Segment Information | 9 Months Ended |
Sep. 30, 2013 |
Segment Reporting [Abstract] | ' |
Segment Information | ' |
Segment Information |
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A. | Basis for segment information | | | | | | | | | | | | | | | | | | | | | | | | | | |
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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. |
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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. |
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B. | Description of segments | | | | | | | | | | | | | | | | | | | | | | | | | | |
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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: |
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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. |
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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. |
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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. |
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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. |
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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. |
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C. | Segment measurement and reconciliations | | | | | | | | | | | | | | | | | | | | | | | | | | |
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There are several methodology differences between our segment reporting and our external reporting. The following is a list of the more significant methodology differences: |
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• | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | Segment inventories and cost of sales are valued using a current cost methodology. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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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: |
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• | Corporate costs: These costs are related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. | | | | | | | | | | | | | | | | | | | | | | | | | | |
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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 | |
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Resource Industries | 3,004 | | | 208 | | | 3,212 | | | 192 | | | 409 | | | 11,703 | | | 106 | |
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Power Systems | 4,922 | | | 471 | | | 5,393 | | | 161 | | | 883 | | | 9,013 | | | 125 | |
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Machinery and Power Systems | $ | 12,473 | | | $ | 747 | | | $ | 13,220 | | | $ | 498 | | | $ | 1,554 | | | $ | 29,205 | | | $ | 374 | |
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Financial Products Segment | 807 | | | — | | | 807 | | | 203 | | | 218 | | | 37,239 | | | 473 | |
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Total | $ | 13,280 | | | $ | 747 | | | $ | 14,027 | | | $ | 701 | | | $ | 1,772 | | | $ | 66,444 | | | $ | 847 | |
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| 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 | |
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Resource Industries | 5,214 | | | 253 | | | 5,467 | | | 179 | | | 1,113 | | | 13,455 | | | 229 | |
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Power Systems | 5,317 | | | 597 | | | 5,914 | | | 157 | | | 943 | | | 9,323 | | | 244 | |
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Machinery and Power Systems | $ | 15,435 | | | $ | 952 | | | $ | 16,387 | | | $ | 480 | | | $ | 2,515 | | | $ | 33,171 | | | $ | 720 | |
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Financial Products Segment | 776 | | | — | | | 776 | | | 179 | | | 190 | | | 36,563 | | | 432 | |
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Total | $ | 16,211 | | | $ | 952 | | | $ | 17,163 | | | $ | 659 | | | $ | 2,705 | | | $ | 69,734 | | | $ | 1,152 | |
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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 | |
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Resource Industries | 10,251 | | | 661 | | | 10,912 | | | 558 | | | 1,436 | | | 11,703 | | | 358 | |
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Power Systems | 14,590 | | | 1,328 | | | 15,918 | | | 468 | | | 2,436 | | | 9,013 | | | 390 | |
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Machinery and Power Systems | $ | 38,435 | | | $ | 2,251 | | | $ | 40,686 | | | $ | 1,452 | | | $ | 4,735 | | | $ | 29,205 | | | $ | 1,151 | |
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Financial Products Segment | 2,408 | | | — | | | 2,408 | | | 571 | | | 724 | | | 37,239 | | | 1,244 | |
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Total | $ | 40,843 | | | $ | 2,251 | | | $ | 43,094 | | | $ | 2,023 | | | $ | 5,459 | | | $ | 66,444 | | | $ | 2,395 | |
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| 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 | |
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Resource Industries | 15,382 | | | 909 | | | 16,291 | | | 510 | | | 3,707 | | | 13,455 | | | 603 | |
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Power Systems | 15,815 | | | 1,952 | | | 17,767 | | | 442 | | | 2,737 | | | 9,323 | | | 610 | |
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Machinery and Power Systems | $ | 46,503 | | | $ | 3,216 | | | $ | 49,719 | | | $ | 1,366 | | | $ | 8,207 | | | $ | 33,171 | | | $ | 1,810 | |
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Financial Products Segment | 2,301 | | | — | | | 2,301 | | | 530 | | | 583 | | | 36,563 | | | 1,232 | |
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Total | $ | 48,804 | | | $ | 3,216 | | | $ | 52,020 | | | $ | 1,896 | | | $ | 8,790 | | | $ | 69,734 | | | $ | 3,042 | |
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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 | | | | | | | | | | | | | |
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All Other operating segment | 219 | | | — | | | — | | | 219 | | | | | | | | | | | | | |
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Other | (14 | ) | | 18 | | | (80 | ) | 1 | (76 | ) | | | | | | | | | | | | |
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Total sales and revenues | $ | 12,678 | | | $ | 825 | | | $ | (80 | ) | | $ | 13,423 | | | | | | | | | | | | | |
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Three Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | |
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Total external sales and revenues from reportable segments | $ | 15,435 | | | $ | 776 | | | $ | — | | | $ | 16,211 | | | | | | | | | | | | | |
