Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 |
Document And Entity Information1 | ||
Entity Registrant Name | CATERPILLAR INC | |
Entity Central Index Key | 18230 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $68.10 | |
Entity Common Stock, Shares Outstanding | 606,166,559 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY |
Consolidated_Results_of_Operat
Consolidated Results of Operations (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Sales and revenues: | ||||||
Sales of Machinery, Energy & Transportation | $52,142 | $52,694 | $63,068 | |||
Revenues of Financial Products | 3,042 | 2,962 | 2,807 | |||
Total sales and revenues | 55,184 | 55,656 | 65,875 | |||
Operating costs: | ||||||
Cost of goods sold | 39,767 | 40,727 | 47,055 | |||
Selling, general and administrative expenses | 5,697 | 5,547 | 5,919 | |||
Research and development expenses | 2,135 | 2,046 | 2,466 | |||
Interest expense of Financial Products | 624 | 727 | 797 | |||
Goodwill impairment charge | 0 | 0 | 580 | |||
Other operating (income) expenses | 1,633 | 981 | 485 | |||
Total operating costs | 49,856 | 50,028 | 57,302 | |||
Operating profit | 5,328 | 5,628 | 8,573 | |||
Interest expense excluding Financial Products | 484 | 465 | 467 | |||
Other income (expense) | 239 | -35 | 130 | |||
Consolidated profit before taxes | 5,083 | 5,128 | 8,236 | |||
Provision (benefit) for income taxes | 1,380 | 1,319 | 2,528 | |||
Profit of consolidated companies | 3,703 | 3,809 | 5,708 | |||
Equity in profit (loss) of unconsolidated affiliated companies | 8 | -6 | 14 | |||
Profit of consolidated and affiliated companies | 3,711 | 3,803 | 5,722 | |||
Less: Profit (loss) attributable to noncontrolling interests | 16 | 14 | 41 | |||
Profit | $3,695 | [1] | $3,789 | [1] | $5,681 | [1] |
Profit per common share (in dollars per share) | $5.99 | $5.87 | $8.71 | |||
Profit per common share - diluted (in dollars per share) | $5.88 | [2] | $5.75 | [2] | $8.48 | [2] |
Weighted-average common shares outstanding (millions) | ||||||
Basic (in shares) | 617.2 | 645.2 | 652.6 | |||
Diluted (in shares) | 628.9 | [2] | 658.6 | [2] | 669.6 | [2] |
Cash dividends declared per common share (in dollars per share) | $2.70 | $2.32 | $2.02 | |||
[1] | 1Â Profit attributable to common stockholders. | |||||
[2] | 2Â Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method. |
Consolidated_Comprehensive_Inc
Consolidated Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Profit of consolidated and affiliated companies | $3,711 | $3,803 | $5,722 |
Other comprehensive income (loss), Net of Tax: | |||
Foreign currency translation, net of tax (provision)/benefit of: 2014 - $(78); 2013 - $57; 2012 - $9 | -1,164 | -277 | 60 |
Pension and other postretirement benefits: | |||
Current year actuarial gain (loss), net of tax (provision)/benefit of: 2014 - $838; 2013 - $(1,232); 2012 - $372 | -1,578 | 2,277 | -731 |
Amortization of actuarial (gain) loss, net of tax (provision)/benefit of: 2014 - $(175); 2013 - $(265); 2012 - $(243) | 344 | 516 | 458 |
Current year prior service credit (cost), net of tax (provision)/benefit of: 2014 - $(2); 2013 - $(2); 2012 - $(12) | 4 | 3 | 23 |
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2014 - $13; 2013 - $19; 2012 - $17 | -25 | -35 | -31 |
Amortization of transition (asset) obligation, net of tax (provision)/benefit of: 2014 - $0; 2013 - $(1); 2012 - $(1) | 0 | 1 | 1 |
Derivative financial instruments: | |||
Gains (losses) deferred, net of tax (provision)/benefit of: 2014 - $69; 2013 - $2; 2012 - $29 | -118 | -4 | -48 |
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2014 - $(2); 2013 - $(25); 2012 - $(10) | 4 | 41 | 16 |
Available-for-sale securities: | |||
Gains (losses) deferred, net of tax (provision)/benefit of: 2014 - $(12); 2013 - $(15); 2012 - $(13) | 24 | 29 | 26 |
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2014 - $11; 2013 - $6; 2012 - $1 | -24 | -13 | -3 |
Total other comprehensive income (loss), net of tax | -2,533 | 2,538 | -229 |
Comprehensive income | 1,178 | 6,341 | 5,493 |
Less: comprehensive income attributable to the noncontrolling interests | -16 | -17 | -24 |
Comprehensive income attributable to stockholders | $1,162 | $6,324 | $5,469 |
Consolidated_Comprehensive_Inc1
Consolidated Comprehensive Income (Parenthetical) (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, tax (provision)/benefit | ($78) | $57 | $9 |
Current year actuarial gain (loss), tax (provision)/benefit | 838 | -1,232 | 372 |
Amortization of actuarial (gain) loss, tax (provision)/benefit | -175 | -265 | -243 |
Current year prior service credit (cost), tax (provision)/benefit | -2 | -2 | -12 |
Amortization of prior service (credit) cost, tax (provision)/benefit | 13 | 19 | 17 |
Amortization of transition (asset) obligation, tax (provision)/benefit | 0 | -1 | -1 |
Derivative financial instruments, Gains (losses) deferred, tax (provision)/benefit | 69 | 2 | 29 |
Derivative financial instruments, (Gains) losses reclassified to earnings, tax (provision)/benefit | -2 | -25 | -10 |
Available-for-sale securities, Gains (losses) deferred, tax (provision)/benefit | -12 | -15 | -13 |
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit | $11 | $6 | $1 |
Consolidated_Financial_Positio
Consolidated Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Current assets: | |||
Cash and short-term investments | $7,341 | $6,081 | $5,490 |
Receivables - trade and other | 7,737 | 8,413 | 9,706 |
Receivables - finance | 9,027 | 8,763 | 8,860 |
Deferred and refundable income taxes | 1,739 | 1,553 | 1,547 |
Prepaid expenses and other current assets | 818 | 900 | 988 |
Inventories | 12,205 | 12,625 | 15,547 |
Total current assets | 38,867 | 38,335 | 42,138 |
Property, plant and equipment - net | 16,577 | 17,075 | 16,461 |
Long-term receivables - trade and other | 1,364 | 1,397 | 1,316 |
Long-term receivables - finance | 14,644 | 14,926 | 14,029 |
Investments in unconsolidated affiliated companies | 257 | 272 | 272 |
Noncurrent deferred and refundable income taxes | 1,404 | 594 | 2,011 |
Intangible assets | 3,076 | 3,596 | 4,016 |
Goodwill | 6,694 | 6,956 | 6,942 |
Other assets | 1,798 | 1,745 | 1,785 |
Total assets | 84,681 | 84,896 | 88,970 |
Short-term borrowings: | |||
Machinery, Energy & Transportation | 9 | 16 | 636 |
Financial Products | 4,699 | 3,663 | 4,651 |
Accounts payable | 6,515 | 6,560 | 6,753 |
Accrued expenses | 3,548 | 3,493 | 3,667 |
Accrued wages, salaries and employee benefits | 2,438 | 1,622 | 1,911 |
Customer advances | 1,697 | 2,360 | 2,638 |
Dividends payable | 424 | 382 | 0 |
Other current liabilities | 1,754 | 1,849 | 2,055 |
Long-term debt due within one year: | |||
Machinery, Energy & Transportation | 510 | 760 | 1,113 |
Financial Products | 6,283 | 6,592 | 5,991 |
Total current liabilities | 27,877 | 27,297 | 29,415 |
Long-term debt due after one year: | |||
Machinery, Energy & Transportation | 9,493 | 7,999 | 8,666 |
Financial Products | 18,291 | 18,720 | 19,086 |
Liability for postemployment benefits | 8,963 | 6,973 | 11,085 |
Other liabilities | 3,231 | 3,029 | 3,136 |
Total liabilities | 67,855 | 64,018 | 71,388 |
Commitments and contingencies (Notes 21 and 22) | |||
Stockholders' equity | |||
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (2014, 2013 and 2012 – 814,894,624 shares) at paid-in amount | 5,016 | 4,709 | 4,481 |
Treasury stock: (2014 – 208,728,065 shares; 2013 – 177,072,282 shares; and 2012 – 159,846,131 shares) at cost | -15,726 | -11,854 | -10,074 |
Profit employed in the business | 33,887 | 31,854 | 29,558 |
Accumulated other comprehensive income (loss) | -6,431 | -3,898 | -6,433 |
Noncontrolling interests | 80 | 67 | 50 |
Total stockholders' equity | 16,826 | 20,878 | 17,582 |
Total liabilities and stockholders' equity | $84,681 | $84,896 | $88,970 |
Consolidated_Financial_Positio1
Consolidated Financial Position (Parenthetical) (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | |||
Common Stock, par value (in dollars per share) | $1 | $1 | $1 |
Common Stock, Authorized shares | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Common Stock, Issued shares | 814,894,624 | 814,894,624 | 814,894,624 |
Treasury Stock, shares | 208,728,065 | 177,072,282 | 159,846,131 |
Changes_in_Consolidated_Stockh
Changes in Consolidated 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 | 5,722 | 0 | 0 | 5,681 | 0 | 41 | |
Foreign currency translation, net of tax | 60 | 0 | 0 | 0 | 83 | -23 | |
Pension and other postretirement benefits, net of tax | -280 | 0 | 0 | 0 | -285 | 5 | |
Derivative financial instruments, net of tax | -32 | 0 | 0 | 0 | -32 | 0 | |
Available-for-sale securities, net of tax | 23 | 0 | 0 | 0 | 22 | 1 | |
Change in ownership from noncontrolling interests | -4 | 0 | 0 | 0 | 0 | -4 | |
Dividends declared | -1,319 | 0 | 0 | -1,319 | 0 | 0 | |
Distribution to noncontrolling interests | -6 | 0 | 0 | 0 | 0 | -6 | |
Common shares issued from treasury stock for stock-based compensation: 10,106,542, 6,258,692 and 7,515,149 for the years ended December 31, 2014, 2013 and 2012, respectively | 52 | -155 | 207 | 0 | 0 | 0 | |
Stock-based compensation expense | 245 | 245 | 0 | 0 | 0 | 0 | |
Net excess tax benefits from stock-based compensation | 192 | 192 | 0 | 0 | 0 | 0 | |
Cat Japan share redemption | [1] | 0 | -74 | 0 | -23 | 107 | -10 |
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 | 3,803 | 0 | 0 | 3,789 | 0 | 14 | |
Foreign currency translation, net of tax | -277 | 0 | 0 | 0 | -280 | 3 | |
Pension and other postretirement benefits, net of tax | 2,762 | 0 | 0 | 0 | 2,762 | 0 | |
Derivative financial instruments, net of tax | 37 | 0 | 0 | 0 | 37 | 0 | |
Available-for-sale securities, net of tax | 16 | 0 | 0 | 0 | 16 | 0 | |
Change in ownership from noncontrolling interests | 7 | -6 | 0 | 0 | 0 | 13 | |
Dividends declared | -1,493 | 0 | 0 | -1,493 | 0 | 0 | |
Distribution to noncontrolling interests | -13 | 0 | 0 | 0 | 0 | -13 | |
Common shares issued from treasury stock for stock-based compensation: 10,106,542, 6,258,692 and 7,515,149 for the years ended December 31, 2014, 2013 and 2012, respectively | 128 | -92 | 220 | 0 | 0 | 0 | |
Stock-based compensation expense | 231 | 231 | 0 | 0 | 0 | 0 | |
Net excess tax benefits from stock-based compensation | 95 | 95 | 0 | 0 | 0 | 0 | |
Common shares repurchased: 41,762,325 and 23,484,843 shares for years ended December 31, 2014 and 2013, respectively | [2] | -2,000 | 0 | -2,000 | 0 | 0 | 0 |
Balance at Dec. 31, 2013 | 20,878 | 4,709 | -11,854 | 31,854 | -3,898 | 67 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Profit of consolidated and affiliated companies | 3,711 | 0 | 0 | 3,695 | 0 | 16 | |
Foreign currency translation, net of tax | -1,164 | 0 | 0 | 0 | -1,164 | 0 | |
Pension and other postretirement benefits, net of tax | -1,255 | 0 | 0 | 0 | -1,255 | 0 | |
Derivative financial instruments, net of tax | -114 | 0 | 0 | 0 | -114 | 0 | |
Available-for-sale securities, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | |
Change in ownership from noncontrolling interests | 4 | 0 | 0 | 0 | 0 | 4 | |
Dividends declared | -1,662 | 0 | 0 | -1,662 | 0 | 0 | |
Distribution to noncontrolling interests | -7 | 0 | 0 | 0 | 0 | -7 | |
Common shares issued from treasury stock for stock-based compensation: 10,106,542, 6,258,692 and 7,515,149 for the years ended December 31, 2014, 2013 and 2012, respectively | 239 | -127 | 366 | 0 | 0 | 0 | |
Stock-based compensation expense | 254 | 254 | 0 | 0 | 0 | 0 | |
Net excess tax benefits from stock-based compensation | 180 | 180 | 0 | 0 | 0 | 0 | |
Common shares repurchased: 41,762,325 and 23,484,843 shares for years ended December 31, 2014 and 2013, respectively | [2] | -4,238 | 0 | -4,238 | 0 | 0 | 0 |
Balance at Dec. 31, 2014 | $16,826 | $5,016 | ($15,726) | $33,887 | ($6,431) | $80 | |
[1] | 1Â See Note 25 regarding the Cat Japan share redemption. | ||||||
[2] | 2Â See Note 16 regarding shares repurchased. |
Changes_in_Consolidated_Stockh1
Changes in Consolidated Stockholders' Equity (Parenthetical) (Parentheticals) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Common shares issued from treasury stock for stock-based compensation (in shares) | 10,106,542 | 6,258,692 | 7,515,149 | ||||
Common shares repurchased (in shares) | 23,651,590 | 18,110,735 | 11,942,737 | 11,542,106 | 41,762,325 | 23,484,843 | 0 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flow | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | |
Cash flow from operating activities: | |||
Profit of consolidated and affiliated companies | $3,711 | $3,803 | $5,722 |
Adjustments for non-cash items: | |||
Depreciation and amortization | 3,163 | 3,087 | 2,813 |
Net (gain)/loss from sale of businesses and investments | 4 | -68 | -630 |
Goodwill impairment charge | 0 | 0 | 580 |
Other | 549 | 550 | 439 |
Changes in assets and liabilities, net of acquisitions and divestitures: | |||
Receivables - trade and other | 163 | 835 | -15 |
Inventories | 101 | 2,658 | -1,149 |
Accounts payable | 222 | 134 | -1,868 |
Accrued expenses | -10 | -108 | 126 |
Accrued wages, salaries and employee benefits | 901 | -279 | -490 |
Customer advances | -593 | -301 | 83 |
Other assets - net | -300 | -49 | 252 |
Other liabilities - net | 146 | -71 | -679 |
Net cash provided by (used for) operating activities | 8,057 | 10,191 | 5,184 |
Cash flow from investing activities: | |||
Capital expenditures - excluding equipment leased to others | -1,539 | -2,522 | -3,350 |
Expenditures for equipment leased to others | -1,840 | -1,924 | -1,726 |
Proceeds from disposals of leased assets and property, plant and equipment | 904 | 844 | 1,117 |
Additions to finance receivables | -11,278 | -11,422 | -12,010 |
Collections of finance receivables | 9,841 | 9,567 | 8,995 |
Proceeds from sale of finance receivables | 177 | 220 | 132 |
Investments and acquisitions (net of cash acquired) | -30 | -195 | -618 |
Proceeds from sale of businesses and investments (net of cash sold) | 199 | 365 | 1,199 |
Proceeds from sale of securities | 810 | 449 | 306 |
Investments in securities | -825 | -402 | -402 |
Other - net | -46 | -26 | 167 |
Net cash provided by (used for) investing activities | -3,627 | -5,046 | -6,190 |
Cash flow from financing activities: | |||
Dividends paid | -1,620 | -1,111 | -1,617 |
Distribution to noncontrolling interests | -7 | -13 | -6 |
Contribution from noncontrolling interests | 4 | 0 | 0 |
Common stock issued, including treasury shares reissued | 239 | 128 | 52 |
Treasury shares purchased | -4,238 | -2,000 | 0 |
Excess tax benefit from stock-based compensation | 182 | 96 | 192 |
Acquisitions of redeemable noncontrolling interests | 0 | 0 | -444 |
Acquisitions of noncontrolling interests | 0 | 0 | -5 |
Proceeds from debt issued (original maturities greater than three months): | |||
Machinery, Energy & Transportation | 1,994 | 195 | 2,209 |
Financial Products | 8,655 | 9,133 | 13,806 |
Payments on debt (original maturities greater than three months): | |||
Machinery, Energy & Transportation | -785 | -1,769 | -1,107 |
Financial Products | -8,463 | -9,101 | -9,940 |
Short-term borrowings - net (original maturities three months or less) | 1,043 | -69 | 466 |
Net cash provided by (used for) financing activities | -2,996 | -4,511 | 3,606 |
Effect of exchange rate changes on cash | -174 | -43 | -167 |
Increase (decrease) in cash and short-term investments | 1,260 | 591 | 2,433 |
Cash and short-term investments at beginning of period | 6,081 | 5,490 | 3,057 |
Cash and short-term investments at end of period | 7,341 | 6,081 | 5,490 |
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 |
Operations_and_summary_of_sign
Operations and summary of significant accounting policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Operations and summary of significant accounting policies | Operations and summary of significant accounting policies | ||||||||||||
A. | Nature of operations | ||||||||||||
Information in our financial statements and related commentary are presented in the following categories: | |||||||||||||
Machinery, Energy & Transportation – Represents the aggregate total of Construction Industries, Resource Industries, Energy & Transportation and All Other operating 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 Financial Insurance Services (Insurance Services) and their respective subsidiaries. | |||||||||||||
Our products are sold primarily under the brands “Caterpillar,” “CAT,” design versions of “CAT” and “Caterpillar,” “Electro-Motive,” “FG Wilson,” “MaK,” “MWM,” “Perkins,” “Progress Rail,” “SEM” and “Solar Turbines”. | |||||||||||||
We conduct operations in our Machinery, Energy & Transportation lines of business under highly competitive conditions, including intense price competition. We place great emphasis on the high quality and performance of our products and our dealers’ service support. Although no one competitor is believed to produce all of the same types of equipment that we do, there are numerous companies, large and small, which compete with us in the sale of each of our products. | |||||||||||||
Our machines are distributed principally through a worldwide organization of dealers (dealer network), 48 located in the United States and 129 located outside the United States, serving 182 countries and operating 3,580 places of business, including 1,267 dealer rental outlets. Reciprocating engines are sold principally through the dealer network and to other manufacturers for use in products. Some of the reciprocating engines manufactured by our subsidiary Perkins Engines Company Limited, are also sold through a worldwide network of 103 distributors located in 182 countries. Some of the electric power generation systems manufactured by our subsidiary Caterpillar Northern Ireland Limited, formerly known as F.G. Wilson Engineering Limited, are sold through its worldwide network of 264 distributors located in 145 countries. Some of the large, medium speed reciprocating engines are also sold under the MaK brand through a worldwide network of 19 distributors located in 130 countries. Our dealers do not deal exclusively with our products; however, in most cases sales and servicing of our products are the dealers’ principal business. Some products, primarily turbines and locomotives, are sold directly to end customers through sales forces employed by the company. At times, these employees are assisted by independent sales representatives. | |||||||||||||
The Financial Products line of business also conducts operations under highly competitive conditions. Financing for users of Caterpillar products is available through a variety of competitive sources, principally commercial banks and finance and leasing companies. We emphasize prompt and responsive service to meet customer requirements, and offer various financing plans designed to increase the opportunity for sales of our products and generate financing income for our company. A significant portion of Financial Products activity is conducted in North America, with additional offices in Asia/Pacific, Europe and Latin America. | |||||||||||||
B. | Basis of presentation | ||||||||||||
The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. | |||||||||||||
Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. See Note 9 for further discussion. | |||||||||||||
We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance, and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. | |||||||||||||
We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the entity's economic performance. Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Receivables - trade and other | $ | 36 | $ | 21 | $ | 23 | |||||||
Receivables - finance | 216 | 185 | 122 | ||||||||||
Long-term receivables - finance | 285 | 334 | 353 | ||||||||||
Investments in unconsolidated affiliated companies | 83 | 89 | 93 | ||||||||||
Guarantees | 129 | 151 | 176 | ||||||||||
Total | $ | 749 | $ | 780 | $ | 767 | |||||||
Shipping and handling costs are included in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation of equipment leased to others, Insurance Services’ underwriting expenses, gains (losses) on disposal of long-lived assets and business divestitures, long-lived asset impairment charges, legal settlements, employee separation charges and benefit plan curtailment, settlement and contractual termination benefits. | |||||||||||||
Prepaid expenses and other current assets in Statement 3 include prepaid rent, prepaid insurance, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments, and other prepaid items. | |||||||||||||
Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation. | |||||||||||||
C. | Sales and revenue recognition | ||||||||||||
Sales of Machinery, Energy & Transportation are recognized and earned when all the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) price is fixed and determinable; (c) collectibility is reasonably assured; and (d) delivery has occurred. Persuasive evidence of an arrangement and a fixed or determinable price exist once we receive an order or contract from a customer or independently owned and operated dealer. We assess collectibility at the time of the sale and if collectibility is not reasonably assured, the sale is deferred and not recognized until collectibility is probable or payment is received. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when the product is shipped. Products that are exported from a country for sale typically pass title and risk of ownership at the border of the destination country. | |||||||||||||
Sales of certain turbine machinery units, draglines, large shovels and long wall roof supports are recognized under accounting for construction-type contracts, primarily using the percentage-of-completion method. Revenue is recognized based upon progress towards completion, which is estimated and continually updated over the course of construction. We provide for any loss that we expect to incur on these contracts when that loss is probable. | |||||||||||||
Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, used engines and related components (core) are inspected, cleaned and remanufactured. In connection with the sale of most of our remanufactured product, we collect a deposit from the dealer that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and customers. Revenue is recognized pursuant to the same criteria as Machinery, Energy & Transportation sales noted above (title to the entire remanufactured product passes to the dealer upon sale). At the time of sale, the deposit is recognized in Other current liabilities in Statement 3. In addition, the core to be returned is recognized as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with useable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. The returned core is then included in inventory. In the event that the deposit is forfeited (i.e. upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. | |||||||||||||
No right of return exists on sales of equipment. Replacement part returns are estimable and accrued at the time a sale is recognized. | |||||||||||||
We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. The cost of these discounts is estimated based on historical experience and known changes in merchandising programs and is reported as a reduction to sales when the product sale is recognized. | |||||||||||||
Our standard dealer invoice terms are established by marketing region. Our invoice terms for end-user customer sales are established by the responsible business unit. When a sale is made to a dealer, the dealer is responsible for payment even if the product is not sold to an end customer. Dealers and customers must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In 2014 and 2013, terms were extended to not more than one year for $624 million and $706 million of receivables, respectively, which represent approximately 1 percent of consolidated sales. In 2012, terms were extended to not more than one year for $354 million of receivables, which represent less than 1 percent of consolidated sales. | |||||||||||||
We establish a bad debt allowance for Machinery, Energy & Transportation receivables when it becomes probable that the receivable will not be collected. Our allowance for bad debts is not significant. | |||||||||||||
Revenues of Financial Products primarily represent the following Cat Financial revenues: | |||||||||||||
• | Retail finance revenue on finance leases and installment sale contracts is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance. Revenue on retail notes is recognized based on the daily balance of retail receivables outstanding and the applicable effective interest rate. | ||||||||||||
• | Operating lease revenue is recorded on a straight-line basis in the period earned over the life of the contract. | ||||||||||||
• | Cat Financial provides wholesale inventory financing to dealers. Wholesale finance revenue on finance leases and installment sale contracts related to financing dealer inventory and rental fleets is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance. Revenue on wholesale notes is recognized based on the daily balance of wholesale receivables outstanding and the applicable effective interest rate. | ||||||||||||
• | Loan origination and commitment fees are deferred and amortized to revenue using the interest method over the life of the finance receivables. | ||||||||||||
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 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. See Note 6 for more information. | |||||||||||||
Sales and revenues are presented net of sales and other related taxes. | |||||||||||||
D. | Inventories | ||||||||||||
Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2014, 2013 and 2012. | |||||||||||||
If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,430 million, $2,504 million and $2,750 million higher than reported at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
E. | Depreciation and amortization | ||||||||||||
Depreciation of plant and equipment is computed principally using accelerated methods. Depreciation on equipment leased to others, primarily for Financial Products, is computed using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2014, 2013 and 2012, Cat Financial depreciation on equipment leased to others was $872 million, $768 million and $688 million, respectively, and was included in Other operating (income) expenses in Statement 1. In 2014, 2013 and 2012, consolidated depreciation expense was $2,795 million, $2,710 million and $2,421 million, respectively. Amortization of purchased finite-lived intangibles is computed principally using the straight-line method, generally not to exceed a period of 20 years. | |||||||||||||
F. | Foreign currency translation | ||||||||||||
The functional currency for most of our Machinery, Energy & Transportation consolidated companies is the U.S. dollar. The functional currency for most of our Financial Products and affiliates accounted for under the equity method is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in Statement 1. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income (loss) in Statement 3. | |||||||||||||
G. | Derivative financial instruments | ||||||||||||
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. All derivatives are recorded at fair value. See Note 3 for more information. | |||||||||||||
H. | Income taxes | ||||||||||||
The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. | |||||||||||||
I. | Goodwill | ||||||||||||
For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate the fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, goodwill is reassigned to the affected reporting units based on their relative fair values. | |||||||||||||
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. See Note 10 for further details. | |||||||||||||
J. | Estimates in financial statements | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets, fair values for goodwill impairment tests, impairment of available-for-sale securities, warranty liability, stock-based compensation and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes. | |||||||||||||
K. | New accounting guidance | ||||||||||||
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 Financial Accounting Standards Board (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 was effective January 1, 2014 and did not 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 was effective January 1, 2014 and did not have a material impact on our financial statements. | |||||||||||||
Reporting discontinued operations and disclosures of disposals of components of an entity – In April 2014, the FASB issued accounting guidance for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. This guidance is effective January 1, 2015. We do not expect the adoption to have a material impact on our financial statements. | |||||||||||||
Revenue recognition – In May 2014, the FASB issued new revenue recognition guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. Under the new guidance, an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. A five step model has been introduced for an entity to apply when recognizing revenue. The new guidance also includes enhanced disclosure requirements, and is effective January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statement of Changes in Stockholders' Equity. We are in the process of evaluating the application and implementation of the new guidance. |
Stockbased_compensation
Stock-based compensation | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | ||||||||||||||||||||||||||
Our stock-based compensation plans primarily provide for the granting of stock options, stock-settled stock appreciation rights (SARs) and restricted stock units (RSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stock’s price when the option was granted. SARs permit a holder the right to receive the value in shares of the appreciation in Caterpillar stock that occurred from the date the right was granted up to the date of exercise. A restricted stock unit (RSU) is an agreement to issue shares of Caterpillar stock at the time of vesting. | |||||||||||||||||||||||||||
Our long-standing practices and policies specify all stock-based compensation awards are approved by the Compensation Committee (the Committee) of the Board of Directors on the date of grant. The stock-based award approval process specifies the number of awards granted, the terms of the award and the grant date. The same terms and conditions are consistently applied to all employee grants, including Officers. The Committee approves all individual Officer grants. The number of stock-based compensation awards included in an individual’s award is determined based on the methodology approved by the Committee. In 2007, under the terms of the Caterpillar Inc. 2006 Long-Term Incentive Plan (approved by stockholders in June of 2006), the Compensation Committee approved the exercise price methodology to be the closing price of the Company stock on the date of the grant. | |||||||||||||||||||||||||||
Common stock issued from Treasury stock under the plans totaled 10,106,542 for 2014, 6,258,692 for 2013 and 7,515,149 for 2012. | |||||||||||||||||||||||||||
Awards generally vest three years after the date of grant. At grant, SARs and option awards have a term life of ten years. Upon separation from service, if the participant is 55 years of age or older with more than five years of service, the participant meets the criteria for a “Long Service Separation”. If the “Long Service Separation” criteria are met, the vested options/SARs will have a life that is the lesser of ten years from the original grant date or five years from the separation date. | |||||||||||||||||||||||||||
Our stock-based compensation plans allow for the immediate vesting upon separation for employees who meet the criteria for a “Long Service Separation” and who have fulfilled the requisite service period of six months. Compensation expense is recognized over the period from the grant date to the end date of the requisite service period for employees who meet the immediate vesting upon retirement requirements. For those employees who become eligible for immediate vesting upon retirement subsequent to the requisite service period and prior to the completion of the vesting period, compensation expense is recognized over the period from grant date to the date eligibility is achieved. | |||||||||||||||||||||||||||
Accounting guidance on share-based payments requires companies to estimate the fair value of options/SARs on the date of grant using an option-pricing model. The fair value of our option/SAR grants was estimated using a lattice-based option-pricing model. The lattice-based option-pricing model considers a range of assumptions related to volatility, risk-free interest rate and historical employee behavior. Expected volatility was based on historical Caterpillar stock price movement and current implied volatilities from traded options on Caterpillar stock. The risk-free rate was based on U.S. Treasury security yields at the time of grant. The weighted-average dividend yield was based on historical information. The expected life was determined from the lattice-based model. The lattice-based model incorporated exercise and post vesting forfeiture assumptions based on analysis of historical data. The following table provides the assumptions used in determining the fair value of the stock-based awards for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
Grant Year | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Weighted-average dividend yield | 2.2 | % | 2.1 | % | 2.2 | % | |||||||||||||||||||||
Weighted-average volatility | 28.2 | % | 30.6 | % | 35 | % | |||||||||||||||||||||
Range of volatilities | 18.4-36.2% | 23.4-40.6% | 33.3-40.4% | ||||||||||||||||||||||||
Range of risk-free interest rates | 0.12-2.60% | 0.16-1.88% | 0.17-2.00% | ||||||||||||||||||||||||
Weighted-average expected lives | 8 years | 8 years | 7 years | ||||||||||||||||||||||||
The fair value of the RSU grant was determined by reducing the stock price on the date of grant by the present value of the estimated dividends to be paid during the vesting period. The estimated dividends are based on Caterpillar’s dividend yield at the time of the grant. | |||||||||||||||||||||||||||
The amount of stock-based compensation expense capitalized for the years ended December 31, 2014, 2013 and 2012 did not have a significant impact on our financial statements. | |||||||||||||||||||||||||||
At December 31, 2014, there was $193 million of total unrecognized compensation cost from stock-based compensation arrangements granted under the plans, which is related to non-vested stock-based awards. The compensation expense is expected to be recognized over a weighted-average period of approximately 1.8 years. | |||||||||||||||||||||||||||
Please refer to Tables I and II below for additional information on our stock-based awards. | |||||||||||||||||||||||||||
TABLE I — Financial Information Related to Stock-based Compensation | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Stock options/SARs activity: | |||||||||||||||||||||||||||
Outstanding at beginning of year | 43,375,747 | $ | 65.03 | 45,827,599 | $ | 59.45 | 50,372,991 | $ | 53.01 | ||||||||||||||||||
Granted to officers and key employees 1 | 4,448,218 | $ | 96.31 | 4,276,060 | $ | 89.75 | 3,318,188 | $ | 110.09 | ||||||||||||||||||
Exercised | (13,026,311 | ) | $ | 50.27 | (6,476,082 | ) | $ | 41.1 | (7,708,343 | ) | $ | 38.73 | |||||||||||||||
Forfeited / expired | (216,571 | ) | $ | 85.93 | (251,830 | ) | $ | 84.64 | (155,237 | ) | $ | 67.5 | |||||||||||||||
Outstanding at end of year | 34,581,083 | $ | 74.48 | 43,375,747 | $ | 65.03 | 45,827,599 | $ | 59.45 | ||||||||||||||||||
Exercisable at year-end | 23,991,377 | $ | 64.46 | 34,200,054 | $ | 55.93 | 33,962,000 | $ | 51.75 | ||||||||||||||||||
RSUs activity: | |||||||||||||||||||||||||||
Outstanding at beginning of year | 3,823,328 | 3,580,220 | 4,281,490 | ||||||||||||||||||||||||
Granted to officers and key employees | 1,429,512 | 1,614,870 | 1,429,939 | ||||||||||||||||||||||||
Vested | (1,081,304 | ) | (1,286,934 | ) | (2,077,485 | ) | |||||||||||||||||||||
Forfeited | (87,400 | ) | (84,828 | ) | (53,724 | ) | |||||||||||||||||||||
Outstanding at end of year | 4,084,136 | 3,823,328 | 3,580,220 | ||||||||||||||||||||||||
Stock options/SARs outstanding and exercisable: | |||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||
Exercise Prices | Shares Outstanding at 12/31/14 | Weighted- | Weighted- | Aggregate | Shares Outstanding at 12/31/14 | Weighted- | Weighted- | Aggregate | |||||||||||||||||||
Average | Average | Intrinsic Value 2 | Average | Average | Intrinsic Value 2 | ||||||||||||||||||||||
Remaining | Exercise Price | Remaining | Exercise Price | ||||||||||||||||||||||||
Contractual Life (Years) | Contractual Life (Years) | ||||||||||||||||||||||||||
$22.17 - 45.64 | 4,740,246 | 3.01 | $ | 28.93 | $ | 301 | 4,740,246 | 3.01 | $ | 28.93 | $ | 301 | |||||||||||||||
$57.85 - 63.04 | 7,634,038 | 4.31 | $ | 59.33 | 253 | 7,634,038 | 4.31 | $ | 59.33 | 253 | |||||||||||||||||
$66.77 - 73.20 | 7,744,932 | 2.02 | $ | 72.51 | 155 | 7,744,932 | 2.02 | $ | 72.51 | 155 | |||||||||||||||||
$86.77 - 89.75 | 4,195,185 | 8.06 | $ | 89.68 | 12 | 420,340 | 8.15 | $ | 89.75 | 1 | |||||||||||||||||
$96.31 - 110.09 | 10,266,682 | 7.76 | $ | 102.04 | — | 3,451,821 | 6.4 | $ | 103.43 | — | |||||||||||||||||
34,581,083 | $ | 74.48 | $ | 721 | 23,991,377 | $ | 64.46 | $ | 710 | ||||||||||||||||||
1 | No SARs were granted during the years ended December 31, 2014, 2013 or 2012. | ||||||||||||||||||||||||||
2 | The difference between a stock award’s exercise price and the underlying stock’s market price at December 31, 2014, for awards with market price greater than the exercise price. Amounts are in millions of dollars. | ||||||||||||||||||||||||||
The computations of weighted-average exercise prices and aggregate intrinsic values are not applicable to RSUs since an RSU represents an agreement to issue shares of stock at the time of vesting. At December 31, 2014, there were 4,084,136 outstanding RSUs with a weighted average remaining contractual life of 1.2 years. | |||||||||||||||||||||||||||
TABLE II— Additional Stock-based Award Information | |||||||||||||||||||||||||||
(Dollars in millions except per share data) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Stock options/SARs activity: | |||||||||||||||||||||||||||
Weighted-average fair value per share of stock awards granted | $ | 29.52 | $ | 28.34 | $ | 39.2 | |||||||||||||||||||||
Intrinsic value of stock awards exercised | $ | 649 | $ | 312 | $ | 488 | |||||||||||||||||||||
Fair value of stock awards vested | $ | 108 | $ | 167 | $ | 66 | |||||||||||||||||||||
Cash received from stock awards exercised | $ | 259 | $ | 152 | $ | 112 | |||||||||||||||||||||
RSUs activity: | |||||||||||||||||||||||||||
Weighted-average fair value per share of stock awards granted | $ | 89.18 | $ | 84.05 | $ | 104.61 | |||||||||||||||||||||
Fair value of stock awards vested | $ | 106 | $ | 117 | $ | 229 | |||||||||||||||||||||
Before tax, stock-based compensation expense for 2014, 2013 and 2012 was $254 million, $231 million and $245 million, respectively, with a corresponding income tax benefit of $79 million, $73 million and $78 million, respectively. | |||||||||||||||||||||||||||
In accordance with guidance on share-based payments, we classify stock-based compensation within Cost of goods sold, Selling, general and administrative expenses and Research and development expenses corresponding to the same line item as the cash compensation paid to respective employees, officers and non-employee directors. | |||||||||||||||||||||||||||
We currently use shares in treasury stock to satisfy share award exercises. | |||||||||||||||||||||||||||
The cash tax benefits realized from stock awards exercised for 2014, 2013 and 2012 were $253 million, $127 million and $217 million, respectively. We use the direct only method and tax law ordering approach to calculate the tax effects of stock-based compensation. In certain jurisdictions, tax deductions for exercises of stock-based awards did not generate a cash benefit. A tax benefit of approximately $26 million will be recorded in additional paid-in capital when these deductions reduce our future income taxes payable. |
Derivative_financial_instrumen
Derivative financial instruments and risk management | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
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 in Statement 3 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, in Statement 3 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 Statement 5. Cash flow from undesignated derivative financial instruments are included in the investing category on Statement 5. | ||||||||||||||||||||||||||
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 in Statement 3 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. | ||||||||||||||||||||||||||
A. | 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, Energy & Transportation 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, Energy & Transportation foreign currency contracts are undesignated, including any hedges designed to protect our competitive exposure. | ||||||||||||||||||||||||||
As of December 31, 2014, $68 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), are expected to be reclassified to current earnings (Other income (expense) in Statement 1) 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. | ||||||||||||||||||||||||||
B. | 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. | ||||||||||||||||||||||||||
Our Machinery, Energy & Transportation 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. We designate fixed-to-floating interest rate swaps as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract. | ||||||||||||||||||||||||||
As of December 31, 2014, $4 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in Statement 1) over the next twelve months. | ||||||||||||||||||||||||||
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 December 31, 2014, $1 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in Statement 1) 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, Energy & Transportation 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. | ||||||||||||||||||||||||||
C. | 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, Energy & Transportation 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 Statement 3 are as follows: | ||||||||||||||||||||||||||
Consolidated | Asset (Liability) Fair Value | |||||||||||||||||||||||||
Statement of Financial Position Location | ||||||||||||||||||||||||||
(Millions of dollars) | Years ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Designated derivatives | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Receivables — trade and other | $ | 25 | $ | 54 | $ | 28 | |||||||||||||||||||
Machinery, Energy & Transportation | Accrued expenses | (134 | ) | (39 | ) | (66 | ) | |||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Receivables — trade and other | 6 | 7 | 17 | ||||||||||||||||||||||
Financial Products | Long-term receivables — trade and other | 73 | 115 | 209 | ||||||||||||||||||||||
Financial Products | Accrued expenses | (8 | ) | (6 | ) | (8 | ) | |||||||||||||||||||
$ | (38 | ) | $ | 131 | $ | 180 | ||||||||||||||||||||
Undesignated derivatives | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Receivables — trade and other | $ | 2 | $ | 19 | $ | 31 | |||||||||||||||||||
Machinery, Energy & Transportation | Accrued expenses | (43 | ) | (1 | ) | (63 | ) | |||||||||||||||||||
Financial Products | Receivables — trade and other | 5 | 7 | 10 | ||||||||||||||||||||||
Financial Products | Long-term receivables — trade and other | 17 | 9 | — | ||||||||||||||||||||||
Financial Products | Accrued expenses | (15 | ) | (4 | ) | (6 | ) | |||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Receivables — trade and other | — | — | 2 | ||||||||||||||||||||||
Financial Products | Accrued expenses | — | — | (1 | ) | |||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Receivables — trade and other | — | — | 1 | ||||||||||||||||||||||
Machinery, Energy & Transportation | Accrued expenses | (14 | ) | — | — | |||||||||||||||||||||
$ | (48 | ) | $ | 30 | $ | (26 | ) | |||||||||||||||||||
The total notional amounts of the derivative instruments are as follows: | ||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 3,128 | $ | 3,565 | $ | 4,438 | ||||||||||||||||||||
Financial Products | $ | 5,249 | $ | 6,743 | $ | 9,817 | ||||||||||||||||||||
The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. The amounts exchanged by the parties are calculated by reference to the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates, or commodity prices. | ||||||||||||||||||||||||||
The effect of derivatives designated as hedging instruments on Statement 1 is as follows: | ||||||||||||||||||||||||||
Fair Value Hedges | Year ended December 31, 2014 | |||||||||||||||||||||||||
(Millions of dollars) | Classification | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||||
on Derivatives | on Borrowings | |||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (41 | ) | $ | 23 | ||||||||||||||||||||
$ | (41 | ) | $ | 23 | ||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
on Derivatives | on Borrowings | |||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (107 | ) | $ | 114 | ||||||||||||||||||||
$ | (107 | ) | $ | 114 | ||||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
on Derivatives | on Borrowings | |||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Other income (expense) | (20 | ) | 36 | ||||||||||||||||||||||
$ | (20 | ) | $ | 36 | ||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | |||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||
Amount of | Classification of | Amount of Gains (Losses) Reclassified from AOCI to Earnings | Recognized in Earnings (Ineffective Portion) | |||||||||||||||||||||||
Gains (Losses) Recognized in AOCI (Effective Portion) | Gains (Losses) | |||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | $ | (118 | ) | Other income (expense) | $ | 5 | $ | — | ||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | (63 | ) | Interest expense excluding Financial Products | (5 | ) | — | ||||||||||||||||||||
Financial Products | (6 | ) | Interest expense of Financial Products | (6 | ) | — | ||||||||||||||||||||
$ | (187 | ) | $ | (6 | ) | $ | — | |||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||
Amount of | Classification of | Amount of | Recognized in Earnings (Ineffective Portion) | |||||||||||||||||||||||
Gains (Losses) Recognized in AOCI (Effective Portion) | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
Reclassified | ||||||||||||||||||||||||||
from AOCI to | ||||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | $ | (4 | ) | Other income (expense) | $ | (57 | ) | 2 | $ | — | ||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | — | Other income (expense) | (3 | ) | — | |||||||||||||||||||||
Financial Products | (2 | ) | Interest expense of Financial Products | (6 | ) | 1 | 1 | |||||||||||||||||||
$ | (6 | ) | $ | (66 | ) | $ | 1 | |||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||
Amount of | Classification of | Amount of | Recognized in Earnings (Ineffective Portion) | |||||||||||||||||||||||
Gains (Losses) Recognized in AOCI (Effective Portion) | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
Reclassified | ||||||||||||||||||||||||||
from AOCI to | ||||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | $ | (78 | ) | Other income (expense) | $ | (30 | ) | 2 | $ | — | ||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | 1 | Interest expense of Financial Products | 4 | (1 | ) | 1 | ||||||||||||||||||||
$ | (77 | ) | $ | (26 | ) | $ | (1 | ) | ||||||||||||||||||
1 | The ineffective portion recognized in earnings is included in Other income (expense). | |||||||||||||||||||||||||
2 | Includes $3 million and $7 million of losses reclassified from AOCI to Other income (expense) in 2013 and 2012, respectively 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 Statement 1 is as follows: | ||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||
(Millions of dollars) | Classification of Gains (Losses) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Other income (expense) | $ | (60 | ) | $ | 17 | $ | 62 | ||||||||||||||||||
Financial Products | Other income (expense) | (47 | ) | 8 | 6 | |||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Other income (expense) | 2 | (1 | ) | 2 | |||||||||||||||||||||
Financial Products | Other income (expense) | — | (3 | ) | — | |||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Other income (expense) | (15 | ) | (3 | ) | 2 | ||||||||||||||||||||
$ | (120 | ) | $ | 18 | $ | 72 | ||||||||||||||||||||
We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within Machinery, Energy & Transportation 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 December 31, 2014, 2013 and 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: | ||||||||||||||||||||||||||
December 31, 2014 | 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, Energy & Transportation | $ | 27 | $ | — | $ | 27 | $ | (27 | ) | $ | — | $ | — | |||||||||||||
Financial Products | 101 | — | 101 | (8 | ) | — | 93 | |||||||||||||||||||
Total | $ | 128 | $ | — | $ | 128 | $ | (35 | ) | $ | — | $ | 93 | |||||||||||||
December 31, 2014 | 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, Energy & Transportation | $ | (191 | ) | $ | — | $ | (191 | ) | $ | 27 | $ | — | $ | (164 | ) | |||||||||||
Financial Products | (23 | ) | — | (23 | ) | 8 | — | (15 | ) | |||||||||||||||||
Total | $ | (214 | ) | $ | — | $ | (214 | ) | $ | 35 | $ | — | $ | (179 | ) | |||||||||||
December 31, 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, Energy & Transportation | $ | 73 | $ | — | $ | 73 | $ | (32 | ) | $ | — | $ | 41 | |||||||||||||
Financial Products | 138 | — | 138 | (9 | ) | — | 129 | |||||||||||||||||||
Total | $ | 211 | $ | — | $ | 211 | $ | (41 | ) | $ | — | $ | 170 | |||||||||||||
December 31, 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, Energy & Transportation | $ | (40 | ) | $ | — | $ | (40 | ) | $ | 32 | $ | — | $ | (8 | ) | |||||||||||
Financial Products | (10 | ) | — | (10 | ) | 9 | — | (1 | ) | |||||||||||||||||
Total | $ | (50 | ) | $ | — | $ | (50 | ) | $ | 41 | $ | — | $ | (9 | ) | |||||||||||
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, Energy & Transportation | $ | 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, Energy & Transportation | $ | (129 | ) | $ | — | $ | (129 | ) | $ | 59 | $ | — | $ | (70 | ) | |||||||||||
Financial Products | (15 | ) | — | (15 | ) | 12 | — | (3 | ) | |||||||||||||||||
Total | $ | (144 | ) | $ | — | $ | (144 | ) | $ | 71 | $ | — | $ | (73 | ) | |||||||||||
Other_income_expense
Other income (expense) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other income (expense) | Other income (expense) | ||||||||||||
Years ended December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Investment and interest income | $ | 66 | $ | 84 | $ | 82 | |||||||
Foreign exchange gains (losses) 1 | 54 | (254 | ) | (116 | ) | ||||||||
License fee income | 128 | 114 | 99 | ||||||||||
Gains (losses) on sale of securities and affiliated companies | 36 | 21 | 4 | ||||||||||
Miscellaneous income (loss) | (45 | ) | — | 61 | |||||||||
Total | $ | 239 | $ | (35 | ) | $ | 130 | ||||||
1 | Includes gains (losses) from foreign exchange derivative contracts. See Note 3 for further details. | ||||||||||||
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||
Income taxes | Income taxes | ||||||||||||||||||||||||||
The components of profit before taxes were: | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
U.S. | $ | 2,022 | $ | 1,938 | $ | 4,090 | |||||||||||||||||||||
Non-U.S. | 3,061 | 3,190 | 4,146 | ||||||||||||||||||||||||
$ | 5,083 | $ | 5,128 | $ | 8,236 | ||||||||||||||||||||||
Profit before taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. | |||||||||||||||||||||||||||
The components of the provision (benefit) for income taxes were: | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Current tax provision (benefit): | |||||||||||||||||||||||||||
U.S. | $ | 715 | $ | 407 | $ | 971 | |||||||||||||||||||||
Non-U.S. | 883 | 805 | 1,250 | ||||||||||||||||||||||||
State (U.S.) | 48 | 33 | 56 | ||||||||||||||||||||||||
1,646 | 1,245 | 2,277 | |||||||||||||||||||||||||
Deferred tax provision (benefit): | |||||||||||||||||||||||||||
U.S. | (167 | ) | 79 | 332 | |||||||||||||||||||||||
Non-U.S. | (77 | ) | (7 | ) | (89 | ) | |||||||||||||||||||||
State (U.S.) | (22 | ) | 2 | 8 | |||||||||||||||||||||||
(266 | ) | 74 | 251 | ||||||||||||||||||||||||
Total provision (benefit) for income taxes | $ | 1,380 | $ | 1,319 | $ | 2,528 | |||||||||||||||||||||
We paid net income tax and related interest of $1,595 million, $1,544 million and $2,396 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
Reconciliation of the U.S. federal statutory rate to effective rate: | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Taxes at U.S. statutory rate | $ | 1,779 | 35 | % | $ | 1,795 | 35 | % | $ | 2,882 | 35 | % | |||||||||||||||
(Decreases) increases in taxes resulting from: | |||||||||||||||||||||||||||
Non-U.S. subsidiaries taxed at other than 35% | (249 | ) | (4.9 | )% | (268 | ) | (5.2 | )% | (342 | ) | (4.2 | )% | |||||||||||||||
State and local taxes, net of federal | 17 | 0.3 | % | 23 | 0.4 | % | 55 | 0.7 | % | ||||||||||||||||||
Interest and penalties, net of tax | 12 | 0.2 | % | 4 | 0.1 | % | 22 | 0.3 | % | ||||||||||||||||||
U.S. research and production incentives | (125 | ) | (2.4 | )% | (91 | ) | (1.8 | )% | (80 | ) | (1.0 | )% | |||||||||||||||
Other—net | (10 | ) | (0.2 | )% | (2 | ) | — | % | (27 | ) | (0.3 | )% | |||||||||||||||
1,424 | 28 | % | 1,461 | 28.5 | % | 2,510 | 30.5 | % | |||||||||||||||||||
Prior year tax and interest adjustments | (21 | ) | (0.4 | )% | (55 | ) | (1.1 | )% | (300 | ) | (3.7 | )% | |||||||||||||||
Nondeductible goodwill | — | — | % | — | — | % | 318 | 3.9 | % | ||||||||||||||||||
Release of valuation allowances | (23 | ) | (0.5 | )% | — | — | % | — | — | % | |||||||||||||||||
Tax law changes | — | — | % | (87 | ) | (1.7 | )% | — | — | % | |||||||||||||||||
Provision (benefit) for income taxes | $ | 1,380 | 27.1 | % | $ | 1,319 | 25.7 | % | $ | 2,528 | 30.7 | % | |||||||||||||||
The provision for income taxes for 2014 included a benefit of $23 million for the release of a valuation allowance against the deferred tax assets of a non-U.S. subsidiary and a net benefit of $21 million to adjust prior years' U.S. taxes and interest. The net benefit for prior years' U.S. taxes and interest included a $33 million benefit to reflect a settlement with the U.S. Internal Revenue Service (IRS) related to 1992 through 1994 which resulted in a $16 million benefit to remeasure previously unrecognized tax benefits and a $17 million benefit to adjust related interest, net of tax. This benefit of $33 million was offset by a net charge of $12 million to adjust prior years' U.S. taxes that included a charge of $55 million to correct for an error which resulted in an understatement of tax liabilities for prior years. Management has concluded that the error was not material to any period presented. | |||||||||||||||||||||||||||
The provision for income taxes for 2013 included a $87 million benefit primarily related to the research and development tax credit that was retroactively extended in 2013 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. | |||||||||||||||||||||||||||
The provision for income taxes for 2012 included a $300 million benefit for adjusting prior year taxes and interest primarily to reflect a settlement reached with the U.S. Internal Revenue Service (IRS) for tax years 2000 to 2006. The largest drivers of the settlement benefit were a $188 million benefit to remeasure and recognize previously unrecognized tax benefits and a $96 million benefit to adjust related interest and penalties, net of tax. This benefit was offset by a negative impact from nondeductible goodwill of $203 million related to the ERA Mining Machinery Limited (Siwei) goodwill impairment and $115 million related to the divestiture of portions of the Bucyrus distribution business. See Note 10 and Note 26 for more information. | |||||||||||||||||||||||||||
We have recorded income tax expense at U.S. tax rates on all profits, except for undistributed profits of non-U.S. subsidiaries of approximately $18 billion which are considered indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible. If management intentions or U.S. tax law changes in the future, there may be a significant negative impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. | |||||||||||||||||||||||||||
Accounting for income taxes under U.S. GAAP requires that individual tax-paying entities of the company offset all current deferred tax liabilities and assets within each particular tax jurisdiction and present them as a single amount in the Consolidated Financial Position. A similar procedure is followed for all noncurrent deferred tax liabilities and assets. Amounts in different tax jurisdictions cannot be offset against each other. The amount of deferred income taxes at December 31, included on the following lines in Statement 3, are as follows: | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deferred and refundable income taxes | $ | 992 | $ | 877 | $ | 979 | |||||||||||||||||||||
Noncurrent deferred and refundable income taxes | 1,267 | 456 | 1,863 | ||||||||||||||||||||||||
2,259 | 1,333 | 2,842 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Other current liabilities | 62 | 86 | 66 | ||||||||||||||||||||||||
Other liabilities | 414 | 447 | 484 | ||||||||||||||||||||||||
Deferred income taxes—net | $ | 1,783 | $ | 800 | $ | 2,292 | |||||||||||||||||||||
Deferred income tax assets and liabilities: | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Deferred income tax assets: | |||||||||||||||||||||||||||
Pension | $ | 1,513 | $ | 903 | $ | 2,100 | |||||||||||||||||||||
Postemployment benefits other than pensions | 1,514 | 1,435 | 1,678 | ||||||||||||||||||||||||
Tax carryforwards | 826 | 760 | 663 | ||||||||||||||||||||||||
Warranty reserves | 346 | 313 | 358 | ||||||||||||||||||||||||
Stock-based compensation | 327 | 320 | 281 | ||||||||||||||||||||||||
Inventory | 123 | 112 | 195 | ||||||||||||||||||||||||
Allowance for credit losses | 198 | 184 | 170 | ||||||||||||||||||||||||
Post sale discounts | 175 | 146 | 141 | ||||||||||||||||||||||||
Deferred compensation | 132 | 126 | 110 | ||||||||||||||||||||||||
Other—net | 549 | 524 | 491 | ||||||||||||||||||||||||
5,703 | 4,823 | 6,187 | |||||||||||||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||||||||||||
Capital and intangible assets | (2,625 | ) | (2,815 | ) | (2,759 | ) | |||||||||||||||||||||
Bond discount | (233 | ) | (240 | ) | (249 | ) | |||||||||||||||||||||
Translation | (252 | ) | (133 | ) | (173 | ) | |||||||||||||||||||||
Undistributed profits of non-U.S. subsidiaries | (69 | ) | (90 | ) | (128 | ) | |||||||||||||||||||||
(3,179 | ) | (3,278 | ) | (3,309 | ) | ||||||||||||||||||||||
Valuation allowance for deferred tax assets | (741 | ) | (745 | ) | (586 | ) | |||||||||||||||||||||
Deferred income taxes—net | $ | 1,783 | $ | 800 | $ | 2,292 | |||||||||||||||||||||
At December 31, 2014, approximately $568 million of U.S. state tax net operating losses (NOLs) and $158 million of U.S. state tax credit carryforwards were available. The state NOLs primarily expire between 2015 and 2034. The state tax credit carryforwards primarily expire over the next five years with certain carryforwards set to expire over the next fifteen years. We established a valuation allowance of $162 million for those state NOLs and credit carryforwards that are more likely than not to expire prior to utilization. | |||||||||||||||||||||||||||
At December 31, 2014, approximately $61 million of U.S. foreign tax credits were available for carryforward. These credits expire in 2025. | |||||||||||||||||||||||||||
At December 31, 2014, amounts and expiration dates of net operating loss carryforwards in various non-U.S. taxing jurisdictions were: | |||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019-2035 | Unlimited | Total | |||||||||||||||||||||
$ | 7 | $ | 5 | $ | 14 | $ | 96 | $ | 700 | $ | 1,389 | $ | 2,211 | ||||||||||||||
At December 31, 2014 a valuation allowance of $579 million has been recorded at certain non-U.S. entities that have not yet demonstrated consistent and/or sustainable profitability to support the realization of net deferred tax assets. | |||||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, follows. | |||||||||||||||||||||||||||
Reconciliation of unrecognized tax benefits: 1 | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Balance at January 1, | $ | 759 | $ | 715 | $ | 958 | |||||||||||||||||||||
Additions for tax positions related to current year | 58 | 63 | 64 | ||||||||||||||||||||||||
Additions for tax positions related to prior years | 84 | 52 | 178 | ||||||||||||||||||||||||
Reductions for tax positions related to prior years | (31 | ) | (31 | ) | (266 | ) | |||||||||||||||||||||
Reductions for settlements 2 | (18 | ) | (15 | ) | (191 | ) | |||||||||||||||||||||
Reductions for expiration of statute of limitations | (6 | ) | (25 | ) | (28 | ) | |||||||||||||||||||||
Balance at December 31, | $ | 846 | $ | 759 | $ | 715 | |||||||||||||||||||||
Amount that, if recognized, would impact the effective tax rate | $ | 804 | $ | 726 | $ | 669 | |||||||||||||||||||||
1 | Foreign currency translation amounts are included within each line as applicable. | ||||||||||||||||||||||||||
2 | Includes cash payment or other reduction of assets to settle liability. | ||||||||||||||||||||||||||
We classify interest and penalties on income taxes as a component of the provision for income taxes. We recognized a net provision (benefit) for interest and penalties of $3 million, $7 million and $(114) million during the years ended December 31, 2014, 2013 and 2012, respectively. The 2012 amount includes a benefit from adjustments for the 2000 through 2006 settlement discussed previously. The total amount of interest and penalties accrued was $61 million, $59 million and $134 million as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
On January 30, 2015, we received a Revenue Agent's Report (RAR) from the Internal Revenue Service (IRS) indicating the end of the field examination of our U.S. tax returns for 2007 to 2009 including the impact of a loss carryback to 2005. The RAR proposed tax increases and penalties for these years of approximately $1 billion primarily related to two significant areas that we intend to vigorously contest through the IRS Appeals process. In the first area, the IRS has proposed to tax in the United States profits earned from certain parts transactions by one of our non-U.S. subsidiaries, Caterpillar SARL (CSARL), based on the IRS examination team’s application of the “substance-over-form” or “assignment-of-income” judicial doctrines. We believe that the relevant transactions complied with applicable tax laws and did not violate judicial doctrines. We have filed U.S. tax returns on this same basis for years after 2009. In the second area, the IRS disallowed approximately $125 million of foreign tax credits that arose as a result of certain financings unrelated to CSARL. Based on the information currently available, we do not anticipate a significant increase or decrease to our recognized tax benefits for these matters within the next 12 months. We currently believe the ultimate disposition of these matters will not have a material adverse effect on our consolidated financial position, liquidity or results of operations. We expect the IRS field examination of our U.S. tax returns for 2010 to 2012 to begin in 2015. In our major non-U.S. jurisdictions, tax years are typically subject to examination for three to eight years. |
Cat_Financial_Financing_Activi
Cat Financial Financing Activities | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Cat Financial Financing Activities | Cat Financial Financing Activities | ||||||||||||||||||||||||||||
A. | Wholesale inventory receivables | ||||||||||||||||||||||||||||
Wholesale inventory receivables are receivables of Cat Financial that arise when Cat Financial provides financing for a dealer’s purchase of inventory. These receivables are included in Receivables—trade and other and Long-term receivables—trade and other in Statement 3 and were $2,170 million, $1,945 million, and $2,152 million at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Contractual maturities of outstanding wholesale inventory receivables: | |||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
Amounts Due In | Wholesale | Wholesale | Wholesale | Total | |||||||||||||||||||||||||
Installment | Finance | Notes | |||||||||||||||||||||||||||
Contracts | Leases | ||||||||||||||||||||||||||||
2015 | $ | 200 | $ | 109 | $ | 867 | $ | 1,176 | |||||||||||||||||||||
2016 | 109 | 85 | 262 | 456 | |||||||||||||||||||||||||
2017 | 70 | 58 | 202 | 330 | |||||||||||||||||||||||||
2018 | 39 | 27 | 17 | 83 | |||||||||||||||||||||||||
2019 | 15 | 7 | — | 22 | |||||||||||||||||||||||||
Thereafter | 3 | 2 | — | 5 | |||||||||||||||||||||||||
436 | 288 | 1,348 | 2,072 | ||||||||||||||||||||||||||
Guaranteed residual value | — | 98 | — | 98 | |||||||||||||||||||||||||
Unguaranteed residual value | — | 38 | — | 38 | |||||||||||||||||||||||||
Less: Unearned income | (7 | ) | (28 | ) | (3 | ) | (38 | ) | |||||||||||||||||||||
