Document and Entity Information
Document and Entity Information Document | 9 Months Ended |
Sep. 30, 2015shares | |
Document and Entity Information | |
Entity Registrant Name | CATERPILLAR INC |
Entity Central Index Key | 18,230 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 582,233,801 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Consolidated Statement of Resul
Consolidated Statement of Results of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Sales and revenues: | |||||
Sales of Machinery, Energy & Transportation | $ 10,285 | $ 12,758 | $ 33,829 | $ 38,642 | |
Revenues of Financial Products | 677 | 791 | 2,152 | 2,298 | |
Total sales and revenues | 10,962 | 13,549 | 35,981 | 40,940 | |
Operating costs: | |||||
Cost of goods sold | 7,954 | 9,634 | 25,559 | 29,268 | |
Selling, general and administrative expenses | 1,225 | 1,446 | 3,932 | 4,175 | |
Research and development expenses | 534 | 533 | 1,612 | 1,557 | |
Interest expense of Financial Products | 142 | 157 | 440 | 470 | |
Other operating (income) expenses | 394 | 387 | 1,068 | 1,205 | |
Total operating costs | 10,249 | 12,157 | 32,611 | 36,675 | |
Operating profit | 713 | 1,392 | 3,370 | 4,265 | |
Interest expense excluding Financial Products | 127 | 128 | 381 | 358 | |
Other income (expense) | (68) | 117 | 76 | 236 | |
Consolidated profit before taxes | 518 | 1,381 | 3,065 | 4,143 | |
Provision (benefit) for income taxes | 144 | 364 | 870 | 1,201 | |
Profit of consolidated companies | 374 | 1,017 | 2,195 | 2,942 | |
Equity in profit (loss) of unconsolidated affiliated companies | (3) | 4 | 1 | 6 | |
Profit of consolidated and affiliated companies | 371 | 1,021 | 2,196 | 2,948 | |
Less: Profit (loss) attributable to noncontrolling interests | 3 | 4 | 7 | 10 | |
Profit | [1] | $ 368 | $ 1,017 | $ 2,189 | $ 2,938 |
Profit per common share (in dollars per share) | $ 0.63 | $ 1.66 | $ 3.66 | $ 4.73 | |
Profit per common share - diluted (in dollars per share) | [2] | $ 0.62 | $ 1.63 | $ 3.62 | $ 4.64 |
Weighted-average common shares outstanding (millions) | |||||
Basic (in shares) | 588.4 | 611.5 | 597.9 | 620.6 | |
Diluted (in shares) | [2] | 594.8 | 622.8 | 605.3 | 632.7 |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0 | $ 1.47 | $ 1.30 | |
[1] | 1 Profit attributable to common stockholders. | ||||
[2] | 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Profit of consolidated and affiliated companies | $ 371 | $ 1,021 | $ 2,196 | $ 2,948 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Foreign currency translation, net of tax (provision)/benefit of: Three months ended: 2015-$(5), 2014-$(44); Nine months ended: 2015-$(60), 2014-$(52) | (235) | (710) | (810) | (643) |
Pension and other postretirement benefits: | ||||
Current year actuarial gain (loss), net of tax (provision)/benefit of: Three months ended: 2015-$(21), 2014-$(2); Nine months ended: 2015-$(35), 2014-$(7) | 44 | 4 | 68 | 14 |
Amortization of actuarial (gain) loss, net of tax (provision)/benefit of: Three months ended: 2015-$(56), 2014-$(44); Nine months ended: 2015-$(168), 2014-$(132) | 108 | 86 | 326 | 258 |
Current year prior service credit (cost), net of tax (provision)/benefit of: Three months ended: 2015-$(1), 2014-$(1); Nine months ended: 2015-$(1), 2014-$(1) | 1 | 0 | 1 | 1 |
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: Three months ended: 2015-$5, 2014-$3; Nine months ended: 2015-$14, 2014-$10 | (8) | (6) | (26) | (18) |
Derivative financial instruments: | ||||
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2015-$7, 2014-$17; Nine months ended: 2015-$9, 2014-$33 | (12) | (30) | (15) | (57) |
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2015-$(11), 2014-$1; Nine months ended: 2015-$(40), 2014-$7 | 20 | 0 | 69 | (10) |
Available-for-sale securities: | ||||
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2015-$10, 2014-$5; Nine months ended: 2015-$10, 2014-$(6) | (15) | (5) | (13) | 18 |
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2015-$9, 2014-$7; Nine months ended: 2015-$10, 2014-$11 | (18) | (13) | (21) | (23) |
Total other comprehensive income (loss), net of tax | (115) | (674) | (421) | (460) |
Comprehensive Income | 256 | 347 | 1,775 | 2,488 |
Less: comprehensive income attributable to the noncontrolling interests | (2) | (4) | 2 | (9) |
Comprehensive income attributable to stockholders | $ 254 | $ 343 | $ 1,777 | $ 2,479 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income (Parenthetical) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, tax (provision)/benefit | $ (5) | $ (44) | $ (60) | $ (52) |
Pension and other postretirement benefits, Current year actuarial gain (loss), tax (provision)/benefit | (21) | (2) | (35) | (7) |
Pension and other postretirement benefits, Amortization of actuarial (gain) loss, tax (provision)/benefit | (56) | (44) | (168) | (132) |
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit | (1) | (1) | (1) | (1) |
Pension and other postretirement benefits, Amortization of prior service (credit) cost, tax (provision)/benefit | 5 | 3 | 14 | 10 |
Derivative financial instruments, Gains (losses) deferred, tax (provision)/benefit | 7 | 17 | 9 | 33 |
Derivative financial instruments, (Gains) losses reclassified to earnings, tax (provision)/benefit | (11) | 1 | (40) | 7 |
Available-for-sale securities, Gains (losses) deferred, tax (provision)/benefit | 10 | 5 | 10 | (6) |
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit | $ 9 | $ 7 | $ 10 | $ 11 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and short-term investments | $ 6,046 | $ 7,341 |
Receivables - trade and other | 6,783 | 7,737 |
Receivables - finance | 8,862 | 9,027 |
Deferred and refundable income taxes | 1,446 | 1,739 |
Prepaid expenses and other current assets | 993 | 818 |
Inventories | 11,150 | 12,205 |
Total current assets | 35,280 | 38,867 |
Property, plant and equipment - net | 15,955 | 16,577 |
Long-term receivables - trade and other | 1,266 | 1,364 |
Long-term receivables - finance | 13,551 | 14,644 |
Investments in unconsolidated affiliated companies | 231 | 257 |
Noncurrent deferred and refundable income taxes | 1,559 | 1,404 |
Intangible assets | 2,841 | 3,076 |
Goodwill | 6,546 | 6,694 |
Other assets | 1,740 | 1,798 |
Total assets | 78,969 | 84,681 |
Short-term borrowings: | ||
Machinery, Energy & Transportation | 12 | 9 |
Financial Products | 6,068 | 4,699 |
Accounts payable | 5,206 | 6,515 |
Accrued expenses | 3,306 | 3,548 |
Accrued wages, salaries and employee benefits | 1,678 | 2,438 |
Customer advances | 1,610 | 1,697 |
Dividends payable | 0 | 424 |
Other current liabilities | 1,698 | 1,754 |
Long-term debt due within one year: | ||
Machinery, Energy & Transportation | 516 | 510 |
Financial Products | 5,739 | 6,283 |
Total current liabilities | 25,833 | 27,877 |
Long-term debt due after one year: | ||
Machinery, Energy & Transportation | 8,997 | 9,493 |
Financial Products | 16,211 | 18,291 |
Liability for postemployment benefits | 8,638 | 8,963 |
Other liabilities | 3,322 | 3,231 |
Total liabilities | $ 63,001 | $ 67,855 |
Commitments and contingencies (Notes 10 and 13) | ||
Stockholders' equity | ||
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (9/30/15 and 12/31/14 – 814,894,624) at paid-in amount | $ 5,190 | $ 5,016 |
Treasury stock (9/30/15 – 232,660,823 shares; 12/31/14 – 208,728,065 shares) at cost | (17,642) | (15,726) |
Profit employed in the business | 35,191 | 33,887 |
Accumulated other comprehensive income (loss) | (6,843) | (6,431) |
Noncontrolling interests | 72 | 80 |
Total stockholders' equity | 15,968 | 16,826 |
Total liabilities and stockholders' equity | $ 78,969 | $ 84,681 |
Consolidated Statement of Fina6
Consolidated Statement of Financial Position (Parenthetical) (Parentheticals) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, Authorized shares | 2,000,000,000 | 2,000,000,000 |
Common stock, Issued shares | 814,894,624 | 814,894,624 |
Treasury stock, shares | 232,660,823 | 208,728,065 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common stock | Treasury stock | Profit employed in the business | Accumulated other comprehensive income (loss) | Noncontrolling interests | |
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 | 2,948 | 0 | 0 | 2,938 | 0 | 10 | |
Foreign currency translation, net of tax | (643) | 0 | 0 | 0 | (642) | (1) | |
Pension and other postretirement benefits, net of tax | 255 | 0 | 0 | 0 | 255 | 0 | |
Derivative financial instruments, net of tax | (67) | 0 | 0 | 0 | (67) | 0 | |
Available-for-sale securities, net of tax | (5) | 0 | 0 | 0 | (5) | 0 | |
Change in ownership from noncontrolling interests | 4 | 0 | 0 | 0 | 0 | 4 | |
Dividends declared | (815) | 0 | 0 | (815) | 0 | 0 | |
Distribution to noncontrolling interests | (7) | 0 | 0 | 0 | 0 | (7) | |
Common shares issued from treasury stock for stock-based compensation: 2,843,506 and 9,338,857 for the nine months ended September 30, 2015 and 2014, respectively | 218 | (109) | 327 | 0 | 0 | 0 | |
Stock-based compensation expense | 207 | 207 | 0 | 0 | 0 | 0 | |
Net excess tax benefits from stock-based compensation | 161 | 161 | 0 | 0 | 0 | 0 | |
Common shares repurchased: 25,841,608 and 41,762,325 for the nine months ended September 30, 2015 and 2014, respectively | [1] | (4,238) | 0 | (4,238) | 0 | 0 | 0 |
Balance at Sep. 30, 2014 | 18,896 | 4,968 | (15,765) | 33,977 | (4,357) | 73 | |
Balance at Dec. 31, 2014 | 16,826 | 5,016 | (15,726) | 33,887 | (6,431) | 80 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Profit of consolidated and affiliated companies | 2,196 | 0 | 0 | 2,189 | 0 | 7 | |
Foreign currency translation, net of tax | (810) | 0 | 0 | 0 | (801) | (9) | |
Pension and other postretirement benefits, net of tax | 369 | 0 | 0 | 0 | 369 | 0 | |
Derivative financial instruments, net of tax | 54 | 0 | 0 | 0 | 54 | 0 | |
Available-for-sale securities, net of tax | (34) | 0 | 0 | 0 | (34) | 0 | |
Dividends declared | (885) | 0 | 0 | (885) | 0 | 0 | |
Distribution to noncontrolling interests | (7) | 0 | 0 | 0 | 0 | (7) | |
Common shares issued from treasury stock for stock-based compensation: 2,843,506 and 9,338,857 for the nine months ended September 30, 2015 and 2014, respectively | 34 | (75) | 109 | 0 | 0 | 0 | |
Stock-based compensation expense | 240 | 240 | 0 | 0 | 0 | 0 | |
Net excess tax benefits from stock-based compensation | 7 | 7 | 0 | 0 | 0 | 0 | |
Common shares repurchased: 25,841,608 and 41,762,325 for the nine months ended September 30, 2015 and 2014, respectively | [1] | (2,025) | 0 | (2,025) | 0 | 0 | 0 |
Other | 3 | 2 | 0 | 0 | 0 | 1 | |
Balance at Sep. 30, 2015 | $ 15,968 | $ 5,190 | $ (17,642) | $ 35,191 | $ (6,843) | $ 72 | |
[1] | See Note 11 regarding shares repurchased. |
Consolidated Statement of Chan8
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (Parentheticals) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Common shares issued from treasury stock for stock-based compensation (in shares) | 2,843,506 | 9,338,857 |
Common shares repurchased (in shares) | 25,841,608 | 41,762,325 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flow - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flow from operating activities: | ||
Profit of consolidated and affiliated companies | $ 2,196 | $ 2,948 |
Adjustments for non-cash items: | ||
Depreciation and amortization | 2,272 | 2,368 |
Other | 354 | 327 |
Changes in assets and liabilities, net of acquisitions and divestitures: | ||
Receivables - trade and other | 614 | 393 |
Inventories | 840 | (859) |
Accounts payable | (893) | 518 |
Accrued expenses | (25) | (44) |
Accrued wages, salaries and employee benefits | (704) | 648 |
Customer advances | (36) | (132) |
Other assets - net | (108) | (104) |
Other liabilities - net | 354 | 123 |
Net cash provided by (used for) operating activities | 4,864 | 6,186 |
Cash flow from investing activities: | ||
Capital expenditures - excluding equipment leased to others | (946) | (1,072) |
Expenditures for equipment leased to others | (1,251) | (1,310) |
Proceeds from disposals of leased assets and property, plant and equipment | 473 | 681 |
Additions to finance receivables | (7,099) | (8,464) |
Collections of finance receivables | 6,849 | 7,264 |
Proceeds from sale of finance receivables | 101 | 154 |
Investments and acquisitions (net of cash acquired) | (140) | (18) |
Proceeds from sale of businesses and investments (net of cash sold) | 174 | 196 |
Proceeds from sale of securities | 238 | 347 |
Investments in securities | (296) | (769) |
Other - net | (76) | (12) |
Net cash provided by (used for) investing activities | (1,973) | (3,003) |
Cash flow from financing activities: | ||
Dividends paid | (1,309) | (1,197) |
Distribution to noncontrolling interests | (7) | (7) |
Contribution from noncontrolling interests | 0 | 2 |
Common stock issued, including treasury shares reissued | 34 | 218 |
Treasury shares purchased | (2,025) | (4,238) |
Excess tax benefit from stock-based compensation | 20 | 162 |
Proceeds from debt issued (original maturities greater than three months): | ||
Machinery, Energy & Transportation | 3 | 1,991 |
Financial Products | 4,079 | 7,112 |
Payments on debt (original maturities greater than three months): | ||
Machinery, Energy & Transportation | (513) | (779) |
Financial Products | (6,259) | (7,114) |
Short-term borrowings - net (original maturities three months or less) | 1,922 | 791 |
Net cash provided by (used for) financing activities | (4,055) | (3,059) |
Effect of exchange rate changes on cash | (131) | (123) |
Increase (decrease) in cash and short-term investments | (1,295) | 1 |
Cash and short-term investments at beginning of period | 7,341 | 6,081 |
Cash and short-term investments at end of period | $ 6,046 | $ 6,082 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | 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. B. Basis of presentation In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and nine month periods ended September 30, 2015 and 2014 , (b) the consolidated comprehensive income for the three and nine month periods ended September 30, 2015 and 2014 , (c) the consolidated financial position at September 30, 2015 and December 31, 2014 , (d) the consolidated changes in stockholders’ equity for the nine month periods ended September 30, 2015 and 2014 and (e) the consolidated cash flow for the nine month periods ended September 30, 2015 and 2014 . The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. 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 nine months ended September 30, 2014 on that basis. 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 have revised our Consolidated Statement of Cash Flow to increase Receivables-trade and other and decrease Accounts payable by $149 million for the nine months ended September 30, 2014. The revisions did not impact net cash provided by operating activities. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our Company’s annual report on Form 10-K for the year ended December 31, 2014 ( 2014 Form 10-K). The December 31, 2014 financial position data included herein is derived from the audited consolidated financial statements included in the 2014 Form 10-K but does not include all disclosures required by U.S. GAAP. Unconsolidated Variable Interest Entities (VIEs) 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 economic performance of each entity. Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: (Millions of dollars) September 30, 2015 December 31, 2014 Receivables - trade and other $ 48 $ 36 Receivables - finance 492 216 Long-term receivables - finance 63 285 Investments in unconsolidated affiliated companies 28 83 Guarantees 98 129 Total $ 729 $ 749 |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance | New accounting guidance Reporting discontinued operations and disclosures of disposals of components of an entity – In April 2014, the Financial Accounting Standards Board (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 was effective January 1, 2015 and did not 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, 2018, with early adoption permitted for 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. Variable interest entities (VIE) – In February 2015, the FASB issued accounting guidance on the consolidation of VIEs. The new guidance revises previous guidance by establishing an analysis for determining whether a limited partnership or similar entity is a VIE and whether outsourced decision-maker fees are considered variable interests. In addition, the new guidance revises how a reporting entity evaluates economics and related parties when assessing who should consolidate a VIE. This guidance is effective January 1, 2016. We do not expect the adoption to have a material impact on our financial statements. Presentation of debt issuance costs – In April 2015, the FASB issued accounting guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. Prior to the issuance of the new guidance, debt issuance costs were required to be presented in the balance sheet as an asset. This guidance is effective January 1, 2016. We do not expect the adoption to have a material impact on our financial statements. Fair value disclosures for investments in certain entities that calculate net asset value per share – In May 2015, the FASB issued accounting guidance which removes the requirement to categorize within the fair value hierarchy investments measured at net asset value (or its equivalent) as a practical expedient for fair value. The new guidance requires that the amount of these investments continue to be disclosed to reconcile the fair value hierarchy disclosure to the balance sheet. The guidance is effective January 1, 2016 and will be applied retrospectively with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements. Simplifying the measurement of inventory – In July 2015, the FASB issued accounting guidance which requires that inventory be measured at the lower of cost or net realizable value. Prior to the issuance of the new guidance, inventory was measured at the lower of cost or market. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for preparers. Inventory measured using the last-in, first-out (LIFO) method and the retail inventory method are not impacted by the new guidance. The guidance is effective January 1, 2017. We do not expect the adoption to have a material impact on our financial statements. Simplifying the accounting for measurement-period adjustments – In September 2015, the FASB issued accounting guidance which eliminates the requirement for an acquirer in a business combination to restate prior period financial statements for measurement period adjustments. An acquirer in a business combination is required to report provisional amounts when measurements are incomplete at the end of the reporting period covering the business combination. Prior to the issuance of the new guidance, an acquirer was required to adjust such provisional amounts by restating prior period financial statements. Under the new guidance, the acquirer will recognize the measurement-period adjustment in the period the adjustment is determined. The guidance is effective January 1, 2016 and will be applied prospectively with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-based compensation Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award. Stock-based compensation primarily consists of stock options, restricted stock units (RSUs) and stock-settled stock appreciation rights (SARs). Stock-based compensation awards granted prior to 2015 will vest three years after the date of grant (cliff vesting). The awards granted in 2015 will vest according to a three -year graded vesting schedule. One-third of the award will become vested on the first anniversary of the grant date, one-third of the award will become vested on the second anniversary of the grant date and one-third of the award will become vested on the third anniversary of the grant date. Stock-based compensation expense will be recognized on a straight-line basis over the requisite service period for awards with terms that specify cliff or graded vesting and contain only service conditions. 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". Prior to 2015, our stock-based compensation award terms allowed for the immediate vesting upon separation for employees who met the criteria for a "Long Service Separation" and fulfilled a requisite service period of six months . For these employees, compensation expense was recognized over the period from the grant date to the end date of the six -month requisite service period. Our stock-based compensation award terms for the 2015 grant allowed for the immediate vesting upon separation for employees who met the criteria for a "Long Service Separation" with no requisite service period. For these employees, compensation expense for the 2015 grant was recognized immediately on the grant date. For employees who become eligible for immediate vesting under a "Long Service Separation" subsequent to the grant date 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. 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. We recognized pretax stock-based compensation expense in the amount of $48 million and $240 million for the three and nine months ended September 30, 2015 , respectively; and $70 million and $207 million for the three and nine months ended September 30, 2014 , respectively. The change in stock-based compensation expense for the third quarter was primarily due to the change in award terms for participants that met the criteria for a "Long Service Separation", as the removal of the six -month requisite service period results in higher expense in the first quarter (period of grant) and lower expense over the following two quarters. The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine month periods ended September 30, 2015 and 2014 , respectively: 2015 2014 Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Stock options 7,939,497 $ 23.61 $ 83.34 4,448,218 $ 29.52 $ 96.31 RSUs 1,822,729 $ 77.54 $ 83.01 1,429,512 $ 89.18 $ 96.31 The following table provides the assumptions used in determining the fair value of the stock-based awards for the nine month periods ended September 30, 2015 and 2014 , respectively: Grant Year 2015 2014 Weighted-average dividend yield 2.27% 2.15% Weighted-average volatility 28.4% 28.2% Range of volatilities 19.9-35.9% 18.4-36.2% Range of risk-free interest rates 0.22-2.08% 0.12-2.60% Weighted-average expected lives 8 years 8 years As of September 30, 2015 , the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $261 million , which will be amortized over the weighted-average remaining requisite service periods of approximately 2.0 years. |