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All Other operating segment | 318 | | | — | | | — | | | 318 | | | | | | | | | | | | | |
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Other | (14 | ) | | 20 | | | (90 | ) | 1 | (84 | ) | | | | | | | | | | | | |
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Total sales and revenues | $ | 15,739 | | | $ | 796 | | | $ | (90 | ) | | $ | 16,445 | | | | | | | | | | | | | |
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1 Elimination of Financial Products revenues from Machinery and Power Systems. | | | | | | | | | | | | | | | | |
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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 | | | | | | | | | | | | | |
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All Other operating segment | 647 | | | — | | | — | | | 647 | | | | | | | | | | | | | |
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Other | (34 | ) | | 54 | | | (256 | ) | 1 | (236 | ) | | | | | | | | | | | | |
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Total sales and revenues | $ | 39,048 | | | $ | 2,462 | | | $ | (256 | ) | | $ | 41,254 | | | | | | | | | | | | | |
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Nine Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | |
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Total external sales and revenues from reportable segments | $ | 46,503 | | | $ | 2,301 | | | $ | — | | | $ | 48,804 | | | | | | | | | | | | | |
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All Other operating segment | 1,246 | | | — | | | — | | | 1,246 | | | | | | | | | | | | | |
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Other | (38 | ) | | 52 | | | (264 | ) | 1 | (250 | ) | | | | | | | | | | | | |
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Total sales and revenues | $ | 47,711 | | | $ | 2,353 | | | $ | (264 | ) | | $ | 49,800 | | | | | | | | | | | | | |
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1 Elimination of Financial Products revenues from Machinery and Power Systems. | | | | | | | | | | | | | | | | |
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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 | | | | | | | | | | | | | | | | | |
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All Other operating segment | 170 | | | — | | | 170 | | | | | | | | | | | | | | | | | |
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Cost centers | 42 | | | — | | | 42 | | | | | | | | | | | | | | | | | |
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Corporate costs | (376 | ) | | — | | | (376 | ) | | | | | | | | | | | | | | | | |
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Timing | 77 | | | — | | | 77 | | | | | | | | | | | | | | | | | |
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Methodology differences: | | | | | | | | | | | | | | | | | | | | | | | |
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Inventory/cost of sales | (36 | ) | | — | | | (36 | ) | | | | | | | | | | | | | | | | |
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Postretirement benefit expense | (174 | ) | | — | | | (174 | ) | | | | | | | | | | | | | | | | |
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Financing costs | (120 | ) | | — | | | (120 | ) | | | | | | | | | | | | | | | | |
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Equity in (profit) loss of unconsolidated affiliated companies | 1 | | | — | | | 1 | | | | | | | | | | | | | | | | | |
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Currency | (32 | ) | | — | | | (32 | ) | | | | | | | | | | | | | | | | |
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Other income/expense methodology differences | (58 | ) | | — | | | (58 | ) | | | | | | | | | | | | | | | | |
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Other methodology differences | (1 | ) | | (4 | ) | | (5 | ) | | | | | | | | | | | | | | | | |
Total consolidated profit before taxes | $ | 1,047 | | | $ | 214 | | | $ | 1,261 | | | | | | | | | | | | | | | | | |
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Three Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
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Total profit from reportable segments | $ | 2,515 | | | $ | 190 | | | $ | 2,705 | | | | | | | | | | | | | | | | | |
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All Other operating segment | 482 | | | — | | | 482 | | | | | | | | | | | | | | | | | |
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Cost centers | 9 | | | — | | | 9 | | | | | | | | | | | | | | | | | |
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Corporate costs | (366 | ) | | — | | | (366 | ) | | | | | | | | | | | | | | | | |
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Timing | (30 | ) | | — | | | (30 | ) | | | | | | | | | | | | | | | | |
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Methodology differences: | | | | | | | | | | | | | | | | | | | | | | |
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Inventory/cost of sales | 9 | | | — | | | 9 | | | | | | | | | | | | | | | | | |
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Postretirement benefit expense | (177 | ) | | — | | | (177 | ) | | | | | | | | | | | | | | | | |
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Financing costs | (130 | ) | | — | | | (130 | ) | | | | | | | | | | | | | | | | |
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Equity in (profit) loss of unconsolidated affiliated companies | (5 | ) | | — | | | (5 | ) | | | | | | | | | | | | | | | | |
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Currency | 20 | | | — | | | 20 | | | | | | | | | | | | | | | | | |
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Interest rate swaps | 2 | | | — | | | 2 | | | | | | | | | | | | | | | | | |
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Other income/expense methodology differences | (64 | ) | | — | | | (64 | ) | | | | | | | | | | | | | | | | |
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Other methodology differences | (9 | ) | | 4 | | | (5 | ) | | | | | | | | | | | | | | | | |
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Total consolidated profit before taxes | $ | 2,256 | | | $ | 194 | | | $ | 2,450 | | | | | | | | | | | | | | | | | |
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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 | | | | | | | | | | | | | | | | | |
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All Other operating segment | 547 | | | — | | | 547 | | | | | | | | | | | | | | | | | |
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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 | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |