||||||||||
Amortization expense related to intangible assets is expected to be: | |||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | ||||||||||||||||
$369 | $374 | $372 | $360 | $358 | $2,161 | ||||||||||||||||
Goodwill | ' | ||||||||||||||||||||
The changes in the carrying amount of the goodwill by reportable segment for the nine months ended September 30, 2013 were as follows: | |||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||
December 31, | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Other Adjustments 3 | September 30, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
Construction Industries | |||||||||||||||||||||
Goodwill | $ | 382 | $ | — | $ | — | $ | (46 | ) | $ | 336 | ||||||||||
Resource Industries | |||||||||||||||||||||
Goodwill | 4,559 | — | (37 | ) | 1 | 4,523 | |||||||||||||||
Impairments | (602 | ) | — | — | — | (602 | ) | ||||||||||||||
Net goodwill | 3,957 | — | (37 | ) | 1 | 3,921 | |||||||||||||||
Power Systems | |||||||||||||||||||||
Goodwill | 2,486 | 109 | (10 | ) | 9 | 2,594 | |||||||||||||||
All Other 4 | |||||||||||||||||||||
Goodwill | 117 | — | — | — | 117 | ||||||||||||||||
Consolidated total | |||||||||||||||||||||
Goodwill | 7,544 | 109 | (47 | ) | (36 | ) | 7,570 | ||||||||||||||
Impairments | (602 | ) | — | — | — | (602 | ) | ||||||||||||||
Net goodwill | $ | 6,942 | $ | 109 | $ | (47 | ) | $ | (36 | ) | $ | 6,968 | |||||||||
1 See Note 19 for additional details. | |||||||||||||||||||||
2 See Note 20 for additional details. | |||||||||||||||||||||
3 Other adjustments are comprised primarily of foreign currency translation. | |||||||||||||||||||||
4 Includes All Other operating segment (See Note 15). |
AvailableForSale_Securities_Ta
Available-For-Sale Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Schedule of available-for-sale securities | ' | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Millions of dollars) | Cost | Unrealized Pretax Net Gains | Fair | Cost | Unrealized Pretax Net Gains | Fair | ||||||||||||||||||
Basis | (Losses) | Value | Basis | (Losses) | Value | |||||||||||||||||||
Government debt | ||||||||||||||||||||||||
U.S. treasury bonds | $ | 11 | $ | — | $ | 11 | $ | 10 | $ | — | $ | 10 | ||||||||||||
Other U.S. and non-U.S. government bonds | 125 | 1 | 126 | 144 | 2 | 146 | ||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||
Corporate bonds | 648 | 24 | 672 | 626 | 38 | 664 | ||||||||||||||||||
Asset-backed securities | 75 | — | 75 | 96 | — | 96 | ||||||||||||||||||
Mortgage-backed debt securities | ||||||||||||||||||||||||
U.S. governmental agency | 336 | 1 | 337 | 291 | 8 | 299 | ||||||||||||||||||
Residential | 21 | — | 21 | 26 | (1 | ) | 25 | |||||||||||||||||
Commercial | 87 | 6 | 93 | 117 | 10 | 127 | ||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Large capitalization value | 158 | 73 | 231 | 147 | 38 | 185 | ||||||||||||||||||
Smaller company growth | 22 | 23 | 45 | 22 | 12 | 34 | ||||||||||||||||||
Total | $ | 1,483 | $ | 128 | $ | 1,611 | $ | 1,479 | $ | 107 | $ | 1,586 | ||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | ' | |||||||||||||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||
(Millions of dollars) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||
Corporate bonds | $ | 174 | $ | 2 | $ | — | $ | — | $ | 174 | $ | 2 | ||||||||||||
Asset-backed securities | 4 | — | 20 | 2 | 24 | 2 | ||||||||||||||||||
Mortgage-backed debt securities | ||||||||||||||||||||||||
U.S. governmental agency | 145 | 4 | 56 | 1 | 201 | 5 | ||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Large capitalization value | 15 | 1 | 2 | — | 17 | 1 | ||||||||||||||||||
Total | $ | 338 | $ | 7 | $ | 78 | $ | 3 | $ | 416 | $ | 10 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||
(Millions of dollars) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | — | $ | 20 | $ | 3 | $ | 20 | $ | 3 | ||||||||||||
Mortgage-backed debt securities | ||||||||||||||||||||||||
U.S. governmental agency | 84 | 1 | 15 | — | 99 | 1 | ||||||||||||||||||
Residential | — | — | 14 | 1 | 14 | 1 | ||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Large capitalization value | 25 | 2 | 10 | 1 | 35 | 3 | ||||||||||||||||||
Total | $ | 109 | $ | 3 | $ | 59 | $ | 5 | $ | 168 | $ | 8 | ||||||||||||
1 Indicates length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||
Cost basis and fair value of the available-for-sale debt securities by contractual maturity | ' | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
(Millions of dollars) | Cost Basis | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 211 | $ | 214 | ||||||||||||||||||||
Due after one year through five years | 589 | 611 | ||||||||||||||||||||||
Due after five years through ten years | 28 | 29 | ||||||||||||||||||||||
Due after ten years | 31 | 30 | ||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | 336 | 337 | ||||||||||||||||||||||
Residential mortgage-backed securities | 21 | 21 | ||||||||||||||||||||||
Commercial mortgage-backed securities | 87 | 93 | ||||||||||||||||||||||
Total debt securities – available-for-sale | $ | 1,303 | $ | 1,335 | ||||||||||||||||||||
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities | ' | |||||||||||||||||||||||
Sales of Securities: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions of dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Proceeds from the sale of available-for-sale securities | $ | 90 | $ | 66 | $ | 297 | $ | 243 | ||||||||||||||||
Gross gains from the sale of available-for-sale securities | $ | 2 | $ | 1 | $ | 4 | $ | 4 | ||||||||||||||||
Gross losses from the sale of available-for-sale securities | $ | 1 | $ | — | $ | 2 | $ | — | ||||||||||||||||
Postretirement_Benefits_Tables
Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Components of net periodic cost and weighted-average assumptions used to determine net cost | ' | |||||||||||||||||||||||
U.S. Pension | Non-U.S. Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | Postretirement | ||||||||||||||||||||||
(Millions of dollars) | Benefits | |||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
For the three months ended: | ||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 49 | $ | 46 | $ | 31 | $ | 26 | $ | 24 | $ | 23 | ||||||||||||
Interest cost | 147 | 152 | 43 | 44 | 48 | 55 | ||||||||||||||||||
Expected return on plan assets | (208 | ) | (204 | ) | (59 | ) | (53 | ) | (14 | ) | (15 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | 1 | 1 | ||||||||||||||||||
Prior service cost (credit) 1 | 4 | 5 | — | 1 | (18 | ) | (18 | ) | ||||||||||||||||
Net actuarial loss (gain) 1 | 136 | 126 | 33 | 24 | 27 | 25 | ||||||||||||||||||
Net periodic benefit cost | 128 | 125 | 48 | 42 | 68 | 71 | ||||||||||||||||||
Adjustment for subsidiary pension plan 2 | 31 | — | — | — | — | — | ||||||||||||||||||
Curtailments, settlements and special termination benefits 3 | — | 7 | — | 6 | — | — | ||||||||||||||||||
Total cost included in operating profit | $ | 159 | $ | 132 | $ | 48 | $ | 48 | $ | 68 | $ | 71 | ||||||||||||
For the nine months ended: | ||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 147 | $ | 138 | $ | 93 | $ | 82 | $ | 79 | $ | 69 | ||||||||||||
Interest cost | 436 | 460 | 128 | 135 | 146 | 166 | ||||||||||||||||||
Expected return on plan assets | (624 | ) | (610 | ) | (176 | ) | (160 | ) | (42 | ) | (47 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | 2 | 2 | ||||||||||||||||||
Prior service cost (credit) 1 | 13 | 15 | 1 | 1 | (55 | ) | (51 | ) | ||||||||||||||||
Net actuarial loss (gain) 1 | 409 | 374 | 99 | 72 | 81 | 75 | ||||||||||||||||||
Net periodic benefit cost | 381 | 377 | 145 | 130 | 211 | 214 | ||||||||||||||||||
Adjustment for subsidiary pension plan 2 | 31 | — | — | — | — | — | ||||||||||||||||||
Curtailments, settlements and special termination benefits 3 | — | 7 | 3 | 28 | — | (40 | ) | |||||||||||||||||
Total cost included in operating profit | $ | 412 | $ | 384 | $ | 148 | $ | 158 | $ | 211 | $ | 174 | ||||||||||||
Weighted-average assumptions used to determine net cost: | ||||||||||||||||||||||||
Discount rate | 3.7 | % | 4.3 | % | 3.7 | % | 4.3 | % | 3.7 | % | 4.3 | % | ||||||||||||
Expected return on plan assets | 7.8 | % | 8 | % | 6.7 | % | 7.1 | % | 7.8 | % | 8 | % | ||||||||||||
Rate of compensation increase | 4.5 | % | 4.5 | % | 3.9 | % | 3.9 | % | 4.4 | % | 4.4 | % | ||||||||||||
1 | Prior service cost (credit) and net actuarial loss (gain) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period to the full retirement eligibility date of employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) and net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of those participants. | |||||||||||||||||||||||
2 | Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans. | |||||||||||||||||||||||
3 | Curtailments, settlements and special termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations. | |||||||||||||||||||||||
Company costs related to U.S. and non-U.S. defined contribution plans | ' | |||||||||||||||||||||||
Total company costs related to our defined contribution plans were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions of dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
U.S. Plans | $ | 74 | $ | 62 | $ | 218 | $ | 196 | ||||||||||||||||
Non-U.S. Plans | 16 | 15 | 47 | 46 | ||||||||||||||||||||
$ | 90 | $ | 77 | $ | 265 | $ | 242 | |||||||||||||||||
Guarantees_and_Product_Warrant1
Guarantees and Product Warranty (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Guarantees | ' | |||||||
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) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Caterpillar dealer guarantees | $ | 201 | $ | 180 | ||||
Customer guarantees | 53 | 77 | ||||||
Customer guarantees – supplier consortium | 359 | — | ||||||
Third party logistics business guarantees | 156 | 176 | ||||||
Other guarantees | 35 | 53 | ||||||
Total guarantees | $ | 804 | $ | 486 | ||||
Product warranty | ' | |||||||
(Millions of dollars) | 2013 | |||||||
Warranty liability, January 1 | $ | 1,477 | ||||||
Reduction in liability (payments) | (677 | ) | ||||||
Increase in liability (new warranties) | 570 | |||||||
Warranty liability, September 30 | $ | 1,370 | ||||||
(Millions of dollars) | 2012 | |||||||
Warranty liability, January 1 | $ | 1,308 | ||||||
Reduction in liability (payments) | (920 | ) | ||||||
Increase in liability (new warranties) | 1,089 | |||||||
Warranty liability, December 31 | $ | 1,477 | ||||||
Profit_Per_Share_Tables
Profit Per Share (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||
Computations of profit per share | ' | |||||||||||||||||
Computations of profit per share: | Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Dollars in millions except per share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Profit for the period (A) 1: | $ | 946 | $ | 1,699 | $ | 2,786 | $ | 4,984 | ||||||||||
Determination of shares (in millions): | ||||||||||||||||||
Weighted-average number of common shares outstanding (B) | 639.3 | 653.6 | 647.6 | 652 | ||||||||||||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price | 12.6 | 15.1 | 13.7 | 17.7 | ||||||||||||||
Average common shares outstanding for fully diluted computation (C) 2 | 651.9 | 668.7 | 661.3 | 669.7 | ||||||||||||||
Profit per share of common stock: | ||||||||||||||||||
Assuming no dilution (A/B) | $ | 1.48 | $ | 2.6 | $ | 4.3 | $ | 7.64 | ||||||||||
Assuming full dilution (A/C) 2 | $ | 1.45 | $ | 2.54 | $ | 4.21 | $ | 7.44 | ||||||||||
Shares outstanding as of September 30 (in millions) | 636.4 | 653.9 | ||||||||||||||||
1 | Profit attributable to common stockholders. | |||||||||||||||||
2 | Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accumulated other comprehensive income (loss) [Abstract] | ' | ||||||||||||||||||||
Changes in Accumulated other comprehensive income (loss), net of tax | ' | ||||||||||||||||||||
Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Stockholders’ Equity, consisted of the following: | |||||||||||||||||||||
(Millions of dollars) | Foreign currency translation | Pension and other postretirement benefits | Derivative financial instruments | Available-for-sale securities | Total | ||||||||||||||||
Balance at September 30, 2012 1 | $ | 432 | $ | (6,454 | ) | $ | (35 | ) | $ | 69 | $ | (5,988 | ) | ||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||
Balance at June 30, 2013 | $ | (92 | ) | $ | (6,645 | ) | $ | (33 | ) | $ | 72 | $ | (6,698 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 291 | (3 | ) | 26 | 9 | 323 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 120 | 9 | (1 | ) | 128 | |||||||||||||||
Other comprehensive income (loss) | 291 | 117 | 35 | 8 | 451 | ||||||||||||||||
Balance at September 30, 2013 | $ | 199 | $ | (6,528 | ) | $ | 2 | $ | 80 | $ | (6,247 | ) | |||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 456 | $ | (6,914 | ) | $ | (42 | ) | $ | 67 | $ | (6,433 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (257 | ) | 24 | 2 | 14 | (217 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 362 | 42 | (1 | ) | 403 | |||||||||||||||
Other comprehensive income (loss) | (257 | ) | 386 | 44 | 13 | 186 | |||||||||||||||
Balance at September 30, 2013 | $ | 199 | $ | (6,528 | ) | $ | 2 | $ | 80 | $ | (6,247 | ) | |||||||||
1 | In conjunction with the Cat Japan share redemption, to reflect the increase in our ownership interest in Cat Japan from 67 percent to 100 percent, $107 million was reclassified to Accumulated other comprehensive income (loss) from other components of stockholders' equity and was not included in Comprehensive income during the second quarter of 2012. The amount was comprised of foreign currency translation of $167 million, pension and other postretirement benefits of $(61) million and available-for-sale securities of $1 million. | ||||||||||||||||||||
Reclassifications out of Accumulated other comprehensive income (loss) | ' | ||||||||||||||||||||
The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations is as follows: | |||||||||||||||||||||
(Millions of dollars) | Classification of | Three Months Ended | Nine Months Ended | ||||||||||||||||||
income (expense) | 30-Sep-13 | 30-Sep-13 | |||||||||||||||||||
Pension and other postretirement benefits: | |||||||||||||||||||||
Amortization of actuarial gain (loss) | Note 9 1 | $ | (196 | ) | $ | (589 | ) | ||||||||||||||
Amortization of prior service credit (cost) | Note 9 1 | 14 | 41 | ||||||||||||||||||
Amortization of transition asset (obligation) | Note 9 1 | (1 | ) | (2 | ) | ||||||||||||||||
Reclassifications before tax | (183 | ) | (550 | ) | |||||||||||||||||
Tax (provision) benefit | 63 | 188 | |||||||||||||||||||
Reclassifications net of tax | $ | (120 | ) | $ | (362 | ) | |||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||
Foreign exchange contracts | Other income (expense) | $ | (12 | ) | $ | (60 | ) | ||||||||||||||
Interest rate contracts | Other income (expense) | (1 | ) | (2 | ) | ||||||||||||||||
Interest rate contracts | Interest expense of Financial Products | (1 | ) | (4 | ) | ||||||||||||||||
Reclassifications before tax | (14 | ) | (66 | ) | |||||||||||||||||
Tax (provision) benefit | 5 | 24 | |||||||||||||||||||
Reclassifications net of tax | $ | (9 | ) | $ | (42 | ) | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Realized gain (loss) | Other income (expense) | $ | 1 | $ | 1 | ||||||||||||||||
Tax (provision) benefit | — | — | |||||||||||||||||||
Reclassifications net of tax | $ | 1 | $ | 1 | |||||||||||||||||
Total reclassifications from Accumulated other comprehensive income (loss) | $ | (128 | ) | $ | (403 | ) | |||||||||||||||
1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Reportable Segments | ' | |||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | 30-Sep | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 4,547 | $ | 68 | $ | 4,615 | $ | 145 | $ | 262 | $ | 8,489 | $ | 143 | ||||||||||||||
Resource Industries | 3,004 | 208 | 3,212 | 192 | 409 | 11,703 | 106 | |||||||||||||||||||||
Power Systems | 4,922 | 471 | 5,393 | 161 | 883 | 9,013 | 125 | |||||||||||||||||||||
Machinery and Power Systems | $ | 12,473 | $ | 747 | $ | 13,220 | $ | 498 | $ | 1,554 | $ | 29,205 | $ | 374 | ||||||||||||||
Financial Products Segment | 807 | — | 807 | 203 | 218 | 37,239 | 473 | |||||||||||||||||||||
Total | $ | 13,280 | $ | 747 | $ | 14,027 | $ | 701 | $ | 1,772 | $ | 66,444 | $ | 847 | ||||||||||||||
2012 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | December 31 | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 4,904 | $ | 102 | $ | 5,006 | $ | 144 | $ | 459 | $ | 10,393 | $ | 247 | ||||||||||||||
Resource Industries | 5,214 | 253 | 5,467 | 179 | 1,113 | 13,455 | 229 | |||||||||||||||||||||
Power Systems | 5,317 | 597 | 5,914 | 157 | 943 | 9,323 | 244 | |||||||||||||||||||||
Machinery and Power Systems | $ | 15,435 | $ | 952 | $ | 16,387 | $ | 480 | $ | 2,515 | $ | 33,171 | $ | 720 | ||||||||||||||
Financial Products Segment | 776 | — | 776 | 179 | 190 | 36,563 | 432 | |||||||||||||||||||||
Total | $ | 16,211 | $ | 952 | $ | 17,163 | $ | 659 | $ | 2,705 | $ | 69,734 | $ | 1,152 | ||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | 30-Sep | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 13,594 | $ | 262 | $ | 13,856 | $ | 426 | $ | 863 | $ | 8,489 | $ | 403 | ||||||||||||||
Resource Industries | 10,251 | 661 | 10,912 | 558 | 1,436 | 11,703 | 358 | |||||||||||||||||||||
Power Systems | 14,590 | 1,328 | 15,918 | 468 | 2,436 | 9,013 | 390 | |||||||||||||||||||||
Machinery and Power Systems | $ | 38,435 | $ | 2,251 | $ | 40,686 | $ | 1,452 | $ | 4,735 | $ | 29,205 | $ | 1,151 | ||||||||||||||
Financial Products Segment | 2,408 | — | 2,408 | 571 | 724 | 37,239 | 1,244 | |||||||||||||||||||||
Total | $ | 40,843 | $ | 2,251 | $ | 43,094 | $ | 2,023 | $ | 5,459 | $ | 66,444 | $ | 2,395 | ||||||||||||||
2012 | ||||||||||||||||||||||||||||
External | Inter- | Total sales | Depreciation | Segment | Segment | Capital | ||||||||||||||||||||||
sales and | segment | and | and | profit | assets at | expenditures | ||||||||||||||||||||||
revenues | sales and | revenues | amortization | December 31 | ||||||||||||||||||||||||
revenues | ||||||||||||||||||||||||||||
Construction Industries | $ | 15,306 | $ | 355 | $ | 15,661 | $ | 414 | $ | 1,763 | $ | 10,393 | $ | 597 | ||||||||||||||
Resource Industries | 15,382 | 909 | 16,291 | 510 | 3,707 | 13,455 | 603 | |||||||||||||||||||||
Power Systems | 15,815 | 1,952 | 17,767 | 442 | 2,737 | 9,323 | 610 | |||||||||||||||||||||
Machinery and Power Systems | $ | 46,503 | $ | 3,216 | $ | 49,719 | $ | 1,366 | $ | 8,207 | $ | 33,171 | $ | 1,810 | ||||||||||||||