Derivative Financial Instrument
Derivative Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Risk Management | Derivative financial instruments and risk management Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option, and cross currency contracts, interest rate swaps, and commodity forward and option contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. Risk management practices, including the use of financial derivative instruments, are presented to the Audit Committee of the Board of Directors at least annually. All derivatives are recognized on the Consolidated Statement of Financial Position at their fair value. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow to be paid (cash flow hedge) or (3) an undesignated instrument. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income (loss) (AOCI), to the extent effective, on the Consolidated Statement of Financial Position until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. Cash flow from designated derivative financial instruments are classified within the same category as the item being hedged on the Consolidated Statement of Cash Flow. Cash flow from undesignated derivative financial instruments are included in the investing category on the Consolidated Statement of Cash Flow. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the Consolidated Statement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. Foreign Currency Exchange Rate Risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our Machinery, 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. As of September 30, 2015 , the maximum term of these outstanding contracts was approximately 15 months . We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, Norwegian krona, 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. As of September 30, 2015 , $19 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings (Other income (expense) in the Consolidated Statement of Results of Operations) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Substantially all such foreign currency forward, option and cross currency contracts are undesignated. Interest Rate Risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate derivatives to manage our exposure to interest rate changes. 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 September 30, 2015 , $4 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in the Consolidated Statement of Results of Operations) 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 September 30, 2015 , $1 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery, 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. 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 the Consolidated Statement of Financial Position are as follows: (Millions of dollars) Consolidated Statement of Financial Asset (Liability) Fair Value Position Location September 30, 2015 December 31, 2014 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 16 $ 25 Machinery, Energy & Transportation Accrued expenses (47 ) (134 ) Machinery, Energy & Transportation Other liabilities (2 ) — Interest rate contracts Financial Products Receivables – trade and other 1 6 Financial Products Long-term receivables – trade and other 65 73 Financial Products Accrued expenses (4 ) (8 ) $ 29 $ (38 ) Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 6 $ 2 Machinery, Energy & Transportation Accrued expenses (11 ) (43 ) Financial Products Receivables – trade and other 3 5 Financial Products Long-term receivables – trade and other 35 17 Financial Products Accrued expenses (5 ) (15 ) Commodity contracts Machinery, Energy & Transportation Accrued expenses (12 ) (14 ) $ 16 $ (48 ) The total notional amounts of the derivative instruments are as follows: (Millions of dollars) September 30, 2015 December 31, 2014 Machinery, Energy & Transportation $ 2,198 $ 3,128 Financial Products $ 3,785 $ 5,249 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 the Consolidated Statement of Results of Operations is as follows: Fair Value Hedges Three Months Ended Three Months Ended (Millions of dollars) Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ 3 $ (3 ) $ (19 ) $ 1 $ 3 $ (3 ) $ (19 ) $ 1 Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (11 ) $ 10 $ (38 ) $ 24 $ (11 ) $ 10 $ (38 ) $ 24 Cash Flow Hedges Three Months Ended September 30, 2015 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (18 ) Other income (expense) $ (29 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products (1 ) Interest expense of Financial Products (1 ) — $ (19 ) $ (31 ) $ — Three Months Ended September 30, 2014 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (45 ) Other income (expense) $ 4 $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products (2 ) Interest expense of Financial Products (2 ) — $ (47 ) $ 1 $ — Nine Months Ended September 30, 2015 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (25 ) Other income (expense) $ (101 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (4 ) — Financial Products 1 Interest expense of Financial Products (4 ) — $ (24 ) $ (109 ) $ — Nine Months Ended September 30, 2014 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (20 ) Other income (expense) $ 24 $ — Interest rate contracts Machinery, Energy & Transportation (63 ) Interest expense excluding Financial Products (3 ) — Financial Products (7 ) Interest expense of Financial Products (4 ) — $ (90 ) $ 17 $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: (Millions of dollars) Classification of Gains (Losses) Three Months Ended Three Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 7 $ (44 ) Financial Products Other income (expense) 6 (19 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (8 ) (6 ) $ 5 $ (69 ) Classification of Gains (Losses) Nine Months Ended Nine Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ (22 ) $ (35 ) Financial Products Other income (expense) (18 ) (36 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (15 ) (3 ) $ (55 ) $ (74 ) 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 September 30, 2015 and December 31, 2014 , no cash collateral was received or pledged under the master netting agreements. The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event is as follows: September 30, 2015 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 $ 22 $ — $ 22 $ (20 ) $ — $ 2 Financial Products 104 — 104 (7 ) — 97 Total $ 126 $ — $ 126 $ (27 ) $ — $ 99 September 30, 2015 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 $ (72 ) $ — $ (72 ) $ 20 $ — $ (52 ) Financial Products (9 ) — (9 ) 7 — (2 ) Total $ (81 ) $ — $ (81 ) $ 27 $ — $ (54 ) 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 ) |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost or market, principally using the last-in, first-out (LIFO) method, and are comprised of the following: (Millions of dollars) September 30, December 31, Raw materials $ 2,862 $ 2,986 Work-in-process 1,987 2,455 Finished goods 6,042 6,504 Supplies 259 260 Total inventories $ 11,150 $ 12,205 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Companies | 9 Months Ended |
Sep. 30, 2015 | |
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: (Millions of dollars) Three Months Ended Nine Months Ended 2015 2014 2015 2014 Sales $ 205 $ 453 $ 558 $ 1,253 Cost of sales 166 357 437 974 Gross profit $ 39 $ 96 $ 121 $ 279 Profit (loss) $ (10 ) $ (7 ) $ (2 ) $ (17 ) Financial Position of unconsolidated affiliated companies: ( Millions of dollars ) September 30, December 31, Assets: Current assets $ 506 $ 716 Property, plant and equipment – net 187 653 Other assets 198 557 891 1,926 Liabilities: Current liabilities 298 518 Long-term debt due after one year 206 867 Other liabilities 13 215 517 1,600 Equity $ 374 $ 326 Caterpillar’s investments in unconsolidated affiliated companies: (Millions of dollars) September 30, December 31, Investments in equity method companies $ 188 $ 248 Plus: Investments in cost method companies 43 9 Total investments in unconsolidated affiliated companies $ 231 $ 257 The changes in the 2015 results of operations, financial position and investments in equity method companies noted above are primarily related to the sale of Caterpillar's 35 percent equity interest in the third party logistics business, formerly Caterpillar Logistics Services LLC. In February 2015, we sold our interest to an affiliate of The Goldman Sachs Group, Inc. and investment funds affiliated with Rhône Capital LLC for $177 million , which was comprised of $167 million in cash and a $10 million note receivable included in Long-term receivables - trade and other in the Consolidated Statement of Financial Position. As a result of the sale, we recognized a pretax gain of $120 million (included in Other income (expense)) and derecognized the carrying value of our noncontrolling interest of $57 million , which was previously included in Investments in unconsolidated affiliated companies in the Consolidated Statement of Financial Position. The gain on the disposal is included as a reconciling item between Segment profit and Consolidated profit before taxes. The sale of this investment supports Caterpillar's increased focus on growth opportunities in its core businesses. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible assets and goodwill A. Intangible assets Intangible assets are comprised of the following: September 30, 2015 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,427 $ (773 ) $ 1,654 Intellectual property 11 1,720 (645 ) 1,075 Other 13 187 (75 ) 112 Total finite-lived intangible assets 14 $ 4,334 $ (1,493 ) $ 2,841 December 31, 2014 Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net 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 Amortization expense for the three and nine months ended September 30, 2015 was $81 million and $255 million , respectively. Amortization expense for the three and nine months ended September 30, 2014 was $91 million and $276 million , respectively. Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Three Months of 2015 2016 2017 2018 2019 Thereafter $88 $327 $325 $319 $317 $1,465 B. Goodwill We test goodwill for impairment annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing a qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit's goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the two-step process, the first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, there is an indication that an impairment may exist and the second step is required. In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit's goodwill, the difference is recognized as an impairment loss. No goodwill was impaired during the nine months ended September 30, 2015 or 2014 . During 2015, we acquired net assets with related goodwill of $21 million in the Energy & Transportation segment. The changes in carrying amount of goodwill by reportable segment for the nine months ended September 30, 2015 were as follows: (Millions of dollars) December 31, Acquisitions Other Adjustments 1 September 30, Construction Industries Goodwill $ 275 $ — $ (10 ) $ 265 Resource Industries Goodwill 4,287 — (119 ) 4,168 Impairments (580 ) — — (580 ) Net goodwill 3,707 — (119 ) 3,588 Energy & Transportation Goodwill 2,542 21 (38 ) 2,525 All Other 2 Goodwill 192 — (2 ) 190 Impairments (22 ) — — (22 ) Net goodwill 170 — (2 ) 168 Consolidated total Goodwill 7,296 21 (169 ) 7,148 Impairments (602 ) — — (602 ) Net goodwill $ 6,694 $ 21 $ (169 ) $ 6,546 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segments (See Note 15). |
Available-For-Sale Securities
Available-For-Sale Securities | 9 Months Ended |
Sep. 30, 2015 | |
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. These investments are primarily included in Other assets in the Consolidated Statement of Financial Position. Unrealized gains and losses arising from the revaluation of available-for-sale securities are included, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position). Realized gains and losses on sales of investments are generally determined using the specific identification method for debt and equity securities and are included in Other income (expense) in the Consolidated Statement of Results of Operations. The cost basis and fair value of available-for-sale securities were as follows: September 30, 2015 December 31, 2014 (Millions of dollars) Cost Basis Unrealized Pretax Net Gains (Losses) Fair Value Cost Basis Unrealized Pretax Net Gains (Losses) Fair Value Government debt U.S. treasury bonds $ 13 $ — $ 13 $ 10 $ — $ 10 Other U.S. and non-U.S. government bonds 82 1 83 94 — 94 Corporate bonds Corporate bonds 700 13 713 677 16 693 Asset-backed securities 96 1 97 103 2 105 Mortgage-backed debt securities U.S. governmental agency 270 4 274 292 2 294 Residential 13 — 13 15 — 15 Commercial 59 3 62 63 4 67 Equity securities Large capitalization value 212 38 250 150 83 233 Real estate investment trust (REIT) 8 — 8 — — — Smaller company growth 31 19 50 17 26 43 Total $ 1,484 $ 79 $ 1,563 $ 1,421 $ 133 $ 1,554 Investments in an unrealized loss position that are not other-than-temporarily impaired: September 30, 2015 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds Corporate bonds $ 155 $ 2 $ 23 $ — $ 178 $ 2 Mortgage-backed debt securities U.S. governmental agency 15 — 60 1 75 1 Equity securities Large capitalization value 84 8 1 — 85 8 Small company growth 13 2 — — 13 2 Total $ 267 $ 12 $ 84 $ 1 $ 351 $ 13 December 31, 2014 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized 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. 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 September 30, 2015 . 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 September 30, 2015 . Equity Securities. The unrealized losses on our investments in equity securities relate to inherent risks of individual holdings and/or their respective sectors. We do not consider these investments to be other-than-temporarily impaired as of September 30, 2015 . The cost basis and fair value of the available-for-sale debt securities at September 30, 2015 , by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. September 30, 2015 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 102 $ 102 Due after one year through five years 739 752 Due after five years through ten years 21 22 Due after ten years 29 30 U.S. governmental agency mortgage-backed securities 270 274 Residential mortgage-backed securities 13 13 Commercial mortgage-backed securities 59 62 Total debt securities – available-for-sale $ 1,233 $ 1,255 Sales of Securities: Three Months Ended Nine Months Ended (Millions of dollars) 2015 2014 2015 2014 Proceeds from the sale of available-for-sale securities $ 110 $ 125 $ 238 $ 347 Gross gains from the sale of available-for-sale securities $ 32 $ 22 $ 38 $ 36 Gross losses from the sale of available-for-sale securities $ 1 $ 1 $ 2 $ 1 |
Postretirement Benefits
Postretirement Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Benefits | Postretirement benefits A. Pension and postretirement benefit costs U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) September 30, September 30, September 30, 2015 2014 2015 2014 2015 2014 For the three months ended: Components of net periodic benefit cost: Service cost $ 45 $ 39 $ 28 $ 28 $ 26 $ 19 Interest cost 151 162 37 47 46 54 Expected return on plan assets 1 (220 ) (221 ) (66 ) (66 ) (13 ) (13 ) Amortization of: Prior service cost (credit) 2 1 5 — — (14 ) (14 ) Net actuarial loss (gain) 3 126 98 25 22 13 10 Net periodic benefit cost 103 83 24 31 58 56 Curtailments, settlements and termination benefits 4 — — 7 5 — — Total cost included in operating profit $ 103 $ 83 $ 31 $ 36 $ 58 $ 56 For the nine months ended: Components of net periodic benefit cost: Service cost $ 136 $ 118 $ 85 $ 83 $ 76 $ 62 Interest cost 454 486 115 139 138 160 Expected return on plan assets 1 (659 ) (664 ) (199 ) (195 ) (39 ) (39 ) Amortization of: Prior service cost (credit) 2 1 13 — — (41 ) (41 ) Net actuarial loss (gain) 3 380 294 75 65 39 31 Net periodic benefit cost 312 247 76 92 173 173 Curtailments, settlements and termination benefits 4 — — 10 12 — — Total cost included in operating profit $ 312 $ 247 $ 86 $ 104 $ 173 $ 173 Weighted-average assumptions used to determine net cost: Discount rate 3.8 % 4.6 % 3.3 % 4.1 % 3.9 % 4.6 % Expected rate of return on plan assets 7.4 % 7.8 % 6.8 % 6.9 % 7.8 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 4.2 % 4.0 % 4.0 % 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 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. 3 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. 4 Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations. We made $36 million and $149 million of contributions to our pension plans during the three and nine months ended September 30, 2015 , respectively. We currently anticipate full-year 2015 contributions of approximately $180 million , all of which are required. We made $68 million and $455 million of contributions to our pension plans during the three and nine months ended September 30, 2014 , respectively. B. Defined contribution benefit costs Total company costs related to our defined contribution plans were as follows: Three Months Ended Nine Months Ended (Millions of dollars) 2015 2014 2015 2014 U.S. Plans $ 31 $ 62 $ 188 $ 232 Non-U.S. Plans 19 21 58 62 $ 50 $ 83 $ 246 $ 294 The decrease in the U.S. defined contribution benefit costs for the three and nine months ended September 30, 2015 is primarily due to fair value adjustments related to our non-qualified deferred compensation plans. |
Guarantees and Product Warranty