Total | $ | 429 | $ | 396 | $ | 1,345 | $ | 2,170 | |||||||||||||||||||||
Please refer to Note 18 and Table III for fair value information. | |||||||||||||||||||||||||||||
B. | Finance receivables | ||||||||||||||||||||||||||||
Finance receivables are receivables of Cat Financial, which generally can be repaid or refinanced without penalty prior to contractual maturity. Total finance receivables reported in Statement 3 are net of an allowance for credit losses. | |||||||||||||||||||||||||||||
Cat Financial provides financing only when acceptable criteria are met. Credit decisions are based on, among other things, the customer’s credit history, financial strength and intended use of equipment. Cat Financial typically maintains a security interest in retail financed equipment and requires physical damage insurance coverage on financed equipment. | |||||||||||||||||||||||||||||
Contractual maturities of outstanding finance receivables: | |||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
Amounts Due In | Retail | Retail Finance | Retail | Total | |||||||||||||||||||||||||
Installment | Leases | Notes | |||||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||||||
2015 | $ | 2,308 | $ | 2,956 | $ | 3,891 | $ | 9,155 | |||||||||||||||||||||
2016 | 1,736 | 2,064 | 2,238 | 6,038 | |||||||||||||||||||||||||
2017 | 1,184 | 1,159 | 1,896 | 4,239 | |||||||||||||||||||||||||
2018 | 587 | 513 | 1,069 | 2,169 | |||||||||||||||||||||||||
2019 | 174 | 209 | 848 | 1,231 | |||||||||||||||||||||||||
Thereafter | 10 | 131 | 970 | 1,111 | |||||||||||||||||||||||||
5,999 | 7,032 | 10,912 | 23,943 | ||||||||||||||||||||||||||
Guaranteed residual value | — | 323 | — | 323 | |||||||||||||||||||||||||
Unguaranteed residual value | — | 622 | — | 622 | |||||||||||||||||||||||||
Less: Unearned income | (106 | ) | (630 | ) | (86 | ) | (822 | ) | |||||||||||||||||||||
Total | $ | 5,893 | $ | 7,347 | $ | 10,826 | $ | 24,066 | |||||||||||||||||||||
Please refer to Note 18 and Table III for fair value information. | |||||||||||||||||||||||||||||
C. | 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. | |||||||||||||||||||||||||||||
At December 31, 2014, 2013 and 2012, there were no impaired loans or finance leases for the Dealer portfolio segment. The average recorded investment for impaired loans and finance leases within the Dealer portfolio segment was zero during 2014, 2013 and 2012. | |||||||||||||||||||||||||||||
Individually impaired loans and finance leases for the Customer portfolio segment were as follows: | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid Principal Balance | Related | ||||||||||||||||||||||||||
Investment | Allowance | ||||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 14 | $ | 14 | $ | — | |||||||||||||||||||||||
Europe | 44 | 43 | — | ||||||||||||||||||||||||||
Asia Pacific | 1 | 1 | — | ||||||||||||||||||||||||||
Mining | 29 | 29 | — | ||||||||||||||||||||||||||
Latin America | 34 | 34 | — | ||||||||||||||||||||||||||
Caterpillar Power Finance | 129 | 128 | — | ||||||||||||||||||||||||||
Total | $ | 251 | $ | 249 | $ | — | |||||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 6 | $ | 6 | $ | 1 | |||||||||||||||||||||||
Europe | 12 | 12 | 4 | ||||||||||||||||||||||||||
Asia Pacific | 29 | 29 | 8 | ||||||||||||||||||||||||||
Mining | 138 | 137 | 9 | ||||||||||||||||||||||||||
Latin America | 42 | 42 | 12 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 135 | 134 | 41 | ||||||||||||||||||||||||||
Total | $ | 362 | $ | 360 | $ | 75 | |||||||||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 20 | $ | 20 | $ | 1 | |||||||||||||||||||||||
Europe | 56 | 55 | 4 | ||||||||||||||||||||||||||
Asia Pacific | 30 | 30 | 8 | ||||||||||||||||||||||||||
Mining | 167 | 166 | 9 | ||||||||||||||||||||||||||
Latin America | 76 | 76 | 12 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 264 | 262 | 41 | ||||||||||||||||||||||||||
Total | $ | 613 | $ | 609 | $ | 75 | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 23 | $ | 22 | $ | — | |||||||||||||||||||||||
Europe | 48 | 47 | — | ||||||||||||||||||||||||||
Asia Pacific | 7 | 7 | — | ||||||||||||||||||||||||||
Mining | 134 | 134 | — | ||||||||||||||||||||||||||
Latin America | 11 | 11 | — | ||||||||||||||||||||||||||
Caterpillar Power Finance | 223 | 222 | — | ||||||||||||||||||||||||||
Total | $ | 446 | $ | 443 | $ | — | |||||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 13 | $ | 13 | $ | 4 | |||||||||||||||||||||||
Europe | 20 | 19 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 16 | 16 | 2 | ||||||||||||||||||||||||||
Mining | — | — | — | ||||||||||||||||||||||||||
Latin America | 23 | 23 | 6 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 110 | 106 | 51 | ||||||||||||||||||||||||||
Total | $ | 182 | $ | 177 | $ | 70 | |||||||||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 36 | $ | 35 | $ | 4 | |||||||||||||||||||||||
Europe | 68 | 66 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 23 | 23 | 2 | ||||||||||||||||||||||||||
Mining | 134 | 134 | — | ||||||||||||||||||||||||||
Latin America | 34 | 34 | 6 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 333 | 328 | 51 | ||||||||||||||||||||||||||
Total | $ | 628 | $ | 620 | $ | 70 | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 28 | $ | 27 | $ | — | |||||||||||||||||||||||
Europe | 45 | 45 | — | ||||||||||||||||||||||||||
Asia Pacific | 2 | 2 | — | ||||||||||||||||||||||||||
Mining | 1 | 1 | — | ||||||||||||||||||||||||||
Latin America | 7 | 7 | — | ||||||||||||||||||||||||||
Caterpillar Power Finance | 295 | 295 | — | ||||||||||||||||||||||||||
Total | $ | 378 | $ | 377 | $ | — | |||||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 25 | $ | 23 | $ | 7 | |||||||||||||||||||||||
Europe | 28 | 26 | 11 | ||||||||||||||||||||||||||
Asia Pacific | 19 | 19 | 4 | ||||||||||||||||||||||||||
Mining | — | — | — | ||||||||||||||||||||||||||
Latin America | 30 | 30 | 8 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 113 | 109 | 24 | ||||||||||||||||||||||||||
Total | $ | 215 | $ | 207 | $ | 54 | |||||||||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 53 | $ | 50 | $ | 7 | |||||||||||||||||||||||
Europe | 73 | 71 | 11 | ||||||||||||||||||||||||||
Asia Pacific | 21 | 21 | 4 | ||||||||||||||||||||||||||
Mining | 1 | 1 | — | ||||||||||||||||||||||||||
Latin America | 37 | 37 | 8 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 408 | 404 | 24 | ||||||||||||||||||||||||||
Total | $ | 593 | $ | 584 | $ | 54 | |||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Millions of dollars) | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 20 | $ | 1 | $ | 25 | $ | 3 | $ | 50 | $ | 3 | |||||||||||||||||
Europe | 47 | 1 | 49 | 1 | 45 | 1 | |||||||||||||||||||||||
Asia Pacific | 3 | — | 4 | — | 3 | — | |||||||||||||||||||||||
Mining | 69 | 3 | 61 | 3 | 8 | — | |||||||||||||||||||||||
Latin America | 30 | — | 11 | — | 6 | — | |||||||||||||||||||||||
Caterpillar Power Finance | 164 | 6 | 271 | 5 | 220 | 2 | |||||||||||||||||||||||
Total | $ | 333 | $ | 11 | $ | 421 | $ | 12 | $ | 332 | $ | 6 | |||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 9 | $ | — | $ | 18 | $ | 1 | $ | 25 | $ | 1 | |||||||||||||||||
Europe | 21 | 1 | 22 | 1 | 27 | 1 | |||||||||||||||||||||||
Asia Pacific | 22 | 1 | 18 | 1 | 15 | 1 | |||||||||||||||||||||||
Mining | 90 | 7 | 1 | — | — | — | |||||||||||||||||||||||
Latin America | 36 | 1 | 44 | 2 | 27 | 2 | |||||||||||||||||||||||
Caterpillar Power Finance | 96 | 2 | 135 | 1 | 94 | — | |||||||||||||||||||||||
Total | $ | 274 | $ | 12 | $ | 238 | $ | 6 | $ | 188 | $ | 5 | |||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 29 | $ | 1 | $ | 43 | $ | 4 | $ | 75 | $ | 4 | |||||||||||||||||
Europe | 68 | 2 | 71 | 2 | 72 | 2 | |||||||||||||||||||||||
Asia Pacific | 25 | 1 | 22 | 1 | 18 | 1 | |||||||||||||||||||||||
Mining | 159 | 10 | 62 | 3 | 8 | — | |||||||||||||||||||||||
Latin America | 66 | 1 | 55 | 2 | 33 | 2 | |||||||||||||||||||||||
Caterpillar Power Finance | 260 | 8 | 406 | 6 | 314 | 2 | |||||||||||||||||||||||
Total | $ | 607 | $ | 23 | $ | 659 | $ | 18 | $ | 520 | $ | 11 | |||||||||||||||||
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 December 31, 2014, 2013 and 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: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 27 | $ | 26 | $ | 59 | |||||||||||||||||||||||
Europe | 28 | 28 | 38 | ||||||||||||||||||||||||||
Asia Pacific | 54 | 50 | 36 | ||||||||||||||||||||||||||
Mining | 62 | 23 | 12 | ||||||||||||||||||||||||||
Latin America | 201 | 179 | 148 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 96 | 119 | 220 | ||||||||||||||||||||||||||
Total | $ | 468 | $ | 425 | $ | 513 | |||||||||||||||||||||||
Aging related to loans and finance leases was as follows: | |||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
31-60 Days Past Due | 61-90 Days Past Due | 91+ | Total Past | Current | Total | 91+ Still | |||||||||||||||||||||||
Days Past Due | Due | Finance | Accruing | ||||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 46 | $ | 8 | $ | 27 | $ | 81 | $ | 7,192 | $ | 7,273 | $ | 4 | |||||||||||||||
Europe | 16 | 23 | 29 | 68 | 2,607 | 2,675 | 6 | ||||||||||||||||||||||
Asia Pacific | 29 | 22 | 69 | 120 | 2,316 | 2,436 | 16 | ||||||||||||||||||||||
Mining | 28 | — | 11 | 39 | 2,084 | 2,123 | — | ||||||||||||||||||||||
Latin America | 55 | 23 | 196 | 274 | 2,583 | 2,857 | 8 | ||||||||||||||||||||||
Caterpillar Power Finance | 1 | 4 | 64 | 69 | 3,079 | 3,148 | 1 | ||||||||||||||||||||||
Dealer | |||||||||||||||||||||||||||||
North America | — | — | — | — | 2,189 | 2,189 | — | ||||||||||||||||||||||
Europe | — | — | — | — | 153 | 153 | — | ||||||||||||||||||||||
Asia Pacific | — | — | — | — | 566 | 566 | — | ||||||||||||||||||||||
Mining | — | — | — | — | — | — | — | ||||||||||||||||||||||
Latin America | — | — | — | — | 646 | 646 | — | ||||||||||||||||||||||
Caterpillar Power Finance | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 175 | $ | 80 | $ | 396 | $ | 651 | $ | 23,415 | $ | 24,066 | $ | 35 | |||||||||||||||
(Millions of dollars) | December 31, 2013 | ||||||||||||||||||||||||||||
31-60 Days Past Due | 61-90 Days Past Due | 91+ | Total Past | Current | Total | 91+ Still | |||||||||||||||||||||||
Days Past Due | Due | Finance | Accruing | ||||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 37 | $ | 12 | $ | 24 | $ | 73 | $ | 6,508 | $ | 6,581 | $ | — | |||||||||||||||
Europe | 26 | 15 | 29 | 70 | 2,805 | 2,875 | 6 | ||||||||||||||||||||||
Asia Pacific | 54 | 23 | 59 | 136 | 2,752 | 2,888 | 11 | ||||||||||||||||||||||
Mining | 3 | — | 12 | 15 | 2,128 | 2,143 | — | ||||||||||||||||||||||
Latin America | 54 | 25 | 165 | 244 | 2,474 | 2,718 | 5 | ||||||||||||||||||||||
Caterpillar Power Finance | 55 | 30 | 60 | 145 | 2,946 | 3,091 | — | ||||||||||||||||||||||
Dealer | |||||||||||||||||||||||||||||
North America | — | — | — | — | 2,283 | 2,283 | — | ||||||||||||||||||||||
Europe | — | — | — | — | 150 | 150 | — | ||||||||||||||||||||||
Asia Pacific | — | — | — | — | 583 | 583 | — | ||||||||||||||||||||||
Mining | — | — | — | — | 1 | 1 | — | ||||||||||||||||||||||
Latin America | — | — | — | — | 748 | 748 | — | ||||||||||||||||||||||
Caterpillar Power Finance | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 229 | $ | 105 | $ | 349 | $ | 683 | $ | 23,378 | $ | 24,061 | $ | 22 | |||||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||||||||||
31-60 Days Past Due | 61-90 Days Past Due | 91+ | Total Past | Current | Total | 91+ Still | |||||||||||||||||||||||
Days Past Due | Due | Finance | Accruing | ||||||||||||||||||||||||||
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 | — | ||||||||||||||||||||||
Caterpillar Power Finance | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 188 | $ | 70 | $ | 418 | $ | 676 | $ | 22,632 | $ | 23,308 | $ | 28 | |||||||||||||||
Allowance for credit loss activity | |||||||||||||||||||||||||||||
An analysis of the allowance for credit losses during 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||
Balance at beginning of year | $ | 365 | $ | 10 | $ | 375 | |||||||||||||||||||||||
Receivables written off | (151 | ) | — | (151 | ) | ||||||||||||||||||||||||
Recoveries on receivables previously written off | 47 | — | 47 | ||||||||||||||||||||||||||
Provision for credit losses | 150 | — | 150 | ||||||||||||||||||||||||||
Other | (23 | ) | — | (23 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 388 | $ | 10 | $ | 398 | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 75 | $ | — | $ | 75 | |||||||||||||||||||||||
Collectively evaluated for impairment | 313 | 10 | 323 | ||||||||||||||||||||||||||
Ending Balance | $ | 388 | $ | 10 | $ | 398 | |||||||||||||||||||||||
Recorded Investment in Finance Receivables: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 613 | $ | — | $ | 613 | |||||||||||||||||||||||
Collectively evaluated for impairment | 19,899 | 3,554 | 23,453 | ||||||||||||||||||||||||||
Ending Balance | $ | 20,512 | $ | 3,554 | $ | 24,066 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2013 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||
Balance at beginning of year | $ | 414 | $ | 9 | $ | 423 | |||||||||||||||||||||||
Receivables written off | (179 | ) | — | (179 | ) | ||||||||||||||||||||||||
Recoveries on receivables previously written off | 56 | — | 56 | ||||||||||||||||||||||||||
Provision for credit losses | 83 | 1 | 84 | ||||||||||||||||||||||||||
Other | (9 | ) | — | (9 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 365 | $ | 10 | $ | 375 | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 70 | $ | — | $ | 70 | |||||||||||||||||||||||
Collectively evaluated for impairment | 295 | 10 | 305 | ||||||||||||||||||||||||||
Ending Balance | $ | 365 | $ | 10 | $ | 375 | |||||||||||||||||||||||
Recorded Investment in Finance Receivables: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 628 | $ | — | $ | 628 | |||||||||||||||||||||||
Collectively evaluated for impairment | 19,668 | 3,765 | 23,433 | ||||||||||||||||||||||||||
Ending Balance | $ | 20,296 | $ | 3,765 | $ | 24,061 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||
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 less selling costs. 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) | December 31, 2014 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||
North America | $ | 7,246 | $ | 2,189 | $ | 9,435 | |||||||||||||||||||||||
Europe | 2,647 | 153 | 2,800 | ||||||||||||||||||||||||||
Asia Pacific | 2,382 | 566 | 2,948 | ||||||||||||||||||||||||||
Mining | 2,061 | — | 2,061 | ||||||||||||||||||||||||||
Latin America | 2,656 | 646 | 3,302 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,052 | — | 3,052 | ||||||||||||||||||||||||||
Total Performing | $ | 20,044 | $ | 3,554 | $ | 23,598 | |||||||||||||||||||||||
Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 27 | $ | — | $ | 27 | |||||||||||||||||||||||
Europe | 28 | — | 28 | ||||||||||||||||||||||||||
Asia Pacific | 54 | — | 54 | ||||||||||||||||||||||||||
Mining | 62 | — | 62 | ||||||||||||||||||||||||||
Latin America | 201 | — | 201 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 96 | — | 96 | ||||||||||||||||||||||||||
Total Non-Performing | $ | 468 | $ | — | $ | 468 | |||||||||||||||||||||||
Performing & Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 7,273 | $ | 2,189 | $ | 9,462 | |||||||||||||||||||||||
Europe | 2,675 | 153 | 2,828 | ||||||||||||||||||||||||||
Asia Pacific | 2,436 | 566 | 3,002 | ||||||||||||||||||||||||||
Mining | 2,123 | — | 2,123 | ||||||||||||||||||||||||||
Latin America | 2,857 | 646 | 3,503 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,148 | — | 3,148 | ||||||||||||||||||||||||||
Total | $ | 20,512 | $ | 3,554 | $ | 24,066 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2013 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||
North America | $ | 6,555 | $ | 2,283 | $ | 8,838 | |||||||||||||||||||||||
Europe | 2,847 | 150 | 2,997 | ||||||||||||||||||||||||||
Asia Pacific | 2,838 | 583 | 3,421 | ||||||||||||||||||||||||||
Mining | 2,120 | 1 | 2,121 | ||||||||||||||||||||||||||
Latin America | 2,539 | 748 | 3,287 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 2,972 | — | 2,972 | ||||||||||||||||||||||||||
Total Performing | $ | 19,871 | $ | 3,765 | $ | 23,636 | |||||||||||||||||||||||
Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 26 | $ | — | $ | 26 | |||||||||||||||||||||||
Europe | 28 | — | 28 | ||||||||||||||||||||||||||
Asia Pacific | 50 | — | 50 | ||||||||||||||||||||||||||
Mining | 23 | — | 23 | ||||||||||||||||||||||||||
Latin America | 179 | — | 179 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 119 | — | 119 | ||||||||||||||||||||||||||
Total Non-Performing | $ | 425 | $ | — | $ | 425 | |||||||||||||||||||||||
Performing & Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 6,581 | $ | 2,283 | $ | 8,864 | |||||||||||||||||||||||
Europe | 2,875 | 150 | 3,025 | ||||||||||||||||||||||||||
Asia Pacific | 2,888 | 583 | 3,471 | ||||||||||||||||||||||||||
Mining | 2,143 | 1 | 2,144 | ||||||||||||||||||||||||||
Latin America | 2,718 | 748 | 3,466 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,091 | — | 3,091 | ||||||||||||||||||||||||||
Total | $ | 20,296 | $ | 3,765 | $ | 24,061 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||
North America | $ | 5,908 | $ | 2,063 | $ | 7,971 | |||||||||||||||||||||||
Europe | 2,517 | 185 | 2,702 | ||||||||||||||||||||||||||
Asia Pacific | 3,002 | 751 | 3,753 | ||||||||||||||||||||||||||
Mining | 1,961 | 1 | 1,962 | ||||||||||||||||||||||||||
Latin America | 2,571 | 884 | 3,455 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 2,952 | — | 2,952 | ||||||||||||||||||||||||||
Total Performing | $ | 18,911 | $ | 3,884 | $ | 22,795 | |||||||||||||||||||||||
Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 59 | $ | — | $ | 59 | |||||||||||||||||||||||
Europe | 38 | — | 38 | ||||||||||||||||||||||||||
Asia Pacific | 36 | — | 36 | ||||||||||||||||||||||||||
Mining | 12 | — | 12 | ||||||||||||||||||||||||||
Latin America | 148 | — | 148 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 220 | — | 220 | ||||||||||||||||||||||||||
Total Non-Performing | $ | 513 | $ | — | $ | 513 | |||||||||||||||||||||||
Performing & Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 5,967 | $ | 2,063 | $ | 8,030 | |||||||||||||||||||||||
Europe | 2,555 | 185 | 2,740 | ||||||||||||||||||||||||||
Asia Pacific | 3,038 | 751 | 3,789 | ||||||||||||||||||||||||||
Mining | 1,973 | 1 | 1,974 | ||||||||||||||||||||||||||
Latin America | 2,719 | 884 | 3,603 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,172 | — | 3,172 | ||||||||||||||||||||||||||
Total | $ | 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, extended skip payment periods and reduction of principal and/or accrued interest. | |||||||||||||||||||||||||||||
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 less selling costs. 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 TDRs. | |||||||||||||||||||||||||||||
There were no loans or finance lease receivables modified as TDRs during the years ended December 31, 2014, 2013 or 2012 for the Dealer portfolio segment. | |||||||||||||||||||||||||||||
Loan and finance lease receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | ||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 34 | $ | 12 | $ | 7 | ||||||||||||||||||||||||
Europe | 8 | 7 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 2 | — | — | ||||||||||||||||||||||||||
Mining | 51 | 185 | 176 | ||||||||||||||||||||||||||
Latin America | 51 | 32 | 31 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 18 | 137 | 139 | ||||||||||||||||||||||||||
Total 2 | 164 | $ | 373 | $ | 360 | ||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 62 | $ | 9 | $ | 9 | ||||||||||||||||||||||||
Europe | 51 | 7 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 3 | 1 | 1 | ||||||||||||||||||||||||||
Mining | 45 | 123 | 123 | ||||||||||||||||||||||||||
Latin America | 16 | 2 | 2 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 17 | 153 | 157 | ||||||||||||||||||||||||||
Total 2 | 194 | $ | 295 | $ | 299 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 98 | $ | 15 | $ | 15 | ||||||||||||||||||||||||
Europe | 21 | 8 | 8 | ||||||||||||||||||||||||||
Asia Pacific | 12 | 3 | 3 | ||||||||||||||||||||||||||
Mining | — | — | — | ||||||||||||||||||||||||||
Latin America | 41 | 5 | 5 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 27 | 253 | 253 | ||||||||||||||||||||||||||
Total 2 | 199 | $ | 284 | $ | 284 | ||||||||||||||||||||||||
1 | During the year ended December 31, 2014, no additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. During the years ended December 31, 2013 and 2012, $25 million and $24 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million and $24 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented. At December 31, 2014, there were no remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR. | ||||||||||||||||||||||||||||
2 | Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest. | ||||||||||||||||||||||||||||
TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2014, 2013, and 2012 which had been modified within twelve months prior to the default date, were as follows: | |||||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||||
Number | Post-TDR | Number | Post-TDR | Number | Post-TDR | ||||||||||||||||||||||||
of Contracts | Recorded | of Contracts | Recorded | of Contracts | Recorded | ||||||||||||||||||||||||
Investment | Investment | Investment | |||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 11 | $ | 1 | 19 | $ | 4 | 49 | $ | 4 | ||||||||||||||||||||
Europe | 46 | 2 | 5 | — | — | — | |||||||||||||||||||||||
Asia Pacific | — | — | — | — | 2 | 1 | |||||||||||||||||||||||
Mining | — | — | — | — | — | — | |||||||||||||||||||||||
Latin America | 11 | 1 | — | — | — | — | |||||||||||||||||||||||
Caterpillar Power Finance | — | — | 2 | 3 | 16 | 21 | |||||||||||||||||||||||
Total | 68 | $ | 4 | 26 | $ | 7 | 67 | $ | 26 | ||||||||||||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||
Inventories | Inventories | ||||||||||||
Inventories (principally using the LIFO method) are comprised of the following: | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Raw materials | $ | 2,986 | $ | 2,966 | $ | 3,573 | |||||||
Work-in-process | 2,455 | 2,589 | 2,920 | ||||||||||
Finished goods | 6,504 | 6,785 | 8,767 | ||||||||||
Supplies | 260 | 285 | 287 | ||||||||||
Total inventories | $ | 12,205 | $ | 12,625 | $ | 15,547 | |||||||
We had long-term material purchase obligations of approximately $2,142 million at December 31, 2014. | |||||||||||||
During 2013 inventory quantities were reduced. This reduction resulted in a liquidation of LIFO inventory layers carried at lower costs prevailing in prior years as compared with current costs. In 2013, the effect of this reduction of inventory decreased Cost of goods sold by approximately $115 million and increased Profit by approximately $81 million or $0.12 per share. There were no significant LIFO liquidations during 2014 or 2012. |
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||
Property, plant and equipment | Property, plant and equipment | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(Millions of dollars) | Useful | 2014 | 2013 | 2012 | |||||||||||||||||||
Lives (Years) | |||||||||||||||||||||||
Land | — | $ | 665 | $ | 688 | $ | 723 | ||||||||||||||||
Buildings and land improvements | 20-45 | 7,119 | 6,928 | 6,214 | |||||||||||||||||||
Machinery, equipment and other | 10-Mar | 16,971 | 16,793 | 16,073 | |||||||||||||||||||
Equipment leased to others | 10-Jan | 5,596 | 5,365 | 4,658 | |||||||||||||||||||
Construction-in-process | — | 1,221 | 1,542 | 2,264 | |||||||||||||||||||
Total property, plant and equipment, at cost | 31,572 | 31,316 | 29,932 | ||||||||||||||||||||
Less: Accumulated depreciation | (14,995 | ) | (14,241 | ) | (13,471 | ) | |||||||||||||||||
Property, plant and equipment–net | $ | 16,577 | $ | 17,075 | $ | 16,461 | |||||||||||||||||
We had commitments for the purchase or construction of capital assets of approximately $294 million at December 31, 2014. | |||||||||||||||||||||||
Assets recorded under capital leases: 1 | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Gross capital leases 2 | $ | 111 | $ | 125 | $ | 134 | |||||||||||||||||
Less: Accumulated depreciation | (52 | ) | (50 | ) | (58 | ) | |||||||||||||||||
Net capital leases | $ | 59 | $ | 75 | $ | 76 | |||||||||||||||||
1 | Included in Property, plant and equipment table above. | ||||||||||||||||||||||
2 | Consists primarily of machinery and equipment. | ||||||||||||||||||||||
At December 31, 2014, scheduled minimum rental payments on assets recorded under capital leases were: | |||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
$ | 8 | $ | 26 | $ | 10 | $ | 7 | $ | 7 | $ | 35 | ||||||||||||
Equipment leased to others (primarily by Cat Financial): | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Equipment leased to others–at original cost | $ | 5,596 | $ | 5,365 | $ | 4,658 | |||||||||||||||||
Less: Accumulated depreciation | (1,565 | ) | (1,521 | ) | (1,383 | ) | |||||||||||||||||
Equipment leased to others–net | $ | 4,031 | $ | 3,844 | $ | 3,275 | |||||||||||||||||
At December 31, 2014, scheduled minimum rental payments to be received for equipment leased to others were: | |||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
$ | 951 | $ | 621 | $ | 353 | $ | 180 | $ | 73 | $ | 28 | ||||||||||||
Investments_in_unconsolidated_
Investments in unconsolidated affiliated companies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | |||||||||||||
Years ended December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Results of Operations: | |||||||||||||
Sales | $ | 1,662 | $ | 1,336 | $ | 1,084 | |||||||
Cost of sales | 1,292 | 1,048 | 872 | ||||||||||
Gross profit | $ | 370 | $ | 288 | $ | 212 | |||||||
Profit (loss) | $ | (30 | ) | $ | (28 | ) | $ | 28 | |||||
Financial Position of unconsolidated affiliated companies: | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Financial Position: | |||||||||||||
Assets: | |||||||||||||
Current assets | $ | 716 | $ | 683 | $ | 715 | |||||||
Property, plant and equipment–net | 653 | 710 | 529 | ||||||||||
Other assets | 557 | 608 | 616 | ||||||||||
1,926 | 2,001 | 1,860 | |||||||||||
Liabilities: | |||||||||||||
Current liabilities | 518 | 437 | 443 | ||||||||||
Long-term debt due after one year | 867 | 900 | 708 | ||||||||||
Other liabilities | 215 | 262 | 170 | ||||||||||
1,600 | 1,599 | 1,321 | |||||||||||
Equity | $ | 326 | $ | 402 | $ | 539 | |||||||
Caterpillar’s investments in unconsolidated affiliated companies: | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Investments in equity method companies | $ | 248 | $ | 262 | $ | 256 | |||||||
Plus: Investments in cost method companies | 9 | 10 | 16 | ||||||||||
Total investments in unconsolidated affiliated companies | $ | 257 | $ | 272 | $ | 272 | |||||||
Intangible_assets_and_goodwill
Intangible assets and goodwill | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible assets and goodwill | Intangible assets and goodwill | ||||||||||||||||||||||||
A. | Intangible assets | ||||||||||||||||||||||||
Intangible assets are comprised of the following: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Millions of dollars) | Weighted | Gross | Accumulated | Net | |||||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||||||
Customer relationships | 15 | $ | 2,489 | $ | (669 | ) | $ | 1,820 | |||||||||||||||||
Intellectual property | 11 | 1,724 | (578 | ) | 1,146 | ||||||||||||||||||||
Other | 11 | 239 | (129 | ) | 110 | ||||||||||||||||||||
Total finite-lived intangible assets | 14 | $ | 4,452 | $ | (1,376 | ) | $ | 3,076 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||||||
Customer relationships | 15 | $ | 2,653 | $ | (539 | ) | $ | 2,114 | |||||||||||||||||
Intellectual property | 11 | 1,821 | (495 | ) | 1,326 | ||||||||||||||||||||
Other | 10 | 274 | (136 | ) | 138 | ||||||||||||||||||||
Total finite-lived intangible assets | 13 | 4,748 | (1,170 | ) | 3,578 | ||||||||||||||||||||
Indefinite-lived intangible assets - In-process research & development | 18 | — | 18 | ||||||||||||||||||||||
Total intangible assets | $ | 4,766 | $ | (1,170 | ) | $ | 3,596 | ||||||||||||||||||
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 | ||||||||||||||||||
Gross customer relationship intangibles of $48 million and related accumulated amortization of $9 million were divested during 2014, and are not included in the December 31, 2014 balances in the table above. These transactions were related to the divestiture of portions of the Bucyrus distribution business. See Note 26 for additional information on divestitures. | |||||||||||||||||||||||||
In-process research & development indefinite-lived intangibles of $18 million from the Energy & Transportation segment were impaired during 2014. Fair value of the intangibles was determined using an income approach based on the present value of discounted cash flows. The impairment of $18 million was recognized in Other operating (income) expenses in Statement 1 and included in the Energy & Transportation segment. | |||||||||||||||||||||||||
During 2013, we acquired finite-lived intangible assets aggregating $70 million due to the purchase of Johan Walter Berg AB (Berg). See Note 24 for details on this acquisition. | |||||||||||||||||||||||||
Gross customer relationship intangibles of $168 million and related accumulated amortization of $25 million were reclassified from Intangible assets to assets held for sale and/or divested during 2013, and are not included in the December 31, 2013 balances in the table above. These transactions were related to the divestiture of portions of the Bucyrus distribution business. See Note 26 for additional information on divestitures. | |||||||||||||||||||||||||
During 2012, we acquired finite-lived intangible assets aggregating $120 million due to purchases of ERA Mining Machinery Limited (Siwei) ($112 million) and Caterpillar Tohoku Ltd. (Cat Tohoku) ($8 million). See Note 24 for details on these acquisitions. | |||||||||||||||||||||||||
Gross customer relationship intangibles of $207 million with related accumulated amortization of $93 million were reclassified from Intangible assets to held for sale and/or divested during 2012, and are not included in the December 31, 2012 balances in the table above. These transactions primarily related to the divestiture of portions of the Bucyrus distribution business and our third party logistics business. See Note 26 for additional information on divestitures. | |||||||||||||||||||||||||
Gross customer relationship intangibles of $51 million with related accumulated amortization of $29 million from the All Other segments were impaired during 2012. Fair value of the intangibles was determined using an income approach based on the present value of discounted cash flows. The impairment of $22 million was recognized in Other operating (income) expenses in Statement 1 and included in the All Other segments. | |||||||||||||||||||||||||
Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired. Indefinite-lived intangible assets are tested for impairment at least annually. | |||||||||||||||||||||||||
Amortization expense related to intangible assets was $365 million, $371 million and $387 million for 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
As of December 31, 2014, amortization expense related to intangible assets is expected to be: | |||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||
$ | 345 | $ | 323 | $ | 322 | $ | 320 | $ | 318 | $ | 1,448 | ||||||||||||||
B. | Goodwill | ||||||||||||||||||||||||
During 2013, we acquired net assets with related goodwill of $106 million due to the purchase of Berg. In 2014, we finalized the allocation of the Berg purchase price to identifiable assets and liabilities, adjusting goodwill from our December 31, 2013 preliminary allocation by an increase of $7 million. See Note 24 for details on this acquisition. | |||||||||||||||||||||||||
There were no goodwill impairments during 2014 or 2013. | |||||||||||||||||||||||||
As discussed in Note 24, we recorded goodwill of $625 million related to our May 2012 acquisition of Siwei. 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. | |||||||||||||||||||||||||
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 was 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 $45 million remaining for Siwei as of December 31, 2012. 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 is reported in the Resource Industries segment. | |||||||||||||||||||||||||
Additionally, during 2012, we recorded goodwill of $22 million related to the acquisition of Cat Tohoku. See Note 24 for details on this acquisition. | |||||||||||||||||||||||||
Goodwill of $15 million, $65 million and $181 million was reclassified to held for sale and/or divested during 2014, 2013 and 2012, respectively, and is not included in the December 31, 2014, 2013 and 2012 respective balances in the table below. The reclassified/divested amount in 2014 and 2012 primarily related to the divestiture of portions of the Bucyrus distribution business. The reclassified/divested amounts in 2013 was related to the divestiture of portions of the Bucyrus distribution business and the sale of certain Energy & Transportation assets that were accounted for as a business. See Note 26 for additional information on divestitures. | |||||||||||||||||||||||||
As discussed in Note 23, effective January 1, 2014, we revised our reportable segments in line with the changes to our organization structure. Our reporting units did not significantly change as a result of the changes to our reportable segments. | |||||||||||||||||||||||||
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
(Millions of dollars) | December 31, 2013 | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Impairment Loss | Other Adjustments 3 | December 31, 2014 | |||||||||||||||||||
Construction Industries | |||||||||||||||||||||||||
Goodwill | $ | 291 | $ | — | $ | — | $ | — | $ | (16 | ) | $ | 275 | ||||||||||||
Resource Industries | |||||||||||||||||||||||||
Goodwill | 4,468 | — | (15 | ) | — | (166 | ) | 4,287 | |||||||||||||||||
Impairments | (580 | ) | — | — | — | — | (580 | ) | |||||||||||||||||
Net goodwill | 3,888 | — | (15 | ) | — | (166 | ) | 3,707 | |||||||||||||||||
Energy & Transportation | |||||||||||||||||||||||||
Goodwill | 2,600 | 7 | — | — | (65 | ) | 2,542 | ||||||||||||||||||
All Other 4 | |||||||||||||||||||||||||
Goodwill | 199 | — | — | — | (7 | ) | 192 | ||||||||||||||||||
Impairment | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||
Net goodwill | 177 | — | — | — | (7 | ) | 170 | ||||||||||||||||||
Consolidated total | |||||||||||||||||||||||||
Goodwill | 7,558 | 7 | (15 | ) | — | (254 | ) | 7,296 | |||||||||||||||||
Impairments | (602 | ) | — | — | — | — | (602 | ) | |||||||||||||||||
Net goodwill | $ | 6,956 | $ | 7 | $ | (15 | ) | $ | — | $ | (254 | ) | $ | 6,694 | |||||||||||
December 31, 2012 | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Impairment Loss | Other Adjustments 3 | December 31, 2013 | ||||||||||||||||||||
Construction Industries | |||||||||||||||||||||||||
Goodwill | $ | 333 | $ | — | $ | — | $ | — | $ | (42 | ) | $ | 291 | ||||||||||||
Resource Industries | |||||||||||||||||||||||||
Goodwill | 4,511 | — | (55 | ) | — | 12 | 4,468 | ||||||||||||||||||
Impairments | (580 | ) | — | — | — | — | (580 | ) | |||||||||||||||||
Net goodwill | 3,931 | — | (55 | ) | — | 12 | 3,888 | ||||||||||||||||||
Energy & Transportation | |||||||||||||||||||||||||
Goodwill | 2,486 | 106 | (10 | ) | — | 18 | 2,600 | ||||||||||||||||||
All Other 4 | |||||||||||||||||||||||||
Goodwill | 214 | — | — | — | (15 | ) | 199 | ||||||||||||||||||
Impairment | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||
Net goodwill | 192 | — | — | — | (15 | ) | 177 | ||||||||||||||||||
Consolidated total | |||||||||||||||||||||||||
Goodwill | 7,544 | 106 | (65 | ) | — | (27 | ) | 7,558 | |||||||||||||||||
Impairments | (602 | ) | — | — | — | — | (602 | ) | |||||||||||||||||
Net goodwill | $ | 6,942 | $ | 106 | $ | (65 | ) | $ | — | $ | (27 | ) | $ | 6,956 | |||||||||||
December 31, 2011 | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Impairment Loss | Other Adjustments 3 | December 31, 2012 | ||||||||||||||||||||
Construction Industries | |||||||||||||||||||||||||
Goodwill | $ | 331 | $ | 15 | $ | — | $ | — | $ | (13 | ) | $ | 333 | ||||||||||||
Resource Industries | |||||||||||||||||||||||||
Goodwill | 4,073 | 597 | (181 | ) | — | 22 | 4,511 | ||||||||||||||||||
Impairments | — | — | — | (580 | ) | — | (580 | ) | |||||||||||||||||
Net goodwill | 4,073 | 597 | (181 | ) | (580 | ) | 22 | 3,931 | |||||||||||||||||
Energy & Transportation | |||||||||||||||||||||||||
Goodwill | 2,486 | 9 | — | — | (9 | ) | 2,486 | ||||||||||||||||||
All Other 4 | |||||||||||||||||||||||||
Goodwill | 212 | 7 | — | — | (5 | ) | 214 | ||||||||||||||||||
Impairment | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||
Net goodwill | 190 | 7 | — | — | (5 | ) | 192 | ||||||||||||||||||
Consolidated total | |||||||||||||||||||||||||
Goodwill | 7,102 | 628 | (181 | ) | — | (5 | ) | 7,544 | |||||||||||||||||
Impairments | (22 | ) | — | — | (580 | ) | — | (602 | ) | ||||||||||||||||
Net goodwill | $ | 7,080 | $ | 628 | $ | (181 | ) | $ | (580 | ) | $ | (5 | ) | $ | 6,942 | ||||||||||
1 | See Note 24 for additional information. | ||||||||||||||||||||||||
2 | See Note 26 for additional information. | ||||||||||||||||||||||||
3 | Other adjustments are comprised primarily of foreign currency translation. | ||||||||||||||||||||||||
4 | Includes All Other operating segments (See Note 23). | ||||||||||||||||||||||||
Availableforsale_securities
Available-for-sale securities | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
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 Insurance Services, 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 Statement 3. 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 Statement 3). Realized gains and losses on sales of investments are generally determined using the specific identification method for debt and equity securities. Realized gains and losses are included in Other income (expense) in Statement 1. | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | Cost | Unrealized | Fair | Cost | Unrealized | Fair | Cost | Unrealized | Fair | ||||||||||||||||||||||||||||
Basis | Pretax Net | Value | Basis | Pretax Net | Value | Basis | Pretax Net | Value | |||||||||||||||||||||||||||||
Gains | Gains | Gains | |||||||||||||||||||||||||||||||||||
(Losses) | (Losses) | (Losses) | |||||||||||||||||||||||||||||||||||
Government debt | |||||||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | 10 | $ | — | $ | 10 | $ | 10 | $ | — | $ | 10 | $ | 10 | $ | — | $ | 10 | |||||||||||||||||||
Other U.S. and non-U.S. government bonds | 94 | — | 94 | 119 | 1 | 120 | 144 | 2 | 146 | ||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||
Corporate bonds | 677 | 16 | 693 | 612 | 21 | 633 | 626 | 38 | 664 | ||||||||||||||||||||||||||||
Asset-backed securities | 103 | 2 | 105 | 72 | — | 72 | 96 | — | 96 | ||||||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||||||||||
U.S. governmental agency | 292 | 2 | 294 | 322 | (1 | ) | 321 | 291 | 8 | 299 | |||||||||||||||||||||||||||
Residential | 15 | — | 15 | 18 | — | 18 | 26 | (1 | ) | 25 | |||||||||||||||||||||||||||
Commercial | 63 | 4 | 67 | 87 | 6 | 93 | 117 | 10 | 127 | ||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||
Large capitalization value | 150 | 83 | 233 | 173 | 81 | 254 | 147 | 38 | 185 | ||||||||||||||||||||||||||||
Smaller company growth | 17 | 26 | 43 | 25 | 24 | 49 | 22 | 12 | 34 | ||||||||||||||||||||||||||||
Total | $ | 1,421 | $ | 133 | $ | 1,554 | $ | 1,438 | $ | 132 | $ | 1,570 | $ | 1,479 | $ | 107 | $ | 1,586 | |||||||||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
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 | $ | 195 | $ | 1 | $ | 32 | $ | — | $ | 227 | $ | 1 | |||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||||||||||
U.S. governmental agency | 34 | — | 140 | 3 | 174 | 3 | |||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||
Large capitalization value | 15 | 2 | 1 | — | 16 | 2 | |||||||||||||||||||||||||||||||
Total | $ | 244 | $ | 3 | $ | 173 | $ | 3 | $ | 417 | $ | 6 | |||||||||||||||||||||||||
1 | Indicates length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | |||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | 159 | $ | 2 | $ | 1 | $ | — | $ | 160 | $ | 2 | |||||||||||||||||||||||||
Asset-backed securities | 6 | — | 20 | 1 | 26 | 1 | |||||||||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||||||||||
U.S. governmental agency | 140 | 4 | 65 | 2 | 205 | 6 | |||||||||||||||||||||||||||||||
Total | $ | 305 | $ | 6 | $ | 86 | $ | 3 | $ | 391 | $ | 9 | |||||||||||||||||||||||||
1 | Indicates length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||||||||||||||
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 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 December 31, 2014. | |||||||||||||||||||||||||||||||||||||
Mortgage-Backed Debt Securities. The unrealized losses on our investments in mortgage-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 these investments before recovery of their amortized cost basis. We do not consider these investments to be other-than-temporarily impaired as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||
Equity Securities. Insurance Services maintains a well-diversified equity portfolio consisting of two specific mandates: large capitalization value stocks and smaller company growth stocks. The unrealized losses on our investments in equity securities relate to inherent risks of individual holdings and/or their respective sectors. U.S. equity valuations were higher on average during the fourth quarter of 2014 on generally favorable economic data. We do not consider these investments to be other-than-temporarily impaired as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||
The cost basis and fair value of the available-for-sale debt securities at December 31, 2014, 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. | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Cost Basis | Fair Value | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 72 | $ | 73 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 744 | 760 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 41 | 42 | |||||||||||||||||||||||||||||||||||
Due after ten years | 27 | 27 | |||||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | 292 | 294 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 15 | 15 | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 63 | 67 | |||||||||||||||||||||||||||||||||||
Total debt securities – available-for-sale | $ | 1,254 | $ | 1,278 | |||||||||||||||||||||||||||||||||
Sales of Securities: | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Proceeds from the sale of available-for-sale securities | $ | 434 | $ | 449 | $ | 306 | |||||||||||||||||||||||||||||||
Gross gains from the sale of available-for-sale securities | $ | 38 | $ | 22 | $ | 6 | |||||||||||||||||||||||||||||||
Gross losses from the sale of available-for-sale securities | $ | 2 | $ | 2 | $ | — | |||||||||||||||||||||||||||||||
Postemployment_benefit_plans
Postemployment benefit plans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Postemployment benefit plans | Postemployment benefit plans | ||||||||||||||||||||||||||||||||||||
We provide defined benefit pension plans, defined contribution plans and/or other postretirement benefit plans (retirement health care and life insurance) to employees in many of our locations throughout the world. Our defined benefit pension plans provide a benefit based on years of service and/or the employee’s average earnings near retirement. Our defined contribution plans allow employees to contribute a portion of their salary to help save for retirement, and in certain cases, we provide a matching contribution. The benefit obligation related to our non-U.S. defined benefit pension plans are for employees located primarily in Europe, Japan and Brazil. For other postretirement benefits, substantially all of our benefit obligation is for employees located in the United States. | |||||||||||||||||||||||||||||||||||||
Our U.S. defined benefit pension plans for support and management employees were frozen for certain employees on December 31, 2010, and will freeze for remaining employees on December 31, 2019. On the respective transition dates employees move to a retirement benefit that provides a frozen pension benefit and a 401(k) plan that will include a matching contribution and a new annual employer contribution. | |||||||||||||||||||||||||||||||||||||
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 contractual 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 Statement 1. | |||||||||||||||||||||||||||||||||||||
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 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 Statement 1. | |||||||||||||||||||||||||||||||||||||
A. | Benefit obligations | ||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 14,419 | $ | 15,913 | $ | 14,782 | $ | 4,609 | $ | 4,737 | $ | 4,299 | $ | 4,784 | $ | 5,453 | $ | 5,381 | |||||||||||||||||||
Service cost | 157 | 196 | 185 | 109 | 120 | 108 | 82 | 108 | 92 | ||||||||||||||||||||||||||||
Interest cost | 648 | 581 | 609 | 185 | 166 | 182 | 213 | 195 | 221 | ||||||||||||||||||||||||||||
Plan amendments | — | — | — | — | — | 12 | (1 | ) | 1 | (38 | ) | ||||||||||||||||||||||||||
Actuarial losses (gains) | 1,994 | (1,450 | ) | 1,168 | 604 | (41 | ) | 385 | 196 | (658 | ) | 186 | |||||||||||||||||||||||||
Foreign currency exchange rates | — | — | — | (436 | ) | (81 | ) | 49 | (30 | ) | (19 | ) | (11 | ) | |||||||||||||||||||||||
Participant contributions | — | — | — | 9 | 10 | 9 | 61 | 57 | 48 | ||||||||||||||||||||||||||||
Benefits paid - gross | (963 | ) | (845 | ) | (831 | ) | (206 | ) | (254 | ) | (190 | ) | (377 | ) | (339 | ) | (394 | ) | |||||||||||||||||||
Less: federal subsidy on benefits paid | — | — | — | — | — | — | 14 | 8 | 16 | ||||||||||||||||||||||||||||
Curtailments, settlements and termination benefits | (6 | ) | (7 | ) | — | (53 | ) | (56 | ) | (67 | ) | (4 | ) | — | (48 | ) | |||||||||||||||||||||
Acquisitions, divestitures and other 1 | — | 31 | — | (20 | ) | 8 | (50 | ) | — | (22 | ) | — | |||||||||||||||||||||||||
Benefit obligation, end of year | $ | 16,249 | $ | 14,419 | $ | 15,913 | $ | 4,801 | $ | 4,609 | $ | 4,737 | $ | 4,938 | $ | 4,784 | $ | 5,453 | |||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 15,701 | $ | 14,056 | $ | 15,132 | $ | 4,408 | $ | 4,247 | $ | 4,329 | |||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligation: | |||||||||||||||||||||||||||||||||||||
Discount rate 2 | 3.8 | % | 4.6 | % | 3.7 | % | 3.3 | % | 4.1 | % | 3.7 | % | 3.9 | % | 4.6 | % | 3.7 | % | |||||||||||||||||||
Rate of compensation increase 2 | 4 | % | 4 | % | 4.5 | % | 4 | % | 4.2 | % | 3.9 | % | 4 | % | 4 | % | 4.4 | % | |||||||||||||||||||
1 | In 2013, charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits. See Note 26 regarding the divestiture of the third party logistics business in 2012. | ||||||||||||||||||||||||||||||||||||
2 | End of year rates are used to determine net periodic cost for the subsequent year. See Note 12E. | ||||||||||||||||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | One-percentage- | One-percentage- | |||||||||||||||||||||||||||||||||||
point increase | point decrease | ||||||||||||||||||||||||||||||||||||
Effect on 2014 service and interest cost components of other postretirement benefit cost | $ | 24 | $ | (20 | ) | ||||||||||||||||||||||||||||||||
Effect on accumulated postretirement benefit obligation | $ | 298 | $ | (245 | ) | ||||||||||||||||||||||||||||||||
B. | Plan assets | ||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 12,395 | $ | 10,981 | $ | 9,997 | $ | 3,949 | $ | 3,426 | $ | 2,818 | $ | 822 | $ | 789 | $ | 814 | |||||||||||||||||||
Actual return on plan assets | 849 | 1,722 | 1,235 | 507 | 535 | 368 | 75 | 158 | 117 | ||||||||||||||||||||||||||||
Foreign currency exchange rates | — | — | — | (352 | ) | (41 | ) | 47 | — | — | — | ||||||||||||||||||||||||||
Company contributions | 255 | 541 | 580 | 265 | 303 | 446 | 195 | 157 | 204 | ||||||||||||||||||||||||||||
Participant contributions | — | — | — | 9 | 10 | 9 | 61 | 57 | 48 | ||||||||||||||||||||||||||||
Benefits paid | (963 | ) | (845 | ) | (831 | ) | (206 | ) | (254 | ) | (190 | ) | (377 | ) | (339 | ) | (394 | ) | |||||||||||||||||||
Settlements and termination benefits | (6 | ) | (4 | ) | — | (50 | ) | (30 | ) | (72 | ) | — | — | — | |||||||||||||||||||||||
Acquisitions, divestitures and other | — | — | — | (22 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 12,530 | $ | 12,395 | $ | 10,981 | $ | 4,100 | $ | 3,949 | $ | 3,426 | $ | 776 | $ | 822 | $ | 789 | |||||||||||||||||||
In general, our strategy for both the U.S. and non-U.S. pensions includes further aligning our investments to our liabilities, while reducing risk in our portfolio. The current U.S. pension target asset allocations are 50 percent equities and 50 percent fixed income. These target allocations will be revisited periodically to ensure that they reflect our overall objectives. The non-U.S. pension weighted-average target allocations are 46 percent equities, 46 percent fixed income, 6 percent real estate and 2 percent other. The target allocations for each plan vary based upon local statutory requirements, demographics of plan participants and funded status. The non-U.S. plan assets are primarily invested in non-U.S. securities. | |||||||||||||||||||||||||||||||||||||
Our target allocations for the other postretirement benefit plans are 70 percent equities and 30 percent fixed income. | |||||||||||||||||||||||||||||||||||||
The U.S. plans are rebalanced to plus or minus 5 percentage points of the target asset allocation ranges on a monthly basis. The frequency of rebalancing for the non-U.S. plans varies depending on the plan. As a result of our diversification strategies, there are no significant concentrations of risk within the portfolio of investments except for the holdings in Caterpillar stock in 2013 and 2012 as discussed below. | |||||||||||||||||||||||||||||||||||||
The use of certain derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. The plans do not engage in derivative contracts for speculative purposes. | |||||||||||||||||||||||||||||||||||||
The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2 and 3). See Note 18 for a discussion of the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||
Fair values are determined as follows: | |||||||||||||||||||||||||||||||||||||
• | Equity securities are primarily based on valuations for identical instruments in active markets. | ||||||||||||||||||||||||||||||||||||
• | Fixed income securities are primarily based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds. | ||||||||||||||||||||||||||||||||||||
• | Real estate is stated at the fund’s net asset value or at appraised value. | ||||||||||||||||||||||||||||||||||||
• | Cash, short-term instruments and other are based on the carrying amount, which approximates fair value, or the fund’s net asset value. | ||||||||||||||||||||||||||||||||||||
The fair value of the pension and other postretirement benefit plan assets by category is summarized below: | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 3,713 | $ | 1 | $ | 161 | $ | 3,875 | |||||||||||||||||||||||||||||
Non-U.S. equities | 2,291 | 12 | 1 | 2,304 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 3,985 | 25 | 4,010 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 552 | — | 552 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 528 | — | 528 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 752 | 2 | 754 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 62 | 2 | 64 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 9 | 9 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 37 | 397 | — | 434 | |||||||||||||||||||||||||||||||||
Total U.S. pension assets | $ | 6,041 | $ | 6,289 | $ | 200 | $ | 12,530 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 4,337 | $ | — | $ | 129 | $ | 4,466 | |||||||||||||||||||||||||||||
Non-U.S. equities | 3,058 | — | — | 3,058 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 2,123 | 34 | 2,157 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 327 | 20 | 347 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 774 | — | 774 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 905 | — | 905 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 52 | — | 52 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 8 | 8 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 22 | 606 | — | 628 | |||||||||||||||||||||||||||||||||
Total U.S. pension assets | $ | 7,417 | $ | 4,787 | $ | 191 | $ | 12,395 | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 4,460 | $ | 3 | $ | 98 | $ | 4,561 | |||||||||||||||||||||||||||||
Non-U.S. equities | 2,691 | 2 | — | 2,693 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 1,490 | 23 | 1,513 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 231 | 10 | 241 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 694 | 8 | 702 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 794 | 1 | 795 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 33 | 3 | 36 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 8 | 8 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 13 | 419 | — | 432 | |||||||||||||||||||||||||||||||||
Total U.S. pension assets | $ | 7,164 | $ | 3,666 | $ | 151 | $ | 10,981 | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 552 | $ | — | $ | — | $ | 552 | |||||||||||||||||||||||||||||
Non-U.S. equities | 794 | 250 | — | 1,044 | |||||||||||||||||||||||||||||||||
Global equities 1 | 218 | 52 | — | 270 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 81 | 9 | 90 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 503 | 2 | 505 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 836 | — | 836 | |||||||||||||||||||||||||||||||||
Global fixed income 1 | — | 363 | — | 363 | |||||||||||||||||||||||||||||||||
Real estate | — | 182 | 48 | 230 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other 2 | 159 | 50 | — | 209 | |||||||||||||||||||||||||||||||||
Total non-U.S. pension assets | $ | 1,723 | $ | 2,318 | $ | 59 | $ | 4,100 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 607 | $ | 1 | $ | — | $ | 608 | |||||||||||||||||||||||||||||
Non-U.S. equities | 1,022 | 160 | — | 1,182 | |||||||||||||||||||||||||||||||||
Global equities 1 | 235 | 54 | — | 289 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 84 | 9 | 93 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 534 | 12 | 546 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 418 | — | 418 | |||||||||||||||||||||||||||||||||
Global fixed income 1 | — | 397 | — | 397 | |||||||||||||||||||||||||||||||||
Real estate | — | 136 | 111 | 247 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other 2 | 141 | 25 | — | 166 | |||||||||||||||||||||||||||||||||
Total non-U.S. pension assets | $ | 2,005 | $ | 1,812 | $ | 132 | $ | 3,949 | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 436 | $ | 2 | $ | — | $ | 438 | |||||||||||||||||||||||||||||
Non-U.S. equities | 1,038 | 118 | — | 1,156 | |||||||||||||||||||||||||||||||||
Global equities 1 | 244 | 27 | — | 271 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 37 | 3 | 40 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 494 | 2 | 496 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 169 | — | 169 | |||||||||||||||||||||||||||||||||
Global fixed income 1 | — | 403 | — | 403 | |||||||||||||||||||||||||||||||||
Real estate | — | 114 | 104 | 218 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other 2 | 185 | 47 | — | 232 | |||||||||||||||||||||||||||||||||
Total non-U.S. pension assets | $ | 1,903 | $ | 1,414 | $ | 109 | $ | 3,426 | |||||||||||||||||||||||||||||
1 | Includes funds that invest in both U.S. and non-U.S. securities. | ||||||||||||||||||||||||||||||||||||
2 | Includes funds that invest in multiple asset classes, hedge funds and other. | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 392 | $ | — | $ | — | $ | 392 | |||||||||||||||||||||||||||||
Non-U.S. equities | 158 | 1 | — | 159 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 103 | — | 103 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 17 | — | 17 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 30 | — | 30 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 50 | — | 50 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 9 | 13 | — | 22 | |||||||||||||||||||||||||||||||||
Total other postretirement benefit assets | $ | 559 | $ | 217 | $ | — | $ | 776 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 388 | $ | — | $ | — | $ | 388 | |||||||||||||||||||||||||||||
Non-U.S. equities | 189 | — | — | 189 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 101 | — | 101 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 17 | — | 17 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 23 | — | 23 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 49 | — | 49 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 8 | 45 | — | 53 | |||||||||||||||||||||||||||||||||
Total other postretirement benefit assets | $ | 585 | $ | 237 | $ | — | $ | 822 | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 387 | $ | — | $ | — | $ | 387 | |||||||||||||||||||||||||||||
Non-U.S. equities | 194 | — | — | 194 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 70 | — | 70 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 11 | — | 11 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 27 | — | 27 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 33 | — | 33 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 18 | 47 | — | 65 | |||||||||||||||||||||||||||||||||
Total other postretirement benefit assets | $ | 599 | $ | 190 | $ | — | $ | 789 | |||||||||||||||||||||||||||||
Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2014, 2013 and 2012. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Equities | Fixed Income | Real Estate | Other | |||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 77 | $ | 51 | $ | 8 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | (4 | ) | — | — | (1 | ) | |||||||||||||||||||||||||||||||
Realized gains (losses) | 4 | 2 | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | 21 | (4 | ) | — | 1 | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (4 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 98 | $ | 45 | $ | 8 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | 10 | (1 | ) | — | — | ||||||||||||||||||||||||||||||||
Realized gains (losses) | 4 | — | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | 17 | 12 | — | — | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (2 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 129 | $ | 54 | $ | 8 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | 1 | — | 1 | — | |||||||||||||||||||||||||||||||||
Realized gains (losses) | 19 | 3 | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | 13 | (23 | ) | — | — | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (5 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 162 | $ | 29 | $ | 9 | $ | — | |||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | 9 | $ | 97 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | — | — | 8 | — | |||||||||||||||||||||||||||||||||
Realized gains (losses) | — | — | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | — | (1 | ) | (1 | ) | — | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (3 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 5 | $ | 104 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | — | — | 7 | — | |||||||||||||||||||||||||||||||||
Realized gains (losses) | — | — | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | — | 16 | — | — | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 21 | $ | 111 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | — | (1 | ) | (23 | ) | — | |||||||||||||||||||||||||||||||
Realized gains (losses) | — | — | 22 | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | — | (1 | ) | (62 | ) | — | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (8 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | — | $ | 11 | $ | 48 | $ | — | |||||||||||||||||||||||||||||
Equity securities within plan assets include Caterpillar Inc. common stock in the amounts of: | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits 1 | Non-U.S. Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Caterpillar Inc. common stock | $ | — | $ | 495 | $ | 597 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||||||
1 | Amounts represent 4 percent and 5 percent of total plan assets for 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||
C. | Funded status | ||||||||||||||||||||||||||||||||||||
The funded status of the plans, reconciled to the amount reported on Statement 3, is as follows: | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
End of Year | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 12,530 | $ | 12,395 | $ | 10,981 | $ | 4,100 | $ | 3,949 | $ | 3,426 | $ | 776 | $ | 822 | $ | 789 | |||||||||||||||||||
Benefit obligations | 16,249 | 14,419 | 15,913 | 4,801 | 4,609 | 4,737 | 4,938 | 4,784 | 5,453 | ||||||||||||||||||||||||||||
Over (under) funded status recognized in financial position | $ | (3,719 | ) | $ | (2,024 | ) | $ | (4,932 | ) | $ | (701 | ) | $ | (660 | ) | $ | (1,311 | ) | $ | (4,162 | ) | $ | (3,962 | ) | $ | (4,664 | ) | ||||||||||
Components of net amount recognized in financial position: | |||||||||||||||||||||||||||||||||||||
Other assets (non-current asset) | $ | 3 | $ | 5 | $ | — | $ | 144 | $ | 123 | $ | 30 | $ | — | $ | — | $ | — | |||||||||||||||||||
Accrued wages, salaries and employee benefits (current liability) | (28 | ) | (26 | ) | (23 | ) | (24 | ) | (29 | ) | (27 | ) | (160 | ) | (169 | ) | (169 | ) | |||||||||||||||||||
Liability for postemployment benefits (non-current liability) | (3,694 | ) | (2,003 | ) | (4,909 | ) | (821 | ) | (754 | ) | (1,314 | ) | (4,002 | ) | (3,793 | ) | (4,495 | ) | |||||||||||||||||||
Net liability recognized | $ | (3,719 | ) | $ | (2,024 | ) | $ | (4,932 | ) | $ | (701 | ) | $ | (660 | ) | $ | (1,311 | ) | $ | (4,162 | ) | $ | (3,962 | ) | $ | (4,664 | ) | ||||||||||
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: | |||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 6,034 | $ | 4,396 | $ | 7,286 | $ | 1,494 | $ | 1,373 | $ | 1,907 | $ | 800 | $ | 662 | $ | 1,528 | |||||||||||||||||||
Prior service cost (credit) | 2 | 19 | 36 | 9 | 13 | 22 | (31 | ) | (84 | ) | (159 | ) | |||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | — | — | — | — | 3 | ||||||||||||||||||||||||||||
Total | $ | 6,036 | $ | 4,415 | $ | 7,322 | $ | 1,503 | $ | 1,386 | $ | 1,929 | $ | 769 | $ | 578 | $ | 1,372 | |||||||||||||||||||
The estimated amounts that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2014 into net periodic benefit cost (pre-tax) in 2015 are as follows: | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | U.S. | Non-U.S. | Other | ||||||||||||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 507 | $ | 101 | $ | 53 | |||||||||||||||||||||||||||||||
Prior service cost (credit) | 1 | — | (55 | ) | |||||||||||||||||||||||||||||||||
Total | $ | 508 | $ | 101 | $ | (2 | ) | ||||||||||||||||||||||||||||||
The following amounts relate to our pension plans with projected benefit obligations in excess of plan assets: | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits at Year-end | Non-U.S. Pension Benefits at Year-end | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 16,182 | $ | 14,352 | $ | 15,913 | $ | 4,539 | $ | 4,177 | $ | 4,310 | |||||||||||||||||||||||||
Accumulated benefit obligation | $ | 15,634 | $ | 13,989 | $ | 15,132 | $ | 4,148 | $ | 3,820 | $ | 3,903 | |||||||||||||||||||||||||
Fair value of plan assets | $ | 12,460 | $ | 12,323 | $ | 10,981 | $ | 3,695 | $ | 3,394 | $ | 2,969 | |||||||||||||||||||||||||
The following amounts relate to our pension plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits at Year-end | Non-U.S. Pension Benefits at Year-end | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 16,182 | $ | 14,352 | $ | 15,913 | $ | 1,879 | $ | 1,436 | $ | 4,107 | |||||||||||||||||||||||||
Accumulated benefit obligation | $ | 15,634 | $ | 13,989 | $ | 15,132 | $ | 1,734 | $ | 1,374 | $ | 3,752 | |||||||||||||||||||||||||
Fair value of plan assets | $ | 12,460 | $ | 12,323 | $ | 10,981 | $ | 1,068 | $ | 797 | $ | 2,806 | |||||||||||||||||||||||||
The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented. | |||||||||||||||||||||||||||||||||||||
D. | Expected cash flow | ||||||||||||||||||||||||||||||||||||
Information about the expected cash flow for the pension and other postretirement benefit plans is as follows: | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | U.S. | Non-U.S. | Other | ||||||||||||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Employer contributions: | |||||||||||||||||||||||||||||||||||||
2015 (expected) | $ | 30 | $ | 160 | $ | 200 | |||||||||||||||||||||||||||||||
Expected benefit payments: | |||||||||||||||||||||||||||||||||||||
2015 | $ | 890 | $ | 220 | $ | 320 | |||||||||||||||||||||||||||||||
2016 | 910 | 200 | 320 | ||||||||||||||||||||||||||||||||||
2017 | 920 | 190 | 320 | ||||||||||||||||||||||||||||||||||