Financial Products Segment | 2,301 | — | 2,301 | 530 | 583 | 36,563 | 1,232 | |||||||||||||||||||||
Total | $ | 48,804 | $ | 3,216 | $ | 52,020 | $ | 1,896 | $ | 8,790 | $ | 69,734 | $ | 3,042 | ||||||||||||||
Reconciliation of Sales and revenues: | ' | |||||||||||||||||||||||||||
Reconciliation of Sales and revenues: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 12,473 | $ | 807 | $ | — | $ | 13,280 | ||||||||||||||||||||
All Other operating segment | 219 | — | — | 219 | ||||||||||||||||||||||||
Other | (14 | ) | 18 | (80 | ) | 1 | (76 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 12,678 | $ | 825 | $ | (80 | ) | $ | 13,423 | |||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 15,435 | $ | 776 | $ | — | $ | 16,211 | ||||||||||||||||||||
All Other operating segment | 318 | — | — | 318 | ||||||||||||||||||||||||
Other | (14 | ) | 20 | (90 | ) | 1 | (84 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 15,739 | $ | 796 | $ | (90 | ) | $ | 16,445 | |||||||||||||||||||
1 Elimination of Financial Products revenues from Machinery and Power Systems. | ||||||||||||||||||||||||||||
Reconciliation of Sales and revenues: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 38,435 | $ | 2,408 | $ | — | $ | 40,843 | ||||||||||||||||||||
All Other operating segment | 647 | — | — | 647 | ||||||||||||||||||||||||
Other | (34 | ) | 54 | (256 | ) | 1 | (236 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 39,048 | $ | 2,462 | $ | (256 | ) | $ | 41,254 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 46,503 | $ | 2,301 | $ | — | $ | 48,804 | ||||||||||||||||||||
All Other operating segment | 1,246 | — | — | 1,246 | ||||||||||||||||||||||||
Other | (38 | ) | 52 | (264 | ) | 1 | (250 | ) | ||||||||||||||||||||
Total sales and revenues | $ | 47,711 | $ | 2,353 | $ | (264 | ) | $ | 49,800 | |||||||||||||||||||
1 Elimination of Financial Products revenues from Machinery and Power Systems. | ||||||||||||||||||||||||||||
Reconciliation of Consolidated profit before taxes: | ' | |||||||||||||||||||||||||||
Reconciliation of Consolidated profit before taxes: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 1,554 | $ | 218 | $ | 1,772 | ||||||||||||||||||||||
All Other operating segment | 170 | — | 170 | |||||||||||||||||||||||||
Cost centers | 42 | — | 42 | |||||||||||||||||||||||||
Corporate costs | (376 | ) | — | (376 | ) | |||||||||||||||||||||||
Timing | 77 | — | 77 | |||||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | (36 | ) | — | (36 | ) | |||||||||||||||||||||||
Postretirement benefit expense | (174 | ) | — | (174 | ) | |||||||||||||||||||||||
Financing costs | (120 | ) | — | (120 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | 1 | — | 1 | |||||||||||||||||||||||||
Currency | (32 | ) | — | (32 | ) | |||||||||||||||||||||||
Other income/expense methodology differences | (58 | ) | — | (58 | ) | |||||||||||||||||||||||
Other methodology differences | (1 | ) | (4 | ) | (5 | ) | ||||||||||||||||||||||
Total consolidated profit before taxes | $ | 1,047 | $ | 214 | $ | 1,261 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 2,515 | $ | 190 | $ | 2,705 | ||||||||||||||||||||||
All Other operating segment | 482 | — | 482 | |||||||||||||||||||||||||
Cost centers | 9 | — | 9 | |||||||||||||||||||||||||
Corporate costs | (366 | ) | — | (366 | ) | |||||||||||||||||||||||
Timing | (30 | ) | — | (30 | ) | |||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | 9 | — | 9 | |||||||||||||||||||||||||
Postretirement benefit expense | (177 | ) | — | (177 | ) | |||||||||||||||||||||||
Financing costs | (130 | ) | — | (130 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (5 | ) | — | (5 | ) | |||||||||||||||||||||||
Currency | 20 | — | 20 | |||||||||||||||||||||||||
Interest rate swaps | 2 | — | 2 | |||||||||||||||||||||||||
Other income/expense methodology differences | (64 | ) | — | (64 | ) | |||||||||||||||||||||||
Other methodology differences | (9 | ) | 4 | (5 | ) | |||||||||||||||||||||||
Total consolidated profit before taxes | $ | 2,256 | $ | 194 | $ | 2,450 | ||||||||||||||||||||||
Reconciliation of Consolidated profit before taxes: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 4,735 | $ | 724 | $ | 5,459 | ||||||||||||||||||||||
All Other operating segment | 547 | — | 547 | |||||||||||||||||||||||||
Cost centers | 100 | — | 100 | |||||||||||||||||||||||||
Corporate costs | (1,160 | ) | — | (1,160 | ) | |||||||||||||||||||||||
Timing | 58 | — | 58 | |||||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | (139 | ) | — | (139 | ) | |||||||||||||||||||||||
Postretirement benefit expense | (505 | ) | — | (505 | ) | |||||||||||||||||||||||
Financing costs | (361 | ) | — | (361 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | 1 | — | 1 | |||||||||||||||||||||||||
Currency | (71 | ) | — | (71 | ) | |||||||||||||||||||||||
Other income/expense methodology differences | (178 | ) | — | (178 | ) | |||||||||||||||||||||||
Other methodology differences | (20 | ) | 10 | (10 | ) | |||||||||||||||||||||||
Total consolidated profit before taxes | $ | 3,007 | $ | 734 | $ | 3,741 | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 8,207 | $ | 583 | $ | 8,790 | ||||||||||||||||||||||
All Other operating segment | 888 | — | 888 | |||||||||||||||||||||||||
Cost centers | 32 | — | 32 | |||||||||||||||||||||||||
Corporate costs | (1,126 | ) | — | (1,126 | ) | |||||||||||||||||||||||
Timing | (318 | ) | — | (318 | ) | |||||||||||||||||||||||
Methodology differences: | ||||||||||||||||||||||||||||
Inventory/cost of sales | (26 | ) | — | (26 | ) | |||||||||||||||||||||||
Postretirement benefit expense | (508 | ) | — | (508 | ) | |||||||||||||||||||||||
Financing costs | (357 | ) | — | (357 | ) | |||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (12 | ) | — | (12 | ) | |||||||||||||||||||||||
Currency | 160 | — | 160 | |||||||||||||||||||||||||
Interest rate swaps | 2 | — | 2 | |||||||||||||||||||||||||
Other income/expense methodology differences | (199 | ) | — | (199 | ) | |||||||||||||||||||||||
Other methodology differences | (3 | ) | 1 | (2 | ) | |||||||||||||||||||||||
Total consolidated profit before taxes | $ | 6,740 | $ | 584 | $ | 7,324 | ||||||||||||||||||||||
Reconciliation of Assets: | ' | |||||||||||||||||||||||||||
Reconciliation of Assets: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 29,205 | $ | 37,239 | $ | — | $ | 66,444 | ||||||||||||||||||||
All Other operating segment | 1,442 | — | — | 1,442 | ||||||||||||||||||||||||
Items not included in segment assets: | ||||||||||||||||||||||||||||
Cash and short-term investments | 4,108 | — | — | 4,108 | ||||||||||||||||||||||||
Intercompany receivables | 243 | — | (243 | ) | — | |||||||||||||||||||||||
Investment in Financial Products | 4,769 | — | (4,769 | ) | — | |||||||||||||||||||||||
Deferred income taxes | 3,883 | — | (490 | ) | 3,393 | |||||||||||||||||||||||
Goodwill and intangible assets | 3,567 | — | — | 3,567 | ||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 1,057 | — | — | 1,057 | ||||||||||||||||||||||||
Operating lease methodology difference | (287 | ) | — | — | (287 | ) | ||||||||||||||||||||||
Liabilities included in segment assets | 10,504 | — | — | 10,504 | ||||||||||||||||||||||||
Inventory methodology differences | (2,610 | ) | — | — | (2,610 | ) | ||||||||||||||||||||||
Other | (132 | ) | (151 | ) | (63 | ) | (346 | ) | ||||||||||||||||||||
Total assets | $ | 55,749 | $ | 37,088 | $ | (5,565 | ) | $ | 87,272 | |||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 33,171 | $ | 36,563 | $ | — | $ | 69,734 | ||||||||||||||||||||
All Other operating segment | 1,499 | — | — | 1,499 | ||||||||||||||||||||||||
Items not included in segment assets: | ||||||||||||||||||||||||||||
Cash and short-term investments | 3,306 | — | — | 3,306 | ||||||||||||||||||||||||
Intercompany receivables | 303 | — | (303 | ) | — | |||||||||||||||||||||||
Investment in Financial Products | 4,433 | — | (4,433 | ) | — | |||||||||||||||||||||||
Deferred income taxes | 3,926 | — | (516 | ) | 3,410 | |||||||||||||||||||||||
Goodwill and intangible assets | 3,145 | — | — | 3,145 | ||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 668 | — | — | 668 | ||||||||||||||||||||||||
Operating lease methodology difference | (329 | ) | — | — | (329 | ) | ||||||||||||||||||||||
Liabilities included in segment assets | 11,293 | — | — | 11,293 | ||||||||||||||||||||||||
Inventory methodology differences | (2,949 | ) | — | — | (2,949 | ) | ||||||||||||||||||||||
Other | (182 | ) | (107 | ) | (132 | ) | (421 | ) | ||||||||||||||||||||
Total assets | $ | 58,284 | $ | 36,456 | $ | (5,384 | ) | $ | 89,356 | |||||||||||||||||||
Reconciliation of Depreciation and amortization: | ' | |||||||||||||||||||||||||||
Reconciliations of Depreciation and amortization: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 498 | $ | 203 | $ | 701 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 43 | — | 43 | |||||||||||||||||||||||||
Cost centers | 36 | — | 36 | |||||||||||||||||||||||||
Other | (7 | ) | 6 | (1 | ) | |||||||||||||||||||||||
Total depreciation and amortization | $ | 570 | $ | 209 | $ | 779 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 480 | $ | 179 | $ | 659 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 41 | — | 41 | |||||||||||||||||||||||||
Cost centers | 23 | — | 23 | |||||||||||||||||||||||||
Other | (9 | ) | 6 | (3 | ) | |||||||||||||||||||||||
Total depreciation and amortization | $ | 535 | $ | 185 | $ | 720 | ||||||||||||||||||||||
Reconciliations of Depreciation and amortization: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidated | |||||||||||||||||||||||||
and Power | Products | Total | ||||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,452 | $ | 571 | $ | 2,023 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 127 | — | 127 | |||||||||||||||||||||||||
Cost centers | 104 | — | 104 | |||||||||||||||||||||||||
Other | (9 | ) | 18 | 9 | ||||||||||||||||||||||||
Total depreciation and amortization | $ | 1,674 | $ | 589 | $ | 2,263 | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,366 | $ | 530 | $ | 1,896 | ||||||||||||||||||||||
Items not included in segment depreciation and amortization: | ||||||||||||||||||||||||||||
All Other operating segment | 125 | — | 125 | |||||||||||||||||||||||||
Cost centers | 64 | — | 64 | |||||||||||||||||||||||||
Other | (32 | ) | 17 | (15 | ) | |||||||||||||||||||||||
Total depreciation and amortization | $ | 1,523 | $ | 547 | $ | 2,070 | ||||||||||||||||||||||
Reconciliation of Capital expenditures: | ' | |||||||||||||||||||||||||||
Reconciliations of Capital expenditures: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 374 | $ | 473 | $ | — | $ | 847 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 88 | — | — | 88 | ||||||||||||||||||||||||
Cost centers | 41 | — | — | 41 | ||||||||||||||||||||||||
Timing | 5 | — | — | 5 | ||||||||||||||||||||||||
Other | (18 | ) | 18 | (15 | ) | (15 | ) | |||||||||||||||||||||
Total capital expenditures | $ | 490 | $ | 491 | $ | (15 | ) | $ | 966 | |||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 720 | $ | 432 | $ | — | $ | 1,152 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 75 | — | — | 75 | ||||||||||||||||||||||||
Cost centers | 16 | — | — | 16 | ||||||||||||||||||||||||
Timing | (40 | ) | — | — | (40 | ) | ||||||||||||||||||||||
Other | 8 | 35 | (15 | ) | 28 | |||||||||||||||||||||||
Total capital expenditures | $ | 779 | $ | 467 | $ | (15 | ) | $ | 1,231 | |||||||||||||||||||
Reconciliations of Capital expenditures: | ||||||||||||||||||||||||||||
(Millions of dollars) | Machinery | Financial | Consolidating | Consolidated | ||||||||||||||||||||||||
and Power | Products | Adjustments | Total | |||||||||||||||||||||||||
Systems | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,151 | $ | 1,244 | $ | — | $ | 2,395 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 200 | — | — | 200 | ||||||||||||||||||||||||
Cost centers | 115 | — | — | 115 | ||||||||||||||||||||||||
Timing | 531 | — | — | 531 | ||||||||||||||||||||||||
Other | (94 | ) | 66 | (50 | ) | (78 | ) | |||||||||||||||||||||
Total capital expenditures | $ | 1,903 | $ | 1,310 | $ | (50 | ) | $ | 3,163 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,810 | $ | 1,232 | $ | — | $ | 3,042 | ||||||||||||||||||||
Items not included in segment capital expenditures: | ||||||||||||||||||||||||||||
All Other operating segment | 229 | — | — | 229 | ||||||||||||||||||||||||
Cost centers | 119 | — | — | 119 | ||||||||||||||||||||||||
Timing | 281 | — | — | 281 | ||||||||||||||||||||||||
Other | (115 | ) | 109 | (139 | ) | (145 | ) | |||||||||||||||||||||
Total capital expenditures | $ | 2,324 | $ | 1,341 | $ | (139 | ) | $ | 3,526 | |||||||||||||||||||
Cat_Financial_Financing_Activi1
Cat Financial Financing Activities (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Impaired loans and finance leases | ' | |||||||||||||||||||||||||||
Individually impaired loans and finance leases for the Customer portfolio segment were as follows: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | |||||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 20 | $ | 19 | $ | — | $ | 28 | $ | 27 | $ | — | ||||||||||||||||
Europe | 53 | 52 | — | 45 | 45 | — | ||||||||||||||||||||||
Asia Pacific | 2 | 2 | — | 2 | 2 | — | ||||||||||||||||||||||
Mining | 127 | 127 | — | 1 | 1 | — | ||||||||||||||||||||||
Latin America | 16 | 16 | — | 7 | 7 | — | ||||||||||||||||||||||
Caterpillar Power Finance | 305 | 304 | — | 295 | 295 | — | ||||||||||||||||||||||
Total | $ | 523 | $ | 520 | $ | — | $ | 378 | $ | 377 | $ | — | ||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 16 | $ | 14 | $ | 4 | $ | 25 | $ | 23 | $ | 7 | ||||||||||||||||
Europe | 19 | 15 | 7 | 28 | 26 | 11 | ||||||||||||||||||||||
Asia Pacific | 22 | 22 | 6 | 19 | 19 | 4 | ||||||||||||||||||||||
Mining | — | — | — | — | — | — | ||||||||||||||||||||||
Latin America | 62 | 62 | 18 | 30 | 30 | 8 | ||||||||||||||||||||||
Caterpillar Power Finance | 94 | 89 | 25 | 113 | 109 | 24 | ||||||||||||||||||||||
Total | $ | 213 | $ | 202 | $ | 60 | $ | 215 | $ | 207 | $ | 54 | ||||||||||||||||
Total Impaired Loans and Finance Leases | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 36 | $ | 33 | $ | 4 | $ | 53 | $ | 50 | $ | 7 | ||||||||||||||||
Europe | 72 | 67 | 7 | 73 | 71 | 11 | ||||||||||||||||||||||
Asia Pacific | 24 | 24 | 6 | 21 | 21 | 4 | ||||||||||||||||||||||
Mining | 127 | 127 | — | 1 | 1 | — | ||||||||||||||||||||||
Latin America | 78 | 78 | 18 | 37 | 37 | 8 | ||||||||||||||||||||||
Caterpillar Power Finance | 399 | 393 | 25 | 408 | 404 | 24 | ||||||||||||||||||||||
Total | $ | 736 | $ | 722 | $ | 60 | $ | 593 | $ | 584 | $ | 54 | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||||||
(Millions of dollars) | Average Recorded | Interest Income | Average Recorded | Interest Income | ||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 23 | $ | — | $ | 41 | $ | 1 | ||||||||||||||||||||
Europe | 52 | — | 45 | — | ||||||||||||||||||||||||
Asia Pacific | 3 | — | 3 | — | ||||||||||||||||||||||||
Mining | 96 | 2 | 9 | 1 | ||||||||||||||||||||||||
Latin America | 14 | — | 6 | — | ||||||||||||||||||||||||
Caterpillar Power Finance | 280 | 1 | 219 | — | ||||||||||||||||||||||||
Total | $ | 468 | $ | 3 | $ | 323 | $ | 2 | ||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 14 | $ | — | $ | 25 | $ | — | ||||||||||||||||||||
Europe | 21 | — | 27 | 1 | ||||||||||||||||||||||||
Asia Pacific | 18 | — | 15 | — | ||||||||||||||||||||||||
Mining | — | — | — | — | ||||||||||||||||||||||||
Latin America | 53 | 1 | 37 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 156 | 1 | 106 | — | ||||||||||||||||||||||||
Total | $ | 262 | $ | 2 | $ | 210 | $ | 2 | ||||||||||||||||||||
Total Impaired Loans and Finance Leases | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 37 | $ | — | $ | 66 | $ | 1 | ||||||||||||||||||||
Europe | 73 | — | 72 | 1 | ||||||||||||||||||||||||
Asia Pacific | 21 | — | 18 | — | ||||||||||||||||||||||||
Mining | 96 | 2 | 9 | 1 | ||||||||||||||||||||||||
Latin America | 67 | 1 | 43 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 436 | 2 | 325 | — | ||||||||||||||||||||||||
Total | $ | 730 | $ | 5 | $ | 533 | $ | 4 | ||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||||||
(Millions of dollars) | Average Recorded | Interest Income | Average Recorded | Interest Income | ||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 26 | $ | 3 | $ | 56 | $ | 2 | ||||||||||||||||||||
Europe | 48 | — | 45 | — | ||||||||||||||||||||||||
Asia Pacific | 4 | — | 4 | — | ||||||||||||||||||||||||
Mining | 40 | 2 | 8 | 1 | ||||||||||||||||||||||||
Latin America | 11 | — | 6 | — | ||||||||||||||||||||||||
Caterpillar Power Finance | 285 | 2 | 204 | 2 | ||||||||||||||||||||||||
Total | $ | 414 | $ | 7 | $ | 323 | $ | 5 | ||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 18 | $ | — | $ | 25 | $ | — | ||||||||||||||||||||
Europe | 23 | 1 | 26 | 1 | ||||||||||||||||||||||||
Asia Pacific | 18 | 1 | 13 | 1 | ||||||||||||||||||||||||
Mining | 1 | — | — | — | ||||||||||||||||||||||||
Latin America | 44 | 2 | 26 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 143 | 1 | 87 | — | ||||||||||||||||||||||||
Total | $ | 247 | $ | 5 | $ | 177 | $ | 3 | ||||||||||||||||||||
Total Impaired Loans and Finance Leases | ||||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 44 | $ | 3 | $ | 81 | $ | 2 | ||||||||||||||||||||
Europe | 71 | 1 | 71 | 1 | ||||||||||||||||||||||||
Asia Pacific | 22 | 1 | 17 | 1 | ||||||||||||||||||||||||
Mining | 41 | 2 | 8 | 1 | ||||||||||||||||||||||||
Latin America | 55 | 2 | 32 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 428 | 3 | 291 | 2 | ||||||||||||||||||||||||
Total | $ | 661 | $ | 12 | $ | 500 | $ | 8 | ||||||||||||||||||||
Investment in loans and finance leases on non-accrual status | ' | |||||||||||||||||||||||||||
The investment in customer loans and finance leases on non-accrual status was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 39 | $ | 59 | ||||||||||||||||||||||||
Europe | 41 | 38 | ||||||||||||||||||||||||||
Asia Pacific | 51 | 36 | ||||||||||||||||||||||||||
Mining | 31 | 12 | ||||||||||||||||||||||||||
Latin America | 194 | 148 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 141 | 220 | ||||||||||||||||||||||||||
Total | $ | 497 | $ | 513 | ||||||||||||||||||||||||
Aging related to loans and finance leases | ' | |||||||||||||||||||||||||||
Aging related to loans and finance leases was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
31-60 | 61-90 | 91+ | Total Past | Current | Total | 91+ Still | ||||||||||||||||||||||