Guarantees and Product Warranty | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Product Warranty | Guarantees and product warranty Caterpillar dealer performance guarantees 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 have varying terms and are issued to insure governmental agencies against nonperformance by certain dealers. We also provided guarantees to third-parties related to the performance of contractual obligations by certain Caterpillar dealers. These guarantees have varying terms and cover potential financial losses incurred by the third-parties resulting from the dealers’ nonperformance. Customer loan guarantees 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. Supplier consortium performance guarantee 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 guarantee covers 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. Third party logistics business lease guarantees We have provided guarantees to third-party lessors for certain properties leased by a third party logistics business, formerly Caterpillar Logistics Services LCC, in which we sold our 35 percent equity interest in the first quarter of 2015 (see Note 6). 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 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 September 30, 2015 and December 31, 2014 , the related liability was $13 million and $12 million , respectively. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees are as follows: (Millions of dollars) September 30, December 31, Caterpillar dealer performance guarantees $ 220 $ 209 Customer loan guarantees 58 49 Supplier consortium performance guarantee 294 321 Third party logistics business lease guarantees 112 129 Other guarantees 23 32 Total guarantees $ 707 $ 740 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 September 30, 2015 and December 31, 2014 , the SPC’s assets of $1,289 million and $1,086 million , respectively, are primarily comprised of loans to dealers and the SPC’s liabilities of $1,288 million and $1,085 million , respectively, are primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial's creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. Our product warranty liability is determined by applying historical claim rate experience to the current field population and dealer inventory. Generally, historical claim rates are based on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). Specific rates are developed for each product shipment month and are updated monthly based on actual warranty claim experience. (Millions of dollars) 2015 Warranty liability, January 1 $ 1,426 Reduction in liability (payments) (650 ) Increase in liability (new warranties) 604 Warranty liability, September 30 $ 1,380 (Millions of dollars) 2014 Warranty liability, January 1 $ 1,367 Reduction in liability (payments) (1,071 ) Increase in liability (new warranties) 1,130 1 Warranty liability, December 31 $ 1,426 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. |
Profit Per Share
Profit Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Profit Per Share | Profit per share Computations of profit per share: Three Months Ended Nine Months Ended (Dollars in millions except per share data) 2015 2014 2015 2014 Profit for the period (A) 1 $ 368 $ 1,017 $ 2,189 $ 2,938 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 588.4 611.5 597.9 620.6 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 6.4 11.3 7.4 12.1 Average common shares outstanding for fully diluted computation (C) 2 594.8 622.8 605.3 632.7 Profit per share of common stock: Assuming no dilution (A/B) $ 0.63 $ 1.66 $ 3.66 $ 4.73 Assuming full dilution (A/C) 2 $ 0.62 $ 1.63 $ 3.62 $ 4.64 Shares outstanding as of September 30 (in millions) 582.2 605.4 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 22,281,448 common shares were outstanding for the three and nine months ended September 30, 2015 , which were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. For the three and nine months ended September 30, 2014 , there were outstanding SARs and stock options to purchase 7,494,204 and 10,288,573 common shares which were anti-dilutive. 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 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 . In July 2015, we entered into a definitive agreement with Citibank, N.A. to purchase shares of our common stock under an accelerated stock repurchase transaction (July 2015 ASR Agreement), which was completed in September 2015. Pursuant to the terms of the July 2015 ASR Agreement, a total of approximately 19.6 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $1.5 billion . For the nine months ended September 30, 2015 , a total of 25.8 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $2.0 billion . Through the end of the third quarter of 2015, approximately $4.5 billion of the $10.0 billion authorization was spent. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) Comprehensive income and its components are presented in the Consolidated Statement of Comprehensive Income. Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Stockholders’ Equity, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Three Months Ended September 30, 2015 Balance at June 30, 2015 $ (1,555 ) $ (5,183 ) $ (73 ) $ 82 $ (6,729 ) Other comprehensive income (loss) before reclassifications (234 ) 45 (12 ) (15 ) (216 ) Amounts reclassified from accumulated other comprehensive (income) loss — 100 20 (18 ) 102 Other comprehensive income (loss) (234 ) 145 8 (33 ) (114 ) Balance at September 30, 2015 $ (1,789 ) $ (5,038 ) $ (65 ) $ 49 $ (6,843 ) Three Months Ended September 30, 2014 Balance at June 30, 2014 $ 244 $ (3,981 ) $ (42 ) $ 96 $ (3,683 ) Other comprehensive income (loss) before reclassifications (710 ) 4 (30 ) (5 ) (741 ) Amounts reclassified from accumulated other comprehensive (income) loss — 80 — (13 ) 67 Other comprehensive income (loss) (710 ) 84 (30 ) (18 ) (674 ) Balance at September 30, 2014 $ (466 ) $ (3,897 ) $ (72 ) $ 78 $ (4,357 ) (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Nine Months Ended September 30, 2015 Balance at December 31, 2014 $ (988 ) $ (5,407 ) $ (119 ) $ 83 $ (6,431 ) Other comprehensive income (loss) before reclassifications (801 ) 69 (15 ) (13 ) (760 ) Amounts reclassified from accumulated other comprehensive (income) loss — 300 69 (21 ) 348 Other comprehensive income (loss) (801 ) 369 54 (34 ) (412 ) Balance at September 30, 2015 $ (1,789 ) $ (5,038 ) $ (65 ) $ 49 $ (6,843 ) Nine Months Ended September 30, 2014 Balance at December 31, 2013 $ 176 $ (4,152 ) $ (5 ) $ 83 $ (3,898 ) Other comprehensive income (loss) before reclassifications (642 ) 15 (57 ) 18 (666 ) Amounts reclassified from accumulated other comprehensive (income) loss — 240 (10 ) (23 ) 207 Other comprehensive income (loss) (642 ) 255 (67 ) (5 ) (459 ) Balance at September 30, 2014 $ (466 ) $ (3,897 ) $ (72 ) $ 78 $ (4,357 ) The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations is as follows: Three Months Ended September 30, (Millions of dollars) Classification of income (expense) 2015 2014 Pension and other postretirement benefits: Amortization of actuarial gain (loss) Note 9 1 $ (164 ) $ (130 ) Amortization of prior service credit (cost) Note 9 1 13 9 Reclassifications before tax (151 ) (121 ) Tax (provision) benefit 51 41 Reclassifications net of tax $ (100 ) $ (80 ) Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (29 ) $ 4 Interest rate contracts Interest expense excluding Financial Products (1 ) (1 ) Interest rate contracts Interest expense of Financial Products (1 ) (2 ) Reclassifications before tax (31 ) 1 Tax (provision) benefit 11 (1 ) Reclassifications net of tax $ (20 ) $ — Available-for-sale securities: Realized gain (loss) Other income (expense) $ 27 $ 20 Tax (provision) benefit (9 ) (7 ) Reclassifications net of tax $ 18 $ 13 Total reclassifications from Accumulated other comprehensive income (loss) $ (102 ) $ (67 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. Nine Months Ended September 30, (Millions of dollars) Classification of income (expense) 2015 2014 Pension and other postretirement benefits: Amortization of actuarial gain (loss) Note 9 1 $ (494 ) $ (390 ) Amortization of prior service credit (cost) Note 9 1 40 28 Reclassifications before tax (454 ) (362 ) Tax (provision) benefit 154 122 Reclassifications net of tax $ (300 ) $ (240 ) Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (101 ) $ 24 Interest rate contracts Interest expense excluding Financial Products (4 ) (3 ) Interest rate contracts Interest expense of Financial Products (4 ) (4 ) Reclassifications before tax (109 ) 17 Tax (provision) benefit 40 (7 ) Reclassifications net of tax $ (69 ) $ 10 Available-for-sale securities: Realized gain (loss) Other income (expense) $ 31 $ 34 Tax (provision) benefit (10 ) (11 ) Reclassifications net of tax $ 21 $ 23 Total reclassifications from Accumulated other comprehensive income (loss) $ (348 ) $ (207 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. |
Environmental and Legal Matters
Environmental and Legal Matters | 9 Months Ended |
Sep. 30, 2015 | |
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 the Consolidated Statement of Financial Position. We believe 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 has received additional subpoenas relating to this investigation requesting additional documents and information relating to, among other things, the purchase and resale of replacement parts by Caterpillar Inc. and non-U.S. Caterpillar subsidiaries, dividend distributions of certain non-U.S. Caterpillar subsidiaries, and Caterpillar SARL and related structures. 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 and is producing documents responsive to a voluntary request made by the SEC. 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 has received additional subpoenas relating to this investigation, and the Company is cooperating with the SEC regarding 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 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, we believe there is no more than a remote chance that any liability arising from these matters would be material. Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The provision for income taxes for the first nine months of 2015 reflects an estimated annual tax rate of 27 percent compared with 29.5 percent for the first nine months of 2014 , excluding the items discussed below. The decrease is primarily due to a more favorable expected geographic mix of profits from a tax perspective in 2015, including the impact of restructuring costs primarily at higher U.S. tax rates. The impact of the U.S. research and development tax credit is not included in either the first nine months of 2015 or 2014 as it was renewed for 2014 in the fourth quarter of 2014 and has not been renewed for 2015. The provision for income taxes for the first nine months of 2015 also includes a $42 million net charge to increase unrecognized tax benefits by $68 million as discussed below, offset by a benefit of $26 million to record U.S. refund claims related to prior tax years currently under examination. The provision for income taxes for the first nine months of 2014 also included a net benefit of $21 million to adjust prior years' U.S. taxes and interest. On January 30, 2015, we received a Revenue Agent's Report (RAR) from the 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 are vigorously contesting 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. Based on the information currently available, we do not anticipate a significant increase or decrease to our unrecognized tax benefits for this matter within the next 12 months. We currently believe the ultimate disposition of this matter will not have a material adverse effect on our consolidated financial position, liquidity or results of operations. 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. As previously disclosed, we have been monitoring several court cases involving other taxpayers relating to the disallowance of their foreign tax credits. In the third quarter of 2015, decisions of the U.S. Court of Appeals for the Second Circuit involving other taxpayers caused us to conclude the benefits of this uncertain tax position are no longer more likely than not to be sustained based on technical merits. As tax benefits related to this tax position can no longer be recognized in the financial statements, we increased unrecognized tax benefits by $68 million . We will continue to monitor ongoing court cases involving other taxpayers for information that may impact our analysis of this tax position. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
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 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, 2015, responsibility for product management for certain components moved from Resource Industries to Energy & Transportation. Segment information for 2014 has been retrospectively adjusted to conform to the 2015 presentation. 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. Inter-segment sales are a source of revenue for this segment. Energy & Transportation : 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. 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 39 to 45 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 and related costs: Primarily costs for employee separations, long-lived asset impairments and contract terminations. Beginning in the third quarter of 2015, restructuring costs also include other exit-related costs associated with the consolidation of manufacturing facilities as we expect these costs to be significant as we implement the restructuring plan that was announced on September 24, 2015. Other exit-related costs are primarily for equipment relocation and accelerated depreciation. A table, Reconciliation of Restructuring and related costs on page 42, has been included to illustrate how segment profit would have been impacted by the restructuring and related costs. See Note 18 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. For example, certain costs are reported on the cash basis for segment reporting and the accrual basis for consolidated external reporting. Reportable Segments Three Months Ended September 30, (Millions of dollars) 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at September 30 Capital expenditures Construction Industries $ 3,792 $ 34 $ 3,826 $ 118 $ 378 $ 5,712 $ 54 Resource Industries 1,796 93 1,889 158 (68 ) 8,682 66 Energy & Transportation 4,213 417 4,630 161 635 8,670 160 Machinery, Energy & Transportation $ 9,801 $ 544 $ 10,345 $ 437 $ 945 $ 23,064 $ 280 Financial Products Segment 752 — 752 210 207 35,414 359 Total $ 10,553 $ 544 $ 11,097 $ 647 $ 1,152 $ 58,478 $ 639 2014 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 4,471 $ 67 $ 4,538 $ 129 $ 483 $ 6,596 $ 82 Resource Industries 2,172 105 2,277 172 122 9,497 65 Energy & Transportation 5,585 570 6,155 165 1,151 8,470 146 Machinery, Energy & Transportation $ 12,228 $ 742 $ 12,970 $ 466 $ 1,756 $ 24,563 $ 293 Financial Products Segment 851 — 851 229 220 37,011 427 Total $ 13,079 $ 742 $ 13,821 $ 695 $ 1,976 $ 61,574 $ 720 Reportable Segments Nine Months Ended September 30, (Millions of dollars) 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment Capital expenditures Construction Industries $ 12,928 $ 130 $ 13,058 $ 359 $ 1,705 $ 5,712 $ 139 Resource Industries 5,715 268 5,983 482 17 8,682 134 Energy & Transportation 13,519 1,418 14,937 477 2,527 8,670 527 Machinery, Energy & Transportation $ 32,162 $ 1,816 $ 33,978 $ 1,318 $ 4,249 $ 23,064 $ 800 Financial Products Segment 2,332 — 2,332 638 618 35,414 995 Total $ 34,494 $ 1,816 $ 36,310 $ 1,956 $ 4,867 $ 58,478 $ 1,795 2014 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 14,942 $ 198 $ 15,140 $ 394 $ 1,845 $ 6,596 $ 225 Resource Industries 6,536 318 6,854 514 379 9,497 165 Energy & Transportation 15,536 1,706 17,242 483 3,012 8,470 317 Machinery, Energy & Transportation $ 37,014 $ 2,222 $ 39,236 $ 1,391 $ 5,236 $ 24,563 $ 707 Financial Products Segment 2,502 — 2,502 665 704 37,011 1,206 Total $ 39,516 $ 2,222 $ 41,738 $ 2,056 $ 5,940 $ 61,574 $ 1,913 Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended September 30, 2015 Total external sales and revenues from reportable segments $ 9,801 $ 752 $ — $ 10,553 All Other operating segments 506 — — 506 Other (22 ) 20 (95 ) 1 (97 ) Total sales and revenues $ 10,285 $ 772 $ (95 ) $ 10,962 Three Months Ended September 30, 2014 Total external sales and revenues from reportable segments $ 12,228 $ 851 $ — $ 13,079 All Other operating segments 583 — — 583 Other (53 ) 24 (84 ) 1 (113 ) Total sales and revenues $ 12,758 $ 875 $ (84 ) $ 13,549 1 Elimination of Financial Products revenues from Machinery, Energy & Transportation. Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Nine Months Ended September 30, 2015 Total external sales and revenues from reportable segments $ 32,162 $ 2,332 $ — $ 34,494 All Other operating segments 1,729 — — 1,729 Other (62 ) 58 (238 ) 1 (242 ) Total sales and revenues $ 33,829 $ 2,390 $ (238 ) $ 35,981 Nine Months Ended September 30, 2014 Total external sales and revenues from reportable segments $ 37,014 $ 2,502 $ — $ 39,516 All Other operating segments 1,720 — — 1,720 Other (92 ) 55 (259 ) 1 (296 ) Total sales and revenues $ 38,642 $ 2,557 $ (259 ) $ 40,940 1 Elimination of Financial Products revenues from Machinery, Energy & Transportation. Reconciliation of Consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended September 30, 2015 Total profit from reportable segments $ 945 $ 207 $ 1,152 All Other operating segments 196 — 196 Cost centers 58 — 58 Corporate costs (376 ) — (376 ) Timing 38 — 38 Restructuring and related costs (101 ) — (101 ) Methodology differences: Inventory/cost of sales (22 ) — (22 ) Postretirement benefit expense (78 ) — (78 ) Financing costs (128 ) — (128 ) Equity in (profit) loss of unconsolidated affiliated companies 4 — 4 Currency (157 ) — (157 ) Other income/expense methodology differences (51 ) — (51 ) Other methodology differences (16 ) (1 ) (17 ) Total consolidated profit before taxes $ 312 $ 206 $ 518 Three Months Ended September 30, 2014 Total profit from reportable segments $ 1,756 $ 220 $ 1,976 All Other operating segments 228 — 228 Cost centers 31 — 31 Corporate costs (408 ) — (408 ) Timing (125 ) — (125 ) Restructuring costs (81 ) — (81 ) Methodology differences: Inventory/cost of sales 6 — 6 Postretirement benefit expense (84 ) — (84 ) Financing costs (136 ) — (136 ) Equity in (profit) loss of unconsolidated affiliated companies (4 ) — (4 ) Currency 39 — 39 Other income/expense methodology differences (55 ) — (55 ) Other methodology differences (9 ) 3 (6 ) Total consolidated profit before taxes $ 1,158 $ 223 $ 1,381 Reconciliation of Consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Nine Months Ended September 30, 2015 Total profit from reportable segments $ 4,249 $ 618 $ 4,867 All Other operating segments 638 — 638 Cost centers 139 — 139 Corporate costs (1,307 ) — (1,307 ) Timing 15 — 15 Restructuring and related costs (226 ) — (226 ) Methodology differences: Inventory/cost of sales (30 ) — (30 ) Postretirement benefit expense (301 ) — (301 ) Financing costs (394 ) — (394 ) Equity in (profit) loss of unconsolidated affiliated companies — — — Currency (257 ) — (257 ) Other income/expense methodology differences (48 ) — (48 ) Other methodology differences (33 ) 2 (31 ) Total consolidated profit before taxes $ 2,445 $ 620 $ 3,065 Nine Months Ended September 30, 2014 Total profit from reportable segments $ 5,236 $ 704 $ 5,940 All Other operating segments 686 — 686 Cost centers 105 — 105 Corporate costs (1,201 ) — (1,201 ) Timing (205 ) — (205 ) Restructuring costs (344 ) — (344 ) Methodology differences: Inventory/cost of sales 29 — 29 Postretirement benefit expense (304 ) — (304 ) Financing costs (373 ) — (373 ) Equity in (profit) loss of unconsolidated affiliated companies (6 ) — (6 ) Currency 16 — 16 Other income/expense methodology differences (186 ) — (186 ) Other methodology differences (13 ) (1 ) (14 ) Total consolidated profit before taxes $ 3,440 $ 703 $ 4,143 Reconciliation of Restructuring and related costs: As noted above, restructuring and related 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 and related costs: (Millions of dollars) Segment profit Restructuring and related costs Segment profit with restructuring and related costs Three Months Ended September 30, 2015 Construction Industries $ 378 $ (22 ) $ 356 Resource Industries (68 ) (40 ) (108 ) Energy & Transportation 635 (10 ) 625 Financial Products Segment 207 — 207 All Other operating segments 196 (16 ) 180 Total $ 1,348 $ (88 ) $ 1,260 Three Months Ended September 30, 2014 Construction Industries $ 483 $ (30 ) $ 453 Resource Industries 122 (31 ) 91 Energy & Transportation 1,151 (5 ) 1,146 Financial Products Segment 220 — 220 All Other operating segments 228 (12 ) 216 Total $ 2,204 $ (78 ) $ 2,126 Reconciliation of Restructuring and related costs: (Millions of dollars) Segment profit Restructuring and related costs Segment profit with restructuring and related costs Nine Months Ended September 30, 2015 Construction Industries $ 1,705 $ (61 ) $ 1,644 Resource Industries 17 (83 ) (66 ) Energy & Transportation 2,527 (24 ) 2,503 Financial Products Segment 618 — 618 All Other operating segments 638 (35 ) 603 Total $ 5,505 $ (203 ) $ 5,302 Nine Months Ended September 30, 2014 Construction Industries $ 1,845 $ (257 ) $ 1,588 Resource Industries 379 (52 ) 327 Energy & Transportation 3,012 (11 ) 3,001 Financial Products Segment 704 — 704 All Other operating segments 686 (18 ) 668 Total $ 6,626 $ (338 ) $ 6,288 Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total September 30, 2015 Total assets from reportable segments $ 23,064 $ 35,414 $ — $ 58,478 All Other operating segments 2,675 — — 2,675 Items not included in segment assets: Cash and short-term investments 4,808 — — 4,808 Intercompany receivables 1,172 — (1,172 ) — Investment in Financial Products 4,160 — (4,160 ) — Deferred income taxes 3,552 — (700 ) 2,852 Goodwill and intangible assets 3,583 — — 3,583 Property, plant and equipment – net and other assets 1,221 — — 1,221 Operating lease methodology difference (211 ) — — (211 ) Liabilities included in segment assets 8,608 — — 8,608 Inventory methodology differences (2,629 ) — — (2,629 ) Other (357 ) — (59 ) (416 ) Total assets $ 49,646 $ 35,414 $ (6,091 ) $ 78,969 December 31, 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 Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended September 30, 2015 Total depreciation and amortization from reportable segments $ 437 $ 210 $ 647 Items not included in segment depreciation and amortization: All Other operating segments 68 — 68 Cost centers 39 — 39 Other (6 ) 10 4 Total depreciation and amortization $ 538 $ 220 $ 758 Three Months Ended September 30, 2014 Total depreciation and amortization from reportable segments $ 466 $ 229 $ 695 Items not included in segment depreciation and amortization: All Other operating segments 70 — 70 Cost centers 37 — 37 Other (10 ) 6 (4 ) Total depreciation and amortization $ 563 $ 235 $ 798 Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Nine Months Ended September 30, 2015 Total depreciation and amortization from reportable segments $ 1,318 $ 638 $ 1,956 Items not included in segment depreciation and amortization: All Other operating segments 202 — 202 Cost centers 115 — 115 Other (27 ) 26 (1 ) Total depreciation and amortization $ 1,608 $ 664 $ 2,272 Nine Months Ended September 30, 2014 Total depreciation and amortization from reportable segments $ 1,391 $ 665 $ 2,056 Items not included in segment depreciation and amortization: All Other operating segments 209 — 209 Cost centers 111 — 111 Other (26 ) 18 (8 ) Total depreciation and amortization $ 1,685 $ 683 $ 2,368 Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended September 30, 2015 Total capital expenditures from reportable segments $ 280 $ 359 $ — $ 639 Items not included in segment capital expenditures: All Other operating segments 68 — — 68 Cost centers 52 — — 52 Timing (35 ) — — (35 ) Other (29 ) 35 (4 ) 2 Total capital expenditures $ 336 $ 394 $ (4 ) $ 726 Three Months Ended September 30, 2014 Total capital expenditures from reportable segments $ 293 $ 427 $ — $ 720 Items not included in segment capital expenditures: All Other operating segments 93 — — 93 Cost centers 17 — — 17 Timing 10 — — 10 Other (18 ) 37 (12 ) 7 Total capital expenditures $ 395 $ 464 $ (12 ) $ 847 Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Nine Months Ended September 30, 2015 Total capital expenditures from reportable segments $ 800 $ 995 $ — $ 1,795 Items not included in segment capital expenditures: All Other operating segments 159 — — 159 Cost centers 98 — — 98 Timing 199 — — 199 Other (161 ) 130 (23 ) (54 ) Total capital expenditures $ 1,095 $ 1,125 $ (23 ) $ 2,197 Nine Months Ended September 30, 2014 Total capital expenditures from reportable segments $ 707 $ 1,206 $ — $ 1,913 Items not included in segment capital expenditures: All Other operating segments 187 — — 187 Cost centers 66 — — 66 Timing 239 — — 239 Other (66 ) 89 (46 ) (23 ) Total capital expenditures $ 1,133 $ 1,295 $ (46 ) $ 2,382 |
Cat Financial Financing Activit
Cat Financial Financing Activities | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Cat Financial Financing Activities | Cat Financial financing activities Credit quality of finance 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 finance receivables For all classes, a finance receivable 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 finance receivable. Finance receivables reviewed for impairment include those that are past due, non-performing or in bankruptcy. Recognition of income is suspended and the finance receivable 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 finance receivable on non-accrual status). Accrual is resumed, and previously suspended income is recognized, when the finance receivable becomes contractually current and/or collection doubts are removed. Cash receipts on impaired finance receivables are recorded against the receivable and then to any unrecognized income. There were no impaired finance receivables as of September 30, 2015 or December 31, 2014 , for the Dealer portfolio segment. The average recorded investment for impaired finance receivables within the Dealer portfolio segment was zero for the three and nine months ended September 30, 2015 and 2014 . Individually impaired finance receivables for the Customer portfolio segment were as follows: September 30, 2015 December 31, 2014 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Impaired Finance Receivables With No Allowance Recorded Customer North America $ 10 $ 10 $ — $ 14 $ 14 $ — Europe 43 42 — 44 43 — Asia Pacific 2 1 — 1 1 — Mining 56 56 — 29 29 — Latin America 31 31 — 34 34 — Caterpillar Power Finance 191 191 — 129 128 — Total $ 333 $ 331 $ — $ 251 $ 249 $ — Impaired Finance Receivables With An Allowance Recorded Customer North America $ 13 $ 13 $ 3 $ 6 $ 6 $ 1 Europe 9 8 4 12 12 4 Asia Pacific 36 36 5 29 29 8 Mining 13 13 5 138 137 9 Latin America 60 60 22 42 42 12 Caterpillar Power Finance 89 88 39 135 134 41 Total $ 220 $ 218 $ 78 $ 362 $ 360 $ 75 Total Impaired Finance Receivables Customer North America $ 23 $ 23 $ 3 $ 20 $ 20 $ 1 Europe 52 50 4 56 55 4 Asia Pacific 38 37 5 30 30 8 Mining 69 69 5 167 166 9 Latin America 91 91 22 76 76 12 Caterpillar Power Finance 280 279 39 264 262 41 Total $ 553 $ 549 $ 78 $ 613 $ 609 $ 75 Three Months Ended Three Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded Customer North America $ 10 $ 1 $ 19 $ — Europe 43 — 47 1 Asia Pacific 1 — — — Mining 63 — 29 — Latin America 32 — 37 — Caterpillar Power Finance 165 1 143 1 Total $ 314 $ 2 $ 275 $ 2 Impaired Finance Receivables With An Allowance Recorded Customer North America $ 10 $ — $ 10 $ — Europe 15 — 24 1 Asia Pacific 41 — 26 — Mining 9 — 127 2 Latin America 69 1 27 1 Caterpillar Power Finance 125 2 100 1 Total $ 269 $ 3 $ 314 $ 5 Total Impaired Finance Receivables Customer North America $ 20 $ 1 $ 29 $ — Europe 58 — 71 2 Asia Pacific 42 — 26 — Mining 72 — 156 2 Latin America 101 1 64 1 Caterpillar Power Finance 290 3 243 2 Total $ 583 $ 5 $ 589 $ 7 Nine Months Ended Nine Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans and Finance Leases With No Allowance Recorded Customer North America $ 12 $ 1 $ 22 $ 1 Europe 43 — 47 1 Asia Pacific 2 — 4 — Mining 80 3 82 3 Latin America 32 — 29 — Caterpillar Power Finance 157 3 174 4 Total $ 326 $ 7 $ 358 $ 9 Impaired Loans and Finance Leases With An Allowance Recorded Customer North America $ 7 $ — $ 10 $ — Europe 15 1 21 1 Asia Pacific 33 1 18 1 Mining 47 1 75 4 Latin America 56 2 24 1 Caterpillar Power Finance 128 3 84 2 Total $ 286 $ 8 $ 232 $ 9 Total Impaired Loans and Finance Leases Customer North America $ 19 $ 1 $ 32 $ 1 Europe 58 1 68 2 Asia Pacific 35 1 22 1 Mining 127 4 157 7 Latin America 88 2 53 1 Caterpillar Power Finance 285 6 258 6 Total $ 612 $ 15 $ 590 $ 18 Non-accrual and past due finance receivables For all classes, Cat Financial considers a finance receivable 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 finance receivable 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 finance receivable on non-accrual status). Accrual is resumed, and previously suspended income is recognized, when the finance receivable becomes contractually current and/or collection doubts are removed. As of September 30, 2015 and December 31, 2014 , there were no finance receivables on non-accrual status for the Dealer portfolio segment. The investment in customer finance receivables on non-accrual status was as follows: (Millions of dollars) September 30, 2015 December 31, 2014 Customer North America $ 30 $ 27 Europe 46 28 Asia Pacific 25 54 Mining 133 62 Latin America 260 201 Caterpillar Power Finance 114 96 Total $ 608 $ 468 Aging related to finance receivables was as follows: September 30, 2015 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 46 $ 18 $ 29 $ 93 $ 7,562 $ 7,655 $ 4 Europe 29 11 48 88 2,399 2,487 7 Asia Pacific 45 23 34 102 1,745 1,847 10 Mining 18 1 58 77 1,771 1,848 — Latin America 42 42 204 288 1,919 2,207 — Caterpillar Power Finance 6 — 47 53 3,119 3,172 6 Dealer North America — — — — 2,283 2,283 — Europe — — — — 149 149 — Asia Pacific — — — — 525 525 — Mining — — — — 4 4 — Latin America — — — — 559 559 — Caterpillar Power Finance — — — — 3 3 — Total $ 186 $ 95 $ 420 $ 701 $ 22,038 $ 22,739 $ 27 December 31, 2014 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing 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 Allowance for credit loss activity An analysis of the allowance for credit losses was as follows: (Millions of dollars) September 30, 2015 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 388 $ 10 $ 398 Receivables written off (151 ) — (151 ) Recoveries on receivables previously written off 32 — 32 Provision for credit losses 89 (1 ) 88 Other (22 ) — (22 ) Balance at end of period $ 336 $ 9 $ 345 Individually evaluated for impairment $ 78 $ — $ 78 Collectively evaluated for impairment 258 9 267 Ending Balance $ 336 $ 9 $ 345 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 553 $ — $ 553 Collectively evaluated for impairment 18,663 3,523 22,186 Ending Balance $ 19,216 $ 3,523 $ 22,739 (Millions of dollars) December 31, 2014 Allowance for Credit Losses: Customer Dealer Total 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 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 finance receivables have the highest probability for credit loss. The allowance for credit losses attributable to non-performing finance 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 finance receivables. The recorded investment in performing and non-performing finance receivables was as follows: September 30, 2015 December 31, 2014 (Millions of dollars) Customer Dealer Total Customer Dealer Total Performing North America $ 7,625 $ 2,283 $ 9,908 $ 7,246 $ 2,189 $ 9,435 Europe 2,441 149 2,590 2,647 153 2,800 Asia Pacific 1,822 525 2,347 2,382 566 2,948 Mining 1,715 4 1,719 2,061 — 2,061 Latin America 1,947 559 2,506 2,656 646 3,302 Caterpillar Power Finance 3,058 3 3,061 3,052 — 3,052 Total Performing $ 18,608 $ 3,523 $ 22,131 $ 20,044 $ 3,554 $ 23,598 Non-Performing North America $ 30 $ — $ 30 $ 27 $ — $ 27 Europe 46 — 46 28 — 28 Asia Pacific 25 — 25 54 — 54 Mining 133 — 133 62 — 62 Latin America 260 — 260 201 — 201 Caterpillar Power Finance 114 — 114 96 — 96 Total Non-Performing $ 608 $ — $ 608 $ 468 $ — $ 468 Performing & Non-Performing North America $ 7,655 $ 2,283 $ 9,938 $ 7,273 $ 2,189 $ 9,462 Europe 2,487 149 2,636 2,675 153 2,828 Asia Pacific 1,847 525 2,372 2,436 566 3,002 Mining 1,848 4 1,852 2,123 — 2,123 Latin America 2,207 559 2,766 2,857 646 3,503 Caterpillar Power Finance 3,172 3 3,175 3,148 — 3,148 Total $ 19,216 $ 3,523 $ 22,739 $ 20,512 $ 3,554 $ 24,066 Troubled Debt Restructurings A restructuring of a finance 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 finance 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 remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR as of September 30, 2015 and December 31, 2014. There were no finance receivables modified as TDRs during the three and nine months ended September 30, 2015 or 2014 for the Dealer portfolio segment. Finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2015 and 2014 , were as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Millions of dollars) Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Customer North America 6 $ — $ — 20 $ 9 $ 3 Europe 4 — — — — — Asia Pacific 1 1 1 — — — Mining 2 15 14 45 122 124 Latin America 10 1 2 45 3 3 Caterpillar Power Finance 8 93 79 7 44 46 Total 1 31 $ 110 $ 96 117 $ 178 $ 176 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Customer North America 10 $ 1 $ 1 24 $ 11 $ 5 Europe 23 2 2 8 7 7 Asia Pacific 19 1 1 — — — Mining 2 15 14 47 165 157 Latin America 10 1 2 47 32 31 Caterpillar Power Finance 12 197 180 13 80 81 Total 1 76 $ 217 $ 200 139 $ 295 $ 281 1 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 three and nine months ended September 30, 2015 and 2014 , which had been modified within twelve months prior to the default date, were as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Millions of dollars) Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 5 $ — 3 $ — Europe — — 5 1 Total 5 $ — 8 $ 1 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 10 $ 1 10 $ 1 Europe — — 12 2 Latin America 1 — — — Total 11 $ 1 22 $ 3 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
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 valuations in which one or more significant inputs are unobservable, including 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 8 for additional information). Fair values for our U.S. treasury bonds and large capitalization value and smaller company growth equity securities are based upon valuations for identical instruments in active markets. The fair value of our investment in a real estate investment trust (REIT) is based on the net asset value (NAV) of the investment. 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. Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of September 30, 2015 and December 31, 2014 are summarized below: September 30, 2015 (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 $ 13 $ — $ — $ 13 Other U.S. and non-U.S. government bonds — 83 — 83 Corporate bonds Corporate bonds — 713 — 713 Asset-backed securities — 97 — 97 Mortgage-backed debt securities U.S. governmental agency — 274 — 274 Residential — 13 — 13 Commercial — 62 — 62 Equity securities Large capitalization value 250 — — 250 REIT — — 8 8 Smaller company growth 50 — — 50 Total available-for-sale securities 313 1,242 8 1,563 Derivative financial instruments, net — 45 — 45 Total Assets $ 313 $ 1,287 $ 8 $ 1,608 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 Total Liabilities $ — $ 86 $ — $ 86 The fair value of our REIT investment is measured based on NAV, which is considered a Level 3 input. A roll-forward of our REIT investment for the nine months ended September 30, 2015 is as follows: (Millions of dollars) REIT Balance at December 31, 2014 $ — Purchases of securities 8 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) — Balance at September 30, 2015 $ 8 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 $94 million and $248 million as of September 30, 2015 and December 31, 2014 , respectively. B. Fair values of financial instruments In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair value measurements section above, we used the following methods and assumptions to estimate the fair value of our financial instruments: Cash and short-term investments Carrying amount approximated fair value. Restricted cash and short-term investments Carrying amount approximated fair value. Restricted cash and short-term investments are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Finance receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Wholesale inventory receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Short-term borrowings Carrying amount approximated fair value. Long-term debt Fair value for fixed and floating rate debt was estimated based on quoted market prices. Guarantees The fair value of guarantees is based upon our estimate of the premium a market participant would require to issue the same guarantee in a stand-alone arms-length transaction with an unrelated party. If quoted or observable market prices are not available, fair value is based upon internally developed models that utilize current market-based assumptions. Please refer to the table below for the fair values of our financial instruments. Fair Value of Financial Instruments September 30, 2015 December 31, 2014 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 6,046 $ 6,046 $ 7,341 $ 7,341 1 Restricted cash and short-term investments 44 44 62 62 1 Available-for-sale securities 1,563 1,563 1,554 1,554 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 16,153 15,995 16,426 16,159 3 Note 16 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,885 1,816 1,774 1,700 3 Note 16 Interest rate swaps – net 62 62 71 71 2 Note 4 Liabilities Short-term borrowings 6,080 6,080 4,708 4,708 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,513 10,838 10,003 11,973 2 Financial Products 21,950 22,311 24,574 25,103 2 Foreign currency contracts – net 5 5 143 143 2 Note 4 Commodity contracts – net 12 12 14 14 2 Note 4 Guarantees 13 13 12 12 3 Note 10 1 Total excluded items have a net carrying value at September 30, 2015 and December 31, 2014 of $6,670 million and $7,638 million , respectively. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring Costs | Restructuring costs Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, eligible separation costs are recognized at the time of employee acceptance unless the acceptance requires explicit approval by the Company. For involuntary programs, eligible costs are recognized when management has approved the program, the affected employees have been properly notified and the costs are estimable. For the three and nine months ended September 30, 2015 , we recognized $89 million and $214 million , respectively, of restructuring costs in Other operating (income) expenses in the Consolidated Statement of Results of Operations, which included $60 million of employee separation costs and $29 million of long-lived asset impairments and other restructuring costs for the three months ended September 30, 2015 and $180 million of employee separation costs and $34 million of long-lived asset impairments and other restructuring costs for the nine months ended September 30, 2015 . The restructuring costs in 2015 were primarily related to several restructuring programs across the company. For the three and nine months ended September 30, 2014 , we recognized $81 million and $344 million , respectively, of restructuring costs, which included $46 million of employee separation costs and $35 million of long-lived asset impairments and other restructuring costs for the three months ended September 30, 2014 and $295 million of employee separation costs and $49 million of long-lived asset impairments and other restructuring costs for the nine months ended September 30, 2014. For the first nine months of 2014 , the restructuring costs were primarily related to a reduction in workforce at our Gosselies, Belgium, facility. Restructuring costs for the year ended December 31, 2014 were $441 million which included $382 million of employee separation costs, $33 million of long-lived asset impairments and $26 million of other restructuring costs. The restructuring costs in 2014 were primarily related to a reduction in workforce at our Gosselies, Belgium, facility. Restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. See Note 15 for more information. The following table summarizes the 2014 and 2015 employee separation activity: (Millions of dollars) Total 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 Increase in liability (separation charges) 180 Reduction in liability (payments and other adjustments) (197 ) Liability balance at September 30, 2015 $ 165 The remaining liability balance as of September 30, 2015 represents costs for employees who have either 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 and 2016. 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. In 2014, we recognized $273 million of these separation-related charges. For the nine months ended September 30, 2015, we recognized $24 million , of employee separation costs relating to this restructuring plan, none of which were incurred in the three months ended September 30, 2015. We do not expect any further costs associated with this program. The employee separation liability balance as of September 30, 2015 includes $49 million related to this restructuring plan, the majority of which we expect will be paid in 2015. On September 24, 2015, we announced significant restructuring and cost reduction actions to lower our operating costs in response to current economic and business conditions. As part of that announcement, we offered a voluntary retirement enhancement program to qualifying U.S. employees and more than 2,000 participants are in the program. After employee acceptance, this program required Company approval, which occurred in the fourth quarter of 2015. We expect to incur approximately $400 million in restructuring costs in the fourth quarter of 2015 related to this program. We have also offered several voluntary separation programs outside the United States and expect further reductions in 2015 from involuntary employee separation programs throughout the company. For the full year, we expect restructuring costs will be approximately $800 million , which includes costs for ongoing programs as well as the recently announced employee separation programs. Additional restructuring actions are being contemplated and are expected to occur through 2018. |