2018 | 930 | 190 | 330 | ||||||||||||||||||||||||||||||||||
2019 | 940 | 200 | 330 | ||||||||||||||||||||||||||||||||||
2020-2024 | 4,790 | 1,140 | 1,630 | ||||||||||||||||||||||||||||||||||
Total | $ | 9,380 | $ | 2,140 | $ | 3,250 | |||||||||||||||||||||||||||||||
The above table reflects the total employer contributions and benefits expected to be paid from the plan or from company assets and does not include the participants’ share of the cost. The expected benefit payments for our other postretirement benefits include payments for prescription drug benefits. Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments are as follows: | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | Total | ||||||||||||||||||||||||||||||
Other postretirement benefits | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 20 | $ | 95 | $ | 175 | |||||||||||||||||||||||
E. | Net periodic cost | ||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 157 | $ | 196 | $ | 185 | $ | 109 | $ | 120 | $ | 108 | $ | 82 | $ | 108 | $ | 92 | |||||||||||||||||||
Interest cost | 648 | 581 | 609 | 185 | 166 | 182 | 213 | 195 | 221 | ||||||||||||||||||||||||||||
Expected return on plan assets 1 | (885 | ) | (832 | ) | (812 | ) | (258 | ) | (225 | ) | (215 | ) | (52 | ) | (56 | ) | (63 | ) | |||||||||||||||||||
Other adjustments 2 | — | 31 | — | — | — | — | — | (22 | ) | — | |||||||||||||||||||||||||||
Curtailments, settlements and termination benefits 3 | — | — | 7 | 14 | 2 | 38 | (2 | ) | — | (40 | ) | ||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||||
Prior service cost (credit) 4 | 17 | 18 | 19 | — | 1 | 1 | (55 | ) | (73 | ) | (68 | ) | |||||||||||||||||||||||||
Net actuarial loss (gain) 5 | 392 | 546 | 504 | 86 | 128 | 97 | 41 | 107 | 100 | ||||||||||||||||||||||||||||
Total cost included in operating profit | $ | 329 | $ | 540 | $ | 512 | $ | 136 | $ | 192 | $ | 211 | $ | 227 | $ | 261 | $ | 244 | |||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): | |||||||||||||||||||||||||||||||||||||
Current year actuarial loss (gain) | $ | 2,030 | $ | (2,344 | ) | $ | 745 | $ | 207 | $ | (406 | ) | $ | 225 | $ | 179 | $ | (759 | ) | $ | 133 | ||||||||||||||||
Amortization of actuarial (loss) gain | (392 | ) | (546 | ) | (504 | ) | (86 | ) | (128 | ) | (97 | ) | (41 | ) | (107 | ) | (100 | ) | |||||||||||||||||||
Current year prior service cost (credit) | — | — | (7 | ) | (4 | ) | (7 | ) | 10 | (2 | ) | 2 | (38 | ) | |||||||||||||||||||||||
Amortization of prior service (cost) credit | (17 | ) | (18 | ) | (19 | ) | — | (1 | ) | (1 | ) | 55 | 73 | 68 | |||||||||||||||||||||||
Amortization of transition (obligation) asset | — | — | — | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||||||||
Total recognized in other comprehensive income | 1,621 | (2,908 | ) | 215 | 117 | (542 | ) | 137 | 191 | (793 | ) | 61 | |||||||||||||||||||||||||
Total recognized in net periodic cost and other comprehensive income | $ | 1,950 | $ | (2,368 | ) | $ | 727 | $ | 253 | $ | (350 | ) | $ | 348 | $ | 418 | $ | (532 | ) | $ | 305 | ||||||||||||||||
Weighted-average assumptions used to determine net cost: | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.6 | % | 3.7 | % | 4.3 | % | 4.1 | % | 3.7 | % | 4.3 | % | 4.6 | % | 3.7 | % | 4.3 | % | |||||||||||||||||||
Expected rate of return on plan assets 6 | 7.8 | % | 7.8 | % | 8 | % | 6.9 | % | 6.8 | % | 7.1 | % | 7.8 | % | 7.8 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 4 | % | 4.5 | % | 4.5 | % | 4.2 | % | 3.9 | % | 3.9 | % | 4 | % | 4.4 | % | 4.4 | % | |||||||||||||||||||
1 | Expected return on plan assets developed using calculated market-related value of plan assets which recognizes differences in expected and actual returns over a three-year period. | ||||||||||||||||||||||||||||||||||||
2 | Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits. | ||||||||||||||||||||||||||||||||||||
3 | Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in Statement 1. | ||||||||||||||||||||||||||||||||||||
4 | Prior service cost (credit) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period of active 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) are amortized using the straight-line method over the remaining life expectancy of those participants. | ||||||||||||||||||||||||||||||||||||
5 | Net actuarial loss (gain) for pension and other postretirement benefit plans are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For plans in which all or almost all of the plan’s participants are inactive, net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of the inactive participants. | ||||||||||||||||||||||||||||||||||||
6 | The weighted-average rates for 2015 are 7.4 percent and 6.8 percent for U.S. and non-U.S. pension plans, respectively. | ||||||||||||||||||||||||||||||||||||
The assumed discount rate is used to discount future benefit obligations back to today’s dollars. The U.S. discount rate is based on a benefit cash flow-matching approach and represents the rate at which our benefit obligations could effectively be settled as of our measurement date, December 31. The benefit cash flow-matching approach involves analyzing Caterpillar’s projected cash flows against a high quality bond yield curve, calculated using a wide population of corporate Aa bonds available on the measurement date. The very highest and lowest yielding bonds (top and bottom 10 percent) are excluded from the analysis. A similar process is used to determine the assumed discount rate for our most significant non-U.S. plans. This rate is sensitive to changes in interest rates. A decrease in the discount rate would increase our obligation and future expense. | |||||||||||||||||||||||||||||||||||||
Our U.S. expected long-term rate of return on plan assets is based on our estimate of long-term passive returns for equities and fixed income securities weighted by the allocation of our pension assets. Based on historical performance, we increase the passive returns due to our active management of the plan assets. To arrive at our expected long-term return, the amount added for active management was 1 percent for 2014, 2013 and 2012. A similar process is used to determine this rate for our non-U.S. plans. | |||||||||||||||||||||||||||||||||||||
The assumed health care trend rate represents the rate at which health care costs are assumed to increase. We assumed a weighted-average increase of 6.6 percent in our calculation of 2014 benefit expense. We expect a weighted-average increase of 6.6 percent during 2015. The 2015 rates are assumed to decrease gradually to the ultimate health care trend rate of 5 percent in 2021. This rate represents 3 percent general inflation plus 2 percent additional health care inflation. | |||||||||||||||||||||||||||||||||||||
F. | Other postemployment benefit plans | ||||||||||||||||||||||||||||||||||||
We offer long-term disability benefits, continued health care for disabled employees, survivor income benefit insurance and supplemental unemployment benefits to substantially all U.S. employees. | |||||||||||||||||||||||||||||||||||||
G. | Defined contribution plans | ||||||||||||||||||||||||||||||||||||
We have both U.S. and non-U.S. employee defined contribution plans to help employees save for retirement. Our primary U.S. 401(k) plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis. Employees with frozen defined benefit pension accruals are eligible for matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age). Employees that are still accruing benefits under a defined benefit pension plan are eligible for matching contributions equal to 50 percent of employee contributions up to 6 percent of cash compensation. Various other U.S. and non-U.S. defined contribution plans allow eligible employees to contribute a portion of their salary to the plans, and in some cases, we provide a matching contribution to the funds. | |||||||||||||||||||||||||||||||||||||
Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
U.S. plans | $ | 301 | $ | 308 | $ | 260 | |||||||||||||||||||||||||||||||
Non-U.S. plans | 85 | 64 | 60 | ||||||||||||||||||||||||||||||||||
$ | 386 | $ | 372 | $ | 320 | ||||||||||||||||||||||||||||||||
H. | Summary of long-term liability: | ||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Pensions: | |||||||||||||||||||||||||||||||||||||
U.S. pensions | $ | 3,694 | $ | 2,003 | $ | 4,909 | |||||||||||||||||||||||||||||||
Non-U.S. pensions | 821 | 754 | 1,314 | ||||||||||||||||||||||||||||||||||
Total pensions | 4,515 | 2,757 | 6,223 | ||||||||||||||||||||||||||||||||||
Postretirement benefits other than pensions | 4,002 | 3,793 | 4,495 | ||||||||||||||||||||||||||||||||||
Other postemployment benefits | 112 | 99 | 81 | ||||||||||||||||||||||||||||||||||
Defined contribution | 334 | 324 | 286 | ||||||||||||||||||||||||||||||||||
$ | 8,963 | $ | 6,973 | $ | 11,085 | ||||||||||||||||||||||||||||||||
Shortterm_borrowings
Short-term borrowings | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Short-term Borrowings Disclosure [Abstract] | |||||||||||||
Short-term borrowings | Short-term borrowings | ||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Machinery, Energy & Transportation: | |||||||||||||
Notes payable to banks | $ | 9 | $ | 16 | $ | 484 | |||||||
Notes payable to certain former shareholders of Siwei | — | — | 152 | ||||||||||
Commercial paper | — | — | — | ||||||||||
9 | 16 | 636 | |||||||||||
Financial Products: | |||||||||||||
Notes payable to banks | 411 | 545 | 418 | ||||||||||
Commercial paper | 3,688 | 2,502 | 3,654 | ||||||||||
Demand notes | 600 | 616 | 579 | ||||||||||
4,699 | 3,663 | 4,651 | |||||||||||
Total short-term borrowings | $ | 4,708 | $ | 3,679 | $ | 5,287 | |||||||
The weighted-average interest rates on short-term borrowings outstanding were: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Notes payable to banks | 6.8 | % | 6.3 | % | 5.8 | % | |||||||
Commercial paper | 0.3 | % | 0.5 | % | 0.6 | % | |||||||
Demand notes | 0.8 | % | 0.8 | % | 0.8 | % | |||||||
The notes payable to certain former shareholders of Siwei did not bear interest and were settled during the second quarter of 2013. Please refer to Note 24 for more information. Please refer to Note 18 and Table III for fair value information on short-term borrowings. |
Longterm_debt
Long-term debt | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Long-term debt | Long-term debt | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Machinery, Energy & Transportation: | |||||||||||||||||||||
Notes—1.375% due 2014 | $ | — | $ | — | $ | 750 | |||||||||||||||
Notes—5.700% due 2016 | 504 | 506 | 508 | ||||||||||||||||||
Notes—3.900% due 2021 | 1,246 | 1,246 | 1,245 | ||||||||||||||||||
Notes—5.200% due 2041 | 757 | 757 | 757 | ||||||||||||||||||
Debentures—0.950% due 2015 | — | 500 | 500 | ||||||||||||||||||
Debentures—1.500% due 2017 | 500 | 500 | 499 | ||||||||||||||||||
Debentures—7.900% due 2018 | 899 | 899 | 899 | ||||||||||||||||||
Debentures—9.375% due 2021 | 120 | 120 | 120 | ||||||||||||||||||
Debentures—2.600% due 2022 | 498 | 498 | 498 | ||||||||||||||||||
Debentures—8.000% due 2023 | 82 | 82 | 82 | ||||||||||||||||||
Debentures—3.400% due 2024 | 1,000 | — | — | ||||||||||||||||||
Debentures—6.625% due 2028 | 193 | 193 | 193 | ||||||||||||||||||
Debentures—7.300% due 2031 | 241 | 241 | 241 | ||||||||||||||||||
Debentures—5.300% due 20351 | 211 | 209 | 208 | ||||||||||||||||||
Debentures—6.050% due 2036 | 459 | 459 | 459 | ||||||||||||||||||
Debentures—8.250% due 2038 | 65 | 65 | 65 | ||||||||||||||||||
Debentures—6.950% due 2042 | 160 | 160 | 160 | ||||||||||||||||||
Debentures—3.803% due 20422 | 1,188 | 1,168 | 1,149 | ||||||||||||||||||
Debentures—4.300% due 2044 | 497 | — | — | ||||||||||||||||||
Debentures—4.750% due 2064 | 498 | — | — | ||||||||||||||||||
Debentures—7.375% due 2097 | 244 | 244 | 244 | ||||||||||||||||||
Capital lease obligations | 85 | 97 | 73 | ||||||||||||||||||
Other | 46 | 55 | 16 | ||||||||||||||||||
Total Machinery, Energy & Transportation | 9,493 | 7,999 | 8,666 | ||||||||||||||||||
Financial Products: | |||||||||||||||||||||
Commercial paper | — | — | — | ||||||||||||||||||
Medium-term notes | 17,295 | 17,856 | 18,036 | ||||||||||||||||||
Other | 996 | 864 | 1,050 | ||||||||||||||||||
Total Financial Products | 18,291 | 18,720 | 19,086 | ||||||||||||||||||
Total long-term debt due after one year | $ | 27,784 | $ | 26,719 | $ | 27,752 | |||||||||||||||
1 | Debentures due in 2035 have a face value of $307 million and an effective yield to maturity of 8.55%. | ||||||||||||||||||||
2 | Debentures due in 2042 have a face value of $1,722 million and an effective yield to maturity of 6.33%. | ||||||||||||||||||||
All outstanding notes and debentures are unsecured and rank equally with one another. | |||||||||||||||||||||
On May 8, 2014, we issued $1.0 billion of 3.400% Senior Notes due 2024, $500 million of 4.300% Senior Notes due 2044, and $500 million of 4.750% Senior Notes due 2064. | |||||||||||||||||||||
On June 26, 2012 we issued $500 million of 0.950% Senior Notes due 2015, $500 million of 1.500% Senior Notes due 2017, and $500 million of 2.600% Senior Notes due 2022. | |||||||||||||||||||||
On August 15, 2012 and August 27, 2012, we exchanged $1.72 billion of newly issued 3.803% Debentures due 2042 and $179 million of cash for $1.33 billion of several series of our outstanding debentures of varying interest rates and maturity dates. This exchange met the requirements to be accounted for as a debt modification. | |||||||||||||||||||||
We may redeem the 5.700%, 3.900% and 5.200% notes and the 7.900%, 6.625%, 7.300%, 5.300%, 6.050%, 8.250%, 6.950% and 7.375% debentures in whole or in part at our option at any time at a redemption price equal to the greater of 100% of the principal amount or the sum of the present value of the remaining scheduled payments of principal and interest of the notes or debentures to be redeemed. We may redeem some or all of the 0.950% debentures and the 1.500% debentures at our option at any time, and some or all of the 2.600% debentures at any time prior to March 26, 2022 (three months prior to the maturity date of the 2022 debentures), in each case at a redemption price equal to the greater of 100% of the principal amount of the notes being redeemed or at the discounted present value of the notes, calculated in accordance with the terms of the relevant notes. We may redeem some or all of the 3.803% debentures at any time at a redemption price equal to the greater of 100% of the principal amount of the debentures being redeemed or at a make-whole price calculated in accordance with the terms of the debentures. The terms of other notes and debentures do not specify a redemption option prior to maturity. | |||||||||||||||||||||
Cat Financial's medium term notes are offered by prospectus and are issued through agents at fixed and floating rates. These notes have a weighted average interest rate of 2.4% with remaining maturities up to 12 years at December 31, 2014. | |||||||||||||||||||||
The aggregate amounts of maturities of long-term debt during each of the years 2015 through 2019, including amounts due within one year and classified as current, are: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(Millions of dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Machinery, Energy & Transportation | $ | 510 | $ | 543 | $ | 509 | $ | 906 | $ | 7 | |||||||||||
Financial Products | 6,283 | 5,507 | 5,487 | 2,411 | 2,381 | ||||||||||||||||
$ | 6,793 | $ | 6,050 | $ | 5,996 | $ | 3,317 | $ | 2,388 | ||||||||||||
Interest paid on short-term and long-term borrowings for 2014, 2013 and 2012 was $1,109 million, $1,141 million and $1,404 million, respectively. | |||||||||||||||||||||
Please refer to Note 18 and Table III for fair value information on long-term debt. |
Credit_commitments
Credit commitments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Credit Commitments [Abstract] | |||||||||||||
Credit commitments | Credit commitments | ||||||||||||
December 31, 2014 | |||||||||||||
(Millions of dollars) | Consolidated | Machinery, | Financial | ||||||||||
Energy & | Products | ||||||||||||
Transportation | |||||||||||||
Credit lines available: | |||||||||||||
Global credit facilities | $ | 10,500 | $ | 2,750 | $ | 7,750 | |||||||
Other external | 4,254 | 195 | 4,059 | ||||||||||
Total credit lines available | 14,754 | 2,945 | 11,809 | ||||||||||
Less: Commercial paper outstanding | (3,688 | ) | — | (3,688 | ) | ||||||||
Less: Utilized credit | (1,904 | ) | (9 | ) | (1,895 | ) | |||||||
Available credit | $ | 9,162 | $ | 2,936 | $ | 6,226 | |||||||
We have three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and Cat Financial for general liquidity purposes. Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to Machinery, Energy & Transportation as of December 31, 2014 was $2.75 billion. Our three Global Credit Facilities are: | |||||||||||||
• | The 364-day facility of $3.15 billion (of which $0.82 billion is available to Machinery, Energy & Transportation) expires in September 2015. | ||||||||||||
• | The 2010 four-year facility, as amended in September 2014, of $2.73 billion (of which $0.72 billion is available to Machinery, Energy & Transportation) expires in September 2017. | ||||||||||||
• | The 2011 five-year facility, as amended in September 2014, of $4.62 billion (of which $1.21 billion is available to Machinery, Energy & Transportation) expires in September 2019. | ||||||||||||
Other consolidated credit lines with banks as of December 31, 2014 totaled $4.25 billion. These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our subsidiaries for local funding requirements. Caterpillar or Cat Financial may guarantee subsidiary borrowings under these lines. | |||||||||||||
At December 31, 2014, Caterpillar's consolidated net worth was $22.23 billion, which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined as the consolidated stockholder's equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income (loss). | |||||||||||||
At December 31, 2014, Cat Financial's covenant interest coverage ratio was 2.19 to 1. This is above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. | |||||||||||||
In addition, at December 31, 2014, Cat Financial's six-month covenant leverage ratio was 7.79 to 1 and year-end covenant leverage ratio was 7.83 to 1. This is below the maximum ratio of debt to net worth of 10 to 1, calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. | |||||||||||||
In the event Caterpillar or Cat Financial does not meet one or more of their respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of Cat Financial's other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable, may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2014, there were no borrowings under the Credit Facility. |
Profit_per_share
Profit per share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Profit per share | Profit per share | ||||||||||||
Computations of profit per share: | |||||||||||||
(Dollars in millions except per share data) | 2014 | 2013 | 2012 | ||||||||||
Profit for the period (A) 1 | $ | 3,695 | $ | 3,789 | $ | 5,681 | |||||||
Determination of shares (in millions): | |||||||||||||
Weighted average number of common shares outstanding (B) | 617.2 | 645.2 | 652.6 | ||||||||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price | 11.7 | 13.4 | 17 | ||||||||||
Average common shares outstanding for fully diluted computation (C) 2 | 628.9 | 658.6 | 669.6 | ||||||||||
Profit per share of common stock: | |||||||||||||
Assuming no dilution (A/B) | $ | 5.99 | $ | 5.87 | $ | 8.71 | |||||||
Assuming full dilution (A/C) 2 | $ | 5.88 | $ | 5.75 | $ | 8.48 | |||||||
Shares outstanding as of December 31 (in millions) | 606.2 | 637.8 | 655 | ||||||||||
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 10,266,682, 10,152,448 and 6,066,777 common shares were outstanding in 2014, 2013 and 2012, respectively, which were not included in the computation of diluted earnings per share because the effect would have been antidilutive. | |||||||||||||
In February 2007, the Board of Directors authorized the repurchase of $7.5 billion of Caterpillar common stock (the 2007 Authorization), and in December 2011, the 2007 Authorization was extended through December 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 2013 ASR Agreement), which was completed in June 2013. In accordance with the terms of the April 2013 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 2013 ASR Agreement), which was completed in September 2013. In accordance with the terms of the July 2013 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. | |||||||||||||
In January 2014, we completed the 2007 Authorization and entered into a definitive agreement with Citibank, N.A. to purchase shares of our common stock under an accelerated stock repurchase transaction (January 2014 ASR Agreement), which was completed in March 2014. In accordance with the terms of the January 2014 ASR Agreement, a total of approximately 18.1 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of approximately $1.7 billion. | |||||||||||||
In January 2014, the Board approved a new authorization to repurchase up to $10.0 billion of Caterpillar common stock, which will expire on December 31, 2018. In July 2014, we entered into definitive agreements with Société Générale to purchase shares of our common stock under accelerated stock repurchase transactions (July 2014 ASR Agreements) which were completed in September 2014. In accordance with the terms of the July 2014 ASR Agreements, a total of approximately 23.7 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $2.5 billion. Through the end of 2014, $2.5 billion of the $10.0 billion authorization was spent. |
Accumulated_other_comprehensiv
Accumulated other comprehensive income (loss) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) | ||||||||||||||||||||
Comprehensive income and its components are presented in Statement 2. Changes in Accumulated other comprehensive income (loss), net of tax, included in Statement 4, 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 December 31, 2011 | $ | 206 | $ | (6,568 | ) | $ | (10 | ) | $ | 44 | $ | (6,328 | ) | ||||||||
Balance at December 31, 2012 1 | $ | 456 | $ | (6,914 | ) | $ | (42 | ) | $ | 67 | $ | (6,433 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (280 | ) | 2,280 | (4 | ) | 29 | 2,025 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 482 | 41 | (13 | ) | 510 | |||||||||||||||
Other comprehensive income (loss) | (280 | ) | 2,762 | 37 | 16 | 2,535 | |||||||||||||||
Balance at December 31, 2013 | $ | 176 | $ | (4,152 | ) | $ | (5 | ) | $ | 83 | $ | (3,898 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (1,164 | ) | (1,574 | ) | (118 | ) | 24 | (2,832 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 319 | 4 | (24 | ) | 299 | |||||||||||||||
Other comprehensive income (loss) | (1,164 | ) | (1,255 | ) | (114 | ) | — | (2,533 | ) | ||||||||||||
Balance at December 31, 2014 | $ | (988 | ) | $ | (5,407 | ) | $ | (119 | ) | $ | 83 | $ | (6,431 | ) | |||||||
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 Statement 1 is as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
(Millions of dollars) | Classification of income (expense) | 2014 | 2013 | ||||||||||||||||||
Pension and other postretirement benefits: | |||||||||||||||||||||
Amortization of actuarial gain (loss) | Note 12 1 | $ | (519 | ) | $ | (781 | ) | ||||||||||||||
Amortization of prior service credit (cost) | Note 12 1 | 38 | 54 | ||||||||||||||||||
Amortization of transition asset (obligation) | Note 12 1 | — | (2 | ) | |||||||||||||||||
Reclassifications before tax | (481 | ) | (729 | ) | |||||||||||||||||
Tax (provision) benefit | 162 | 247 | |||||||||||||||||||
Reclassifications net of tax | $ | (319 | ) | $ | (482 | ) | |||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||
Foreign exchange contracts | Other income (expense) | $ | 5 | $ | (57 | ) | |||||||||||||||
Interest rate contracts | Interest expense excluding Financial Products | (5 | ) | — | |||||||||||||||||
Interest rate contracts | Other income (expense) | — | (3 | ) | |||||||||||||||||
Interest rate contracts | Interest expense of Financial Products | (6 | ) | (6 | ) | ||||||||||||||||
Reclassifications before tax | (6 | ) | (66 | ) | |||||||||||||||||
Tax (provision) benefit | 2 | 25 | |||||||||||||||||||
Reclassifications net of tax | $ | (4 | ) | $ | (41 | ) | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Realized gain (loss) on sale of securities | Other income (expense) | $ | 35 | $ | 19 | ||||||||||||||||
Tax (provision) benefit | (11 | ) | (6 | ) | |||||||||||||||||
Reclassifications net of tax | $ | 24 | $ | 13 | |||||||||||||||||
Total reclassifications from Accumulated other comprehensive income (loss) | $ | (299 | ) | $ | (510 | ) | |||||||||||||||
1 Amounts are included in the calculation of net periodic benefit cost. See Note 12 for additional information. | |||||||||||||||||||||
Fair_value_disclosures
Fair value disclosures | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Fair value disclosures | Fair value disclosures | ||||||||||||||||||||||||||||
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 Insurance Services, include a mix of equity and debt instruments (see Note 11 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 on 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 Statement 3 as of December 31, 2014, 2013 and 2012 are summarized below: | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Millions of dollars) | 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 | — | 94 | — | 94 | |||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Corporate bonds | — | 693 | — | 693 | |||||||||||||||||||||||||
Asset-backed securities | — | 105 | — | 105 | |||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||
U.S. governmental agency | — | 294 | — | 294 | |||||||||||||||||||||||||
Residential | — | 15 | — | 15 | |||||||||||||||||||||||||
Commercial | — | 67 | — | 67 | |||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Large capitalization value | 233 | — | — | 233 | |||||||||||||||||||||||||
Smaller company growth | 43 | — | — | 43 | |||||||||||||||||||||||||
Total available-for-sale securities | 286 | 1,268 | — | 1,554 | |||||||||||||||||||||||||
Total Assets | $ | 286 | $ | 1,268 | $ | — | $ | 1,554 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative financial instruments, net | $ | — | $ | 86 | $ | — | $ | 86 | |||||||||||||||||||||
Guarantees | — | — | 12 | 12 | |||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 86 | $ | 12 | $ | 98 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(Millions of dollars) | 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 | — | 120 | — | 120 | |||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Corporate bonds | — | 633 | — | 633 | |||||||||||||||||||||||||
Asset-backed securities | — | 72 | — | 72 | |||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||
U.S. governmental agency | — | 321 | — | 321 | |||||||||||||||||||||||||
Residential | — | 18 | — | 18 | |||||||||||||||||||||||||
Commercial | — | 93 | — | 93 | |||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Large capitalization value | 254 | — | — | 254 | |||||||||||||||||||||||||
Smaller company growth | 49 | — | — | 49 | |||||||||||||||||||||||||
Total available-for-sale securities | 313 | 1,257 | — | 1,570 | |||||||||||||||||||||||||
Derivative financial instruments, net | — | 161 | — | 161 | |||||||||||||||||||||||||
Total Assets | $ | 313 | $ | 1,418 | $ | — | $ | 1,731 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||
Total Liabilities | $ | — | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(Millions of dollars) | 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 years ended December 31, 2014, 2013 and 2012. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions of a market participant. | |||||||||||||||||||||||||||||
(Millions of dollars) | Guarantees | ||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 7 | |||||||||||||||||||||||||||
Acquisitions | 6 | ||||||||||||||||||||||||||||
Issuance of guarantees | 7 | ||||||||||||||||||||||||||||
Expiration of guarantees | (6 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 14 | |||||||||||||||||||||||||||
Issuance of guarantees | 6 | ||||||||||||||||||||||||||||
Expiration of guarantees | (7 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 13 | |||||||||||||||||||||||||||
Issuance of guarantees | 1 | ||||||||||||||||||||||||||||
Expiration of guarantees | (2 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 12 | |||||||||||||||||||||||||||
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 $248 million, $81 million and $117 million for the years ended December 31, 2014, 2013 and 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 Statement 3. | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
TABLE III—Fair Values of Financial Instruments | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Millions of dollars) | Carrying | Fair | Carrying | Fair | Carrying | Fair | Fair Value Levels | Reference | |||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | ||||||||||||||||||||||||
Assets at December 31, | |||||||||||||||||||||||||||||
Cash and short-term investments | $ | 7,341 | $ | 7,341 | $ | 6,081 | $ | 6,081 | $ | 5,490 | $ | 5,490 | 1 | Statement 3 | |||||||||||||||
Restricted cash and short-term investments | 62 | 62 | 53 | 53 | 53 | 53 | 1 | Statement 3 | |||||||||||||||||||||
Available-for-sale securities | 1,554 | 1,554 | 1,570 | 1,570 | 1,586 | 1,586 | 1 & 2 | Notes 11 & 19 | |||||||||||||||||||||
Finance receivables–net (excluding finance leases 1) | 16,426 | 16,159 | 16,049 | 15,913 | 15,404 | 15,359 | 3 | Notes 6 & 19 | |||||||||||||||||||||
Wholesale inventory receivables–net (excluding finance leases 1) | 1,774 | 1,700 | 1,529 | 1,467 | 1,674 | 1,609 | 3 | Notes 6 & 19 | |||||||||||||||||||||
Foreign currency contracts–net | — | — | 45 | 45 | — | — | 2 | Notes 3 & 19 | |||||||||||||||||||||
Interest rate swaps–net | 71 | 71 | 116 | 116 | 219 | 219 | 2 | Notes 3 & 19 | |||||||||||||||||||||
Commodity contracts–net | — | — | — | — | 1 | 1 | 2 | Notes 3 & 19 | |||||||||||||||||||||
Liabilities at December 31, | |||||||||||||||||||||||||||||
Short-term borrowings | 4,708 | 4,708 | 3,679 | 3,679 | 5,287 | 5,287 | 1 | Note 13 | |||||||||||||||||||||
Long-term debt (including amounts due within one year): | |||||||||||||||||||||||||||||
Machinery, Energy & Transportation | 10,003 | 11,973 | 8,759 | 9,905 | 9,779 | 11,969 | 2 | Note 14 | |||||||||||||||||||||
Financial Products | 24,574 | 25,103 | 25,312 | 25,849 | 25,077 | 26,063 | 2 | Note 14 | |||||||||||||||||||||
Foreign currency contracts–net | 143 | 143 | — | — | 66 | 66 | 2 | Notes 3 & 19 | |||||||||||||||||||||
Commodity contracts–net | 14 | 14 | — | — | — | — | 2 | Notes 3 & 19 | |||||||||||||||||||||
Guarantees | 12 | 12 | 13 | 13 | 14 | 14 | 3 | Note 21 | |||||||||||||||||||||
1 | Total excluded items have a net carrying value at December 31, 2014, 2013 and 2012 of $7,638 million, $8,053 million and $7,959 million, respectively. | ||||||||||||||||||||||||||||
Concentration_of_credit_risk
Concentration of credit risk | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration of credit risk | Concentration of credit risk |
Financial instruments with potential credit risk consist primarily of trade and finance receivables and short-term and long-term investments. Additionally, to a lesser extent, we have a potential credit risk associated with counterparties to derivative contracts. | |
Trade receivables are primarily short-term receivables from independently owned and operated dealers and customers which arise in the normal course of business. We perform regular credit evaluations of our dealers and customers. Collateral generally is not required, and the majority of our trade receivables are unsecured. We do, however, when deemed necessary, make use of various devices such as security agreements and letters of credit to protect our interests. No single dealer or customer represents a significant concentration of credit risk. | |
Finance receivables and wholesale inventory receivables primarily represent receivables under installment sales contracts, receivables arising from leasing transactions and notes receivable. We generally maintain a secured interest in the equipment financed. No single customer or dealer represents a significant concentration of credit risk. | |
Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited. Long-term investments, primarily included in Other assets in Statement 3, are comprised primarily of available-for-sale securities at Insurance Services. | |
For derivative contracts, collateral is generally not required of the counterparties or of our company. The company generally enters into International Swaps and Derivatives Association (ISDA) master netting agreements within Machinery, Energy & Transportation and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2014, 2013 and 2012, the maximum exposure to credit loss, including accrued interest, was $151 million, $251 million and $366 million, respectively, before the application of any master netting agreements. | |
Please refer to Note 18 and Table III above for fair value information. |
Operating_leases
Operating leases | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||
Operating leases | Operating leases | ||||||||||||||||||||||||||
We lease certain computer and communications equipment, transportation equipment and other property through operating leases. Total rental expense for operating leases was $391 million, $436 million, and $474 million for 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
Minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year are: | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||
$ | 229 | $ | 174 | $ | 125 | $ | 92 | $ | 65 | $ | 189 | $ | 874 | ||||||||||||||
Guarantees_and_product_warrant
Guarantees and product warranty | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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. 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 2025. | |||||||||||||
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. See Note 26 for further discussion on this divestiture. 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 significant loss has been experienced or is anticipated under any of these guarantees. At December 31, 2014, 2013 and 2012, the related liability was $12 million, $13 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 at December 31 are as follows: | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Caterpillar dealer guarantees | $ | 209 | $ | 193 | $ | 180 | |||||||
Customer guarantees | 49 | 62 | 77 | ||||||||||
Customer guarantees - supplier consortium | 321 | 364 | — | ||||||||||
Third party logistics business guarantees | 129 | 151 | 176 | ||||||||||
Other guarantees | 32 | 35 | 53 | ||||||||||
Total guarantees | $ | 740 | $ | 805 | $ | 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 its 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 December 31, 2014, 2013 and 2012, the SPC’s assets of $1,086 million, $1,005 million and $927 million, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1,085 million, $1,005 million and $927 million, respectively, were 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. | |||||||||||||
Cat Financial is party to agreements in the normal course of business with selected customers and Caterpillar dealers in which they commit to provide a set dollar amount of financing on a pre-approved basis. They also provide lines of credit to certain customers and Caterpillar dealers, of which a portion remains unused as of the end of the period. Commitments and lines of credit generally have fixed expiration dates or other termination clauses. It has been Cat Financial's experience that not all commitments and lines of credit will be used. Management applies the same credit policies when making commitments and granting lines of credit as it does for any other financing. | |||||||||||||
Cat Financial does not require collateral for these commitments/lines, but if credit is extended, collateral may be required upon funding. The amount of the unused commitments and lines of credit for dealers as of December 31, 2014, 2013 and 2012 was $12,412 million, $10,503 million and $10,863 million, respectively. The amount of the unused commitments and lines of credit for customers as of December 31, 2014, 2013 and 2012 was $4,005 million, $4,635 million and $4,690 million, respectively. | |||||||||||||
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) | 2014 | 2013 | 2012 | ||||||||||
Warranty liability, January 1 | $ | 1,367 | $ | 1,477 | $ | 1,308 | |||||||
Reduction in liability (payments) | (1,071 | ) | (938 | ) | (920 | ) | |||||||
Increase in liability (new warranties) | 1,130 | 1 | 828 | 1,089 | |||||||||
Warranty liability, December 31 | $ | 1,426 | $ | 1,367 | $ | 1,477 | |||||||
1 The increase in liability includes approximately $170 million for changes in estimates for pre-existing warranties due to higher than expected actual warranty claim experience. | |||||||||||||
Environmental_and_legal_matter
Environmental and legal matters | 12 Months Ended |
Dec. 31, 2014 | |
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 investigation, remediation, and operating and maintenance costs are accrued against our earnings. Costs are accrued based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience. Where no amount within a range of estimates is more likely, we accrue the minimum. Where multiple potentially responsible parties are involved, we consider our proportionate share of the probable costs. In formulating the estimate of probable costs, we do not consider amounts expected to be recovered from insurance companies or others. We reassess these accrued amounts on a quarterly basis. The amount recorded for environmental remediation is not material and is included in Accrued expenses in Statement 3. There is no more than a remote chance that a material amount for remedial activities at any individual site, or at all the sites in the aggregate, will be required. | |
On January 8, 2015, the Company received a grand jury subpoena from the U.S. District Court for the Central District of Illinois. The subpoena requests documents and information from the Company relating to, among other things, financial information concerning U.S. and non-U.S. Caterpillar subsidiaries (including undistributed profits of non-U.S. subsidiaries and the movement of cash among U.S. and non-U.S. subsidiaries). The Company is cooperating with this investigation. The Company is unable to predict the outcome or reasonably estimate any potential loss; however, we currently believe that this matter will not have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity. | |
On September 12, 2014, the SEC notified the Company that it was conducting an informal investigation relating to Caterpillar SARL and related structures. The SEC asked the Company to preserve relevant documents and, on a voluntary basis, the Company made a presentation to the staff of the SEC on these topics. The Company is cooperating with the SEC regarding this investigation. The Company is unable to predict the outcome or reasonably estimate any potential loss; however, we currently believe that this matter will not have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity. | |
On September 10, 2014, the SEC issued to Caterpillar a subpoena seeking information concerning the Company’s accounting for the goodwill relating to its acquisition of Bucyrus International Inc. in 2011 and related matters. The Company is cooperating with the SEC regarding this subpoena and its ongoing investigation. The Company is unable to predict the outcome or reasonably estimate any potential loss; however, we currently believe that this matter will not have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity. | |
On March 20, 2014, Brazil’s Administrative Council for Economic Defense (CADE) published a Technical Opinion which named 18 companies and over 100 individuals as defendants, including two subsidiaries of Caterpillar Inc., MGE - Equipamentos e Serviços Ferroviários Ltda. (MGE) and Caterpillar Brasil Ltda. The publication of the Technical Opinion opened CADE's official administrative investigation into allegations that the defendants participated in anticompetitive bid activity for the construction and maintenance of metro and train networks in Brazil. While companies cannot be held criminally liable for anticompetitive conduct in Brazil, criminal charges have been brought against two current employees of MGE and one former employee of MGE involving the same conduct alleged by CADE. The Company has responded to all requests for information from the authorities. 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 operations, financial position or liquidity. | |
On February 19, 2014, Progress Rail Services Corporation (Progress Rail), a wholly-owned subsidiary of Caterpillar Inc., received information from the California Air Resources Board (CARB) Enforcement Division indicating it was contemplating an enforcement proceeding with potential monetary sanctions in excess of $100,000 in connection with a notice of violation received by Progress Rail on March 15, 2013 alleging violations of air emissions regulations applicable to compression ignition mobile cargo handling equipment operating at California ports or intermodal rail yards. Despite uncertainty regarding the applicability of these regulations, Progress Rail, in coordination with CARB, implemented certain corrective action measures. On November 26, 2014, Progress Rail settled this matter with CARB and paid a civil penalty of $390,733 to resolve the alleged violations. | |
On October 24, 2013, Progress Rail 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 and is currently in discussions regarding a potential resolution of the matter. Although the Company believes a loss is probable, we currently believe that this matter will not have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity. | |
In addition, we are involved in other unresolved legal actions that arise in the normal course of business. The most prevalent of these unresolved actions involve disputes related to product design, manufacture and performance liability (including claimed asbestos and welding fumes exposure), contracts, employment issues, 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. |
Segment_information
Segment information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
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, an Executive 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, and the Executive Vice President leads the Law and Public Policy Division. 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 Energy & Transportation are led by Group Presidents. One operating segment, Financial Products, is led by a Group President who also 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. One Group President leads three smaller operating segments that are included in the All Other operating segments. The Caterpillar Enterprise System Group and Law and Public Policy Division are cost centers and do not meet the definition of an operating segment. | |||||||||||||||||||||||||||||
Effective January 1, 2014, responsibility for paving products, forestry products and industrial and waste products moved from Resource Industries to the All Other operating segments. The responsibility for select work tools was moved from Resource Industries to Construction Industries, and the responsibility for administration of a wholly-owned dealer in Japan moved from Construction Industries to the All Other operating segments. Segment information for 2012 and 2013 has been retrospectively adjusted to conform to the 2014 presentation. | |||||||||||||||||||||||||||||
In addition, restructuring costs in 2013 were included in operating segments, and now these costs (including restructuring costs in 2014) are a reconciling item between Segment profit and Consolidated profit before taxes. The restructuring costs in 2012 are included in operating segments. | |||||||||||||||||||||||||||||
B. Description of segments | |||||||||||||||||||||||||||||
We have seven 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 segments: | |||||||||||||||||||||||||||||
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, telehandlers, select work tools, small, medium and large track excavators, wheel excavators, medium wheel loaders, compact track loaders, medium track-type tractors, track-type loaders, motor graders, pipelayers and mid-tier soil compactors. In addition, Construction Industries has responsibility for 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, hard rock vehicles, longwall miners, electric rope shovels, draglines, hydraulic shovels, drills, highwall miners, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, select work tools, 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. In the fourth quarter of 2013, Siwei was renamed Caterpillar (Zhengzhou) Ltd. Siwei primarily designs, manufactures, sells and supports underground coal mining equipment in China. Inter-segment sales are a source of revenue for this segment. | |||||||||||||||||||||||||||||
Energy & Transportation (formerly Power Systems): A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related parts across industries serving power generation, industrial, oil and gas and transportation applications, including marine and rail-related businesses. Responsibilities include business strategy, product design, product management, development, manufacturing, marketing, sales and product support of turbines and turbine-related services, 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 oil and gas industries; reciprocating engines supplied to the industrial industry as well as Caterpillar machinery; the business strategy, product design, product management, development, manufacturing, remanufacturing, 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 operating segments: Primarily includes activities such as: the remanufacturing of Cat® engines and components and remanufacturing services for other companies as well as the business strategy, product management, development, manufacturing, marketing and product support of undercarriage, specialty products, hardened bar stock components and ground engaging tools primarily for Cat products, paving products, forestry products and industrial and waste products; the product management, development, marketing, sales and product support of on-highway vocational trucks for North America; parts distribution; distribution services responsible for dealer development and administration including a wholly-owned dealer in Japan, 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. Results for the All Other operating segments 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, Energy & Transportation 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, Energy & Transportation operating leases is included in segment assets. The estimated financing component of the lease payments is excluded. | ||||||||||||||||||||||||||||
• | Currency exposures for Machinery, Energy & Transportation 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 is 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, Energy & Transportation segment profit is determined on a pretax basis and excludes interest expense 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 A-86 to A-91 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. | ||||||||||||||||||||||||||||
• | Restructuring costs: Primarily costs for employee separation costs and long-lived asset impairments. A table, Reconciliation of Restructuring Costs on page A-88, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 27 for more information. | ||||||||||||||||||||||||||||
• | 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. | ||||||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Construction Industries | $ | 19,362 | $ | 250 | $ | 19,612 | $ | 522 | $ | 2,207 | $ | 6,596 | $ | 369 | |||||||||||||||
Resource Industries | 8,921 | 585 | 9,506 | 691 | 501 | 9,568 | 277 | ||||||||||||||||||||||
Energy & Transportation | 21,727 | 2,248 | 23,975 | 646 | 4,038 | 8,399 | 608 | ||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 50,010 | $ | 3,083 | $ | 53,093 | $ | 1,859 | $ | 6,746 | $ | 24,563 | $ | 1,254 | |||||||||||||||
Financial Products Segment | 3,313 | — | 3,313 | 885 | 901 | 37,011 | 1,634 | ||||||||||||||||||||||
Total | $ | 53,323 | $ | 3,083 | $ | 56,406 | $ | 2,744 | $ | 7,647 | $ | 61,574 | $ | 2,888 | |||||||||||||||
2013 | |||||||||||||||||||||||||||||
Construction Industries | $ | 18,532 | $ | 330 | $ | 18,862 | $ | 493 | $ | 1,374 | $ | 7,607 | $ | 551 | |||||||||||||||
Resource Industries | 11,805 | 465 | 12,270 | 698 | 1,586 | 10,389 | 499 | ||||||||||||||||||||||
Energy & Transportation | 20,155 | 1,895 | 22,050 | 642 | 3,401 | 8,492 | 677 | ||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 50,492 | $ | 2,690 | $ | 53,182 | $ | 1,833 | $ | 6,361 | $ | 26,488 | $ | 1,727 | |||||||||||||||
Financial Products Segment | 3,224 | — | 3,224 | 789 | 990 | 36,980 | 1,806 | ||||||||||||||||||||||
Total | $ | 53,716 | $ | 2,690 | $ | 56,406 | $ | 2,622 | $ | 7,351 | $ | 63,468 | $ | 3,533 | |||||||||||||||
2012 | |||||||||||||||||||||||||||||
Construction Industries | $ | 19,451 | $ | 470 | $ | 19,921 | $ | 459 | $ | 1,846 | $ | 9,624 | $ | 984 | |||||||||||||||
Resource Industries | 19,715 | 726 | 20,441 | 649 | 4,285 | 12,466 | 1,078 | ||||||||||||||||||||||
Energy & Transportation | 21,122 | 2,407 | 23,529 | 604 | 3,422 | 9,323 | 960 | ||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 60,288 | $ | 3,603 | $ | 63,891 | $ | 1,712 | $ | 9,553 | $ | 31,413 | $ | 3,022 | |||||||||||||||
Financial Products Segment | 3,090 | — | 3,090 | 708 | 763 | 36,563 | 1,660 | ||||||||||||||||||||||
Total | $ | 63,378 | $ | 3,603 | $ | 66,981 | $ | 2,420 | $ | 10,316 | $ | 67,976 | $ | 4,682 | |||||||||||||||
Reconciliation of Sales and Revenues: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidating | Consolidated | |||||||||||||||||||||||||
Energy & | Products | Adjustments | Total | ||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 50,010 | $ | 3,313 | $ | — | $ | 53,323 | |||||||||||||||||||||
All Other operating segments | 2,251 | — | — | 2,251 | |||||||||||||||||||||||||
Other | (119 | ) | 73 | (344 | ) | 1 | (390 | ) | |||||||||||||||||||||
Total sales and revenues | $ | 52,142 | $ | 3,386 | $ | (344 | ) | $ | 55,184 | ||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 50,492 | $ | 3,224 | $ | — | $ | 53,716 | |||||||||||||||||||||
All Other operating segments | 2,263 | — | — | 2,263 | |||||||||||||||||||||||||
Other | (61 | ) | 78 | (340 | ) | 1 | (323 | ) | |||||||||||||||||||||
Total sales and revenues | $ | 52,694 | $ | 3,302 | $ | (340 | ) | $ | 55,656 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 60,288 | $ | 3,090 | $ | — | $ | 63,378 | |||||||||||||||||||||
All Other operating segments | 2,827 | — | — | 2,827 | |||||||||||||||||||||||||
Other | (47 | ) | 70 | (353 | ) | 1 | (330 | ) | |||||||||||||||||||||
Total sales and revenues | $ | 63,068 | $ | 3,160 | $ | (353 | ) | $ | 65,875 | ||||||||||||||||||||
1 | Elimination of Financial Products revenues from Machinery, Energy & Transportation. | ||||||||||||||||||||||||||||
Reconciliation of consolidated profit before taxes: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidated | ||||||||||||||||||||||||||
Energy & | Products | Total | |||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 6,746 | $ | 901 | $ | 7,647 | |||||||||||||||||||||||
All Other operating segments | 850 | — | 850 | ||||||||||||||||||||||||||
Cost centers | 38 | — | 38 | ||||||||||||||||||||||||||
Corporate costs | (1,584 | ) | — | (1,584 | ) | ||||||||||||||||||||||||
Timing | (244 | ) | — | (244 | ) | ||||||||||||||||||||||||
Restructuring costs | (441 | ) | — | (441 | ) | ||||||||||||||||||||||||
Methodology differences: | |||||||||||||||||||||||||||||
Inventory/cost of sales | 55 | — | 55 | ||||||||||||||||||||||||||
Postretirement benefit expense | (411 | ) | — | (411 | ) | ||||||||||||||||||||||||
Financing costs | (502 | ) | — | (502 | ) | ||||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (8 | ) | — | (8 | ) | ||||||||||||||||||||||||
Currency | (52 | ) | — | (52 | ) | ||||||||||||||||||||||||
Other income/expense methodology differences | (249 | ) | — | (249 | ) | ||||||||||||||||||||||||
Other methodology differences | (24 | ) | 8 | (16 | ) | ||||||||||||||||||||||||
Total consolidated profit before taxes | $ | 4,174 | $ | 909 | $ | 5,083 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 6,361 | $ | 990 | $ | 7,351 | |||||||||||||||||||||||
All Other operating segments | 736 | — | 736 | ||||||||||||||||||||||||||
Cost centers | 119 | — | 119 | ||||||||||||||||||||||||||
Corporate costs | (1,368 | ) | — | (1,368 | ) | ||||||||||||||||||||||||
Timing | 116 | — | 116 | ||||||||||||||||||||||||||
Restructuring costs | (200 | ) | — | (200 | ) | ||||||||||||||||||||||||
Methodology differences: | |||||||||||||||||||||||||||||
Inventory/cost of sales | (112 | ) | — | (112 | ) | ||||||||||||||||||||||||
Postretirement benefit expense | (685 | ) | — | (685 | ) | ||||||||||||||||||||||||
Financing costs | (469 | ) | — | (469 | ) | ||||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | 6 | — | 6 | ||||||||||||||||||||||||||
Currency | (110 | ) | — | (110 | ) | ||||||||||||||||||||||||
Other income/expense methodology differences | (238 | ) | — | (238 | ) | ||||||||||||||||||||||||
Other methodology differences | (48 | ) | 30 | (18 | ) | ||||||||||||||||||||||||
Total consolidated profit before taxes | $ | 4,108 | $ | 1,020 | $ | 5,128 | |||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 9,553 | $ | 763 | $ | 10,316 | |||||||||||||||||||||||
All Other operating segments | 994 | — | 994 | ||||||||||||||||||||||||||
Cost centers | 11 | — | 11 | ||||||||||||||||||||||||||
Corporate costs | (1,502 | ) | — | (1,502 | ) | ||||||||||||||||||||||||
Timing | (298 | ) | — | (298 | ) | ||||||||||||||||||||||||
Methodology differences: | |||||||||||||||||||||||||||||
Inventory/cost of sales | 43 | — | 43 | ||||||||||||||||||||||||||
Postretirement benefit expense | (696 | ) | — | (696 | ) | ||||||||||||||||||||||||
Financing costs | (474 | ) | — | (474 | ) | ||||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (14 | ) | — | (14 | ) | ||||||||||||||||||||||||
Currency | 108 | — | 108 | ||||||||||||||||||||||||||
Other income/expense methodology differences | (249 | ) | — | (249 | ) | ||||||||||||||||||||||||
Other methodology differences | (20 | ) | 17 | (3 | ) | ||||||||||||||||||||||||
Total consolidated profit before taxes | $ | 7,456 | $ | 780 | $ | 8,236 | |||||||||||||||||||||||
Reconciliation of Restructuring costs: | |||||||||||||||||||||||||||||
As noted above, restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. Had we included the amounts in the segments' results, the profit would have been as shown below: | |||||||||||||||||||||||||||||
Reconciliation of Restructuring costs: | |||||||||||||||||||||||||||||
(Millions of dollars) | Segment | Restructuring costs | Segment profit with | ||||||||||||||||||||||||||
profit | restructuring costs | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Construction Industries | $ | 2,207 | $ | (293 | ) | $ | 1,914 | ||||||||||||||||||||||
Resource Industries | 501 | (72 | ) | 429 | |||||||||||||||||||||||||
Energy & Transportation | 4,038 | (31 | ) | 4,007 | |||||||||||||||||||||||||
Financial Products Segment | 901 | — | 901 | ||||||||||||||||||||||||||
All Other operating segments | 850 | (36 | ) | 814 | |||||||||||||||||||||||||
Total | $ | 8,497 | $ | (432 | ) | $ | 8,065 | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Construction Industries | $ | 1,374 | $ | (33 | ) | $ | 1,341 | ||||||||||||||||||||||
Resource Industries | 1,586 | (105 | ) | 1,481 | |||||||||||||||||||||||||
Energy & Transportation | 3,401 | (32 | ) | 3,369 | |||||||||||||||||||||||||
Financial Products Segment | 990 | — | 990 | ||||||||||||||||||||||||||
All Other operating segments | 736 | (27 | ) | 709 | |||||||||||||||||||||||||
Total | $ | 8,087 | $ | (197 | ) | $ | 7,890 | ||||||||||||||||||||||
Reconciliation of Assets: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidating | Consolidated | |||||||||||||||||||||||||
Energy & | Products | Adjustments | Total | ||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 24,563 | $ | 37,011 | $ | — | $ | 61,574 | |||||||||||||||||||||
All Other operating segments | 2,810 | — | — | 2,810 | |||||||||||||||||||||||||
Items not included in segment assets: | |||||||||||||||||||||||||||||
Cash and short-term investments | 6,317 | — | — | 6,317 | |||||||||||||||||||||||||
Intercompany receivables | 1,185 | — | (1,185 | ) | — | ||||||||||||||||||||||||
Investment in Financial Products | 4,488 | — | (4,488 | ) | — | ||||||||||||||||||||||||
Deferred income taxes | 3,627 | — | (674 | ) | 2,953 | ||||||||||||||||||||||||
Goodwill and intangible assets | 3,492 | — | — | 3,492 | |||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 1,174 | — | — | 1,174 | |||||||||||||||||||||||||
Operating lease methodology difference | (213 | ) | — | — | (213 | ) | |||||||||||||||||||||||
Liabilities included in segment assets | 9,837 | — | — | 9,837 | |||||||||||||||||||||||||
Inventory methodology differences | (2,697 | ) | — | — | (2,697 | ) | |||||||||||||||||||||||
Other | (395 | ) | (102 | ) | (69 | ) | (566 | ) | |||||||||||||||||||||
Total assets | $ | 54,188 | $ | 36,909 | $ | (6,416 | ) | $ | 84,681 | ||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 26,488 | $ | 36,980 | $ | — | $ | 63,468 | |||||||||||||||||||||
All Other operating segments | 2,973 | — | — | 2,973 | |||||||||||||||||||||||||
Items not included in segment assets: | |||||||||||||||||||||||||||||
Cash and short-term investments | 4,597 | — | — | 4,597 | |||||||||||||||||||||||||
Intercompany receivables | 1,219 | — | (1,219 | ) | — | ||||||||||||||||||||||||
Investment in Financial Products | 4,798 | — | (4,798 | ) | — | ||||||||||||||||||||||||
Deferred income taxes | 2,541 | — | (525 | ) | 2,016 | ||||||||||||||||||||||||
Goodwill and intangible assets | 3,582 | — | — | 3,582 | |||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 1,175 | — | — | 1,175 | |||||||||||||||||||||||||
Operating lease methodology difference | (273 | ) | — | — | (273 | ) | |||||||||||||||||||||||
Liabilities included in segment assets | 10,357 | — | — | 10,357 | |||||||||||||||||||||||||
Inventory methodology differences | (2,539 | ) | — | — | (2,539 | ) | |||||||||||||||||||||||
Other | (214 | ) | (135 | ) | (111 | ) | (460 | ) | |||||||||||||||||||||
Total assets | $ | 54,704 | $ | 36,845 | $ | (6,653 | ) | $ | 84,896 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 31,413 | $ | 36,563 | $ | — | $ | 67,976 | |||||||||||||||||||||
All Other operating segments | 3,179 | — | — | 3,179 | |||||||||||||||||||||||||
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 | 723 | — | — | 723 | |||||||||||||||||||||||||
Operating lease methodology difference | (305 | ) | — | — | (305 | ) | |||||||||||||||||||||||
Liabilities included in segment assets | 10,900 | — | — | 10,900 | |||||||||||||||||||||||||
Inventory methodology differences | (2,949 | ) | — | — | (2,949 | ) | |||||||||||||||||||||||
Other | (176 | ) | (107 | ) | (132 | ) | (415 | ) | |||||||||||||||||||||
Total assets | $ | 57,898 | $ | 36,456 | $ | (5,384 | ) | $ | 88,970 | ||||||||||||||||||||
Reconciliation of Depreciation and amortization: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidated | ||||||||||||||||||||||||||
Energy & | Products | Total | |||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,859 | $ | 885 | $ | 2,744 | |||||||||||||||||||||||
Items not included in segment depreciation and amortization: | |||||||||||||||||||||||||||||
All Other operating segments | 279 | — | 279 | ||||||||||||||||||||||||||
Cost centers | 150 | — | 150 | ||||||||||||||||||||||||||
Other | (35 | ) | 25 | (10 | ) | ||||||||||||||||||||||||
Total depreciation and amortization | $ | 2,253 | $ | 910 | $ | 3,163 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,833 | $ | 789 | $ | 2,622 | |||||||||||||||||||||||
Items not included in segment depreciation and amortization: | |||||||||||||||||||||||||||||
All Other operating segments | 305 | — | 305 | ||||||||||||||||||||||||||
Cost centers | 151 | — | 151 | ||||||||||||||||||||||||||
Other | (16 | ) | 25 | 9 | |||||||||||||||||||||||||
Total depreciation and amortization | $ | 2,273 | $ | 814 | $ | 3,087 | |||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,712 | $ | 708 | $ | 2,420 | |||||||||||||||||||||||
Items not included in segment depreciation and amortization: | |||||||||||||||||||||||||||||
All Other operating segments | 313 | — | 313 | ||||||||||||||||||||||||||
Cost centers | 96 | — | 96 | ||||||||||||||||||||||||||
Other | (39 | ) | 23 | (16 | ) | ||||||||||||||||||||||||
Total depreciation and amortization | $ | 2,082 | $ | 731 | $ | 2,813 | |||||||||||||||||||||||
Reconciliation of Capital expenditures: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidating | Consolidated | |||||||||||||||||||||||||
Energy & | Products | Adjustments | Total | ||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,254 | $ | 1,634 | $ | — | $ | 2,888 | |||||||||||||||||||||
Items not included in segment capital expenditures: | |||||||||||||||||||||||||||||
All Other operating segments | 331 | — | — | 331 | |||||||||||||||||||||||||
Cost centers | 181 | — | — | 181 | |||||||||||||||||||||||||
Timing | 21 | — | — | 21 | |||||||||||||||||||||||||
Other | (146 | ) | 183 | (79 | ) | (42 | ) | ||||||||||||||||||||||
Total capital expenditures | $ | 1,641 | $ | 1,817 | $ | (79 | ) | $ | 3,379 | ||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,727 | $ | 1,806 | $ | — | $ | 3,533 | |||||||||||||||||||||
Items not included in segment capital expenditures: | |||||||||||||||||||||||||||||
All Other operating segments | 452 | — | — | 452 | |||||||||||||||||||||||||
Cost centers | 191 | — | — | 191 | |||||||||||||||||||||||||
Timing | 363 | — | — | 363 | |||||||||||||||||||||||||
Other | (128 | ) | 105 | (70 | ) | (93 | ) | ||||||||||||||||||||||
Total capital expenditures | $ | 2,605 | $ | 1,911 | $ | (70 | ) | $ | 4,446 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 3,022 | $ | 1,660 | $ | — | $ | 4,682 | |||||||||||||||||||||
Items not included in segment capital expenditures: | |||||||||||||||||||||||||||||
All Other operating segments | 459 | — | — | 459 | |||||||||||||||||||||||||
Cost centers | 201 | — | — | 201 | |||||||||||||||||||||||||
Timing | (71 | ) | — | — | (71 | ) | |||||||||||||||||||||||
Other | (176 | ) | 136 | (155 | ) | (195 | ) | ||||||||||||||||||||||
Total capital expenditures | $ | 3,435 | $ | 1,796 | $ | (155 | ) | $ | 5,076 | ||||||||||||||||||||
Enterprise-wide Disclosures: | |||||||||||||||||||||||||||||
Information about Geographic Areas: | |||||||||||||||||||||||||||||
Property, plant and equipment - net | |||||||||||||||||||||||||||||
External sales and revenues 1 | December 31, | ||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Inside United States | $ | 21,122 | $ | 18,579 | $ | 20,239 | $ | 8,714 | $ | 8,723 | $ | 8,559 | |||||||||||||||||
Outside United States | 34,062 | 37,077 | 45,636 | 2 | 7,863 | 8,352 | 7,902 | ||||||||||||||||||||||
Total | $ | 55,184 | $ | 55,656 | $ | 65,875 | $ | 16,577 | $ | 17,075 | $ | 16,461 | |||||||||||||||||
1 | Sales of Machinery, Energy & Transportation are based on dealer or customer location. Revenues from services provided are based on where service is rendered. | ||||||||||||||||||||||||||||
2 | The only country with greater than 10 percent of external sales and revenues for any of the periods presented, other than the United States, is Australia with $6,822 million as of December 31, 2012. | ||||||||||||||||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2014 | |
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 $169 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 Statement 1. | |
The transaction was financed with available cash. Tangible assets as of the acquisition date were $82 million, recorded at their fair values, and primarily included cash of $9 million, receivables of $13 million, inventories of $32 million and property, plant and equipment of $28 million. Finite-lived intangible assets acquired of $70 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 11 years. Liabilities assumed as of the acquisition date were $87 million, recorded at their fair values, and primarily included accounts payable of $19 million, customer advances of $31 million and net deferred tax liabilities of $15 million. Goodwill of $113 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. 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 Energy & Transportation segment in Note 23. 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. | |
Black Horse Joint Venture | |