Days | Days | Days | Due | Finance | Accruing | |||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivables | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 33 | $ | 9 | $ | 29 | $ | 71 | $ | 6,256 | $ | 6,327 | $ | — | ||||||||||||||
Europe | 32 | 16 | 36 | 84 | 2,682 | 2,766 | 8 | |||||||||||||||||||||
Asia Pacific | 65 | 42 | 60 | 167 | 2,826 | 2,993 | 16 | |||||||||||||||||||||
Mining | — | — | 12 | 12 | 2,281 | 2,293 | — | |||||||||||||||||||||
Latin America | 63 | 34 | 189 | 286 | 2,491 | 2,777 | 5 | |||||||||||||||||||||
Caterpillar Power Finance | 7 | 18 | 69 | 94 | 3,025 | 3,119 | 1 | |||||||||||||||||||||
Dealer | ||||||||||||||||||||||||||||
North America | — | — | — | — | 2,349 | 2,349 | — | |||||||||||||||||||||
Europe | — | — | — | — | 176 | 176 | — | |||||||||||||||||||||
Asia Pacific | — | — | — | — | 565 | 565 | — | |||||||||||||||||||||
Mining | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||
Latin America | — | — | 1 | 1 | 778 | 779 | 1 | |||||||||||||||||||||
Total | $ | 200 | $ | 119 | $ | 396 | $ | 715 | $ | 23,430 | $ | 24,145 | $ | 31 | ||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
31-60 | 61-90 | 91+ | Total Past | Current | Total | 91+ Still | ||||||||||||||||||||||
Days | Days | Days | Due | Finance | Accruing | |||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivables | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | $ | 35 | $ | 8 | $ | 52 | $ | 95 | $ | 5,872 | $ | 5,967 | $ | — | ||||||||||||||
Europe | 23 | 9 | 36 | 68 | 2,487 | 2,555 | 6 | |||||||||||||||||||||
Asia Pacific | 53 | 19 | 54 | 126 | 2,912 | 3,038 | 18 | |||||||||||||||||||||
Mining | — | 1 | 12 | 13 | 1,960 | 1,973 | — | |||||||||||||||||||||
Latin America | 62 | 19 | 138 | 219 | 2,500 | 2,719 | — | |||||||||||||||||||||
Caterpillar Power Finance | 15 | 14 | 126 | 155 | 3,017 | 3,172 | 4 | |||||||||||||||||||||
Dealer | ||||||||||||||||||||||||||||
North America | — | — | — | — | 2,063 | 2,063 | — | |||||||||||||||||||||
Europe | — | — | — | — | 185 | 185 | — | |||||||||||||||||||||
Asia Pacific | — | — | — | — | 751 | 751 | — | |||||||||||||||||||||
Mining | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||
Latin America | — | — | — | — | 884 | 884 | — | |||||||||||||||||||||
Total | $ | 188 | $ | 70 | $ | 418 | $ | 676 | $ | 22,632 | $ | 23,308 | $ | 28 | ||||||||||||||
Allowance for credit losses and recorded investment in finance receivables | ' | |||||||||||||||||||||||||||
An analysis of the allowance for credit losses was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Allowance for Credit Losses: | Customer | Dealer | Total | |||||||||||||||||||||||||
Balance at beginning of year | $ | 414 | $ | 9 | $ | 423 | ||||||||||||||||||||||
Receivables written off | (133 | ) | — | (133 | ) | |||||||||||||||||||||||
Recoveries on receivables previously written off | 38 | — | 38 | |||||||||||||||||||||||||
Provision for credit losses | 76 | 2 | 78 | |||||||||||||||||||||||||
Other | (5 | ) | — | (5 | ) | |||||||||||||||||||||||
Balance at end of period | $ | 390 | $ | 11 | $ | 401 | ||||||||||||||||||||||
Individually evaluated for impairment | $ | 60 | $ | — | $ | 60 | ||||||||||||||||||||||
Collectively evaluated for impairment | 330 | 11 | 341 | |||||||||||||||||||||||||
Ending Balance | $ | 390 | $ | 11 | $ | 401 | ||||||||||||||||||||||
Recorded Investment in Finance Receivables: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 736 | $ | — | $ | 736 | ||||||||||||||||||||||
Collectively evaluated for impairment | 19,539 | 3,870 | 23,409 | |||||||||||||||||||||||||
Ending Balance | $ | 20,275 | $ | 3,870 | $ | 24,145 | ||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Allowance for Credit Losses: | Customer | Dealer | Total | |||||||||||||||||||||||||
Balance at beginning of year | $ | 360 | $ | 6 | $ | 366 | ||||||||||||||||||||||
Receivables written off | (149 | ) | — | (149 | ) | |||||||||||||||||||||||
Recoveries on receivables previously written off | 47 | — | 47 | |||||||||||||||||||||||||
Provision for credit losses | 157 | 3 | 160 | |||||||||||||||||||||||||
Other | (1 | ) | — | (1 | ) | |||||||||||||||||||||||
Balance at end of year | $ | 414 | $ | 9 | $ | 423 | ||||||||||||||||||||||
Individually evaluated for impairment | $ | 54 | $ | — | $ | 54 | ||||||||||||||||||||||
Collectively evaluated for impairment | 360 | 9 | 369 | |||||||||||||||||||||||||
Ending Balance | $ | 414 | $ | 9 | $ | 423 | ||||||||||||||||||||||
Recorded Investment in Finance Receivables: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 593 | $ | — | $ | 593 | ||||||||||||||||||||||
Collectively evaluated for impairment | 18,831 | 3,884 | 22,715 | |||||||||||||||||||||||||
Ending Balance | $ | 19,424 | $ | 3,884 | $ | 23,308 | ||||||||||||||||||||||
Recorded investment of performing and non-performing finance receivables | ' | |||||||||||||||||||||||||||
The recorded investment in performing and non-performing finance receivables was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Customer | Dealer | Total | Customer | Dealer | Total | |||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||
North America | $ | 6,288 | $ | 2,349 | $ | 8,637 | $ | 5,908 | $ | 2,063 | $ | 7,971 | ||||||||||||||||
Europe | 2,725 | 176 | 2,901 | 2,517 | 185 | 2,702 | ||||||||||||||||||||||
Asia Pacific | 2,942 | 565 | 3,507 | 3,002 | 751 | 3,753 | ||||||||||||||||||||||
Mining | 2,262 | 1 | 2,263 | 1,961 | 1 | 1,962 | ||||||||||||||||||||||
Latin America | 2,583 | 779 | 3,362 | 2,571 | 884 | 3,455 | ||||||||||||||||||||||
Caterpillar Power Finance | 2,978 | — | 2,978 | 2,952 | — | 2,952 | ||||||||||||||||||||||
Total Performing | $ | 19,778 | $ | 3,870 | $ | 23,648 | $ | 18,911 | $ | 3,884 | $ | 22,795 | ||||||||||||||||
Non-Performing | ||||||||||||||||||||||||||||
North America | $ | 39 | $ | — | $ | 39 | $ | 59 | $ | — | $ | 59 | ||||||||||||||||
Europe | 41 | — | 41 | 38 | — | 38 | ||||||||||||||||||||||
Asia Pacific | 51 | — | 51 | 36 | — | 36 | ||||||||||||||||||||||
Mining | 31 | — | 31 | 12 | — | 12 | ||||||||||||||||||||||
Latin America | 194 | — | 194 | 148 | — | 148 | ||||||||||||||||||||||
Caterpillar Power Finance | 141 | — | 141 | 220 | — | 220 | ||||||||||||||||||||||
Total Non-Performing | $ | 497 | $ | — | $ | 497 | $ | 513 | $ | — | $ | 513 | ||||||||||||||||
Performing & Non-Performing | ||||||||||||||||||||||||||||
North America | $ | 6,327 | $ | 2,349 | $ | 8,676 | $ | 5,967 | $ | 2,063 | $ | 8,030 | ||||||||||||||||
Europe | 2,766 | 176 | 2,942 | 2,555 | 185 | 2,740 | ||||||||||||||||||||||
Asia Pacific | 2,993 | 565 | 3,558 | 3,038 | 751 | 3,789 | ||||||||||||||||||||||
Mining | 2,293 | 1 | 2,294 | 1,973 | 1 | 1,974 | ||||||||||||||||||||||
Latin America | 2,777 | 779 | 3,556 | 2,719 | 884 | 3,603 | ||||||||||||||||||||||
Caterpillar Power Finance | 3,119 | — | 3,119 | 3,172 | — | 3,172 | ||||||||||||||||||||||
Total | $ | 20,275 | $ | 3,870 | $ | 24,145 | $ | 19,424 | $ | 3,884 | $ | 23,308 | ||||||||||||||||
Loans and finance receivables modified as TDRs | ' | |||||||||||||||||||||||||||
Loan and finance lease receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2013 and 2012, were as follows: | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | |||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | |||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 14 | $ | 1 | $ | — | 17 | $ | 4 | $ | 4 | ||||||||||||||||||
Europe | 7 | 5 | 5 | 14 | 1 | 1 | ||||||||||||||||||||||
Asia Pacific | — | — | — | 12 | 3 | 3 | ||||||||||||||||||||||
Mining | 45 | 123 | 123 | — | — | — | ||||||||||||||||||||||
Latin America | 10 | 1 | 1 | — | — | — | ||||||||||||||||||||||
Caterpillar Power Finance 1 | 6 | 65 | 67 | 15 | 151 | 151 | ||||||||||||||||||||||
Total 2 | 82 | $ | 195 | $ | 196 | 58 | $ | 159 | $ | 159 | ||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | |||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | |||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 46 | $ | 5 | $ | 5 | 58 | $ | 8 | $ | 8 | ||||||||||||||||||
Europe | 15 | 6 | 6 | 21 | 8 | 8 | ||||||||||||||||||||||
Asia Pacific | — | — | — | 12 | 3 | 3 | ||||||||||||||||||||||
Mining | 45 | 123 | 123 | — | — | — | ||||||||||||||||||||||
Latin America | 16 | 2 | 2 | — | — | — | ||||||||||||||||||||||
Caterpillar Power Finance 1 | 10 | 101 | 104 | 20 | 183 | 183 | ||||||||||||||||||||||
Total 2 | 132 | $ | 237 | $ | 240 | 111 | $ | 202 | $ | 202 | ||||||||||||||||||
1 | During the three and nine months ended September 30, 2013, $13 million and $25 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $13 million and $25 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the period presented. At September 30, 2013, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $4 million. | |||||||||||||||||||||||||||
2 | Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods. | |||||||||||||||||||||||||||
TDRs with a payment default which had been modified within twelve months prior to the default date | ' | |||||||||||||||||||||||||||
TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2013 and 2012, which had been modified within twelve months prior to the default date, were as follows: | ||||||||||||||||||||||||||||
(Dollars in millions) | Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||
Number of | Post-TDR | Number of | Post-TDR | |||||||||||||||||||||||||
Contracts | Recorded | Contracts | Recorded | |||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 5 | $ | 1 | 8 | $ | 1 | ||||||||||||||||||||||
Europe | 5 | — | — | — | ||||||||||||||||||||||||
Asia Pacific | — | — | 2 | 1 | ||||||||||||||||||||||||
Total | 10 | $ | 1 | 10 | $ | 2 | ||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Number of | Post-TDR | Number of | Post-TDR | |||||||||||||||||||||||||
Contracts | Recorded | Contracts | Recorded | |||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||
Customer | ||||||||||||||||||||||||||||
North America | 18 | $ | 4 | 39 | $ | 3 | ||||||||||||||||||||||
Europe | 5 | — | — | — | ||||||||||||||||||||||||
Asia Pacific | — | — | 2 | 1 | ||||||||||||||||||||||||
Caterpillar Power Finance | 2 | 3 | 16 | 21 | ||||||||||||||||||||||||
Total | 25 | $ | 7 | 57 | $ | 25 | ||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Assets and liabilities measured on a recurring basis at fair value | ' | ||||||||||||||||||||
Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of September 30, 2013 and December 31, 2012 are summarized below: | |||||||||||||||||||||
(Millions of dollars) | September 30, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets / Liabilities, | |||||||||||||||||||||
at Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Government debt | |||||||||||||||||||||
U.S. treasury bonds | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||
Other U.S. and non-U.S. government bonds | — | 126 | — | 126 | |||||||||||||||||
Corporate bonds | |||||||||||||||||||||
Corporate bonds | — | 672 | — | 672 | |||||||||||||||||
Asset-backed securities | — | 75 | — | 75 | |||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||
U.S. governmental agency | — | 337 | — | 337 | |||||||||||||||||
Residential | — | 21 | — | 21 | |||||||||||||||||
Commercial | — | 93 | — | 93 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Large capitalization value | 231 | — | — | 231 | |||||||||||||||||
Smaller company growth | 45 | — | — | 45 | |||||||||||||||||
Total available-for-sale securities | 287 | 1,324 | — | 1,611 | |||||||||||||||||
Derivative financial instruments, net | — | 186 | — | 186 | |||||||||||||||||
Total Assets | $ | 287 | $ | 1,510 | $ | — | $ | 1,797 | |||||||||||||
Liabilities | |||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets / Liabilities, | |||||||||||||||||||||
at Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Government debt | |||||||||||||||||||||
U.S. treasury bonds | $ | 10 | $ | — | $ | — | $ | 10 | |||||||||||||
Other U.S. and non-U.S. government bonds | — | 146 | — | 146 | |||||||||||||||||
Corporate bonds | |||||||||||||||||||||
Corporate bonds | — | 664 | — | 664 | |||||||||||||||||
Asset-backed securities | — | 96 | — | 96 | |||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||
U.S. governmental agency | — | 299 | — | 299 | |||||||||||||||||
Residential | — | 25 | — | 25 | |||||||||||||||||
Commercial | — | 127 | — | 127 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Large capitalization value | 185 | — | — | 185 | |||||||||||||||||
Smaller company growth | 34 | — | — | 34 | |||||||||||||||||
Total available-for-sale securities | 229 | 1,357 | — | 1,586 | |||||||||||||||||
Derivative financial instruments, net | — | 154 | — | 154 | |||||||||||||||||
Total Assets | $ | 229 | $ | 1,511 | $ | — | $ | 1,740 | |||||||||||||
Liabilities | |||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 14 | $ | 14 | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | 14 | $ | 14 | |||||||||||||
Roll-forward of liabilities measured at fair value using Level 3 inputs | ' | ||||||||||||||||||||
Below are roll-forwards of liabilities measured at fair value using Level 3 inputs for the nine months ended September 30, 2013 and 2012. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions of a marketplace participant. | |||||||||||||||||||||
(Millions of dollars) | Guarantees | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 14 | |||||||||||||||||||
Issuance of guarantees | 6 | ||||||||||||||||||||
Expiration of guarantees | (5 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 15 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 7 | |||||||||||||||||||
Acquisitions | 6 | ||||||||||||||||||||
Issuance of guarantees | 7 | ||||||||||||||||||||
Expiration of guarantees | (3 | ) | |||||||||||||||||||
Balance at September 30, 2012 | $ | 17 | |||||||||||||||||||
Fair values of financial instruments | ' | ||||||||||||||||||||
Please refer to the table below for the fair values of our financial instruments. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
(Millions of dollars) | Carrying | Fair | Carrying | Fair | Fair Value Levels | Reference | |||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and short-term investments | $ | 6,357 | $ | 6,357 | $ | 5,490 | $ | 5,490 | 1 | ||||||||||||
Restricted cash and short-term investments | 50 | 50 | 53 | 53 | 1 | ||||||||||||||||
Available-for-sale securities | 1,611 | 1,611 | 1,586 | 1,586 | 1 & 2 | Note 8 | |||||||||||||||
Finance receivables – net (excluding finance leases 1) | 16,077 | 15,952 | 15,404 | 15,359 | 2 | Note 16 | |||||||||||||||
Wholesale inventory receivables – net (excluding finance leases 1) | 1,616 | 1,542 | 1,674 | 1,609 | 2 | Note 16 | |||||||||||||||
Foreign currency contracts – net | 51 | 51 | — | — | 2 | Note 4 | |||||||||||||||
Interest rate swaps – net | 136 | 136 | 219 | 219 | 2 | Note 4 | |||||||||||||||
Commodity contracts – net | — | — | 1 | 1 | 2 | Note 4 | |||||||||||||||
Liabilities | |||||||||||||||||||||
Short-term borrowings | 5,847 | 5,847 | 5,287 | 5,287 | 1 | ||||||||||||||||
Long-term debt (including amounts due within one year) | |||||||||||||||||||||
Machinery and Power Systems | 9,061 | 10,337 | 9,779 | 11,969 | 2 | ||||||||||||||||
Financial Products | 24,629 | 25,239 | 25,077 | 26,063 | 2 | ||||||||||||||||
Foreign currency contracts – net | — | — | 66 | 66 | 2 | Note 4 | |||||||||||||||
Commodity contracts – net | 1 | 1 | — | — | 2 | Note 4 | |||||||||||||||
Guarantees | 15 | 15 | 14 | 14 | 3 | Note 10 | |||||||||||||||
1 | Total excluded items have a net carrying value at September 30, 2013 and December 31, 2012 of $8,132 million and $7,959 million, respectively. | ||||||||||||||||||||
Divestitures_and_Assets_Held_f1
Divestitures and Assets Held for Sale (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Divestitures and Assets held for sale [Abstract] | ' | |||||||
Major classes of assets held for sale | ' | |||||||
The major classes of assets held for sale for a portion of the Bucyrus distribution business were as follows: | ||||||||
(Millions of dollars) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Inventories | $ | 63 | $ | 30 | ||||
Current assets | $ | 63 | $ | 30 | ||||
Property, plant and equipment – net | $ | 3 | $ | — | ||||
Intangible assets | 101 | 32 | ||||||
Goodwill | 64 | 52 | ||||||
Non-current assets | $ | 168 | $ | 84 | ||||
Employee_Separation_Charges_Ta
Employee Separation Charges (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Employee separation charges [Abstract] | ' | ||||
Summary of separation activity | ' | ||||
The following table summarizes the 2012 and 2013 separation activity: | |||||
(Millions of dollars) | |||||
Total | |||||
Liability balance at December 31, 2011 | $ | 90 | |||
Increase in liability (separation charges) | 94 | ||||
Reduction in liability (payments and other adjustments) | (155 | ) | |||
Liability balance at December 31, 2012 | $ | 29 | |||
Increase in liability (separation charges) | 57 | ||||
Reduction in liability (payments and other adjustments) | (43 | ) | |||
Liability balance at September 30, 2013 | $ | 43 | |||
Basis_of_Presentation_and_Natu1
Basis of Presentation and Nature of Operations Cash Flow Adjustment (Details) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flow revision | Cash flow revision | Cash flow revision | |||
Net cash provided by (used for) operating activities | $7,611 | $3,218 | ($44) | ($57) | ($53) |
Net cash provided by (used for) financing activities | ($2,628) | $3,891 | $44 | $57 | $53 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense, before tax (in dollars) | $64 | $69 | $196 | $204 |
Stock-based compensation awards | ' | ' | ' | ' |
Granted, Stock options (in shares) | ' | ' | 4,276,060 | 3,224,203 |
Fair Value Per Award, Stock options (in dollars per share) | ' | ' | $28.34 | $39.20 |
Stock price on the date of grant (in dollars per share) | $89.75 | $110.09 | $89.75 | $110.09 |
Assumptions used in determining the fair value of the stock-based awards | ' | ' | ' | ' |
Weighted-average dividend yield (as a percent) | ' | ' | 2.13% | 2.16% |
Weighted-average volatility (as a percent) | ' | ' | 30.60% | 35.00% |
Volatilities, low end of range (as a percent) | ' | ' | 23.40% | 33.30% |
Volatilities, high end of range (as a percent) | ' | ' | 40.60% | 40.40% |
Risk-free interest rates, low end of range (as a percent) | ' | ' | 0.16% | 0.17% |
Risk-free interest rates, high end of range (as a percent) | ' | ' | 1.88% | 2.00% |
Weighted-average expected lives (in years) | ' | ' | '8 years | '7 years |
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars) | $232 | ' | $232 | ' |
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years) | ' | ' | '1 year 11 months | ' |