Derivative Financial Instrume28
Derivative Financial Instruments and Risk Management (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Risk Management Policy | Foreign Currency Exchange Rate Risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our Machinery, 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. As of September 30, 2015 , the maximum term of these outstanding contracts was approximately 15 months . We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, Norwegian krona, 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. As of September 30, 2015 , $19 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings (Other income (expense) in the Consolidated Statement of Results of Operations) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Substantially all such foreign currency forward, option and cross currency contracts are undesignated. Interest Rate Risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate derivatives to manage our exposure to interest rate changes. 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 September 30, 2015 , $4 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in the Consolidated Statement of Results of Operations) 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 September 30, 2015 , $1 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery, 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. 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. |
Nature of Operations and Basi29
Nature of Operations and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Schedule of Maximum Exposure to Loss from Variable Interest Entities [Table Text Block] | Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: (Millions of dollars) September 30, 2015 December 31, 2014 Receivables - trade and other $ 48 $ 36 Receivables - finance 492 216 Long-term receivables - finance 63 285 Investments in unconsolidated affiliated companies 28 83 Guarantees 98 129 Total $ 729 $ 749 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of type and fair value of the stock-based compensation awards granted during the period | The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine month periods ended September 30, 2015 and 2014 , respectively: 2015 2014 Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Stock options 7,939,497 $ 23.61 $ 83.34 4,448,218 $ 29.52 $ 96.31 RSUs 1,822,729 $ 77.54 $ 83.01 1,429,512 $ 89.18 $ 96.31 |
Schedule providing assumptions used in determining the fair value of stock-based awards | The following table provides the assumptions used in determining the fair value of the stock-based awards for the nine month periods ended September 30, 2015 and 2014 , respectively: Grant Year 2015 2014 Weighted-average dividend yield 2.27% 2.15% Weighted-average volatility 28.4% 28.2% Range of volatilities 19.9-35.9% 18.4-36.2% Range of risk-free interest rates 0.22-2.08% 0.12-2.60% Weighted-average expected lives 8 years 8 years |
Derivative Financial Instrume31
Derivative Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position | The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position are as follows: (Millions of dollars) Consolidated Statement of Financial Asset (Liability) Fair Value Position Location September 30, 2015 December 31, 2014 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 16 $ 25 Machinery, Energy & Transportation Accrued expenses (47 ) (134 ) Machinery, Energy & Transportation Other liabilities (2 ) — Interest rate contracts Financial Products Receivables – trade and other 1 6 Financial Products Long-term receivables – trade and other 65 73 Financial Products Accrued expenses (4 ) (8 ) $ 29 $ (38 ) Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 6 $ 2 Machinery, Energy & Transportation Accrued expenses (11 ) (43 ) Financial Products Receivables – trade and other 3 5 Financial Products Long-term receivables – trade and other 35 17 Financial Products Accrued expenses (5 ) (15 ) Commodity contracts Machinery, Energy & Transportation Accrued expenses (12 ) (14 ) $ 16 $ (48 ) |
Total notional amounts of derivative instruments | The total notional amounts of the derivative instruments are as follows: (Millions of dollars) September 30, 2015 December 31, 2014 Machinery, Energy & Transportation $ 2,198 $ 3,128 Financial Products $ 3,785 $ 5,249 |
Effect of derivatives designated as hedging instruments on Consolidated Statement of Results of Operations | The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: Fair Value Hedges Three Months Ended Three Months Ended (Millions of dollars) Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ 3 $ (3 ) $ (19 ) $ 1 $ 3 $ (3 ) $ (19 ) $ 1 Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (11 ) $ 10 $ (38 ) $ 24 $ (11 ) $ 10 $ (38 ) $ 24 Cash Flow Hedges Three Months Ended September 30, 2015 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (18 ) Other income (expense) $ (29 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products (1 ) Interest expense of Financial Products (1 ) — $ (19 ) $ (31 ) $ — Three Months Ended September 30, 2014 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (45 ) Other income (expense) $ 4 $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products (2 ) Interest expense of Financial Products (2 ) — $ (47 ) $ 1 $ — Nine Months Ended September 30, 2015 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (25 ) Other income (expense) $ (101 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (4 ) — Financial Products 1 Interest expense of Financial Products (4 ) — $ (24 ) $ (109 ) $ — Nine Months Ended September 30, 2014 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (20 ) Other income (expense) $ 24 $ — Interest rate contracts Machinery, Energy & Transportation (63 ) Interest expense excluding Financial Products (3 ) — Financial Products (7 ) Interest expense of Financial Products (4 ) — $ (90 ) $ 17 $ — |
Effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations | The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: (Millions of dollars) Classification of Gains (Losses) Three Months Ended Three Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 7 $ (44 ) Financial Products Other income (expense) 6 (19 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (8 ) (6 ) $ 5 $ (69 ) Classification of Gains (Losses) Nine Months Ended Nine Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ (22 ) $ (35 ) Financial Products Other income (expense) (18 ) (36 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (15 ) (3 ) $ (55 ) $ (74 ) |
Effect of net settlement provisions of the master netting agreements on derivative assets | The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event is as follows: September 30, 2015 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 $ 22 $ — $ 22 $ (20 ) $ — $ 2 Financial Products 104 — 104 (7 ) — 97 Total $ 126 $ — $ 126 $ (27 ) $ — $ 99 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, 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 ) September 30, 2015 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 $ (72 ) $ — $ (72 ) $ 20 $ — $ (52 ) Financial Products (9 ) — (9 ) 7 — (2 ) Total $ (81 ) $ — $ (81 ) $ 27 $ — $ (54 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are valued at the lower of cost or market, principally using the last-in, first-out (LIFO) method, and are comprised of the following: (Millions of dollars) September 30, December 31, Raw materials $ 2,862 $ 2,986 Work-in-process 1,987 2,455 Finished goods 6,042 6,504 Supplies 259 260 Total inventories $ 11,150 $ 12,205 |
Investments in Unconsolidated33
Investments in Unconsolidated Affiliated Companies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Results of Operations and Financial Position 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: (Millions of dollars) Three Months Ended Nine Months Ended 2015 2014 2015 2014 Sales $ 205 $ 453 $ 558 $ 1,253 Cost of sales 166 357 437 974 Gross profit $ 39 $ 96 $ 121 $ 279 Profit (loss) $ (10 ) $ (7 ) $ (2 ) $ (17 ) Financial Position of unconsolidated affiliated companies: ( Millions of dollars ) September 30, December 31, Assets: Current assets $ 506 $ 716 Property, plant and equipment – net 187 653 Other assets 198 557 891 1,926 Liabilities: Current liabilities 298 518 Long-term debt due after one year 206 867 Other liabilities 13 215 517 1,600 Equity $ 374 $ 326 |
Caterpillar's investments in unconsolidated affiliated companies | Caterpillar’s investments in unconsolidated affiliated companies: (Millions of dollars) September 30, December 31, Investments in equity method companies $ 188 $ 248 Plus: Investments in cost method companies 43 9 Total investments in unconsolidated affiliated companies $ 231 $ 257 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets are comprised of the following: September 30, 2015 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,427 $ (773 ) $ 1,654 Intellectual property 11 1,720 (645 ) 1,075 Other 13 187 (75 ) 112 Total finite-lived intangible assets 14 $ 4,334 $ (1,493 ) $ 2,841 December 31, 2014 Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net 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 |
Expected amortization expense related to intangible assets | Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Three Months of 2015 2016 2017 2018 2019 Thereafter $88 $327 $325 $319 $317 $1,465 |
Goodwill acquired | The changes in carrying amount of goodwill by reportable segment for the nine months ended September 30, 2015 were as follows: (Millions of dollars) December 31, Acquisitions Other Adjustments 1 September 30, Construction Industries Goodwill $ 275 $ — $ (10 ) $ 265 Resource Industries Goodwill 4,287 — (119 ) 4,168 Impairments (580 ) — — (580 ) Net goodwill 3,707 — (119 ) 3,588 Energy & Transportation Goodwill 2,542 21 (38 ) 2,525 All Other 2 Goodwill 192 — (2 ) 190 Impairments (22 ) — — (22 ) Net goodwill 170 — (2 ) 168 Consolidated total Goodwill 7,296 21 (169 ) 7,148 Impairments (602 ) — — (602 ) Net goodwill $ 6,694 $ 21 $ (169 ) $ 6,546 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segments (See Note 15). |
Available-For-Sale Securities (
Available-For-Sale Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Cost basis and fair value of available-for-sale securities | The cost basis and fair value of available-for-sale securities were as follows: September 30, 2015 December 31, 2014 (Millions of dollars) Cost Basis Unrealized Pretax Net Gains (Losses) Fair Value Cost Basis Unrealized Pretax Net Gains (Losses) Fair Value Government debt U.S. treasury bonds $ 13 $ — $ 13 $ 10 $ — $ 10 Other U.S. and non-U.S. government bonds 82 1 83 94 — 94 Corporate bonds Corporate bonds 700 13 713 677 16 693 Asset-backed securities 96 1 97 103 2 105 Mortgage-backed debt securities U.S. governmental agency 270 4 274 292 2 294 Residential 13 — 13 15 — 15 Commercial 59 3 62 63 4 67 Equity securities Large capitalization value 212 38 250 150 83 233 Real estate investment trust (REIT) 8 — 8 — — — Smaller company growth 31 19 50 17 26 43 Total $ 1,484 $ 79 $ 1,563 $ 1,421 $ 133 $ 1,554 |
Investments in an unrealized loss position that are not other-than-temporarily impaired: | Investments in an unrealized loss position that are not other-than-temporarily impaired: September 30, 2015 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds Corporate bonds $ 155 $ 2 $ 23 $ — $ 178 $ 2 Mortgage-backed debt securities U.S. governmental agency 15 — 60 1 75 1 Equity securities Large capitalization value 84 8 1 — 85 8 Small company growth 13 2 — — 13 2 Total $ 267 $ 12 $ 84 $ 1 $ 351 $ 13 December 31, 2014 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized 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. |
Cost basis and fair value of the available-for-sale debt securities by contractual maturity | The cost basis and fair value of the available-for-sale debt securities at September 30, 2015 , by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. September 30, 2015 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 102 $ 102 Due after one year through five years 739 752 Due after five years through ten years 21 22 Due after ten years 29 30 U.S. governmental agency mortgage-backed securities 270 274 Residential mortgage-backed securities 13 13 Commercial mortgage-backed securities 59 62 Total debt securities – available-for-sale $ 1,233 $ 1,255 |
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities | Sales of Securities: Three Months Ended Nine Months Ended (Millions of dollars) 2015 2014 2015 2014 Proceeds from the sale of available-for-sale securities $ 110 $ 125 $ 238 $ 347 Gross gains from the sale of available-for-sale securities $ 32 $ 22 $ 38 $ 36 Gross losses from the sale of available-for-sale securities $ 1 $ 1 $ 2 $ 1 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic cost and weighted-average assumptions used to determine net cost | U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) September 30, September 30, September 30, 2015 2014 2015 2014 2015 2014 For the three months ended: Components of net periodic benefit cost: Service cost $ 45 $ 39 $ 28 $ 28 $ 26 $ 19 Interest cost 151 162 37 47 46 54 Expected return on plan assets 1 (220 ) (221 ) (66 ) (66 ) (13 ) (13 ) Amortization of: Prior service cost (credit) 2 1 5 — — (14 ) (14 ) Net actuarial loss (gain) 3 126 98 25 22 13 10 Net periodic benefit cost 103 83 24 31 58 56 Curtailments, settlements and termination benefits 4 — — 7 5 — — Total cost included in operating profit $ 103 $ 83 $ 31 $ 36 $ 58 $ 56 For the nine months ended: Components of net periodic benefit cost: Service cost $ 136 $ 118 $ 85 $ 83 $ 76 $ 62 Interest cost 454 486 115 139 138 160 Expected return on plan assets 1 (659 ) (664 ) (199 ) (195 ) (39 ) (39 ) Amortization of: Prior service cost (credit) 2 1 13 — — (41 ) (41 ) Net actuarial loss (gain) 3 380 294 75 65 39 31 Net periodic benefit cost 312 247 76 92 173 173 Curtailments, settlements and termination benefits 4 — — 10 12 — — Total cost included in operating profit $ 312 $ 247 $ 86 $ 104 $ 173 $ 173 Weighted-average assumptions used to determine net cost: Discount rate 3.8 % 4.6 % 3.3 % 4.1 % 3.9 % 4.6 % Expected rate of return on plan assets 7.4 % 7.8 % 6.8 % 6.9 % 7.8 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 4.2 % 4.0 % 4.0 % 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 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. 3 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. 4 Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations. |
Components of net periodic cost and weighted-average assumptions used to determine net cost | U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) September 30, September 30, September 30, 2015 2014 2015 2014 2015 2014 For the three months ended: Components of net periodic benefit cost: Service cost $ 45 $ 39 $ 28 $ 28 $ 26 $ 19 Interest cost 151 162 37 47 46 54 Expected return on plan assets 1 (220 ) (221 ) (66 ) (66 ) (13 ) (13 ) Amortization of: Prior service cost (credit) 2 1 5 — — (14 ) (14 ) Net actuarial loss (gain) 3 126 98 25 22 13 10 Net periodic benefit cost 103 83 24 31 58 56 Curtailments, settlements and termination benefits 4 — — 7 5 — — Total cost included in operating profit $ 103 $ 83 $ 31 $ 36 $ 58 $ 56 For the nine months ended: Components of net periodic benefit cost: Service cost $ 136 $ 118 $ 85 $ 83 $ 76 $ 62 Interest cost 454 486 115 139 138 160 Expected return on plan assets 1 (659 ) (664 ) (199 ) (195 ) (39 ) (39 ) Amortization of: Prior service cost (credit) 2 1 13 — — (41 ) (41 ) Net actuarial loss (gain) 3 380 294 75 65 39 31 Net periodic benefit cost 312 247 76 92 173 173 Curtailments, settlements and termination benefits 4 — — 10 12 — — Total cost included in operating profit $ 312 $ 247 $ 86 $ 104 $ 173 $ 173 Weighted-average assumptions used to determine net cost: Discount rate 3.8 % 4.6 % 3.3 % 4.1 % 3.9 % 4.6 % Expected rate of return on plan assets 7.4 % 7.8 % 6.8 % 6.9 % 7.8 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 4.2 % 4.0 % 4.0 % 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 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. 3 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. 4 Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations. |
Company costs related to U.S. and non-U.S. defined contribution plans | Total company costs related to our defined contribution plans were as follows: Three Months Ended Nine Months Ended (Millions of dollars) 2015 2014 2015 2014 U.S. Plans $ 31 $ 62 $ 188 $ 232 Non-U.S. Plans 19 21 58 62 $ 50 $ 83 $ 246 $ 294 The decrease in the U.S. defined contribution benefit costs for the three and nine months ended September 30, 2015 is primarily due to fair value adjustments related to our non-qualified deferred compensation plans. |
Guarantees and Product Warran37
Guarantees and Product Warranty (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees | The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees are as follows: (Millions of dollars) September 30, December 31, Caterpillar dealer performance guarantees $ 220 $ 209 Customer loan guarantees 58 49 Supplier consortium performance guarantee 294 321 Third party logistics business lease guarantees 112 129 Other guarantees 23 32 Total guarantees $ 707 $ 740 |
Product warranty | (Millions of dollars) 2015 Warranty liability, January 1 $ 1,426 Reduction in liability (payments) (650 ) Increase in liability (new warranties) 604 Warranty liability, September 30 $ 1,380 (Millions of dollars) 2014 Warranty liability, January 1 $ 1,367 Reduction in liability (payments) (1,071 ) Increase in liability (new warranties) 1,130 1 Warranty liability, December 31 $ 1,426 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. |
Profit Per Share (Tables)
Profit Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computations of profit per share | Computations of profit per share: Three Months Ended Nine Months Ended (Dollars in millions except per share data) 2015 2014 2015 2014 Profit for the period (A) 1 $ 368 $ 1,017 $ 2,189 $ 2,938 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 588.4 611.5 597.9 620.6 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 6.4 11.3 7.4 12.1 Average common shares outstanding for fully diluted computation (C) 2 594.8 622.8 605.3 632.7 Profit per share of common stock: Assuming no dilution (A/B) $ 0.63 $ 1.66 $ 3.66 $ 4.73 Assuming full dilution (A/C) 2 $ 0.62 $ 1.63 $ 3.62 $ 4.64 Shares outstanding as of September 30 (in millions) 582.2 605.4 1 Profit attributable to common stockholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated other comprehensive income (loss), net of tax | Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Stockholders’ Equity, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Three Months Ended September 30, 2015 Balance at June 30, 2015 $ (1,555 ) $ (5,183 ) $ (73 ) $ 82 $ (6,729 ) Other comprehensive income (loss) before reclassifications (234 ) 45 (12 ) (15 ) (216 ) Amounts reclassified from accumulated other comprehensive (income) loss — 100 20 (18 ) 102 Other comprehensive income (loss) (234 ) 145 8 (33 ) (114 ) Balance at September 30, 2015 $ (1,789 ) $ (5,038 ) $ (65 ) $ 49 $ (6,843 ) Three Months Ended September 30, 2014 Balance at June 30, 2014 $ 244 $ (3,981 ) $ (42 ) $ 96 $ (3,683 ) Other comprehensive income (loss) before reclassifications (710 ) 4 (30 ) (5 ) (741 ) Amounts reclassified from accumulated other comprehensive (income) loss — 80 — (13 ) 67 Other comprehensive income (loss) (710 ) 84 (30 ) (18 ) (674 ) Balance at September 30, 2014 $ (466 ) $ (3,897 ) $ (72 ) $ 78 $ (4,357 ) (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Nine Months Ended September 30, 2015 Balance at December 31, 2014 $ (988 ) $ (5,407 ) $ (119 ) $ 83 $ (6,431 ) Other comprehensive income (loss) before reclassifications (801 ) 69 (15 ) (13 ) (760 ) Amounts reclassified from accumulated other comprehensive (income) loss — 300 69 (21 ) 348 Other comprehensive income (loss) (801 ) 369 54 (34 ) (412 ) Balance at September 30, 2015 $ (1,789 ) $ (5,038 ) $ (65 ) $ 49 $ (6,843 ) Nine Months Ended September 30, 2014 Balance at December 31, 2013 $ 176 $ (4,152 ) $ (5 ) $ 83 $ (3,898 ) Other comprehensive income (loss) before reclassifications (642 ) 15 (57 ) 18 (666 ) Amounts reclassified from accumulated other comprehensive (income) loss — 240 (10 ) (23 ) 207 Other comprehensive income (loss) (642 ) 255 (67 ) (5 ) (459 ) Balance at September 30, 2014 $ (466 ) $ (3,897 ) $ (72 ) $ 78 $ (4,357 ) |