In December 2012, Caterpillar and Ariel Corporation (Ariel) contributed $70 million each to obtain a 50 percent equity interest in a newly formed company, Black Horse LLC (Black Horse). Immediately upon formation, Black Horse acquired ProSource, a pump manufacturer headquartered in Houston, Texas. The acquisition of ProSource, which designs and manufactures reciprocating pressure pumps, enables Black Horse to serve the well service market. Black Horse will leverage Caterpillar and Ariel engineering and manufacturing expertise to expand ProSource's existing product line to better serve global oil and gas customers. Frac pumps sold through the combined venture are branded and sold under the Caterpillar name and are distributed through the Caterpillar dealer network. Our investment in Black Horse, accounted for by the equity method, is included in Investments in unconsolidated affiliated companies in Statement 3. | |
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. In the fourth quarter of 2013, Siwei was renamed Caterpillar (Zhengzhou) 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 23. 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 was 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 Statement 1 and is included in the Resource Industries segment. | |
Caterpillar Tohoku Ltd. | |
In March 2012, we acquired 100 percent of the stock of Caterpillar Tohoku Ltd. (Cat Tohoku). Cat Tohoku was an independently owned and operated dealership providing sales, rental, service and after market support for Caterpillar machines and engines in the northeastern part of Japan. The purchase price, net of $18 million of acquired cash, was approximately $206 million. The purchase price included the assumption of $77 million in third-party debt, as well as $64 million net trade payables due to Caterpillar. We paid approximately $59 million at closing, $22 million in July 2012, and $3 million in March 2013. The acquisition of Cat Tohoku supports Caterpillar's efforts to restructure its distribution network in Japan. | |
The transaction was financed with available cash. Tangible assets as of the acquisition date were $252 million and primarily included cash of $18 million, receivables of $34 million, inventory of $26 million, and property, plant and equipment of $157 million. Finite-lived intangible assets acquired were $8 million. Liabilities assumed as of the acquisition date were $135 million, recorded at their fair values, and primarily included debt of $77 million and accounts payable of $39 million. Goodwill of $22 million, which is deductible for income tax purposes, represents the excess of cost over the fair value of net tangible assets acquired. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the All Other operating segments in Note 23. 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. |
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interest - Caterpillar Japan Ltd. | 12 Months Ended |
Dec. 31, 2014 | |
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. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2014 | |
Divestitures | |
Divestitures | Divestitures |
Bucyrus Distribution Business Divestitures | |
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 occurred in phases based on the mining business opportunity within each dealer territory and were substantially complete by the end of 2014. | |
The portions of the Bucyrus distribution business that were sold did 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, has been reported in the Resource Industries segment. Goodwill was 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 was included in the disposal groups. The disposal groups were recorded at the lower of their carrying value or fair value less cost to sell. In 2014, 2013 and 2012, we recorded asset impairment charges of $4 million, $11 million and $27 million respectively, related to disposal groups being sold to Caterpillar dealers. Fair value was determined based upon the negotiated sales price. The impairments were recorded in Other operating (income) expenses and included in the Resource Industries segment. The portions of the distribution business that were sold were not material to our results of operations, financial position or cash flow. | |
In 2014, we completed 32 sale transactions whereby we sold portions of the Bucyrus distribution business to Caterpillar dealers for an aggregate price of $199 million. For the full year 2014, after-tax profit was unfavorably impacted by $22 million as a result of the Bucyrus distribution divestiture activities. This is comprised of $21 million of income related to sales transactions, a net unfavorable adjustment of $14 million related to prior sale transactions (both included in Other operating (income) expenses), costs incurred related to the Bucyrus distribution divestiture activities of $25 million (included in Selling, general and administrative expenses) and income tax of $4 million. | |
Assets sold in 2014 included customer relationship intangibles of $82 million, other assets of $24 million, which consisted primarily of inventory and fixed assets, and allocated goodwill of $63 million related to the divested portions of the Bucyrus distribution business. | |
As part of the 2014 divestitures, Cat Financial provided $20 million of financing to two of the Caterpillar dealers. | |
In 2013, we completed 19 sale transactions whereby we sold portions of the Bucyrus distribution business to Caterpillar dealers for an aggregate price of $467 million. For the full year 2013, after-tax profit was unfavorably impacted by $39 million as a result of the Bucyrus distribution divestiture activities. This is comprised of $95 million of income related to 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), costs incurred related to the Bucyrus distribution divestiture activities of $104 million (included in Selling, general and administrative expenses) and an income tax benefit of $4 million. | |
Assets sold in 2013 included customer relationship intangibles of $127 million, other assets of $65 million, which consisted primarily of inventory and fixed assets, and allocated goodwill of $56 million related to the divested portions of the Bucyrus distribution business. | |
As part of the 2013 divestitures, Cat Financial provided $132 million of financing to five of the Caterpillar dealers. | |
In 2012, we completed 12 sale transactions whereby we sold portions of the Bucyrus distribution business to Caterpillar dealers for an aggregate price of $1,436 million. For the full year 2012, after-tax profit was unfavorably impacted by $28 million as a result of the Bucyrus distribution divestiture activities. This is comprised of $310 million of income (included in Other operating (income) expenses) related to sales transactions, offset by costs incurred related to the Bucyrus distribution divestiture activities of $177 million (included in Selling, general and administrative expenses) and income tax of $161 million. | |
Assets sold in 2012 included customer relationship intangibles of $256 million, other assets of $254 million, which consisted primarily of inventory and fixed assets, and allocated goodwill of $405 million related to the divested portions of the Bucyrus distribution business. | |
As part of the 2012 divestitures, Cat Financial provided $739 million of financing to five of the Caterpillar dealers. | |
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 $278 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 Statement 3. 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 segments. Results for our remaining interest will be recorded in Equity in profit (loss) of unconsolidated affiliated companies and are reported in the All Other operating segments. | |
The controlling financial interest in Caterpillar Logistics Services LLC was not material to our results of operations, financial position or cash flow. |
Restructuring_Costs
Restructuring Costs | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Restructuring Charges [Abstract] | ||||
Restructuring Costs | Restructuring costs | |||
Restructuring costs for 2014, 2013, and 2012 were $441 million, $200 million and $94 million, respectively, and were recognized in Other operating (income) expenses in Statement 1. The 2014 restructuring costs included $382 million of employee separation costs, $33 million of long-lived asset impairments and $26 million of other restructuring costs. The 2013 restructuring costs included $151 million of employee separation costs, $41 million of long-lived asset impairments and $8 million of other restructuring costs. The 2012 costs were for employee separations. | ||||
The restructuring costs in 2014 were primarily related to a reduction in workforce at our Gosselies, Belgium, facility. The most significant charges in 2013 were for the restructuring of management and support functions and the closure or downsizing of several facilities related to our mining business. The separation charges in 2012 were primarily in the Energy & Transportation segment and were related to the closure of the Electro-Motive Diesel facility located in London, Ontario and separation programs in Europe. | ||||
Restructuring costs for 2014 and 2013 are a reconciling item between Segment profit and Consolidated profit before taxes. See Note 23 for more information. | ||||
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, 2013 and 2014 employee 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) | 151 | |||
Reduction in liability (payments and other adjustments) | (91 | ) | ||
Liability balance at December 31, 2013 | $ | 89 | ||
Increase in liability (separation charges) | 382 | |||
Reduction in liability (payments and other adjustments) | (289 | ) | ||
Liability balance at December 31, 2014 | $ | 182 | ||
The remaining liability balance as of December 31, 2014 represents costs for employees who have not yet separated from the Company or whose full severance has not yet been paid. The majority of these remaining costs are expected to be paid in 2015. | ||||
In December 2013, we announced a restructuring plan for our Gosselies, Belgium, facility. This restructuring plan was designed to improve the competitiveness of our European manufacturing footprint and achieve competitiveness in our European operations by refocusing our current Gosselies operations on final machine assembly, test and paint with limited component and fabrication operations. This action includes reshaping our supply base for more efficient sourcing, improving factory efficiencies and workforce reductions and was approved by the Belgian Minister of Employment in February 2014. We estimate the total employee cash separation costs to be about $300 million before tax, which represents substantially all of the restructuring costs to be incurred under the restructuring plan. In 2014, we recognized $273 million of these separation-related charges. The remaining costs are expected to be recognized in 2015. |
Selected_quarterly_financial_r
Selected quarterly financial results (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected quarterly financial results (unaudited) | Selected quarterly financial results (unaudited) | ||||||||||||||||
2014 Quarter | |||||||||||||||||
(Dollars in millions except per share data) | 1st | 2nd | 3rd | 4th | |||||||||||||
Sales and revenues | $ | 13,241 | $ | 14,150 | $ | 13,549 | $ | 14,244 | |||||||||
Less: Revenues | (748 | ) | (759 | ) | (791 | ) | (744 | ) | |||||||||
Sales | 12,493 | 13,391 | 12,758 | 13,500 | |||||||||||||
Cost of goods sold | 9,437 | 10,197 | 9,634 | 10,499 | |||||||||||||
Gross margin | 3,056 | 3,194 | 3,124 | 3,001 | |||||||||||||
Profit 1 | $ | 922 | $ | 999 | $ | 1,017 | $ | 757 | |||||||||
Profit per common share | $ | 1.47 | $ | 1.6 | $ | 1.66 | $ | 1.25 | |||||||||
Profit per common share–diluted 2 | $ | 1.44 | $ | 1.57 | $ | 1.63 | $ | 1.23 | |||||||||
2013 Quarter | |||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Sales and revenues | $ | 13,210 | $ | 14,621 | $ | 13,423 | $ | 14,402 | |||||||||
Less: Revenues | (726 | ) | (735 | ) | (745 | ) | (756 | ) | |||||||||
Sales | 12,484 | 13,886 | 12,678 | 13,646 | |||||||||||||
Cost of goods sold | 9,639 | 10,773 | 9,774 | 10,541 | |||||||||||||
Gross margin | 2,845 | 3,113 | 2,904 | 3,105 | |||||||||||||
Profit 1 | $ | 880 | $ | 960 | $ | 946 | $ | 1,003 | |||||||||
Profit per common share | $ | 1.34 | $ | 1.48 | $ | 1.48 | $ | 1.57 | |||||||||
Profit per common share–diluted 2 | $ | 1.31 | $ | 1.45 | $ | 1.45 | $ | 1.54 | |||||||||
1 | Profit attributable to common stockholders. | ||||||||||||||||
2 | Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. | ||||||||||||||||
As previously disclosed, in connection with the preparation of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, we concluded that certain non-cash transactions should be excluded from both changes in Receivables-trade and other and Accounts payable when preparing our Consolidated Statement of Cash Flow. Accordingly, we prepared our Consolidated Statement of Cash Flow for the six and nine months ended June 30, 2014 and September 30, 2014 on that basis, and we revised our Consolidated Statement of Cash Flow for the comparative periods in 2013. We subsequently concluded that our prior policy of including those transactions in the changes in Receivables-trade and other and Accounts payable is acceptable. Accordingly, we prepared our Consolidated Statement of Cash Flow for the year ended December 31, 2014 using our prior policy. We will revise our Consolidated Statement of Cash Flow to increase Receivables-trade and other and decrease Accounts payable for $113 million and $149 million for the six and nine months ended June 30, 2014 and September 30, 2014, respectively, the next time they are filed. The revisions will not impact net cash provided by operating activities. | |||||||||||||||||
Operations_and_summary_of_sign1
Operations and summary of significant accounting policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Basis of Presentation, Policy | |||||||||||||
B. | Basis of presentation | ||||||||||||
The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. | |||||||||||||
Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. See Note 9 for further discussion. | |||||||||||||
We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance, and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. | |||||||||||||
We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the entity's economic performance. Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Receivables - trade and other | $ | 36 | $ | 21 | $ | 23 | |||||||
Receivables - finance | 216 | 185 | 122 | ||||||||||
Long-term receivables - finance | 285 | 334 | 353 | ||||||||||
Investments in unconsolidated affiliated companies | 83 | 89 | 93 | ||||||||||
Guarantees | 129 | 151 | 176 | ||||||||||
Total | $ | 749 | $ | 780 | $ | 767 | |||||||
Shipping and handling costs are included in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation of equipment leased to others, Insurance Services’ underwriting expenses, gains (losses) on disposal of long-lived assets and business divestitures, long-lived asset impairment charges, legal settlements, employee separation charges and benefit plan curtailment, settlement and contractual termination benefits. | |||||||||||||
Prepaid expenses and other current assets in Statement 3 include prepaid rent, prepaid insurance, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments, and other prepaid items. | |||||||||||||
Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation. | |||||||||||||
Sales and Revenue Recognition, Policy | |||||||||||||
C. | Sales and revenue recognition | ||||||||||||
Sales of Machinery, Energy & Transportation are recognized and earned when all the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) price is fixed and determinable; (c) collectibility is reasonably assured; and (d) delivery has occurred. Persuasive evidence of an arrangement and a fixed or determinable price exist once we receive an order or contract from a customer or independently owned and operated dealer. We assess collectibility at the time of the sale and if collectibility is not reasonably assured, the sale is deferred and not recognized until collectibility is probable or payment is received. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when the product is shipped. Products that are exported from a country for sale typically pass title and risk of ownership at the border of the destination country. | |||||||||||||
Sales of certain turbine machinery units, draglines, large shovels and long wall roof supports are recognized under accounting for construction-type contracts, primarily using the percentage-of-completion method. Revenue is recognized based upon progress towards completion, which is estimated and continually updated over the course of construction. We provide for any loss that we expect to incur on these contracts when that loss is probable. | |||||||||||||
Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, used engines and related components (core) are inspected, cleaned and remanufactured. In connection with the sale of most of our remanufactured product, we collect a deposit from the dealer that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and customers. Revenue is recognized pursuant to the same criteria as Machinery, Energy & Transportation sales noted above (title to the entire remanufactured product passes to the dealer upon sale). At the time of sale, the deposit is recognized in Other current liabilities in Statement 3. In addition, the core to be returned is recognized as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with useable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. The returned core is then included in inventory. In the event that the deposit is forfeited (i.e. upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. | |||||||||||||
No right of return exists on sales of equipment. Replacement part returns are estimable and accrued at the time a sale is recognized. | |||||||||||||
We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. The cost of these discounts is estimated based on historical experience and known changes in merchandising programs and is reported as a reduction to sales when the product sale is recognized. | |||||||||||||
Our standard dealer invoice terms are established by marketing region. Our invoice terms for end-user customer sales are established by the responsible business unit. When a sale is made to a dealer, the dealer is responsible for payment even if the product is not sold to an end customer. Dealers and customers must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In 2014 and 2013, terms were extended to not more than one year for $624 million and $706 million of receivables, respectively, which represent approximately 1 percent of consolidated sales. In 2012, terms were extended to not more than one year for $354 million of receivables, which represent less than 1 percent of consolidated sales. | |||||||||||||
We establish a bad debt allowance for Machinery, Energy & Transportation receivables when it becomes probable that the receivable will not be collected. Our allowance for bad debts is not significant. | |||||||||||||
Revenues of Financial Products primarily represent the following Cat Financial revenues: | |||||||||||||
• | Retail finance revenue on finance leases and installment sale contracts is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance. Revenue on retail notes is recognized based on the daily balance of retail receivables outstanding and the applicable effective interest rate. | ||||||||||||
• | Operating lease revenue is recorded on a straight-line basis in the period earned over the life of the contract. | ||||||||||||
• | Cat Financial provides wholesale inventory financing to dealers. Wholesale finance revenue on finance leases and installment sale contracts related to financing dealer inventory and rental fleets is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance. Revenue on wholesale notes is recognized based on the daily balance of wholesale receivables outstanding and the applicable effective interest rate. | ||||||||||||
• | Loan origination and commitment fees are deferred and amortized to revenue using the interest method over the life of the finance receivables. | ||||||||||||
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 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. See Note 6 for more information. | |||||||||||||
Sales and revenues are presented net of sales and other related taxes. | |||||||||||||
Inventories, Policy | |||||||||||||
D. | Inventories | ||||||||||||
Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2014, 2013 and 2012. | |||||||||||||
If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,430 million, $2,504 million and $2,750 million higher than reported at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Depreciation and Amortization, Policy | |||||||||||||
E. | Depreciation and amortization | ||||||||||||
Depreciation of plant and equipment is computed principally using accelerated methods. Depreciation on equipment leased to others, primarily for Financial Products, is computed using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2014, 2013 and 2012, Cat Financial depreciation on equipment leased to others was $872 million, $768 million and $688 million, respectively, and was included in Other operating (income) expenses in Statement 1. In 2014, 2013 and 2012, consolidated depreciation expense was $2,795 million, $2,710 million and $2,421 million, respectively. Amortization of purchased finite-lived intangibles is computed principally using the straight-line method, generally not to exceed a period of 20 years. | |||||||||||||
Foreign Currency Translation, Policy | |||||||||||||
F. | Foreign currency translation | ||||||||||||
The functional currency for most of our Machinery, Energy & Transportation consolidated companies is the U.S. dollar. The functional currency for most of our Financial Products and affiliates accounted for under the equity method is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in Statement 1. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income (loss) in Statement 3. | |||||||||||||
Derivative Financial Instruments, Policy | |||||||||||||
G. | Derivative financial instruments | ||||||||||||
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. All derivatives are recorded at fair value. See Note 3 for more information. | |||||||||||||
Income Taxes, Policy | |||||||||||||
H. | Income taxes | ||||||||||||
The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. | |||||||||||||
Goodwill, Policy | |||||||||||||
I. | Goodwill | ||||||||||||
For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate the fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, goodwill is reassigned to the affected reporting units based on their relative fair values. | |||||||||||||
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. See Note 10 for further details. | |||||||||||||
Estimates in Financial Statements, Policy | |||||||||||||
J. | Estimates in financial statements | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets, fair values for goodwill impairment tests, impairment of available-for-sale securities, warranty liability, stock-based compensation and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes. |
Derivative_financial_instrumen1
Derivative financial instruments and risk management (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Risk Management, Policy | ||
A. | 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, Energy & Transportation 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, Energy & Transportation foreign currency contracts are undesignated, including any hedges designed to protect our competitive exposure. | ||
As of December 31, 2014, $68 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), are expected to be reclassified to current earnings (Other income (expense) in Statement 1) 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. | ||
B. | 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. | ||
Our Machinery, Energy & Transportation 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. We designate fixed-to-floating interest rate swaps as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract. | ||
As of December 31, 2014, $4 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in Statement 1) over the next twelve months. | ||
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 December 31, 2014, $1 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in Statement 1) 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, Energy & Transportation 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. | ||
C. | 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, Energy & Transportation 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. |
Operations_and_summary_of_sign2
Operations and summary of significant accounting policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||||||
Schedule of Maximum Exposure to Loss from Variable Interest Entities | Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: | ||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Receivables - trade and other | $ | 36 | $ | 21 | $ | 23 | |||||||
Receivables - finance | 216 | 185 | 122 | ||||||||||
Long-term receivables - finance | 285 | 334 | 353 | ||||||||||
Investments in unconsolidated affiliated companies | 83 | 89 | 93 | ||||||||||
Guarantees | 129 | 151 | 176 | ||||||||||
Total | $ | 749 | $ | 780 | $ | 767 | |||||||
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
Grant Year | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Weighted-average dividend yield | 2.2 | % | 2.1 | % | 2.2 | % | |||||||||||||||||||||
Weighted-average volatility | 28.2 | % | 30.6 | % | 35 | % | |||||||||||||||||||||
Range of volatilities | 18.4-36.2% | 23.4-40.6% | 33.3-40.4% | ||||||||||||||||||||||||
Range of risk-free interest rates | 0.12-2.60% | 0.16-1.88% | 0.17-2.00% | ||||||||||||||||||||||||
Weighted-average expected lives | 8 years | 8 years | 7 years | ||||||||||||||||||||||||
Schedule of stock-based compensation activity | Please refer to Tables I and II below for additional information on our stock-based awards. | ||||||||||||||||||||||||||
TABLE I — Financial Information Related to Stock-based Compensation | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Stock options/SARs activity: | |||||||||||||||||||||||||||
Outstanding at beginning of year | 43,375,747 | $ | 65.03 | 45,827,599 | $ | 59.45 | 50,372,991 | $ | 53.01 | ||||||||||||||||||
Granted to officers and key employees 1 | 4,448,218 | $ | 96.31 | 4,276,060 | $ | 89.75 | 3,318,188 | $ | 110.09 | ||||||||||||||||||
Exercised | (13,026,311 | ) | $ | 50.27 | (6,476,082 | ) | $ | 41.1 | (7,708,343 | ) | $ | 38.73 | |||||||||||||||
Forfeited / expired | (216,571 | ) | $ | 85.93 | (251,830 | ) | $ | 84.64 | (155,237 | ) | $ | 67.5 | |||||||||||||||
Outstanding at end of year | 34,581,083 | $ | 74.48 | 43,375,747 | $ | 65.03 | 45,827,599 | $ | 59.45 | ||||||||||||||||||
Exercisable at year-end | 23,991,377 | $ | 64.46 | 34,200,054 | $ | 55.93 | 33,962,000 | $ | 51.75 | ||||||||||||||||||
RSUs activity: | |||||||||||||||||||||||||||
Outstanding at beginning of year | 3,823,328 | 3,580,220 | 4,281,490 | ||||||||||||||||||||||||
Granted to officers and key employees | 1,429,512 | 1,614,870 | 1,429,939 | ||||||||||||||||||||||||
Vested | (1,081,304 | ) | (1,286,934 | ) | (2,077,485 | ) | |||||||||||||||||||||
Forfeited | (87,400 | ) | (84,828 | ) | (53,724 | ) | |||||||||||||||||||||
Outstanding at end of year | 4,084,136 | 3,823,328 | 3,580,220 | ||||||||||||||||||||||||
Stock options/SARs outstanding and exercisable: | |||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||
Exercise Prices | Shares Outstanding at 12/31/14 | Weighted- | Weighted- | Aggregate | Shares Outstanding at 12/31/14 | Weighted- | Weighted- | Aggregate | |||||||||||||||||||
Average | Average | Intrinsic Value 2 | Average | Average | Intrinsic Value 2 | ||||||||||||||||||||||
Remaining | Exercise Price | Remaining | Exercise Price | ||||||||||||||||||||||||
Contractual Life (Years) | Contractual Life (Years) | ||||||||||||||||||||||||||
$22.17 - 45.64 | 4,740,246 | 3.01 | $ | 28.93 | $ | 301 | 4,740,246 | 3.01 | $ | 28.93 | $ | 301 | |||||||||||||||
$57.85 - 63.04 | 7,634,038 | 4.31 | $ | 59.33 | 253 | 7,634,038 | 4.31 | $ | 59.33 | 253 | |||||||||||||||||
$66.77 - 73.20 | 7,744,932 | 2.02 | $ | 72.51 | 155 | 7,744,932 | 2.02 | $ | 72.51 | 155 | |||||||||||||||||
$86.77 - 89.75 | 4,195,185 | 8.06 | $ | 89.68 | 12 | 420,340 | 8.15 | $ | 89.75 | 1 | |||||||||||||||||
$96.31 - 110.09 | 10,266,682 | 7.76 | $ | 102.04 | — | 3,451,821 | 6.4 | $ | 103.43 | — | |||||||||||||||||
34,581,083 | $ | 74.48 | $ | 721 | 23,991,377 | $ | 64.46 | $ | 710 | ||||||||||||||||||
1 | No SARs were granted during the years ended December 31, 2014, 2013 or 2012. | ||||||||||||||||||||||||||
2 | The difference between a stock award’s exercise price and the underlying stock’s market price at December 31, 2014, for awards with market price greater than the exercise price. Amounts are in millions of dollars. | ||||||||||||||||||||||||||
Schedule of financial information related to stock-based compensation | |||||||||||||||||||||||||||
TABLE II— Additional Stock-based Award Information | |||||||||||||||||||||||||||
(Dollars in millions except per share data) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Stock options/SARs activity: | |||||||||||||||||||||||||||
Weighted-average fair value per share of stock awards granted | $ | 29.52 | $ | 28.34 | $ | 39.2 | |||||||||||||||||||||
Intrinsic value of stock awards exercised | $ | 649 | $ | 312 | $ | 488 | |||||||||||||||||||||
Fair value of stock awards vested | $ | 108 | $ | 167 | $ | 66 | |||||||||||||||||||||
Cash received from stock awards exercised | $ | 259 | $ | 152 | $ | 112 | |||||||||||||||||||||
RSUs activity: | |||||||||||||||||||||||||||
Weighted-average fair value per share of stock awards granted | $ | 89.18 | $ | 84.05 | $ | 104.61 | |||||||||||||||||||||
Fair value of stock awards vested | $ | 106 | $ | 117 | $ | 229 | |||||||||||||||||||||
Derivative_financial_instrumen2
Derivative financial instruments and risk management (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||
Location and fair value of derivative instruments reported in the Consolidated Financial Position | The location and fair value of derivative instruments reported in Statement 3 are as follows: | |||||||||||||||||||||||||
Consolidated | Asset (Liability) Fair Value | |||||||||||||||||||||||||
Statement of Financial Position Location | ||||||||||||||||||||||||||
(Millions of dollars) | Years ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Designated derivatives | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Receivables — trade and other | $ | 25 | $ | 54 | $ | 28 | |||||||||||||||||||
Machinery, Energy & Transportation | Accrued expenses | (134 | ) | (39 | ) | (66 | ) | |||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Receivables — trade and other | 6 | 7 | 17 | ||||||||||||||||||||||
Financial Products | Long-term receivables — trade and other | 73 | 115 | 209 | ||||||||||||||||||||||
Financial Products | Accrued expenses | (8 | ) | (6 | ) | (8 | ) | |||||||||||||||||||
$ | (38 | ) | $ | 131 | $ | 180 | ||||||||||||||||||||
Undesignated derivatives | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Receivables — trade and other | $ | 2 | $ | 19 | $ | 31 | |||||||||||||||||||
Machinery, Energy & Transportation | Accrued expenses | (43 | ) | (1 | ) | (63 | ) | |||||||||||||||||||
Financial Products | Receivables — trade and other | 5 | 7 | 10 | ||||||||||||||||||||||
Financial Products | Long-term receivables — trade and other | 17 | 9 | — | ||||||||||||||||||||||
Financial Products | Accrued expenses | (15 | ) | (4 | ) | (6 | ) | |||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Receivables — trade and other | — | — | 2 | ||||||||||||||||||||||
Financial Products | Accrued expenses | — | — | (1 | ) | |||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Receivables — trade and other | — | — | 1 | ||||||||||||||||||||||
Machinery, Energy & Transportation | Accrued expenses | (14 | ) | — | — | |||||||||||||||||||||
$ | (48 | ) | $ | 30 | $ | (26 | ) | |||||||||||||||||||
Total notional amounts of derivative instruments | The total notional amounts of the derivative instruments are as follows: | |||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 3,128 | $ | 3,565 | $ | 4,438 | ||||||||||||||||||||
Financial Products | $ | 5,249 | $ | 6,743 | $ | 9,817 | ||||||||||||||||||||
Effect of derivatives designated as hedging instruments on Consolidated Results of Operations | The effect of derivatives designated as hedging instruments on Statement 1 is as follows: | |||||||||||||||||||||||||
Fair Value Hedges | Year ended December 31, 2014 | |||||||||||||||||||||||||
(Millions of dollars) | Classification | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||||
on Derivatives | on Borrowings | |||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (41 | ) | $ | 23 | ||||||||||||||||||||
$ | (41 | ) | $ | 23 | ||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
on Derivatives | on Borrowings | |||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Other income (expense) | $ | (107 | ) | $ | 114 | ||||||||||||||||||||
$ | (107 | ) | $ | 114 | ||||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||
Classification | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
on Derivatives | on Borrowings | |||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | Other income (expense) | (20 | ) | 36 | ||||||||||||||||||||||
$ | (20 | ) | $ | 36 | ||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | |||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||
Amount of | Classification of | Amount of Gains (Losses) Reclassified from AOCI to Earnings | Recognized in Earnings (Ineffective Portion) | |||||||||||||||||||||||
Gains (Losses) Recognized in AOCI (Effective Portion) | Gains (Losses) | |||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | $ | (118 | ) | Other income (expense) | $ | 5 | $ | — | ||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | (63 | ) | Interest expense excluding Financial Products | (5 | ) | — | ||||||||||||||||||||
Financial Products | (6 | ) | Interest expense of Financial Products | (6 | ) | — | ||||||||||||||||||||
$ | (187 | ) | $ | (6 | ) | $ | — | |||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||
Amount of | Classification of | Amount of | Recognized in Earnings (Ineffective Portion) | |||||||||||||||||||||||
Gains (Losses) Recognized in AOCI (Effective Portion) | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
Reclassified | ||||||||||||||||||||||||||
from AOCI to | ||||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | $ | (4 | ) | Other income (expense) | $ | (57 | ) | 2 | $ | — | ||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | — | Other income (expense) | (3 | ) | — | |||||||||||||||||||||
Financial Products | (2 | ) | Interest expense of Financial Products | (6 | ) | 1 | 1 | |||||||||||||||||||
$ | (6 | ) | $ | (66 | ) | $ | 1 | |||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||
Amount of | Classification of | Amount of | Recognized in Earnings (Ineffective Portion) | |||||||||||||||||||||||
Gains (Losses) Recognized in AOCI (Effective Portion) | Gains (Losses) | Gains (Losses) | ||||||||||||||||||||||||
Reclassified | ||||||||||||||||||||||||||
from AOCI to | ||||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | $ | (78 | ) | Other income (expense) | $ | (30 | ) | 2 | $ | — | ||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Financial Products | 1 | Interest expense of Financial Products | 4 | (1 | ) | 1 | ||||||||||||||||||||
$ | (77 | ) | $ | (26 | ) | $ | (1 | ) | ||||||||||||||||||
1 | The ineffective portion recognized in earnings is included in Other income (expense). | |||||||||||||||||||||||||
2 | Includes $3 million and $7 million of losses reclassified from AOCI to Other income (expense) in 2013 and 2012, respectively 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 Results of Operations | The effect of derivatives not designated as hedging instruments on Statement 1 is as follows: | |||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||
(Millions of dollars) | Classification of Gains (Losses) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Other income (expense) | $ | (60 | ) | $ | 17 | $ | 62 | ||||||||||||||||||
Financial Products | Other income (expense) | (47 | ) | 8 | 6 | |||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Other income (expense) | 2 | (1 | ) | 2 | |||||||||||||||||||||
Financial Products | Other income (expense) | — | (3 | ) | — | |||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||
Machinery, Energy & Transportation | Other income (expense) | (15 | ) | (3 | ) | 2 | ||||||||||||||||||||
$ | (120 | ) | $ | 18 | $ | 72 | ||||||||||||||||||||
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, Energy & Transportation | $ | 60 | $ | — | $ | 60 | $ | (59 | ) | $ | — | $ | 1 | |||||||||||||
Financial Products | 238 | — | 238 | (12 | ) | — | 226 | |||||||||||||||||||
Total | $ | 298 | $ | — | $ | 298 | $ | (71 | ) | $ | — | $ | 227 | |||||||||||||
December 31, 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, Energy & Transportation | $ | 73 | $ | — | $ | 73 | $ | (32 | ) | $ | — | $ | 41 | |||||||||||||
Financial Products | 138 | — | 138 | (9 | ) | — | 129 | |||||||||||||||||||
Total | $ | 211 | $ | — | $ | 211 | $ | (41 | ) | $ | — | $ | 170 | |||||||||||||
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: | ||||||||||||||||||||||||||
December 31, 2014 | 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, Energy & Transportation | $ | 27 | $ | — | $ | 27 | $ | (27 | ) | $ | — | $ | — | |||||||||||||
Financial Products | 101 | — | 101 | (8 | ) | — | 93 | |||||||||||||||||||
Total | $ | 128 | $ | — | $ | 128 | $ | (35 | ) | $ | — | $ | 93 | |||||||||||||
Effect of net settlement provisions of the master netting agreements on derivative liabilities | ||||||||||||||||||||||||||
December 31, 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, Energy & Transportation | $ | (40 | ) | $ | — | $ | (40 | ) | $ | 32 | $ | — | $ | (8 | ) | |||||||||||
Financial Products | (10 | ) | — | (10 | ) | 9 | — | (1 | ) | |||||||||||||||||
Total | $ | (50 | ) | $ | — | $ | (50 | ) | $ | 41 | $ | — | $ | (9 | ) | |||||||||||
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, Energy & Transportation | $ | (129 | ) | $ | — | $ | (129 | ) | $ | 59 | $ | — | $ | (70 | ) | |||||||||||
Financial Products | (15 | ) | — | (15 | ) | 12 | — | (3 | ) | |||||||||||||||||
Total | $ | (144 | ) | $ | — | $ | (144 | ) | $ | 71 | $ | — | $ | (73 | ) | |||||||||||
December 31, 2014 | 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, Energy & Transportation | $ | (191 | ) | $ | — | $ | (191 | ) | $ | 27 | $ | — | $ | (164 | ) | |||||||||||
Financial Products | (23 | ) | — | (23 | ) | 8 | — | (15 | ) | |||||||||||||||||
Total | $ | (214 | ) | $ | — | $ | (214 | ) | $ | 35 | $ | — | $ | (179 | ) | |||||||||||
Other_income_expense_Tables
Other income (expense) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other income (expense) | |||||||||||||
Years ended December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Investment and interest income | $ | 66 | $ | 84 | $ | 82 | |||||||
Foreign exchange gains (losses) 1 | 54 | (254 | ) | (116 | ) | ||||||||
License fee income | 128 | 114 | 99 | ||||||||||
Gains (losses) on sale of securities and affiliated companies | 36 | 21 | 4 | ||||||||||
Miscellaneous income (loss) | (45 | ) | — | 61 | |||||||||
Total | $ | 239 | $ | (35 | ) | $ | 130 | ||||||
1 | Includes gains (losses) from foreign exchange derivative contracts. See Note 3 for further details. | ||||||||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||
Components of profit (loss) before taxes | |||||||||||||||||||||||||||
The components of profit before taxes were: | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
U.S. | $ | 2,022 | $ | 1,938 | $ | 4,090 | |||||||||||||||||||||
Non-U.S. | 3,061 | 3,190 | 4,146 | ||||||||||||||||||||||||
$ | 5,083 | $ | 5,128 | $ | 8,236 | ||||||||||||||||||||||
Components of the provision (benefit) for income taxes | |||||||||||||||||||||||||||
The components of the provision (benefit) for income taxes were: | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Current tax provision (benefit): | |||||||||||||||||||||||||||
U.S. | $ | 715 | $ | 407 | $ | 971 | |||||||||||||||||||||
Non-U.S. | 883 | 805 | 1,250 | ||||||||||||||||||||||||
State (U.S.) | 48 | 33 | 56 | ||||||||||||||||||||||||
1,646 | 1,245 | 2,277 | |||||||||||||||||||||||||
Deferred tax provision (benefit): | |||||||||||||||||||||||||||
U.S. | (167 | ) | 79 | 332 | |||||||||||||||||||||||
Non-U.S. | (77 | ) | (7 | ) | (89 | ) | |||||||||||||||||||||
State (U.S.) | (22 | ) | 2 | 8 | |||||||||||||||||||||||
(266 | ) | 74 | 251 | ||||||||||||||||||||||||
Total provision (benefit) for income taxes | $ | 1,380 | $ | 1,319 | $ | 2,528 | |||||||||||||||||||||
Reconciliation of the U.S. federal statutory rate to effective rate | Reconciliation of the U.S. federal statutory rate to effective rate: | ||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Taxes at U.S. statutory rate | $ | 1,779 | 35 | % | $ | 1,795 | 35 | % | $ | 2,882 | 35 | % | |||||||||||||||
(Decreases) increases in taxes resulting from: | |||||||||||||||||||||||||||
Non-U.S. subsidiaries taxed at other than 35% | (249 | ) | (4.9 | )% | (268 | ) | (5.2 | )% | (342 | ) | (4.2 | )% | |||||||||||||||
State and local taxes, net of federal | 17 | 0.3 | % | 23 | 0.4 | % | 55 | 0.7 | % | ||||||||||||||||||
Interest and penalties, net of tax | 12 | 0.2 | % | 4 | 0.1 | % | 22 | 0.3 | % | ||||||||||||||||||
U.S. research and production incentives | (125 | ) | (2.4 | )% | (91 | ) | (1.8 | )% | (80 | ) | (1.0 | )% | |||||||||||||||
Other—net | (10 | ) | (0.2 | )% | (2 | ) | — | % | (27 | ) | (0.3 | )% | |||||||||||||||
1,424 | 28 | % | 1,461 | 28.5 | % | 2,510 | 30.5 | % | |||||||||||||||||||
Prior year tax and interest adjustments | (21 | ) | (0.4 | )% | (55 | ) | (1.1 | )% | (300 | ) | (3.7 | )% | |||||||||||||||
Nondeductible goodwill | — | — | % | — | — | % | 318 | 3.9 | % | ||||||||||||||||||
Release of valuation allowances | (23 | ) | (0.5 | )% | — | — | % | — | — | % | |||||||||||||||||
Tax law changes | — | — | % | (87 | ) | (1.7 | )% | — | — | % | |||||||||||||||||
Provision (benefit) for income taxes | $ | 1,380 | 27.1 | % | $ | 1,319 | 25.7 | % | $ | 2,528 | 30.7 | % | |||||||||||||||
Deferred income tax assets and liabilities | The amount of deferred income taxes at December 31, included on the following lines in Statement 3, are as follows: | ||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Deferred and refundable income taxes | $ | 992 | $ | 877 | $ | 979 | |||||||||||||||||||||
Noncurrent deferred and refundable income taxes | 1,267 | 456 | 1,863 | ||||||||||||||||||||||||
2,259 | 1,333 | 2,842 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Other current liabilities | 62 | 86 | 66 | ||||||||||||||||||||||||
Other liabilities | 414 | 447 | 484 | ||||||||||||||||||||||||
Deferred income taxes—net | $ | 1,783 | $ | 800 | $ | 2,292 | |||||||||||||||||||||
Deferred income tax assets and liabilities: | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Deferred income tax assets: | |||||||||||||||||||||||||||
Pension | $ | 1,513 | $ | 903 | $ | 2,100 | |||||||||||||||||||||
Postemployment benefits other than pensions | 1,514 | 1,435 | 1,678 | ||||||||||||||||||||||||
Tax carryforwards | 826 | 760 | 663 | ||||||||||||||||||||||||
Warranty reserves | 346 | 313 | 358 | ||||||||||||||||||||||||
Stock-based compensation | 327 | 320 | 281 | ||||||||||||||||||||||||
Inventory | 123 | 112 | 195 | ||||||||||||||||||||||||
Allowance for credit losses | 198 | 184 | 170 | ||||||||||||||||||||||||
Post sale discounts | 175 | 146 | 141 | ||||||||||||||||||||||||
Deferred compensation | 132 | 126 | 110 | ||||||||||||||||||||||||
Other—net | 549 | 524 | 491 | ||||||||||||||||||||||||
5,703 | 4,823 | 6,187 | |||||||||||||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||||||||||||
Capital and intangible assets | (2,625 | ) | (2,815 | ) | (2,759 | ) | |||||||||||||||||||||
Bond discount | (233 | ) | (240 | ) | (249 | ) | |||||||||||||||||||||
Translation | (252 | ) | (133 | ) | (173 | ) | |||||||||||||||||||||
Undistributed profits of non-U.S. subsidiaries | (69 | ) | (90 | ) | (128 | ) | |||||||||||||||||||||
(3,179 | ) | (3,278 | ) | (3,309 | ) | ||||||||||||||||||||||
Valuation allowance for deferred tax assets | (741 | ) | (745 | ) | (586 | ) | |||||||||||||||||||||
Deferred income taxes—net | $ | 1,783 | $ | 800 | $ | 2,292 | |||||||||||||||||||||
Summary of net operating loss carryforwards | At December 31, 2014, amounts and expiration dates of net operating loss carryforwards in various non-U.S. taxing jurisdictions were: | ||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019-2035 | Unlimited | Total | |||||||||||||||||||||
$ | 7 | $ | 5 | $ | 14 | $ | 96 | $ | 700 | $ | 1,389 | $ | 2,211 | ||||||||||||||
Reconciliation of unrecognized tax benefits | |||||||||||||||||||||||||||
Reconciliation of unrecognized tax benefits: 1 | |||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Balance at January 1, | $ | 759 | $ | 715 | $ | 958 | |||||||||||||||||||||
Additions for tax positions related to current year | 58 | 63 | 64 | ||||||||||||||||||||||||
Additions for tax positions related to prior years | 84 | 52 | 178 | ||||||||||||||||||||||||
Reductions for tax positions related to prior years | (31 | ) | (31 | ) | (266 | ) | |||||||||||||||||||||
Reductions for settlements 2 | (18 | ) | (15 | ) | (191 | ) | |||||||||||||||||||||
Reductions for expiration of statute of limitations | (6 | ) | (25 | ) | (28 | ) | |||||||||||||||||||||
Balance at December 31, | $ | 846 | $ | 759 | $ | 715 | |||||||||||||||||||||
Amount that, if recognized, would impact the effective tax rate | $ | 804 | $ | 726 | $ | 669 | |||||||||||||||||||||
1 | Foreign currency translation amounts are included within each line as applicable. | ||||||||||||||||||||||||||
2 | Includes cash payment or other reduction of assets to settle liability. | ||||||||||||||||||||||||||
Cat_Financial_Financing_Activi1
Cat Financial Financing Activities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Contractual maturities of outstanding wholesale inventory receivables | |||||||||||||||||||||||||||||
Contractual maturities of outstanding wholesale inventory receivables: | |||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
Amounts Due In | Wholesale | Wholesale | Wholesale | Total | |||||||||||||||||||||||||
Installment | Finance | Notes | |||||||||||||||||||||||||||
Contracts | Leases | ||||||||||||||||||||||||||||
2015 | $ | 200 | $ | 109 | $ | 867 | $ | 1,176 | |||||||||||||||||||||
2016 | 109 | 85 | 262 | 456 | |||||||||||||||||||||||||
2017 | 70 | 58 | 202 | 330 | |||||||||||||||||||||||||
2018 | 39 | 27 | 17 | 83 | |||||||||||||||||||||||||
2019 | 15 | 7 | — | 22 | |||||||||||||||||||||||||
Thereafter | 3 | 2 | — | 5 | |||||||||||||||||||||||||
436 | 288 | 1,348 | 2,072 | ||||||||||||||||||||||||||
Guaranteed residual value | — | 98 | — | 98 | |||||||||||||||||||||||||
Unguaranteed residual value | — | 38 | — | 38 | |||||||||||||||||||||||||
Less: Unearned income | (7 | ) | (28 | ) | (3 | ) | (38 | ) | |||||||||||||||||||||
Total | $ | 429 | $ | 396 | $ | 1,345 | $ | 2,170 | |||||||||||||||||||||
Contractual maturities of outstanding finance receivables | |||||||||||||||||||||||||||||
Contractual maturities of outstanding finance receivables: | |||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
Amounts Due In | Retail | Retail Finance | Retail | Total | |||||||||||||||||||||||||
Installment | Leases | Notes | |||||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||||||
2015 | $ | 2,308 | $ | 2,956 | $ | 3,891 | $ | 9,155 | |||||||||||||||||||||
2016 | 1,736 | 2,064 | 2,238 | 6,038 | |||||||||||||||||||||||||
2017 | 1,184 | 1,159 | 1,896 | 4,239 | |||||||||||||||||||||||||
2018 | 587 | 513 | 1,069 | 2,169 | |||||||||||||||||||||||||
2019 | 174 | 209 | 848 | 1,231 | |||||||||||||||||||||||||
Thereafter | 10 | 131 | 970 | 1,111 | |||||||||||||||||||||||||
5,999 | 7,032 | 10,912 | 23,943 | ||||||||||||||||||||||||||
Guaranteed residual value | — | 323 | — | 323 | |||||||||||||||||||||||||
Unguaranteed residual value | — | 622 | — | 622 | |||||||||||||||||||||||||
Less: Unearned income | (106 | ) | (630 | ) | (86 | ) | (822 | ) | |||||||||||||||||||||
Total | $ | 5,893 | $ | 7,347 | $ | 10,826 | $ | 24,066 | |||||||||||||||||||||
Impaired loans and finance leases | Individually impaired loans and finance leases for the Customer portfolio segment were as follows: | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid Principal Balance | Related | ||||||||||||||||||||||||||
Investment | Allowance | ||||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 14 | $ | 14 | $ | — | |||||||||||||||||||||||
Europe | 44 | 43 | — | ||||||||||||||||||||||||||
Asia Pacific | 1 | 1 | — | ||||||||||||||||||||||||||
Mining | 29 | 29 | — | ||||||||||||||||||||||||||
Latin America | 34 | 34 | — | ||||||||||||||||||||||||||
Caterpillar Power Finance | 129 | 128 | — | ||||||||||||||||||||||||||
Total | $ | 251 | $ | 249 | $ | — | |||||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 6 | $ | 6 | $ | 1 | |||||||||||||||||||||||
Europe | 12 | 12 | 4 | ||||||||||||||||||||||||||
Asia Pacific | 29 | 29 | 8 | ||||||||||||||||||||||||||
Mining | 138 | 137 | 9 | ||||||||||||||||||||||||||
Latin America | 42 | 42 | 12 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 135 | 134 | 41 | ||||||||||||||||||||||||||
Total | $ | 362 | $ | 360 | $ | 75 | |||||||||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 20 | $ | 20 | $ | 1 | |||||||||||||||||||||||
Europe | 56 | 55 | 4 | ||||||||||||||||||||||||||
Asia Pacific | 30 | 30 | 8 | ||||||||||||||||||||||||||
Mining | 167 | 166 | 9 | ||||||||||||||||||||||||||
Latin America | 76 | 76 | 12 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 264 | 262 | 41 | ||||||||||||||||||||||||||
Total | $ | 613 | $ | 609 | $ | 75 | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 23 | $ | 22 | $ | — | |||||||||||||||||||||||
Europe | 48 | 47 | — | ||||||||||||||||||||||||||
Asia Pacific | 7 | 7 | — | ||||||||||||||||||||||||||
Mining | 134 | 134 | — | ||||||||||||||||||||||||||
Latin America | 11 | 11 | — | ||||||||||||||||||||||||||
Caterpillar Power Finance | 223 | 222 | — | ||||||||||||||||||||||||||
Total | $ | 446 | $ | 443 | $ | — | |||||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 13 | $ | 13 | $ | 4 | |||||||||||||||||||||||
Europe | 20 | 19 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 16 | 16 | 2 | ||||||||||||||||||||||||||
Mining | — | — | — | ||||||||||||||||||||||||||
Latin America | 23 | 23 | 6 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 110 | 106 | 51 | ||||||||||||||||||||||||||
Total | $ | 182 | $ | 177 | $ | 70 | |||||||||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 36 | $ | 35 | $ | 4 | |||||||||||||||||||||||
Europe | 68 | 66 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 23 | 23 | 2 | ||||||||||||||||||||||||||
Mining | 134 | 134 | — | ||||||||||||||||||||||||||
Latin America | 34 | 34 | 6 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 333 | 328 | 51 | ||||||||||||||||||||||||||
Total | $ | 628 | $ | 620 | $ | 70 | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(Millions of dollars) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 28 | $ | 27 | $ | — | |||||||||||||||||||||||
Europe | 45 | 45 | — | ||||||||||||||||||||||||||
Asia Pacific | 2 | 2 | — | ||||||||||||||||||||||||||
Mining | 1 | 1 | — | ||||||||||||||||||||||||||
Latin America | 7 | 7 | — | ||||||||||||||||||||||||||
Caterpillar Power Finance | 295 | 295 | — | ||||||||||||||||||||||||||
Total | $ | 378 | $ | 377 | $ | — | |||||||||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 25 | $ | 23 | $ | 7 | |||||||||||||||||||||||
Europe | 28 | 26 | 11 | ||||||||||||||||||||||||||
Asia Pacific | 19 | 19 | 4 | ||||||||||||||||||||||||||
Mining | — | — | — | ||||||||||||||||||||||||||
Latin America | 30 | 30 | 8 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 113 | 109 | 24 | ||||||||||||||||||||||||||
Total | $ | 215 | $ | 207 | $ | 54 | |||||||||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 53 | $ | 50 | $ | 7 | |||||||||||||||||||||||
Europe | 73 | 71 | 11 | ||||||||||||||||||||||||||
Asia Pacific | 21 | 21 | 4 | ||||||||||||||||||||||||||
Mining | 1 | 1 | — | ||||||||||||||||||||||||||
Latin America | 37 | 37 | 8 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 408 | 404 | 24 | ||||||||||||||||||||||||||
Total | $ | 593 | $ | 584 | $ | 54 | |||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Millions of dollars) | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 20 | $ | 1 | $ | 25 | $ | 3 | $ | 50 | $ | 3 | |||||||||||||||||
Europe | 47 | 1 | 49 | 1 | 45 | 1 | |||||||||||||||||||||||
Asia Pacific | 3 | — | 4 | — | 3 | — | |||||||||||||||||||||||
Mining | 69 | 3 | 61 | 3 | 8 | — | |||||||||||||||||||||||
Latin America | 30 | — | 11 | — | 6 | — | |||||||||||||||||||||||
Caterpillar Power Finance | 164 | 6 | 271 | 5 | 220 | 2 | |||||||||||||||||||||||
Total | $ | 333 | $ | 11 | $ | 421 | $ | 12 | $ | 332 | $ | 6 | |||||||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 9 | $ | — | $ | 18 | $ | 1 | $ | 25 | $ | 1 | |||||||||||||||||
Europe | 21 | 1 | 22 | 1 | 27 | 1 | |||||||||||||||||||||||
Asia Pacific | 22 | 1 | 18 | 1 | 15 | 1 | |||||||||||||||||||||||
Mining | 90 | 7 | 1 | — | — | — | |||||||||||||||||||||||
Latin America | 36 | 1 | 44 | 2 | 27 | 2 | |||||||||||||||||||||||
Caterpillar Power Finance | 96 | 2 | 135 | 1 | 94 | — | |||||||||||||||||||||||
Total | $ | 274 | $ | 12 | $ | 238 | $ | 6 | $ | 188 | $ | 5 | |||||||||||||||||
Total Impaired Loans and Finance Leases | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 29 | $ | 1 | $ | 43 | $ | 4 | $ | 75 | $ | 4 | |||||||||||||||||
Europe | 68 | 2 | 71 | 2 | 72 | 2 | |||||||||||||||||||||||
Asia Pacific | 25 | 1 | 22 | 1 | 18 | 1 | |||||||||||||||||||||||
Mining | 159 | 10 | 62 | 3 | 8 | — | |||||||||||||||||||||||
Latin America | 66 | 1 | 55 | 2 | 33 | 2 | |||||||||||||||||||||||
Caterpillar Power Finance | 260 | 8 | 406 | 6 | 314 | 2 | |||||||||||||||||||||||
Total | $ | 607 | $ | 23 | $ | 659 | $ | 18 | $ | 520 | $ | 11 | |||||||||||||||||
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: | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 27 | $ | 26 | $ | 59 | |||||||||||||||||||||||
Europe | 28 | 28 | 38 | ||||||||||||||||||||||||||
Asia Pacific | 54 | 50 | 36 | ||||||||||||||||||||||||||
Mining | 62 | 23 | 12 | ||||||||||||||||||||||||||
Latin America | 201 | 179 | 148 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 96 | 119 | 220 | ||||||||||||||||||||||||||
Total | $ | 468 | $ | 425 | $ | 513 | |||||||||||||||||||||||
Aging related to loans and finance leases | Aging related to loans and finance leases was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
31-60 Days Past Due | 61-90 Days Past Due | 91+ | Total Past | Current | Total | 91+ Still | |||||||||||||||||||||||
Days Past Due | Due | Finance | Accruing | ||||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 46 | $ | 8 | $ | 27 | $ | 81 | $ | 7,192 | $ | 7,273 | $ | 4 | |||||||||||||||
Europe | 16 | 23 | 29 | 68 | 2,607 | 2,675 | 6 | ||||||||||||||||||||||
Asia Pacific | 29 | 22 | 69 | 120 | 2,316 | 2,436 | 16 | ||||||||||||||||||||||
Mining | 28 | — | 11 | 39 | 2,084 | 2,123 | — | ||||||||||||||||||||||
Latin America | 55 | 23 | 196 | 274 | 2,583 | 2,857 | 8 | ||||||||||||||||||||||
Caterpillar Power Finance | 1 | 4 | 64 | 69 | 3,079 | 3,148 | 1 | ||||||||||||||||||||||
Dealer | |||||||||||||||||||||||||||||
North America | — | — | — | — | 2,189 | 2,189 | — | ||||||||||||||||||||||
Europe | — | — | — | — | 153 | 153 | — | ||||||||||||||||||||||
Asia Pacific | — | — | — | — | 566 | 566 | — | ||||||||||||||||||||||
Mining | — | — | — | — | — | — | — | ||||||||||||||||||||||
Latin America | — | — | — | — | 646 | 646 | — | ||||||||||||||||||||||
Caterpillar Power Finance | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 175 | $ | 80 | $ | 396 | $ | 651 | $ | 23,415 | $ | 24,066 | $ | 35 | |||||||||||||||
(Millions of dollars) | December 31, 2013 | ||||||||||||||||||||||||||||
31-60 Days Past Due | 61-90 Days Past Due | 91+ | Total Past | Current | Total | 91+ Still | |||||||||||||||||||||||
Days Past Due | Due | Finance | Accruing | ||||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | $ | 37 | $ | 12 | $ | 24 | $ | 73 | $ | 6,508 | $ | 6,581 | $ | — | |||||||||||||||
Europe | 26 | 15 | 29 | 70 | 2,805 | 2,875 | 6 | ||||||||||||||||||||||
Asia Pacific | 54 | 23 | 59 | 136 | 2,752 | 2,888 | 11 | ||||||||||||||||||||||
Mining | 3 | — | 12 | 15 | 2,128 | 2,143 | — | ||||||||||||||||||||||
Latin America | 54 | 25 | 165 | 244 | 2,474 | 2,718 | 5 | ||||||||||||||||||||||
Caterpillar Power Finance | 55 | 30 | 60 | 145 | 2,946 | 3,091 | — | ||||||||||||||||||||||
Dealer | |||||||||||||||||||||||||||||
North America | — | — | — | — | 2,283 | 2,283 | — | ||||||||||||||||||||||
Europe | — | — | — | — | 150 | 150 | — | ||||||||||||||||||||||
Asia Pacific | — | — | — | — | 583 | 583 | — | ||||||||||||||||||||||
Mining | — | — | — | — | 1 | 1 | — | ||||||||||||||||||||||
Latin America | — | — | — | — | 748 | 748 | — | ||||||||||||||||||||||
Caterpillar Power Finance | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 229 | $ | 105 | $ | 349 | $ | 683 | $ | 23,378 | $ | 24,061 | $ | 22 | |||||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||||||||||
31-60 Days Past Due | 61-90 Days Past Due | 91+ | Total Past | Current | Total | 91+ Still | |||||||||||||||||||||||
Days Past Due | Due | Finance | Accruing | ||||||||||||||||||||||||||
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 | — | ||||||||||||||||||||||
Caterpillar Power Finance | — | — | — | — | — | — | — | ||||||||||||||||||||||
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 during 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | December 31, 2014 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||
Balance at beginning of year | $ | 365 | $ | 10 | $ | 375 | |||||||||||||||||||||||
Receivables written off | (151 | ) | — | (151 | ) | ||||||||||||||||||||||||
Recoveries on receivables previously written off | 47 | — | 47 | ||||||||||||||||||||||||||
Provision for credit losses | 150 | — | 150 | ||||||||||||||||||||||||||
Other | (23 | ) | — | (23 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 388 | $ | 10 | $ | 398 | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 75 | $ | — | $ | 75 | |||||||||||||||||||||||
Collectively evaluated for impairment | 313 | 10 | 323 | ||||||||||||||||||||||||||
Ending Balance | $ | 388 | $ | 10 | $ | 398 | |||||||||||||||||||||||
Recorded Investment in Finance Receivables: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 613 | $ | — | $ | 613 | |||||||||||||||||||||||
Collectively evaluated for impairment | 19,899 | 3,554 | 23,453 | ||||||||||||||||||||||||||
Ending Balance | $ | 20,512 | $ | 3,554 | $ | 24,066 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2013 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||
Balance at beginning of year | $ | 414 | $ | 9 | $ | 423 | |||||||||||||||||||||||
Receivables written off | (179 | ) | — | (179 | ) | ||||||||||||||||||||||||
Recoveries on receivables previously written off | 56 | — | 56 | ||||||||||||||||||||||||||
Provision for credit losses | 83 | 1 | 84 | ||||||||||||||||||||||||||
Other | (9 | ) | — | (9 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 365 | $ | 10 | $ | 375 | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 70 | $ | — | $ | 70 | |||||||||||||||||||||||
Collectively evaluated for impairment | 295 | 10 | 305 | ||||||||||||||||||||||||||
Ending Balance | $ | 365 | $ | 10 | $ | 375 | |||||||||||||||||||||||
Recorded Investment in Finance Receivables: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 628 | $ | — | $ | 628 | |||||||||||||||||||||||
Collectively evaluated for impairment | 19,668 | 3,765 | 23,433 | ||||||||||||||||||||||||||
Ending Balance | $ | 20,296 | $ | 3,765 | $ | 24,061 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||
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) | December 31, 2014 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||
North America | $ | 7,246 | $ | 2,189 | $ | 9,435 | |||||||||||||||||||||||
Europe | 2,647 | 153 | 2,800 | ||||||||||||||||||||||||||
Asia Pacific | 2,382 | 566 | 2,948 | ||||||||||||||||||||||||||
Mining | 2,061 | — | 2,061 | ||||||||||||||||||||||||||
Latin America | 2,656 | 646 | 3,302 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,052 | — | 3,052 | ||||||||||||||||||||||||||
Total Performing | $ | 20,044 | $ | 3,554 | $ | 23,598 | |||||||||||||||||||||||
Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 27 | $ | — | $ | 27 | |||||||||||||||||||||||
Europe | 28 | — | 28 | ||||||||||||||||||||||||||
Asia Pacific | 54 | — | 54 | ||||||||||||||||||||||||||
Mining | 62 | — | 62 | ||||||||||||||||||||||||||
Latin America | 201 | — | 201 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 96 | — | 96 | ||||||||||||||||||||||||||
Total Non-Performing | $ | 468 | $ | — | $ | 468 | |||||||||||||||||||||||
Performing & Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 7,273 | $ | 2,189 | $ | 9,462 | |||||||||||||||||||||||
Europe | 2,675 | 153 | 2,828 | ||||||||||||||||||||||||||
Asia Pacific | 2,436 | 566 | 3,002 | ||||||||||||||||||||||||||
Mining | 2,123 | — | 2,123 | ||||||||||||||||||||||||||
Latin America | 2,857 | 646 | 3,503 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,148 | — | 3,148 | ||||||||||||||||||||||||||
Total | $ | 20,512 | $ | 3,554 | $ | 24,066 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2013 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||
North America | $ | 6,555 | $ | 2,283 | $ | 8,838 | |||||||||||||||||||||||
Europe | 2,847 | 150 | 2,997 | ||||||||||||||||||||||||||
Asia Pacific | 2,838 | 583 | 3,421 | ||||||||||||||||||||||||||
Mining | 2,120 | 1 | 2,121 | ||||||||||||||||||||||||||
Latin America | 2,539 | 748 | 3,287 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 2,972 | — | 2,972 | ||||||||||||||||||||||||||
Total Performing | $ | 19,871 | $ | 3,765 | $ | 23,636 | |||||||||||||||||||||||
Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 26 | $ | — | $ | 26 | |||||||||||||||||||||||
Europe | 28 | — | 28 | ||||||||||||||||||||||||||
Asia Pacific | 50 | — | 50 | ||||||||||||||||||||||||||
Mining | 23 | — | 23 | ||||||||||||||||||||||||||
Latin America | 179 | — | 179 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 119 | — | 119 | ||||||||||||||||||||||||||
Total Non-Performing | $ | 425 | $ | — | $ | 425 | |||||||||||||||||||||||
Performing & Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 6,581 | $ | 2,283 | $ | 8,864 | |||||||||||||||||||||||
Europe | 2,875 | 150 | 3,025 | ||||||||||||||||||||||||||
Asia Pacific | 2,888 | 583 | 3,471 | ||||||||||||||||||||||||||
Mining | 2,143 | 1 | 2,144 | ||||||||||||||||||||||||||
Latin America | 2,718 | 748 | 3,466 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,091 | — | 3,091 | ||||||||||||||||||||||||||
Total | $ | 20,296 | $ | 3,765 | $ | 24,061 | |||||||||||||||||||||||
(Millions of dollars) | December 31, 2012 | ||||||||||||||||||||||||||||
Customer | Dealer | Total | |||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||
North America | $ | 5,908 | $ | 2,063 | $ | 7,971 | |||||||||||||||||||||||
Europe | 2,517 | 185 | 2,702 | ||||||||||||||||||||||||||
Asia Pacific | 3,002 | 751 | 3,753 | ||||||||||||||||||||||||||
Mining | 1,961 | 1 | 1,962 | ||||||||||||||||||||||||||
Latin America | 2,571 | 884 | 3,455 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 2,952 | — | 2,952 | ||||||||||||||||||||||||||
Total Performing | $ | 18,911 | $ | 3,884 | $ | 22,795 | |||||||||||||||||||||||
Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 59 | $ | — | $ | 59 | |||||||||||||||||||||||
Europe | 38 | — | 38 | ||||||||||||||||||||||||||
Asia Pacific | 36 | — | 36 | ||||||||||||||||||||||||||
Mining | 12 | — | 12 | ||||||||||||||||||||||||||
Latin America | 148 | — | 148 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 220 | — | 220 | ||||||||||||||||||||||||||
Total Non-Performing | $ | 513 | $ | — | $ | 513 | |||||||||||||||||||||||
Performing & Non-Performing | |||||||||||||||||||||||||||||
North America | $ | 5,967 | $ | 2,063 | $ | 8,030 | |||||||||||||||||||||||
Europe | 2,555 | 185 | 2,740 | ||||||||||||||||||||||||||
Asia Pacific | 3,038 | 751 | 3,789 | ||||||||||||||||||||||||||
Mining | 1,973 | 1 | 1,974 | ||||||||||||||||||||||||||
Latin America | 2,719 | 884 | 3,603 | ||||||||||||||||||||||||||
Caterpillar Power Finance | 3,172 | — | 3,172 | ||||||||||||||||||||||||||
Total | $ | 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 years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | ||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 34 | $ | 12 | $ | 7 | ||||||||||||||||||||||||
Europe | 8 | 7 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 2 | — | — | ||||||||||||||||||||||||||
Mining | 51 | 185 | 176 | ||||||||||||||||||||||||||
Latin America | 51 | 32 | 31 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 18 | 137 | 139 | ||||||||||||||||||||||||||
Total 2 | 164 | $ | 373 | $ | 360 | ||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 62 | $ | 9 | $ | 9 | ||||||||||||||||||||||||
Europe | 51 | 7 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 3 | 1 | 1 | ||||||||||||||||||||||||||
Mining | 45 | 123 | 123 | ||||||||||||||||||||||||||
Latin America | 16 | 2 | 2 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 17 | 153 | 157 | ||||||||||||||||||||||||||
Total 2 | 194 | $ | 295 | $ | 299 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 98 | $ | 15 | $ | 15 | ||||||||||||||||||||||||
Europe | 21 | 8 | 8 | ||||||||||||||||||||||||||
Asia Pacific | 12 | 3 | 3 | ||||||||||||||||||||||||||
Mining | — | — | — | ||||||||||||||||||||||||||
Latin America | 41 | 5 | 5 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 27 | 253 | 253 | ||||||||||||||||||||||||||
Total 2 | 199 | $ | 284 | $ | 284 | ||||||||||||||||||||||||
1 | During the year ended December 31, 2014, no additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. During the years ended December 31, 2013 and 2012, $25 million and $24 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million and $24 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented. At December 31, 2014, there were no remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR. | ||||||||||||||||||||||||||||
2 | Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest. | ||||||||||||||||||||||||||||
TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2014, 2013, and 2012 which had been modified within twelve months prior to the default date, were as follows: | |||||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||||
Number | Post-TDR | Number | Post-TDR | Number | Post-TDR | ||||||||||||||||||||||||
of Contracts | Recorded | of Contracts | Recorded | of Contracts | Recorded | ||||||||||||||||||||||||
Investment | Investment | Investment | |||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 11 | $ | 1 | 19 | $ | 4 | 49 | $ | 4 | ||||||||||||||||||||
Europe | 46 | 2 | 5 | — | — | — | |||||||||||||||||||||||
Asia Pacific | — | — | — | — | 2 | 1 | |||||||||||||||||||||||
Mining | — | — | — | — | — | — | |||||||||||||||||||||||
Latin America | 11 | 1 | — | — | — | — | |||||||||||||||||||||||
Caterpillar Power Finance | — | — | 2 | 3 | 16 | 21 | |||||||||||||||||||||||
Total | 68 | $ | 4 | 26 | $ | 7 | 67 | $ | 26 | ||||||||||||||||||||
TDRs with a payment default which had been modified within twelve months prior to the default date | Loan and finance lease receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | ||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 34 | $ | 12 | $ | 7 | ||||||||||||||||||||||||
Europe | 8 | 7 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 2 | — | — | ||||||||||||||||||||||||||
Mining | 51 | 185 | 176 | ||||||||||||||||||||||||||
Latin America | 51 | 32 | 31 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 18 | 137 | 139 | ||||||||||||||||||||||||||
Total 2 | 164 | $ | 373 | $ | 360 | ||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 62 | $ | 9 | $ | 9 | ||||||||||||||||||||||||
Europe | 51 | 7 | 7 | ||||||||||||||||||||||||||
Asia Pacific | 3 | 1 | 1 | ||||||||||||||||||||||||||
Mining | 45 | 123 | 123 | ||||||||||||||||||||||||||
Latin America | 16 | 2 | 2 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 17 | 153 | 157 | ||||||||||||||||||||||||||
Total 2 | 194 | $ | 295 | $ | 299 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Number | Pre-TDR | Post-TDR | |||||||||||||||||||||||||||
of Contracts | Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 98 | $ | 15 | $ | 15 | ||||||||||||||||||||||||
Europe | 21 | 8 | 8 | ||||||||||||||||||||||||||
Asia Pacific | 12 | 3 | 3 | ||||||||||||||||||||||||||
Mining | — | — | — | ||||||||||||||||||||||||||
Latin America | 41 | 5 | 5 | ||||||||||||||||||||||||||
Caterpillar Power Finance 1 | 27 | 253 | 253 | ||||||||||||||||||||||||||
Total 2 | 199 | $ | 284 | $ | 284 | ||||||||||||||||||||||||
1 | During the year ended December 31, 2014, no additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. During the years ended December 31, 2013 and 2012, $25 million and $24 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million and $24 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented. At December 31, 2014, there were no remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR. | ||||||||||||||||||||||||||||
2 | Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest. | ||||||||||||||||||||||||||||
TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2014, 2013, and 2012 which had been modified within twelve months prior to the default date, were as follows: | |||||||||||||||||||||||||||||
(Millions of dollars) | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||||
Number | Post-TDR | Number | Post-TDR | Number | Post-TDR | ||||||||||||||||||||||||
of Contracts | Recorded | of Contracts | Recorded | of Contracts | Recorded | ||||||||||||||||||||||||
Investment | Investment | Investment | |||||||||||||||||||||||||||
Customer | |||||||||||||||||||||||||||||
North America | 11 | $ | 1 | 19 | $ | 4 | 49 | $ | 4 | ||||||||||||||||||||
Europe | 46 | 2 | 5 | — | — | — | |||||||||||||||||||||||
Asia Pacific | — | — | — | — | 2 | 1 | |||||||||||||||||||||||
Mining | — | — | — | — | — | — | |||||||||||||||||||||||
Latin America | 11 | 1 | — | — | — | — | |||||||||||||||||||||||
Caterpillar Power Finance | — | — | 2 | 3 | 16 | 21 | |||||||||||||||||||||||
Total | 68 | $ | 4 | 26 | $ | 7 | 67 | $ | 26 | ||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||
Inventories | Inventories (principally using the LIFO method) are comprised of the following: | ||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Raw materials | $ | 2,986 | $ | 2,966 | $ | 3,573 | |||||||
Work-in-process | 2,455 | 2,589 | 2,920 | ||||||||||
Finished goods | 6,504 | 6,785 | 8,767 | ||||||||||
Supplies | 260 | 285 | 287 | ||||||||||
Total inventories | $ | 12,205 | $ | 12,625 | $ | 15,547 | |||||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(Millions of dollars) | Useful | 2014 | 2013 | 2012 | |||||||||||||||||||
Lives (Years) | |||||||||||||||||||||||
Land | — | $ | 665 | $ | 688 | $ | 723 | ||||||||||||||||
Buildings and land improvements | 20-45 | 7,119 | 6,928 | 6,214 | |||||||||||||||||||
Machinery, equipment and other | 10-Mar | 16,971 | 16,793 | 16,073 | |||||||||||||||||||
Equipment leased to others | 10-Jan | 5,596 | 5,365 | 4,658 | |||||||||||||||||||
Construction-in-process | — | 1,221 | 1,542 | 2,264 | |||||||||||||||||||
Total property, plant and equipment, at cost | 31,572 | 31,316 | 29,932 | ||||||||||||||||||||
Less: Accumulated depreciation | (14,995 | ) | (14,241 | ) | (13,471 | ) | |||||||||||||||||
Property, plant and equipment–net | $ | 16,577 | $ | 17,075 | $ | 16,461 | |||||||||||||||||
Assets recorded under capital leases | |||||||||||||||||||||||
Assets recorded under capital leases: 1 | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Gross capital leases 2 | $ | 111 | $ | 125 | $ | 134 | |||||||||||||||||
Less: Accumulated depreciation | (52 | ) | (50 | ) | (58 | ) | |||||||||||||||||
Net capital leases | $ | 59 | $ | 75 | $ | 76 | |||||||||||||||||
1 | Included in Property, plant and equipment table above. | ||||||||||||||||||||||
2 | Consists primarily of machinery and equipment. | ||||||||||||||||||||||
Scheduled minimum rental payments on assets recorded under capital leases | At December 31, 2014, scheduled minimum rental payments on assets recorded under capital leases were: | ||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
$ | 8 | $ | 26 | $ | 10 | $ | 7 | $ | 7 | $ | 35 | ||||||||||||
Equipment leased to others | |||||||||||||||||||||||
Equipment leased to others (primarily by Cat Financial): | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Equipment leased to others–at original cost | $ | 5,596 | $ | 5,365 | $ | 4,658 | |||||||||||||||||
Less: Accumulated depreciation | (1,565 | ) | (1,521 | ) | (1,383 | ) | |||||||||||||||||
Equipment leased to others–net | $ | 4,031 | $ | 3,844 | $ | 3,275 | |||||||||||||||||
Scheduled minimum rental payments to be received for equipment leased to others | At December 31, 2014, scheduled minimum rental payments to be received for equipment leased to others were: | ||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
$ | 951 | $ | 621 | $ | 353 | $ | 180 | $ | 73 | $ | 28 | ||||||||||||
Investments_in_unconsolidated_1
Investments in unconsolidated affiliated companies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | |||||||||||||
Years ended December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Results of Operations: | |||||||||||||
Sales | $ | 1,662 | $ | 1,336 | $ | 1,084 | |||||||
Cost of sales | 1,292 | 1,048 | 872 | ||||||||||
Gross profit | $ | 370 | $ | 288 | $ | 212 | |||||||
Profit (loss) | $ | (30 | ) | $ | (28 | ) | $ | 28 | |||||
Financial Position of unconsolidated affiliated companies | |||||||||||||
Financial Position of unconsolidated affiliated companies: | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Financial Position: | |||||||||||||
Assets: | |||||||||||||
Current assets | $ | 716 | $ | 683 | $ | 715 | |||||||
Property, plant and equipment–net | 653 | 710 | 529 | ||||||||||
Other assets | 557 | 608 | 616 | ||||||||||
1,926 | 2,001 | 1,860 | |||||||||||
Liabilities: | |||||||||||||
Current liabilities | 518 | 437 | 443 | ||||||||||
Long-term debt due after one year | 867 | 900 | 708 | ||||||||||
Other liabilities | 215 | 262 | 170 | ||||||||||
1,600 | 1,599 | 1,321 | |||||||||||
Equity | $ | 326 | $ | 402 | $ | 539 | |||||||
Caterpillar's investments in unconsolidated affiliated companies | |||||||||||||
Caterpillar’s investments in unconsolidated affiliated companies: | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Investments in equity method companies | $ | 248 | $ | 262 | $ | 256 | |||||||
Plus: Investments in cost method companies | 9 | 10 | 16 | ||||||||||
Total investments in unconsolidated affiliated companies | $ | 257 | $ | 272 | $ | 272 | |||||||
Intangible_assets_and_goodwill1
Intangible assets and goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible assets | Intangible assets are comprised of the following: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Millions of dollars) | Weighted | Gross | Accumulated | Net | |||||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||||||
Customer relationships | 15 | $ | 2,489 | $ | (669 | ) | $ | 1,820 | |||||||||||||||||
Intellectual property | 11 | 1,724 | (578 | ) | 1,146 | ||||||||||||||||||||
Other | 11 | 239 | (129 | ) | 110 | ||||||||||||||||||||
Total finite-lived intangible assets | 14 | $ | 4,452 | $ | (1,376 | ) | $ | 3,076 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||||||
Customer relationships | 15 | $ | 2,653 | $ | (539 | ) | $ | 2,114 | |||||||||||||||||
Intellectual property | 11 | 1,821 | (495 | ) | 1,326 | ||||||||||||||||||||
Other | 10 | 274 | (136 | ) | 138 | ||||||||||||||||||||
Total finite-lived intangible assets | 13 | 4,748 | (1,170 | ) | 3,578 | ||||||||||||||||||||
Indefinite-lived intangible assets - In-process research & development | 18 | — | 18 | ||||||||||||||||||||||
Total intangible assets | $ | 4,766 | $ | (1,170 | ) | $ | 3,596 | ||||||||||||||||||
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 | ||||||||||||||||||
Intangible assets | Intangible assets are comprised of the following: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Millions of dollars) | Weighted | Gross | Accumulated | Net | |||||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||||||
Customer relationships | 15 | $ | 2,489 | $ | (669 | ) | $ | 1,820 | |||||||||||||||||
Intellectual property | 11 | 1,724 | (578 | ) | 1,146 | ||||||||||||||||||||
Other | 11 | 239 | (129 | ) | 110 | ||||||||||||||||||||
Total finite-lived intangible assets | 14 | $ | 4,452 | $ | (1,376 | ) | $ | 3,076 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||||||||||||||
Amortizable | Carrying | Amortization | |||||||||||||||||||||||
Life (Years) | Amount | ||||||||||||||||||||||||
Customer relationships | 15 | $ | 2,653 | $ | (539 | ) | $ | 2,114 | |||||||||||||||||
Intellectual property | 11 | 1,821 | (495 | ) | 1,326 | ||||||||||||||||||||
Other | 10 | 274 | (136 | ) | 138 | ||||||||||||||||||||
Total finite-lived intangible assets | 13 | 4,748 | (1,170 | ) | 3,578 | ||||||||||||||||||||
Indefinite-lived intangible assets - In-process research & development | 18 | — | 18 | ||||||||||||||||||||||
Total intangible assets | $ | 4,766 | $ | (1,170 | ) | $ | 3,596 | ||||||||||||||||||
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 | As of December 31, 2014, amortization expense related to intangible assets is expected to be: | ||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||
$ | 345 | $ | 323 | $ | 322 | $ | 320 | $ | 318 | $ | 1,448 | ||||||||||||||
Goodwill | The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
(Millions of dollars) | December 31, 2013 | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Impairment Loss | Other Adjustments 3 | December 31, 2014 | |||||||||||||||||||
Construction Industries | |||||||||||||||||||||||||
Goodwill | $ | 291 | $ | — | $ | — | $ | — | $ | (16 | ) | $ | 275 | ||||||||||||
Resource Industries | |||||||||||||||||||||||||
Goodwill | 4,468 | — | (15 | ) | — | (166 | ) | 4,287 | |||||||||||||||||
Impairments | (580 | ) | — | — | — | — | (580 | ) | |||||||||||||||||
Net goodwill | 3,888 | — | (15 | ) | — | (166 | ) | 3,707 | |||||||||||||||||
Energy & Transportation | |||||||||||||||||||||||||
Goodwill | 2,600 | 7 | — | — | (65 | ) | 2,542 | ||||||||||||||||||
All Other 4 | |||||||||||||||||||||||||
Goodwill | 199 | — | — | — | (7 | ) | 192 | ||||||||||||||||||
Impairment | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||
Net goodwill | 177 | — | — | — | (7 | ) | 170 | ||||||||||||||||||
Consolidated total | |||||||||||||||||||||||||
Goodwill | 7,558 | 7 | (15 | ) | — | (254 | ) | 7,296 | |||||||||||||||||
Impairments | (602 | ) | — | — | — | — | (602 | ) | |||||||||||||||||
Net goodwill | $ | 6,956 | $ | 7 | $ | (15 | ) | $ | — | $ | (254 | ) | $ | 6,694 | |||||||||||
December 31, 2012 | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Impairment Loss | Other Adjustments 3 | December 31, 2013 | ||||||||||||||||||||
Construction Industries | |||||||||||||||||||||||||
Goodwill | $ | 333 | $ | — | $ | — | $ | — | $ | (42 | ) | $ | 291 | ||||||||||||
Resource Industries | |||||||||||||||||||||||||
Goodwill | 4,511 | — | (55 | ) | — | 12 | 4,468 | ||||||||||||||||||
Impairments | (580 | ) | — | — | — | — | (580 | ) | |||||||||||||||||
Net goodwill | 3,931 | — | (55 | ) | — | 12 | 3,888 | ||||||||||||||||||
Energy & Transportation | |||||||||||||||||||||||||
Goodwill | 2,486 | 106 | (10 | ) | — | 18 | 2,600 | ||||||||||||||||||
All Other 4 | |||||||||||||||||||||||||
Goodwill | 214 | — | — | — | (15 | ) | 199 | ||||||||||||||||||
Impairment | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||
Net goodwill | 192 | — | — | — | (15 | ) | 177 | ||||||||||||||||||
Consolidated total | |||||||||||||||||||||||||
Goodwill | 7,544 | 106 | (65 | ) | — | (27 | ) | 7,558 | |||||||||||||||||
Impairments | (602 | ) | — | — | — | — | (602 | ) | |||||||||||||||||
Net goodwill | $ | 6,942 | $ | 106 | $ | (65 | ) | $ | — | $ | (27 | ) | $ | 6,956 | |||||||||||
December 31, 2011 | Acquisitions 1 | Held for Sale and Business Divestitures 2 | Impairment Loss | Other Adjustments 3 | December 31, 2012 | ||||||||||||||||||||
Construction Industries | |||||||||||||||||||||||||
Goodwill | $ | 331 | $ | 15 | $ | — | $ | — | $ | (13 | ) | $ | 333 | ||||||||||||
Resource Industries | |||||||||||||||||||||||||
Goodwill | 4,073 | 597 | (181 | ) | — | 22 | 4,511 | ||||||||||||||||||
Impairments | — | — | — | (580 | ) | — | (580 | ) | |||||||||||||||||
Net goodwill | 4,073 | 597 | (181 | ) | (580 | ) | 22 | 3,931 | |||||||||||||||||
Energy & Transportation | |||||||||||||||||||||||||
Goodwill | 2,486 | 9 | — | — | (9 | ) | 2,486 | ||||||||||||||||||
All Other 4 | |||||||||||||||||||||||||
Goodwill | 212 | 7 | — | — | (5 | ) | 214 | ||||||||||||||||||
Impairment | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||
Net goodwill | 190 | 7 | — | — | (5 | ) | 192 | ||||||||||||||||||
Consolidated total | |||||||||||||||||||||||||
Goodwill | 7,102 | 628 | (181 | ) | — | (5 | ) | 7,544 | |||||||||||||||||
Impairments | (22 | ) | — | — | (580 | ) | — | (602 | ) | ||||||||||||||||
Net goodwill | $ | 7,080 | $ | 628 | $ | (181 | ) | $ | (580 | ) | $ | (5 | ) | $ | 6,942 | ||||||||||
1 | See Note 24 for additional information. | ||||||||||||||||||||||||
2 | See Note 26 for additional information. | ||||||||||||||||||||||||
3 | Other adjustments are comprised primarily of foreign currency translation. | ||||||||||||||||||||||||
4 | Includes All Other operating segments (See Note 23). | ||||||||||||||||||||||||
Availableforsale_securities_Ta
Available-for-sale securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of available-for-sale securities | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | Cost | Unrealized | Fair | Cost | Unrealized | Fair | Cost | Unrealized | Fair | ||||||||||||||||||||||||||||
Basis | Pretax Net | Value | Basis | Pretax Net | Value | Basis | Pretax Net | Value | |||||||||||||||||||||||||||||
Gains | Gains | Gains | |||||||||||||||||||||||||||||||||||
(Losses) | (Losses) | (Losses) | |||||||||||||||||||||||||||||||||||
Government debt | |||||||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | 10 | $ | — | $ | 10 | $ | 10 | $ | — | $ | 10 | $ | 10 | $ | — | $ | 10 | |||||||||||||||||||
Other U.S. and non-U.S. government bonds | 94 | — | 94 | 119 | 1 | 120 | 144 | 2 | 146 | ||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||
Corporate bonds | 677 | 16 | 693 | 612 | 21 | 633 | 626 | 38 | 664 | ||||||||||||||||||||||||||||
Asset-backed securities | 103 | 2 | 105 | 72 | — | 72 | 96 | — | 96 | ||||||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||||||||||
U.S. governmental agency | 292 | 2 | 294 | 322 | (1 | ) | 321 | 291 | 8 | 299 | |||||||||||||||||||||||||||
Residential | 15 | — | 15 | 18 | — | 18 | 26 | (1 | ) | 25 | |||||||||||||||||||||||||||
Commercial | 63 | 4 | 67 | 87 | 6 | 93 | 117 | 10 | 127 | ||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||
Large capitalization value | 150 | 83 | 233 | 173 | 81 | 254 | 147 | 38 | 185 | ||||||||||||||||||||||||||||
Smaller company growth | 17 | 26 | 43 | 25 | 24 | 49 | 22 | 12 | 34 | ||||||||||||||||||||||||||||
Total | $ | 1,421 | $ | 133 | $ | 1,554 | $ | 1,438 | $ | 132 | $ | 1,570 | $ | 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: | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
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 | $ | 195 | $ | 1 | $ | 32 | $ | — | $ | 227 | $ | 1 | |||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||||||||||
U.S. governmental agency | 34 | — | 140 | 3 | 174 | 3 | |||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||
Large capitalization value | 15 | 2 | 1 | — | 16 | 2 | |||||||||||||||||||||||||||||||
Total | $ | 244 | $ | 3 | $ | 173 | $ | 3 | $ | 417 | $ | 6 | |||||||||||||||||||||||||
1 | Indicates length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | |||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | 159 | $ | 2 | $ | 1 | $ | — | $ | 160 | $ | 2 | |||||||||||||||||||||||||
Asset-backed securities | 6 | — | 20 | 1 | 26 | 1 | |||||||||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||||||||||
U.S. governmental agency | 140 | 4 | 65 | 2 | 205 | 6 | |||||||||||||||||||||||||||||||
Total | $ | 305 | $ | 6 | $ | 86 | $ | 3 | $ | 391 | $ | 9 | |||||||||||||||||||||||||
1 | Indicates length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||
Investments in an unrealized loss position that are not other-than-temporarily impaired: | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Less than 12 months 1 | 12 months or more 1 | Total | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Cost Basis | Fair Value | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 72 | $ | 73 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 744 | 760 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 41 | 42 | |||||||||||||||||||||||||||||||||||
Due after ten years | 27 | 27 | |||||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | 292 | 294 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 15 | 15 | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 63 | 67 | |||||||||||||||||||||||||||||||||||
Total debt securities – available-for-sale | $ | 1,254 | $ | 1,278 | |||||||||||||||||||||||||||||||||
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities | |||||||||||||||||||||||||||||||||||||
Sales of Securities: | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Proceeds from the sale of available-for-sale securities | $ | 434 | $ | 449 | $ | 306 | |||||||||||||||||||||||||||||||
Gross gains from the sale of available-for-sale securities | $ | 38 | $ | 22 | $ | 6 | |||||||||||||||||||||||||||||||
Gross losses from the sale of available-for-sale securities | $ | 2 | $ | 2 | $ | — | |||||||||||||||||||||||||||||||
Postemployment_benefit_plans_T
Postemployment benefit plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of changes in projected benefit obligations | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 14,419 | $ | 15,913 | $ | 14,782 | $ | 4,609 | $ | 4,737 | $ | 4,299 | $ | 4,784 | $ | 5,453 | $ | 5,381 | |||||||||||||||||||
Service cost | 157 | 196 | 185 | 109 | 120 | 108 | 82 | 108 | 92 | ||||||||||||||||||||||||||||
Interest cost | 648 | 581 | 609 | 185 | 166 | 182 | 213 | 195 | 221 | ||||||||||||||||||||||||||||
Plan amendments | — | — | — | — | — | 12 | (1 | ) | 1 | (38 | ) | ||||||||||||||||||||||||||
Actuarial losses (gains) | 1,994 | (1,450 | ) | 1,168 | 604 | (41 | ) | 385 | 196 | (658 | ) | 186 | |||||||||||||||||||||||||
Foreign currency exchange rates | — | — | — | (436 | ) | (81 | ) | 49 | (30 | ) | (19 | ) | (11 | ) | |||||||||||||||||||||||
Participant contributions | — | — | — | 9 | 10 | 9 | 61 | 57 | 48 | ||||||||||||||||||||||||||||
Benefits paid - gross | (963 | ) | (845 | ) | (831 | ) | (206 | ) | (254 | ) | (190 | ) | (377 | ) | (339 | ) | (394 | ) | |||||||||||||||||||
Less: federal subsidy on benefits paid | — | — | — | — | — | — | 14 | 8 | 16 | ||||||||||||||||||||||||||||
Curtailments, settlements and termination benefits | (6 | ) | (7 | ) | — | (53 | ) | (56 | ) | (67 | ) | (4 | ) | — | (48 | ) | |||||||||||||||||||||
Acquisitions, divestitures and other 1 | — | 31 | — | (20 | ) | 8 | (50 | ) | — | (22 | ) | — | |||||||||||||||||||||||||
Benefit obligation, end of year | $ | 16,249 | $ | 14,419 | $ | 15,913 | $ | 4,801 | $ | 4,609 | $ | 4,737 | $ | 4,938 | $ | 4,784 | $ | 5,453 | |||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 15,701 | $ | 14,056 | $ | 15,132 | $ | 4,408 | $ | 4,247 | $ | 4,329 | |||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligation: | |||||||||||||||||||||||||||||||||||||
Discount rate 2 | 3.8 | % | 4.6 | % | 3.7 | % | 3.3 | % | 4.1 | % | 3.7 | % | 3.9 | % | 4.6 | % | 3.7 | % | |||||||||||||||||||
Rate of compensation increase 2 | 4 | % | 4 | % | 4.5 | % | 4 | % | 4.2 | % | 3.9 | % | 4 | % | 4 | % | 4.4 | % | |||||||||||||||||||
1 | In 2013, charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits. See Note 26 regarding the divestiture of the third party logistics business in 2012. | ||||||||||||||||||||||||||||||||||||
2 | End of year rates are used to determine net periodic cost for the subsequent year. See Note 12E. | ||||||||||||||||||||||||||||||||||||
Schedule of assumptions used to determine benefit obligation | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 14,419 | $ | 15,913 | $ | 14,782 | $ | 4,609 | $ | 4,737 | $ | 4,299 | $ | 4,784 | $ | 5,453 | $ | 5,381 | |||||||||||||||||||
Service cost | 157 | 196 | 185 | 109 | 120 | 108 | 82 | 108 | 92 | ||||||||||||||||||||||||||||
Interest cost | 648 | 581 | 609 | 185 | 166 | 182 | 213 | 195 | 221 | ||||||||||||||||||||||||||||
Plan amendments | — | — | — | — | — | 12 | (1 | ) | 1 | (38 | ) | ||||||||||||||||||||||||||
Actuarial losses (gains) | 1,994 | (1,450 | ) | 1,168 | 604 | (41 | ) | 385 | 196 | (658 | ) | 186 | |||||||||||||||||||||||||
Foreign currency exchange rates | — | — | — | (436 | ) | (81 | ) | 49 | (30 | ) | (19 | ) | (11 | ) | |||||||||||||||||||||||
Participant contributions | — | — | — | 9 | 10 | 9 | 61 | 57 | 48 | ||||||||||||||||||||||||||||
Benefits paid - gross | (963 | ) | (845 | ) | (831 | ) | (206 | ) | (254 | ) | (190 | ) | (377 | ) | (339 | ) | (394 | ) | |||||||||||||||||||
Less: federal subsidy on benefits paid | — | — | — | — | — | — | 14 | 8 | 16 | ||||||||||||||||||||||||||||
Curtailments, settlements and termination benefits | (6 | ) | (7 | ) | — | (53 | ) | (56 | ) | (67 | ) | (4 | ) | — | (48 | ) | |||||||||||||||||||||
Acquisitions, divestitures and other 1 | — | 31 | — | (20 | ) | 8 | (50 | ) | — | (22 | ) | — | |||||||||||||||||||||||||
Benefit obligation, end of year | $ | 16,249 | $ | 14,419 | $ | 15,913 | $ | 4,801 | $ | 4,609 | $ | 4,737 | $ | 4,938 | $ | 4,784 | $ | 5,453 | |||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 15,701 | $ | 14,056 | $ | 15,132 | $ | 4,408 | $ | 4,247 | $ | 4,329 | |||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligation: | |||||||||||||||||||||||||||||||||||||
Discount rate 2 | 3.8 | % | 4.6 | % | 3.7 | % | 3.3 | % | 4.1 | % | 3.7 | % | 3.9 | % | 4.6 | % | 3.7 | % | |||||||||||||||||||
Rate of compensation increase 2 | 4 | % | 4 | % | 4.5 | % | 4 | % | 4.2 | % | 3.9 | % | 4 | % | 4 | % | 4.4 | % | |||||||||||||||||||
1 | In 2013, charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits. See Note 26 regarding the divestiture of the third party logistics business in 2012. | ||||||||||||||||||||||||||||||||||||
2 | End of year rates are used to determine net periodic cost for the subsequent year. See Note 12E. | ||||||||||||||||||||||||||||||||||||
Effects of one-percentage point change in the assumed health care cost trend rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | One-percentage- | One-percentage- | |||||||||||||||||||||||||||||||||||
point increase | point decrease | ||||||||||||||||||||||||||||||||||||
Effect on 2014 service and interest cost components of other postretirement benefit cost | $ | 24 | $ | (20 | ) | ||||||||||||||||||||||||||||||||
Effect on accumulated postretirement benefit obligation | $ | 298 | $ | (245 | ) | ||||||||||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 12,395 | $ | 10,981 | $ | 9,997 | $ | 3,949 | $ | 3,426 | $ | 2,818 | $ | 822 | $ | 789 | $ | 814 | |||||||||||||||||||
Actual return on plan assets | 849 | 1,722 | 1,235 | 507 | 535 | 368 | 75 | 158 | 117 | ||||||||||||||||||||||||||||
Foreign currency exchange rates | — | — | — | (352 | ) | (41 | ) | 47 | — | — | — | ||||||||||||||||||||||||||
Company contributions | 255 | 541 | 580 | 265 | 303 | 446 | 195 | 157 | 204 | ||||||||||||||||||||||||||||
Participant contributions | — | — | — | 9 | 10 | 9 | 61 | 57 | 48 | ||||||||||||||||||||||||||||
Benefits paid | (963 | ) | (845 | ) | (831 | ) | (206 | ) | (254 | ) | (190 | ) | (377 | ) | (339 | ) | (394 | ) | |||||||||||||||||||
Settlements and termination benefits | (6 | ) | (4 | ) | — | (50 | ) | (30 | ) | (72 | ) | — | — | — | |||||||||||||||||||||||
Acquisitions, divestitures and other | — | — | — | (22 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 12,530 | $ | 12,395 | $ | 10,981 | $ | 4,100 | $ | 3,949 | $ | 3,426 | $ | 776 | $ | 822 | $ | 789 | |||||||||||||||||||
Fair value of pension and other postretirement benefit plan assets, by category | The fair value of the pension and other postretirement benefit plan assets by category is summarized below: | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 3,713 | $ | 1 | $ | 161 | $ | 3,875 | |||||||||||||||||||||||||||||
Non-U.S. equities | 2,291 | 12 | 1 | 2,304 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 3,985 | 25 | 4,010 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 552 | — | 552 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 528 | — | 528 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 752 | 2 | 754 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 62 | 2 | 64 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 9 | 9 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 37 | 397 | — | 434 | |||||||||||||||||||||||||||||||||
Total U.S. pension assets | $ | 6,041 | $ | 6,289 | $ | 200 | $ | 12,530 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 4,337 | $ | — | $ | 129 | $ | 4,466 | |||||||||||||||||||||||||||||
Non-U.S. equities | 3,058 | — | — | 3,058 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 2,123 | 34 | 2,157 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 327 | 20 | 347 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 774 | — | 774 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 905 | — | 905 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 52 | — | 52 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 8 | 8 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 22 | 606 | — | 628 | |||||||||||||||||||||||||||||||||
Total U.S. pension assets | $ | 7,417 | $ | 4,787 | $ | 191 | $ | 12,395 | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 4,460 | $ | 3 | $ | 98 | $ | 4,561 | |||||||||||||||||||||||||||||
Non-U.S. equities | 2,691 | 2 | — | 2,693 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 1,490 | 23 | 1,513 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 231 | 10 | 241 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 694 | 8 | 702 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 794 | 1 | 795 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 33 | 3 | 36 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 8 | 8 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 13 | 419 | — | 432 | |||||||||||||||||||||||||||||||||
Total U.S. pension assets | $ | 7,164 | $ | 3,666 | $ | 151 | $ | 10,981 | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 552 | $ | — | $ | — | $ | 552 | |||||||||||||||||||||||||||||
Non-U.S. equities | 794 | 250 | — | 1,044 | |||||||||||||||||||||||||||||||||
Global equities 1 | 218 | 52 | — | 270 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 81 | 9 | 90 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 503 | 2 | 505 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 836 | — | 836 | |||||||||||||||||||||||||||||||||
Global fixed income 1 | — | 363 | — | 363 | |||||||||||||||||||||||||||||||||
Real estate | — | 182 | 48 | 230 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other 2 | 159 | 50 | — | 209 | |||||||||||||||||||||||||||||||||
Total non-U.S. pension assets | $ | 1,723 | $ | 2,318 | $ | 59 | $ | 4,100 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 607 | $ | 1 | $ | — | $ | 608 | |||||||||||||||||||||||||||||
Non-U.S. equities | 1,022 | 160 | — | 1,182 | |||||||||||||||||||||||||||||||||
Global equities 1 | 235 | 54 | — | 289 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 84 | 9 | 93 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 534 | 12 | 546 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 418 | — | 418 | |||||||||||||||||||||||||||||||||
Global fixed income 1 | — | 397 | — | 397 | |||||||||||||||||||||||||||||||||
Real estate | — | 136 | 111 | 247 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other 2 | 141 | 25 | — | 166 | |||||||||||||||||||||||||||||||||
Total non-U.S. pension assets | $ | 2,005 | $ | 1,812 | $ | 132 | $ | 3,949 | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 436 | $ | 2 | $ | — | $ | 438 | |||||||||||||||||||||||||||||
Non-U.S. equities | 1,038 | 118 | — | 1,156 | |||||||||||||||||||||||||||||||||
Global equities 1 | 244 | 27 | — | 271 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 37 | 3 | 40 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 494 | 2 | 496 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 169 | — | 169 | |||||||||||||||||||||||||||||||||
Global fixed income 1 | — | 403 | — | 403 | |||||||||||||||||||||||||||||||||
Real estate | — | 114 | 104 | 218 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other 2 | 185 | 47 | — | 232 | |||||||||||||||||||||||||||||||||
Total non-U.S. pension assets | $ | 1,903 | $ | 1,414 | $ | 109 | $ | 3,426 | |||||||||||||||||||||||||||||
1 | Includes funds that invest in both U.S. and non-U.S. securities. | ||||||||||||||||||||||||||||||||||||
2 | Includes funds that invest in multiple asset classes, hedge funds and other. | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 392 | $ | — | $ | — | $ | 392 | |||||||||||||||||||||||||||||
Non-U.S. equities | 158 | 1 | — | 159 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 103 | — | 103 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 17 | — | 17 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 30 | — | 30 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 50 | — | 50 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 9 | 13 | — | 22 | |||||||||||||||||||||||||||||||||
Total other postretirement benefit assets | $ | 559 | $ | 217 | $ | — | $ | 776 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 388 | $ | — | $ | — | $ | 388 | |||||||||||||||||||||||||||||
Non-U.S. equities | 189 | — | — | 189 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 101 | — | 101 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 17 | — | 17 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 23 | — | 23 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 49 | — | 49 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 8 | 45 | — | 53 | |||||||||||||||||||||||||||||||||
Total other postretirement benefit assets | $ | 585 | $ | 237 | $ | — | $ | 822 | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | Total Assets, | |||||||||||||||||||||||||||||||||
at Fair Value | |||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
U.S. equities | $ | 387 | $ | — | $ | — | $ | 387 | |||||||||||||||||||||||||||||
Non-U.S. equities | 194 | — | — | 194 | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
U.S. corporate bonds | — | 70 | — | 70 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | 11 | — | 11 | |||||||||||||||||||||||||||||||||
U.S. government bonds | — | 27 | — | 27 | |||||||||||||||||||||||||||||||||
U.S. governmental agency mortgage-backed securities | — | 33 | — | 33 | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||
Cash, short-term instruments and other | 18 | 47 | — | 65 | |||||||||||||||||||||||||||||||||
Total other postretirement benefit assets | $ | 599 | $ | 190 | $ | — | $ | 789 | |||||||||||||||||||||||||||||
Roll forward of assets measured at fair value using level 3 inputs | Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2014, 2013 and 2012. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Equities | Fixed Income | Real Estate | Other | |||||||||||||||||||||||||||||||||
U.S. Pension | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 77 | $ | 51 | $ | 8 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | (4 | ) | — | — | (1 | ) | |||||||||||||||||||||||||||||||
Realized gains (losses) | 4 | 2 | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | 21 | (4 | ) | — | 1 | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (4 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 98 | $ | 45 | $ | 8 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | 10 | (1 | ) | — | — | ||||||||||||||||||||||||||||||||
Realized gains (losses) | 4 | — | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | 17 | 12 | — | — | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (2 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 129 | $ | 54 | $ | 8 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | 1 | — | 1 | — | |||||||||||||||||||||||||||||||||
Realized gains (losses) | 19 | 3 | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | 13 | (23 | ) | — | — | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (5 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 162 | $ | 29 | $ | 9 | $ | — | |||||||||||||||||||||||||||||
Non-U.S. Pension | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | 9 | $ | 97 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | — | — | 8 | — | |||||||||||||||||||||||||||||||||
Realized gains (losses) | — | — | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | — | (1 | ) | (1 | ) | — | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (3 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 5 | $ | 104 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | — | — | 7 | — | |||||||||||||||||||||||||||||||||
Realized gains (losses) | — | — | — | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | — | 16 | — | — | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 21 | $ | 111 | $ | — | |||||||||||||||||||||||||||||
Unrealized gains (losses) | — | (1 | ) | (23 | ) | — | |||||||||||||||||||||||||||||||
Realized gains (losses) | — | — | 22 | — | |||||||||||||||||||||||||||||||||
Purchases, issuances and settlements, net | — | (1 | ) | (62 | ) | — | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | (8 | ) | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | — | $ | 11 | $ | 48 | $ | — | |||||||||||||||||||||||||||||
Common stock of Caterpillar Inc. included in Equity Securities within plan assets | Equity securities within plan assets include Caterpillar Inc. common stock in the amounts of: | ||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits 1 | Non-U.S. Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Caterpillar Inc. common stock | $ | — | $ | 495 | $ | 597 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||||||
1 | Amounts represent 4 percent and 5 percent of total plan assets for 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||
Defined benefit plan funded status, components of net amount recognized in financial position and accumulated other comprehensive income | The funded status of the plans, reconciled to the amount reported on Statement 3, is as follows: | ||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
End of Year | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 12,530 | $ | 12,395 | $ | 10,981 | $ | 4,100 | $ | 3,949 | $ | 3,426 | $ | 776 | $ | 822 | $ | 789 | |||||||||||||||||||
Benefit obligations | 16,249 | 14,419 | 15,913 | 4,801 | 4,609 | 4,737 | 4,938 | 4,784 | 5,453 | ||||||||||||||||||||||||||||
Over (under) funded status recognized in financial position | $ | (3,719 | ) | $ | (2,024 | ) | $ | (4,932 | ) | $ | (701 | ) | $ | (660 | ) | $ | (1,311 | ) | $ | (4,162 | ) | $ | (3,962 | ) | $ | (4,664 | ) | ||||||||||
Components of net amount recognized in financial position: | |||||||||||||||||||||||||||||||||||||
Other assets (non-current asset) | $ | 3 | $ | 5 | $ | — | $ | 144 | $ | 123 | $ | 30 | $ | — | $ | — | $ | — | |||||||||||||||||||
Accrued wages, salaries and employee benefits (current liability) | (28 | ) | (26 | ) | (23 | ) | (24 | ) | (29 | ) | (27 | ) | (160 | ) | (169 | ) | (169 | ) | |||||||||||||||||||
Liability for postemployment benefits (non-current liability) | (3,694 | ) | (2,003 | ) | (4,909 | ) | (821 | ) | (754 | ) | (1,314 | ) | (4,002 | ) | (3,793 | ) | (4,495 | ) | |||||||||||||||||||
Net liability recognized | $ | (3,719 | ) | $ | (2,024 | ) | $ | (4,932 | ) | $ | (701 | ) | $ | (660 | ) | $ | (1,311 | ) | $ | (4,162 | ) | $ | (3,962 | ) | $ | (4,664 | ) | ||||||||||
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: | |||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 6,034 | $ | 4,396 | $ | 7,286 | $ | 1,494 | $ | 1,373 | $ | 1,907 | $ | 800 | $ | 662 | $ | 1,528 | |||||||||||||||||||
Prior service cost (credit) | 2 | 19 | 36 | 9 | 13 | 22 | (31 | ) | (84 | ) | (159 | ) | |||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | — | — | — | — | 3 | ||||||||||||||||||||||||||||
Total | $ | 6,036 | $ | 4,415 | $ | 7,322 | $ | 1,503 | $ | 1,386 | $ | 1,929 | $ | 769 | $ | 578 | $ | 1,372 | |||||||||||||||||||
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost (pre-tax) in the next fiscal year | The estimated amounts that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2014 into net periodic benefit cost (pre-tax) in 2015 are as follows: | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | U.S. | Non-U.S. | Other | ||||||||||||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 507 | $ | 101 | $ | 53 | |||||||||||||||||||||||||||||||
Prior service cost (credit) | 1 | — | (55 | ) | |||||||||||||||||||||||||||||||||
Total | $ | 508 | $ | 101 | $ | (2 | ) | ||||||||||||||||||||||||||||||
Schedule of pension plans with projected benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits | The following amounts relate to our pension plans with projected benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits at Year-end | Non-U.S. Pension Benefits at Year-end | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 16,182 | $ | 14,352 | $ | 15,913 | $ | 4,539 | $ | 4,177 | $ | 4,310 | |||||||||||||||||||||||||
Accumulated benefit obligation | $ | 15,634 | $ | 13,989 | $ | 15,132 | $ | 4,148 | $ | 3,820 | $ | 3,903 | |||||||||||||||||||||||||
Fair value of plan assets | $ | 12,460 | $ | 12,323 | $ | 10,981 | $ | 3,695 | $ | 3,394 | $ | 2,969 | |||||||||||||||||||||||||
Schedule of pension plans with accumulated benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits | The following amounts relate to our pension plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits at Year-end | Non-U.S. Pension Benefits at Year-end | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 16,182 | $ | 14,352 | $ | 15,913 | $ | 1,879 | $ | 1,436 | $ | 4,107 | |||||||||||||||||||||||||
Accumulated benefit obligation | $ | 15,634 | $ | 13,989 | $ | 15,132 | $ | 1,734 | $ | 1,374 | $ | 3,752 | |||||||||||||||||||||||||
Fair value of plan assets | $ | 12,460 | $ | 12,323 | $ | 10,981 | $ | 1,068 | $ | 797 | $ | 2,806 | |||||||||||||||||||||||||
Information about the expected cash flow for the pension and other postretirement benefit plans | Information about the expected cash flow for the pension and other postretirement benefit plans is as follows: | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | U.S. | Non-U.S. | Other | ||||||||||||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Employer contributions: | |||||||||||||||||||||||||||||||||||||
2015 (expected) | $ | 30 | $ | 160 | $ | 200 | |||||||||||||||||||||||||||||||
Expected benefit payments: | |||||||||||||||||||||||||||||||||||||
2015 | $ | 890 | $ | 220 | $ | 320 | |||||||||||||||||||||||||||||||
2016 | 910 | 200 | 320 | ||||||||||||||||||||||||||||||||||
2017 | 920 | 190 | 320 | ||||||||||||||||||||||||||||||||||
2018 | 930 | 190 | 330 | ||||||||||||||||||||||||||||||||||
2019 | 940 | 200 | 330 | ||||||||||||||||||||||||||||||||||
2020-2024 | 4,790 | 1,140 | 1,630 | ||||||||||||||||||||||||||||||||||
Total | $ | 9,380 | $ | 2,140 | $ | 3,250 | |||||||||||||||||||||||||||||||
Expected Medicare Part D subsidy receipts | Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments are as follows: | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | Total | ||||||||||||||||||||||||||||||
Other postretirement benefits | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 20 | $ | 95 | $ | 175 | |||||||||||||||||||||||
Components of net periodic benefit cost, other changes in plan assets and benefits obligations recognized in other comprehensive income and weighted-average assumptions used to determine net cost | |||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 157 | $ | 196 | $ | 185 | $ | 109 | $ | 120 | $ | 108 | $ | 82 | $ | 108 | $ | 92 | |||||||||||||||||||
Interest cost | 648 | 581 | 609 | 185 | 166 | 182 | 213 | 195 | 221 | ||||||||||||||||||||||||||||
Expected return on plan assets 1 | (885 | ) | (832 | ) | (812 | ) | (258 | ) | (225 | ) | (215 | ) | (52 | ) | (56 | ) | (63 | ) | |||||||||||||||||||
Other adjustments 2 | — | 31 | — | — | — | — | — | (22 | ) | — | |||||||||||||||||||||||||||
Curtailments, settlements and termination benefits 3 | — | — | 7 | 14 | 2 | 38 | (2 | ) | — | (40 | ) | ||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||||
Transition obligation (asset) | — | — | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||||
Prior service cost (credit) 4 | 17 | 18 | 19 | — | 1 | 1 | (55 | ) | (73 | ) | (68 | ) | |||||||||||||||||||||||||
Net actuarial loss (gain) 5 | 392 | 546 | 504 | 86 | 128 | 97 | 41 | 107 | 100 | ||||||||||||||||||||||||||||
Total cost included in operating profit | $ | 329 | $ | 540 | $ | 512 | $ | 136 | $ | 192 | $ | 211 | $ | 227 | $ | 261 | $ | 244 | |||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): | |||||||||||||||||||||||||||||||||||||
Current year actuarial loss (gain) | $ | 2,030 | $ | (2,344 | ) | $ | 745 | $ | 207 | $ | (406 | ) | $ | 225 | $ | 179 | $ | (759 | ) | $ | 133 | ||||||||||||||||
Amortization of actuarial (loss) gain | (392 | ) | (546 | ) | (504 | ) | (86 | ) | (128 | ) | (97 | ) | (41 | ) | (107 | ) | (100 | ) | |||||||||||||||||||
Current year prior service cost (credit) | — | — | (7 | ) | (4 | ) | (7 | ) | 10 | (2 | ) | 2 | (38 | ) | |||||||||||||||||||||||
Amortization of prior service (cost) credit | (17 | ) | (18 | ) | (19 | ) | — | (1 | ) | (1 | ) | 55 | 73 | 68 | |||||||||||||||||||||||
Amortization of transition (obligation) asset | — | — | — | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||||||||
Total recognized in other comprehensive income | 1,621 | (2,908 | ) | 215 | 117 | (542 | ) | 137 | 191 | (793 | ) | 61 | |||||||||||||||||||||||||
Total recognized in net periodic cost and other comprehensive income | $ | 1,950 | $ | (2,368 | ) | $ | 727 | $ | 253 | $ | (350 | ) | $ | 348 | $ | 418 | $ | (532 | ) | $ | 305 | ||||||||||||||||
Weighted-average assumptions used to determine net cost: | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.6 | % | 3.7 | % | 4.3 | % | 4.1 | % | 3.7 | % | 4.3 | % | 4.6 | % | 3.7 | % | 4.3 | % | |||||||||||||||||||
Expected rate of return on plan assets 6 | 7.8 | % | 7.8 | % | 8 | % | 6.9 | % | 6.8 | % | 7.1 | % | 7.8 | % | 7.8 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 4 | % | 4.5 | % | 4.5 | % | 4.2 | % | 3.9 | % | 3.9 | % | 4 | % | 4.4 | % | 4.4 | % | |||||||||||||||||||
1 | Expected return on plan assets developed using calculated market-related value of plan assets which recognizes differences in expected and actual returns over a three-year period. | ||||||||||||||||||||||||||||||||||||
2 | Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits. | ||||||||||||||||||||||||||||||||||||
3 | Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in Statement 1. | ||||||||||||||||||||||||||||||||||||
4 | Prior service cost (credit) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period of active 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) are amortized using the straight-line method over the remaining life expectancy of those participants. | ||||||||||||||||||||||||||||||||||||
5 | Net actuarial loss (gain) for pension and other postretirement benefit plans are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For plans in which all or almost all of the plan’s participants are inactive, net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of the inactive participants. | ||||||||||||||||||||||||||||||||||||
6 | The weighted-average rates for 2015 are 7.4 percent and 6.8 percent for U.S. and non-U.S. pension plans, respectively. | ||||||||||||||||||||||||||||||||||||
Company costs related to U.S. and non-U.S. defined contribution plans | Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: | ||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
U.S. plans | $ | 301 | $ | 308 | $ | 260 | |||||||||||||||||||||||||||||||
Non-U.S. plans | 85 | 64 | 60 | ||||||||||||||||||||||||||||||||||
$ | 386 | $ | 372 | $ | 320 | ||||||||||||||||||||||||||||||||
Summary of long-term liability for postemployment benefit plans | |||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Pensions: | |||||||||||||||||||||||||||||||||||||
U.S. pensions | $ | 3,694 | $ | 2,003 | $ | 4,909 | |||||||||||||||||||||||||||||||
Non-U.S. pensions | 821 | 754 | 1,314 | ||||||||||||||||||||||||||||||||||
Total pensions | 4,515 | 2,757 | 6,223 | ||||||||||||||||||||||||||||||||||
Postretirement benefits other than pensions | 4,002 | 3,793 | 4,495 | ||||||||||||||||||||||||||||||||||
Other postemployment benefits | 112 | 99 | 81 | ||||||||||||||||||||||||||||||||||
Defined contribution | 334 | 324 | 286 | ||||||||||||||||||||||||||||||||||
$ | 8,963 | $ | 6,973 | $ | 11,085 | ||||||||||||||||||||||||||||||||
Shortterm_borrowings_Tables
Short-term borrowings (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Short-term Borrowings Disclosure [Abstract] | |||||||||||||
Short-term borrowings | |||||||||||||
December 31, | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Machinery, Energy & Transportation: | |||||||||||||
Notes payable to banks | $ | 9 | $ | 16 | $ | 484 | |||||||
Notes payable to certain former shareholders of Siwei | — | — | 152 | ||||||||||
Commercial paper | — | — | — | ||||||||||
9 | 16 | 636 | |||||||||||
Financial Products: | |||||||||||||
Notes payable to banks | 411 | 545 | 418 | ||||||||||
Commercial paper | 3,688 | 2,502 | 3,654 | ||||||||||
Demand notes | 600 | 616 | 579 | ||||||||||
4,699 | 3,663 | 4,651 | |||||||||||
Total short-term borrowings | $ | 4,708 | $ | 3,679 | $ | 5,287 | |||||||
The weighted-average interest rates on short-term borrowings outstanding were: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Notes payable to banks | 6.8 | % | 6.3 | % | 5.8 | % | |||||||
Commercial paper | 0.3 | % | 0.5 | % | 0.6 | % | |||||||
Demand notes | 0.8 | % | 0.8 | % | 0.8 | % | |||||||
Longterm_debt_Tables
Long-term debt (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Long-term debt | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Machinery, Energy & Transportation: | |||||||||||||||||||||
Notes—1.375% due 2014 | $ | — | $ | — | $ | 750 | |||||||||||||||
Notes—5.700% due 2016 | 504 | 506 | 508 | ||||||||||||||||||
Notes—3.900% due 2021 | 1,246 | 1,246 | 1,245 | ||||||||||||||||||
Notes—5.200% due 2041 | 757 | 757 | 757 | ||||||||||||||||||
Debentures—0.950% due 2015 | — | 500 | 500 | ||||||||||||||||||
Debentures—1.500% due 2017 | 500 | 500 | 499 | ||||||||||||||||||
Debentures—7.900% due 2018 | 899 | 899 | 899 | ||||||||||||||||||
Debentures—9.375% due 2021 | 120 | 120 | 120 | ||||||||||||||||||
Debentures—2.600% due 2022 | 498 | 498 | 498 | ||||||||||||||||||
Debentures—8.000% due 2023 | 82 | 82 | 82 | ||||||||||||||||||
Debentures—3.400% due 2024 | 1,000 | — | — | ||||||||||||||||||
Debentures—6.625% due 2028 | 193 | 193 | 193 | ||||||||||||||||||
Debentures—7.300% due 2031 | 241 | 241 | 241 | ||||||||||||||||||
Debentures—5.300% due 20351 | 211 | 209 | 208 | ||||||||||||||||||
Debentures—6.050% due 2036 | 459 | 459 | 459 | ||||||||||||||||||
Debentures—8.250% due 2038 | 65 | 65 | 65 | ||||||||||||||||||
Debentures—6.950% due 2042 | 160 | 160 | 160 | ||||||||||||||||||
Debentures—3.803% due 20422 | 1,188 | 1,168 | 1,149 | ||||||||||||||||||
Debentures—4.300% due 2044 | 497 | — | — | ||||||||||||||||||
Debentures—4.750% due 2064 | 498 | — | — | ||||||||||||||||||
Debentures—7.375% due 2097 | 244 | 244 | 244 | ||||||||||||||||||
Capital lease obligations | 85 | 97 | 73 | ||||||||||||||||||
Other | 46 | 55 | 16 | ||||||||||||||||||
Total Machinery, Energy & Transportation | 9,493 | 7,999 | 8,666 | ||||||||||||||||||
Financial Products: | |||||||||||||||||||||
Commercial paper | — | — | — | ||||||||||||||||||
Medium-term notes | 17,295 | 17,856 | 18,036 | ||||||||||||||||||
Other | 996 | 864 | 1,050 | ||||||||||||||||||
Total Financial Products | 18,291 | 18,720 | 19,086 | ||||||||||||||||||
Total long-term debt due after one year | $ | 27,784 | $ | 26,719 | $ | 27,752 | |||||||||||||||
1 | Debentures due in 2035 have a face value of $307 million and an effective yield to maturity of 8.55%. | ||||||||||||||||||||
2 | Debentures due in 2042 have a face value of $1,722 million and an effective yield to maturity of 6.33%. | ||||||||||||||||||||
Aggregate amounts of maturities of long-term debt | The aggregate amounts of maturities of long-term debt during each of the years 2015 through 2019, including amounts due within one year and classified as current, are: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
(Millions of dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Machinery, Energy & Transportation | $ | 510 | $ | 543 | $ | 509 | $ | 906 | $ | 7 | |||||||||||
Financial Products | 6,283 | 5,507 | 5,487 | 2,411 | 2,381 | ||||||||||||||||
$ | 6,793 | $ | 6,050 | $ | 5,996 | $ | 3,317 | $ | 2,388 | ||||||||||||
Credit_commitments_Tables
Credit commitments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Credit Commitments [Abstract] | |||||||||||||
Credit commitments | |||||||||||||
December 31, 2014 | |||||||||||||
(Millions of dollars) | Consolidated | Machinery, | Financial | ||||||||||
Energy & | Products | ||||||||||||
Transportation | |||||||||||||
Credit lines available: | |||||||||||||
Global credit facilities | $ | 10,500 | $ | 2,750 | $ | 7,750 | |||||||
Other external | 4,254 | 195 | 4,059 | ||||||||||
Total credit lines available | 14,754 | 2,945 | 11,809 | ||||||||||
Less: Commercial paper outstanding | (3,688 | ) | — | (3,688 | ) | ||||||||
Less: Utilized credit | (1,904 | ) | (9 | ) | (1,895 | ) | |||||||
Available credit | $ | 9,162 | $ | 2,936 | $ | 6,226 | |||||||
Profit_per_share_Tables
Profit per share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computations of Profit Per Share | |||||||||||||
Computations of profit per share: | |||||||||||||
(Dollars in millions except per share data) | 2014 | 2013 | 2012 | ||||||||||
Profit for the period (A) 1 | $ | 3,695 | $ | 3,789 | $ | 5,681 | |||||||
Determination of shares (in millions): | |||||||||||||
Weighted average number of common shares outstanding (B) | 617.2 | 645.2 | 652.6 | ||||||||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price | 11.7 | 13.4 | 17 | ||||||||||
Average common shares outstanding for fully diluted computation (C) 2 | 628.9 | 658.6 | 669.6 | ||||||||||
Profit per share of common stock: | |||||||||||||
Assuming no dilution (A/B) | $ | 5.99 | $ | 5.87 | $ | 8.71 | |||||||
Assuming full dilution (A/C) 2 | $ | 5.88 | $ | 5.75 | $ | 8.48 | |||||||
Shares outstanding as of December 31 (in millions) | 606.2 | 637.8 | 655 | ||||||||||
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) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Schedule of Accumulated other comprehensive income (loss) | Changes in Accumulated other comprehensive income (loss), net of tax, included in Statement 4, 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 December 31, 2011 | $ | 206 | $ | (6,568 | ) | $ | (10 | ) | $ | 44 | $ | (6,328 | ) | ||||||||
Balance at December 31, 2012 1 | $ | 456 | $ | (6,914 | ) | $ | (42 | ) | $ | 67 | $ | (6,433 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (280 | ) | 2,280 | (4 | ) | 29 | 2,025 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 482 | 41 | (13 | ) | 510 | |||||||||||||||
Other comprehensive income (loss) | (280 | ) | 2,762 | 37 | 16 | 2,535 | |||||||||||||||
Balance at December 31, 2013 | $ | 176 | $ | (4,152 | ) | $ | (5 | ) | $ | 83 | $ | (3,898 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (1,164 | ) | (1,574 | ) | (118 | ) | 24 | (2,832 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive (income) loss | — | 319 | 4 | (24 | ) | 299 | |||||||||||||||
Other comprehensive income (loss) | (1,164 | ) | (1,255 | ) | (114 | ) | — | (2,533 | ) | ||||||||||||
Balance at December 31, 2014 | $ | (988 | ) | $ | (5,407 | ) | $ | (119 | ) | $ | 83 | $ | (6,431 | ) | |||||||
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. | |||||||||||||||||||||
Reclassification out of Accumulated other comprehensive income (loss) | The effect of the reclassifications out of Accumulated other comprehensive income (loss) on Statement 1 is as follows: | ||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
(Millions of dollars) | Classification of income (expense) | 2014 | 2013 | ||||||||||||||||||
Pension and other postretirement benefits: | |||||||||||||||||||||
Amortization of actuarial gain (loss) | Note 12 1 | $ | (519 | ) | $ | (781 | ) | ||||||||||||||
Amortization of prior service credit (cost) | Note 12 1 | 38 | 54 | ||||||||||||||||||
Amortization of transition asset (obligation) | Note 12 1 | — | (2 | ) | |||||||||||||||||
Reclassifications before tax | (481 | ) | (729 | ) | |||||||||||||||||
Tax (provision) benefit | 162 | 247 | |||||||||||||||||||
Reclassifications net of tax | $ | (319 | ) | $ | (482 | ) | |||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||
Foreign exchange contracts | Other income (expense) | $ | 5 | $ | (57 | ) | |||||||||||||||
Interest rate contracts | Interest expense excluding Financial Products | (5 | ) | — | |||||||||||||||||
Interest rate contracts | Other income (expense) | — | (3 | ) | |||||||||||||||||
Interest rate contracts | Interest expense of Financial Products | (6 | ) | (6 | ) | ||||||||||||||||
Reclassifications before tax | (6 | ) | (66 | ) | |||||||||||||||||
Tax (provision) benefit | 2 | 25 | |||||||||||||||||||
Reclassifications net of tax | $ | (4 | ) | $ | (41 | ) | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Realized gain (loss) on sale of securities | Other income (expense) | $ | 35 | $ | 19 | ||||||||||||||||
Tax (provision) benefit | (11 | ) | (6 | ) | |||||||||||||||||
Reclassifications net of tax | $ | 24 | $ | 13 | |||||||||||||||||
Total reclassifications from Accumulated other comprehensive income (loss) | $ | (299 | ) | $ | (510 | ) | |||||||||||||||
1 Amounts are included in the calculation of net periodic benefit cost. See Note 12 for additional information. | |||||||||||||||||||||
Fair_value_disclosures_Tables
Fair value disclosures (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
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 Statement 3 as of December 31, 2014, 2013 and 2012 are summarized below: | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Millions of dollars) | 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 | — | 94 | — | 94 | |||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Corporate bonds | — | 693 | — | 693 | |||||||||||||||||||||||||
Asset-backed securities | — | 105 | — | 105 | |||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||
U.S. governmental agency | — | 294 | — | 294 | |||||||||||||||||||||||||
Residential | — | 15 | — | 15 | |||||||||||||||||||||||||
Commercial | — | 67 | — | 67 | |||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Large capitalization value | 233 | — | — | 233 | |||||||||||||||||||||||||
Smaller company growth | 43 | — | — | 43 | |||||||||||||||||||||||||
Total available-for-sale securities | 286 | 1,268 | — | 1,554 | |||||||||||||||||||||||||
Total Assets | $ | 286 | $ | 1,268 | $ | — | $ | 1,554 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative financial instruments, net | $ | — | $ | 86 | $ | — | $ | 86 | |||||||||||||||||||||
Guarantees | — | — | 12 | 12 | |||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 86 | $ | 12 | $ | 98 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(Millions of dollars) | 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 | — | 120 | — | 120 | |||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Corporate bonds | — | 633 | — | 633 | |||||||||||||||||||||||||
Asset-backed securities | — | 72 | — | 72 | |||||||||||||||||||||||||
Mortgage-backed debt securities | |||||||||||||||||||||||||||||
U.S. governmental agency | — | 321 | — | 321 | |||||||||||||||||||||||||
Residential | — | 18 | — | 18 | |||||||||||||||||||||||||
Commercial | — | 93 | — | 93 | |||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Large capitalization value | 254 | — | — | 254 | |||||||||||||||||||||||||
Smaller company growth | 49 | — | — | 49 | |||||||||||||||||||||||||
Total available-for-sale securities | 313 | 1,257 | — | 1,570 | |||||||||||||||||||||||||
Derivative financial instruments, net | — | 161 | — | 161 | |||||||||||||||||||||||||
Total Assets | $ | 313 | $ | 1,418 | $ | — | $ | 1,731 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||
Total Liabilities | $ | — | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(Millions of dollars) | 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-forwards 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 years ended December 31, 2014, 2013 and 2012. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions of a market participant. | ||||||||||||||||||||||||||||
(Millions of dollars) | Guarantees | ||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 7 | |||||||||||||||||||||||||||
Acquisitions | 6 | ||||||||||||||||||||||||||||
Issuance of guarantees | 7 | ||||||||||||||||||||||||||||
Expiration of guarantees | (6 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 14 | |||||||||||||||||||||||||||
Issuance of guarantees | 6 | ||||||||||||||||||||||||||||
Expiration of guarantees | (7 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 13 | |||||||||||||||||||||||||||
Issuance of guarantees | 1 | ||||||||||||||||||||||||||||
Expiration of guarantees | (2 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 12 | |||||||||||||||||||||||||||
Fair values of financial instruments | Please refer to the table below for the fair values of our financial instruments. | ||||||||||||||||||||||||||||
TABLE III—Fair Values of Financial Instruments | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Millions of dollars) | Carrying | Fair | Carrying | Fair | Carrying | Fair | Fair Value Levels | Reference | |||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | ||||||||||||||||||||||||
Assets at December 31, | |||||||||||||||||||||||||||||
Cash and short-term investments | $ | 7,341 | $ | 7,341 | $ | 6,081 | $ | 6,081 | $ | 5,490 | $ | 5,490 | 1 | Statement 3 | |||||||||||||||
Restricted cash and short-term investments | 62 | 62 | 53 | 53 | 53 | 53 | 1 | Statement 3 | |||||||||||||||||||||
Available-for-sale securities | 1,554 | 1,554 | 1,570 | 1,570 | 1,586 | 1,586 | 1 & 2 | Notes 11 & 19 | |||||||||||||||||||||
Finance receivables–net (excluding finance leases 1) | 16,426 | 16,159 | 16,049 | 15,913 | 15,404 | 15,359 | 3 | Notes 6 & 19 | |||||||||||||||||||||
Wholesale inventory receivables–net (excluding finance leases 1) | 1,774 | 1,700 | 1,529 | 1,467 | 1,674 | 1,609 | 3 | Notes 6 & 19 | |||||||||||||||||||||
Foreign currency contracts–net | — | — | 45 | 45 | — | — | 2 | Notes 3 & 19 | |||||||||||||||||||||
Interest rate swaps–net | 71 | 71 | 116 | 116 | 219 | 219 | 2 | Notes 3 & 19 | |||||||||||||||||||||
Commodity contracts–net | — | — | — | — | 1 | 1 | 2 | Notes 3 & 19 | |||||||||||||||||||||
Liabilities at December 31, | |||||||||||||||||||||||||||||
Short-term borrowings | 4,708 | 4,708 | 3,679 | 3,679 | 5,287 | 5,287 | 1 | Note 13 | |||||||||||||||||||||
Long-term debt (including amounts due within one year): | |||||||||||||||||||||||||||||
Machinery, Energy & Transportation | 10,003 | 11,973 | 8,759 | 9,905 | 9,779 | 11,969 | 2 | Note 14 | |||||||||||||||||||||
Financial Products | 24,574 | 25,103 | 25,312 | 25,849 | 25,077 | 26,063 | 2 | Note 14 | |||||||||||||||||||||
Foreign currency contracts–net | 143 | 143 | — | — | 66 | 66 | 2 | Notes 3 & 19 | |||||||||||||||||||||
Commodity contracts–net | 14 | 14 | — | — | — | — | 2 | Notes 3 & 19 | |||||||||||||||||||||
Guarantees | 12 | 12 | 13 | 13 | 14 | 14 | 3 | Note 21 | |||||||||||||||||||||
1 | Total excluded items have a net carrying value at December 31, 2014, 2013 and 2012 of $7,638 million, $8,053 million and $7,959 million, respectively. | ||||||||||||||||||||||||||||
Operating_leases_Tables
Operating leases (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||
Minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year | Minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year are: | ||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||
$ | 229 | $ | 174 | $ | 125 | $ | 92 | $ | 65 | $ | 189 | $ | 874 | ||||||||||||||
Guarantees_and_product_warrant1
Guarantees and product warranty (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 at December 31 are as follows: | ||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Caterpillar dealer guarantees | $ | 209 | $ | 193 | $ | 180 | |||||||
Customer guarantees | 49 | 62 | 77 | ||||||||||
Customer guarantees - supplier consortium | 321 | 364 | — | ||||||||||
Third party logistics business guarantees | 129 | 151 | 176 | ||||||||||
Other guarantees | 32 | 35 | 53 | ||||||||||
Total guarantees | $ | 740 | $ | 805 | $ | 486 | |||||||
Product warranty | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Warranty liability, January 1 | $ | 1,367 | $ | 1,477 | $ | 1,308 | |||||||
Reduction in liability (payments) | (1,071 | ) | (938 | ) | (920 | ) | |||||||
Increase in liability (new warranties) | 1,130 | 1 | 828 | 1,089 | |||||||||
Warranty liability, December 31 | $ | 1,426 | $ | 1,367 | $ | 1,477 | |||||||
1 The increase in liability includes approximately $170 million for changes in estimates for pre-existing warranties due to higher than expected actual warranty claim experience. | |||||||||||||
Segment_information_Tables
Segment information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Reportable Segments | |||||||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Construction Industries | $ | 19,362 | $ | 250 | $ | 19,612 | $ | 522 | $ | 2,207 | $ | 6,596 | $ | 369 | |||||||||||||||
Resource Industries | 8,921 | 585 | 9,506 | 691 | 501 | 9,568 | 277 | ||||||||||||||||||||||
Energy & Transportation | 21,727 | 2,248 | 23,975 | 646 | 4,038 | 8,399 | 608 | ||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 50,010 | $ | 3,083 | $ | 53,093 | $ | 1,859 | $ | 6,746 | $ | 24,563 | $ | 1,254 | |||||||||||||||
Financial Products Segment | 3,313 | — | 3,313 | 885 | 901 | 37,011 | 1,634 | ||||||||||||||||||||||
Total | $ | 53,323 | $ | 3,083 | $ | 56,406 | $ | 2,744 | $ | 7,647 | $ | 61,574 | $ | 2,888 | |||||||||||||||
2013 | |||||||||||||||||||||||||||||
Construction Industries | $ | 18,532 | $ | 330 | $ | 18,862 | $ | 493 | $ | 1,374 | $ | 7,607 | $ | 551 | |||||||||||||||
Resource Industries | 11,805 | 465 | 12,270 | 698 | 1,586 | 10,389 | 499 | ||||||||||||||||||||||
Energy & Transportation | 20,155 | 1,895 | 22,050 | 642 | 3,401 | 8,492 | 677 | ||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 50,492 | $ | 2,690 | $ | 53,182 | $ | 1,833 | $ | 6,361 | $ | 26,488 | $ | 1,727 | |||||||||||||||
Financial Products Segment | 3,224 | — | 3,224 | 789 | 990 | 36,980 | 1,806 | ||||||||||||||||||||||
Total | $ | 53,716 | $ | 2,690 | $ | 56,406 | $ | 2,622 | $ | 7,351 | $ | 63,468 | $ | 3,533 | |||||||||||||||
2012 | |||||||||||||||||||||||||||||
Construction Industries | $ | 19,451 | $ | 470 | $ | 19,921 | $ | 459 | $ | 1,846 | $ | 9,624 | $ | 984 | |||||||||||||||
Resource Industries | 19,715 | 726 | 20,441 | 649 | 4,285 | 12,466 | 1,078 | ||||||||||||||||||||||
Energy & Transportation | 21,122 | 2,407 | 23,529 | 604 | 3,422 | 9,323 | 960 | ||||||||||||||||||||||
Machinery, Energy & Transportation | $ | 60,288 | $ | 3,603 | $ | 63,891 | $ | 1,712 | $ | 9,553 | $ | 31,413 | $ | 3,022 | |||||||||||||||
Financial Products Segment | 3,090 | — | 3,090 | 708 | 763 | 36,563 | 1,660 | ||||||||||||||||||||||
Total | $ | 63,378 | $ | 3,603 | $ | 66,981 | $ | 2,420 | $ | 10,316 | $ | 67,976 | $ | 4,682 | |||||||||||||||
Reconciliation of Sales and revenues: | |||||||||||||||||||||||||||||
Reconciliation of Sales and Revenues: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidating | Consolidated | |||||||||||||||||||||||||
Energy & | Products | Adjustments | Total | ||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 50,010 | $ | 3,313 | $ | — | $ | 53,323 | |||||||||||||||||||||
All Other operating segments | 2,251 | — | — | 2,251 | |||||||||||||||||||||||||
Other | (119 | ) | 73 | (344 | ) | 1 | (390 | ) | |||||||||||||||||||||
Total sales and revenues | $ | 52,142 | $ | 3,386 | $ | (344 | ) | $ | 55,184 | ||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 50,492 | $ | 3,224 | $ | — | $ | 53,716 | |||||||||||||||||||||
All Other operating segments | 2,263 | — | — | 2,263 | |||||||||||||||||||||||||
Other | (61 | ) | 78 | (340 | ) | 1 | (323 | ) | |||||||||||||||||||||
Total sales and revenues | $ | 52,694 | $ | 3,302 | $ | (340 | ) | $ | 55,656 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total external sales and revenues from reportable segments | $ | 60,288 | $ | 3,090 | $ | — | $ | 63,378 | |||||||||||||||||||||
All Other operating segments | 2,827 | — | — | 2,827 | |||||||||||||||||||||||||
Other | (47 | ) | 70 | (353 | ) | 1 | (330 | ) | |||||||||||||||||||||
Total sales and revenues | $ | 63,068 | $ | 3,160 | $ | (353 | ) | $ | 65,875 | ||||||||||||||||||||
1 | Elimination of Financial Products revenues from Machinery, Energy & Transportation. | ||||||||||||||||||||||||||||
Reconciliation of Consolidated profit before taxes: | |||||||||||||||||||||||||||||
Reconciliation of consolidated profit before taxes: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidated | ||||||||||||||||||||||||||
Energy & | Products | Total | |||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 6,746 | $ | 901 | $ | 7,647 | |||||||||||||||||||||||
All Other operating segments | 850 | — | 850 | ||||||||||||||||||||||||||
Cost centers | 38 | — | 38 | ||||||||||||||||||||||||||
Corporate costs | (1,584 | ) | — | (1,584 | ) | ||||||||||||||||||||||||
Timing | (244 | ) | — | (244 | ) | ||||||||||||||||||||||||
Restructuring costs | (441 | ) | — | (441 | ) | ||||||||||||||||||||||||
Methodology differences: | |||||||||||||||||||||||||||||
Inventory/cost of sales | 55 | — | 55 | ||||||||||||||||||||||||||
Postretirement benefit expense | (411 | ) | — | (411 | ) | ||||||||||||||||||||||||
Financing costs | (502 | ) | — | (502 | ) | ||||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (8 | ) | — | (8 | ) | ||||||||||||||||||||||||
Currency | (52 | ) | — | (52 | ) | ||||||||||||||||||||||||
Other income/expense methodology differences | (249 | ) | — | (249 | ) | ||||||||||||||||||||||||
Other methodology differences | (24 | ) | 8 | (16 | ) | ||||||||||||||||||||||||
Total consolidated profit before taxes | $ | 4,174 | $ | 909 | $ | 5,083 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 6,361 | $ | 990 | $ | 7,351 | |||||||||||||||||||||||
All Other operating segments | 736 | — | 736 | ||||||||||||||||||||||||||
Cost centers | 119 | — | 119 | ||||||||||||||||||||||||||
Corporate costs | (1,368 | ) | — | (1,368 | ) | ||||||||||||||||||||||||
Timing | 116 | — | 116 | ||||||||||||||||||||||||||
Restructuring costs | (200 | ) | — | (200 | ) | ||||||||||||||||||||||||
Methodology differences: | |||||||||||||||||||||||||||||
Inventory/cost of sales | (112 | ) | — | (112 | ) | ||||||||||||||||||||||||
Postretirement benefit expense | (685 | ) | — | (685 | ) | ||||||||||||||||||||||||
Financing costs | (469 | ) | — | (469 | ) | ||||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | 6 | — | 6 | ||||||||||||||||||||||||||
Currency | (110 | ) | — | (110 | ) | ||||||||||||||||||||||||
Other income/expense methodology differences | (238 | ) | — | (238 | ) | ||||||||||||||||||||||||
Other methodology differences | (48 | ) | 30 | (18 | ) | ||||||||||||||||||||||||
Total consolidated profit before taxes | $ | 4,108 | $ | 1,020 | $ | 5,128 | |||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total profit from reportable segments | $ | 9,553 | $ | 763 | $ | 10,316 | |||||||||||||||||||||||
All Other operating segments | 994 | — | 994 | ||||||||||||||||||||||||||
Cost centers | 11 | — | 11 | ||||||||||||||||||||||||||
Corporate costs | (1,502 | ) | — | (1,502 | ) | ||||||||||||||||||||||||
Timing | (298 | ) | — | (298 | ) | ||||||||||||||||||||||||
Methodology differences: | |||||||||||||||||||||||||||||
Inventory/cost of sales | 43 | — | 43 | ||||||||||||||||||||||||||
Postretirement benefit expense | (696 | ) | — | (696 | ) | ||||||||||||||||||||||||
Financing costs | (474 | ) | — | (474 | ) | ||||||||||||||||||||||||
Equity in (profit) loss of unconsolidated affiliated companies | (14 | ) | — | (14 | ) | ||||||||||||||||||||||||
Currency | 108 | — | 108 | ||||||||||||||||||||||||||
Other income/expense methodology differences | (249 | ) | — | (249 | ) | ||||||||||||||||||||||||
Other methodology differences | (20 | ) | 17 | (3 | ) | ||||||||||||||||||||||||
Total consolidated profit before taxes | $ | 7,456 | $ | 780 | $ | 8,236 | |||||||||||||||||||||||
Reconciliation of Restructuring Costs: | As noted above, restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. Had we included the amounts in the segments' results, the profit would have been as shown below: | ||||||||||||||||||||||||||||
Reconciliation of Restructuring costs: | |||||||||||||||||||||||||||||
(Millions of dollars) | Segment | Restructuring costs | Segment profit with | ||||||||||||||||||||||||||
profit | restructuring costs | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Construction Industries | $ | 2,207 | $ | (293 | ) | $ | 1,914 | ||||||||||||||||||||||
Resource Industries | 501 | (72 | ) | 429 | |||||||||||||||||||||||||
Energy & Transportation | 4,038 | (31 | ) | 4,007 | |||||||||||||||||||||||||
Financial Products Segment | 901 | — | 901 | ||||||||||||||||||||||||||
All Other operating segments | 850 | (36 | ) | 814 | |||||||||||||||||||||||||
Total | $ | 8,497 | $ | (432 | ) | $ | 8,065 | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Construction Industries | $ | 1,374 | $ | (33 | ) | $ | 1,341 | ||||||||||||||||||||||
Resource Industries | 1,586 | (105 | ) | 1,481 | |||||||||||||||||||||||||
Energy & Transportation | 3,401 | (32 | ) | 3,369 | |||||||||||||||||||||||||
Financial Products Segment | 990 | — | 990 | ||||||||||||||||||||||||||
All Other operating segments | 736 | (27 | ) | 709 | |||||||||||||||||||||||||
Total | $ | 8,087 | $ | (197 | ) | $ | 7,890 | ||||||||||||||||||||||
Reconciliation of Assets: | |||||||||||||||||||||||||||||
Reconciliation of Assets: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidating | Consolidated | |||||||||||||||||||||||||
Energy & | Products | Adjustments | Total | ||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 24,563 | $ | 37,011 | $ | — | $ | 61,574 | |||||||||||||||||||||
All Other operating segments | 2,810 | — | — | 2,810 | |||||||||||||||||||||||||
Items not included in segment assets: | |||||||||||||||||||||||||||||
Cash and short-term investments | 6,317 | — | — | 6,317 | |||||||||||||||||||||||||
Intercompany receivables | 1,185 | — | (1,185 | ) | — | ||||||||||||||||||||||||
Investment in Financial Products | 4,488 | — | (4,488 | ) | — | ||||||||||||||||||||||||
Deferred income taxes | 3,627 | — | (674 | ) | 2,953 | ||||||||||||||||||||||||
Goodwill and intangible assets | 3,492 | — | — | 3,492 | |||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 1,174 | — | — | 1,174 | |||||||||||||||||||||||||
Operating lease methodology difference | (213 | ) | — | — | (213 | ) | |||||||||||||||||||||||
Liabilities included in segment assets | 9,837 | — | — | 9,837 | |||||||||||||||||||||||||
Inventory methodology differences | (2,697 | ) | — | — | (2,697 | ) | |||||||||||||||||||||||
Other | (395 | ) | (102 | ) | (69 | ) | (566 | ) | |||||||||||||||||||||
Total assets | $ | 54,188 | $ | 36,909 | $ | (6,416 | ) | $ | 84,681 | ||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 26,488 | $ | 36,980 | $ | — | $ | 63,468 | |||||||||||||||||||||
All Other operating segments | 2,973 | — | — | 2,973 | |||||||||||||||||||||||||
Items not included in segment assets: | |||||||||||||||||||||||||||||
Cash and short-term investments | 4,597 | — | — | 4,597 | |||||||||||||||||||||||||
Intercompany receivables | 1,219 | — | (1,219 | ) | — | ||||||||||||||||||||||||
Investment in Financial Products | 4,798 | — | (4,798 | ) | — | ||||||||||||||||||||||||
Deferred income taxes | 2,541 | — | (525 | ) | 2,016 | ||||||||||||||||||||||||
Goodwill and intangible assets | 3,582 | — | — | 3,582 | |||||||||||||||||||||||||
Property, plant and equipment – net and other assets | 1,175 | — | — | 1,175 | |||||||||||||||||||||||||
Operating lease methodology difference | (273 | ) | — | — | (273 | ) | |||||||||||||||||||||||
Liabilities included in segment assets | 10,357 | — | — | 10,357 | |||||||||||||||||||||||||
Inventory methodology differences | (2,539 | ) | — | — | (2,539 | ) | |||||||||||||||||||||||
Other | (214 | ) | (135 | ) | (111 | ) | (460 | ) | |||||||||||||||||||||
Total assets | $ | 54,704 | $ | 36,845 | $ | (6,653 | ) | $ | 84,896 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total assets from reportable segments | $ | 31,413 | $ | 36,563 | $ | — | $ | 67,976 | |||||||||||||||||||||
All Other operating segments | 3,179 | — | — | 3,179 | |||||||||||||||||||||||||
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 | 723 | — | — | 723 | |||||||||||||||||||||||||
Operating lease methodology difference | (305 | ) | — | — | (305 | ) | |||||||||||||||||||||||
Liabilities included in segment assets | 10,900 | — | — | 10,900 | |||||||||||||||||||||||||
Inventory methodology differences | (2,949 | ) | — | — | (2,949 | ) | |||||||||||||||||||||||
Other | (176 | ) | (107 | ) | (132 | ) | (415 | ) | |||||||||||||||||||||
Total assets | $ | 57,898 | $ | 36,456 | $ | (5,384 | ) | $ | 88,970 | ||||||||||||||||||||
Reconciliation of Depreciation and amortization: | |||||||||||||||||||||||||||||
Reconciliation of Depreciation and amortization: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidated | ||||||||||||||||||||||||||
Energy & | Products | Total | |||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,859 | $ | 885 | $ | 2,744 | |||||||||||||||||||||||
Items not included in segment depreciation and amortization: | |||||||||||||||||||||||||||||
All Other operating segments | 279 | — | 279 | ||||||||||||||||||||||||||
Cost centers | 150 | — | 150 | ||||||||||||||||||||||||||
Other | (35 | ) | 25 | (10 | ) | ||||||||||||||||||||||||
Total depreciation and amortization | $ | 2,253 | $ | 910 | $ | 3,163 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,833 | $ | 789 | $ | 2,622 | |||||||||||||||||||||||
Items not included in segment depreciation and amortization: | |||||||||||||||||||||||||||||
All Other operating segments | 305 | — | 305 | ||||||||||||||||||||||||||
Cost centers | 151 | — | 151 | ||||||||||||||||||||||||||
Other | (16 | ) | 25 | 9 | |||||||||||||||||||||||||
Total depreciation and amortization | $ | 2,273 | $ | 814 | $ | 3,087 | |||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total depreciation and amortization from reportable segments | $ | 1,712 | $ | 708 | $ | 2,420 | |||||||||||||||||||||||
Items not included in segment depreciation and amortization: | |||||||||||||||||||||||||||||
All Other operating segments | 313 | — | 313 | ||||||||||||||||||||||||||
Cost centers | 96 | — | 96 | ||||||||||||||||||||||||||
Other | (39 | ) | 23 | (16 | ) | ||||||||||||||||||||||||
Total depreciation and amortization | $ | 2,082 | $ | 731 | $ | 2,813 | |||||||||||||||||||||||
Reconciliation of Capital expenditures: | |||||||||||||||||||||||||||||
Reconciliation of Capital expenditures: | |||||||||||||||||||||||||||||
(Millions of dollars) | Machinery, | Financial | Consolidating | Consolidated | |||||||||||||||||||||||||
Energy & | Products | Adjustments | Total | ||||||||||||||||||||||||||
Transportation | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,254 | $ | 1,634 | $ | — | $ | 2,888 | |||||||||||||||||||||
Items not included in segment capital expenditures: | |||||||||||||||||||||||||||||
All Other operating segments | 331 | — | — | 331 | |||||||||||||||||||||||||
Cost centers | 181 | — | — | 181 | |||||||||||||||||||||||||
Timing | 21 | — | — | 21 | |||||||||||||||||||||||||
Other | (146 | ) | 183 | (79 | ) | (42 | ) | ||||||||||||||||||||||
Total capital expenditures | $ | 1,641 | $ | 1,817 | $ | (79 | ) | $ | 3,379 | ||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 1,727 | $ | 1,806 | $ | — | $ | 3,533 | |||||||||||||||||||||
Items not included in segment capital expenditures: | |||||||||||||||||||||||||||||
All Other operating segments | 452 | — | — | 452 | |||||||||||||||||||||||||
Cost centers | 191 | — | — | 191 | |||||||||||||||||||||||||
Timing | 363 | — | — | 363 | |||||||||||||||||||||||||
Other | (128 | ) | 105 | (70 | ) | (93 | ) | ||||||||||||||||||||||
Total capital expenditures | $ | 2,605 | $ | 1,911 | $ | (70 | ) | $ | 4,446 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Total capital expenditures from reportable segments | $ | 3,022 | $ | 1,660 | $ | — | $ | 4,682 | |||||||||||||||||||||
Items not included in segment capital expenditures: | |||||||||||||||||||||||||||||
All Other operating segments | 459 | — | — | 459 | |||||||||||||||||||||||||
Cost centers | 201 | — | — | 201 | |||||||||||||||||||||||||
Timing | (71 | ) | — | — | (71 | ) | |||||||||||||||||||||||
Other | (176 | ) | 136 | (155 | ) | (195 | ) | ||||||||||||||||||||||
Total capital expenditures | $ | 3,435 | $ | 1,796 | $ | (155 | ) | $ | 5,076 | ||||||||||||||||||||
Information about Geographic Areas | Information about Geographic Areas: | ||||||||||||||||||||||||||||
Property, plant and equipment - net | |||||||||||||||||||||||||||||
External sales and revenues 1 | December 31, | ||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Inside United States | $ | 21,122 | $ | 18,579 | $ | 20,239 | $ | 8,714 | $ | 8,723 | $ | 8,559 | |||||||||||||||||
Outside United States | 34,062 | 37,077 | 45,636 | 2 | 7,863 | 8,352 | 7,902 | ||||||||||||||||||||||
Total | $ | 55,184 | $ | 55,656 | $ | 65,875 | $ | 16,577 | $ | 17,075 | $ | 16,461 | |||||||||||||||||
1 | Sales of Machinery, Energy & Transportation are based on dealer or customer location. Revenues from services provided are based on where service is rendered. | ||||||||||||||||||||||||||||
2 | The only country with greater than 10 percent of external sales and revenues for any of the periods presented, other than the United States, is Australia with $6,822 million as of December 31, 2012. | ||||||||||||||||||||||||||||
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Restructuring Charges [Abstract] | ||||
Summary of separation activity | The following table summarizes the 2012, 2013 and 2014 employee 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) | 151 | |||
Reduction in liability (payments and other adjustments) | (91 | ) | ||
Liability balance at December 31, 2013 | $ | 89 | ||
Increase in liability (separation charges) | 382 | |||
Reduction in liability (payments and other adjustments) | (289 | ) | ||
Liability balance at December 31, 2014 | $ | 182 | ||
Selected_quarterly_financial_r1
Selected quarterly financial results (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected quarterly financial results | |||||||||||||||||
2014 Quarter | |||||||||||||||||
(Dollars in millions except per share data) | 1st | 2nd | 3rd | 4th | |||||||||||||
Sales and revenues | $ | 13,241 | $ | 14,150 | $ | 13,549 | $ | 14,244 | |||||||||
Less: Revenues | (748 | ) | (759 | ) | (791 | ) | (744 | ) | |||||||||
Sales | 12,493 | 13,391 | 12,758 | 13,500 | |||||||||||||
Cost of goods sold | 9,437 | 10,197 | 9,634 | 10,499 | |||||||||||||
Gross margin | 3,056 | 3,194 | 3,124 | 3,001 | |||||||||||||
Profit 1 | $ | 922 | $ | 999 | $ | 1,017 | $ | 757 | |||||||||
Profit per common share | $ | 1.47 | $ | 1.6 | $ | 1.66 | $ | 1.25 | |||||||||
Profit per common share–diluted 2 | $ | 1.44 | $ | 1.57 | $ | 1.63 | $ | 1.23 | |||||||||
2013 Quarter | |||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Sales and revenues | $ | 13,210 | $ | 14,621 | $ | 13,423 | $ | 14,402 | |||||||||
Less: Revenues | (726 | ) | (735 | ) | (745 | ) | (756 | ) | |||||||||
Sales | 12,484 | 13,886 | 12,678 | 13,646 | |||||||||||||
Cost of goods sold | 9,639 | 10,773 | 9,774 | 10,541 | |||||||||||||
Gross margin | 2,845 | 3,113 | 2,904 | 3,105 | |||||||||||||
Profit 1 | $ | 880 | $ | 960 | $ | 946 | $ | 1,003 | |||||||||
Profit per common share | $ | 1.34 | $ | 1.48 | $ | 1.48 | $ | 1.57 | |||||||||
Profit per common share–diluted 2 | $ | 1.31 | $ | 1.45 | $ | 1.45 | $ | 1.54 | |||||||||
1 | Profit attributable to common stockholders. | ||||||||||||||||
2 | Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. | ||||||||||||||||
As previously disclosed, in connection with the preparation of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, we concluded that certain non-cash transactions should be excluded from both changes in Receivables-trade and other and Accounts payable when preparing our Consolidated Statement of Cash Flow. Accordingly, we prepared our Consolidated Statement of Cash Flow for the six and nine months ended June 30, 2014 and September 30, 2014 on that basis, and we revised our Consolidated Statement of Cash Flow for the comparative periods in 2013. We subsequently concluded that our prior policy of including those transactions in the changes in Receivables-trade and other and Accounts payable is acceptable. Accordingly, we prepared our Consolidated Statement of Cash Flow for the year ended December 31, 2014 using our prior policy. We will revise our Consolidated Statement of Cash Flow to increase Receivables-trade and other and decrease Accounts payable for $113 million and $149 million for the six and nine months ended June 30, 2014 and September 30, 2014, respectively, the next time they are filed. The revisions will not impact net cash provided by operating activities. | |||||||||||||||||
Operations_and_summary_of_sign3
Operations and summary of significant accounting policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
countries | |||
dealer_rental_outlets | |||
places_of_business | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Ownership percentage of investments in companies below which the entity must exercise significant influence in order to be accounted for under the equity method | 20.00% | ||
Standard invoice terms, maximum extension period (in years) | 1 year | 1 year | 1 year |
Standard invoice terms, amount of extension allowed to receivables | $624 | $706 | $354 |
Percentage of consolidated sales representing extension to standard invoice terms not more than one year | 1.00% | 1.00% | 1.00% |
Period after which collection of future income is considered as not probable (in days) | 120 days | ||
Percentage of value of inventories on the LIFO basis to total inventories | 60.00% | 60.00% | 60.00% |
Incremental value of inventory if FIFO method had been in use | 2,430 | 2,504 | 2,750 |
Depreciation on equipment leased to others | 872 | 768 | 688 |
Consolidated depreciation expense | $2,795 | $2,710 | $2,421 |
Operations and Summary of Significant Accounting Policies | |||
Number of countries served by dealers | 182 | ||
Number of dealer places of business | 3,580 | ||
Number of dealer rental outlets | 1,267 | ||
Maximum amortizable period of purchased intangibles (in years) | 14 years | 13 years | 13 years |
Maximum | |||
Operations and Summary of Significant Accounting Policies | |||
Maximum amortizable period of purchased intangibles (in years) | 20 years | ||
Minimum | |||
Operations and Summary of Significant Accounting Policies | |||
Ownership percentage of investments in companies accounted for under the equity method (as a percent) | 20.00% | ||
Inside United States | |||
Operations and Summary of Significant Accounting Policies | |||
Number of dealers | 48 | ||
Outside the United States | |||
Operations and Summary of Significant Accounting Policies | |||
Number of dealers | 129 | ||
Perkins | |||
Operations and Summary of Significant Accounting Policies | |||
Number of distributors | 103 | ||
Number of countries where distributors are located | 182 | ||
Caterpillar Northern Ireland Ltd (F.G. Wilson) | |||
Operations and Summary of Significant Accounting Policies | |||
Number of distributors | 264 | ||
Number of countries where distributors are located | 145 | ||
MaK | |||
Operations and Summary of Significant Accounting Policies | |||
Number of distributors | 19 | ||
Number of countries where distributors are located | 130 |
Operations_and_summary_of_sign4
Operations and summary of significant accounting policies (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Variable Interest Entity [Line Items] | |||
Receivables - trade and other | $7,737 | $8,413 | $9,706 |
Receivables - finance | 9,027 | 8,763 | 8,860 |
Long-term receivables - finance | 14,644 | 14,926 | 14,029 |
Investments in unconsolidated affiliated companies | 257 | 272 | 272 |
Guarantees | 740 | 805 | 486 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Receivables - trade and other | 36 | 21 | 23 |
Receivables - finance | 216 | 185 | 122 |
Long-term receivables - finance | 285 | 334 | 353 |
Investments in unconsolidated affiliated companies | 83 | 89 | 93 |
Guarantees | 129 | 151 | 176 |
Total | $749 | $780 | $767 |
Stockbased_compensation_Detail
Stock-based compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Common shares issued from treasury stock for stock-based compensation (in shares) | 10,106,542 | 6,258,692 | 7,515,149 |
Vesting period of 2014, 2013 and 2012 awards, after the date of grant (in years) | 3 years | ||
Required minimum age of a participant upon separation from service to meet the criteria for Long Service Separation (in years) | 55 years | ||
Minimum term of service to meet criteria for Long Service Separation (in years) | 5 years | ||
Term life of SARs and option awards (in years) | 10 years | ||
Term life of vested options/SARs from separation date (in years) | 5 years | ||
Requisite service period (in months) | 6 months | ||
Assumptions used in determining the fair value of the stock-based awards | |||
Weighted-average dividend yield (as a percent) | 2.20% | 2.10% | 2.20% |
Weighted-average volatility (as a percent) | 28.20% | 30.60% | 35.00% |
Volatilities, low end of range (as a percent) | 18.40% | 23.40% | 33.30% |
Volatilities, high end of range (as a percent) | 36.20% | 40.60% | 40.40% |
Risk-free interest rates, low end of range (as a percent) | 0.12% | 0.16% | 0.17% |
Risk-free interest rates, high end of range (as a percent) | 2.60% | 1.88% | 2.00% |
Weighted-average expected lives (in years) | 8 years | 8 years | 7 years |
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars) | $193 | ||
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years) | 1 year 9 months | ||
Stock options/SARs activity | |||
Outstanding at beginning of year (in shares) | 43,375,747 | 45,827,599 | 50,372,991 |
Granted to officers and key employees (in shares) | 4,448,218 | 4,276,060 | 3,318,188 |
Exercised (in shares) | -13,026,311 | -6,476,082 | -7,708,343 |
Forfeited / expired (in shares) | -216,571 | -251,830 | -155,237 |
Outstanding at end of year (in shares) | 34,581,083 | 43,375,747 | 45,827,599 |
Number of stock awards exercisable at end of the period (in shares) | 23,991,377 | 34,200,054 | 33,962,000 |
Restricted stock units activity | |||
Outstanding at beginning of year (in shares) | 3,823,328 | 3,580,220 | 4,281,490 |
Granted to officers and key employees (in shares) | 1,429,512 | 1,614,870 | 1,429,939 |
Vested (in shares) | -1,081,304 | -1,286,934 | -2,077,485 |
Forfeited (in shares) | -87,400 | -84,828 | -53,724 |
Outstanding at end of year (in shares) | 4,084,136 | 3,823,328 | 3,580,220 |
Weighted- Average Exercise Price for stock options and stock appreciation rights | |||
Outstanding at beginning of year (in dollars per share) | $65.03 | $59.45 | $53.01 |
Granted to officers and key employees (in dollars per share) | $96.31 | $89.75 | $110.09 |
Exercised (in dollars per share) | $50.27 | $41.10 | $38.73 |
Forfeited / expired (in dollars per share) | $85.93 | $84.64 | $67.50 |
Outstanding at end of year (in dollars per share) | $74.48 | $65.03 | $59.45 |
Exercisable at year-end (in dollars per share) | $64.46 | $55.93 | $51.75 |
SARs Granted to officers and key employees (in shares) | 0 | 0 | 0 |
Stockbased_compensation_Detail1
Stock-based compensation (Details 2) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock options and Stock appreciation rights outstanding | ||||
Weighted Average Exercise Price (in dollars per share) | $74.48 | $65.03 | $59.45 | $53.01 |
Stock options and Stock appreciation rights exercisable | ||||
Number of stock awards exercisable at end of the period (in shares) | 23,991,377 | 34,200,054 | 33,962,000 | |
Weighted-Average Exercise Price of Stock awards exercisable (in dollars per share) | $64.46 | $55.93 | $51.75 | |
Additional Stock-based Award Information under Stock Option and Stock Appreciation Rights | ||||
Weighted-average fair value per share of stock awards granted (in dollars per share) | $29.52 | $28.34 | $39.20 | |
Intrinsic value of stock awards exercised | $649 | $312 | $488 | |
Fair value of stock awards vested | 108 | 167 | 66 | |
Cash received from stock awards exercised | 259 | 152 | 112 | |
Additional Stock-based Award Information under Restricted Stock Units Activity | ||||
Weighted average fair value per share of stock awards granted (in dollars per share) | $89.18 | $84.05 | $104.61 | |
Fair value of stock awards vested | 106 | 117 | 229 | |
Weighted average remaining contractual life (in years) | 1 year 2 months | |||
Stock-based compensation expense, before tax (in dollars) | 254 | 231 | 245 | |
Income tax benefit corresponding to stock-based compensation expense | 79 | 73 | 78 | |
Cash tax benefits realized from stock awards exercised | 253 | 127 | 217 | |
Tax benefit recordable in APIC on reduction of future income taxes payable | 26 | |||
Stock options and stock appreciation rights outstanding | ||||
Stock options and Stock appreciation rights outstanding | ||||
Stock option and stock appreciation rights outstanding at the end of the year (in shares) | 34,581,083 | |||
Weighted Average Exercise Price (in dollars per share) | $74.48 | |||
Aggregate Intrinsic Value outstanding | 721 | |||
Stock options and stock appreciation rights exercisable | ||||
Stock options and Stock appreciation rights exercisable | ||||
Number of stock awards exercisable at end of the period (in shares) | 23,991,377 | |||
Weighted-Average Exercise Price of Stock awards exercisable (in dollars per share) | $64.46 | |||
Aggregate Intrinsic Value of Stock awards exercisable | 710 | |||
Exercise Price Range 22.17 To 45.64 | Minimum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $22.17 | |||
Exercise Price Range 22.17 To 45.64 | Maximum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $45.64 | |||
Exercise Price Range 22.17 To 45.64 | Stock options and stock appreciation rights outstanding | ||||
Stock options and Stock appreciation rights outstanding | ||||
Stock option and stock appreciation rights outstanding at the end of the year (in shares) | 4,740,246 | |||
Weighted Average Remaining Contractual Life outstanding (in Years) | 3 years 0 months 5 days | |||
Weighted Average Exercise Price (in dollars per share) | $28.93 | |||
Aggregate Intrinsic Value outstanding | 301 | |||
Exercise Price Range 22.17 To 45.64 | Stock options and stock appreciation rights exercisable | ||||
Stock options and Stock appreciation rights exercisable | ||||
Number of stock awards exercisable at end of the period (in shares) | 4,740,246 | |||
Weighted-Average Remaining Contractual Life of Stock awards exercisable (in years) | 3 years 5 days | |||
Weighted-Average Exercise Price of Stock awards exercisable (in dollars per share) | $28.93 | |||
Aggregate Intrinsic Value of Stock awards exercisable | 301 | |||
Exercise Price Range 57.85 To 63.04 | Minimum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $57.85 | |||
Exercise Price Range 57.85 To 63.04 | Maximum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $63.04 | |||
Exercise Price Range 57.85 To 63.04 | Stock options and stock appreciation rights outstanding | ||||
Stock options and Stock appreciation rights outstanding | ||||
Stock option and stock appreciation rights outstanding at the end of the year (in shares) | 7,634,038 | |||
Weighted Average Remaining Contractual Life outstanding (in Years) | 4 years 3 months 22 days | |||
Weighted Average Exercise Price (in dollars per share) | $59.33 | |||
Aggregate Intrinsic Value outstanding | 253 | |||
Exercise Price Range 57.85 To 63.04 | Stock options and stock appreciation rights exercisable | ||||
Stock options and Stock appreciation rights exercisable | ||||
Number of stock awards exercisable at end of the period (in shares) | 7,634,038 | |||
Weighted-Average Remaining Contractual Life of Stock awards exercisable (in years) | 4 years 3 months 22 days | |||
Weighted-Average Exercise Price of Stock awards exercisable (in dollars per share) | $59.33 | |||
Aggregate Intrinsic Value of Stock awards exercisable | 253 | |||
Exercise Price Range 66.77 To 73.20 | Minimum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $66.77 | |||
Exercise Price Range 66.77 To 73.20 | Maximum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $73.20 | |||
Exercise Price Range 66.77 To 73.20 | Stock options and stock appreciation rights outstanding | ||||
Stock options and Stock appreciation rights outstanding | ||||
Stock option and stock appreciation rights outstanding at the end of the year (in shares) | 7,744,932 | |||
Weighted Average Remaining Contractual Life outstanding (in Years) | 2 years 0 months 7 days | |||
Weighted Average Exercise Price (in dollars per share) | $72.51 | |||
Aggregate Intrinsic Value outstanding | 155 | |||
Exercise Price Range 66.77 To 73.20 | Stock options and stock appreciation rights exercisable | ||||
Stock options and Stock appreciation rights exercisable | ||||
Number of stock awards exercisable at end of the period (in shares) | 7,744,932 | |||
Weighted-Average Remaining Contractual Life of Stock awards exercisable (in years) | 2 years 7 days | |||
Weighted-Average Exercise Price of Stock awards exercisable (in dollars per share) | $72.51 | |||
Aggregate Intrinsic Value of Stock awards exercisable | 155 | |||
Exercise Price Range 86.77 To 89.75 | Minimum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $86.77 | |||
Exercise Price Range 86.77 To 89.75 | Maximum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $89.75 | |||
Exercise Price Range 86.77 To 89.75 | Stock options and stock appreciation rights outstanding | ||||
Stock options and Stock appreciation rights outstanding | ||||
Stock option and stock appreciation rights outstanding at the end of the year (in shares) | 4,195,185 | |||
Weighted Average Remaining Contractual Life outstanding (in Years) | 8 years 0 months 22 days | |||
Weighted Average Exercise Price (in dollars per share) | $89.68 | |||
Aggregate Intrinsic Value outstanding | 12 | |||
Exercise Price Range 86.77 To 89.75 | Stock options and stock appreciation rights exercisable | ||||
Stock options and Stock appreciation rights exercisable | ||||
Number of stock awards exercisable at end of the period (in shares) | 420,340 | |||
Weighted-Average Remaining Contractual Life of Stock awards exercisable (in years) | 8 years 1 month 25 days | |||
Weighted-Average Exercise Price of Stock awards exercisable (in dollars per share) | $89.75 | |||
Aggregate Intrinsic Value of Stock awards exercisable | 1 | |||
Exercise Price Range 96.31 To 110.09 | Minimum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $96.31 | |||
Exercise Price Range 96.31 To 110.09 | Maximum | ||||
Stock Options/SARs outstanding and exercisable | ||||
Exercise Price (in dollars per share) | $110.09 | |||
Exercise Price Range 96.31 To 110.09 | Stock options and stock appreciation rights outstanding | ||||
Stock options and Stock appreciation rights outstanding | ||||
Stock option and stock appreciation rights outstanding at the end of the year (in shares) | 10,266,682 | |||
Weighted Average Remaining Contractual Life outstanding (in Years) | 7 years 9 months 5 days | |||
Weighted Average Exercise Price (in dollars per share) | $102.04 | |||
Aggregate Intrinsic Value outstanding | 0 | |||
Exercise Price Range 96.31 To 110.09 | Stock options and stock appreciation rights exercisable | ||||
Stock options and Stock appreciation rights exercisable | ||||
Number of stock awards exercisable at end of the period (in shares) | 3,451,821 | |||
Weighted-Average Remaining Contractual Life of Stock awards exercisable (in years) | 6 years 4 months 25 days | |||
Weighted-Average Exercise Price of Stock awards exercisable (in dollars per share) | $103.43 | |||
Aggregate Intrinsic Value of Stock awards exercisable | $0 |
Derivative_financial_instrumen3
Derivative financial instruments and risk management (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Derivative [Line Items] | |
Foreign currency cash flow hedges, maximum period (in years) | 5 years |
Deferred net losses, foreign currency exchange rate risk, to be reclassified from equity to current earnings over the next twelve months | $68 |
Commodity forward and option contracts, maximum period (in years) | 5 years |
Machinery, Energy & Transportation | |
Derivative [Line Items] | |
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months | 4 |
Financial Products | |
Derivative [Line Items] | |
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months | $1 |
Derivative_financial_instrumen4
Derivative financial instruments and risk management (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Derivatives Fair Value | |||
Asset Fair Value | $128 | $211 | $298 |
Liability Fair Value | -214 | -50 | -144 |
Machinery, Energy & Transportation | |||
Derivatives Fair Value | |||
Asset Fair Value | 27 | 73 | 60 |
Liability Fair Value | -191 | -40 | -129 |
Financial Products | |||
Derivatives Fair Value | |||
Asset Fair Value | 101 | 138 | 238 |
Liability Fair Value | -23 | -10 | -15 |
Designated derivatives | |||
Derivatives Fair Value | |||
Asset (Liability) Fair Value | -38 | 131 | 180 |
Designated derivatives | Foreign exchange contracts | Receivables - trade and other | Machinery, Energy & Transportation | |||
Derivatives Fair Value | |||
Asset Fair Value | 25 | 54 | 28 |
Designated derivatives | Foreign exchange contracts | Accrued expenses | Machinery, Energy & Transportation | |||
Derivatives Fair Value | |||
Liability Fair Value | -134 | -39 | -66 |
Designated derivatives | Interest rate contracts | Receivables - trade and other | Financial Products | |||
Derivatives Fair Value | |||
Asset Fair Value | 6 | 7 | 17 |
Designated derivatives | Interest rate contracts | Long-term receivables - trade and other | Financial Products | |||
Derivatives Fair Value | |||
Asset Fair Value | 73 | 115 | 209 |
Designated derivatives | Interest rate contracts | Accrued expenses | Financial Products | |||
Derivatives Fair Value | |||
Liability Fair Value | -8 | -6 | -8 |
Undesignated derivatives | |||
Derivatives Fair Value | |||
Asset (Liability) Fair Value | -48 | 30 | -26 |
Undesignated derivatives | Foreign exchange contracts | Receivables - trade and other | Machinery, Energy & Transportation | |||
Derivatives Fair Value | |||
Asset Fair Value | 2 | 19 | 31 |
Undesignated derivatives | Foreign exchange contracts | Receivables - trade and other | Financial Products | |||
Derivatives Fair Value | |||
Asset Fair Value | 5 | 7 | 10 |
Undesignated derivatives | Foreign exchange contracts | Long-term receivables - trade and other | Financial Products | |||
Derivatives Fair Value | |||
Asset Fair Value | 17 | 9 | 0 |
Undesignated derivatives | Foreign exchange contracts | Accrued expenses | Machinery, Energy & Transportation | |||
Derivatives Fair Value | |||
Liability Fair Value | -43 | -1 | -63 |
Undesignated derivatives | Foreign exchange contracts | Accrued expenses | Financial Products | |||
Derivatives Fair Value | |||
Liability Fair Value | -15 | -4 | -6 |
Undesignated derivatives | Interest rate contracts | Receivables - trade and other | Financial Products | |||
Derivatives Fair Value | |||
Asset Fair Value | 0 | 0 | 2 |
Undesignated derivatives | Interest rate contracts | Accrued expenses | Financial Products | |||
Derivatives Fair Value | |||
Liability Fair Value | 0 | 0 | -1 |
Undesignated derivatives | Commodity contracts | Receivables - trade and other | Machinery, Energy & Transportation | |||
Derivatives Fair Value | |||
Asset Fair Value | 0 | 0 | 1 |
Undesignated derivatives | Commodity contracts | Accrued expenses | Machinery, Energy & Transportation | |||
Derivatives Fair Value | |||
Liability Fair Value | ($14) | $0 | $0 |
Derivative_financial_instrumen5
Derivative financial instruments and risk management (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Machinery, Energy & Transportation | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $3,128 | $3,565 | $4,438 |
Financial Products | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $5,249 | $6,743 | $9,817 |
Derivative_financial_instrumen6
Derivative financial instruments and risk management (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Designated derivatives | Fair Value Hedges | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives | ($41) | ($107) | ($20) |
Gains (Losses) on Borrowings | 23 | 114 | 36 |
Designated derivatives | Fair Value Hedges | Interest rate contracts | Financial Products | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives | -41 | -107 | -20 |
Gains (Losses) on Borrowings | 23 | 114 | 36 |
Designated derivatives | Cash Flow Hedges | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | -187 | -6 | -77 |
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -6 | -66 | -26 |
Recognized in Earnings (Ineffective Portion) | 0 | 1 | -1 |
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | -118 | -4 | -78 |
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Reclassified from AOCI to Earnings | 5 | -57 | -30 |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 |
Gains (Losses) reclassified from AOCI to earnings for derivatives dedesignated as related transactions are no longer probable to occur | -3 | -7 | |
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | -63 | 0 | |
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -3 | ||
Recognized in Earnings (Ineffective Portion) | 0 | ||
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | Interest expense | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -5 | ||
Recognized in Earnings (Ineffective Portion) | 0 | ||
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | -6 | -2 | 1 |
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | Interest expense | |||
Derivative Instruments Gain (Loss) | |||
Amount of Gains (Losses) Reclassified from AOCI to Earnings | -6 | -6 | 4 |
Recognized in Earnings (Ineffective Portion) | 0 | 1 | -1 |
Undesignated derivatives | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | -120 | 18 | 72 |
Undesignated derivatives | Foreign exchange contracts | Machinery, Energy & Transportation | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | -60 | 17 | 62 |
Undesignated derivatives | Foreign exchange contracts | Financial Products | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | -47 | 8 | 6 |
Undesignated derivatives | Interest rate contracts | Machinery, Energy & Transportation | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 2 | -1 | 2 |
Undesignated derivatives | Interest rate contracts | Financial Products | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 0 | -3 | 0 |
Undesignated derivatives | Commodity contracts | Machinery, Energy & Transportation | Other Income (Expense) | |||
Derivative Instruments Gain (Loss) | |||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | ($15) | ($3) | $2 |
Derivative_financial_instrumen7
Derivative financial instruments and risk management (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Offsetting Assets | |||
Gross Amount of Recognized Assets | $128 | $211 | $298 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 128 | 211 | 298 |
Financial Instruments | -35 | -41 | -71 |
Cash Collateral Received | 0 | 0 | 0 |
Net Amount of Assets | 93 | 170 | 227 |
Machinery, Energy & Transportation | |||
Offsetting Assets | |||
Gross Amount of Recognized Assets | 27 | 73 | 60 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 27 | 73 | 60 |
Financial Instruments | -27 | -32 | -59 |
Cash Collateral Received | 0 | 0 | 0 |
Net Amount of Assets | 0 | 41 | 1 |
Financial Products | |||
Offsetting Assets | |||
Gross Amount of Recognized Assets | 101 | 138 | 238 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 101 | 138 | 238 |
Financial Instruments | -8 | -9 | -12 |
Cash Collateral Received | 0 | 0 | 0 |
Net Amount of Assets | $93 | $129 | $226 |
Derivative_financial_instrumen8
Derivative financial instruments and risk management (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Offsetting Liabilities | |||
Gross Amount of Recognized Liabilities | ($214) | ($50) | ($144) |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | -214 | -50 | -144 |
Financial Instruments | 35 | 41 | 71 |
Cash Collateral Pledged | 0 | 0 | 0 |
Net Amount of Liabilities | -179 | -9 | -73 |
Machinery, Energy & Transportation | |||
Offsetting Liabilities | |||
Gross Amount of Recognized Liabilities | -191 | -40 | -129 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | -191 | -40 | -129 |
Financial Instruments | 27 | 32 | 59 |
Cash Collateral Pledged | 0 | 0 | 0 |
Net Amount of Liabilities | -164 | -8 | -70 |
Financial Products | |||
Offsetting Liabilities | |||
Gross Amount of Recognized Liabilities | -23 | -10 | -15 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | -23 | -10 | -15 |
Financial Instruments | 8 | 9 | 12 |
Cash Collateral Pledged | 0 | 0 | 0 |
Net Amount of Liabilities | ($15) | ($1) | ($3) |
Other_income_expense_Details
Other income (expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Investment and interest income | $66 | $84 | $82 |
Foreign exchange gains (losses) | 54 | -254 | -116 |
License fee income | 128 | 114 | 99 |
Gains (losses) on sale of securities and affiliated companies | 36 | 21 | 4 |
Miscellaneous income (loss) | -45 | 0 | 61 |
Other income (expense) | $239 | ($35) | $130 |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income taxes paid | $1,595 | $1,544 | $2,396 |
Components of profit (loss) before taxes | |||
U.S | 2,022 | 1,938 | 4,090 |
Non-U.S | 3,061 | 3,190 | 4,146 |
Consolidated profit before taxes | 5,083 | 5,128 | 8,236 |
Current tax provision (benefit): | |||
U.S. | 715 | 407 | 971 |
Non-U.S. | 883 | 805 | 1,250 |
State (U.S.) | 48 | 33 | 56 |
Current tax provision (benefit) | 1,646 | 1,245 | 2,277 |
Deferred tax provision (benefit): | |||
U.S. | -167 | 79 | 332 |
Non-U.S. | -77 | -7 | -89 |
State (U.S.) | -22 | 2 | 8 |
Deferred tax provision (benefit) | -266 | 74 | 251 |
Provision (benefit) for income taxes | $1,380 | $1,319 | $2,528 |
Income_taxes_Details_2
Income taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of the U.S. federal statutory rate to effective rate: | |||
Taxes at U.S. statutory rate | $1,779,000,000 | $1,795,000,000 | $2,882,000,000 |
U. S. statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
(Decreases) increases in taxes resulting from: | |||
Non-U.S. subsidiaries taxed at other than 35% | -249,000,000 | -268,000,000 | -342,000,000 |
Non-U.S. subsidiaries taxed at other than 35% (as a percent) | -4.90% | -5.20% | -4.20% |
State and local taxes, net of federal | 17,000,000 | 23,000,000 | 55,000,000 |
State and local taxes, net of federal (as a percent) | 0.30% | 0.40% | 0.70% |
Interest and penalties, net of tax | 12,000,000 | 4,000,000 | 22,000,000 |
Interest and penalties, net of tax (as a percent) | 0.20% | 0.10% | 0.30% |
U.S. research and production incentives | -125,000,000 | -91,000,000 | -80,000,000 |
U.S. research and production incentives (as a percent) | -2.40% | -1.80% | -1.00% |
Other-net | -10,000,000 | -2,000,000 | -27,000,000 |
Other-net (as a percent) | -0.20% | 0.00% | -0.30% |
Total of taxes at statutory rate plus increases and decreases | 1,424,000,000 | 1,461,000,000 | 2,510,000,000 |
Total of tax rates at statutory rate plus increases and decreases in the rate (as a percent) | 28.00% | 28.50% | 30.50% |
Prior year tax and interest adjustments | -21,000,000 | -55,000,000 | -300,000,000 |
Prior year tax and interest adjustments (as a percent) | -0.40% | -1.10% | -3.70% |
Nondeductible goodwill | 0 | 0 | 318,000,000 |
Nondeductible goodwill (as a percent) | 0.00% | 0.00% | 3.90% |
Release of valuation allowances | -23,000,000 | 0 | 0 |
Release of valuation allowances (as a percent) | -0.50% | 0.00% | 0.00% |
Tax law changes | 0 | -87,000,000 | 0 |
Tax law changes (as a percent) | 0.00% | -1.70% | 0.00% |
Provision (benefit) for income taxes | 1,380,000,000 | 1,319,000,000 | 2,528,000,000 |
Provision (benefit) for income taxes (as a percent) | 27.10% | 25.70% | 30.70% |
Benefit from research and development tax credit retroactively extended | 0 | -87,000,000 | 0 |
Income Tax Reconciliation Settlement Benefit Including Interest | -33,000,000 | ||
Tax Adjustments, Settlements, and Unusual Provisions | -16,000,000 | ||
Settlement benefit, interest and penalties | -17,000,000 | -96,000,000 | |
Other Tax Expense (Benefit) | 12,000,000 | ||
Tax Correction Prior Years | 55,000,000 | ||
Settlement benefit, previously unrecognized tax benefits | -188,000,000 | ||
Impairment of nondeductible goodwill | 203,000,000 | ||
Divestiture of nondeductible goodwill | 115,000,000 | ||
Undistributed profits of non-U.S. subsidiaries considered indefinitely reinvested | $18,000,000,000 |
Income_taxes_Details_3
Income taxes (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Deferred tax assets | |||
Deferred and refundable income taxes | $992 | $877 | $979 |
Noncurrent deferred and refundable income taxes | 1,267 | 456 | 1,863 |
Total deferred tax assets | 2,259 | 1,333 | 2,842 |
Deferred tax liabilities | |||
Other current liabilities | 62 | 86 | 66 |
Other liabilities | 414 | 447 | 484 |
Deferred income taxes-net | $1,783 | $800 | $2,292 |
Income_taxes_Details_4
Income taxes (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Deferred income tax assets: | |||
Pension | $1,513 | $903 | $2,100 |
Postemployment benefits other than pensions | 1,514 | 1,435 | 1,678 |
Tax carryforwards | 826 | 760 | 663 |
Warranty reserves | 346 | 313 | 358 |
Stock based compensation | 327 | 320 | 281 |
Inventory | 123 | 112 | 195 |
Allowance for credit losses | 198 | 184 | 170 |
Post sale discounts | 175 | 146 | 141 |
Deferred compensation | 132 | 126 | 110 |
Other-net | 549 | 524 | 491 |
Deferred income tax assets, Total | 5,703 | 4,823 | 6,187 |
Deferred income tax liabilities: | |||
Capital and intangible assets | -2,625 | -2,815 | -2,759 |
Bond discount | -233 | -240 | -249 |
Translation | -252 | -133 | -173 |
Undistributed profits of non-U.S. subsidiaries | -69 | -90 | -128 |
Deferred income tax liabilities, Total | -3,179 | -3,278 | -3,309 |
Valuation allowance for deferred tax assets | -741 | -745 | -586 |
Deferred income taxes-net | $1,783 | $800 | $2,292 |
Income_taxes_Details_5
Income taxes (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating loss and Tax credit carryforwards | |||
Valuation allowance for deferred tax assets | ($741) | ($745) | ($586) |
U.S foreign tax credit carryforwards | 61 | ||
U.S. state taxing jurisdictions | |||
Operating loss and Tax credit carryforwards | |||
Valuation allowance for deferred tax assets | -162 | ||
U.S. state taxing jurisdictions | 2015-2034 | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | 568 | ||
U.S. state taxing jurisdictions | Over the next five to fifteen years | |||
Operating loss and Tax credit carryforwards | |||
Tax credit carryforwards | 158 | ||
State tax credit carryforward expiration date, minimum | 5 years | ||
State tax credit carryforwards expiration date, maximum | 15 years | ||
Non-U.S. taxing jurisdictions | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | 2,211 | ||
Valuation allowance for deferred tax assets | -579 | ||
Non-U.S. taxing jurisdictions | 2015 | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | 7 | ||
Non-U.S. taxing jurisdictions | 2016 | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | 5 | ||
Non-U.S. taxing jurisdictions | 2017 | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | 14 | ||
Non-U.S. taxing jurisdictions | 2018 | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | 96 | ||
Non-U.S. taxing jurisdictions | 2019-2035 | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | 700 | ||
Non-U.S. taxing jurisdictions | Unlimited | |||
Operating loss and Tax credit carryforwards | |||
Net operating loss carryforwards | $1,389 |
Income_taxes_Details_6
Income taxes (Details 6) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||
Unrecognized tax benefits, beginning | $759,000,000 | $715,000,000 | $958,000,000 |
Additions for tax positions related to current year | 58,000,000 | 63,000,000 | 64,000,000 |
Additions for tax positions related to prior years | 84,000,000 | 52,000,000 | 178,000,000 |
Reductions for tax positions related to prior years | -31,000,000 | -31,000,000 | -266,000,000 |
Reductions for settlements | -18,000,000 | -15,000,000 | -191,000,000 |
Reductions for expiration of statute of limitations | -6,000,000 | -25,000,000 | -28,000,000 |
Unrecognized tax benefits, ending | 846,000,000 | 759,000,000 | 715,000,000 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 804,000,000 | 726,000,000 | 669,000,000 |
Interest and penalties, recognized | 3,000,000 | 7,000,000 | -114,000,000 |
Interest and penalties, accrued | 61,000,000 | 59,000,000 | 134,000,000 |
Income tax examination, proposed liability increase/(decrease) | 1,000,000,000 | ||
Income tax adjustment | $125,000,000 | ||
Length of time tax years subject to examination, minimum | 3 years | ||
Length of time tax years subject to examination, maximum | 8 years |
Cat_Financial_Financing_Activi2
Cat Financial Financing Activities (Details) (Wholesale Receivables, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Contractual maturities of wholesale inventory receivables | |||
2015 | $1,176 | ||
2016 | 456 | ||
2017 | 330 | ||
2018 | 83 | ||
2019 | 22 | ||
Thereafter | 5 | ||
Total Amounts Due | 2,072 | ||
Guaranteed residual value | 98 | ||
Unguaranteed residual value | 38 | ||
Less: Unearned Income | -38 | ||
Total | 2,170 | 1,945 | 2,152 |
Wholesale Installment Contracts | |||
Contractual maturities of wholesale inventory receivables | |||
2015 | 200 | ||
2016 | 109 | ||
2017 | 70 | ||
2018 | 39 | ||
2019 | 15 | ||
Thereafter | 3 | ||
Total Amounts Due | 436 | ||
Guaranteed residual value | 0 | ||
Unguaranteed residual value | 0 | ||
Less: Unearned Income | -7 | ||
Total | 429 | ||
Wholesale Finance Leases | |||
Contractual maturities of wholesale inventory receivables | |||
2015 | 109 | ||
2016 | 85 | ||
2017 | 58 | ||
2018 | 27 | ||
2019 | 7 | ||
Thereafter | 2 | ||
Total Amounts Due | 288 | ||
Guaranteed residual value | 98 | ||
Unguaranteed residual value | 38 | ||
Less: Unearned Income | -28 | ||
Total | 396 | ||
Wholesale Notes | |||
Contractual maturities of wholesale inventory receivables | |||
2015 | 867 | ||
2016 | 262 | ||
2017 | 202 | ||
2018 | 17 | ||
2019 | 0 | ||
Thereafter | 0 | ||
Total Amounts Due | 1,348 | ||
Guaranteed residual value | 0 | ||
Unguaranteed residual value | 0 | ||
Less: Unearned Income | -3 | ||
Total | $1,345 |
Cat_Financial_Financing_Activi3
Cat Financial Financing Activities (Details 2) (Finance Receivables, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Contractual maturities of outstanding finance receivables | |||
2015 | $9,155 | ||
2016 | 6,038 | ||
2017 | 4,239 | ||
2018 | 2,169 | ||
2019 | 1,231 | ||
Thereafter | 1,111 | ||
Total amounts due | 23,943 | ||
Guaranteed Residual value | 323 | ||
Unguaranteed Residual value | 622 | ||
Less: Unearned Income | -822 | ||
Total Finance Receivables | 24,066 | 24,061 | 23,308 |
Retail Installment Contracts | |||
Contractual maturities of outstanding finance receivables | |||
2015 | 2,308 | ||
2016 | 1,736 | ||
2017 | 1,184 | ||
2018 | 587 | ||
2019 | 174 | ||
Thereafter | 10 | ||
Total amounts due | 5,999 | ||
Guaranteed Residual value | 0 | ||
Unguaranteed Residual value | 0 | ||
Less: Unearned Income | -106 | ||
Total Finance Receivables | 5,893 | ||
Retail finance leases | |||
Contractual maturities of outstanding finance receivables | |||
2015 | 2,956 | ||
2016 | 2,064 | ||
2017 | 1,159 | ||
2018 | 513 | ||
2019 | 209 | ||
Thereafter | 131 | ||
Total amounts due | 7,032 | ||
Guaranteed Residual value | 323 | ||
Unguaranteed Residual value | 622 | ||
Less: Unearned Income | -630 | ||
Total Finance Receivables | 7,347 | ||
Retail Notes | |||
Contractual maturities of outstanding finance receivables | |||
2015 | 3,891 | ||
2016 | 2,238 | ||
2017 | 1,896 | ||
2018 | 1,069 | ||
2019 | 848 | ||
Thereafter | 970 | ||
Total amounts due | 10,912 | ||
Guaranteed Residual value | 0 | ||
Unguaranteed Residual value | 0 | ||
Less: Unearned Income | -86 | ||
Total Finance Receivables | $10,826 |
Cat_Financial_Financing_Activi4
Cat Financial Financing Activities (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired loans and finance leases | |||
Period after which collection of future income is considered as not probable (in days) | 120 days | ||
Finance Receivables | |||
Impaired loans and finance leases | |||
Period after which collection of future income is considered as not probable (in days) | 120 days | ||
Finance Receivables | Customer | |||
Impaired loans and finance leases | |||
Recorded Investment With No Allowance Recorded | $251 | $446 | $378 |
Unpaid Principal Balance With No Allowance Recorded | 249 | 443 | 377 |
Related Allowance With No Allowance Recorded | 0 | 0 | 0 |
Recorded Investment With An Allowance Recorded | 362 | 182 | 215 |
Unpaid Principal Balance With An Allowance Recorded | 360 | 177 | 207 |
Related Allowance | 75 | 70 | 54 |
Recorded Investment, Total | 613 | 628 | 593 |
Unpaid Principal Balance, Total | 609 | 620 | 584 |
Related Allowance, Total | 75 | 70 | 54 |
Average Recorded Investment With No Allowance Recorded | 333 | 421 | 332 |
Interest Income Recognized With No Allowance Recorded | 11 | 12 | 6 |
Average Recorded Investment With An Allowance Recorded | 274 | 238 | 188 |
Interest Income Recognized With An Allowance Recorded | 12 | 6 | 5 |
Average Recorded Investment, Total | 607 | 659 | 520 |
Interest Income Recognized, Total | 23 | 18 | 11 |
Finance Receivables | Customer | North America | |||
Impaired loans and finance leases | |||
Recorded Investment With No Allowance Recorded | 14 | 23 | 28 |
Unpaid Principal Balance With No Allowance Recorded | 14 | 22 | 27 |
Related Allowance With No Allowance Recorded | 0 | 0 | 0 |
Recorded Investment With An Allowance Recorded | 6 | 13 | 25 |
Unpaid Principal Balance With An Allowance Recorded | 6 | 13 | 23 |
Related Allowance | 1 | 4 | 7 |
Recorded Investment, Total | 20 | 36 | 53 |
Unpaid Principal Balance, Total | 20 | 35 | 50 |
Related Allowance, Total | 1 | 4 | 7 |
Average Recorded Investment With No Allowance Recorded | 20 | 25 | 50 |
Interest Income Recognized With No Allowance Recorded | 1 | 3 | 3 |
Average Recorded Investment With An Allowance Recorded | 9 | 18 | 25 |
Interest Income Recognized With An Allowance Recorded | 0 | 1 | 1 |
Average Recorded Investment, Total | 29 | 43 | 75 |
Interest Income Recognized, Total | 1 | 4 | 4 |
Finance Receivables | Customer | Europe | |||
Impaired loans and finance leases | |||
Recorded Investment With No Allowance Recorded | 44 | 48 | 45 |
Unpaid Principal Balance With No Allowance Recorded | 43 | 47 | 45 |
Related Allowance With No Allowance Recorded | 0 | 0 | 0 |
Recorded Investment With An Allowance Recorded | 12 | 20 | 28 |
Unpaid Principal Balance With An Allowance Recorded | 12 | 19 | 26 |
Related Allowance | 4 | 7 | 11 |
Recorded Investment, Total | 56 | 68 | 73 |
Unpaid Principal Balance, Total | 55 | 66 | 71 |
Related Allowance, Total | 4 | 7 | 11 |
Average Recorded Investment With No Allowance Recorded | 47 | 49 | 45 |
Interest Income Recognized With No Allowance Recorded | 1 | 1 | 1 |
Average Recorded Investment With An Allowance Recorded | 21 | 22 | 27 |
Interest Income Recognized With An Allowance Recorded | 1 | 1 | 1 |
Average Recorded Investment, Total | 68 | 71 | 72 |
Interest Income Recognized, Total | 2 | 2 | 2 |
Finance Receivables | Customer | Asia Pacific | |||
Impaired loans and finance leases | |||
Recorded Investment With No Allowance Recorded | 1 | 7 | 2 |
Unpaid Principal Balance With No Allowance Recorded | 1 | 7 | 2 |
Related Allowance With No Allowance Recorded | 0 | 0 | 0 |
Recorded Investment With An Allowance Recorded | 29 | 16 | 19 |
Unpaid Principal Balance With An Allowance Recorded | 29 | 16 | 19 |
Related Allowance | 8 | 2 | 4 |
Recorded Investment, Total | 30 | 23 | 21 |
Unpaid Principal Balance, Total | 30 | 23 | 21 |
Related Allowance, Total | 8 | 2 | 4 |
Average Recorded Investment With No Allowance Recorded | 3 | 4 | 3 |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 0 |
Average Recorded Investment With An Allowance Recorded | 22 | 18 | 15 |
Interest Income Recognized With An Allowance Recorded | 1 | 1 | 1 |
Average Recorded Investment, Total | 25 | 22 | 18 |
Interest Income Recognized, Total | 1 | 1 | 1 |
Finance Receivables | Customer | Mining | |||
Impaired loans and finance leases | |||
Recorded Investment With No Allowance Recorded | 29 | 134 | 1 |
Unpaid Principal Balance With No Allowance Recorded | 29 | 134 | 1 |
Related Allowance With No Allowance Recorded | 0 | 0 | 0 |
Recorded Investment With An Allowance Recorded | 138 | 0 | 0 |
Unpaid Principal Balance With An Allowance Recorded | 137 | 0 | 0 |
Related Allowance | 9 | 0 | 0 |
Recorded Investment, Total | 167 | 134 | 1 |
Unpaid Principal Balance, Total | 166 | 134 | 1 |
Related Allowance, Total | 9 | 0 | 0 |
Average Recorded Investment With No Allowance Recorded | 69 | 61 | 8 |
Interest Income Recognized With No Allowance Recorded | 3 | 3 | 0 |
Average Recorded Investment With An Allowance Recorded | 90 | 1 | 0 |
Interest Income Recognized With An Allowance Recorded | 7 | 0 | 0 |
Average Recorded Investment, Total | 159 | 62 | 8 |
Interest Income Recognized, Total | 10 | 3 | 0 |
Finance Receivables | Customer | Latin America | |||
Impaired loans and finance leases | |||
Recorded Investment With No Allowance Recorded | 34 | 11 | 7 |
Unpaid Principal Balance With No Allowance Recorded | 34 | 11 | 7 |
Related Allowance With No Allowance Recorded | 0 | 0 | 0 |
Recorded Investment With An Allowance Recorded | 42 | 23 | 30 |
Unpaid Principal Balance With An Allowance Recorded | 42 | 23 | 30 |
Related Allowance | 12 | 6 | 8 |
Recorded Investment, Total | 76 | 34 | 37 |
Unpaid Principal Balance, Total | 76 | 34 | 37 |
Related Allowance, Total | 12 | 6 | 8 |
Average Recorded Investment With No Allowance Recorded | 30 | 11 | 6 |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 0 |
Average Recorded Investment With An Allowance Recorded | 36 | 44 | 27 |
Interest Income Recognized With An Allowance Recorded | 1 | 2 | 2 |
Average Recorded Investment, Total | 66 | 55 | 33 |
Interest Income Recognized, Total | 1 | 2 | 2 |
Finance Receivables | Customer | Caterpillar Power Finance | |||
Impaired loans and finance leases | |||
Recorded Investment With No Allowance Recorded | 129 | 223 | 295 |
Unpaid Principal Balance With No Allowance Recorded | 128 | 222 | 295 |
Related Allowance With No Allowance Recorded | 0 | 0 | 0 |
Recorded Investment With An Allowance Recorded | 135 | 110 | 113 |
Unpaid Principal Balance With An Allowance Recorded | 134 | 106 | 109 |
Related Allowance | 41 | 51 | 24 |
Recorded Investment, Total | 264 | 333 | 408 |
Unpaid Principal Balance, Total | 262 | 328 | 404 |
Related Allowance, Total | 41 | 51 | 24 |
Average Recorded Investment With No Allowance Recorded | 164 | 271 | 220 |
Interest Income Recognized With No Allowance Recorded | 6 | 5 | 2 |
Average Recorded Investment With An Allowance Recorded | 96 | 135 | 94 |
Interest Income Recognized With An Allowance Recorded | 2 | 1 | 0 |
Average Recorded Investment, Total | 260 | 406 | 314 |
Interest Income Recognized, Total | 8 | 6 | 2 |
Finance Receivables | Dealer | |||
Impaired loans and finance leases | |||
Recorded Investment, Total | 0 | 0 | 0 |
Average Recorded Investment, Total | $0 | $0 | $0 |
Cat_Financial_Financing_Activi5
Cat Financial Financing Activities (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Non-accrual and past due loans and finance leases | |||
Period after which collection of future income is considered as not probable (in days) | 120 days | ||
Finance Receivables | |||
Non-accrual and past due loans and finance leases | |||
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 | $175 | $229 | $188 |
61-90 days past due | 80 | 105 | 70 |
91 or more days past due | 396 | 349 | 418 |
Total Past Due | 651 | 683 | 676 |
Current | 23,415 | 23,378 | 22,632 |
Total Finance Receivables | 24,066 | 24,061 | 23,308 |
91 days or more past due and still accruing | 35 | 22 | 28 |
Finance Receivables | North America | |||
Aging related to loans and finance leases | |||
Total Finance Receivables | 9,462 | 8,864 | 8,030 |
Finance Receivables | Europe | |||
Aging related to loans and finance leases | |||
Total Finance Receivables | 2,828 | 3,025 | 2,740 |
Finance Receivables | Asia Pacific | |||
Aging related to loans and finance leases | |||
Total Finance Receivables | 3,002 | 3,471 | 3,789 |
Finance Receivables | Mining | |||
Aging related to loans and finance leases | |||
Total Finance Receivables | 2,123 | 2,144 | 1,974 |
Finance Receivables | Latin America | |||
Aging related to loans and finance leases | |||
Total Finance Receivables | 3,503 | 3,466 | 3,603 |
Finance Receivables | Caterpillar Power Finance | |||
Aging related to loans and finance leases | |||
Total Finance Receivables | 3,148 | 3,091 | 3,172 |
Finance Receivables | Customer | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 468 | 425 | 513 |
Aging related to loans and finance leases | |||
Total Finance Receivables | 20,512 | 20,296 | 19,424 |
Finance Receivables | Customer | North America | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 27 | 26 | 59 |
Aging related to loans and finance leases | |||
31-60 days past due | 46 | 37 | 35 |
61-90 days past due | 8 | 12 | 8 |
91 or more days past due | 27 | 24 | 52 |
Total Past Due | 81 | 73 | 95 |
Current | 7,192 | 6,508 | 5,872 |
Total Finance Receivables | 7,273 | 6,581 | 5,967 |
91 days or more past due and still accruing | 4 | 0 | 0 |
Finance Receivables | Customer | Europe | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 28 | 28 | 38 |
Aging related to loans and finance leases | |||
31-60 days past due | 16 | 26 | 23 |
61-90 days past due | 23 | 15 | 9 |
91 or more days past due | 29 | 29 | 36 |
Total Past Due | 68 | 70 | 68 |
Current | 2,607 | 2,805 | 2,487 |
Total Finance Receivables | 2,675 | 2,875 | 2,555 |
91 days or more past due and still accruing | 6 | 6 | 6 |
Finance Receivables | Customer | Asia Pacific | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 54 | 50 | 36 |
Aging related to loans and finance leases | |||
31-60 days past due | 29 | 54 | 53 |
61-90 days past due | 22 | 23 | 19 |
91 or more days past due | 69 | 59 | 54 |
Total Past Due | 120 | 136 | 126 |
Current | 2,316 | 2,752 | 2,912 |
Total Finance Receivables | 2,436 | 2,888 | 3,038 |
91 days or more past due and still accruing | 16 | 11 | 18 |
Finance Receivables | Customer | Mining | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 62 | 23 | 12 |
Aging related to loans and finance leases | |||
31-60 days past due | 28 | 3 | 0 |
61-90 days past due | 0 | 0 | 1 |
91 or more days past due | 11 | 12 | 12 |
Total Past Due | 39 | 15 | 13 |
Current | 2,084 | 2,128 | 1,960 |
Total Finance Receivables | 2,123 | 2,143 | 1,973 |
91 days or more past due and still accruing | 0 | 0 | 0 |
Finance Receivables | Customer | Latin America | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 201 | 179 | 148 |
Aging related to loans and finance leases | |||
31-60 days past due | 55 | 54 | 62 |
61-90 days past due | 23 | 25 | 19 |
91 or more days past due | 196 | 165 | 138 |
Total Past Due | 274 | 244 | 219 |
Current | 2,583 | 2,474 | 2,500 |
Total Finance Receivables | 2,857 | 2,718 | 2,719 |
91 days or more past due and still accruing | 8 | 5 | 0 |
Finance Receivables | Customer | Caterpillar Power Finance | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 96 | 119 | 220 |
Aging related to loans and finance leases | |||
31-60 days past due | 1 | 55 | 15 |
61-90 days past due | 4 | 30 | 14 |
91 or more days past due | 64 | 60 | 126 |
Total Past Due | 69 | 145 | 155 |
Current | 3,079 | 2,946 | 3,017 |
Total Finance Receivables | 3,148 | 3,091 | 3,172 |
91 days or more past due and still accruing | 1 | 0 | 4 |
Finance Receivables | Dealer | |||
Non-accrual and past due loans and finance leases | |||
Investment in loans and finance leases on non-accrual status | 0 | 0 | 0 |
Aging related to loans and finance leases | |||
Total Finance Receivables | 3,554 | 3,765 | 3,884 |
Finance Receivables | Dealer | North America | |||
Aging related to loans and finance leases | |||
31-60 days past due | 0 | 0 | 0 |
61-90 days past due | 0 | 0 | 0 |
91 or more days past due | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 2,189 | 2,283 | 2,063 |
Total Finance Receivables | 2,189 | 2,283 | 2,063 |
91 days or more past due and still accruing | 0 | 0 | 0 |
Finance Receivables | Dealer | Europe | |||
Aging related to loans and finance leases | |||
31-60 days past due | 0 | 0 | 0 |
61-90 days past due | 0 | 0 | 0 |
91 or more days past due | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 153 | 150 | 185 |
Total Finance Receivables | 153 | 150 | 185 |
91 days or more past due and still accruing | 0 | 0 | 0 |
Finance Receivables | Dealer | Asia Pacific | |||
Aging related to loans and finance leases | |||
31-60 days past due | 0 | 0 | 0 |
61-90 days past due | 0 | 0 | 0 |
91 or more days past due | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 566 | 583 | 751 |
Total Finance Receivables | 566 | 583 | 751 |
91 days or more past due and still accruing | 0 | 0 | 0 |
Finance Receivables | Dealer | Mining | |||
Aging related to loans and finance leases | |||
31-60 days past due | 0 | 0 | 0 |
61-90 days past due | 0 | 0 | 0 |
91 or more days past due | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 0 | 1 | 1 |
Total Finance Receivables | 0 | 1 | 1 |
91 days or more past due and still accruing | 0 | 0 | 0 |
Finance Receivables | Dealer | Latin America | |||
Aging related to loans and finance leases | |||
31-60 days past due | 0 | 0 | 0 |
61-90 days past due | 0 | 0 | 0 |
91 or more days past due | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 646 | 748 | 884 |
Total Finance Receivables | 646 | 748 | 884 |
91 days or more past due and still accruing | 0 | 0 | 0 |
Finance Receivables | Dealer | Caterpillar Power Finance | |||
Aging related to loans and finance leases | |||
31-60 days past due | 0 | 0 | 0 |
61-90 days past due | 0 | 0 | 0 |
91 or more days past due | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 0 | 0 | 0 |
Total Finance Receivables | 0 | 0 | 0 |
91 days or more past due and still accruing | $0 | $0 | $0 |
Cat_Financial_Financing_Activi6
Cat Financial Financing Activities (Details 5) (Finance Receivables, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for credit loss activity: | |||
Balance at beginning of year | $375 | $423 | $366 |
Receivables written off | -151 | -179 | -149 |
Recoveries on receivables previously written off | 47 | 56 | 47 |
Provision for credit losses | 150 | 84 | 160 |
Other-net | -23 | -9 | -1 |
Balance at end of year | 398 | 375 | 423 |
Allowance for Credit Losses: | |||
Individually evaluated for impairment | 75 | 70 | 54 |
Collectively evaluated for impairment | 323 | 305 | 369 |
Ending Balance - allowance for credit losses | 398 | 375 | 423 |
Recorded Investment in Finance Receivables: | |||
Individually evaluated for impairment | 613 | 628 | 593 |
Collectively evaluated for impairment | 23,453 | 23,433 | 22,715 |
Ending balance-recorded investment in finance receivables | 24,066 | 24,061 | 23,308 |
Customer | |||
Allowance for credit loss activity: | |||
Balance at beginning of year | 365 | 414 | 360 |
Receivables written off | -151 | -179 | -149 |
Recoveries on receivables previously written off | 47 | 56 | 47 |
Provision for credit losses | 150 | 83 | 157 |
Other-net | -23 | -9 | -1 |
Balance at end of year | 388 | 365 | 414 |
Allowance for Credit Losses: | |||
Individually evaluated for impairment | 75 | 70 | 54 |
Collectively evaluated for impairment | 313 | 295 | 360 |
Ending Balance - allowance for credit losses | 388 | 365 | 414 |
Recorded Investment in Finance Receivables: | |||
Individually evaluated for impairment | 613 | 628 | 593 |
Collectively evaluated for impairment | 19,899 | 19,668 | 18,831 |
Ending balance-recorded investment in finance receivables | 20,512 | 20,296 | 19,424 |
Dealer | |||
Allowance for credit loss activity: | |||
Balance at beginning of year | 10 | 9 | 6 |
Receivables written off | 0 | 0 | 0 |
Recoveries on receivables previously written off | 0 | 0 | 0 |
Provision for credit losses | 0 | 1 | 3 |
Other-net | 0 | 0 | 0 |
Balance at end of year | 10 | 10 | 9 |
Allowance for Credit Losses: | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 10 | 10 | 9 |
Ending Balance - allowance for credit losses | 10 | 10 | 9 |
Recorded Investment in Finance Receivables: | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 3,554 | 3,765 | 3,884 |
Ending balance-recorded investment in finance receivables | $3,554 | $3,765 | $3,884 |
Cat_Financial_Financing_Activi7
Cat Financial Financing Activities (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finance Receivables | |||
Period after which collection of future income is considered as not probable (in days) | 120 days | ||
Finance Receivables | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | $24,066 | $24,061 | $23,308 |
Period after which collection of future income is considered as not probable (in days) | 120 days | ||
Finance Receivables | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 23,598 | 23,636 | 22,795 |
Finance Receivables | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 468 | 425 | 513 |
Finance Receivables | North America | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 9,462 | 8,864 | 8,030 |
Finance Receivables | North America | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 9,435 | 8,838 | 7,971 |
Finance Receivables | North America | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 27 | 26 | 59 |
Finance Receivables | Europe | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,828 | 3,025 | 2,740 |
Finance Receivables | Europe | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,800 | 2,997 | 2,702 |
Finance Receivables | Europe | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 28 | 28 | 38 |
Finance Receivables | Asia Pacific | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,002 | 3,471 | 3,789 |
Finance Receivables | Asia Pacific | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,948 | 3,421 | 3,753 |
Finance Receivables | Asia Pacific | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 54 | 50 | 36 |
Finance Receivables | Mining | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,123 | 2,144 | 1,974 |
Finance Receivables | Mining | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,061 | 2,121 | 1,962 |
Finance Receivables | Mining | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 62 | 23 | 12 |
Finance Receivables | Latin America | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,503 | 3,466 | 3,603 |
Finance Receivables | Latin America | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,302 | 3,287 | 3,455 |
Finance Receivables | Latin America | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 201 | 179 | 148 |
Finance Receivables | Caterpillar Power Finance | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,148 | 3,091 | 3,172 |
Finance Receivables | Caterpillar Power Finance | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,052 | 2,972 | 2,952 |
Finance Receivables | Caterpillar Power Finance | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 96 | 119 | 220 |
Finance Receivables | Customer | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 20,512 | 20,296 | 19,424 |
Finance Receivables | Customer | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 20,044 | 19,871 | 18,911 |
Finance Receivables | Customer | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 468 | 425 | 513 |
Finance Receivables | Customer | North America | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 7,273 | 6,581 | 5,967 |
Finance Receivables | Customer | North America | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 7,246 | 6,555 | 5,908 |
Finance Receivables | Customer | North America | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 27 | 26 | 59 |
Finance Receivables | Customer | Europe | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,675 | 2,875 | 2,555 |
Finance Receivables | Customer | Europe | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,647 | 2,847 | 2,517 |
Finance Receivables | Customer | Europe | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 28 | 28 | 38 |
Finance Receivables | Customer | Asia Pacific | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,436 | 2,888 | 3,038 |
Finance Receivables | Customer | Asia Pacific | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,382 | 2,838 | 3,002 |
Finance Receivables | Customer | Asia Pacific | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 54 | 50 | 36 |
Finance Receivables | Customer | Mining | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,123 | 2,143 | 1,973 |
Finance Receivables | Customer | Mining | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,061 | 2,120 | 1,961 |
Finance Receivables | Customer | Mining | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 62 | 23 | 12 |
Finance Receivables | Customer | Latin America | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,857 | 2,718 | 2,719 |
Finance Receivables | Customer | Latin America | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,656 | 2,539 | 2,571 |
Finance Receivables | Customer | Latin America | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 201 | 179 | 148 |
Finance Receivables | Customer | Caterpillar Power Finance | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,148 | 3,091 | 3,172 |
Finance Receivables | Customer | Caterpillar Power Finance | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,052 | 2,972 | 2,952 |
Finance Receivables | Customer | Caterpillar Power Finance | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 96 | 119 | 220 |
Finance Receivables | Dealer | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,554 | 3,765 | 3,884 |
Finance Receivables | Dealer | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 3,554 | 3,765 | 3,884 |
Finance Receivables | Dealer | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | North America | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,189 | 2,283 | 2,063 |
Finance Receivables | Dealer | North America | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 2,189 | 2,283 | 2,063 |
Finance Receivables | Dealer | North America | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | Europe | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 153 | 150 | 185 |
Finance Receivables | Dealer | Europe | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 153 | 150 | 185 |
Finance Receivables | Dealer | Europe | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | Asia Pacific | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 566 | 583 | 751 |
Finance Receivables | Dealer | Asia Pacific | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 566 | 583 | 751 |
Finance Receivables | Dealer | Asia Pacific | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | Mining | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 1 | 1 |
Finance Receivables | Dealer | Mining | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 1 | 1 |
Finance Receivables | Dealer | Mining | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | Latin America | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 646 | 748 | 884 |
Finance Receivables | Dealer | Latin America | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 646 | 748 | 884 |
Finance Receivables | Dealer | Latin America | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | Caterpillar Power Finance | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | Caterpillar Power Finance | Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | 0 | 0 | 0 |
Finance Receivables | Dealer | Caterpillar Power Finance | Non-Performing | |||
Finance Receivables | |||
Ending balance-recorded investment in finance receivables | $0 | $0 | $0 |
Cat_Financial_Financing_Activi8
Cat Financial Financing Activities (Details 7) (Finance Receivables, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Contracts | Contracts | Contracts | |
Customer | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 164 | 194 | 199 |
Pre-TDR Outstanding Recorded Investment | $373 | $295 | $284 |
Post-TDR Outstanding Recorded Investment | 360 | 299 | 284 |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||
Number of Contracts (in contracts) | 68 | 26 | 67 |
Post-TDR Recorded Investment | 4 | 7 | 26 |
Customer | North America | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 34 | 62 | 98 |
Pre-TDR Outstanding Recorded Investment | 12 | 9 | 15 |
Post-TDR Outstanding Recorded Investment | 7 | 9 | 15 |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||
Number of Contracts (in contracts) | 11 | 19 | 49 |
Post-TDR Recorded Investment | 1 | 4 | 4 |
Customer | Europe | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 8 | 51 | 21 |
Pre-TDR Outstanding Recorded Investment | 7 | 7 | 8 |
Post-TDR Outstanding Recorded Investment | 7 | 7 | 8 |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||
Number of Contracts (in contracts) | 46 | 5 | 0 |
Post-TDR Recorded Investment | 2 | 0 | 0 |
Customer | Asia Pacific | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 2 | 3 | 12 |
Pre-TDR Outstanding Recorded Investment | 0 | 1 | 3 |
Post-TDR Outstanding Recorded Investment | 0 | 1 | 3 |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||
Number of Contracts (in contracts) | 0 | 0 | 2 |
Post-TDR Recorded Investment | 0 | 0 | 1 |
Customer | Mining | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 51 | 45 | 0 |
Pre-TDR Outstanding Recorded Investment | 185 | 123 | 0 |
Post-TDR Outstanding Recorded Investment | 176 | 123 | 0 |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||
Number of Contracts (in contracts) | 0 | 0 | 0 |
Post-TDR Recorded Investment | 0 | 0 | 0 |
Customer | Latin America | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 51 | 16 | 41 |
Pre-TDR Outstanding Recorded Investment | 32 | 2 | 5 |
Post-TDR Outstanding Recorded Investment | 31 | 2 | 5 |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||
Number of Contracts (in contracts) | 11 | 0 | 0 |
Post-TDR Recorded Investment | 1 | 0 | 0 |
Customer | Caterpillar Power Finance | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 18 | 17 | 27 |
Pre-TDR Outstanding Recorded Investment | 137 | 153 | 253 |
Post-TDR Outstanding Recorded Investment | 139 | 157 | 253 |
Additional funds loaned not recorded as TDRs | 0 | 25 | 24 |
Remaining commitments | 0 | ||
TDRs with a payment default which had been modified within twelve months prior to the default date | |||
Number of Contracts (in contracts) | 0 | 2 | 16 |
Post-TDR Recorded Investment | $0 | $3 | $21 |
Dealer | |||
Loan and finance lease receivables modified as TDRs | |||
Number of Contracts (in contracts) | 0 | 0 | 0 |
Inventories_Details
Inventories (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Percentage of LIFO Inventory | 60.00% | 60.00% | 60.00% |
Raw materials | $2,986 | $2,966 | $3,573 |
Work-in-process | 2,455 | 2,589 | 2,920 |
Finished goods | 6,504 | 6,785 | 8,767 |
Supplies | 260 | 285 | 287 |
Total inventories | 12,205 | 12,625 | 15,547 |
Long-term material purchase obligations | 2,142 | ||
Liquidation of LIFO layers effect on cost of goods sold | 115 | ||
Liquidation of LIFO layers effect on profit | $81 | ||
Liquidation of LIFO layers effect on profit per share | $0.12 |
Property_plant_and_equipment_D
Property, plant and equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment | |||
Total property, plant and equipment, at cost | 31,572 | $31,316 | $29,932 |
Less: Accumulated depreciation | -14,995 | -14,241 | -13,471 |
Property, plant and equipment - net | 16,577 | 17,075 | 16,461 |
Commitments for the purchase or construction of capital assets | 294 | ||
Assets recorded under capital leases | |||
Gross capital leases | 111 | 125 | 134 |
Less: Accumulated depreciation | -52 | -50 | -58 |
Net capital leases | 59 | 75 | 76 |
Minimum rental payments on assets recorded under capital leases were: | |||
2015 | 8 | ||
2016 | 26 | ||
2017 | 10 | ||
2018 | 7 | ||
2019 | 7 | ||
Thereafter | 35 | ||
Minimum rental payments to be received for equipment leased to others were: | |||
2015 | 951 | ||
2016 | 621 | ||
2017 | 353 | ||
2018 | 180 | ||
2019 | 73 | ||
Thereafter | 28 | ||
Land | |||
Property, plant and equipment | |||
Total property, plant and equipment, at cost | 665 | 688 | 723 |
Buildings and land improvements | |||
Property, plant and equipment | |||
Total property, plant and equipment, at cost | 7,119 | 6,928 | 6,214 |
Machinery, equipment and other | |||
Property, plant and equipment | |||
Total property, plant and equipment, at cost | 16,971 | 16,793 | 16,073 |
Equipment leased to others | |||
Property, plant and equipment | |||
Total property, plant and equipment, at cost | 5,596 | 5,365 | 4,658 |
Less: Accumulated depreciation | -1,565 | -1,521 | -1,383 |
Property, plant and equipment - net | 4,031 | 3,844 | 3,275 |
Construction-in-process | |||
Property, plant and equipment | |||
Total property, plant and equipment, at cost | 1,221 | $1,542 | $2,264 |
Minimum | Buildings and land improvements | |||
Property, plant and equipment | |||
Useful Lives (Years) | 20 years | ||
Minimum | Machinery, equipment and other | |||
Property, plant and equipment | |||
Useful Lives (Years) | 3 years | ||
Minimum | Equipment leased to others | |||
Property, plant and equipment | |||
Useful Lives (Years) | 1 year | ||
Maximum | Buildings and land improvements | |||
Property, plant and equipment | |||
Useful Lives (Years) | 45 years | ||
Maximum | Machinery, equipment and other | |||
Property, plant and equipment | |||
Useful Lives (Years) | 10 years | ||
Maximum | Equipment leased to others | |||
Property, plant and equipment | |||
Useful Lives (Years) | 10 years |
Investments_in_unconsolidated_2
Investments in unconsolidated affiliated companies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Results of Operations of unconsolidated affiliated companies: | |||
Sales | $1,662 | $1,336 | $1,084 |
Cost of sales | 1,292 | 1,048 | 872 |
Gross profit | 370 | 288 | 212 |
Profit (loss) | -30 | -28 | 28 |
Assets: | |||
Current assets | 716 | 683 | 715 |
Property, plant and equipment - net | 653 | 710 | 529 |
Other assets | 557 | 608 | 616 |
Assets | 1,926 | 2,001 | 1,860 |
Liabilities: | |||
Current liabilities | 518 | 437 | 443 |
Long-term debt due after one year | 867 | 900 | 708 |
Other liabilities | 215 | 262 | 170 |
Liabilities | 1,600 | 1,599 | 1,321 |
Equity | 326 | 402 | 539 |
Caterpillar's investments in unconsolidated affiliated companies: | |||
Investments in equity method companies | 248 | 262 | 256 |
Plus: Investments in cost method companies | 9 | 10 | 16 |
Total investments in unconsolidated affiliated companies | $257 | $272 | $272 |
Intangible_assets_and_goodwill2
Intangible assets and goodwill (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 31-May-12 | Mar. 31, 2012 |
Intangible assets | ||||||
Weighted Amortizable Life (in years) | 14 years | 13 years | 13 years | |||
Gross Carrying Amount | $4,452 | $4,748 | $4,822 | |||
Accumulated Amortization | -1,376 | -1,170 | -824 | |||
Net | 3,076 | 3,578 | 3,998 | |||
Indefinite-lived intangible assets - In-process research & development | 18 | 18 | ||||
Total intangible assets, net | 3,076 | 3,596 | 4,016 | |||
Total intangible assets, gross carrying amount | 4,452 | 4,766 | 4,840 | |||
Finite-lived intangible assets acquired | 120 | |||||
Impaired indefinite-lived intangible assets | 18 | |||||
Amortization expense | 365 | 371 | 387 | |||
2015 | 345 | |||||
2016 | 323 | |||||
2017 | 322 | |||||
2018 | 320 | |||||
2019 | 318 | |||||
Thereafter | 1,448 | |||||
Johan Walter Berg AB | ||||||
Intangible assets | ||||||
Finite-lived intangible assets acquired | 70 | |||||
ERA Mining Machinery Limited (Siwei) | ||||||
Intangible assets | ||||||
Finite-lived intangible assets acquired | 112 | |||||
Caterpillar Tohoku Ltd. | ||||||
Intangible assets | ||||||
Finite-lived intangible assets acquired | 8 | |||||
Customer relationships | ||||||
Intangible assets | ||||||
Weighted Amortizable Life (in years) | 15 years | 15 years | 15 years | |||
Gross Carrying Amount | 2,489 | 2,653 | 2,756 | |||
Accumulated Amortization | -669 | -539 | -377 | |||
Net | 1,820 | 2,114 | 2,379 | |||
Gross intangible assets reclassified to held for sale and/or divested | 48 | 168 | 207 | |||
Current period accumulated amortization on held for sale or disposed of intangible assets | 9 | 25 | 93 | |||
Impaired finite-lived intangible assets, gross | 51 | |||||
Impaired finite-lived intangible assets, accumulated amortization | -29 | |||||
Finite-lived intangible asset impairment | 22 | |||||
Intellectual property | ||||||
Intangible assets | ||||||
Weighted Amortizable Life (in years) | 11 years | 11 years | 12 years | |||
Gross Carrying Amount | 1,724 | 1,821 | 1,767 | |||
Accumulated Amortization | -578 | -495 | -342 | |||
Net | 1,146 | 1,326 | 1,425 | |||
Other | ||||||
Intangible assets | ||||||
Weighted Amortizable Life (in years) | 11 years | 10 years | 10 years | |||
Gross Carrying Amount | 239 | 274 | 299 | |||
Accumulated Amortization | -129 | -136 | -105 | |||
Net | $110 | $138 | $194 |
Intangible_assets_and_goodwill3
Intangible assets and goodwill (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-12 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 |
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | $7 | $106 | $628 | ||||
Goodwill reclassified to held for sale and/or divested | 15 | 65 | 181 | ||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Goodwill, beginning of year | 7,558 | 7,544 | 7,102 | 7,102 | |||
Impairments, beginning of year | -602 | -602 | -22 | -22 | |||
Net Goodwill, beginning of year | 6,956 | 6,942 | 7,080 | 7,080 | |||
Goodwill acquired | 7 | 106 | 628 | ||||
Held for Sale and Business Divestitures | -15 | -65 | -181 | ||||
Impairment Loss | 0 | 0 | -580 | ||||
Other Adjustments | -254 | -27 | -5 | ||||
Goodwill, end of year | 7,296 | 7,558 | 7,544 | 7,544 | |||
Impairments, end of year | -602 | -602 | -602 | -602 | |||
Net Goodwill, end of year | 6,694 | 6,956 | 6,942 | 6,942 | |||
Johan Walter Berg AB | |||||||
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | 106 | ||||||
Goodwill, Purchase Accounting Adjustments | 7 | ||||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Net Goodwill, beginning of year | 113 | ||||||
Goodwill acquired | 106 | ||||||
Net Goodwill, end of year | 113 | ||||||
ERA Mining Machinery Limited (Siwei) | |||||||
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | 625 | ||||||
Goodwill, Purchase Accounting Adjustments | 149 | ||||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Goodwill acquired | 625 | ||||||
Impairment Loss | -580 | ||||||
Net Goodwill, end of year | 45 | 625 | 45 | ||||
Caterpillar Tohoku Ltd. | |||||||
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | 22 | ||||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Goodwill acquired | 22 | ||||||
Net Goodwill, end of year | 22 | ||||||
Construction Industries | |||||||
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | 0 | 0 | 15 | ||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Goodwill, beginning of year | 291 | 333 | 331 | 331 | |||
Net Goodwill, beginning of year | 291 | 333 | 331 | 331 | |||
Goodwill acquired | 0 | 0 | 15 | ||||
Held for Sale and Business Divestitures | 0 | 0 | 0 | ||||
Impairment Loss | 0 | 0 | 0 | ||||
Other Adjustments | -16 | -42 | -13 | ||||
Goodwill, end of year | 275 | 291 | 333 | 333 | |||
Net Goodwill, end of year | 275 | 291 | 333 | 333 | |||
Resource Industries | |||||||
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | 0 | 0 | 597 | ||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Goodwill, beginning of year | 4,468 | 4,511 | 4,073 | 4,073 | |||
Impairments, beginning of year | -580 | -580 | 0 | 0 | |||
Net Goodwill, beginning of year | 3,888 | 3,931 | 4,073 | 4,073 | |||
Goodwill acquired | 0 | 0 | 597 | ||||
Held for Sale and Business Divestitures | -15 | -55 | -181 | ||||
Impairment Loss | 0 | 0 | -580 | ||||
Other Adjustments | -166 | 12 | 22 | ||||
Goodwill, end of year | 4,287 | 4,468 | 4,511 | 4,511 | |||
Impairments, end of year | -580 | -580 | -580 | -580 | |||
Net Goodwill, end of year | 3,707 | 3,888 | 3,931 | 3,931 | |||
Energy & Transportation | |||||||
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | 7 | 106 | 9 | ||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Goodwill, beginning of year | 2,600 | 2,486 | 2,486 | 2,486 | |||
Net Goodwill, beginning of year | 2,600 | 2,486 | 2,486 | 2,486 | |||
Goodwill acquired | 7 | 106 | 9 | ||||
Held for Sale and Business Divestitures | 0 | -10 | 0 | ||||
Impairment Loss | 0 | 0 | 0 | ||||
Other Adjustments | -65 | 18 | -9 | ||||
Goodwill, end of year | 2,542 | 2,600 | 2,486 | 2,486 | |||
Net Goodwill, end of year | 2,542 | 2,600 | 2,486 | 2,486 | |||
All Other | |||||||
Carrying amount of goodwill by reportable segment | |||||||
Goodwill acquired | 0 | 0 | 7 | ||||
Changes in carrying amount of goodwill by reportable segment: | |||||||
Goodwill, beginning of year | 199 | 214 | 212 | 212 | |||
Impairments, beginning of year | -22 | -22 | -22 | -22 | |||
Net Goodwill, beginning of year | 177 | 192 | 190 | 190 | |||
Goodwill acquired | 0 | 0 | 7 | ||||
Held for Sale and Business Divestitures | 0 | 0 | 0 | ||||
Impairment Loss | 0 | 0 | 0 | ||||
Other Adjustments | -7 | -15 | -5 | ||||
Goodwill, end of year | 192 | 199 | 214 | 214 | |||
Impairments, end of year | -22 | -22 | -22 | -22 | |||
Net Goodwill, end of year | $170 | $177 | $192 | $192 |
Availableforsale_securities_De
Available-for-sale securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | $1,421 | $1,438 | $1,479 |
Unrealized pretax net gains (losses) | 133 | 132 | 107 |
Fair Value | 1,554 | 1,570 | 1,586 |
U.S. treasury bonds | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 10 | 10 | 10 |
Unrealized pretax net gains (losses) | 0 | 0 | 0 |
Fair Value | 10 | 10 | 10 |
Other U.S. and non-U.S. government bonds | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 94 | 119 | 144 |
Unrealized pretax net gains (losses) | 0 | 1 | 2 |
Fair Value | 94 | 120 | 146 |
Corporate bonds | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 677 | 612 | 626 |
Unrealized pretax net gains (losses) | 16 | 21 | 38 |
Fair Value | 693 | 633 | 664 |
Asset-backed securities | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 103 | 72 | 96 |
Unrealized pretax net gains (losses) | 2 | 0 | 0 |
Fair Value | 105 | 72 | 96 |
U.S. governmental agency mortgage-backed securities | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 292 | 322 | 291 |
Unrealized pretax net gains (losses) | 2 | -1 | 8 |
Fair Value | 294 | 321 | 299 |
Residential | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 15 | 18 | 26 |
Unrealized pretax net gains (losses) | 0 | 0 | -1 |
Fair Value | 15 | 18 | 25 |
Commercial | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 63 | 87 | 117 |
Unrealized pretax net gains (losses) | 4 | 6 | 10 |
Fair Value | 67 | 93 | 127 |
Large capitalization value | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 150 | 173 | 147 |
Unrealized pretax net gains (losses) | 83 | 81 | 38 |
Fair Value | 233 | 254 | 185 |
Smaller company growth | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 17 | 25 | 22 |
Unrealized pretax net gains (losses) | 26 | 24 | 12 |
Fair Value | $43 | $49 | $34 |
Availableforsale_securities_De1
Available-for-sale securities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Less than 12 months | |||
Fair Value | $244 | $305 | $109 |
Unrealized Losses | 3 | 6 | 3 |
12 months or more | |||
Fair Value | 173 | 86 | 59 |
Unrealized Losses | 3 | 3 | 5 |
Total | |||
Fair Value | 417 | 391 | 168 |
Unrealized Losses | 6 | 9 | 8 |
Corporate bonds | |||
Less than 12 months | |||
Fair Value | 195 | 159 | |
Unrealized Losses | 1 | 2 | |
12 months or more | |||
Fair Value | 32 | 1 | |
Unrealized Losses | 0 | 0 | |
Total | |||
Fair Value | 227 | 160 | |
Unrealized Losses | 1 | 2 | |
Asset-backed securities | |||
Less than 12 months | |||
Fair Value | 6 | 0 | |
Unrealized Losses | 0 | 0 | |
12 months or more | |||
Fair Value | 20 | 20 | |
Unrealized Losses | 1 | 3 | |
Total | |||
Fair Value | 26 | 20 | |
Unrealized Losses | 1 | 3 | |
U.S. governmental agency mortgage-backed securities | |||
Less than 12 months | |||
Fair Value | 34 | 140 | 84 |
Unrealized Losses | 0 | 4 | 1 |
12 months or more | |||
Fair Value | 140 | 65 | 15 |
Unrealized Losses | 3 | 2 | 0 |
Total | |||
Fair Value | 174 | 205 | 99 |
Unrealized Losses | 3 | 6 | 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 | 2 | 2 | |
12 months or more | |||
Fair Value | 1 | 10 | |
Unrealized Losses | 0 | 1 | |
Total | |||
Fair Value | 16 | 35 | |
Unrealized Losses | $2 | $3 |
Availableforsale_securities_De2
Available-for-sale securities (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Due in one year or less, Cost Basis | $72 | ||
Due after one year through five years, Cost Basis | 744 | ||
Due after five years through ten years, Cost Basis | 41 | ||
Due after ten years, Cost Basis | 27 | ||
Due in one year or less, Fair Value | 73 | ||
Due after one year through five years, Fair Value | 760 | ||
Due after five years through ten years, Fair Value | 42 | ||
Due after ten years, Fair Value | 27 | ||
Cost Basis | 1,254 | ||
Fair Value | 1,278 | ||
Schedule of Available-for-sale Securities | |||
Cost Basis | 1,421 | 1,438 | 1,479 |
Fair Value | 1,554 | 1,570 | 1,586 |
Available-for-sale Securities, Proceeds, Gains and Losses | |||
Proceeds from the sale of available-for-sale securities | 434 | 449 | 306 |
Gross gains from the sale of available-for-sale securities | 38 | 22 | 6 |
Gross losses from the sale of available-for-sale securities | 2 | 2 | 0 |
U.S. governmental agency mortgage-backed securities | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 292 | 322 | 291 |
Fair Value | 294 | 321 | 299 |
Residential | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 15 | 18 | 26 |
Fair Value | 15 | 18 | 25 |
Commercial | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 63 | 87 | 117 |
Fair Value | $67 | $93 | $127 |
Postemployment_benefit_plans_D
Postemployment benefit plans (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Feb. 29, 2012 | Aug. 31, 2012 |
Amendments to Pension and Other Postretirement Benefit Plans | ||
Net gain due to facility closure | $6 | |
U.S. Pension Benefits | ||
Amendments to Pension and Other Postretirement Benefit Plans | ||
Curtailments, settlements and termination benefits | 7 | |
Net increase in liability due to curtailment and remeasurement | 243 | |
Decrease (increase) in accumulated other comprehensive income | 153 | |
Non-U.S. Pension Benefits | ||
Amendments to Pension and Other Postretirement Benefit Plans | ||
Curtailments, settlements and termination benefits | 10 | |
Other Postretirement Benefits | ||
Amendments to Pension and Other Postretirement Benefit Plans | ||
Curtailments, settlements and termination benefits | -37 | |
Defined benefit plan loss of third party receivable | $21 |
Postemployment_benefit_plans_D1
Postemployment benefit plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | $14,419 | $15,913 | $14,782 |
Service cost | 157 | 196 | 185 |
Interest cost | 648 | 581 | 609 |
Plan amendments | 0 | 0 | 0 |
Actuarial losses (gains) | 1,994 | -1,450 | 1,168 |
Foreign currency exchange rates | 0 | 0 | 0 |
Participant contributions | 0 | 0 | 0 |
Benefits paid - gross | -963 | -845 | -831 |
Less: federal subsidy on benefits paid | 0 | 0 | 0 |
Curtailments, settlements and termination benefits | -6 | -7 | 0 |
Acquisitions, divestitures and other | 0 | 31 | 0 |
Benefit obligation, end of year | 16,249 | 14,419 | 15,913 |
Accumulated benefit obligation, end of year | 15,701 | 14,056 | 15,132 |
Weighted-average assumptions used to determine benefit obligation: | |||
Discount rate (as a percent) | 3.80% | 4.60% | 3.70% |
Rate of compensation increase (as a percent) | 4.00% | 4.00% | 4.50% |
Non-U.S. Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 4,609 | 4,737 | 4,299 |
Service cost | 109 | 120 | 108 |
Interest cost | 185 | 166 | 182 |
Plan amendments | 0 | 0 | 12 |
Actuarial losses (gains) | 604 | -41 | 385 |
Foreign currency exchange rates | -436 | -81 | 49 |
Participant contributions | 9 | 10 | 9 |
Benefits paid - gross | -206 | -254 | -190 |
Less: federal subsidy on benefits paid | 0 | 0 | 0 |
Curtailments, settlements and termination benefits | -53 | -56 | -67 |
Acquisitions, divestitures and other | -20 | 8 | -50 |
Benefit obligation, end of year | 4,801 | 4,609 | 4,737 |
Accumulated benefit obligation, end of year | 4,408 | 4,247 | 4,329 |
Weighted-average assumptions used to determine benefit obligation: | |||
Discount rate (as a percent) | 3.30% | 4.10% | 3.70% |
Rate of compensation increase (as a percent) | 4.00% | 4.20% | 3.90% |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 4,784 | 5,453 | 5,381 |
Service cost | 82 | 108 | 92 |
Interest cost | 213 | 195 | 221 |
Plan amendments | -1 | 1 | -38 |
Actuarial losses (gains) | 196 | -658 | 186 |
Foreign currency exchange rates | -30 | -19 | -11 |
Participant contributions | 61 | 57 | 48 |
Benefits paid - gross | -377 | -339 | -394 |
Less: federal subsidy on benefits paid | 14 | 8 | 16 |
Curtailments, settlements and termination benefits | -4 | 0 | -48 |
Acquisitions, divestitures and other | 0 | -22 | 0 |
Benefit obligation, end of year | 4,938 | 4,784 | 5,453 |
Weighted-average assumptions used to determine benefit obligation: | |||
Discount rate (as a percent) | 3.90% | 4.60% | 3.70% |
Rate of compensation increase (as a percent) | 4.00% | 4.00% | 4.40% |
Effect of a one-percentage-point change in assumed health care cost trend | |||
Effect of a one-percentage-point increase in current year service and interest cost components of other postretirement benefit cost | 24 | ||
Effect of a one-percentage-point decrease in current year service and interest cost components of other postretirement benefit cost | -20 | ||
Effect of a one-percentage-point increase on accumulated postretirement benefit obligation | 298 | ||
Effect of a one-percentage-point decrease on accumulated postretirement benefit obligation | ($245) |
Postemployment_benefit_plans_D2
Postemployment benefit plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Pension Benefits | |||
Change in plan assets: | |||
Fair value of plan assets, beginning of year | $12,395 | $10,981 | $9,997 |
Actual return on plan assets | 849 | 1,722 | 1,235 |
Foreign currency exchange rates | 0 | 0 | 0 |
Company contributions | 255 | 541 | 580 |
Participant contributions | 0 | 0 | 0 |
Benefits paid | -963 | -845 | -831 |
Settlements and termination benefits | -6 | -4 | 0 |
Acquisitions, divestitures and other | 0 | 0 | 0 |
Fair value of plan assets, end of year | 12,530 | 12,395 | 10,981 |
Information about plan asset allocations | |||
Rebalancing of plan assets outside of target allocation (as a percent) | 5.00% | ||
U.S. Pension Benefits | Equities | |||
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 50.00% | ||
U.S. Pension Benefits | Debt securities | |||
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 50.00% | ||
U.S. Pension Benefits | Real estate | |||
Change in plan assets: | |||
Fair value of plan assets, end of year | 9 | 8 | 8 |
Non-U.S. Pension Benefits | |||
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 3,949 | 3,426 | 2,818 |
Actual return on plan assets | 507 | 535 | 368 |
Foreign currency exchange rates | -352 | -41 | 47 |
Company contributions | 265 | 303 | 446 |
Participant contributions | 9 | 10 | 9 |
Benefits paid | -206 | -254 | -190 |
Settlements and termination benefits | -50 | -30 | -72 |
Acquisitions, divestitures and other | -22 | 0 | 0 |
Fair value of plan assets, end of year | 4,100 | 3,949 | 3,426 |
Non-U.S. Pension Benefits | Equities | |||
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 46.00% | ||
Non-U.S. Pension Benefits | Debt securities | |||
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 46.00% | ||
Non-U.S. Pension Benefits | Real estate | |||
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 247 | ||
Fair value of plan assets, end of year | 230 | 218 | |
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 6.00% | ||
Non-U.S. Pension Benefits | Other | |||
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 2.00% | ||
Other Postretirement Benefits | |||
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 822 | 789 | 814 |
Actual return on plan assets | 75 | 158 | 117 |
Foreign currency exchange rates | 0 | 0 | 0 |
Company contributions | 195 | 157 | 204 |
Participant contributions | 61 | 57 | 48 |
Benefits paid | -377 | -339 | -394 |
Settlements and termination benefits | 0 | 0 | 0 |
Acquisitions, divestitures and other | 0 | 0 | 0 |
Fair value of plan assets, end of year | $776 | $822 | $789 |
Other Postretirement Benefits | Equities | |||
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 70.00% | ||
Other Postretirement Benefits | Debt securities | |||
Information about plan asset allocations | |||
Target allocation of plan assets (as a percent) | 30.00% |
Postemployment_benefit_plans_D3
Postemployment benefit plans (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
U.S. Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | $12,530 | $12,395 | $10,981 | $9,997 |
Caterpillar Inc. common stock | 0 | 495 | 597 | |
Percentage of Caterpillar common stock to total plan assets | 4.00% | 5.00% | ||
U.S. Pension Benefits | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 3,875 | 4,466 | 4,561 | |
U.S. Pension Benefits | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 2,304 | 3,058 | 2,693 | |
U.S. Pension Benefits | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 4,010 | 2,157 | 1,513 | |
U.S. Pension Benefits | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 552 | 347 | 241 | |
U.S. Pension Benefits | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 528 | 774 | 702 | |
U.S. Pension Benefits | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 754 | 905 | 795 | |
U.S. Pension Benefits | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 64 | 52 | 36 | |
U.S. Pension Benefits | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 9 | 8 | 8 | |
U.S. Pension Benefits | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 434 | 628 | 432 | |
U.S. Pension Benefits | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 6,041 | 7,417 | 7,164 | |
U.S. Pension Benefits | Level 1 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 3,713 | 4,337 | 4,460 | |
U.S. Pension Benefits | Level 1 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 2,291 | 3,058 | 2,691 | |
U.S. Pension Benefits | Level 1 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
U.S. Pension Benefits | Level 1 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
U.S. Pension Benefits | Level 1 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
U.S. Pension Benefits | Level 1 | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
U.S. Pension Benefits | Level 1 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
U.S. Pension Benefits | Level 1 | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
U.S. Pension Benefits | Level 1 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 37 | 22 | 13 | |
U.S. Pension Benefits | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 6,289 | 4,787 | 3,666 | |
U.S. Pension Benefits | Level 2 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 1 | 0 | 3 | |
U.S. Pension Benefits | Level 2 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 12 | 0 | 2 | |
U.S. Pension Benefits | Level 2 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 3,985 | 2,123 | 1,490 | |
U.S. Pension Benefits | Level 2 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 552 | 327 | 231 | |
U.S. Pension Benefits | Level 2 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 528 | 774 | 694 | |
U.S. Pension Benefits | Level 2 | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 752 | 905 | 794 | |
U.S. Pension Benefits | Level 2 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 62 | 52 | 33 | |
U.S. Pension Benefits | Level 2 | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
U.S. Pension Benefits | Level 2 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 397 | 606 | 419 | |
U.S. Pension Benefits | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 200 | 191 | 151 | |
U.S. Pension Benefits | Level 3 | Equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 162 | 129 | 98 | 77 |
U.S. Pension Benefits | Level 3 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 161 | 129 | 98 | |
U.S. Pension Benefits | Level 3 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 1 | 0 | 0 | |
U.S. Pension Benefits | Level 3 | Fixed income securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 29 | 54 | 45 | 51 |
U.S. Pension Benefits | Level 3 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 25 | 34 | 23 | |
U.S. Pension Benefits | Level 3 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 20 | 10 | |
U.S. Pension Benefits | Level 3 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 8 | |
U.S. Pension Benefits | Level 3 | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 2 | 0 | 1 | |
U.S. Pension Benefits | Level 3 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 2 | 0 | 3 | |
U.S. Pension Benefits | Level 3 | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 9 | 8 | 8 | 8 |
U.S. Pension Benefits | Level 3 | Other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | 0 |
U.S. Pension Benefits | Level 3 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 4,100 | 3,949 | 3,426 | 2,818 |
Caterpillar Inc. common stock | 0 | 0 | 1 | |
Non-U.S. Pension Benefits | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 552 | 608 | 438 | |
Non-U.S. Pension Benefits | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 1,044 | 1,182 | 1,156 | |
Non-U.S. Pension Benefits | Global equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 270 | 289 | 271 | |
Non-U.S. Pension Benefits | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 90 | 93 | 40 | |
Non-U.S. Pension Benefits | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 505 | 546 | 496 | |
Non-U.S. Pension Benefits | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 1 | 3 | 3 | |
Non-U.S. Pension Benefits | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 836 | 418 | 169 | |
Non-U.S. Pension Benefits | Global fixed income | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 363 | 397 | 403 | |
Non-U.S. Pension Benefits | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 230 | 247 | 218 | |
Non-U.S. Pension Benefits | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 209 | 166 | 232 | |
Non-U.S. Pension Benefits | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 1,723 | 2,005 | 1,903 | |
Non-U.S. Pension Benefits | Level 1 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 552 | 607 | 436 | |
Non-U.S. Pension Benefits | Level 1 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 794 | 1,022 | 1,038 | |
Non-U.S. Pension Benefits | Level 1 | Global equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 218 | 235 | 244 | |
Non-U.S. Pension Benefits | Level 1 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 1 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 1 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 1 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 1 | Global fixed income | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 1 | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 1 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 159 | 141 | 185 | |
Non-U.S. Pension Benefits | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 2,318 | 1,812 | 1,414 | |
Non-U.S. Pension Benefits | Level 2 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 1 | 2 | |
Non-U.S. Pension Benefits | Level 2 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 250 | 160 | 118 | |
Non-U.S. Pension Benefits | Level 2 | Global equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 52 | 54 | 27 | |
Non-U.S. Pension Benefits | Level 2 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 81 | 84 | 37 | |
Non-U.S. Pension Benefits | Level 2 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 503 | 534 | 494 | |
Non-U.S. Pension Benefits | Level 2 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 1 | 3 | 3 | |
Non-U.S. Pension Benefits | Level 2 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 836 | 418 | 169 | |
Non-U.S. Pension Benefits | Level 2 | Global fixed income | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 363 | 397 | 403 | |
Non-U.S. Pension Benefits | Level 2 | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 182 | 136 | 114 | |
Non-U.S. Pension Benefits | Level 2 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 50 | 25 | 47 | |
Non-U.S. Pension Benefits | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 59 | 132 | 109 | |
Non-U.S. Pension Benefits | Level 3 | Equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | 0 |
Non-U.S. Pension Benefits | Level 3 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | Global equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | Fixed income securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 11 | 21 | 5 | 9 |
Non-U.S. Pension Benefits | Level 3 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 9 | 9 | 3 | |
Non-U.S. Pension Benefits | Level 3 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 2 | 12 | 2 | |
Non-U.S. Pension Benefits | Level 3 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | Global fixed income | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | Real estate | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 48 | 111 | 104 | 97 |
Non-U.S. Pension Benefits | Level 3 | Other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | 0 |
Non-U.S. Pension Benefits | Level 3 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 776 | 822 | 789 | 814 |
Caterpillar Inc. common stock | 0 | 0 | 1 | |
Other Postretirement Benefits | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 392 | 388 | 387 | |
Other Postretirement Benefits | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 159 | 189 | 194 | |
Other Postretirement Benefits | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 103 | 101 | 70 | |
Other Postretirement Benefits | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 17 | 17 | 11 | |
Other Postretirement Benefits | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 30 | 23 | 27 | |
Other Postretirement Benefits | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 50 | 49 | 33 | |
Other Postretirement Benefits | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 3 | 2 | 2 | |
Other Postretirement Benefits | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 22 | 53 | 65 | |
Other Postretirement Benefits | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 559 | 585 | 599 | |
Other Postretirement Benefits | Level 1 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 392 | 388 | 387 | |
Other Postretirement Benefits | Level 1 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 158 | 189 | 194 | |
Other Postretirement Benefits | Level 1 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 1 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 1 | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 9 | 8 | 18 | |
Other Postretirement Benefits | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 217 | 237 | 190 | |
Other Postretirement Benefits | Level 2 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 1 | 0 | 0 | |
Other Postretirement Benefits | Level 2 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 103 | 101 | 70 | |
Other Postretirement Benefits | Level 2 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 17 | 17 | 11 | |
Other Postretirement Benefits | Level 2 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 30 | 23 | 27 | |
Other Postretirement Benefits | Level 2 | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 50 | 49 | 33 | |
Other Postretirement Benefits | Level 2 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 3 | 2 | 2 | |
Other Postretirement Benefits | Level 2 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 13 | 45 | 47 | |
Other Postretirement Benefits | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Non-U.S. equities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Non-U.S. corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | U.S. governmental agency mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Non-U.S. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | 0 | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Cash, short-term instruments and other | ||||
Defined Benefit Plan Disclosure | ||||
Total Assets, at Fair Value | $0 | $0 | $0 |
Postemployment_benefit_plans_D4
Postemployment benefit plans (Details 5) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Pension Benefits | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | $9,997 | |||
Fair value of plan assets, end of year | 12,530 | 12,395 | 10,981 | 9,997 |
U.S. Pension Benefits | Real estate | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, end of year | 9 | 8 | 8 | |
U.S. Pension Benefits | Level 3 | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, end of year | 200 | 191 | 151 | |
U.S. Pension Benefits | Level 3 | Equities | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 129 | 98 | 77 | |
Unrealized gains (losses) | 1 | 10 | -4 | |
Realized gains (losses) | 19 | 4 | 4 | |
Purchases, issuances and settlements | 13 | 17 | 21 | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Fair value of plan assets, end of year | 162 | 129 | 98 | |
U.S. Pension Benefits | Level 3 | Fixed income securities | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 54 | 45 | 51 | |
Unrealized gains (losses) | 0 | -1 | 0 | |
Realized gains (losses) | 3 | 0 | 2 | |
Purchases, issuances and settlements | -23 | 12 | -4 | |
Transfers in and/or out of Level 3 | -5 | -2 | -4 | |
Fair value of plan assets, end of year | 29 | 54 | 45 | |
U.S. Pension Benefits | Level 3 | Real estate | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 8 | 8 | 8 | |
Unrealized gains (losses) | 1 | 0 | 0 | |
Realized gains (losses) | 0 | 0 | 0 | |
Purchases, issuances and settlements | 0 | 0 | 0 | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Fair value of plan assets, end of year | 9 | 8 | 8 | |
U.S. Pension Benefits | Level 3 | Other | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 0 | 0 | 0 | |
Unrealized gains (losses) | 0 | 0 | -1 | |
Realized gains (losses) | 0 | 0 | 0 | |
Purchases, issuances and settlements | 0 | 0 | 1 | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 2,818 | |||
Fair value of plan assets, end of year | 4,100 | 3,949 | 3,426 | 2,818 |
Non-U.S. Pension Benefits | Real estate | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, end of year | 230 | 247 | 218 | |
Non-U.S. Pension Benefits | Level 3 | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, end of year | 59 | 132 | 109 | |
Non-U.S. Pension Benefits | Level 3 | Equities | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 0 | 0 | 0 | |
Unrealized gains (losses) | 0 | 0 | 0 | |
Realized gains (losses) | 0 | 0 | 0 | |
Purchases, issuances and settlements | 0 | 0 | 0 | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | Fixed income securities | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 21 | 5 | 9 | |
Unrealized gains (losses) | -1 | 0 | 0 | |
Realized gains (losses) | 0 | 0 | 0 | |
Purchases, issuances and settlements | -1 | 16 | -1 | |
Transfers in and/or out of Level 3 | -8 | 0 | -3 | |
Fair value of plan assets, end of year | 11 | 21 | 5 | |
Non-U.S. Pension Benefits | Level 3 | Real estate | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 111 | 104 | 97 | |
Unrealized gains (losses) | -23 | 7 | 8 | |
Realized gains (losses) | 22 | 0 | 0 | |
Purchases, issuances and settlements | -62 | 0 | -1 | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Fair value of plan assets, end of year | 48 | 111 | 104 | |
Non-U.S. Pension Benefits | Level 3 | Other | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 0 | 0 | 0 | |
Unrealized gains (losses) | 0 | 0 | 0 | |
Realized gains (losses) | 0 | 0 | 0 | |
Purchases, issuances and settlements | 0 | 0 | 0 | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 | |
Other Postretirement Benefits | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, beginning of year | 814 | |||
Fair value of plan assets, end of year | 776 | 822 | 789 | 814 |
Other Postretirement Benefits | Level 3 | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets, end of year | $0 | $0 | $0 |
Postemployment_benefit_plans_D5
Postemployment benefit plans (Details 6) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Pension Benefits | ||||
Funded Status, end of year | ||||
Fair value of plan assets, end of year | $12,530 | $12,395 | $10,981 | $9,997 |
Benefit obligations, end of year | 16,249 | 14,419 | 15,913 | 14,782 |
Over (under) funded status recognized in financial position | -3,719 | -2,024 | -4,932 | |
Components of net amount recognized in financial position: | ||||
Other assets (non-current asset) | 3 | 5 | 0 | |
Accrued wages, salaries and employee benefits (current liability) | -28 | -26 | -23 | |
Liability for postemployment benefits (non-current liability) | -3,694 | -2,003 | -4,909 | |
Net liability recognized | -3,719 | -2,024 | -4,932 | |
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: | ||||
Net actuarial loss (gain) | 6,034 | 4,396 | 7,286 | |
Prior service cost (credit) | 2 | 19 | 36 | |
Transition obligation (asset) | 0 | 0 | 0 | |
Total | 6,036 | 4,415 | 7,322 | |
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year | ||||
Net actuarial loss (gain) | 507 | |||
Prior service cost (credit) | 1 | |||
Total | 508 | |||
Pension plans with projected benefit obligations in excess of plan assets | ||||
Projected benefit obligation | 16,182 | 14,352 | 15,913 | |
Accumulated benefit obligation | 15,634 | 13,989 | 15,132 | |
Fair value of plan assets | 12,460 | 12,323 | 10,981 | |
Pension plans with accumulated benefit obligations in excess of plan assets | ||||
Projected benefit obligation | 16,182 | 14,352 | 15,913 | |
Accumulated benefit obligation | 15,634 | 13,989 | 15,132 | |
Fair value of plan assets | 12,460 | 12,323 | 10,981 | |
Non-U.S. Pension Benefits | ||||
Funded Status, end of year | ||||
Fair value of plan assets, end of year | 4,100 | 3,949 | 3,426 | 2,818 |
Benefit obligations, end of year | 4,801 | 4,609 | 4,737 | 4,299 |
Over (under) funded status recognized in financial position | -701 | -660 | -1,311 | |
Components of net amount recognized in financial position: | ||||
Other assets (non-current asset) | 144 | 123 | 30 | |
Accrued wages, salaries and employee benefits (current liability) | -24 | -29 | -27 | |
Liability for postemployment benefits (non-current liability) | -821 | -754 | -1,314 | |
Net liability recognized | -701 | -660 | -1,311 | |
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: | ||||
Net actuarial loss (gain) | 1,494 | 1,373 | 1,907 | |
Prior service cost (credit) | 9 | 13 | 22 | |
Transition obligation (asset) | 0 | 0 | 0 | |
Total | 1,503 | 1,386 | 1,929 | |
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year | ||||
Net actuarial loss (gain) | 101 | |||
Prior service cost (credit) | 0 | |||
Total | 101 | |||
Pension plans with projected benefit obligations in excess of plan assets | ||||
Projected benefit obligation | 4,539 | 4,177 | 4,310 | |
Accumulated benefit obligation | 4,148 | 3,820 | 3,903 | |
Fair value of plan assets | 3,695 | 3,394 | 2,969 | |
Pension plans with accumulated benefit obligations in excess of plan assets | ||||
Projected benefit obligation | 1,879 | 1,436 | 4,107 | |
Accumulated benefit obligation | 1,734 | 1,374 | 3,752 | |
Fair value of plan assets | 1,068 | 797 | 2,806 | |
Other Postretirement Benefits | ||||
Funded Status, end of year | ||||
Fair value of plan assets, end of year | 776 | 822 | 789 | 814 |
Benefit obligations, end of year | 4,938 | 4,784 | 5,453 | 5,381 |
Over (under) funded status recognized in financial position | -4,162 | -3,962 | -4,664 | |
Components of net amount recognized in financial position: | ||||
Other assets (non-current asset) | 0 | 0 | 0 | |
Accrued wages, salaries and employee benefits (current liability) | -160 | -169 | -169 | |
Liability for postemployment benefits (non-current liability) | -4,002 | -3,793 | -4,495 | |
Net liability recognized | -4,162 | -3,962 | -4,664 | |
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: | ||||
Net actuarial loss (gain) | 800 | 662 | 1,528 | |
Prior service cost (credit) | -31 | -84 | -159 | |
Transition obligation (asset) | 0 | 0 | 3 | |
Total | 769 | 578 | 1,372 | |
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year | ||||
Net actuarial loss (gain) | 53 | |||
Prior service cost (credit) | -55 | |||
Total | ($2) |
Postemployment_benefit_plans_D6
Postemployment benefit plans (Details 7) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
U.S. Pension Benefits | |
Expected cash flow for pension and other Postretirement benefit plans | |
Employer contribution expected for 2015 | $30 |
Expected benefit payments for 2015 | 890 |
Expected benefit payments for 2016 | 910 |
Expected benefit payments for 2017 | 920 |
Expected benefit payments for 2018 | 930 |
Expected benefit payments for 2019 | 940 |
Expected benefit payments from 2020-2024 | 4,790 |
Total expected benefit payments | 9,380 |
Non-U.S. Pension Benefits | |
Expected cash flow for pension and other Postretirement benefit plans | |
Employer contribution expected for 2015 | 160 |
Expected benefit payments for 2015 | 220 |
Expected benefit payments for 2016 | 200 |
Expected benefit payments for 2017 | 190 |
Expected benefit payments for 2018 | 190 |
Expected benefit payments for 2019 | 200 |
Expected benefit payments from 2020-2024 | 1,140 |
Total expected benefit payments | 2,140 |
Other Postretirement Benefits | |
Expected cash flow for pension and other Postretirement benefit plans | |
Employer contribution expected for 2015 | 200 |
Expected benefit payments for 2015 | 320 |
Expected benefit payments for 2016 | 320 |
Expected benefit payments for 2017 | 320 |
Expected benefit payments for 2018 | 330 |
Expected benefit payments for 2019 | 330 |
Expected benefit payments from 2020-2024 | 1,630 |
Total expected benefit payments | 3,250 |
Other postretirement benefits, Medicare Part D subsidy expected | |
Other postretirement benefits, Medicare Part D subsidy expected in 2015 | 15 |
Other postretirement benefits, Medicare Part D subsidy expected in 2016 | 15 |
Other postretirement benefits, Medicare Part D subsidy expected in 2017 | 15 |
Other postretirement benefits, Medicare Part D subsidy expected in 2018 | 15 |
Other postretirement benefits, Medicare Part D subsidy expected in 2019 | 20 |
Other postretirement benefits, Medicare Part D subsidy expected from 2020-2024 | 95 |
Total expected Medicare D subsidy receipts | $175 |
Postemployment_benefit_plans_D7
Postemployment benefit plans (Details 8) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Pension Benefits | |||
Components of net periodic benefit cost: | |||
Service cost | $157 | $196 | $185 |
Interest cost | 648 | 581 | 609 |
Expected return on plan assets | -885 | -832 | -812 |
Other adjustments | 0 | 31 | 0 |
Curtailments, settlements and termination benefits | 0 | 0 | 7 |
Amortization of: | |||
Transition obligation / (asset) | 0 | 0 | 0 |
Prior service cost / (credit) | 17 | 18 | 19 |
Net actuarial loss / (gain) | 392 | 546 | 504 |
Total cost included in operating profit | 329 | 540 | 512 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): | |||
Current year actuarial loss (gain) | 2,030 | -2,344 | 745 |
Amortization of actuarial (loss) gain | -392 | -546 | -504 |
Current year prior service cost (credit) | 0 | 0 | -7 |
Amortization of prior service (cost) credit | -17 | -18 | -19 |
Amortization of transition (obligation) asset | 0 | 0 | 0 |
Total recognized in other comprehensive income | 1,621 | -2,908 | 215 |
Total recognized in net periodic cost and other comprehensive income | 1,950 | -2,368 | 727 |
Weighted-average assumptions used to determine net cost: | |||
Discount rate (as a percent) | 4.60% | 3.70% | 4.30% |
Expected return on plan assets (as a percent) | 7.80% | 7.80% | 8.00% |
Rate of compensation increase (as a percent) | 4.00% | 4.50% | 4.50% |
Expected return on plan assets, next fiscal year (as a percent) | 7.40% | ||
Percentage of the highest and lowest yielding bonds that were excluded from the discount rate calculation (as a percent) | 10.00% | ||
Additional percentage amount added to long-term passive rate of returns to arrive at the long-term expected rate of return (as a percent) | 1.00% | 1.00% | 1.00% |
Non-U.S. Pension Benefits | |||
Components of net periodic benefit cost: | |||
Service cost | 109 | 120 | 108 |
Interest cost | 185 | 166 | 182 |
Expected return on plan assets | -258 | -225 | -215 |
Other adjustments | 0 | 0 | 0 |
Curtailments, settlements and termination benefits | 14 | 2 | 38 |
Amortization of: | |||
Transition obligation / (asset) | 0 | 0 | 0 |
Prior service cost / (credit) | 0 | 1 | 1 |
Net actuarial loss / (gain) | 86 | 128 | 97 |
Total cost included in operating profit | 136 | 192 | 211 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): | |||
Current year actuarial loss (gain) | 207 | -406 | 225 |
Amortization of actuarial (loss) gain | -86 | -128 | -97 |
Current year prior service cost (credit) | -4 | -7 | 10 |
Amortization of prior service (cost) credit | 0 | -1 | -1 |
Amortization of transition (obligation) asset | 0 | 0 | 0 |
Total recognized in other comprehensive income | 117 | -542 | 137 |
Total recognized in net periodic cost and other comprehensive income | 253 | -350 | 348 |
Weighted-average assumptions used to determine net cost: | |||
Discount rate (as a percent) | 4.10% | 3.70% | 4.30% |
Expected return on plan assets (as a percent) | 6.90% | 6.80% | 7.10% |
Rate of compensation increase (as a percent) | 4.20% | 3.90% | 3.90% |
Expected return on plan assets, next fiscal year (as a percent) | 6.80% | ||
Other Postretirement Benefits | |||
Components of net periodic benefit cost: | |||
Service cost | 82 | 108 | 92 |
Interest cost | 213 | 195 | 221 |
Expected return on plan assets | -52 | -56 | -63 |
Other adjustments | 0 | -22 | 0 |
Curtailments, settlements and termination benefits | -2 | 0 | -40 |
Amortization of: | |||
Transition obligation / (asset) | 0 | 2 | 2 |
Prior service cost / (credit) | -55 | -73 | -68 |
Net actuarial loss / (gain) | 41 | 107 | 100 |
Total cost included in operating profit | 227 | 261 | 244 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): | |||
Current year actuarial loss (gain) | 179 | -759 | 133 |
Amortization of actuarial (loss) gain | -41 | -107 | -100 |
Current year prior service cost (credit) | -2 | 2 | -38 |
Amortization of prior service (cost) credit | 55 | 73 | 68 |
Amortization of transition (obligation) asset | 0 | -2 | -2 |
Total recognized in other comprehensive income | 191 | -793 | 61 |
Total recognized in net periodic cost and other comprehensive income | $418 | ($532) | $305 |
Weighted-average assumptions used to determine net cost: | |||
Discount rate (as a percent) | 4.60% | 3.70% | 4.30% |
Expected return on plan assets (as a percent) | 7.80% | 7.80% | 8.00% |
Rate of compensation increase (as a percent) | 4.00% | 4.40% | 4.40% |
Assumed increase in health care trend rate | |||
Assumed increase in health care trend rate over the current period to calculate benefit expenses (as a percent) | 6.60% | ||
Assumed increase in health care trend rate for the next year to calculate benefit expenses (as a percent) | 6.60% | ||
Year that heath care trend rate is assumed to reach ultimate trend rate (year) | 2021 | ||
Ultimate health care cost trend rate (as a percent) | 5.00% | ||
General inflation rate that forms a part of ultimate health care trend rate (as a percent) | 3.00% | ||
Additional healthcare inflation rate that forms a part of ultimate health care trend rate (as a percent) | 2.00% |
Postemployment_benefit_plans_D8
Postemployment benefit plans (Details 9) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined contribution plans | |||
Costs related to defined contribution plans | $386 | $372 | $320 |
U.S. Plans | |||
Defined contribution plans | |||
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans | 100.00% | ||
Employee compensation percentage contributed to defined contribution plan eligible for employer matching contributions | 6.00% | ||
New annual employer contribution, percentage of compensation, low end of range | 3.00% | ||
New annual employer contribution, percentage of compensation, high end of range | 5.00% | ||
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans for employees accruing benefits under a defined benefit plan | 50.00% | ||
Compensation percentage contributed to defined contribution plan eligible for employer matching contributions, for employees accruing benefits under defined benefit pension plan | 6.00% | ||
Costs related to defined contribution plans | 301 | 308 | 260 |
Non-U.S. Plans | |||
Defined contribution plans | |||
Costs related to defined contribution plans | $85 | $64 | $60 |
Postemployment_benefit_plans_D9
Postemployment benefit plans (Details 10) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Summary of long-term liability: | |||
Postretirement benefits other than pensions | $4,002 | $3,793 | $4,495 |
Other postemployment benefits | 112 | 99 | 81 |
Defined contribution | 334 | 324 | 286 |
Liability for postemployment benefits, long term | 8,963 | 6,973 | 11,085 |
Pension plans | |||
Summary of long-term liability: | |||
Pensions | 4,515 | 2,757 | 6,223 |
U.S. Pension Benefits | |||
Summary of long-term liability: | |||
Pensions | 3,694 | 2,003 | 4,909 |
Non-U.S. Pension Benefits | |||
Summary of long-term liability: | |||
Pensions | $821 | $754 | $1,314 |
Shortterm_borrowings_Details
Short-term borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Short-term borrowings: | |||
Short-term borrowings | $4,708 | $3,679 | $5,287 |
Notes payable to banks | |||
Short-term borrowings: | |||
Weighted-average interest rates on short-term borrowings (as a percent) | 6.80% | 6.30% | 5.80% |
Commercial paper | |||
Short-term borrowings: | |||
Weighted-average interest rates on short-term borrowings (as a percent) | 0.30% | 0.50% | 0.60% |
Demand notes | |||
Short-term borrowings: | |||
Weighted-average interest rates on short-term borrowings (as a percent) | 0.80% | 0.80% | 0.80% |
Machinery, Energy & Transportation | |||
Short-term borrowings: | |||
Short-term borrowings | 9 | 16 | 636 |
Machinery, Energy & Transportation | Notes payable to banks | |||
Short-term borrowings: | |||
Short-term borrowings | 9 | 16 | 484 |
Machinery, Energy & Transportation | Notes payable to former shareholders of Siwei | |||
Short-term borrowings: | |||
Short-term borrowings | 0 | 0 | 152 |
Machinery, Energy & Transportation | Commercial paper | |||
Short-term borrowings: | |||
Short-term borrowings | 0 | 0 | 0 |
Financial Products | |||
Short-term borrowings: | |||
Short-term borrowings | 4,699 | 3,663 | 4,651 |
Financial Products | Notes payable to banks | |||
Short-term borrowings: | |||
Short-term borrowings | 411 | 545 | 418 |
Financial Products | Commercial paper | |||
Short-term borrowings: | |||
Short-term borrowings | 3,688 | 2,502 | 3,654 |
Financial Products | Demand notes | |||
Short-term borrowings: | |||
Short-term borrowings | $600 | $616 | $579 |
Longterm_debt_Details
Long-term debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Long-term Debt | |||
Total Machinery, Energy & Transportation | $9,493 | $7,999 | $8,666 |
Total Financial Products | 18,291 | 18,720 | 19,086 |
Total long-term debt due after one year | 27,784 | 26,719 | 27,752 |
Machinery, Energy & Transportation | |||
Long-term Debt | |||
Total Machinery, Energy & Transportation | 9,493 | 7,999 | 8,666 |
Other | 46 | 55 | 16 |
Machinery, Energy & Transportation | Notes-1.375% due 2014 | |||
Long-term Debt | |||
Notes | 0 | 0 | 750 |
Debt instrument, interest rate (as a percent) | 1.38% | ||
Machinery, Energy & Transportation | Notes-5.700% due 2016 | |||
Long-term Debt | |||
Notes | 504 | 506 | 508 |
Debt instrument, interest rate (as a percent) | 5.70% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Notes-3.900% due 2021 | |||
Long-term Debt | |||
Notes | 1,246 | 1,246 | 1,245 |
Debt instrument, interest rate (as a percent) | 3.90% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Notes-5.200% due 2041 | |||
Long-term Debt | |||
Notes | 757 | 757 | 757 |
Debt instrument, interest rate (as a percent) | 5.20% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-0.950% due 2015 | |||
Long-term Debt | |||
Debentures | 0 | 500 | 500 |
Debt instrument, interest rate (as a percent) | 0.95% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-1.500% due 2017 | |||
Long-term Debt | |||
Debentures | 500 | 500 | 499 |
Debt instrument, interest rate (as a percent) | 1.50% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-7.900% due 2018 | |||
Long-term Debt | |||
Debentures | 899 | 899 | 899 |
Debt instrument, interest rate (as a percent) | 7.90% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-9.375% due 2021 | |||
Long-term Debt | |||
Debentures | 120 | 120 | 120 |
Debt instrument, interest rate (as a percent) | 9.38% | ||
Machinery, Energy & Transportation | Debentures-2.600% due 2022 | |||
Long-term Debt | |||
Debentures | 498 | 498 | 498 |
Debt instrument, interest rate (as a percent) | 2.60% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-8.000% due 2023 | |||
Long-term Debt | |||
Debentures | 82 | 82 | 82 |
Debt instrument, interest rate (as a percent) | 8.00% | ||
Machinery, Energy & Transportation | Debentures-3.400% due 2024 | |||
Long-term Debt | |||
Debentures | 1,000 | 0 | 0 |
Debt instrument, interest rate (as a percent) | 3.40% | ||
Machinery, Energy & Transportation | Debentures-6.625% due 2028 | |||
Long-term Debt | |||
Debentures | 193 | 193 | 193 |
Debt instrument, interest rate (as a percent) | 6.63% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-7.300% due 2031 | |||
Long-term Debt | |||
Debentures | 241 | 241 | 241 |
Debt instrument, interest rate (as a percent) | 7.30% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-5.300% due 2035 | |||
Long-term Debt | |||
Debentures | 211 | 209 | 208 |
Debt instrument, interest rate (as a percent) | 5.30% | ||
Debentures, face value | 307 | ||
Debentures' effective yield to maturity (as a percent) | 8.55% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-6.050% due 2036 | |||
Long-term Debt | |||
Debentures | 459 | 459 | 459 |
Debt instrument, interest rate (as a percent) | 6.05% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-8.250% due 2038 | |||
Long-term Debt | |||
Debentures | 65 | 65 | 65 |
Debt instrument, interest rate (as a percent) | 8.25% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-6.950% due 2042 | |||
Long-term Debt | |||
Debentures | 160 | 160 | 160 |
Debt instrument, interest rate (as a percent) | 6.95% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-3.803% due 2042 | |||
Long-term Debt | |||
Debentures | 1,188 | 1,168 | 1,149 |
Debt instrument, interest rate (as a percent) | 3.80% | ||
Debentures, face value | 1,722 | ||
Debentures' effective yield to maturity (as a percent) | 6.33% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Debentures-4.300% due 2044 | |||
Long-term Debt | |||
Debentures | 497 | 0 | 0 |
Debt instrument, interest rate (as a percent) | 4.30% | ||
Machinery, Energy & Transportation | Debentures-4.750% due 2064 | |||
Long-term Debt | |||
Debentures | 498 | 0 | 0 |
Debt instrument, interest rate (as a percent) | 4.75% | ||
Machinery, Energy & Transportation | Debentures-7.375% due 2097 | |||
Long-term Debt | |||
Debentures | 244 | 244 | 244 |
Debt instrument, interest rate (as a percent) | 7.38% | ||
Percentage of the redemption price to the principal amount of debentures to be redeemed | 100.00% | ||
Machinery, Energy & Transportation | Capital lease obligations | |||
Long-term Debt | |||
Capital lease obligations | 85 | 97 | 73 |
Financial Products | |||
Long-term Debt | |||
Commercial paper | 0 | 0 | 0 |
Medium-term notes | 17,295 | 17,856 | 18,036 |
Other | 996 | 864 | 1,050 |
Total Financial Products | $18,291 | $18,720 | $19,086 |
Longterm_debt_Details_2
Long-term debt (Details 2) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | Jun. 30, 2012 |
Long-term Debt | ||||||
Debt exchange new debentures amount | $1,720 | $1,722 | ||||
Debt exchange new debentures interest rate (as a percent) | 3.80% | 3.80% | ||||
Debt exchange cash paid | 179 | 179 | ||||
Debt exchange original debentures amount | 1,330 | 1,325 | ||||
2015 | 6,793 | |||||
2016 | 6,050 | |||||
2017 | 5,996 | |||||
2018 | 3,317 | |||||
2019 | 2,388 | |||||
Interest paid on short-term and long-term borrowings | 1,109 | 1,141 | 1,404 | |||
3.400% Senior Notes due in 2024 | ||||||
Long-term Debt | ||||||
Notes | 1,000 | |||||
Debt instrument, interest rate (as a percent) | 3.40% | |||||
4.300% Senior Notes due in 2044 | ||||||
Long-term Debt | ||||||
Notes | 500 | |||||
Debt instrument, interest rate (as a percent) | 4.30% | |||||
4.750% Senior Notes due in 2064 | ||||||
Long-term Debt | ||||||
Notes | 500 | |||||
Debt instrument, interest rate (as a percent) | 4.75% | |||||
0.950% Senior Notes due in 2015 | ||||||
Long-term Debt | ||||||
Notes | 500 | |||||
Debt instrument, interest rate (as a percent) | 0.95% | |||||
1.500% Senior Notes due in 2017 | ||||||
Long-term Debt | ||||||
Notes | 500 | |||||
Debt instrument, interest rate (as a percent) | 1.50% | |||||
2.600% Senior Notes due 2022 | ||||||
Long-term Debt | ||||||
Notes | 500 | |||||
Debt instrument, interest rate (as a percent) | 2.60% | |||||
Machinery, Energy & Transportation | ||||||
Long-term Debt | ||||||
2015 | 510 | |||||
2016 | 543 | |||||
2017 | 509 | |||||
2018 | 906 | |||||
2019 | 7 | |||||
Financial Products | ||||||
Long-term Debt | ||||||
Commercial paper outstanding, classified as long-term | 0 | 0 | 0 | |||
Medium-term notes, weighted-average interest rate (as a percent) | 2.40% | |||||
Medium-term notes, maximum remaining maturity (in years) | 12 years | |||||
2015 | 6,283 | |||||
2016 | 5,507 | |||||
2017 | 5,487 | |||||
2018 | 2,411 | |||||
2019 | $2,381 |
Credit_commitments_Details
Credit commitments (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Credit lines available: | |
Global credit facilities | 10,500,000,000 |
Other external | 4,254,000,000 |
Total credit lines available | 14,754,000,000 |
Less: Commercial paper outstanding | -3,688,000,000 |
Less: Utilized credit | -1,904,000,000 |
Available credit | 9,162,000,000 |
Number of global credit facilities | 3 |
Consolidated net worth | 22,230,000,000 |
Minimum consolidated net worth required under credit facilities | 9,000,000,000 |
Cat Financial | |
Credit lines available: | |
Interest coverage ratio, numerator | 2.19 |
Interest coverage ratio, denominator | 1 |
Minimum interest coverage ratio required under credit facilities, numerator | 1.15 |
Minimum interest coverage ratio required under credit facilities, denominator | 1 |
Six-month leverage ratio, numerator | 7.79 |
Six month leverage ratio, denominator | 1 |
Year-end leverage ratio, numerator | 7.83 |
Year-end leverage ratio denominator | 1 |
Maximum leverage ratio permissible under credit facility, numerator | 10 |
Maximum leverage ratio permissible under credit facility, denominator | 1 |
Credit Facility | |
Credit lines available: | |
Global credit facilities | 10,500,000,000 |
364-day facility expires in September 2015 | |
Credit lines available: | |
Global credit facilities | 3,150,000,000 |
Duration of credit facility (in years or days) | 364 days |
Four-year facility expires in September 2017 | |
Credit lines available: | |
Global credit facilities | 2,730,000,000 |
Duration of credit facility (in years or days) | 4 years |
Five-year facility expires in September 2019 | |
Credit lines available: | |
Global credit facilities | 4,620,000,000 |
Duration of credit facility (in years or days) | 5 years |
Consolidated credit lines with banks | |
Credit lines available: | |
Other external | 4,250,000,000 |
Machinery, Energy & Transportation | |
Credit lines available: | |
Global credit facilities | 2,750,000,000 |
Other external | 195,000,000 |
Total credit lines available | 2,945,000,000 |
Less: Commercial paper outstanding | 0 |
Less: Utilized credit | -9,000,000 |
Available credit | 2,936,000,000 |
Machinery, Energy & Transportation | Credit Facility | |
Credit lines available: | |
Global credit facilities | 2,750,000,000 |
Machinery, Energy & Transportation | 364-day facility expires in September 2015 | |
Credit lines available: | |
Global credit facilities | 820,000,000 |
Machinery, Energy & Transportation | Four-year facility expires in September 2017 | |
Credit lines available: | |
Global credit facilities | 720,000,000 |
Machinery, Energy & Transportation | Five-year facility expires in September 2019 | |
Credit lines available: | |
Global credit facilities | 1,210,000,000 |
Financial Products | |
Credit lines available: | |
Global credit facilities | 7,750,000,000 |
Other external | 4,059,000,000 |
Total credit lines available | 11,809,000,000 |
Less: Commercial paper outstanding | -3,688,000,000 |
Less: Utilized credit | -1,895,000,000 |
Available credit | 6,226,000,000 |
Profit_per_share_Details
Profit per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Feb. 28, 2007 | ||||
Earnings Per Share [Abstract] | ||||||||||||||||
Profit for the period (A) (in millions of dollars) | $757,000,000 | $1,017,000,000 | $999,000,000 | $922,000,000 | $1,003,000,000 | $946,000,000 | $960,000,000 | $880,000,000 | $3,695,000,000 | [1] | $3,789,000,000 | [1] | $5,681,000,000 | [1] | ||
Weighted-average common shares outstanding (millions) | ||||||||||||||||
Weighted-average number of common shares outstanding (B) (in shares) | 617,200,000 | 645,200,000 | 652,600,000 | |||||||||||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares) | 11,700,000 | 13,400,000 | 17,000,000 | |||||||||||||
Average common shares outstanding for fully diluted computation (C) (in shares) | 628,900,000 | [2] | 658,600,000 | [2] | 669,600,000 | [2] | ||||||||||
Profit (loss) per share of common stock: | ||||||||||||||||
Assuming no dilution (A/B) (in dollars per share) | $1.25 | $1.66 | $1.60 | $1.47 | $1.57 | $1.48 | $1.48 | $1.34 | $5.99 | $5.87 | $8.71 | |||||
Assuming full dilution (A/C) (in dollars per share) | $1.23 | $1.63 | $1.57 | $1.44 | $1.54 | $1.45 | $1.45 | $1.31 | $5.88 | [2] | $5.75 | [2] | $8.48 | [2] | ||
Shares outstanding as of December 31 | 606,200,000 | 637,800,000 | 606,200,000 | 637,800,000 | 655,000,000 | |||||||||||
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares) | 10,266,682 | 10,152,448 | 6,066,777 | |||||||||||||
Common Stock Repurchase | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | 10,000,000,000 | 7,500,000,000 | ||||||||||||||
Common shares repurchased (in shares) | 23,651,590 | 18,110,735 | 11,942,737 | 11,542,106 | 41,762,325 | 23,484,843 | 0 | |||||||||
Payments for repurchase of common stock | 2,500,000,000 | 1,700,000,000 | 1,000,000,000 | 1,000,000,000 | 4,238,000,000 | 2,000,000,000 | 0 | |||||||||
Stock repurchase program, amount of authorized repurchase spent to date | $2,500,000,000 | |||||||||||||||
[1] | 1Â Profit attributable to common stockholders. | |||||||||||||||
[2] | 2Â 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 | 12 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2012 | Dec. 31, 2011 | Aug. 01, 2008 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated other comprehensive income (loss), start of period | ($3,898) | ($6,433) | ($6,328) | |||
Other comprehensive income (loss), before reclassifications | -2,832 | 2,025 | ||||
Amounts reclassified from accumulated other comprehensive (income) loss | 299 | 510 | ||||
Other comprehensive income (loss) | -2,533 | 2,535 | ||||
Accumulated other comprehensive income (loss), end of period | -6,431 | -3,898 | -6,328 | |||
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) | ||||||
Accumulated other comprehensive income (loss), start of period | 176 | 456 | 206 | |||
Other comprehensive income (loss), before reclassifications | -1,164 | -280 | ||||
Amounts reclassified from accumulated other comprehensive (income) loss | 0 | 0 | ||||
Other comprehensive income (loss) | -1,164 | -280 | ||||
Accumulated other comprehensive income (loss), end of period | -988 | 176 | 206 | |||
Pension and other postretirement benefits | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated other comprehensive income (loss), start of period | -4,152 | -6,914 | -6,568 | |||
Other comprehensive income (loss), before reclassifications | -1,574 | 2,280 | ||||
Amounts reclassified from accumulated other comprehensive (income) loss | 319 | 482 | ||||
Other comprehensive income (loss) | -1,255 | 2,762 | ||||
Accumulated other comprehensive income (loss), end of period | -5,407 | -4,152 | -6,568 | |||
Derivative financial instruments | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated other comprehensive income (loss), start of period | -5 | -42 | -10 | |||
Other comprehensive income (loss), before reclassifications | -118 | -4 | ||||
Amounts reclassified from accumulated other comprehensive (income) loss | 4 | 41 | ||||
Other comprehensive income (loss) | -114 | 37 | ||||
Accumulated other comprehensive income (loss), end of period | -119 | -5 | -10 | |||
Available-for-sale securities | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated other comprehensive income (loss), start of period | 83 | 67 | 44 | |||
Other comprehensive income (loss), before reclassifications | 24 | 29 | ||||
Amounts reclassified from accumulated other comprehensive (income) loss | -24 | -13 | ||||
Other comprehensive income (loss) | 0 | 16 | ||||
Accumulated other comprehensive income (loss), end of period | $83 | $83 | $44 |
Accumulated_other_comprehensiv3
Accumulated other comprehensive income (loss) (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Other income (expense) | $239 | ($35) | $130 | |||||||||||
Interest expense excluding Financial Products | -484 | -465 | -467 | |||||||||||
Interest expense of Financial Products | -624 | -727 | -797 | |||||||||||
Tax (provision) benefit | -1,380 | -1,319 | -2,528 | |||||||||||
Reclassifications net of tax | 757 | 1,017 | 999 | 922 | 1,003 | 946 | 960 | 880 | 3,695 | [1] | 3,789 | [1] | 5,681 | [1] |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Reclassifications net of tax | -299 | -510 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Amortization of actuarial gain (loss) | -519 | -781 | ||||||||||||
Amortization of prior service credit (cost) | 38 | 54 | ||||||||||||
Amortization of transition asset (obligation) | 0 | -2 | ||||||||||||
Reclassifications before tax | -481 | -729 | ||||||||||||
Tax (provision) benefit | 162 | 247 | ||||||||||||
Reclassifications net of tax | -319 | -482 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Reclassifications before tax | -6 | -66 | ||||||||||||
Tax (provision) benefit | 2 | 25 | ||||||||||||
Reclassifications net of tax | -4 | -41 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Other income (expense) | 5 | -57 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Machinery, Energy & Transportation | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Other income (expense) | 0 | -3 | ||||||||||||
Interest expense excluding Financial Products | -5 | 0 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Financial Products | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Interest expense of Financial Products | -6 | -6 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||||
Other income (expense) | 35 | 19 | ||||||||||||
Tax (provision) benefit | -11 | -6 | ||||||||||||
Reclassifications net of tax | $24 | $13 | ||||||||||||
[1] | 1Â Profit attributable to common stockholders. |
Fair_value_disclosures_Details
Fair value disclosures (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Assets | |||
Available-for-sale securities | $1,554 | $1,570 | $1,586 |
Recurring basis | |||
Assets | |||
Available-for-sale securities | 1,554 | 1,570 | 1,586 |
Derivative Asset, at Fair Value, Net | 161 | 154 | |
Total Assets | 1,554 | 1,731 | 1,740 |
Liabilities | |||
Guarantees | 12 | 13 | 14 |
Derivative Liabilities, at Fair Value, Net | 86 | ||
Total Liabilities | 98 | 13 | 14 |
U.S. treasury bonds | |||
Assets | |||
Available-for-sale securities | 10 | 10 | 10 |
U.S. treasury bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 10 | 10 | 10 |
Other U.S. and non-U.S. government bonds | |||
Assets | |||
Available-for-sale securities | 94 | 120 | 146 |
Other U.S. and non-U.S. government bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 94 | 120 | 146 |
Corporate bonds | |||
Assets | |||
Available-for-sale securities | 693 | 633 | 664 |
Corporate bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 693 | 633 | 664 |
Asset-backed securities | |||
Assets | |||
Available-for-sale securities | 105 | 72 | 96 |
Asset-backed securities | Recurring basis | |||
Assets | |||
Available-for-sale securities | 105 | 72 | 96 |
U.S. governmental agency | Recurring basis | |||
Assets | |||
Available-for-sale securities | 294 | 321 | 299 |
Residential | |||
Assets | |||
Available-for-sale securities | 15 | 18 | 25 |
Residential | Recurring basis | |||
Assets | |||
Available-for-sale securities | 15 | 18 | 25 |
Commercial | |||
Assets | |||
Available-for-sale securities | 67 | 93 | 127 |
Commercial | Recurring basis | |||
Assets | |||
Available-for-sale securities | 67 | 93 | 127 |
Large capitalization value | |||
Assets | |||
Available-for-sale securities | 233 | 254 | 185 |
Large capitalization value | Recurring basis | |||
Assets | |||
Available-for-sale securities | 233 | 254 | 185 |
Smaller company growth | |||
Assets | |||
Available-for-sale securities | 43 | 49 | 34 |
Smaller company growth | Recurring basis | |||
Assets | |||
Available-for-sale securities | 43 | 49 | 34 |
Level 1 | Recurring basis | |||
Assets | |||
Available-for-sale securities | 286 | 313 | 229 |
Derivative Asset, at Fair Value, Net | 0 | 0 | |
Total Assets | 286 | 313 | 229 |
Liabilities | |||
Guarantees | 0 | 0 | 0 |
Derivative Liabilities, at Fair Value, Net | 0 | ||
Total Liabilities | 0 | 0 | 0 |
Level 1 | U.S. treasury bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 10 | 10 | 10 |
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 1 | Corporate bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 1 | Asset-backed securities | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 1 | U.S. governmental agency | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 1 | Residential | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 1 | Commercial | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 1 | Large capitalization value | Recurring basis | |||
Assets | |||
Available-for-sale securities | 233 | 254 | 185 |
Level 1 | Smaller company growth | Recurring basis | |||
Assets | |||
Available-for-sale securities | 43 | 49 | 34 |
Level 2 | Recurring basis | |||
Assets | |||
Available-for-sale securities | 1,268 | 1,257 | 1,357 |
Derivative Asset, at Fair Value, Net | 161 | 154 | |
Total Assets | 1,268 | 1,418 | 1,511 |
Liabilities | |||
Guarantees | 0 | 0 | 0 |
Derivative Liabilities, at Fair Value, Net | 86 | ||
Total Liabilities | 86 | 0 | 0 |
Level 2 | U.S. treasury bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 94 | 120 | 146 |
Level 2 | Corporate bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 693 | 633 | 664 |
Level 2 | Asset-backed securities | Recurring basis | |||
Assets | |||
Available-for-sale securities | 105 | 72 | 96 |
Level 2 | U.S. governmental agency | Recurring basis | |||
Assets | |||
Available-for-sale securities | 294 | 321 | 299 |
Level 2 | Residential | Recurring basis | |||
Assets | |||
Available-for-sale securities | 15 | 18 | 25 |
Level 2 | Commercial | Recurring basis | |||
Assets | |||
Available-for-sale securities | 67 | 93 | 127 |
Level 2 | Large capitalization value | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 2 | Smaller company growth | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Derivative Asset, at Fair Value, Net | 0 | 0 | |
Total Assets | 0 | 0 | 0 |
Liabilities | |||
Guarantees | 12 | 13 | 14 |
Derivative Liabilities, at Fair Value, Net | 0 | ||
Total Liabilities | 12 | 13 | 14 |
Level 3 | U.S. treasury bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Corporate bonds | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Asset-backed securities | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | U.S. governmental agency | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Residential | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Commercial | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Large capitalization value | Recurring basis | |||
Assets | |||
Available-for-sale securities | 0 | 0 | 0 |
Level 3 | Smaller company growth | Recurring basis | |||
Assets | |||
Available-for-sale securities | $0 | $0 | $0 |
Fair_value_disclosures_Details1
Fair value disclosures (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Level 2 | Financial Products | Nonrecurring basis | |||
Fair value of impaired loans | |||
Impaired loans | $248 | $81 | $117 |
Level 3 | Guarantees | Recurring basis | |||
Roll-forward of liabilities measured at fair value using Level 3 inputs | |||
Balance at beginning of year | 13 | 14 | 7 |
Acquisitions | 6 | ||
Issuance of guarantees | 1 | 6 | 7 |
Expiration of guarantees | -2 | -7 | -6 |
Balance at end of year | $12 | $13 | $14 |
Fair_value_disclosures_Details2
Fair value disclosures (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and short-term investments | $7,341 | $6,081 | $5,490 | $3,057 |
Available-for-sale securities | 1,554 | 1,570 | 1,586 | |
Liabilities | ||||
Short-term borrowings | 4,708 | 3,679 | 5,287 | |
Machinery, Energy & Transportation | ||||
Liabilities | ||||
Short-term borrowings | 9 | 16 | 636 | |
Financial Products | ||||
Liabilities | ||||
Short-term borrowings | 4,699 | 3,663 | 4,651 | |
Carrying Amount | ||||
Assets | ||||
Cash and short-term investments | 7,341 | 6,081 | 5,490 | |
Restricted cash and short-term investments | 62 | 53 | 53 | |
Available-for-sale securities | 1,554 | 1,570 | 1,586 | |
Finance receivables-net (excluding finance leases) | 16,426 | 16,049 | 15,404 | |
Wholesale inventory receivables-net (excluding finance leases) | 1,774 | 1,529 | 1,674 | |
Foreign currency contracts-net | 0 | 45 | 0 | |
Interest rate swaps-net | 71 | 116 | 219 | |
Commodity contracts-net | 0 | 0 | 1 | |
Liabilities | ||||
Short-term borrowings | 4,708 | 3,679 | 5,287 | |
Foreign currency contracts-net | 143 | 0 | 66 | |
Commodity contracts-net | 14 | 0 | 0 | |
Guarantees | 12 | 13 | 14 | |
Carrying Amount | Machinery, Energy & Transportation | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 10,003 | 8,759 | 9,779 | |
Carrying Amount | Financial Products | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 24,574 | 25,312 | 25,077 | |
Carrying amount of assets excluded from measurement at fair value | ||||
Assets | ||||
Finance leases | 7,638 | 8,053 | 7,959 | |
Level 1 | Fair Value | ||||
Assets | ||||
Cash and short-term investments | 7,341 | 6,081 | 5,490 | |
Restricted cash and short-term investments | 62 | 53 | 53 | |
Liabilities | ||||
Short-term borrowings | 4,708 | 3,679 | 5,287 | |
Level 1 & 2 | Fair Value | ||||
Assets | ||||
Available-for-sale securities | 1,554 | 1,570 | 1,586 | |
Level 2 | Fair Value | ||||
Assets | ||||
Foreign currency contracts-net | 0 | 45 | 0 | |
Interest rate swaps-net | 71 | 116 | 219 | |
Commodity contracts-net | 0 | 0 | 1 | |
Liabilities | ||||
Foreign currency contracts-net | 143 | 0 | 66 | |
Commodity contracts-net | 14 | 0 | 0 | |
Level 2 | Fair Value | Machinery, Energy & Transportation | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 11,973 | 9,905 | 11,969 | |
Level 2 | Fair Value | Financial Products | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 25,103 | 25,849 | 26,063 | |
Level 3 | Fair Value | ||||
Assets | ||||
Finance receivables-net (excluding finance leases) | 16,159 | 15,913 | 15,359 | |
Wholesale inventory receivables-net (excluding finance leases) | 1,700 | 1,467 | 1,609 | |
Liabilities | ||||
Guarantees | $12 | $13 | $14 |
Concentration_of_credit_risk_D
Concentration of credit risk (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Risks and Uncertainties [Abstract] | |||
Derivative contracts, maximum exposure to credit loss | $151 | $251 | $366 |
Operating_leases_Details
Operating leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rental expense for operating leases | $391 | $436 | $474 |
Minimum payments for operating leases having initial or remaining non-cancelable terms | |||
2015 | 229 | ||
2016 | 174 | ||
2017 | 125 | ||
2018 | 92 | ||
2019 | 65 | ||
Thereafter | 189 | ||
Total | $874 |
Guarantees_and_product_warrant2
Guarantees and product warranty (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 |
In Millions, unless otherwise specified | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Related liability | $12 | $13 | $14 | |
Guarantor Obligations | ||||
Percentage of equity interest sold in subsidiary (as a percent) | 65.00% | |||
Guarantees, maximum potential amount of future payments | 740 | 805 | 486 | |
Special-Purpose Company's assets in Consolidated Statement of Financial Position | 1,086 | 1,005 | 927 | |
Special-Purpose Company's liabilities in Consolidated Statement of Financial Position | 1,085 | 1,005 | 927 | |
Unused commitments and lines of credit for dealers | 12,412 | 10,503 | 10,863 | |
Unused commitments and lines of credit for customers | 4,005 | 4,635 | 4,690 | |
Caterpillar dealer guarantees | ||||
Guarantor Obligations | ||||
Guarantees, maximum potential amount of future payments | 209 | 193 | 180 | |
Customer guarantees | ||||
Guarantor Obligations | ||||
Guarantees, maximum potential amount of future payments | 49 | 62 | 77 | |
Customer guarantees-supplier consortium | ||||
Guarantor Obligations | ||||
Guarantees, maximum potential amount of future payments | 321 | 364 | 0 | |
Third party logistics business guarantees | ||||
Guarantor Obligations | ||||
Guarantees, maximum potential amount of future payments | 129 | 151 | 176 | |
Other guarantees | ||||
Guarantor Obligations | ||||
Guarantees, maximum potential amount of future payments | $32 | $35 | $53 |
Guarantees_and_product_warrant3
Guarantees and product warranty (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard Product Warranty Accrual | |||
Warranty liability, beginning balance | $1,367 | $1,477 | $1,308 |
Reduction in liability (payments) | -1,071 | -938 | -920 |
Increase in liability (new warranties) | 1,130 | 828 | 1,089 |
Warranty liability, ending balance | 1,426 | 1,367 | 1,477 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | $170 |
Environmental_and_legal_matter1
Environmental and legal matters (Details) (USD $) | 0 Months Ended | ||||||
Nov. 26, 2014 | Mar. 20, 2014 | Mar. 20, 2014 | Mar. 20, 2014 | Mar. 20, 2014 | Mar. 20, 2014 | Feb. 19, 2014 | |
subsidiaries | companies | individuals | current_employees | former_employee | |||
Environmental Remediation Obligations [Abstract] | |||||||
Loss Contingency, Number of Defendants | 2 | 18 | 100 | 2 | 1 | ||
Loss Contingency, Range of Possible Loss, Minimum | $100,000 | ||||||
Loss Contingency, Settlement Amount Paid | $390,733 |
Segment_information_Details
Segment information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
group_presidents | |||||||||||
segments | |||||||||||
Segment Reporting Information | |||||||||||
Number of group presidents | 5 | ||||||||||
Number of operating segments | 7 | ||||||||||
Useful life to amortize goodwill for segment assets | 20 years | ||||||||||
Reportable Segments | |||||||||||
Sales and revenues | $14,244 | $13,549 | $14,150 | $13,241 | $14,402 | $13,423 | $14,621 | $13,210 | $55,184 | $55,656 | $65,875 |
Depreciation and amortization | 3,163 | 3,087 | 2,813 | ||||||||
Consolidated profit before taxes | 5,083 | 5,128 | 8,236 | ||||||||
Segment assets | 84,681 | 84,896 | 84,681 | 84,896 | 88,970 | ||||||
Capital expenditures | 3,379 | 4,446 | 5,076 | ||||||||
All Other operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Number of group presidents | 1 | ||||||||||
Number of smaller operating segments led by Group President | 3 | ||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 2,251 | 2,263 | 2,827 | ||||||||
Depreciation and amortization | 279 | 305 | 313 | ||||||||
Consolidated profit before taxes | 850 | 736 | 994 | ||||||||
Segment assets | 2,810 | 2,973 | 2,810 | 2,973 | 3,179 | ||||||
Capital expenditures | 331 | 452 | 459 | ||||||||
Reportable Segments Including Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 56,406 | 56,406 | 66,981 | ||||||||
Reportable segments | |||||||||||
Segment Reporting Information | |||||||||||
Number of operating segments led by Group Presidents | 3 | ||||||||||
Number of operating segments led by Group president responsible for corporate services | 1 | ||||||||||
Reportable Segments | |||||||||||
Number of reportable segments | 4 | ||||||||||
Sales and revenues | 53,323 | 53,716 | 63,378 | ||||||||
Depreciation and amortization | 2,744 | 2,622 | 2,420 | ||||||||
Consolidated profit before taxes | 7,647 | 7,351 | 10,316 | ||||||||
Segment assets | 61,574 | 63,468 | 61,574 | 63,468 | 67,976 | ||||||
Capital expenditures | 2,888 | 3,533 | 4,682 | ||||||||
Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 3,083 | 2,690 | 3,603 | ||||||||
Machinery, Energy & Transportation | Reportable Segments Including Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 53,093 | 53,182 | 63,891 | ||||||||
Machinery, Energy & Transportation | Reportable segments | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 50,010 | 50,492 | 60,288 | ||||||||
Depreciation and amortization | 1,859 | 1,833 | 1,712 | ||||||||
Consolidated profit before taxes | 6,746 | 6,361 | 9,553 | ||||||||
Segment assets | 24,563 | 26,488 | 24,563 | 26,488 | 31,413 | ||||||
Capital expenditures | 1,254 | 1,727 | 3,022 | ||||||||
Machinery, Energy & Transportation | Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 3,083 | 2,690 | 3,603 | ||||||||
Construction Industries | Reportable Segments Including Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 19,612 | 18,862 | 19,921 | ||||||||
Construction Industries | Reportable segments | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 19,362 | 18,532 | 19,451 | ||||||||
Depreciation and amortization | 522 | 493 | 459 | ||||||||
Consolidated profit before taxes | 2,207 | 1,374 | 1,846 | ||||||||
Segment assets | 6,596 | 7,607 | 6,596 | 7,607 | 9,624 | ||||||
Capital expenditures | 369 | 551 | 984 | ||||||||
Construction Industries | Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 250 | 330 | 470 | ||||||||
Resource Industries | Reportable Segments Including Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 9,506 | 12,270 | 20,441 | ||||||||
Resource Industries | Reportable segments | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 8,921 | 11,805 | 19,715 | ||||||||
Depreciation and amortization | 691 | 698 | 649 | ||||||||
Consolidated profit before taxes | 501 | 1,586 | 4,285 | ||||||||
Segment assets | 9,568 | 10,389 | 9,568 | 10,389 | 12,466 | ||||||
Capital expenditures | 277 | 499 | 1,078 | ||||||||
Resource Industries | Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 585 | 465 | 726 | ||||||||
Energy & Transportation | Reportable Segments Including Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 23,975 | 22,050 | 23,529 | ||||||||
Energy & Transportation | Reportable segments | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 21,727 | 20,155 | 21,122 | ||||||||
Depreciation and amortization | 646 | 642 | 604 | ||||||||
Consolidated profit before taxes | 4,038 | 3,401 | 3,422 | ||||||||
Segment assets | 8,399 | 8,492 | 8,399 | 8,492 | 9,323 | ||||||
Capital expenditures | 608 | 677 | 960 | ||||||||
Energy & Transportation | Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 2,248 | 1,895 | 2,407 | ||||||||
Financial Products Segment | Reportable Segments Including Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 3,313 | 3,224 | 3,090 | ||||||||
Financial Products Segment | Reportable segments | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | 3,313 | 3,224 | 3,090 | ||||||||
Depreciation and amortization | 885 | 789 | 708 | ||||||||
Consolidated profit before taxes | 901 | 990 | 763 | ||||||||
Segment assets | 37,011 | 36,980 | 37,011 | 36,980 | 36,563 | ||||||
Capital expenditures | 1,634 | 1,806 | 1,660 | ||||||||
Financial Products Segment | Intersegment Eliminations | |||||||||||
Reportable Segments | |||||||||||
Sales and revenues | $0 | $0 | $0 |
Segment_information_Details_2
Segment information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | $14,244 | $13,549 | $14,150 | $13,241 | $14,402 | $13,423 | $14,621 | $13,210 | $55,184 | $55,656 | $65,875 |
Reportable segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 53,323 | 53,716 | 63,378 | ||||||||
All Other operating segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 2,251 | 2,263 | 2,827 | ||||||||
Other | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | -390 | -323 | -330 | ||||||||
Consolidating Adjustments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | -344 | -340 | -353 | ||||||||
Consolidating Adjustments | Reportable segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 0 | 0 | 0 | ||||||||
Consolidating Adjustments | All Other operating segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 0 | 0 | 0 | ||||||||
Consolidating Adjustments | Other | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | -344 | -340 | -353 | ||||||||
Machinery, Energy & Transportation | Reportable segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 50,010 | 50,492 | 60,288 | ||||||||
Machinery, Energy & Transportation | Business | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 52,142 | 52,694 | 63,068 | ||||||||
Machinery, Energy & Transportation | Business | Reportable segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 50,010 | 50,492 | 60,288 | ||||||||
Machinery, Energy & Transportation | Business | All Other operating segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 2,251 | 2,263 | 2,827 | ||||||||
Machinery, Energy & Transportation | Business | Other | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | -119 | -61 | -47 | ||||||||
Financial Products | Business | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 3,386 | 3,302 | 3,160 | ||||||||
Financial Products | Business | Reportable segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 3,313 | 3,224 | 3,090 | ||||||||
Financial Products | Business | All Other operating segments | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | 0 | 0 | 0 | ||||||||
Financial Products | Business | Other | |||||||||||
Reconciliation of Sales and revenues | |||||||||||
Sales and revenues | $73 | $78 | $70 |
Segment_information_Details_3
Segment information (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | $5,083 | $5,128 | $8,236 |
Reportable segments | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 7,647 | 7,351 | 10,316 |
All Other operating segments | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 850 | 736 | 994 |
Cost Centers | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 38 | 119 | 11 |
Corporate Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -1,584 | -1,368 | -1,502 |
Timing | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -244 | 116 | -298 |
Restructuring Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -441 | -200 | |
Inventory/cost of sales | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 55 | -112 | 43 |
Postretirement Benefits Expense | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -411 | -685 | -696 |
Financing Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -502 | -469 | -474 |
Equity in Profit/Loss of Unconsolidated Affiliated Companies | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -8 | 6 | -14 |
Currency | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -52 | -110 | 108 |
Other Income Expense Methodology Differences | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -249 | -238 | -249 |
Other | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -16 | -18 | -3 |
Business | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 8,497 | 8,087 | |
Machinery, Energy & Transportation | Reportable segments | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 6,746 | 6,361 | 9,553 |
Machinery, Energy & Transportation | Business | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 4,174 | 4,108 | 7,456 |
Machinery, Energy & Transportation | Business | Reportable segments | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 6,746 | 6,361 | 9,553 |
Machinery, Energy & Transportation | Business | All Other operating segments | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 850 | 736 | 994 |
Machinery, Energy & Transportation | Business | Cost Centers | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 38 | 119 | 11 |
Machinery, Energy & Transportation | Business | Corporate Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -1,584 | -1,368 | -1,502 |
Machinery, Energy & Transportation | Business | Timing | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -244 | 116 | -298 |
Machinery, Energy & Transportation | Business | Restructuring Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -441 | -200 | |
Machinery, Energy & Transportation | Business | Inventory/cost of sales | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 55 | -112 | 43 |
Machinery, Energy & Transportation | Business | Postretirement Benefits Expense | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -411 | -685 | -696 |
Machinery, Energy & Transportation | Business | Financing Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -502 | -469 | -474 |
Machinery, Energy & Transportation | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -8 | 6 | -14 |
Machinery, Energy & Transportation | Business | Currency | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -52 | -110 | 108 |
Machinery, Energy & Transportation | Business | Other Income Expense Methodology Differences | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -249 | -238 | -249 |
Machinery, Energy & Transportation | Business | Other | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | -24 | -48 | -20 |
Financial Products | Business | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 909 | 1,020 | 780 |
Financial Products | Business | Reportable segments | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 901 | 990 | 763 |
Financial Products | Business | All Other operating segments | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Corporate Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Timing | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Restructuring Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | |
Financial Products | Business | Inventory/cost of sales | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Postretirement Benefits Expense | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Financing Costs | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 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 |
Financial Products | Business | Currency | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Other Income Expense Methodology Differences | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | 0 | 0 | 0 |
Financial Products | Business | Other | |||
Reconciliation of Consolidated profit (loss) before taxes | |||
Consolidated profit before taxes | $8 | $30 | $17 |
Segment_information_Details_4
Segment information (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information | |||
Consolidated profit before taxes | $5,083 | $5,128 | $8,236 |
Restructuring costs | -441 | -200 | -94 |
Reportable segments | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 7,647 | 7,351 | 10,316 |
Reportable segments | Construction Industries | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 2,207 | 1,374 | 1,846 |
Reportable segments | Resource Industries | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 501 | 1,586 | 4,285 |
Reportable segments | Energy & Transportation | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 4,038 | 3,401 | 3,422 |
Reportable segments | Financial Products Segment | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 901 | 990 | 763 |
All Other operating segments | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 850 | 736 | 994 |
Business | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 8,497 | 8,087 | |
Restructuring costs | -432 | -197 | |
Consolidated profit before taxes with restructuring costs | 8,065 | 7,890 | |
Business | Reportable segments | Construction Industries | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 2,207 | 1,374 | |
Restructuring costs | -293 | -33 | |
Consolidated profit before taxes with restructuring costs | 1,914 | 1,341 | |
Business | Reportable segments | Resource Industries | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 501 | 1,586 | |
Restructuring costs | -72 | -105 | |
Consolidated profit before taxes with restructuring costs | 429 | 1,481 | |
Business | Reportable segments | Energy & Transportation | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 4,038 | 3,401 | |
Restructuring costs | -31 | -32 | |
Consolidated profit before taxes with restructuring costs | 4,007 | 3,369 | |
Business | Reportable segments | Financial Products Segment | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 901 | 990 | |
Restructuring costs | 0 | 0 | |
Consolidated profit before taxes with restructuring costs | 901 | 990 | |
Business | All Other operating segments | All Other | |||
Segment Reporting Information | |||
Consolidated profit before taxes | 850 | 736 | |
Restructuring costs | -36 | -27 | |
Consolidated profit before taxes with restructuring costs | $814 | $709 |
Segment_information_Details_5
Segment information (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Reconciliation of assets | |||
Total assets | $84,681 | $84,896 | $88,970 |
Reportable segments | |||
Reconciliation of assets | |||
Total assets | 61,574 | 63,468 | 67,976 |
All Other operating segments | |||
Reconciliation of assets | |||
Total assets | 2,810 | 2,973 | 3,179 |
Cash and Short Term Investments | |||
Reconciliation of assets | |||
Total assets | 6,317 | 4,597 | 3,306 |
Intercompany Receivables | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Investment in Financial Products | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Deferred Income Taxes | |||
Reconciliation of assets | |||
Total assets | 2,953 | 2,016 | 3,410 |
Goodwill and Intangible Assets | |||
Reconciliation of assets | |||
Total assets | 3,492 | 3,582 | 3,145 |
Property Plant and Equipment-Net and Other Assets | |||
Reconciliation of assets | |||
Total assets | 1,174 | 1,175 | 723 |
Operating Lease Methodology Difference | |||
Reconciliation of assets | |||
Total assets | -213 | -273 | -305 |
Liabilities Included in Segment Assets | |||
Reconciliation of assets | |||
Total assets | 9,837 | 10,357 | 10,900 |
Inventory Methodology Differences | |||
Reconciliation of assets | |||
Total assets | -2,697 | -2,539 | -2,949 |
Other | |||
Reconciliation of assets | |||
Total assets | -566 | -460 | -415 |
Consolidating Adjustments | |||
Reconciliation of assets | |||
Total assets | -6,416 | -6,653 | -5,384 |
Consolidating Adjustments | Reportable segments | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | All Other operating segments | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | Cash and Short Term Investments | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | Intercompany Receivables | |||
Reconciliation of assets | |||
Total assets | -1,185 | -1,219 | -303 |
Consolidating Adjustments | Investment in Financial Products | |||
Reconciliation of assets | |||
Total assets | -4,488 | -4,798 | -4,433 |
Consolidating Adjustments | Deferred Income Taxes | |||
Reconciliation of assets | |||
Total assets | -674 | -525 | -516 |
Consolidating Adjustments | Goodwill and Intangible Assets | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | Property Plant and Equipment-Net and Other Assets | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | Operating Lease Methodology Difference | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | Liabilities Included in Segment Assets | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | Inventory Methodology Differences | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Consolidating Adjustments | Other | |||
Reconciliation of assets | |||
Total assets | -69 | -111 | -132 |
Machinery, Energy & Transportation | Reportable segments | |||
Reconciliation of assets | |||
Total assets | 24,563 | 26,488 | 31,413 |
Machinery, Energy & Transportation | Business | |||
Reconciliation of assets | |||
Total assets | 54,188 | 54,704 | 57,898 |
Machinery, Energy & Transportation | Business | Reportable segments | |||
Reconciliation of assets | |||
Total assets | 24,563 | 26,488 | 31,413 |
Machinery, Energy & Transportation | Business | All Other operating segments | |||
Reconciliation of assets | |||
Total assets | 2,810 | 2,973 | 3,179 |
Machinery, Energy & Transportation | Business | Cash and Short Term Investments | |||
Reconciliation of assets | |||
Total assets | 6,317 | 4,597 | 3,306 |
Machinery, Energy & Transportation | Business | Intercompany Receivables | |||
Reconciliation of assets | |||
Total assets | 1,185 | 1,219 | 303 |
Machinery, Energy & Transportation | Business | Investment in Financial Products | |||
Reconciliation of assets | |||
Total assets | 4,488 | 4,798 | 4,433 |
Machinery, Energy & Transportation | Business | Deferred Income Taxes | |||
Reconciliation of assets | |||
Total assets | 3,627 | 2,541 | 3,926 |
Machinery, Energy & Transportation | Business | Goodwill and Intangible Assets | |||
Reconciliation of assets | |||
Total assets | 3,492 | 3,582 | 3,145 |
Machinery, Energy & Transportation | Business | Property Plant and Equipment-Net and Other Assets | |||
Reconciliation of assets | |||
Total assets | 1,174 | 1,175 | 723 |
Machinery, Energy & Transportation | Business | Operating Lease Methodology Difference | |||
Reconciliation of assets | |||
Total assets | -213 | -273 | -305 |
Machinery, Energy & Transportation | Business | Liabilities Included in Segment Assets | |||
Reconciliation of assets | |||
Total assets | 9,837 | 10,357 | 10,900 |
Machinery, Energy & Transportation | Business | Inventory Methodology Differences | |||
Reconciliation of assets | |||
Total assets | -2,697 | -2,539 | -2,949 |
Machinery, Energy & Transportation | Business | Other | |||
Reconciliation of assets | |||
Total assets | -395 | -214 | -176 |
Financial Products | Business | |||
Reconciliation of assets | |||
Total assets | 36,909 | 36,845 | 36,456 |
Financial Products | Business | Reportable segments | |||
Reconciliation of assets | |||
Total assets | 37,011 | 36,980 | 36,563 |
Financial Products | Business | All Other operating segments | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Cash and Short Term Investments | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Intercompany Receivables | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Investment in Financial Products | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Deferred Income Taxes | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Goodwill and Intangible Assets | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Property Plant and Equipment-Net and Other Assets | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Operating Lease Methodology Difference | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Liabilities Included in Segment Assets | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Inventory Methodology Differences | |||
Reconciliation of assets | |||
Total assets | 0 | 0 | 0 |
Financial Products | Business | Other | |||
Reconciliation of assets | |||
Total assets | ($102) | ($135) | ($107) |
Segment_information_Details_6
Segment information (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | $3,163 | $3,087 | $2,813 |
Reportable segments | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 2,744 | 2,622 | 2,420 |
All Other operating segments | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 279 | 305 | 313 |
Cost Centers | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 150 | 151 | 96 |
Other | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | -10 | 9 | -16 |
Machinery, Energy & Transportation | Reportable segments | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 1,859 | 1,833 | 1,712 |
Machinery, Energy & Transportation | Business | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 2,253 | 2,273 | 2,082 |
Machinery, Energy & Transportation | Business | Reportable segments | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 1,859 | 1,833 | 1,712 |
Machinery, Energy & Transportation | Business | All Other operating segments | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 279 | 305 | 313 |
Machinery, Energy & Transportation | Business | Cost Centers | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 150 | 151 | 96 |
Machinery, Energy & Transportation | Business | Other | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | -35 | -16 | -39 |
Financial Products | Business | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 910 | 814 | 731 |
Financial Products | Business | Reportable segments | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 885 | 789 | 708 |
Financial Products | Business | All Other operating segments | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | 0 | 0 | 0 |
Financial Products | Business | Other | |||
Reconciliation of Depreciation and amortization: | |||
Total depreciation and amortization | $25 | $25 | $23 |
Segment_information_Details_7
Segment information (Details 7) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Capital expenditures | |||
Total capital expenditures | $3,379 | $4,446 | $5,076 |
Reportable segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 2,888 | 3,533 | 4,682 |
All Other operating segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 331 | 452 | 459 |
Cost Centers | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 181 | 191 | 201 |
Timing | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 21 | 363 | -71 |
Other | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | -42 | -93 | -195 |
Consolidating Adjustments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | -79 | -70 | -155 |
Consolidating Adjustments | Reportable segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 0 | 0 | 0 |
Consolidating Adjustments | All Other operating segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 0 | 0 | 0 |
Consolidating Adjustments | Cost Centers | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 0 | 0 | 0 |
Consolidating Adjustments | Timing | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 0 | 0 | 0 |
Consolidating Adjustments | Other | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | -79 | -70 | -155 |
Machinery, Energy & Transportation | Reportable segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 1,254 | 1,727 | 3,022 |
Machinery, Energy & Transportation | Business | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 1,641 | 2,605 | 3,435 |
Machinery, Energy & Transportation | Business | Reportable segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 1,254 | 1,727 | 3,022 |
Machinery, Energy & Transportation | Business | All Other operating segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 331 | 452 | 459 |
Machinery, Energy & Transportation | Business | Cost Centers | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 181 | 191 | 201 |
Machinery, Energy & Transportation | Business | Timing | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 21 | 363 | -71 |
Machinery, Energy & Transportation | Business | Other | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | -146 | -128 | -176 |
Financial Products | Business | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 1,817 | 1,911 | 1,796 |
Financial Products | Business | Reportable segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 1,634 | 1,806 | 1,660 |
Financial Products | Business | All Other operating segments | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 0 | 0 | 0 |
Financial Products | Business | Timing | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | 0 | 0 | 0 |
Financial Products | Business | Other | |||
Reconciliation of Capital expenditures | |||
Total capital expenditures | $183 | $105 | $136 |
Segment_information_Details_8
Segment information (Details 8) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information | |||||||||||
Percentage of sales and revenues | 10.00% | 10.00% | |||||||||
External sales and revenues | $14,244 | $13,549 | $14,150 | $13,241 | $14,402 | $13,423 | $14,621 | $13,210 | $55,184 | $55,656 | $65,875 |
Net property, plant and equipment | 16,577 | 17,075 | 16,577 | 17,075 | 16,461 | ||||||
Inside United States | |||||||||||
Segment Reporting Information | |||||||||||
External sales and revenues | 21,122 | 18,579 | 20,239 | ||||||||
Net property, plant and equipment | 8,714 | 8,723 | 8,714 | 8,723 | 8,559 | ||||||
Outside the United States | |||||||||||
Segment Reporting Information | |||||||||||
External sales and revenues | 34,062 | 37,077 | 45,636 | ||||||||
Net property, plant and equipment | 7,863 | 8,352 | 7,863 | 8,352 | 7,902 | ||||||
Australia | |||||||||||
Segment Reporting Information | |||||||||||
External sales and revenues | $6,822 |
Acquisitions_Details
Acquisitions (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||
In Millions, except Share data in Billions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-13 | 31-May-12 | Dec. 31, 2012 | Oct. 31, 2012 | 31-May-12 | 31-May-12 | Jul. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | Johan Walter Berg AB | Johan Walter Berg AB | Johan Walter Berg AB | Black Horse LLC | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | ERA Mining Machinery Limited (Siwei) | Caterpillar Tohoku Ltd. | Caterpillar Tohoku Ltd. | Caterpillar Tohoku Ltd. | |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | Cash Consideration | Loan note consideration | USD ($) | USD ($) | USD ($) | ||||||
director | types | HKD | HKD | ||||||||||||||
parties | |||||||||||||||||
Acquisitions | |||||||||||||||||
Percentage of equity acquired (as a percent) | 100.00% | 99.00% | 1.00% | 100.00% | |||||||||||||
Purchase price of acquired entity | $677 | ||||||||||||||||
Contingent consideration payable | 7 | ||||||||||||||||
Contingent consideration arrangement, maximum value (in Euro) | 30 | ||||||||||||||||
Contribution for equity interest in joint venture | 70 | ||||||||||||||||
Ownership percentage of investments in companies accounted for under the equity method (as a percent) | 50.00% | ||||||||||||||||
Cost of acquisition paid in cash | 475 | 7 | 22 | 3 | 59 | ||||||||||||
Net cash paid for acquisition | 30 | 195 | 618 | 169 | 444 | 206 | |||||||||||
Fair value of loan notes debt component | 152 | 152 | |||||||||||||||
Loan and interest payable to Caterpillar | 51 | ||||||||||||||||
Fair value of noncontrolling interest | 7 | ||||||||||||||||
Trade payables to Caterpillar | 64 | ||||||||||||||||
Price per share of common stock acquired (in dollars per share) | 0.88 | 1 | |||||||||||||||
Acquisition, Alternative considerations to acquiree | |||||||||||||||||
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 | 82 | 598 | 252 | ||||||||||||||
Cash | 9 | 31 | 18 | ||||||||||||||
Restricted cash | 138 | ||||||||||||||||
Receivables | 13 | 184 | 34 | ||||||||||||||
Inventory | 32 | 77 | 26 | ||||||||||||||
Property, plant and equipment | 28 | 94 | 157 | ||||||||||||||
Finite-lived intangible assets | 70 | 112 | 8 | ||||||||||||||
Finite-lived intangible assets, weighed average useful life (in years) | 11 years | 14 years | |||||||||||||||
Goodwill, amount tax deductible | 22 | ||||||||||||||||
Liabilities assumed | |||||||||||||||||
Total liabilities assumed | 87 | 626 | 135 | ||||||||||||||
Accounts payable | 19 | 352 | 39 | ||||||||||||||
Debt assumed | 168 | 77 | |||||||||||||||
Accrued expenses | 37 | ||||||||||||||||
Customer advances | 31 | ||||||||||||||||
Noncurrent deferred income tax liabilities | 15 | 25 | |||||||||||||||
Adjustments to preliminary allocation of purchase price | |||||||||||||||||
Finite-lived intangibles decrease | 82 | ||||||||||||||||
Receivables decrease | 29 | ||||||||||||||||
Inventory decrease | 17 | ||||||||||||||||
Net liabilities increase | 23 | ||||||||||||||||
Goodwill increase (decrease) | 7 | 149 | |||||||||||||||
Goodwill impairment charge | 0 | 0 | 580 | 580 | |||||||||||||
Goodwill | 6,694 | 6,956 | 6,942 | 7,080 | 113 | 625 | 45 | 22 | |||||||||
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 | $135 |
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interest - Caterpillar Japan Ltd. (Details) | 1 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Apr. 30, 2012 | Apr. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 02, 2012 | Aug. 01, 2008 |
USD ($) | JPY (¥) | USD ($) | USD ($) | 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 | $0 | $444 |
Divestitures_Details
Divestitures (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 |
Disposal groups | ||||
Other operating income related to sales transactions | ($4) | $68 | $630 | |
Cat Financial financing of transactions | 11,278 | 11,422 | 12,010 | |
Percentage of equity interest sold in subsidiary (as a percent) | 65.00% | |||
Bucyrus Distribution Business | Disposal group, not discontinued operations | ||||
Disposal groups | ||||
Asset impairment charges | 4 | 11 | 27 | |
Number of sales transactions completed | 32 | 19 | 12 | |
Sales price of business | 199 | 467 | 1,436 | |
After-tax profit (loss) impact | -22 | -39 | -28 | |
Other operating income related to sales transactions | 21 | 95 | 310 | |
Unfavorable prior sale transaction adjustment | -14 | |||
Increase (Decrease) in Parts Returns Reserve | 34 | |||
Selling, general and administrative expenses | 25 | 104 | 177 | |
Income tax | 4 | -4 | 161 | |
Customer relationship intangible assets sold | 82 | 127 | 256 | |
Other assets sold | 24 | 65 | 254 | |
Allocated goodwill | 63 | 56 | 405 | |
Number of dealers receiving financing | 2 | 5 | 5 | |
Third party logistics business | Disposal group, not discontinued operations | ||||
Disposal groups | ||||
Sales price of business | 567 | |||
Other operating income related to sales transactions | 278 | |||
Percentage of equity interest sold in subsidiary (as a percent) | 65.00% | |||
Equity contribution from buyer | 107 | |||
Percentage of equity interest retained in subsidiary (as a percent) | 35.00% | |||
Incremental incentive compensation expense | 8 | |||
Retained noncontrolling interest fair value | 58 | |||
Cat Financial | Bucyrus Distribution Business | Disposal group, not discontinued operations | ||||
Disposal groups | ||||
Cat Financial financing of transactions | $20 | $132 | $739 |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs total | $441 | $200 | $94 |
Employee separation costs | 382 | 151 | 94 |
Restructuring fixed asset impairments | 33 | 41 | |
Other restructuring costs | 26 | 8 | |
Employee Separation Activity | |||
Liability balance at beginning of period | 89 | 29 | 90 |
Increase in liability (separation charges) | 382 | 151 | 94 |
Reduction in liability (payments and other adjustments) | -289 | -91 | -155 |
Liability balance at end of period | 182 | 89 | 29 |
Gosselies, Belgium facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee separation costs | 273 | ||
Estimated cash separation costs | 300 | ||
Employee Separation Activity | |||
Increase in liability (separation charges) | $273 |
Selected_quarterly_financial_r2
Selected quarterly financial results (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Sep. 30, 2014 | |||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Sales and revenues | $14,244 | $13,549 | $14,150 | $13,241 | $14,402 | $13,423 | $14,621 | $13,210 | $55,184 | $55,656 | $65,875 | |||||
Less: Revenues | -744 | -791 | -759 | -748 | -756 | -745 | -735 | -726 | -3,042 | -2,962 | -2,807 | |||||
Sales | 13,500 | 12,758 | 13,391 | 12,493 | 13,646 | 12,678 | 13,886 | 12,484 | 52,142 | 52,694 | 63,068 | |||||
Cost of goods sold | 10,499 | 9,634 | 10,197 | 9,437 | 10,541 | 9,774 | 10,773 | 9,639 | 39,767 | 40,727 | 47,055 | |||||
Gross margin | 3,001 | 3,124 | 3,194 | 3,056 | 3,105 | 2,904 | 3,113 | 2,845 | ||||||||
Profit | 757 | 1,017 | 999 | 922 | 1,003 | 946 | 960 | 880 | 3,695 | [1] | 3,789 | [1] | 5,681 | [1] | ||
Profit (loss) per common share | $1.25 | $1.66 | $1.60 | $1.47 | $1.57 | $1.48 | $1.48 | $1.34 | $5.99 | $5.87 | $8.71 | |||||
Profit (loss) per common share - diluted | $1.23 | $1.63 | $1.57 | $1.44 | $1.54 | $1.45 | $1.45 | $1.31 | $5.88 | [2] | $5.75 | [2] | $8.48 | [2] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Receivables - trade and other | 163 | 835 | -15 | |||||||||||||
Accounts payable | 222 | 134 | -1,868 | |||||||||||||
Statement of Cash Flow revision | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Receivables - trade and other | 113 | 149 | ||||||||||||||
Accounts payable | ($113) | ($149) | ||||||||||||||
[1] | 1Â Profit attributable to common stockholders. | |||||||||||||||
[2] | 2Â Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method. |