RSUs | ' | ' | ' | ' |
Stock-based compensation awards | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 1,614,870 | 1,429,939 |
Fair Value Per Award (in dollars per share) | ' | ' | $84.05 | $104.61 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Risk Management (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Foreign currency cash flow hedges, maximum period (in years) | '5 years |
Deferred net gains, foreign currency exchange rate risk, to be reclassified from equity to current earnings over the next twelve months | $15 |
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months | $3 |
Commodity forward and option contracts, maximum period (in years) | '5 years |
Derivative_Financial_Instrumen4
Derivative Financial Instruments and Risk Management (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives Fair Value | ' | ' |
Asset Fair Value | $255 | $298 |
Liability Fair Value | -69 | -144 |
Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 92 | 60 |
Liability Fair Value | -56 | -129 |
Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 163 | 238 |
Liability Fair Value | -13 | -15 |
Designated Derivatives | ' | ' |
Derivatives Fair Value | ' | ' |
Asset (Liability) Fair Value | 162 | 180 |
Designated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 49 | 28 |
Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 1 | 0 |
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Liability Fair Value | -24 | -66 |
Designated Derivatives | Interest rate contracts | Receivables-trade and other | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 12 | 17 |
Designated Derivatives | Interest rate contracts | Long-term receivables-trade and other | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 130 | 209 |
Designated Derivatives | Interest rate contracts | Accrued Expenses | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Liability Fair Value | -6 | -8 |
Undesignated Derivatives | ' | ' |
Derivatives Fair Value | ' | ' |
Asset (Liability) Fair Value | 24 | -26 |
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 42 | 31 |
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 13 | 10 |
Undesignated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 8 | 0 |
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Liability Fair Value | -31 | -63 |
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Liability Fair Value | -7 | -6 |
Undesignated Derivatives | Interest rate contracts | Receivables-trade and other | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 0 | 2 |
Undesignated Derivatives | Interest rate contracts | Accrued Expenses | Financial Products | ' | ' |
Derivatives Fair Value | ' | ' |
Liability Fair Value | 0 | -1 |
Undesignated Derivatives | Commodity contracts | Receivables-trade and other | Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Asset Fair Value | 0 | 1 |
Undesignated Derivatives | Commodity contracts | Accrued Expenses | Machinery and Power Systems | ' | ' |
Derivatives Fair Value | ' | ' |
Liability Fair Value | ($1) | $0 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments and Risk Management (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Designated Derivatives | Fair Value Hedges | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gains (Losses) on Derivatives | ($9) | $7 | ($87) | $4 |
Gains (Losses) on Borrowings | 12 | -3 | 92 | 7 |
Designated Derivatives | Fair Value Hedges | Interest rate contracts | Financial Products | Other Income (Expense) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gains (Losses) on Derivatives | -9 | 7 | -87 | 4 |
Gains (Losses) on Borrowings | 12 | -3 | 92 | 7 |
Designated Derivatives | Cash Flow Hedges | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | 41 | -12 | 4 | -56 |
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -14 | -14 | -66 | -16 |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 | -1 |
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery and Power Systems | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | 44 | -6 | 4 | -48 |
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery and Power Systems | Other Income (Expense) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -12 | -14 | -60 | -13 |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 | 0 |
Gains (Losses) reclassified from AOCI to earnings for derivatives dedesignated as related transactions are no longer probable to occur | ' | ' | -3 | ' |
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery and Power Systems | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | 0 | 0 | 0 | ' |
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery and Power Systems | Other Income (Expense) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -1 | 1 | -2 | ' |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 | ' |
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | -3 | -6 | 0 | -8 |
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | Interest Expense of Financial Products | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -1 | -1 | -4 | -3 |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 | -1 |
Undesignated Derivatives | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 19 | -1 | 8 | 31 |
Undesignated Derivatives | Foreign exchange contracts | Machinery and Power Systems | Other Income (Expense) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 15 | -9 | 7 | 21 |
Undesignated Derivatives | Foreign exchange contracts | Financial Products | Other Income (Expense) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 3 | 5 | 4 | 7 |
Undesignated Derivatives | Interest rate contracts | Financial Products | Other Income (Expense) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | -1 | 0 | -1 | 0 |
Undesignated Derivatives | Commodity contracts | Machinery and Power Systems | Other Income (Expense) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | $2 | $3 | ($2) | $3 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments and Risk Management (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Offsetting Assets | ' | ' |
Gross Amount of Recognized Assets | $255 | $298 |
Gross Amounts Offset in the Statement of Fnancial Position | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 255 | 298 |
Financial Instruments | -61 | -71 |
Cash Collateral Received | 0 | 0 |
Net Amount of Assets | 194 | 227 |
Machinery and Power Systems | ' | ' |
Offsetting Assets | ' | ' |
Gross Amount of Recognized Assets | 92 | 60 |
Gross Amounts Offset in the Statement of Fnancial Position | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 92 | 60 |
Financial Instruments | -52 | -59 |
Cash Collateral Received | 0 | 0 |
Net Amount of Assets | 40 | 1 |
Financial Products | ' | ' |
Offsetting Assets | ' | ' |
Gross Amount of Recognized Assets | 163 | 238 |
Gross Amounts Offset in the Statement of Fnancial Position | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 163 | 238 |
Financial Instruments | -9 | -12 |
Cash Collateral Received | 0 | 0 |
Net Amount of Assets | $154 | $226 |
Derivative_Financial_Instrumen7
Derivative Financial Instruments and Risk Management (Details 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Offsetting Liabilities | ' | ' |
Gross Amount of Recognized Liabilities | ($69) | ($144) |
Gross Amounts Offset in the Statement of Financial Postion | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | -69 | -144 |
Financial Instruments | 61 | 71 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Liabilities | -8 | -73 |
Machinery and Power Systems | ' | ' |
Offsetting Liabilities | ' | ' |
Gross Amount of Recognized Liabilities | -56 | -129 |
Gross Amounts Offset in the Statement of Financial Postion | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | -56 | -129 |
Financial Instruments | 52 | 59 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Liabilities | -4 | -70 |
Financial Products | ' | ' |
Offsetting Liabilities | ' | ' |
Gross Amount of Recognized Liabilities | -13 | -15 |
Gross Amounts Offset in the Statement of Financial Postion | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | -13 | -15 |
Financial Instruments | 9 | 12 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Liabilities | ($4) | ($3) |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $3,138 | $3,573 |
Work-in-process | 2,749 | 2,920 |
Finished goods | 7,221 | 8,767 |
Supplies | 284 | 287 |
Total inventories | $13,392 | $15,547 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Affiliated Companies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 31, 2012 |
Results of Operations of unconsolidated affiliated companies: | ' | ' | ' | ' | ' | ' |
Sales | $349 | $253 | $916 | $625 | ' | ' |
Cost of sales | 284 | 206 | 722 | 492 | ' | ' |
Gross profit | 65 | 47 | 194 | 133 | ' | ' |
Profit (loss) | -6 | 17 | -31 | 39 | ' | ' |
Assets: | ' | ' | ' | ' | ' | ' |
Current assets | 707 | ' | 707 | ' | 715 | ' |
Property, plant and equipment - net | 714 | ' | 714 | ' | 529 | ' |
Other assets | 498 | ' | 498 | ' | 616 | ' |
Assets | 1,919 | ' | 1,919 | ' | 1,860 | ' |
Liabilities: | ' | ' | ' | ' | ' | ' |
Current liabilities | 450 | ' | 450 | ' | 443 | ' |
Long-term debt due after one year | 887 | ' | 887 | ' | 708 | ' |
Other liabilities | 167 | ' | 167 | ' | 170 | ' |
Liabilities | 1,504 | ' | 1,504 | ' | 1,321 | ' |
Equity | 415 | ' | 415 | ' | 539 | ' |
Caterpillar's investments in unconsolidated affiliated companies: | ' | ' | ' | ' | ' | ' |
Investments in equity method companies | 268 | ' | 268 | ' | 256 | ' |
Plus: Investments in cost method companies | 10 | ' | 10 | ' | 16 | ' |
Total investments in unconsolidated affiliated companies | $278 | ' | $278 | ' | $272 | ' |
Percentage of equity interest retained in subsidiary (as a percent) | ' | ' | ' | ' | ' | 35.00% |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Johan Walter Berg AB | Customer Relationships | Customer Relationships | Intellectual Property | Intellectual Property | Other | Other | ||||||
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Amortizable Life (in years) | ' | ' | '13 years | ' | '13 years | ' | '15 years | '15 years | '11 years | '12 years | '10 years | '10 years |
Gross Carrying Amount | $4,783 | ' | $4,783 | ' | $4,822 | ' | $2,685 | $2,756 | $1,816 | $1,767 | $282 | $299 |
Accumulated Amortization | -1,083 | ' | -1,083 | ' | -824 | ' | -497 | -377 | -455 | -342 | -131 | -105 |
Net | 3,700 | ' | 3,700 | ' | 3,998 | ' | 2,188 | 2,379 | 1,361 | 1,425 | 151 | 194 |
Indefinite-lived intangible assets - In-process research & development | 18 | ' | 18 | ' | 18 | ' | ' | ' | ' | ' | ' | ' |
Total intangible assets, net | 3,718 | ' | 3,718 | ' | 4,016 | ' | ' | ' | ' | ' | ' | ' |
Total intangible assets, gross carrying amount | 4,801 | ' | 4,801 | ' | 4,840 | ' | ' | ' | ' | ' | ' | ' |
Finite-lived Intangible Assets Acquired | ' | ' | ' | ' | ' | 66 | ' | ' | ' | ' | ' | ' |
Intangible assets reclassified to held for sale and/or divested | ' | ' | ' | ' | ' | ' | 123 | ' | ' | ' | ' | ' |
Accumulated amortization on held for sale intangible assets | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' |
Amortization expense | 91 | 101 | 276 | 294 | ' | ' | ' | ' | ' | ' | ' | ' |
2013 | 369 | ' | 369 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 374 | ' | 374 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 372 | ' | 372 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 360 | ' | 360 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 358 | ' | 358 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | $2,161 | ' | $2,161 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill | ' | ' | ' | ' |
Goodwill | $6,968 | ' | $6,968 | ' |
Goodwill reclassified to held for sale and/or divested | ' | ' | 47 | ' |
Changes in carrying amount of goodwill by reportable segment: | ' | ' | ' | ' |
Goodwill, beginning of period | ' | ' | 7,544 | ' |
Impairments, beginning of period | ' | ' | -602 | ' |
Net goodwill, beginning of period | ' | ' | 6,942 | ' |
Goodwill Acquired | ' | ' | 109 | ' |
Held for sale and business divestitures | ' | ' | -47 | ' |
Goodwill impairment charge | 0 | 0 | 0 | 0 |
Other adjustments | ' | ' | -36 | ' |
Goodwill, end of period | 7,570 | ' | 7,570 | ' |
Impairments, end of period | -602 | ' | -602 | ' |
Net goodwill, end of period | 6,968 | ' | 6,968 | ' |
Johan Walter Berg AB | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Goodwill | 109 | ' | 109 | ' |
Changes in carrying amount of goodwill by reportable segment: | ' | ' | ' | ' |
Net goodwill, end of period | 109 | ' | 109 | ' |
Construction Industries | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Goodwill | 336 | ' | 336 | ' |
Changes in carrying amount of goodwill by reportable segment: | ' | ' | ' | ' |
Net goodwill, beginning of period | ' | ' | 382 | ' |
Goodwill Acquired | ' | ' | 0 | ' |
Held for sale and business divestitures | ' | ' | 0 | ' |
Other adjustments | ' | ' | -46 | ' |
Net goodwill, end of period | 336 | ' | 336 | ' |
Resource Industries | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Goodwill | 3,921 | ' | 3,921 | ' |
Changes in carrying amount of goodwill by reportable segment: | ' | ' | ' | ' |
Goodwill, beginning of period | ' | ' | 4,559 | ' |
Impairments, beginning of period | ' | ' | -602 | ' |
Net goodwill, beginning of period | ' | ' | 3,957 | ' |
Goodwill Acquired | ' | ' | 0 | ' |
Held for sale and business divestitures | ' | ' | -37 | ' |
Other adjustments | ' | ' | 1 | ' |
Goodwill, end of period | 4,523 | ' | 4,523 | ' |
Impairments, end of period | -602 | ' | -602 | ' |
Net goodwill, end of period | 3,921 | ' | 3,921 | ' |
Power Systems | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Goodwill | 2,594 | ' | 2,594 | ' |
Changes in carrying amount of goodwill by reportable segment: | ' | ' | ' | ' |
Net goodwill, beginning of period | ' | ' | 2,486 | ' |
Goodwill Acquired | ' | ' | 109 | ' |
Held for sale and business divestitures | ' | ' | -10 | ' |
Other adjustments | ' | ' | 9 | ' |
Net goodwill, end of period | 2,594 | ' | 2,594 | ' |
Other | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Goodwill | 117 | ' | 117 | ' |
Changes in carrying amount of goodwill by reportable segment: | ' | ' | ' | ' |
Net goodwill, beginning of period | ' | ' | 117 | ' |
Goodwill Acquired | ' | ' | 0 | ' |
Held for sale and business divestitures | ' | ' | 0 | ' |
Other adjustments | ' | ' | 0 | ' |
Net goodwill, end of period | $117 | ' | $117 | ' |
AvailableForSale_Securities_De
Available-For-Sale Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | $1,483 | ' | $1,483 | ' | $1,479 |
Unrealized pretax net gains (losses) | 128 | ' | 128 | ' | 107 |
Fair Value | 1,611 | ' | 1,611 | ' | 1,586 |
Charges for other than temporary decIines in the value of securities | 0 | 0 | 1 | 1 | ' |
U.S. treasury bonds | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 11 | ' | 11 | ' | 10 |
Unrealized pretax net gains (losses) | 0 | ' | 0 | ' | 0 |
Fair Value | 11 | ' | 11 | ' | 10 |
Other U.S. and non-U.S. government bonds | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 125 | ' | 125 | ' | 144 |
Unrealized pretax net gains (losses) | 1 | ' | 1 | ' | 2 |
Fair Value | 126 | ' | 126 | ' | 146 |
Corporate bonds | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 648 | ' | 648 | ' | 626 |
Unrealized pretax net gains (losses) | 24 | ' | 24 | ' | 38 |
Fair Value | 672 | ' | 672 | ' | 664 |
Asset-backed Securities | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 75 | ' | 75 | ' | 96 |
Unrealized pretax net gains (losses) | 0 | ' | 0 | ' | 0 |
Fair Value | 75 | ' | 75 | ' | 96 |
U.S. governmental agency mortgage-backed securities | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 336 | ' | 336 | ' | 291 |
Unrealized pretax net gains (losses) | 1 | ' | 1 | ' | 8 |
Fair Value | 337 | ' | 337 | ' | 299 |
Residential | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 21 | ' | 21 | ' | 26 |
Unrealized pretax net gains (losses) | 0 | ' | 0 | ' | -1 |
Fair Value | 21 | ' | 21 | ' | 25 |
Commercial | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 87 | ' | 87 | ' | 117 |
Unrealized pretax net gains (losses) | 6 | ' | 6 | ' | 10 |
Fair Value | 93 | ' | 93 | ' | 127 |
Large capitalization value | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 158 | ' | 158 | ' | 147 |
Unrealized pretax net gains (losses) | 73 | ' | 73 | ' | 38 |
Fair Value | 231 | ' | 231 | ' | 185 |
Smaller company growth | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 22 | ' | 22 | ' | 22 |
Unrealized pretax net gains (losses) | 23 | ' | 23 | ' | 12 |
Fair Value | $45 | ' | $45 | ' | $34 |
AvailableForSale_Securities_De1
Available-For-Sale Securities (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Less than 12 months | ' | ' |
Fair Value | $338 | $109 |
Unrealized Losses | 7 | 3 |
12 months or more | ' | ' |
Fair Value | 78 | 59 |
Unrealized Losses | 3 | 5 |
Total | ' | ' |
Fair Value | 416 | 168 |
Unrealized Losses | 10 | 8 |
Corporate bonds | ' | ' |
Less than 12 months | ' | ' |
Fair Value | 174 | ' |
Unrealized Losses | 2 | ' |
12 months or more | ' | ' |
Fair Value | 0 | ' |
Unrealized Losses | 0 | ' |
Total | ' | ' |
Fair Value | 174 | ' |
Unrealized Losses | 2 | ' |
Asset-backed Securities | ' | ' |
Less than 12 months | ' | ' |
Fair Value | 4 | 0 |
Unrealized Losses | 0 | 0 |
12 months or more | ' | ' |
Fair Value | 20 | 20 |
Unrealized Losses | 2 | 3 |
Total | ' | ' |
Fair Value | 24 | 20 |
Unrealized Losses | 2 | 3 |
U.S. governmental agency mortgage-backed securities | ' | ' |
Less than 12 months | ' | ' |
Fair Value | 145 | 84 |
Unrealized Losses | 4 | 1 |
12 months or more | ' | ' |
Fair Value | 56 | 15 |
Unrealized Losses | 1 | 0 |
Total | ' | ' |
Fair Value | 201 | 99 |
Unrealized Losses | 5 | 1 |
Residential | ' | ' |
Less than 12 months | ' | ' |
Fair Value | ' | 0 |
Unrealized Losses | ' | 0 |
12 months or more | ' | ' |
Fair Value | ' | 14 |
Unrealized Losses | ' | 1 |
Total | ' | ' |
Fair Value | ' | 14 |
Unrealized Losses | ' | 1 |
Large capitalization value | ' | ' |
Less than 12 months | ' | ' |
Fair Value | 15 | 25 |
Unrealized Losses | 1 | 2 |
12 months or more | ' | ' |
Fair Value | 2 | 10 |
Unrealized Losses | 0 | 1 |
Total | ' | ' |
Fair Value | 17 | 35 |
Unrealized Losses | $1 | $3 |
AvailableForSale_Securities_De2
Available-For-Sale Securities (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ' |
Due in one year or less, Cost Basis | $211 | ' | $211 | ' | ' |
Due after one year through five years, Cost Basis | 589 | ' | 589 | ' | ' |
Due after five through ten years, Cost Basis | 28 | ' | 28 | ' | ' |
Due after ten years, Cost Basis | 31 | ' | 31 | ' | ' |
Due in one year or less, Fair Value | 214 | ' | 214 | ' | ' |
Due after one year through five years, Fair Value | 611 | ' | 611 | ' | ' |
Due after five years through ten years, Fair Value | 29 | ' | 29 | ' | ' |
Due after ten years, Fair Value | 30 | ' | 30 | ' | ' |
Cost Basis | 1,303 | ' | 1,303 | ' | ' |
Fair Value | 1,335 | ' | 1,335 | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 1,483 | ' | 1,483 | ' | 1,479 |
Available-for-sale securities, Fair Value | 1,611 | ' | 1,611 | ' | 1,586 |
Available-for-sale Securities, Proceeds, Gains and Losses | ' | ' | ' | ' | ' |
Proceeds from the sale of available-for-sale securities | 90 | 66 | 297 | 243 | ' |
Gross gains from the sale of available-for-sale securities | 2 | 1 | 4 | 4 | ' |
Gross losses from the sale of available-for-sale securities | 1 | 0 | 2 | 0 | ' |
U.S. governmental agency mortgage-backed securities | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 336 | ' | 336 | ' | 291 |
Available-for-sale securities, Fair Value | 337 | ' | 337 | ' | 299 |
Residential | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 21 | ' | 21 | ' | 26 |
Available-for-sale securities, Fair Value | 21 | ' | 21 | ' | 25 |
Commercial | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Cost Basis | 87 | ' | 87 | ' | 117 |
Available-for-sale securities, Fair Value | $93 | ' | $93 | ' | $127 |
Postretirement_Benefits_Detail
Postretirement Benefits (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
In Millions, unless otherwise specified | Feb. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2012 | Feb. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | U.S. Pension Benefits | U.S. Pension Benefits | U.S. Pension Benefits | U.S. Pension Benefits | U.S. Pension Benefits | Non-U.S. Pension Benefits | Non-U.S. Pension Benefits | Non-U.S. Pension Benefits | Non-U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement Benefits | Other Postretirement Benefits | Other Postretirement Benefits | Other Postretirement Benefits | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plan loss of third party receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21 | ' | ' | ' | ' |
Net gain due to facility closure | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net increase in liability due to curtailment and remeasurement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss recognized in accumulated other comprehensive income/loss due to curtailment and remeasurement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Components of net periodic benefit cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | ' | ' | ' | 49 | 46 | 147 | 138 | ' | ' | 31 | 26 | 93 | 82 | ' | 24 | 23 | 79 | 69 |
Interest cost | ' | ' | ' | ' | ' | 147 | 152 | 436 | 460 | ' | ' | 43 | 44 | 128 | 135 | ' | 48 | 55 | 146 | 166 |
Expected return on plan assets | ' | ' | ' | ' | ' | -208 | -204 | -624 | -610 | ' | ' | -59 | -53 | -176 | -160 | ' | -14 | -15 | -42 | -47 |
Amortization of: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transition obligation / (asset) | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | 1 | 1 | 2 | 2 |
Prior service cost / (credit) | ' | ' | ' | ' | ' | 4 | 5 | 13 | 15 | ' | ' | 0 | 1 | 1 | 1 | ' | -18 | -18 | -55 | -51 |
Net actuarial loss / (gain) | ' | ' | ' | ' | ' | 136 | 126 | 409 | 374 | ' | ' | 33 | 24 | 99 | 72 | ' | 27 | 25 | 81 | 75 |
Net periodic benefit cost, excluding curtailments, settlements and special termination benefits | ' | ' | ' | ' | ' | 128 | 125 | 381 | 377 | ' | ' | 48 | 42 | 145 | 130 | ' | 68 | 71 | 211 | 214 |
Adjustment for subsidiary pension plan | ' | ' | ' | ' | ' | 31 | 0 | 31 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | 0 |
Curtailments, settlements and special termination benefits | ' | ' | ' | ' | ' | 0 | 7 | 0 | 7 | ' | 10 | 0 | 6 | 3 | 28 | -37 | 0 | 0 | 0 | -40 |
Total cost included in operating profit | ' | ' | ' | ' | ' | 159 | 132 | 412 | 384 | ' | ' | 48 | 48 | 148 | 158 | ' | 68 | 71 | 211 | 174 |
Weighted-average assumptions used to determine net cost: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 3.70% | 4.30% | ' | ' | ' | ' | 3.70% | 4.30% | ' | ' | ' | 3.70% | 4.30% |
Expected return on plan assets (as a percent) | ' | ' | ' | ' | ' | ' | ' | 7.80% | 8.00% | ' | ' | ' | ' | 6.70% | 7.10% | ' | ' | ' | 7.80% | 8.00% |
Rate of compensation increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | 4.50% | 4.50% | ' | ' | ' | ' | 3.90% | 3.90% | ' | ' | ' | 4.40% | 4.40% |
Pension contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions to pension plans | ' | 118 | 195 | 398 | 488 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected full year contributions pension plans during the year | ' | $500 | ' | $500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Postretirement_Benefits_Detail1
Postretirement Benefits (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined contribution plans | ' | ' | ' | ' |
Costs related to defined contribution plans | $90 | $77 | $265 | $242 |
U.S. Plans | ' | ' | ' | ' |
Defined contribution plans | ' | ' | ' | ' |
Costs related to defined contribution plans | 74 | 62 | 218 | 196 |
Non-U.S. Plans | ' | ' | ' | ' |
Defined contribution plans | ' | ' | ' | ' |
Costs related to defined contribution plans | $16 | $15 | $47 | $46 |
Guarantees_and_Product_Warrant2
Guarantees and Product Warranty (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 31, 2012 |
In Millions, unless otherwise specified | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Percentage of equity interest sold in subsidiary (as a percent) | ' | ' | 65.00% |
Related liability | $15 | $14 | ' |
Guarantor Obligations | ' | ' | ' |
Guarantees, maximum potential amount of future payments | 804 | 486 | ' |
Special-Purpose Corporation assets in Consolidated Statement of Financial Position | 1,044 | 927 | ' |
Special-Purpose Corporation liabilities in Consolidated Statement of Financial Position | 1,043 | 927 | ' |
Caterpillar dealer guarantees | ' | ' | ' |
Guarantor Obligations | ' | ' | ' |
Guarantees, maximum potential amount of future payments | 201 | 180 | ' |
Customer guarantees | ' | ' | ' |
Guarantor Obligations | ' | ' | ' |
Guarantees, maximum potential amount of future payments | 53 | 77 | ' |
Customer guarantees-supplier consortium | ' | ' | ' |
Guarantor Obligations | ' | ' | ' |
Guarantees, maximum potential amount of future payments | 359 | 0 | ' |
Third party logistics business guarantees | ' | ' | ' |
Guarantor Obligations | ' | ' | ' |
Guarantees, maximum potential amount of future payments | 156 | 176 | ' |
Other guarantees | ' | ' | ' |
Guarantor Obligations | ' | ' | ' |
Guarantees, maximum potential amount of future payments | $35 | $53 | ' |
Guarantees_and_Product_Warrant3
Guarantees and Product Warranty (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Movement in Standard Product Warranty Accrual | ' | ' |
Warranty liability, beginning balance | $1,477 | $1,308 |
Reduction in liability (payments) | -677 | -920 |
Increase in liability (new warranties) | 570 | 1,089 |
Warranty liability, ending balance | $1,370 | $1,477 |
Profit_Per_Share_Details
Profit Per Share (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 80 Months Ended | |||||||
Feb. 28, 2007 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ||||
Profit for the period (A) (in dollars) | ' | $946,000,000 | [1] | ' | $1,699,000,000 | [1] | $2,786,000,000 | [1] | $4,984,000,000 | [1] | ' |
Weighted-average common shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ||||
Weighted-average number of common shares outstanding (B) (in shares) | ' | 639,300,000 | ' | 653,600,000 | 647,600,000 | 652,000,000 | ' | ||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares) | ' | 12,600,000 | ' | 15,100,000 | 13,700,000 | 17,700,000 | ' | ||||
Average common shares outstanding for fully diluted computation (C) (in shares) | ' | 651,900,000 | [2] | ' | 668,700,000 | [2] | 661,300,000 | [2] | 669,700,000 | [2] | ' |
Profit (loss) per share of common stock: | ' | ' | ' | ' | ' | ' | ' | ||||
Assuming no dilution (A/B) (in dollars per share) | ' | $1.48 | ' | $2.60 | $4.30 | $7.64 | ' | ||||
Assuming full dilution (A/C) (in dollars per share) | ' | $1.45 | [2] | ' | $2.54 | [2] | $4.21 | [2] | $7.44 | [2] | ' |
Shares outstanding as of September 30 | ' | 636,400,000 | ' | 653,900,000 | 636,400,000 | 653,900,000 | 636,400,000 | ||||
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares) | ' | 10,285,409 | ' | 6,073,271 | 10,191,424 | 6,073,271 | ' | ||||
Common stock repurchase | ' | ' | ' | ' | ' | ' | ' | ||||
Stock Repurchase Program, Authorized Amount | 7,500,000,000 | ' | ' | ' | ' | ' | ' | ||||
Common shares repurchased (in shares) | ' | 11,942,737 | 11,542,106 | ' | 23,484,843 | 0 | ' | ||||
Payments for repurchase of common stock | ' | 1,000,000,000 | 1,000,000,000 | ' | 2,000,000,000 | 0 | ' | ||||
Stock repurchase program, amount of authorized repurchase spent to date | ' | ' | ' | ' | ' | ' | $5,800,000,000 | ||||
[1] | 1 Profit attributable to common stockholders. | ||||||||||
[2] | 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Apr. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Apr. 02, 2012 | Aug. 01, 2008 | |
Accumulated other comprehensive income (loss), end of period | ' | ($6,247) | ($6,247) | ($6,698) | ($6,433) | ($5,988) | [1] | ' | ' |
Other comprehensive income (loss) before reclassifications | ' | 323 | -217 | ' | ' | ' | ' | ' | |
Amounts reclassified from accumulated other comprehensive (income) loss | ' | 128 | 403 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | ' | 451 | 186 | ' | ' | ' | ' | ' | |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | 100.00% | 67.00% | |
Noncontrolling interest share redemption reclassified to Accumulated other comprehensive income (loss) | 107 | ' | ' | ' | ' | ' | ' | ' | |
Foreign currency translation reclassified to Accumulated other comprehensive income (loss) | 167 | ' | ' | ' | ' | ' | ' | ' | |
Pension and other postretirement benefits reclassified to Accumulated other comprehensive income (loss) | -61 | ' | ' | ' | ' | ' | ' | ' | |
Available for sale securities reclassified to Accumulated other comprehensive income (loss) | 1 | ' | ' | ' | ' | ' | ' | ' | |
Foreign currency translation | ' | ' | ' | ' | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), end of period | ' | 199 | 199 | -92 | 456 | 432 | [1] | ' | ' |
Other comprehensive income (loss) before reclassifications | ' | 291 | -257 | ' | ' | ' | ' | ' | |
Amounts reclassified from accumulated other comprehensive (income) loss | ' | 0 | 0 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | ' | 291 | -257 | ' | ' | ' | ' | ' | |
Pension and other postretirement benefits | ' | ' | ' | ' | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), end of period | ' | -6,528 | -6,528 | -6,645 | -6,914 | -6,454 | [1] | ' | ' |
Other comprehensive income (loss) before reclassifications | ' | -3 | 24 | ' | ' | ' | ' | ' | |
Amounts reclassified from accumulated other comprehensive (income) loss | ' | 120 | 362 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | ' | 117 | 386 | ' | ' | ' | ' | ' | |
Derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), end of period | ' | 2 | 2 | -33 | -42 | -35 | [1] | ' | ' |
Other comprehensive income (loss) before reclassifications | ' | 26 | 2 | ' | ' | ' | ' | ' | |
Amounts reclassified from accumulated other comprehensive (income) loss | ' | 9 | 42 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | ' | 35 | 44 | ' | ' | ' | ' | ' | |
Available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), end of period | ' | 80 | 80 | 72 | 67 | 69 | [1] | ' | ' |
Other comprehensive income (loss) before reclassifications | ' | 9 | 14 | ' | ' | ' | ' | ' | |
Amounts reclassified from accumulated other comprehensive (income) loss | ' | -1 | -1 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | ' | $8 | $13 | ' | ' | ' | ' | ' | |
[1] | In conjunction with the Cat Japan share redemption, to reflect the increase in our ownership interest in Cat Japan from 67 percent to 100 percent, $107 million was reclassified to Accumulated other comprehensive income (loss) from other components of stockholders' equity and was not included in Comprehensive income during the second quarter of 2012. The amount was comprised of foreign currency translation of $167 million, pension and other postretirement benefits of $(61) million and available-for-sale securities of $1 million. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Other income (expense) | ($24) | ($17) | ($79) | $141 | ||||
Interest expense of Financial Products | -178 | -197 | -552 | -599 | ||||
Tax (provision) benefit | -310 | -753 | -943 | -2,314 | ||||
Reclassifications net of tax | 946 | [1] | 1,699 | [1] | 2,786 | [1] | 4,984 | [1] |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Reclassifications net of tax | -128 | ' | -403 | ' | ||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits | ' | ' | ' | ' | ||||
Amortization of actuarial gain (loss) | -196 | ' | -589 | ' | ||||
Amortization of prior service credit (cost) | 14 | ' | 41 | ' | ||||
Amortization of transition asset (obligation) | -1 | ' | -2 | ' | ||||
Reclassifications before tax | -183 | ' | -550 | ' | ||||
Tax (provision) benefit | 63 | ' | 188 | ' | ||||
Reclassifications net of tax | -120 | ' | -362 | ' | ||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | ' | ' | ' | ' | ||||
Reclassifications before tax | -14 | ' | -66 | ' | ||||
Tax (provision) benefit | 5 | ' | 24 | ' | ||||
Reclassifications net of tax | -9 | ' | -42 | ' | ||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts | ' | ' | ' | ' | ||||
Other income (expense) | -12 | ' | -60 | ' | ||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Machinery and Power Systems | ' | ' | ' | ' | ||||
Other income (expense) | -1 | ' | -2 | ' | ||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Financial Products | ' | ' | ' | ' | ||||
Interest expense of Financial Products | -1 | ' | -4 | ' | ||||
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | ' | ' | ' | ' | ||||
Other income (expense) | 1 | ' | 1 | ' | ||||
Tax (provision) benefit | 0 | ' | 0 | ' | ||||
Reclassifications net of tax | $1 | ' | $1 | ' | ||||
[1] | 1 Profit attributable to common stockholders. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Estimated annual effective tax rate (as a percent) | 29.00% | 30.50% |
Benefit from research and development tax credit retroactively extended | $87 | ' |
Prior year tax adjustment | 55 | ' |
Negative impact related to nondeductible goodwill | ' | $81 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
group_presidents | |||||
segments | |||||
Reportable Segments | ' | ' | ' | ' | ' |
Number of group presidents | ' | ' | 5 | ' | ' |
Number of operating segments led by Group Presidents | ' | ' | 3 | ' | ' |
Number of operating segments led by Group President responsible for corporate services | ' | ' | 1 | ' | ' |
Number of smaller operating segments led by Group President | ' | ' | 1 | ' | ' |
Number of operating segments | ' | ' | 5 | ' | ' |
Number of reportable segments | ' | ' | 4 | ' | ' |
Useful life to amortize goodwill for segment assets | ' | ' | '20 years | ' | ' |
Sales and revenues | $13,423 | $16,445 | $41,254 | $49,800 | ' |
Depreciation and amortization | 779 | 720 | 2,263 | 2,070 | ' |
Consolidated profit before taxes | 1,261 | 2,450 | 3,741 | 7,324 | ' |
Segment assets | 87,272 | ' | 87,272 | ' | 89,356 |
Capital expenditures | 966 | 1,231 | 3,163 | 3,526 | ' |
Reportable Segments Including Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 14,027 | 17,163 | 43,094 | 52,020 | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 13,280 | 16,211 | 40,843 | 48,804 | ' |
Depreciation and amortization | 701 | 659 | 2,023 | 1,896 | ' |
Consolidated profit before taxes | 1,772 | 2,705 | 5,459 | 8,790 | ' |
Segment assets | 66,444 | ' | 66,444 | ' | 69,734 |
Capital expenditures | 847 | 1,152 | 2,395 | 3,042 | ' |
Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 747 | 952 | 2,251 | 3,216 | ' |
Machinery and Power Systems | Reportable Segments Including Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 13,220 | 16,387 | 40,686 | 49,719 | ' |
Machinery and Power Systems | Reportable Segments | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 12,473 | 15,435 | 38,435 | 46,503 | ' |
Depreciation and amortization | 498 | 480 | 1,452 | 1,366 | ' |
Consolidated profit before taxes | 1,554 | 2,515 | 4,735 | 8,207 | ' |
Segment assets | 29,205 | ' | 29,205 | ' | 33,171 |
Capital expenditures | 374 | 720 | 1,151 | 1,810 | ' |
Machinery and Power Systems | Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 747 | 952 | 2,251 | 3,216 | ' |
Construction Industries | Reportable Segments Including Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 4,615 | 5,006 | 13,856 | 15,661 | ' |
Construction Industries | Reportable Segments | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 4,547 | 4,904 | 13,594 | 15,306 | ' |
Depreciation and amortization | 145 | 144 | 426 | 414 | ' |
Consolidated profit before taxes | 262 | 459 | 863 | 1,763 | ' |
Segment assets | 8,489 | ' | 8,489 | ' | 10,393 |
Capital expenditures | 143 | 247 | 403 | 597 | ' |
Construction Industries | Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 68 | 102 | 262 | 355 | ' |
Resource Industries | Reportable Segments Including Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 3,212 | 5,467 | 10,912 | 16,291 | ' |
Resource Industries | Reportable Segments | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 3,004 | 5,214 | 10,251 | 15,382 | ' |
Depreciation and amortization | 192 | 179 | 558 | 510 | ' |
Consolidated profit before taxes | 409 | 1,113 | 1,436 | 3,707 | ' |
Segment assets | 11,703 | ' | 11,703 | ' | 13,455 |
Capital expenditures | 106 | 229 | 358 | 603 | ' |
Resource Industries | Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 208 | 253 | 661 | 909 | ' |
Power Systems | Reportable Segments Including Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 5,393 | 5,914 | 15,918 | 17,767 | ' |
Power Systems | Reportable Segments | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 4,922 | 5,317 | 14,590 | 15,815 | ' |
Depreciation and amortization | 161 | 157 | 468 | 442 | ' |
Consolidated profit before taxes | 883 | 943 | 2,436 | 2,737 | ' |
Segment assets | 9,013 | ' | 9,013 | ' | 9,323 |
Capital expenditures | 125 | 244 | 390 | 610 | ' |
Power Systems | Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 471 | 597 | 1,328 | 1,952 | ' |
Financial Products Segment | Reportable Segments Including Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 807 | 776 | 2,408 | 2,301 | ' |
Financial Products Segment | Reportable Segments | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | 807 | 776 | 2,408 | 2,301 | ' |
Depreciation and amortization | 203 | 179 | 571 | 530 | ' |
Consolidated profit before taxes | 218 | 190 | 724 | 583 | ' |
Segment assets | 37,239 | ' | 37,239 | ' | 36,563 |
Capital expenditures | 473 | 432 | 1,244 | 1,232 | ' |
Financial Products Segment | Intersegment Eliminations | ' | ' | ' | ' | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Sales and revenues | $0 | $0 | $0 | $0 | ' |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | $13,423 | $16,445 | $41,254 | $49,800 |
Reportable Segments | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 13,280 | 16,211 | 40,843 | 48,804 |
All Other operating segment | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 219 | 318 | 647 | 1,246 |
Other | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | -76 | -84 | -236 | -250 |
Consolidating Adjustments | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | -80 | -90 | -256 | -264 |
Consolidating Adjustments | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 0 | 0 | 0 | 0 |
Consolidating Adjustments | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Other | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | -80 | -90 | -256 | -264 |
Machinery and Power Systems | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 12,473 | 15,435 | 38,435 | 46,503 |
Machinery and Power Systems | Business | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 12,678 | 15,739 | 39,048 | 47,711 |
Machinery and Power Systems | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 12,473 | 15,435 | 38,435 | 46,503 |
Machinery and Power Systems | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 219 | 318 | 647 | 1,246 |
Machinery and Power Systems | Business | Other | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | -14 | -14 | -34 | -38 |
Financial Products | Business | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 825 | 796 | 2,462 | 2,353 |
Financial Products | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 807 | 776 | 2,408 | 2,301 |
Financial Products | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ' | ' | ' | ' |
Reconciliation of Sales and revenues | ' | ' | ' | ' |
Sales and revenues | $18 | $20 | $54 | $52 |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | $1,261 | $2,450 | $3,741 | $7,324 |
Reportable Segments | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 1,772 | 2,705 | 5,459 | 8,790 |
All Other operating segment | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 170 | 482 | 547 | 888 |
Cost Centers | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 42 | 9 | 100 | 32 |
Corporate Costs | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -376 | -366 | -1,160 | -1,126 |
Timing | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 77 | -30 | 58 | -318 |
Inventory/cost of sales | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -36 | 9 | -139 | -26 |
Postretirement Benefits Expense | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -174 | -177 | -505 | -508 |
Financing Costs | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -120 | -130 | -361 | -357 |
Equity in Profit/Loss of Unconsolidated Affiliated Companies | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 1 | -5 | 1 | -12 |
Currency | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -32 | 20 | -71 | 160 |
Interest rate swaps | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | ' | 2 | ' | 2 |
Other Income Expense Methodology Differences | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -58 | -64 | -178 | -199 |
Other | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -5 | -5 | -10 | -2 |
Machinery and Power Systems | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 1,554 | 2,515 | 4,735 | 8,207 |
Machinery and Power Systems | Business | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 1,047 | 2,256 | 3,007 | 6,740 |
Machinery and Power Systems | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 1,554 | 2,515 | 4,735 | 8,207 |
Machinery and Power Systems | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 170 | 482 | 547 | 888 |
Machinery and Power Systems | Business | Cost Centers | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 42 | 9 | 100 | 32 |
Machinery and Power Systems | Business | Corporate Costs | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -376 | -366 | -1,160 | -1,126 |
Machinery and Power Systems | Business | Timing | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 77 | -30 | 58 | -318 |
Machinery and Power Systems | Business | Inventory/cost of sales | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -36 | 9 | -139 | -26 |
Machinery and Power Systems | Business | Postretirement Benefits Expense | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -174 | -177 | -505 | -508 |
Machinery and Power Systems | Business | Financing Costs | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -120 | -130 | -361 | -357 |
Machinery and Power Systems | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 1 | -5 | 1 | -12 |
Machinery and Power Systems | Business | Currency | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -32 | 20 | -71 | 160 |
Machinery and Power Systems | Business | Interest rate swaps | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | ' | 2 | ' | 2 |
Machinery and Power Systems | Business | Other Income Expense Methodology Differences | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -58 | -64 | -178 | -199 |
Machinery and Power Systems | Business | Other | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | -1 | -9 | -20 | -3 |
Financial Products | Business | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 214 | 194 | 734 | 584 |
Financial Products | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 218 | 190 | 724 | 583 |
Financial Products | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Corporate Costs | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Timing | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Inventory/cost of sales | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Postretirement Benefits Expense | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Financing Costs | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Currency | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Interest rate swaps | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | ' | 0 | ' | 0 |
Financial Products | Business | Other Income Expense Methodology Differences | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ' | ' | ' | ' |
Reconciliation of Consolidated profit (loss) before taxes | ' | ' | ' | ' |
Consolidated profit before taxes | ($4) | $4 | $10 | $1 |
Segment_Information_Details_4
Segment Information (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Reconciliation of Assets | ' | ' |
Total assets | $87,272 | $89,356 |
Reportable Segments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 66,444 | 69,734 |
All Other operating segment | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 1,442 | 1,499 |
Cash and Short Term Investments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 4,108 | 3,306 |
Intercompany Receivables | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Investment in Financial Products | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Deferred Income Taxes | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 3,393 | 3,410 |
Goodwill and Intangible Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 3,567 | 3,145 |
Property Plant and Equipment-Net and Other Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 1,057 | 668 |
Operating Lease Methodology Difference | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -287 | -329 |
Liabilities Included in Segment Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 10,504 | 11,293 |
Inventory Methodology Differences | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -2,610 | -2,949 |
Other | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -346 | -421 |
Consolidating Adjustments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -5,565 | -5,384 |
Consolidating Adjustments | Reportable Segments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | All Other operating segment | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | Cash and Short Term Investments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | Intercompany Receivables | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -243 | -303 |
Consolidating Adjustments | Investment in Financial Products | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -4,769 | -4,433 |
Consolidating Adjustments | Deferred Income Taxes | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -490 | -516 |
Consolidating Adjustments | Goodwill and Intangible Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | Property Plant and Equipment-Net and Other Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | Operating Lease Methodology Difference | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | Liabilities Included in Segment Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | Inventory Methodology Differences | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Consolidating Adjustments | Other | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -63 | -132 |
Machinery and Power Systems | Reportable Segments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 29,205 | 33,171 |
Machinery and Power Systems | Business | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 55,749 | 58,284 |
Machinery and Power Systems | Business | Reportable Segments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 29,205 | 33,171 |
Machinery and Power Systems | Business | All Other operating segment | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 1,442 | 1,499 |
Machinery and Power Systems | Business | Cash and Short Term Investments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 4,108 | 3,306 |
Machinery and Power Systems | Business | Intercompany Receivables | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 243 | 303 |
Machinery and Power Systems | Business | Investment in Financial Products | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 4,769 | 4,433 |
Machinery and Power Systems | Business | Deferred Income Taxes | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 3,883 | 3,926 |
Machinery and Power Systems | Business | Goodwill and Intangible Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 3,567 | 3,145 |
Machinery and Power Systems | Business | Property Plant and Equipment-Net and Other Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 1,057 | 668 |
Machinery and Power Systems | Business | Operating Lease Methodology Difference | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -287 | -329 |
Machinery and Power Systems | Business | Liabilities Included in Segment Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 10,504 | 11,293 |
Machinery and Power Systems | Business | Inventory Methodology Differences | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -2,610 | -2,949 |
Machinery and Power Systems | Business | Other | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | -132 | -182 |
Financial Products | Business | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 37,088 | 36,456 |
Financial Products | Business | Reportable Segments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 37,239 | 36,563 |
Financial Products | Business | All Other operating segment | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Cash and Short Term Investments | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Intercompany Receivables | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Investment in Financial Products | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Deferred Income Taxes | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Goodwill and Intangible Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Property Plant and Equipment-Net and Other Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Operating Lease Methodology Difference | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Liabilities Included in Segment Assets | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Inventory Methodology Differences | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | 0 | 0 |
Financial Products | Business | Other | ' | ' |
Reconciliation of Assets | ' | ' |
Total assets | ($151) | ($107) |
Segment_Information_Details_5
Segment Information (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | $779 | $720 | $2,263 | $2,070 |
Reportable Segments | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 701 | 659 | 2,023 | 1,896 |
All Other operating segment | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 43 | 41 | 127 | 125 |
Cost Centers | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 36 | 23 | 104 | 64 |
Other | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | -1 | -3 | 9 | -15 |
Machinery and Power Systems | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 498 | 480 | 1,452 | 1,366 |
Machinery and Power Systems | Business | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 570 | 535 | 1,674 | 1,523 |
Machinery and Power Systems | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 498 | 480 | 1,452 | 1,366 |
Machinery and Power Systems | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 43 | 41 | 127 | 125 |
Machinery and Power Systems | Business | Cost Centers | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 36 | 23 | 104 | 64 |
Machinery and Power Systems | Business | Other | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | -7 | -9 | -9 | -32 |
Financial Products | Business | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 209 | 185 | 589 | 547 |
Financial Products | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 203 | 179 | 571 | 530 |
Financial Products | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 0 | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ' | ' | ' | ' |
Reconciliation of Depreciation and amortization | ' | ' | ' | ' |
Total depreciation and amortization | $6 | $6 | $18 | $17 |
Segment_Information_Details_6
Segment Information (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | $966 | $1,231 | $3,163 | $3,526 |
Reportable Segments | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 847 | 1,152 | 2,395 | 3,042 |
All Other operating segment | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 88 | 75 | 200 | 229 |
Cost Centers | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 41 | 16 | 115 | 119 |
Timing | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 5 | -40 | 531 | 281 |
Other | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | -15 | 28 | -78 | -145 |
Consolidating Adjustments | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | -15 | -15 | -50 | -139 |
Consolidating Adjustments | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Cost Centers | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Timing | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Other | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | -15 | -15 | -50 | -139 |
Machinery and Power Systems | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 374 | 720 | 1,151 | 1,810 |
Machinery and Power Systems | Business | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 490 | 779 | 1,903 | 2,324 |
Machinery and Power Systems | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 374 | 720 | 1,151 | 1,810 |
Machinery and Power Systems | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 88 | 75 | 200 | 229 |
Machinery and Power Systems | Business | Cost Centers | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 41 | 16 | 115 | 119 |
Machinery and Power Systems | Business | Timing | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 5 | -40 | 531 | 281 |
Machinery and Power Systems | Business | Other | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | -18 | 8 | -94 | -115 |
Financial Products | Business | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 491 | 467 | 1,310 | 1,341 |
Financial Products | Business | Reportable Segments | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 473 | 432 | 1,244 | 1,232 |
Financial Products | Business | All Other operating segment | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 0 | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 0 | 0 | 0 | 0 |
Financial Products | Business | Timing | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ' | ' | ' | ' |
Reconciliation of Capital expenditures | ' | ' | ' | ' |
Total capital expenditures | $18 | $35 | $66 | $109 |
Cat_Financial_Financing_Activi2
Cat Financial Financing Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Receivables [Abstract] | ' | ' | ' | ' | ' |
Period after which collection of future income is considered as not probable (in days) | ' | ' | '120 days | ' | ' |
Customer | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment With No Allowance Recorded | $523 | ' | $523 | ' | $378 |
Unpaid Principal Balance With No Allowance Recorded | 520 | ' | 520 | ' | 377 |
Related Allowance With No Allowance Recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment With An Allowance Recorded | 213 | ' | 213 | ' | 215 |
Unpaid Principal Balance With An Allowance Recorded | 202 | ' | 202 | ' | 207 |
Related Allowance | 60 | ' | 60 | ' | 54 |
Recorded Investment, Total | 736 | ' | 736 | ' | 593 |
Unpaid Principal Balance, Total | 722 | ' | 722 | ' | 584 |
Related Allowance, Total | 60 | ' | 60 | ' | 54 |
Average Recorded Investment With No Allowance Recorded | 468 | 323 | 414 | 323 | ' |
Interest Income Recognized With No Allowance Recorded | 3 | 2 | 7 | 5 | ' |
Average Recorded Investment With An Allowance Recorded | 262 | 210 | 247 | 177 | ' |
Interest Income Recognized With An Allowance Recorded | 2 | 2 | 5 | 3 | ' |
Average Recorded Investment, Total | 730 | 533 | 661 | 500 | ' |
Interest Income Recognized, Total | 5 | 4 | 12 | 8 | ' |
Customer | North America | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment With No Allowance Recorded | 20 | ' | 20 | ' | 28 |
Unpaid Principal Balance With No Allowance Recorded | 19 | ' | 19 | ' | 27 |
Related Allowance With No Allowance Recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment With An Allowance Recorded | 16 | ' | 16 | ' | 25 |
Unpaid Principal Balance With An Allowance Recorded | 14 | ' | 14 | ' | 23 |
Related Allowance | 4 | ' | 4 | ' | 7 |
Recorded Investment, Total | 36 | ' | 36 | ' | 53 |
Unpaid Principal Balance, Total | 33 | ' | 33 | ' | 50 |
Related Allowance, Total | 4 | ' | 4 | ' | 7 |
Average Recorded Investment With No Allowance Recorded | 23 | 41 | 26 | 56 | ' |
Interest Income Recognized With No Allowance Recorded | 0 | 1 | 3 | 2 | ' |
Average Recorded Investment With An Allowance Recorded | 14 | 25 | 18 | 25 | ' |
Interest Income Recognized With An Allowance Recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, Total | 37 | 66 | 44 | 81 | ' |
Interest Income Recognized, Total | 0 | 1 | 3 | 2 | ' |
Customer | Europe | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment With No Allowance Recorded | 53 | ' | 53 | ' | 45 |
Unpaid Principal Balance With No Allowance Recorded | 52 | ' | 52 | ' | 45 |
Related Allowance With No Allowance Recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment With An Allowance Recorded | 19 | ' | 19 | ' | 28 |
Unpaid Principal Balance With An Allowance Recorded | 15 | ' | 15 | ' | 26 |
Related Allowance | 7 | ' | 7 | ' | 11 |
Recorded Investment, Total | 72 | ' | 72 | ' | 73 |
Unpaid Principal Balance, Total | 67 | ' | 67 | ' | 71 |
Related Allowance, Total | 7 | ' | 7 | ' | 11 |
Average Recorded Investment With No Allowance Recorded | 52 | 45 | 48 | 45 | ' |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment With An Allowance Recorded | 21 | 27 | 23 | 26 | ' |
Interest Income Recognized With An Allowance Recorded | 0 | 1 | 1 | 1 | ' |
Average Recorded Investment, Total | 73 | 72 | 71 | 71 | ' |
Interest Income Recognized, Total | 0 | 1 | 1 | 1 | ' |
Customer | Asia Pacific | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment With No Allowance Recorded | 2 | ' | 2 | ' | 2 |
Unpaid Principal Balance With No Allowance Recorded | 2 | ' | 2 | ' | 2 |
Related Allowance With No Allowance Recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment With An Allowance Recorded | 22 | ' | 22 | ' | 19 |
Unpaid Principal Balance With An Allowance Recorded | 22 | ' | 22 | ' | 19 |
Related Allowance | 6 | ' | 6 | ' | 4 |
Recorded Investment, Total | 24 | ' | 24 | ' | 21 |
Unpaid Principal Balance, Total | 24 | ' | 24 | ' | 21 |
Related Allowance, Total | 6 | ' | 6 | ' | 4 |
Average Recorded Investment With No Allowance Recorded | 3 | 3 | 4 | 4 | ' |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment With An Allowance Recorded | 18 | 15 | 18 | 13 | ' |
Interest Income Recognized With An Allowance Recorded | 0 | 0 | 1 | 1 | ' |
Average Recorded Investment, Total | 21 | 18 | 22 | 17 | ' |
Interest Income Recognized, Total | 0 | 0 | 1 | 1 | ' |
Customer | Mining | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment With No Allowance Recorded | 127 | ' | 127 | ' | 1 |
Unpaid Principal Balance With No Allowance Recorded | 127 | ' | 127 | ' | 1 |
Related Allowance With No Allowance Recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment With An Allowance Recorded | 0 | ' | 0 | ' | 0 |
Unpaid Principal Balance With An Allowance Recorded | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Recorded Investment, Total | 127 | ' | 127 | ' | 1 |
Unpaid Principal Balance, Total | 127 | ' | 127 | ' | 1 |
Related Allowance, Total | 0 | ' | 0 | ' | 0 |
Average Recorded Investment With No Allowance Recorded | 96 | 9 | 40 | 8 | ' |
Interest Income Recognized With No Allowance Recorded | 2 | 1 | 2 | 1 | ' |
Average Recorded Investment With An Allowance Recorded | 0 | 0 | 1 | 0 | ' |
Interest Income Recognized With An Allowance Recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, Total | 96 | 9 | 41 | 8 | ' |
Interest Income Recognized, Total | 2 | 1 | 2 | 1 | ' |
Customer | Latin America | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment With No Allowance Recorded | 16 | ' | 16 | ' | 7 |
Unpaid Principal Balance With No Allowance Recorded | 16 | ' | 16 | ' | 7 |
Related Allowance With No Allowance Recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment With An Allowance Recorded | 62 | ' | 62 | ' | 30 |
Unpaid Principal Balance With An Allowance Recorded | 62 | ' | 62 | ' | 30 |
Related Allowance | 18 | ' | 18 | ' | 8 |
Recorded Investment, Total | 78 | ' | 78 | ' | 37 |
Unpaid Principal Balance, Total | 78 | ' | 78 | ' | 37 |
Related Allowance, Total | 18 | ' | 18 | ' | 8 |
Average Recorded Investment With No Allowance Recorded | 14 | 6 | 11 | 6 | ' |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment With An Allowance Recorded | 53 | 37 | 44 | 26 | ' |
Interest Income Recognized With An Allowance Recorded | 1 | 1 | 2 | 1 | ' |
Average Recorded Investment, Total | 67 | 43 | 55 | 32 | ' |
Interest Income Recognized, Total | 1 | 1 | 2 | 1 | ' |
Customer | Caterpillar Power Finance | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment With No Allowance Recorded | 305 | ' | 305 | ' | 295 |
Unpaid Principal Balance With No Allowance Recorded | 304 | ' | 304 | ' | 295 |
Related Allowance With No Allowance Recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment With An Allowance Recorded | 94 | ' | 94 | ' | 113 |
Unpaid Principal Balance With An Allowance Recorded | 89 | ' | 89 | ' | 109 |
Related Allowance | 25 | ' | 25 | ' | 24 |
Recorded Investment, Total | 399 | ' | 399 | ' | 408 |
Unpaid Principal Balance, Total | 393 | ' | 393 | ' | 404 |
Related Allowance, Total | 25 | ' | 25 | ' | 24 |
Average Recorded Investment With No Allowance Recorded | 280 | 219 | 285 | 204 | ' |
Interest Income Recognized With No Allowance Recorded | 1 | 0 | 2 | 2 | ' |
Average Recorded Investment With An Allowance Recorded | 156 | 106 | 143 | 87 | ' |
Interest Income Recognized With An Allowance Recorded | 1 | 0 | 1 | 0 | ' |
Average Recorded Investment, Total | 436 | 325 | 428 | 291 | ' |
Interest Income Recognized, Total | 2 | 0 | 3 | 2 | ' |
Dealer | ' | ' | ' | ' | ' |
Impaired loans and finance leases | ' | ' | ' | ' | ' |
Recorded Investment, Total | 0 | ' | 0 | ' | 0 |
Average Recorded Investment, Total | $0 | $0 | $0 | $0 | ' |
Cat_Financial_Financing_Activi3
Cat Financial Financing Activities (Details 2) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | ' | ' |
Period after which Unpaid Installments are Considered as Past Due (in days) | '30 days | ' |
Period after which collection of future income is considered as not probable (in days) | '120 days | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | $200 | $188 |
61-90 Days Past Due | 119 | 70 |
91+ Days Past Due | 396 | 418 |
Total Past Due | 715 | 676 |
Current | 23,430 | 22,632 |
Total Finance Receivables | 24,145 | 23,308 |
91+ Still Accruing | 31 | 28 |
North America | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 8,676 | 8,030 |
Europe | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 2,942 | 2,740 |
Asia Pacific | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 3,558 | 3,789 |
Mining | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 2,294 | 1,974 |
Latin America | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 3,556 | 3,603 |
Caterpillar Power Finance | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 3,119 | 3,172 |
Customer | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 20,275 | 19,424 |
Investment in loans and finance leases on non-accrual status | 497 | 513 |
Customer | North America | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | 33 | 35 |
61-90 Days Past Due | 9 | 8 |
91+ Days Past Due | 29 | 52 |
Total Past Due | 71 | 95 |
Current | 6,256 | 5,872 |
Total Finance Receivables | 6,327 | 5,967 |
91+ Still Accruing | 0 | 0 |
Investment in loans and finance leases on non-accrual status | 39 | 59 |
Customer | Europe | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | 32 | 23 |
61-90 Days Past Due | 16 | 9 |
91+ Days Past Due | 36 | 36 |
Total Past Due | 84 | 68 |
Current | 2,682 | 2,487 |
Total Finance Receivables | 2,766 | 2,555 |
91+ Still Accruing | 8 | 6 |
Investment in loans and finance leases on non-accrual status | 41 | 38 |
Customer | Asia Pacific | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | 65 | 53 |
61-90 Days Past Due | 42 | 19 |
91+ Days Past Due | 60 | 54 |
Total Past Due | 167 | 126 |
Current | 2,826 | 2,912 |
Total Finance Receivables | 2,993 | 3,038 |
91+ Still Accruing | 16 | 18 |
Investment in loans and finance leases on non-accrual status | 51 | 36 |
Customer | Mining | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 1 |
91+ Days Past Due | 12 | 12 |
Total Past Due | 12 | 13 |
Current | 2,281 | 1,960 |
Total Finance Receivables | 2,293 | 1,973 |
91+ Still Accruing | 0 | 0 |
Investment in loans and finance leases on non-accrual status | 31 | 12 |
Customer | Latin America | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | 63 | 62 |
61-90 Days Past Due | 34 | 19 |
91+ Days Past Due | 189 | 138 |
Total Past Due | 286 | 219 |
Current | 2,491 | 2,500 |
Total Finance Receivables | 2,777 | 2,719 |
91+ Still Accruing | 5 | 0 |
Investment in loans and finance leases on non-accrual status | 194 | 148 |
Customer | Caterpillar Power Finance | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | 7 | 15 |
61-90 Days Past Due | 18 | 14 |
91+ Days Past Due | 69 | 126 |
Total Past Due | 94 | 155 |
Current | 3,025 | 3,017 |
Total Finance Receivables | 3,119 | 3,172 |
91+ Still Accruing | 1 | 4 |
Investment in loans and finance leases on non-accrual status | 141 | 220 |
Dealer | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | 3,870 | 3,884 |
Investment in loans and finance leases on non-accrual status | 0 | 0 |
Dealer | North America | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
91+ Days Past Due | ' | ' |
Total Past Due | 0 | 0 |
Current | 2,349 | 2,063 |
Total Finance Receivables | 2,349 | 2,063 |
91+ Still Accruing | ' | ' |
Dealer | Europe | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
91+ Days Past Due | ' | ' |
Total Past Due | 0 | 0 |
Current | 176 | 185 |
Total Finance Receivables | 176 | 185 |
91+ Still Accruing | ' | ' |
Dealer | Asia Pacific | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
91+ Days Past Due | ' | ' |
Total Past Due | 0 | 0 |
Current | 565 | 751 |
Total Finance Receivables | 565 | 751 |
91+ Still Accruing | ' | ' |
Dealer | Mining | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
91+ Days Past Due | ' | ' |
Total Past Due | 0 | 0 |
Current | 1 | 1 |
Total Finance Receivables | 1 | 1 |
91+ Still Accruing | ' | ' |
Dealer | Latin America | ' | ' |
Aging related to loans and finance leases | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
91+ Days Past Due | 1 | ' |
Total Past Due | 1 | 0 |
Current | 778 | 884 |
Total Finance Receivables | 779 | 884 |
91+ Still Accruing | 1 | ' |
Dealer | Caterpillar Power Finance | ' | ' |
Aging related to loans and finance leases | ' | ' |
Total Finance Receivables | $0 | $0 |
Cat_Financial_Financing_Activi4
Cat Financial Financing Activities (Details 3) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Allowance for Credit Loss Activity | ' | ' |
Balance at beginning of year | $423 | $366 |
Receivables written off | -133 | -149 |
Recoveries on receivables previously written off | 38 | 47 |
Provision for credit losses | 78 | 160 |
Other | -5 | -1 |
Balance at end of period | 401 | 423 |
Allowance for Credit Losses | ' | ' |
Individually evaluated for impairment | 60 | 54 |
Collectively evaluated for impairment | 341 | 369 |
Ending Balance | 401 | 423 |
Recorded Investment in Finance Receivables | ' | ' |
Individually evaluated for impairment | 736 | 593 |
Collectively evaluated for impairment | 23,409 | 22,715 |
Ending balance-recorded investment in finance receivables | 24,145 | 23,308 |
Customer | ' | ' |
Allowance for Credit Loss Activity | ' | ' |
Balance at beginning of year | 414 | 360 |
Receivables written off | -133 | -149 |
Recoveries on receivables previously written off | 38 | 47 |
Provision for credit losses | 76 | 157 |
Other | -5 | -1 |
Balance at end of period | 390 | 414 |
Allowance for Credit Losses | ' | ' |
Individually evaluated for impairment | 60 | 54 |
Collectively evaluated for impairment | 330 | 360 |
Ending Balance | 390 | 414 |
Recorded Investment in Finance Receivables | ' | ' |
Individually evaluated for impairment | 736 | 593 |
Collectively evaluated for impairment | 19,539 | 18,831 |
Ending balance-recorded investment in finance receivables | 20,275 | 19,424 |
Dealer | ' | ' |
Allowance for Credit Loss Activity | ' | ' |
Balance at beginning of year | 9 | 6 |
Receivables written off | 0 | 0 |
Recoveries on receivables previously written off | 0 | 0 |
Provision for credit losses | 2 | 3 |
Other | 0 | 0 |
Balance at end of period | 11 | 9 |
Allowance for Credit Losses | ' | ' |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 11 | 9 |
Ending Balance | 11 | 9 |
Recorded Investment in Finance Receivables | ' | ' |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,870 | 3,884 |
Ending balance-recorded investment in finance receivables | $3,870 | $3,884 |
Cat_Financial_Financing_Activi5
Cat Financial Financing Activities (Details 4) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | ' | ' |
Period after which finance receivables are considered non-performing (in days) | '120 days | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | $24,145 | $23,308 |
Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 23,648 | 22,795 |
Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 497 | 513 |
North America | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 8,676 | 8,030 |
North America | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 8,637 | 7,971 |
North America | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 39 | 59 |
Europe | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,942 | 2,740 |
Europe | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,901 | 2,702 |
Europe | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 41 | 38 |
Asia Pacific | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,558 | 3,789 |
Asia Pacific | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,507 | 3,753 |
Asia Pacific | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 51 | 36 |
Mining | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,294 | 1,974 |
Mining | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,263 | 1,962 |
Mining | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 31 | 12 |
Latin America | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,556 | 3,603 |
Latin America | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,362 | 3,455 |
Latin America | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 194 | 148 |
Caterpillar Power Finance | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,119 | 3,172 |
Caterpillar Power Finance | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,978 | 2,952 |
Caterpillar Power Finance | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 141 | 220 |
Customer | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 20,275 | 19,424 |
Customer | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 19,778 | 18,911 |
Customer | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 497 | 513 |
Customer | North America | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 6,327 | 5,967 |
Customer | North America | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 6,288 | 5,908 |
Customer | North America | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 39 | 59 |
Customer | Europe | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,766 | 2,555 |
Customer | Europe | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,725 | 2,517 |
Customer | Europe | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 41 | 38 |
Customer | Asia Pacific | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,993 | 3,038 |
Customer | Asia Pacific | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,942 | 3,002 |
Customer | Asia Pacific | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 51 | 36 |
Customer | Mining | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,293 | 1,973 |
Customer | Mining | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,262 | 1,961 |
Customer | Mining | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 31 | 12 |
Customer | Latin America | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,777 | 2,719 |
Customer | Latin America | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,583 | 2,571 |
Customer | Latin America | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 194 | 148 |
Customer | Caterpillar Power Finance | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,119 | 3,172 |
Customer | Caterpillar Power Finance | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,978 | 2,952 |
Customer | Caterpillar Power Finance | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 141 | 220 |
Dealer | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,870 | 3,884 |
Dealer | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 3,870 | 3,884 |
Dealer | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | North America | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,349 | 2,063 |
Dealer | North America | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 2,349 | 2,063 |
Dealer | North America | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | ' | ' |
Dealer | Europe | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 176 | 185 |
Dealer | Europe | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 176 | 185 |
Dealer | Europe | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | ' | ' |
Dealer | Asia Pacific | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 565 | 751 |
Dealer | Asia Pacific | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 565 | 751 |
Dealer | Asia Pacific | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | ' | ' |
Dealer | Mining | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 1 | 1 |
Dealer | Mining | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 1 | 1 |
Dealer | Mining | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | ' | ' |
Dealer | Latin America | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 779 | 884 |
Dealer | Latin America | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 779 | 884 |
Dealer | Latin America | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | ' | ' |
Dealer | Caterpillar Power Finance | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | Caterpillar Power Finance | Performing | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | Caterpillar Power Finance | Nonperforming | ' | ' |
Finance Receivables | ' | ' |
Ending balance-recorded investment in finance receivables | ' | ' |
Cat_Financial_Financing_Activi6
Cat Financial Financing Activities (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Contracts | Contracts | Contracts | Contracts | |
Customer | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 82 | 58 | 132 | 111 |
Pre-TDR Outstanding Recorded Investment | $195 | $159 | $237 | $202 |
Post-TDR Outstanding Recorded Investment | 196 | 159 | 240 | 202 |
TDRs with a payment default which had been modified within twelve months prior to the default date | ' | ' | ' | ' |
Number of Contracts (in contracts) | 10 | 10 | 25 | 57 |
Post-TDR Recorded Investment | 1 | 2 | 7 | 25 |
Customer | North America | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 14 | 17 | 46 | 58 |
Pre-TDR Outstanding Recorded Investment | 1 | 4 | 5 | 8 |
Post-TDR Outstanding Recorded Investment | 0 | 4 | 5 | 8 |
TDRs with a payment default which had been modified within twelve months prior to the default date | ' | ' | ' | ' |
Number of Contracts (in contracts) | 5 | 8 | 18 | 39 |
Post-TDR Recorded Investment | 1 | 1 | 4 | 3 |
Customer | Europe | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 7 | 14 | 15 | 21 |
Pre-TDR Outstanding Recorded Investment | 5 | 1 | 6 | 8 |
Post-TDR Outstanding Recorded Investment | 5 | 1 | 6 | 8 |
TDRs with a payment default which had been modified within twelve months prior to the default date | ' | ' | ' | ' |
Number of Contracts (in contracts) | 5 | 0 | 5 | 0 |
Post-TDR Recorded Investment | 0 | 0 | 0 | 0 |
Customer | Asia Pacific | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 0 | 12 | 0 | 12 |
Pre-TDR Outstanding Recorded Investment | 0 | 3 | 0 | 3 |
Post-TDR Outstanding Recorded Investment | 0 | 3 | 0 | 3 |
TDRs with a payment default which had been modified within twelve months prior to the default date | ' | ' | ' | ' |
Number of Contracts (in contracts) | 0 | 2 | 0 | 2 |
Post-TDR Recorded Investment | 0 | 1 | 0 | 1 |
Customer | Mining | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 45 | 0 | 45 | 0 |
Pre-TDR Outstanding Recorded Investment | 123 | 0 | 123 | 0 |
Post-TDR Outstanding Recorded Investment | 123 | 0 | 123 | 0 |
Customer | Latin America | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 10 | 0 | 16 | 0 |
Pre-TDR Outstanding Recorded Investment | 1 | 0 | 2 | 0 |
Post-TDR Outstanding Recorded Investment | 1 | 0 | 2 | 0 |
Customer | Caterpillar Power Finance | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 6 | 15 | 10 | 20 |
Pre-TDR Outstanding Recorded Investment | 65 | 151 | 101 | 183 |
Post-TDR Outstanding Recorded Investment | 67 | 151 | 104 | 183 |
Additional funds loaned not recorded as TDRs | 13 | ' | 25 | ' |
Remaining Commitments | 4 | ' | 4 | ' |
TDRs with a payment default which had been modified within twelve months prior to the default date | ' | ' | ' | ' |
Number of Contracts (in contracts) | ' | ' | 2 | 16 |
Post-TDR Recorded Investment | ' | ' | $3 | $21 |
Dealer | ' | ' | ' | ' |
Loans modified as TDRs | ' | ' | ' | ' |
Number of Contracts (in contracts) | 0 | 0 | 0 | 0 |
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interest - Caterpillar Japan Ltd. (Details) | 1 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 30, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 02, 2012 | Aug. 01, 2008 |
USD ($) | JPY (¥) | USD ($) | USD ($) | |||
Redeemable Noncontrolling Interest Disclosure Abstract | ' | ' | ' | ' | ' | ' |
Caterpillar majority percentage ownership (as a percent) | ' | ' | ' | ' | 100.00% | 67.00% |
MHI minority percentage ownership (as a percent) | ' | ' | ' | ' | ' | 33.00% |
Additional ownership percentage by Caterpillar (as a percent) | ' | ' | ' | ' | 33.00% | ' |
Cash paid to acquire remaining equity interest | $444 | ¥ 36,500 | $0 | $444 | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Available-for-sale securities | $1,611 | $1,586 |
Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 1,611 | 1,586 |
Derivative financial instruments, net | 186 | 154 |
Total Assets | 1,797 | 1,740 |
Liabilities | ' | ' |
Guarantees | 15 | 14 |
Total Liabilities | 15 | 14 |
U.S. treasury bonds | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 11 | 10 |
U.S. treasury bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 11 | 10 |
Other U.S. and non-U.S. government bonds | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 126 | 146 |
Other U.S. and non-U.S. government bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 126 | 146 |
Corporate bonds | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 672 | 664 |
Corporate bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 672 | 664 |
Asset-backed Securities | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 75 | 96 |
Asset-backed Securities | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 75 | 96 |
U.S. governmental agency | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 337 | 299 |
Residential | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 21 | 25 |
Residential | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 21 | 25 |
Commercial | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 93 | 127 |
Commercial | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 93 | 127 |
Large capitalization value | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 231 | 185 |
Large capitalization value | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 231 | 185 |
Smaller company growth | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 45 | 34 |
Smaller company growth | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 45 | 34 |
Level 1 | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 287 | 229 |
Derivative financial instruments, net | 0 | 0 |
Total Assets | 287 | 229 |
Liabilities | ' | ' |
Guarantees | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 1 | U.S. treasury bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 11 | 10 |
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 1 | Corporate bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 1 | Asset-backed Securities | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 1 | U.S. governmental agency | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 1 | Residential | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 1 | Commercial | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 1 | Large capitalization value | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 231 | 185 |
Level 1 | Smaller company growth | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 45 | 34 |
Level 2 | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 1,324 | 1,357 |
Derivative financial instruments, net | 186 | 154 |
Total Assets | 1,510 | 1,511 |
Liabilities | ' | ' |
Guarantees | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 | U.S. treasury bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 126 | 146 |
Level 2 | Corporate bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 672 | 664 |
Level 2 | Asset-backed Securities | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 75 | 96 |
Level 2 | U.S. governmental agency | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 337 | 299 |
Level 2 | Residential | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 21 | 25 |
Level 2 | Commercial | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 93 | 127 |
Level 2 | Large capitalization value | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 2 | Smaller company growth | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Derivative financial instruments, net | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ' | ' |
Guarantees | 15 | 14 |
Total Liabilities | 15 | 14 |
Level 3 | U.S. treasury bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Corporate bonds | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Asset-backed Securities | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | U.S. governmental agency | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Residential | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Commercial | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Large capitalization value | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 0 | 0 |
Level 3 | Smaller company growth | Recurring basis | ' | ' |
Assets | ' | ' |
Available-for-sale securities | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | Level 2 | Level 2 | Level 3 | Level 3 |
Financial Products | Financial Products | Guarantees | Guarantees | |
Nonrecurring basis | Nonrecurring basis | Recurring basis | Recurring basis | |
Roll-forward of liabilities measured at fair value using Level 3 inputs | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | $14 | $7 |
Acquisitions | ' | ' | ' | 6 |
Issuance of guarantees | ' | ' | 6 | 7 |
Expiration of guarantees | ' | ' | -5 | -3 |
Balance at end of period | ' | ' | 15 | 17 |
Fair value of impaired loans | ' | ' | ' | ' |
Impaired loans | $109 | $117 | ' | ' |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and short-term investments | $6,357 | $5,490 | $5,689 | $3,057 |
Available-for-sale securities | 1,611 | 1,586 | ' | ' |
Carrying Amount | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and short-term investments | 6,357 | 5,490 | ' | ' |
Restricted cash and short-term investments | 50 | 53 | ' | ' |
Available-for-sale securities | 1,611 | 1,586 | ' | ' |
Finance receivables-net (excluding finance leases) | 16,077 | 15,404 | ' | ' |
Wholesale inventory receivables-net (excluding finance leases) | 1,616 | 1,674 | ' | ' |
Foreign currency contracts - net | 51 | 0 | ' | ' |
Interest rate swaps-net | 136 | 219 | ' | ' |
Commodity contracts-net | 0 | 1 | ' | ' |
Liabilities | ' | ' | ' | ' |
Short-term borrowings | 5,847 | 5,287 | ' | ' |
Foreign currency contracts-net | 0 | 66 | ' | ' |
Commodity contracts-net | 1 | 0 | ' | ' |
Guarantees | 15 | 14 | ' | ' |
Carrying Amount | Machinery and Power Systems | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Long-term debt (including amounts due within one year) | 9,061 | 9,779 | ' | ' |
Carrying Amount | Financial Products | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Long-term debt (including amounts due within one year) | 24,629 | 25,077 | ' | ' |
Carrying amount of assets excluded from measurement at fair value | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Finance leases | 8,132 | 7,959 | ' | ' |
Level 1 | Fair Value | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and short-term investments | 6,357 | 5,490 | ' | ' |
Restricted cash and short-term investments | 50 | 53 | ' | ' |
Liabilities | ' | ' | ' | ' |
Short-term borrowings | 5,847 | 5,287 | ' | ' |
Level 1 & 2 | Fair Value | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Available-for-sale securities | 1,611 | 1,586 | ' | ' |
Level 2 | Fair Value | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Finance receivables-net (excluding finance leases) | 15,952 | 15,359 | ' | ' |
Wholesale inventory receivables-net (excluding finance leases) | 1,542 | 1,609 | ' | ' |
Foreign currency contracts - net | 51 | 0 | ' | ' |
Interest rate swaps-net | 136 | 219 | ' | ' |
Commodity contracts-net | 0 | 1 | ' | ' |
Liabilities | ' | ' | ' | ' |
Foreign currency contracts-net | 0 | 66 | ' | ' |
Commodity contracts-net | 1 | 0 | ' | ' |
Level 2 | Fair Value | Machinery and Power Systems | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Long-term debt (including amounts due within one year) | 10,337 | 11,969 | ' | ' |
Level 2 | Fair Value | Financial Products | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Long-term debt (including amounts due within one year) | 25,239 | 26,063 | ' | ' |
Level 3 | Fair Value | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Guarantees | $15 | $14 | ' | ' |
Acquisitions_Details
Acquisitions (Details) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
In Millions, except Share data in Billions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-13 | 31-May-12 | Dec. 31, 2012 | Oct. 31, 2012 | 31-May-12 | 31-May-12 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Johan Walter Berg AB | Johan Walter Berg AB | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | Cash consideration | Loan note consideration | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | |||||||
parties | types | HKD | HKD | ||||||||||
director | |||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity acquired (as a percent) | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | 99.00% | ' | 1.00% | ' | ' |
Purchase price of acquired entity | ' | ' | ' | ' | ' | $166 | ' | ' | $677 | ' | ' | ' | ' |
Cost of acquisition paid in cash | ' | ' | ' | ' | ' | ' | ' | ' | 475 | 7 | ' | ' | ' |
Net cash paid for acquisition | ' | ' | 193 | 542 | ' | ' | ' | ' | 444 | ' | ' | ' | ' |
Fair value of loan notes debt component | ' | ' | ' | ' | ' | ' | ' | 152 | 152 | ' | ' | ' | ' |
Loan and interest payable to Caterpillar | ' | ' | ' | ' | ' | ' | ' | ' | 51 | ' | ' | ' | ' |
Fair value of noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' |
Contingent consideration arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration payable | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration arrangement, maximum value (in Euro) | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' |
Number of consideration alternatives | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Value of consideration to be paid (in HKD/share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.88 | 1 |
Contingent consideration arrangement, minimum value (in HKD/share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75 |
Contingent consideration arrangement, maximum value (in HKD/share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.15 |
Number of shares tendered (in billions of shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 1.6 |
Assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tangible assets acquired | ' | ' | ' | ' | ' | 83 | ' | ' | 598 | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | 9 | ' | ' | 31 | ' | ' | ' | ' |
Restricted cash | ' | ' | ' | ' | ' | ' | ' | ' | 138 | ' | ' | ' | ' |
Receivables | ' | ' | ' | ' | ' | 13 | ' | ' | 184 | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' | ' | 33 | ' | ' | 77 | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | 28 | ' | ' | 94 | ' | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' | ' | ' | 66 | ' | ' | 112 | ' | ' | ' | ' |
Finite-lived intangible assets weighted average amortization period (in years) | ' | ' | ' | ' | ' | '10 years | '10 years | ' | '14 years | ' | ' | ' | ' |
Liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | 83 | ' | ' | 626 | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | ' | 19 | ' | ' | 352 | ' | ' | ' | ' |
Advance payments | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | ' | ' | ' |
Debt assumed | ' | ' | ' | ' | ' | ' | ' | ' | 168 | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | ' | ' | ' | ' | ' | 37 | ' | ' | ' | ' |
Net deferred tax liabilities | ' | ' | ' | ' | ' | 13 | ' | ' | 25 | ' | ' | ' | ' |
Goodwill | 6,968 | ' | 6,968 | ' | 6,942 | 109 | ' | ' | 625 | 45 | ' | ' | ' |
Adjustments to preliminary allocation of purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangibles decrease | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82 | ' | ' | ' |
Receivables decrease | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29 | ' | ' | ' |
Inventory decrease | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' |
Net liabilities increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23 | ' | ' | ' |
Goodwill increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | 149 | ' | ' | ' |
Goodwill impairment charge | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | 580 | ' | ' | ' |
Number of former directors | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of other parties to the settlement | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Payments by Caterpillar to parties of the settlement agreement | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' |
Obligation related to the loans by former directors | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' |
Gain related to settlement and discharge of loan obligations | ' | ' | ' | ' | ' | ' | ' | $135 | ' | ' | ' | ' | ' |
Divestitures_and_Assets_Held_f2
Divestitures and Assets Held for Sale (Details) (USD $) | Jul. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2012 |
In Millions, unless otherwise specified | Bucyrus Distribution Business | Bucyrus Distribution Business | Bucyrus Distribution Business | Bucyrus Distribution Business | Third Party Logistics Business | Third Party Logistics Business | |
Transaction | Transaction | Transaction | Transaction | ||||
Disposal Groups | ' | ' | ' | ' | ' | ' | ' |
Number of sales transactions completed | ' | 3 | 1 | 2 | ' | ' | ' |
Sales price of business | ' | ' | ' | ' | $199 | $567 | ' |
After-tax profit unfavorable impact | ' | ' | ' | ' | 44 | ' | ' |
Gains related to sales transactions | ' | ' | ' | ' | 64 | 276 | ' |
Increase in reserve for parts returns related to prior sale transactions | ' | ' | ' | ' | 34 | ' | ' |
Selling, general and administrative expenses | ' | ' | ' | ' | 85 | ' | ' |
Income tax benefit | ' | ' | ' | ' | 11 | ' | ' |
Customer relationship intangible assets sold | ' | 31 | ' | ' | 31 | ' | ' |
Allocated goodwill | ' | 24 | ' | ' | 24 | ' | ' |
Inventories sold | ' | 20 | ' | ' | 20 | ' | ' |
Fixed assets sold | ' | 8 | ' | ' | 8 | ' | ' |
Number of divestiture transactions classified as held for sale | ' | 9 | ' | ' | 9 | ' | ' |
Percentage of equity interest sold in subsidiary (as a percent) | 65.00% | ' | ' | ' | ' | ' | 65.00% |
Equity contribution from buyer | ' | ' | ' | ' | ' | 107 | ' |
Percentage of equity interest retained in subsidiary (as a percent) | 35.00% | ' | ' | ' | ' | ' | 35.00% |
Incremental incentive compensation expense | ' | ' | ' | ' | ' | 8 | ' |
Retained noncontrolling interest, fair value | ' | ' | ' | ' | ' | ' | $58 |
Divestitures_and_Assets_Held_f3
Divestitures and Assets Held for Sale (Details 2) (Bucyrus Distribution Business, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Bucyrus Distribution Business | ' | ' |
Current assets held for sale | ' | ' |
Inventories | $63 | $30 |
Current assets | 63 | 30 |
Non-current assets held for sale | ' | ' |
Property, plant and equipment - net | 3 | 0 |
Intangible assets | 101 | 32 |
Goodwill | 64 | 52 |
Non-current assets | $168 | $84 |
Employee_Separation_Charges_De
Employee Separation Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Employee Separation Charges [Roll Forward] | ' | ' | ' |
Liability balance at beginning of period | ' | $29 | $90 |
Increase in liability (separation charges) | 34 | 57 | 94 |
Reduction in liability (payments and other adjustments) | ' | -43 | -155 |
Liability balance at end of period | $43 | $43 | $29 |