Reclassifications out of Accumulated other comprehensive income (loss) | The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations is as follows: Three Months Ended September 30, (Millions of dollars) Classification of income (expense) 2015 2014 Pension and other postretirement benefits: Amortization of actuarial gain (loss) Note 9 1 $ (164 ) $ (130 ) Amortization of prior service credit (cost) Note 9 1 13 9 Reclassifications before tax (151 ) (121 ) Tax (provision) benefit 51 41 Reclassifications net of tax $ (100 ) $ (80 ) Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (29 ) $ 4 Interest rate contracts Interest expense excluding Financial Products (1 ) (1 ) Interest rate contracts Interest expense of Financial Products (1 ) (2 ) Reclassifications before tax (31 ) 1 Tax (provision) benefit 11 (1 ) Reclassifications net of tax $ (20 ) $ — Available-for-sale securities: Realized gain (loss) Other income (expense) $ 27 $ 20 Tax (provision) benefit (9 ) (7 ) Reclassifications net of tax $ 18 $ 13 Total reclassifications from Accumulated other comprehensive income (loss) $ (102 ) $ (67 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. Nine Months Ended September 30, (Millions of dollars) Classification of income (expense) 2015 2014 Pension and other postretirement benefits: Amortization of actuarial gain (loss) Note 9 1 $ (494 ) $ (390 ) Amortization of prior service credit (cost) Note 9 1 40 28 Reclassifications before tax (454 ) (362 ) Tax (provision) benefit 154 122 Reclassifications net of tax $ (300 ) $ (240 ) Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (101 ) $ 24 Interest rate contracts Interest expense excluding Financial Products (4 ) (3 ) Interest rate contracts Interest expense of Financial Products (4 ) (4 ) Reclassifications before tax (109 ) 17 Tax (provision) benefit 40 (7 ) Reclassifications net of tax $ (69 ) $ 10 Available-for-sale securities: Realized gain (loss) Other income (expense) $ 31 $ 34 Tax (provision) benefit (10 ) (11 ) Reclassifications net of tax $ 21 $ 23 Total reclassifications from Accumulated other comprehensive income (loss) $ (348 ) $ (207 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Three Months Ended September 30, (Millions of dollars) 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at September 30 Capital expenditures Construction Industries $ 3,792 $ 34 $ 3,826 $ 118 $ 378 $ 5,712 $ 54 Resource Industries 1,796 93 1,889 158 (68 ) 8,682 66 Energy & Transportation 4,213 417 4,630 161 635 8,670 160 Machinery, Energy & Transportation $ 9,801 $ 544 $ 10,345 $ 437 $ 945 $ 23,064 $ 280 Financial Products Segment 752 — 752 210 207 35,414 359 Total $ 10,553 $ 544 $ 11,097 $ 647 $ 1,152 $ 58,478 $ 639 2014 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 4,471 $ 67 $ 4,538 $ 129 $ 483 $ 6,596 $ 82 Resource Industries 2,172 105 2,277 172 122 9,497 65 Energy & Transportation 5,585 570 6,155 165 1,151 8,470 146 Machinery, Energy & Transportation $ 12,228 $ 742 $ 12,970 $ 466 $ 1,756 $ 24,563 $ 293 Financial Products Segment 851 — 851 229 220 37,011 427 Total $ 13,079 $ 742 $ 13,821 $ 695 $ 1,976 $ 61,574 $ 720 Reportable Segments Nine Months Ended September 30, (Millions of dollars) 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment Capital expenditures Construction Industries $ 12,928 $ 130 $ 13,058 $ 359 $ 1,705 $ 5,712 $ 139 Resource Industries 5,715 268 5,983 482 17 8,682 134 Energy & Transportation 13,519 1,418 14,937 477 2,527 8,670 527 Machinery, Energy & Transportation $ 32,162 $ 1,816 $ 33,978 $ 1,318 $ 4,249 $ 23,064 $ 800 Financial Products Segment 2,332 — 2,332 638 618 35,414 995 Total $ 34,494 $ 1,816 $ 36,310 $ 1,956 $ 4,867 $ 58,478 $ 1,795 2014 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 14,942 $ 198 $ 15,140 $ 394 $ 1,845 $ 6,596 $ 225 Resource Industries 6,536 318 6,854 514 379 9,497 165 Energy & Transportation 15,536 1,706 17,242 483 3,012 8,470 317 Machinery, Energy & Transportation $ 37,014 $ 2,222 $ 39,236 $ 1,391 $ 5,236 $ 24,563 $ 707 Financial Products Segment 2,502 — 2,502 665 704 37,011 1,206 Total $ 39,516 $ 2,222 $ 41,738 $ 2,056 $ 5,940 $ 61,574 $ 1,913 |
Reconciliation of Sales and revenues: | Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended September 30, 2015 Total external sales and revenues from reportable segments $ 9,801 $ 752 $ — $ 10,553 All Other operating segments 506 — — 506 Other (22 ) 20 (95 ) 1 (97 ) Total sales and revenues $ 10,285 $ 772 $ (95 ) $ 10,962 Three Months Ended September 30, 2014 Total external sales and revenues from reportable segments $ 12,228 $ 851 $ — $ 13,079 All Other operating segments 583 — — 583 Other (53 ) 24 (84 ) 1 (113 ) Total sales and revenues $ 12,758 $ 875 $ (84 ) $ 13,549 1 Elimination of Financial Products revenues from Machinery, Energy & Transportation. Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Nine Months Ended September 30, 2015 Total external sales and revenues from reportable segments $ 32,162 $ 2,332 $ — $ 34,494 All Other operating segments 1,729 — — 1,729 Other (62 ) 58 (238 ) 1 (242 ) Total sales and revenues $ 33,829 $ 2,390 $ (238 ) $ 35,981 Nine Months Ended September 30, 2014 Total external sales and revenues from reportable segments $ 37,014 $ 2,502 $ — $ 39,516 All Other operating segments 1,720 — — 1,720 Other (92 ) 55 (259 ) 1 (296 ) Total sales and revenues $ 38,642 $ 2,557 $ (259 ) $ 40,940 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, Energy & Transportation Financial Products Consolidated Total Three Months Ended September 30, 2015 Total profit from reportable segments $ 945 $ 207 $ 1,152 All Other operating segments 196 — 196 Cost centers 58 — 58 Corporate costs (376 ) — (376 ) Timing 38 — 38 Restructuring and related costs (101 ) — (101 ) Methodology differences: Inventory/cost of sales (22 ) — (22 ) Postretirement benefit expense (78 ) — (78 ) Financing costs (128 ) — (128 ) Equity in (profit) loss of unconsolidated affiliated companies 4 — 4 Currency (157 ) — (157 ) Other income/expense methodology differences (51 ) — (51 ) Other methodology differences (16 ) (1 ) (17 ) Total consolidated profit before taxes $ 312 $ 206 $ 518 Three Months Ended September 30, 2014 Total profit from reportable segments $ 1,756 $ 220 $ 1,976 All Other operating segments 228 — 228 Cost centers 31 — 31 Corporate costs (408 ) — (408 ) Timing (125 ) — (125 ) Restructuring costs (81 ) — (81 ) Methodology differences: Inventory/cost of sales 6 — 6 Postretirement benefit expense (84 ) — (84 ) Financing costs (136 ) — (136 ) Equity in (profit) loss of unconsolidated affiliated companies (4 ) — (4 ) Currency 39 — 39 Other income/expense methodology differences (55 ) — (55 ) Other methodology differences (9 ) 3 (6 ) Total consolidated profit before taxes $ 1,158 $ 223 $ 1,381 Reconciliation of Consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Nine Months Ended September 30, 2015 Total profit from reportable segments $ 4,249 $ 618 $ 4,867 All Other operating segments 638 — 638 Cost centers 139 — 139 Corporate costs (1,307 ) — (1,307 ) Timing 15 — 15 Restructuring and related costs (226 ) — (226 ) Methodology differences: Inventory/cost of sales (30 ) — (30 ) Postretirement benefit expense (301 ) — (301 ) Financing costs (394 ) — (394 ) Equity in (profit) loss of unconsolidated affiliated companies — — — Currency (257 ) — (257 ) Other income/expense methodology differences (48 ) — (48 ) Other methodology differences (33 ) 2 (31 ) Total consolidated profit before taxes $ 2,445 $ 620 $ 3,065 Nine Months Ended September 30, 2014 Total profit from reportable segments $ 5,236 $ 704 $ 5,940 All Other operating segments 686 — 686 Cost centers 105 — 105 Corporate costs (1,201 ) — (1,201 ) Timing (205 ) — (205 ) Restructuring costs (344 ) — (344 ) Methodology differences: Inventory/cost of sales 29 — 29 Postretirement benefit expense (304 ) — (304 ) Financing costs (373 ) — (373 ) Equity in (profit) loss of unconsolidated affiliated companies (6 ) — (6 ) Currency 16 — 16 Other income/expense methodology differences (186 ) — (186 ) Other methodology differences (13 ) (1 ) (14 ) Total consolidated profit before taxes $ 3,440 $ 703 $ 4,143 |
Reconciliation of Restructuring costs: | As noted above, restructuring and related 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 and related costs: (Millions of dollars) Segment profit Restructuring and related costs Segment profit with restructuring and related costs Three Months Ended September 30, 2015 Construction Industries $ 378 $ (22 ) $ 356 Resource Industries (68 ) (40 ) (108 ) Energy & Transportation 635 (10 ) 625 Financial Products Segment 207 — 207 All Other operating segments 196 (16 ) 180 Total $ 1,348 $ (88 ) $ 1,260 Three Months Ended September 30, 2014 Construction Industries $ 483 $ (30 ) $ 453 Resource Industries 122 (31 ) 91 Energy & Transportation 1,151 (5 ) 1,146 Financial Products Segment 220 — 220 All Other operating segments 228 (12 ) 216 Total $ 2,204 $ (78 ) $ 2,126 Reconciliation of Restructuring and related costs: (Millions of dollars) Segment profit Restructuring and related costs Segment profit with restructuring and related costs Nine Months Ended September 30, 2015 Construction Industries $ 1,705 $ (61 ) $ 1,644 Resource Industries 17 (83 ) (66 ) Energy & Transportation 2,527 (24 ) 2,503 Financial Products Segment 618 — 618 All Other operating segments 638 (35 ) 603 Total $ 5,505 $ (203 ) $ 5,302 Nine Months Ended September 30, 2014 Construction Industries $ 1,845 $ (257 ) $ 1,588 Resource Industries 379 (52 ) 327 Energy & Transportation 3,012 (11 ) 3,001 Financial Products Segment 704 — 704 All Other operating segments 686 (18 ) 668 Total $ 6,626 $ (338 ) $ 6,288 |
Reconciliation of Assets: | Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total September 30, 2015 Total assets from reportable segments $ 23,064 $ 35,414 $ — $ 58,478 All Other operating segments 2,675 — — 2,675 Items not included in segment assets: Cash and short-term investments 4,808 — — 4,808 Intercompany receivables 1,172 — (1,172 ) — Investment in Financial Products 4,160 — (4,160 ) — Deferred income taxes 3,552 — (700 ) 2,852 Goodwill and intangible assets 3,583 — — 3,583 Property, plant and equipment – net and other assets 1,221 — — 1,221 Operating lease methodology difference (211 ) — — (211 ) Liabilities included in segment assets 8,608 — — 8,608 Inventory methodology differences (2,629 ) — — (2,629 ) Other (357 ) — (59 ) (416 ) Total assets $ 49,646 $ 35,414 $ (6,091 ) $ 78,969 December 31, 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 |
Reconciliation of Depreciation and amortization: | Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended September 30, 2015 Total depreciation and amortization from reportable segments $ 437 $ 210 $ 647 Items not included in segment depreciation and amortization: All Other operating segments 68 — 68 Cost centers 39 — 39 Other (6 ) 10 4 Total depreciation and amortization $ 538 $ 220 $ 758 Three Months Ended September 30, 2014 Total depreciation and amortization from reportable segments $ 466 $ 229 $ 695 Items not included in segment depreciation and amortization: All Other operating segments 70 — 70 Cost centers 37 — 37 Other (10 ) 6 (4 ) Total depreciation and amortization $ 563 $ 235 $ 798 Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Nine Months Ended September 30, 2015 Total depreciation and amortization from reportable segments $ 1,318 $ 638 $ 1,956 Items not included in segment depreciation and amortization: All Other operating segments 202 — 202 Cost centers 115 — 115 Other (27 ) 26 (1 ) Total depreciation and amortization $ 1,608 $ 664 $ 2,272 Nine Months Ended September 30, 2014 Total depreciation and amortization from reportable segments $ 1,391 $ 665 $ 2,056 Items not included in segment depreciation and amortization: All Other operating segments 209 — 209 Cost centers 111 — 111 Other (26 ) 18 (8 ) Total depreciation and amortization $ 1,685 $ 683 $ 2,368 |
Reconciliation of Capital expenditures: | Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended September 30, 2015 Total capital expenditures from reportable segments $ 280 $ 359 $ — $ 639 Items not included in segment capital expenditures: All Other operating segments 68 — — 68 Cost centers 52 — — 52 Timing (35 ) — — (35 ) Other (29 ) 35 (4 ) 2 Total capital expenditures $ 336 $ 394 $ (4 ) $ 726 Three Months Ended September 30, 2014 Total capital expenditures from reportable segments $ 293 $ 427 $ — $ 720 Items not included in segment capital expenditures: All Other operating segments 93 — — 93 Cost centers 17 — — 17 Timing 10 — — 10 Other (18 ) 37 (12 ) 7 Total capital expenditures $ 395 $ 464 $ (12 ) $ 847 Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Nine Months Ended September 30, 2015 Total capital expenditures from reportable segments $ 800 $ 995 $ — $ 1,795 Items not included in segment capital expenditures: All Other operating segments 159 — — 159 Cost centers 98 — — 98 Timing 199 — — 199 Other (161 ) 130 (23 ) (54 ) Total capital expenditures $ 1,095 $ 1,125 $ (23 ) $ 2,197 Nine Months Ended September 30, 2014 Total capital expenditures from reportable segments $ 707 $ 1,206 $ — $ 1,913 Items not included in segment capital expenditures: All Other operating segments 187 — — 187 Cost centers 66 — — 66 Timing 239 — — 239 Other (66 ) 89 (46 ) (23 ) Total capital expenditures $ 1,133 $ 1,295 $ (46 ) $ 2,382 |
Cat Financial Financing Activ41
Cat Financial Financing Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Impaired finance receivables | Individually impaired finance receivables for the Customer portfolio segment were as follows: September 30, 2015 December 31, 2014 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Impaired Finance Receivables With No Allowance Recorded Customer North America $ 10 $ 10 $ — $ 14 $ 14 $ — Europe 43 42 — 44 43 — Asia Pacific 2 1 — 1 1 — Mining 56 56 — 29 29 — Latin America 31 31 — 34 34 — Caterpillar Power Finance 191 191 — 129 128 — Total $ 333 $ 331 $ — $ 251 $ 249 $ — Impaired Finance Receivables With An Allowance Recorded Customer North America $ 13 $ 13 $ 3 $ 6 $ 6 $ 1 Europe 9 8 4 12 12 4 Asia Pacific 36 36 5 29 29 8 Mining 13 13 5 138 137 9 Latin America 60 60 22 42 42 12 Caterpillar Power Finance 89 88 39 135 134 41 Total $ 220 $ 218 $ 78 $ 362 $ 360 $ 75 Total Impaired Finance Receivables Customer North America $ 23 $ 23 $ 3 $ 20 $ 20 $ 1 Europe 52 50 4 56 55 4 Asia Pacific 38 37 5 30 30 8 Mining 69 69 5 167 166 9 Latin America 91 91 22 76 76 12 Caterpillar Power Finance 280 279 39 264 262 41 Total $ 553 $ 549 $ 78 $ 613 $ 609 $ 75 Three Months Ended Three Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded Customer North America $ 10 $ 1 $ 19 $ — Europe 43 — 47 1 Asia Pacific 1 — — — Mining 63 — 29 — Latin America 32 — 37 — Caterpillar Power Finance 165 1 143 1 Total $ 314 $ 2 $ 275 $ 2 Impaired Finance Receivables With An Allowance Recorded Customer North America $ 10 $ — $ 10 $ — Europe 15 — 24 1 Asia Pacific 41 — 26 — Mining 9 — 127 2 Latin America 69 1 27 1 Caterpillar Power Finance 125 2 100 1 Total $ 269 $ 3 $ 314 $ 5 Total Impaired Finance Receivables Customer North America $ 20 $ 1 $ 29 $ — Europe 58 — 71 2 Asia Pacific 42 — 26 — Mining 72 — 156 2 Latin America 101 1 64 1 Caterpillar Power Finance 290 3 243 2 Total $ 583 $ 5 $ 589 $ 7 Nine Months Ended Nine Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans and Finance Leases With No Allowance Recorded Customer North America $ 12 $ 1 $ 22 $ 1 Europe 43 — 47 1 Asia Pacific 2 — 4 — Mining 80 3 82 3 Latin America 32 — 29 — Caterpillar Power Finance 157 3 174 4 Total $ 326 $ 7 $ 358 $ 9 Impaired Loans and Finance Leases With An Allowance Recorded Customer North America $ 7 $ — $ 10 $ — Europe 15 1 21 1 Asia Pacific 33 1 18 1 Mining 47 1 75 4 Latin America 56 2 24 1 Caterpillar Power Finance 128 3 84 2 Total $ 286 $ 8 $ 232 $ 9 Total Impaired Loans and Finance Leases Customer North America $ 19 $ 1 $ 32 $ 1 Europe 58 1 68 2 Asia Pacific 35 1 22 1 Mining 127 4 157 7 Latin America 88 2 53 1 Caterpillar Power Finance 285 6 258 6 Total $ 612 $ 15 $ 590 $ 18 |
Investment in finance receivables on non-accrual status | The investment in customer finance receivables on non-accrual status was as follows: (Millions of dollars) September 30, 2015 December 31, 2014 Customer North America $ 30 $ 27 Europe 46 28 Asia Pacific 25 54 Mining 133 62 Latin America 260 201 Caterpillar Power Finance 114 96 Total $ 608 $ 468 |
Aging related to finance receivables | Aging related to finance receivables was as follows: September 30, 2015 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 46 $ 18 $ 29 $ 93 $ 7,562 $ 7,655 $ 4 Europe 29 11 48 88 2,399 2,487 7 Asia Pacific 45 23 34 102 1,745 1,847 10 Mining 18 1 58 77 1,771 1,848 — Latin America 42 42 204 288 1,919 2,207 — Caterpillar Power Finance 6 — 47 53 3,119 3,172 6 Dealer North America — — — — 2,283 2,283 — Europe — — — — 149 149 — Asia Pacific — — — — 525 525 — Mining — — — — 4 4 — Latin America — — — — 559 559 — Caterpillar Power Finance — — — — 3 3 — Total $ 186 $ 95 $ 420 $ 701 $ 22,038 $ 22,739 $ 27 December 31, 2014 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing 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 |
Allowance for credit losses and recorded investment in finance receivables | An analysis of the allowance for credit losses was as follows: (Millions of dollars) September 30, 2015 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 388 $ 10 $ 398 Receivables written off (151 ) — (151 ) Recoveries on receivables previously written off 32 — 32 Provision for credit losses 89 (1 ) 88 Other (22 ) — (22 ) Balance at end of period $ 336 $ 9 $ 345 Individually evaluated for impairment $ 78 $ — $ 78 Collectively evaluated for impairment 258 9 267 Ending Balance $ 336 $ 9 $ 345 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 553 $ — $ 553 Collectively evaluated for impairment 18,663 3,523 22,186 Ending Balance $ 19,216 $ 3,523 $ 22,739 (Millions of dollars) December 31, 2014 Allowance for Credit Losses: Customer Dealer Total 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 |
Recorded investment of performing and non-performing finance receivables | The recorded investment in performing and non-performing finance receivables was as follows: September 30, 2015 December 31, 2014 (Millions of dollars) Customer Dealer Total Customer Dealer Total Performing North America $ 7,625 $ 2,283 $ 9,908 $ 7,246 $ 2,189 $ 9,435 Europe 2,441 149 2,590 2,647 153 2,800 Asia Pacific 1,822 525 2,347 2,382 566 2,948 Mining 1,715 4 1,719 2,061 — 2,061 Latin America 1,947 559 2,506 2,656 646 3,302 Caterpillar Power Finance 3,058 3 3,061 3,052 — 3,052 Total Performing $ 18,608 $ 3,523 $ 22,131 $ 20,044 $ 3,554 $ 23,598 Non-Performing North America $ 30 $ — $ 30 $ 27 $ — $ 27 Europe 46 — 46 28 — 28 Asia Pacific 25 — 25 54 — 54 Mining 133 — 133 62 — 62 Latin America 260 — 260 201 — 201 Caterpillar Power Finance 114 — 114 96 — 96 Total Non-Performing $ 608 $ — $ 608 $ 468 $ — $ 468 Performing & Non-Performing North America $ 7,655 $ 2,283 $ 9,938 $ 7,273 $ 2,189 $ 9,462 Europe 2,487 149 2,636 2,675 153 2,828 Asia Pacific 1,847 525 2,372 2,436 566 3,002 Mining 1,848 4 1,852 2,123 — 2,123 Latin America 2,207 559 2,766 2,857 646 3,503 Caterpillar Power Finance 3,172 3 3,175 3,148 — 3,148 Total $ 19,216 $ 3,523 $ 22,739 $ 20,512 $ 3,554 $ 24,066 |
Finance receivables modified as TDRs | TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2015 and 2014 , which had been modified within twelve months prior to the default date, were as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Millions of dollars) Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 5 $ — 3 $ — Europe — — 5 1 Total 5 $ — 8 $ 1 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 10 $ 1 10 $ 1 Europe — — 12 2 Latin America 1 — — — Total 11 $ 1 22 $ 3 Finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2015 and 2014 , were as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Millions of dollars) Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Customer North America 6 $ — $ — 20 $ 9 $ 3 Europe 4 — — — — — Asia Pacific 1 1 1 — — — Mining 2 15 14 45 122 124 Latin America 10 1 2 45 3 3 Caterpillar Power Finance 8 93 79 7 44 46 Total 1 31 $ 110 $ 96 117 $ 178 $ 176 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Customer North America 10 $ 1 $ 1 24 $ 11 $ 5 Europe 23 2 2 8 7 7 Asia Pacific 19 1 1 — — — Mining 2 15 14 47 165 157 Latin America 10 1 2 47 32 31 Caterpillar Power Finance 12 197 180 13 80 81 Total 1 76 $ 217 $ 200 139 $ 295 $ 281 1 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 with a payment default which had been modified within twelve months prior to the default date | TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2015 and 2014 , which had been modified within twelve months prior to the default date, were as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Millions of dollars) Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 5 $ — 3 $ — Europe — — 5 1 Total 5 $ — 8 $ 1 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 10 $ 1 10 $ 1 Europe — — 12 2 Latin America 1 — — — Total 11 $ 1 22 $ 3 Finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2015 and 2014 , were as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Millions of dollars) Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Customer North America 6 $ — $ — 20 $ 9 $ 3 Europe 4 — — — — — Asia Pacific 1 1 1 — — — Mining 2 15 14 45 122 124 Latin America 10 1 2 45 3 3 Caterpillar Power Finance 8 93 79 7 44 46 Total 1 31 $ 110 $ 96 117 $ 178 $ 176 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Customer North America 10 $ 1 $ 1 24 $ 11 $ 5 Europe 23 2 2 8 7 7 Asia Pacific 19 1 1 — — — Mining 2 15 14 47 165 157 Latin America 10 1 2 47 32 31 Caterpillar Power Finance 12 197 180 13 80 81 Total 1 76 $ 217 $ 200 139 $ 295 $ 281 1 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. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on a recurring basis at fair value | Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of September 30, 2015 and December 31, 2014 are summarized below: September 30, 2015 (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 $ 13 $ — $ — $ 13 Other U.S. and non-U.S. government bonds — 83 — 83 Corporate bonds Corporate bonds — 713 — 713 Asset-backed securities — 97 — 97 Mortgage-backed debt securities U.S. governmental agency — 274 — 274 Residential — 13 — 13 Commercial — 62 — 62 Equity securities Large capitalization value 250 — — 250 REIT — — 8 8 Smaller company growth 50 — — 50 Total available-for-sale securities 313 1,242 8 1,563 Derivative financial instruments, net — 45 — 45 Total Assets $ 313 $ 1,287 $ 8 $ 1,608 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 Total Liabilities $ — $ 86 $ — $ 86 |
Roll-forward of assets measured at fair value using Level 3 inputs | The fair value of our REIT investment is measured based on NAV, which is considered a Level 3 input. A roll-forward of our REIT investment for the nine months ended September 30, 2015 is as follows: (Millions of dollars) REIT Balance at December 31, 2014 $ — Purchases of securities 8 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) — Balance at September 30, 2015 $ 8 |
Fair values of financial instruments | Please refer to the table below for the fair values of our financial instruments. Fair Value of Financial Instruments September 30, 2015 December 31, 2014 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 6,046 $ 6,046 $ 7,341 $ 7,341 1 Restricted cash and short-term investments 44 44 62 62 1 Available-for-sale securities 1,563 1,563 1,554 1,554 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 16,153 15,995 16,426 16,159 3 Note 16 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,885 1,816 1,774 1,700 3 Note 16 Interest rate swaps – net 62 62 71 71 2 Note 4 Liabilities Short-term borrowings 6,080 6,080 4,708 4,708 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,513 10,838 10,003 11,973 2 Financial Products 21,950 22,311 24,574 25,103 2 Foreign currency contracts – net 5 5 143 143 2 Note 4 Commodity contracts – net 12 12 14 14 2 Note 4 Guarantees 13 13 12 12 3 Note 10 1 Total excluded items have a net carrying value at September 30, 2015 and December 31, 2014 of $6,670 million and $7,638 million , respectively. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring Charges [Abstract] | |
Summary of separation activity | The following table summarizes the 2014 and 2015 employee separation activity: (Millions of dollars) Total 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 Increase in liability (separation charges) 180 Reduction in liability (payments and other adjustments) (197 ) Liability balance at September 30, 2015 $ 165 |
Nature of Operations and Basi44
Nature of Operations and Basis of Presentation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement | ||
Receivables - trade and other | $ 614 | $ 393 |
Accounts payable | $ (893) | 518 |
Statement of Cash Flows revision | ||
Error Corrections and Prior Period Adjustments Restatement | ||
Receivables - trade and other | 149 | |
Accounts payable | $ (149) |
Nature of Operations and Basi45
Nature of Operations and Basis of Presentation (Details 2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Receivables - trade and other | $ 6,783 | $ 7,737 |
Receivables - finance | 8,862 | 9,027 |
Long-term receivables - finance | 13,551 | 14,644 |
Investments in unconsolidated affiliated companies | 231 | 257 |
Guarantees | 707 | 740 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Receivables - trade and other | 48 | 36 |
Receivables - finance | 492 | 216 |
Long-term receivables - finance | 63 | 285 |
Investments in unconsolidated affiliated companies | 28 | 83 |
Guarantees | 98 | 129 |
Total | $ 729 | $ 749 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-based compensation awards | ||||
Vesting period of awards issued prior to 2015, 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 | |||
Requisite service period prior to 2015 grant (in months) | 6 months | |||
Term life of SARs and option awards (in years) | 10 years | |||
Term life of vested options/SARs from separation date (in years) | 5 years | |||
Stock-based compensation expense, before tax (in dollars) | $ 48 | $ 70 | $ 240 | $ 207 |
Granted, Stock options (in shares) | 7,939,497 | 4,448,218 | ||
Weighted-Average Fair Value Per Award, Stock options (in dollars per share) | $ 23.61 | $ 29.52 | ||
Weighted-Average Grant Date Stock Price (in dollars per share) | $ 83.34 | $ 96.31 | $ 83.34 | $ 96.31 |
Assumptions used in determining the fair value of the stock-based awards | ||||
Weighted-average dividend yield (as a percent) | 2.27% | 2.15% | ||
Weighted-average volatility (as a percent) | 28.40% | 28.20% | ||
Volatilities, low end of range (as a percent) | 19.90% | 18.40% | ||
Volatilities, high end of range (as a percent) | 35.90% | 36.20% | ||
Risk-free interest rates, low end of range (as a percent) | 0.22% | 0.12% | ||
Risk-free interest rates, high end of range (as a percent) | 2.08% | 2.60% | ||
Weighted-average expected lives (in years) | 8 years | 8 years | ||
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars) | $ 261 | $ 261 | ||
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years) | 2 years | |||
RSUs | ||||
Stock-based compensation awards | ||||
Granted (in shares) | 1,822,729 | 1,429,512 | ||
Weighted-Average Fair Value Per Award, RSUs (in dollars per share) | $ 77.54 | $ 89.18 | ||
Weighted-Average Grant Date Stock Price (in dollars per share) | $ 83.01 | $ 96.31 | $ 83.01 | $ 96.31 |
2015 Grant | ||||
Stock-based compensation awards | ||||
Graded vesting period of awards granted (in years) | 3 years | |||
2015 Grant | Percentage of award vested on first anniversary of grant date | ||||
Stock-based compensation awards | ||||
Portion of the award vested on each anniversary of the grant date | 33.33% | |||
2015 Grant | Percentage of award vested on second anniversary of grant date | ||||
Stock-based compensation awards | ||||
Portion of the award vested on each anniversary of the grant date | 33.33% | |||
2015 Grant | Percentage of award vested on third anniversary of grant date | ||||
Stock-based compensation awards | ||||
Portion of the award vested on each anniversary of the grant date | 33.33% |
Derivative Financial Instrume47
Derivative Financial Instruments and Risk Management (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Derivative | |
Foreign currency cash flow hedges, maximum allowable period (in years) | 5 years |
Foreign currency cash flow hedges, maximum period (in years) | 15 months |
Deferred net losses, foreign currency exchange rate risk, to be reclassified from equity to current earnings over the next twelve months | $ 19 |
Commodity forward and option contracts, maximum period (in years) | 5 years |
Machinery, Energy & Transportation | |
Derivative | |
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months | $ 4 |
Financial Products | |
Derivative | |
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months | $ 1 |
Derivative Financial Instrume48
Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives Fair Value | ||
Asset Fair Value | $ 126 | $ 128 |
Liability Fair Value | (81) | (214) |
Machinery, Energy & Transportation | ||
Derivatives Fair Value | ||
Asset Fair Value | 22 | 27 |
Liability Fair Value | (72) | (191) |
Financial Products | ||
Derivatives Fair Value | ||
Asset Fair Value | 104 | 101 |
Liability Fair Value | (9) | (23) |
Designated Derivatives | ||
Derivatives Fair Value | ||
Asset (Liability) Fair Value | 29 | (38) |
Designated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation | ||
Derivatives Fair Value | ||
Asset Fair Value | 16 | 25 |
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation | ||
Derivatives Fair Value | ||
Liability Fair Value | (47) | (134) |
Designated Derivatives | Foreign exchange contracts | Other Liabilities | Machinery, Energy & Transportation | ||
Derivatives Fair Value | ||
Liability Fair Value | (2) | 0 |
Designated Derivatives | Interest rate contracts | Receivables-trade and other | Financial Products | ||
Derivatives Fair Value | ||
Asset Fair Value | 1 | 6 |
Designated Derivatives | Interest rate contracts | Long-term receivables-trade and other | Financial Products | ||
Derivatives Fair Value | ||
Asset Fair Value | 65 | 73 |
Designated Derivatives | Interest rate contracts | Accrued Expenses | Financial Products | ||
Derivatives Fair Value | ||
Liability Fair Value | (4) | (8) |
Undesignated Derivatives | ||
Derivatives Fair Value | ||
Asset (Liability) Fair Value | 16 | (48) |
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation | ||
Derivatives Fair Value | ||
Asset Fair Value | 6 | 2 |
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Financial Products | ||
Derivatives Fair Value | ||
Asset Fair Value | 3 | 5 |
Undesignated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Financial Products | ||
Derivatives Fair Value | ||
Asset Fair Value | 35 | 17 |
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation | ||
Derivatives Fair Value | ||
Liability Fair Value | (11) | (43) |
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products | ||
Derivatives Fair Value | ||
Liability Fair Value | (5) | (15) |
Undesignated Derivatives | Commodity contracts | Accrued Expenses | Machinery, Energy & Transportation | ||
Derivatives Fair Value | ||
Liability Fair Value | $ (12) | $ (14) |
Derivative Financial Instrume49
Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Machinery, Energy & Transportation | ||
Derivative notional amounts | ||
Derivative instruments notional amount | $ 2,198 | $ 3,128 |
Financial Products | ||
Derivative notional amounts | ||
Derivative instruments notional amount | $ 3,785 | $ 5,249 |
Derivative Financial Instrume50
Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Designated Derivatives | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains (Losses) on Derivatives | $ 3 | $ (19) | $ (11) | $ (38) |
Gains (Losses) on Borrowings | (3) | 1 | 10 | 24 |
Designated Derivatives | Fair Value Hedges | Interest rate contracts | Financial Products | Other Income (Expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains (Losses) on Derivatives | 3 | (19) | (11) | (38) |
Gains (Losses) on Borrowings | (3) | 1 | 10 | 24 |
Designated Derivatives | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | (19) | (47) | (24) | (90) |
Amount of Gains (Losses) Reclassified from AOCI to Earnings | (31) | 1 | (109) | 17 |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 | 0 |
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | (18) | (45) | (25) | (20) |
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 | (29) | 4 | (101) | 24 |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 | 0 |
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | 0 | 0 | 0 | (63) |
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 | (1) | (3) | ||
Recognized in Earnings (Ineffective Portion) | 0 | 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 | (1) | (4) | ||
Recognized in Earnings (Ineffective Portion) | 0 | 0 | ||
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) | (1) | (2) | 1 | (7) |
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 | (1) | (2) | (4) | (4) |
Recognized in Earnings (Ineffective Portion) | 0 | 0 | 0 | 0 |
Undesignated Derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 5 | (69) | (55) | (74) |
Undesignated Derivatives | Foreign exchange contracts | Machinery, Energy & Transportation | Other Income (Expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 7 | (44) | (22) | (35) |
Undesignated Derivatives | Foreign exchange contracts | Financial Products | Other Income (Expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | 6 | (19) | (18) | (36) |
Undesignated Derivatives | Commodity contracts | Machinery, Energy & Transportation | Other Income (Expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains (Losses) on Derivatives Not Designated as Hedging Instruments | $ (8) | $ (6) | $ (15) | $ (3) |
Derivative Financial Instrume51
Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Assets | ||
Gross Amount of Recognized Assets | $ 126 | $ 128 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 126 | 128 |
Financial Instruments | (27) | (35) |
Cash Collateral Received | 0 | 0 |
Net Amount of Assets | 99 | 93 |
Machinery, Energy & Transportation | ||
Offsetting Assets | ||
Gross Amount of Recognized Assets | 22 | 27 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 22 | 27 |
Financial Instruments | (20) | (27) |
Cash Collateral Received | 0 | 0 |
Net Amount of Assets | 2 | 0 |
Financial Products | ||
Offsetting Assets | ||
Gross Amount of Recognized Assets | 104 | 101 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amount of Assets Presented in the Statement of Financial Position | 104 | 101 |
Financial Instruments | (7) | (8) |
Cash Collateral Received | 0 | 0 |
Net Amount of Assets | $ 97 | $ 93 |
Derivative Financial Instrume52
Derivative Financial Instruments and Risk Management (Details 6) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Liabilities | ||
Gross Amount of Recognized Liabilities | $ (81) | $ (214) |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | (81) | (214) |
Financial Instruments | 27 | 35 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Liabilities | (54) | (179) |
Machinery, Energy & Transportation | ||
Offsetting Liabilities | ||
Gross Amount of Recognized Liabilities | (72) | (191) |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | (72) | (191) |
Financial Instruments | 20 | 27 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Liabilities | (52) | (164) |
Financial Products | ||
Offsetting Liabilities | ||
Gross Amount of Recognized Liabilities | (9) | (23) |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | (9) | (23) |
Financial Instruments | 7 | 8 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Liabilities | $ (2) | $ (15) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,862 | $ 2,986 |
Work-in-process | 1,987 | 2,455 |
Finished goods | 6,042 | 6,504 |
Supplies | 259 | 260 |
Total inventories | $ 11,150 | $ 12,205 |
Investments in Unconsolidated54
Investments in Unconsolidated Affiliated Companies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Results of Operations of unconsolidated affiliated companies: | ||||||
Sales | $ 205 | $ 453 | $ 558 | $ 1,253 | ||
Cost of sales | 166 | 357 | 437 | 974 | ||
Gross profit | 39 | 96 | 121 | 279 | ||
Profit (loss) | (10) | $ (7) | (2) | $ (17) | ||
Assets: | ||||||
Current assets | 506 | 506 | $ 716 | |||
Property, plant and equipment - net | 187 | 187 | 653 | |||
Other assets | 198 | 198 | 557 | |||
Assets | 891 | 891 | 1,926 | |||
Liabilities: | ||||||
Current liabilities | 298 | 298 | 518 | |||
Long-term debt due after one year | 206 | 206 | 867 | |||
Other liabilities | 13 | 13 | 215 | |||
Liabilities | 517 | 517 | 1,600 | |||
Equity | 374 | 374 | 326 | |||
Caterpillar's investments in unconsolidated affiliated companies: | ||||||
Investments in equity method companies | 188 | 188 | 248 | |||
Plus: Investments in cost method companies | 43 | 43 | 9 | |||
Total investments in unconsolidated affiliated companies | $ 231 | $ 231 | $ 257 | |||
Third party logistics business, investment | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity interest sold | 35.00% | |||||
Sale price of investment | $ 177 | |||||
Cash proceeds from sale | 167 | |||||
Note receivable from sale | 10 | |||||
Realized gain on disposal | 120 | |||||
Carrying value of noncontrolling interest | $ 57 |
Intangible Assets and Goodwil55
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Intangible assets | |||||
Weighted Amortizable Life (in years) | 14 years | 14 years | |||
Gross Carrying Amount | $ 4,334 | $ 4,334 | $ 4,452 | ||
Accumulated Amortization | (1,493) | (1,493) | (1,376) | ||
Net | 2,841 | 2,841 | 3,076 | ||
Total intangible assets, net | 2,841 | 2,841 | $ 3,076 | ||
Amortization expense | 81 | $ 91 | 255 | $ 276 | |
Remaining Three Months of 2015 | 88 | 88 | |||
2,016 | 327 | 327 | |||
2,017 | 325 | 325 | |||
2,018 | 319 | 319 | |||
2,019 | 317 | 317 | |||
Thereafter | 1,465 | $ 1,465 | |||
Customer Relationships | |||||
Intangible assets | |||||
Weighted Amortizable Life (in years) | 15 years | 15 years | |||
Gross Carrying Amount | 2,427 | $ 2,427 | $ 2,489 | ||
Accumulated Amortization | (773) | (773) | (669) | ||
Net | 1,654 | $ 1,654 | $ 1,820 | ||
Intellectual Property | |||||
Intangible assets | |||||
Weighted Amortizable Life (in years) | 11 years | 11 years | |||
Gross Carrying Amount | 1,720 | $ 1,720 | $ 1,724 | ||
Accumulated Amortization | (645) | (645) | (578) | ||
Net | 1,075 | $ 1,075 | $ 1,146 | ||
Other | |||||
Intangible assets | |||||
Weighted Amortizable Life (in years) | 13 years | 11 years | |||
Gross Carrying Amount | 187 | $ 187 | $ 239 | ||
Accumulated Amortization | (75) | (75) | (129) | ||
Net | $ 112 | $ 112 | $ 110 |
Intangible Assets and Goodwil56
Intangible Assets and Goodwill (Details 2) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in carrying amount of goodwill by reportable segment: | ||
Goodwill, beginning of period | $ 7,296 | |
Impairments, beginning of period | (602) | |
Net goodwill, beginning of period | 6,694 | |
Goodwill Acquired | 21 | |
Goodwill impairment charge | 0 | $ 0 |
Other adjustments | (169) | |
Goodwill, end of period | 7,148 | |
Impairments, end of period | (602) | |
Net goodwill, end of period | 6,546 | |
Construction Industries | ||
Changes in carrying amount of goodwill by reportable segment: | ||
Net goodwill, beginning of period | 275 | |
Goodwill Acquired | 0 | |
Other adjustments | (10) | |
Net goodwill, end of period | 265 | |
Resource Industries | ||
Changes in carrying amount of goodwill by reportable segment: | ||
Goodwill, beginning of period | 4,287 | |
Impairments, beginning of period | (580) | |
Net goodwill, beginning of period | 3,707 | |
Goodwill Acquired | 0 | |
Other adjustments | (119) | |
Goodwill, end of period | 4,168 | |
Impairments, end of period | (580) | |
Net goodwill, end of period | 3,588 | |
Energy & Transportation | ||
Changes in carrying amount of goodwill by reportable segment: | ||
Net goodwill, beginning of period | 2,542 | |
Goodwill Acquired | 21 | |
Other adjustments | (38) | |
Net goodwill, end of period | 2,525 | |
All Other | ||
Changes in carrying amount of goodwill by reportable segment: | ||
Goodwill, beginning of period | 192 | |
Impairments, beginning of period | (22) | |
Net goodwill, beginning of period | 170 | |
Goodwill Acquired | 0 | |
Other adjustments | (2) | |
Goodwill, end of period | 190 | |
Impairments, end of period | (22) | |
Net goodwill, end of period | $ 168 |
Available-For-Sale Securities57
Available-For-Sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities | ||
Cost Basis | $ 1,484 | $ 1,421 |
Unrealized Pretax Net Gains (Losses) | 79 | 133 |
Fair Value | 1,563 | 1,554 |
U.S. treasury bonds | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 13 | 10 |
Unrealized Pretax Net Gains (Losses) | 0 | 0 |
Fair Value | 13 | 10 |
Other U.S. and non-U.S. government bonds | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 82 | 94 |
Unrealized Pretax Net Gains (Losses) | 1 | 0 |
Fair Value | 83 | 94 |
Corporate bonds | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 700 | 677 |
Unrealized Pretax Net Gains (Losses) | 13 | 16 |
Fair Value | 713 | 693 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 96 | 103 |
Unrealized Pretax Net Gains (Losses) | 1 | 2 |
Fair Value | 97 | 105 |
U.S. governmental agency mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 270 | 292 |
Unrealized Pretax Net Gains (Losses) | 4 | 2 |
Fair Value | 274 | 294 |
Residential | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 13 | 15 |
Unrealized Pretax Net Gains (Losses) | 0 | 0 |
Fair Value | 13 | 15 |
Commercial | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 59 | 63 |
Unrealized Pretax Net Gains (Losses) | 3 | 4 |
Fair Value | 62 | 67 |
Large capitalization value | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 212 | 150 |
Unrealized Pretax Net Gains (Losses) | 38 | 83 |
Fair Value | 250 | 233 |
REIT | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 8 | 0 |
Unrealized Pretax Net Gains (Losses) | 0 | 0 |
Fair Value | 8 | 0 |
Smaller company growth | ||
Schedule of Available-for-sale Securities | ||
Cost Basis | 31 | 17 |
Unrealized Pretax Net Gains (Losses) | 19 | 26 |
Fair Value | $ 50 | $ 43 |
Available-For-Sale Securities58
Available-For-Sale Securities (Details 2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Less than 12 months | ||
Fair Value | $ 267 | $ 244 |
Unrealized Losses | 12 | 3 |
12 months or more | ||
Fair Value | 84 | 173 |
Unrealized Losses | 1 | 3 |
Total | ||
Fair Value | 351 | 417 |
Unrealized Losses | 13 | 6 |
Corporate bonds | ||
Less than 12 months | ||
Fair Value | 155 | 195 |
Unrealized Losses | 2 | 1 |
12 months or more | ||
Fair Value | 23 | 32 |
Unrealized Losses | 0 | 0 |
Total | ||
Fair Value | 178 | 227 |
Unrealized Losses | 2 | 1 |
U.S. governmental agency mortgage-backed securities | ||
Less than 12 months | ||
Fair Value | 15 | 34 |
Unrealized Losses | 0 | 0 |
12 months or more | ||
Fair Value | 60 | 140 |
Unrealized Losses | 1 | 3 |
Total | ||
Fair Value | 75 | 174 |
Unrealized Losses | 1 | 3 |
Large capitalization value | ||
Less than 12 months | ||
Fair Value | 84 | 15 |
Unrealized Losses | 8 | 2 |
12 months or more | ||
Fair Value | 1 | 1 |
Unrealized Losses | 0 | 0 |
Total | ||
Fair Value | 85 | 16 |
Unrealized Losses | 8 | $ 2 |
Smaller company growth | ||
Less than 12 months | ||
Fair Value | 13 | |
Unrealized Losses | 2 | |
12 months or more | ||
Fair Value | 0 | |
Unrealized Losses | 0 | |
Total | ||
Fair Value | 13 | |
Unrealized Losses | $ 2 |
Available-For-Sale Securities59
Available-For-Sale Securities (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Due in one year or less, Cost Basis | $ 102 | $ 102 | |||
Due after one year through five years, Cost Basis | 739 | 739 | |||
Due after five through ten years, Cost Basis | 21 | 21 | |||
Due after ten years, Cost Basis | 29 | 29 | |||
Due in one year or less, Fair Value | 102 | 102 | |||
Due after one year through five years, Fair Value | 752 | 752 | |||
Due after five years through ten years, Fair Value | 22 | 22 | |||
Due after ten years, Fair Value | 30 | 30 | |||
Cost Basis | 1,233 | 1,233 | |||
Fair Value | 1,255 | 1,255 | |||
Schedule of Available-for-sale Securities | |||||
Cost Basis | 1,484 | 1,484 | $ 1,421 | ||
Available-for-sale securities, Fair Value | 1,563 | 1,563 | 1,554 | ||
Available-for-sale Securities, Proceeds, Gains and Losses | |||||
Proceeds from the sale of available-for-sale securities | 110 | $ 125 | 238 | $ 347 | |
Gross gains from the sale of available-for-sale securities | 32 | 22 | 38 | 36 | |
Gross losses from the sale of available-for-sale securities | 1 | $ 1 | 2 | $ 1 | |
U.S. governmental agency mortgage-backed securities | |||||
Schedule of Available-for-sale Securities | |||||
Cost Basis | 270 | 270 | 292 | ||
Available-for-sale securities, Fair Value | 274 | 274 | 294 | ||
Residential | |||||
Schedule of Available-for-sale Securities | |||||
Cost Basis | 13 | 13 | 15 | ||
Available-for-sale securities, Fair Value | 13 | 13 | 15 | ||
Commercial | |||||
Schedule of Available-for-sale Securities | |||||
Cost Basis | 59 | 59 | 63 | ||
Available-for-sale securities, Fair Value | $ 62 | $ 62 | $ 67 |
Postretirement Benefits (Detail
Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits | ||||
Pension contributions | ||||
Contributions to pension plans | $ 36 | $ 68 | $ 149 | $ 455 |
Expected full year contributions to pension plans during the year | 180 | 180 | ||
U.S. Pension Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 45 | 39 | 136 | 118 |
Interest cost | 151 | 162 | 454 | 486 |
Expected return on plan assets | (220) | (221) | (659) | (664) |
Amortization of: | ||||
Prior service cost / (credit) | 1 | 5 | 1 | 13 |
Net actuarial loss / (gain) | 126 | 98 | 380 | 294 |
Net periodic benefit cost, excluding curtailments, settlements and termination benefits | 103 | 83 | 312 | 247 |
Curtailments, settlements and termination benefits | 0 | 0 | 0 | 0 |
Total cost included in operating profit | 103 | 83 | $ 312 | $ 247 |
Weighted-average assumptions used to determine net cost: | ||||
Discount rate (as a percent) | 3.80% | 4.60% | ||
Expected return on plan assets (as a percent) | 7.40% | 7.80% | ||
Rate of compensation increase (as a percent) | 4.00% | 4.00% | ||
Non-U.S. Pension Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 28 | 28 | $ 85 | $ 83 |
Interest cost | 37 | 47 | 115 | 139 |
Expected return on plan assets | (66) | (66) | (199) | (195) |
Amortization of: | ||||
Prior service cost / (credit) | 0 | 0 | 0 | 0 |
Net actuarial loss / (gain) | 25 | 22 | 75 | 65 |
Net periodic benefit cost, excluding curtailments, settlements and termination benefits | 24 | 31 | 76 | 92 |
Curtailments, settlements and termination benefits | 7 | 5 | 10 | 12 |
Total cost included in operating profit | 31 | 36 | $ 86 | $ 104 |
Weighted-average assumptions used to determine net cost: | ||||
Discount rate (as a percent) | 3.30% | 4.10% | ||
Expected return on plan assets (as a percent) | 6.80% | 6.90% | ||
Rate of compensation increase (as a percent) | 4.00% | 4.20% | ||
Other Postretirement Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 26 | 19 | $ 76 | $ 62 |
Interest cost | 46 | 54 | 138 | 160 |
Expected return on plan assets | (13) | (13) | (39) | (39) |
Amortization of: | ||||
Prior service cost / (credit) | (14) | (14) | (41) | (41) |
Net actuarial loss / (gain) | 13 | 10 | 39 | 31 |
Net periodic benefit cost, excluding curtailments, settlements and termination benefits | 58 | 56 | 173 | 173 |
Curtailments, settlements and termination benefits | 0 | 0 | 0 | 0 |
Total cost included in operating profit | $ 58 | $ 56 | $ 173 | $ 173 |
Weighted-average assumptions used to determine net cost: | ||||
Discount rate (as a percent) | 3.90% | 4.60% | ||
Expected return on plan assets (as a percent) | 7.80% | 7.80% | ||
Rate of compensation increase (as a percent) | 4.00% | 4.00% |
Postretirement Benefits (Deta61
Postretirement Benefits (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined contribution plans | ||||
Costs related to defined contribution plans | $ 50 | $ 83 | $ 246 | $ 294 |
U.S. Plans | ||||
Defined contribution plans | ||||
Costs related to defined contribution plans | 31 | 62 | 188 | 232 |
Non-U.S. Plans | ||||
Defined contribution plans | ||||
Costs related to defined contribution plans | $ 19 | $ 21 | $ 58 | $ 62 |
Guarantees and Product Warran62
Guarantees and Product Warranty (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Feb. 28, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |||
Related liability | $ 13 | $ 12 | |
Guarantor Obligations | |||
Guarantees, maximum potential amount of future payments | 707 | 740 | |
Special-Purpose Corporation assets in Consolidated Statement of Financial Position | 1,289 | 1,086 | |
Special-Purpose Corporation liabilities in Consolidated Statement of Financial Position | 1,288 | 1,085 | |
Caterpillar dealer performance guarantees | |||
Guarantor Obligations | |||
Guarantees, maximum potential amount of future payments | 220 | 209 | |
Customer loan guarantees | |||
Guarantor Obligations | |||
Guarantees, maximum potential amount of future payments | 58 | 49 | |
Supplier consortium performance guarantee | |||
Guarantor Obligations | |||
Guarantees, maximum potential amount of future payments | 294 | 321 | |
Third party logistics business lease guarantees | |||
Guarantor Obligations | |||
Guarantees, maximum potential amount of future payments | 112 | 129 | |
Percentage of equity interest sold | 35.00% | ||
Other guarantees | |||
Guarantor Obligations | |||
Guarantees, maximum potential amount of future payments | $ 23 | $ 32 |
Guarantees and Product Warran63
Guarantees and Product Warranty (Details 2) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Movement in Standard Product Warranty Accrual | ||
Warranty liability, beginning balance | $ 1,426 | $ 1,367 |
Reduction in liability (payments) | (650) | (1,071) |
Increase in liability (new warranties) | 604 | 1,130 |
Warranty liability, ending balance | $ 1,380 | 1,426 |
Product warranty accrual, preexisting, increase (decrease) | $ 170 |
Profit Per Share (Details)
Profit Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jan. 31, 2014 | Feb. 28, 2007 | ||
Earnings Per Share [Abstract] | ||||||||
Profit for the period (A) (in dollars) | [1] | $ 368 | $ 1,017 | $ 2,189 | $ 2,938 | |||
Determination of shares (in millions) | ||||||||
Weighted-average number of common shares outstanding (B) (in shares) | 588,400,000 | 611,500,000 | 597,900,000 | 620,600,000 | ||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares) | 6,400,000 | 11,300,000 | 7,400,000 | 12,100,000 | ||||
Average common shares outstanding for fully diluted computation (C) (in shares) | [2] | 594,800,000 | 622,800,000 | 605,300,000 | 632,700,000 | |||
Profit (loss) per share of common stock: | ||||||||
Assuming no dilution (A/B) (in dollars per share) | $ 0.63 | $ 1.66 | $ 3.66 | $ 4.73 | ||||
Assuming full dilution (A/C) (in dollars per share) | [2] | $ 0.62 | $ 1.63 | $ 3.62 | $ 4.64 | |||
Shares outstanding as of September 30 (in shares) | 582,200,000 | 605,400,000 | 582,200,000 | 605,400,000 | ||||
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares) | 22,281,448 | 7,494,204 | 22,281,448 | 10,288,573 | ||||
Common stock repurchase | ||||||||
Stock repurchase program, authorized amount | $ 10,000 | $ 7,500 | ||||||
Common shares repurchased (in shares) | 19,600,000 | 23,700,000 | 18,110,735 | 25,841,608 | 41,762,325 | |||
Payments for repurchase of common stock | $ 1,500 | $ 2,500 | $ 1,700 | $ 2,025 | $ 4,238 | |||
Stock repurchase program, amount of authorized repurchase spent to date | $ 4,500 | |||||||
[1] | 1 Profit attributable to common stockholders. | |||||||
[2] | 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income (loss), start of period | $ (6,729) | $ (3,683) | $ (6,431) | $ (3,898) |
Other comprehensive income (loss) before reclassifications | (216) | (741) | (760) | (666) |
Amounts reclassified from accumulated other comprehensive (income) loss | 102 | 67 | 348 | 207 |
Other comprehensive income (loss) | (114) | (674) | (412) | (459) |
Accumulated other comprehensive income (loss), end of period | (6,843) | (4,357) | (6,843) | (4,357) |
Foreign currency translation | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income (loss), start of period | (1,555) | 244 | (988) | 176 |
Other comprehensive income (loss) before reclassifications | (234) | (710) | (801) | (642) |
Amounts reclassified from accumulated other comprehensive (income) loss | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (234) | (710) | (801) | (642) |
Accumulated other comprehensive income (loss), end of period | (1,789) | (466) | (1,789) | (466) |
Pension and other postretirement benefits | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income (loss), start of period | (5,183) | (3,981) | (5,407) | (4,152) |
Other comprehensive income (loss) before reclassifications | 45 | 4 | 69 | 15 |
Amounts reclassified from accumulated other comprehensive (income) loss | 100 | 80 | 300 | 240 |
Other comprehensive income (loss) | 145 | 84 | 369 | 255 |
Accumulated other comprehensive income (loss), end of period | (5,038) | (3,897) | (5,038) | (3,897) |
Derivative financial instruments | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income (loss), start of period | (73) | (42) | (119) | (5) |
Other comprehensive income (loss) before reclassifications | (12) | (30) | (15) | (57) |
Amounts reclassified from accumulated other comprehensive (income) loss | 20 | 0 | 69 | (10) |
Other comprehensive income (loss) | 8 | (30) | 54 | (67) |
Accumulated other comprehensive income (loss), end of period | (65) | (72) | (65) | (72) |
Available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income (loss), start of period | 82 | 96 | 83 | 83 |
Other comprehensive income (loss) before reclassifications | (15) | (5) | (13) | 18 |
Amounts reclassified from accumulated other comprehensive (income) loss | (18) | (13) | (21) | (23) |
Other comprehensive income (loss) | (33) | (18) | (34) | (5) |
Accumulated other comprehensive income (loss), end of period | $ 49 | $ 78 | $ 49 | $ 78 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Other income (expense) | $ (68) | $ 117 | $ 76 | $ 236 | |
Interest expense excluding Financial Products | (127) | (128) | (381) | (358) | |
Interest expense of Financial Products | (142) | (157) | (440) | (470) | |
Tax (provision) benefit | (144) | (364) | (870) | (1,201) | |
Reclassifications net of tax | [1] | 368 | 1,017 | 2,189 | 2,938 |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassifications net of tax | (102) | (67) | (348) | (207) | |
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) | (164) | (130) | (494) | (390) | |
Amortization of prior service credit (cost) | 13 | 9 | 40 | 28 | |
Reclassifications before tax | (151) | (121) | (454) | (362) | |
Tax (provision) benefit | 51 | 41 | 154 | 122 | |
Reclassifications net of tax | (100) | (80) | (300) | (240) | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassifications before tax | (31) | 1 | (109) | 17 | |
Tax (provision) benefit | 11 | (1) | 40 | (7) | |
Reclassifications net of tax | (20) | 0 | (69) | 10 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Other income (expense) | (29) | 4 | (101) | 24 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Machinery, Energy & Transportation | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Interest expense excluding Financial Products | (1) | (1) | (4) | (3) | |
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 | (1) | (2) | (4) | (4) | |
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Other income (expense) | 27 | 20 | 31 | 34 | |
Tax (provision) benefit | (9) | (7) | (10) | (11) | |
Reclassifications net of tax | $ 18 | $ 13 | $ 21 | $ 23 | |
[1] | 1 Profit attributable to common stockholders. |
Environmental and Legal Matte67
Environmental and Legal Matters (Details) - Mar. 20, 2014 | former_employee | subsidiaries | individuals | companies | current_employees |
Environmental Remediation Obligations [Abstract] | |||||
Number of defendants | 1 | 2 | 100 | 18 | 2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Estimated annual effective tax rate (as a percent) | 27.00% | 29.50% |
Prior year tax adjustment expense (benefit) | $ 42 | $ (21) |
Other tax expense (benefit) | (26) | |
Tax Year Prior Years | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits, increase resulting from prior period tax positions | 68 | |
Income tax examination, proposed liability increase/(decrease) | 1,000 | |
Income tax adjustment | $ 125 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)group_presidentssegmentsdealers | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information | |||||
Number of group presidents | group_presidents | 5 | ||||
Number of operating segments | segments | 7 | ||||
Useful life to amortize goodwill for segment assets | 20 years | ||||
Reportable Segments | |||||
Sales and revenues | $ 10,962 | $ 13,549 | $ 35,981 | $ 40,940 | |
Depreciation and amortization | 758 | 798 | 2,272 | 2,368 | |
Consolidated profit before taxes | 518 | 1,381 | 3,065 | 4,143 | |
Segment assets | 78,969 | 78,969 | $ 84,681 | ||
Capital expenditures | 726 | 847 | $ 2,197 | 2,382 | |
All Other operating segments | |||||
Segment Reporting Information | |||||
Number of group presidents | group_presidents | 1 | ||||
Number of smaller operating segments led by Group President | group_presidents | 3 | ||||
Number of wholly-owned dealers involved in segment reallocation | dealers | 1 | ||||
Reportable Segments | |||||
Sales and revenues | 506 | 583 | $ 1,729 | 1,720 | |
Depreciation and amortization | 68 | 70 | 202 | 209 | |
Consolidated profit before taxes | 196 | 228 | 638 | 686 | |
Segment assets | 2,675 | 2,675 | 2,810 | ||
Capital expenditures | 68 | 93 | 159 | 187 | |
Reportable Segments Including Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 11,097 | 13,821 | $ 36,310 | 41,738 | |
Reportable Segments | |||||
Segment Reporting Information | |||||
Number of operating segments led by Group Presidents | segments | 3 | ||||
Number of operating segments led by Group President responsible for corporate services | segments | 1 | ||||
Reportable Segments | |||||
Number of reportable segments | segments | 4 | ||||
Sales and revenues | 10,553 | 13,079 | $ 34,494 | 39,516 | |
Depreciation and amortization | 647 | 695 | 1,956 | 2,056 | |
Consolidated profit before taxes | 1,152 | 1,976 | 4,867 | 5,940 | |
Segment assets | 58,478 | 58,478 | 61,574 | ||
Capital expenditures | 639 | 720 | 1,795 | 1,913 | |
Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 544 | 742 | 1,816 | 2,222 | |
Machinery, Energy & Transportation | Reportable Segments Including Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 10,345 | 12,970 | 33,978 | 39,236 | |
Machinery, Energy & Transportation | Reportable Segments | |||||
Reportable Segments | |||||
Sales and revenues | 9,801 | 12,228 | 32,162 | 37,014 | |
Depreciation and amortization | 437 | 466 | 1,318 | 1,391 | |
Consolidated profit before taxes | 945 | 1,756 | 4,249 | 5,236 | |
Segment assets | 23,064 | 23,064 | 24,563 | ||
Capital expenditures | 280 | 293 | 800 | 707 | |
Machinery, Energy & Transportation | Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 544 | 742 | 1,816 | 2,222 | |
Construction Industries | Reportable Segments Including Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 3,826 | 4,538 | 13,058 | 15,140 | |
Construction Industries | Reportable Segments | |||||
Reportable Segments | |||||
Sales and revenues | 3,792 | 4,471 | 12,928 | 14,942 | |
Depreciation and amortization | 118 | 129 | 359 | 394 | |
Consolidated profit before taxes | 378 | 483 | 1,705 | 1,845 | |
Segment assets | 5,712 | 5,712 | 6,596 | ||
Capital expenditures | 54 | 82 | 139 | 225 | |
Construction Industries | Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 34 | 67 | 130 | 198 | |
Resource Industries | Reportable Segments Including Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 1,889 | 2,277 | 5,983 | 6,854 | |
Resource Industries | Reportable Segments | |||||
Reportable Segments | |||||
Sales and revenues | 1,796 | 2,172 | 5,715 | 6,536 | |
Depreciation and amortization | 158 | 172 | 482 | 514 | |
Consolidated profit before taxes | (68) | 122 | 17 | 379 | |
Segment assets | 8,682 | 8,682 | 9,497 | ||
Capital expenditures | 66 | 65 | 134 | 165 | |
Resource Industries | Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 93 | 105 | 268 | 318 | |
Energy & Transportation | Reportable Segments Including Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 4,630 | 6,155 | 14,937 | 17,242 | |
Energy & Transportation | Reportable Segments | |||||
Reportable Segments | |||||
Sales and revenues | 4,213 | 5,585 | 13,519 | 15,536 | |
Depreciation and amortization | 161 | 165 | 477 | 483 | |
Consolidated profit before taxes | 635 | 1,151 | 2,527 | 3,012 | |
Segment assets | 8,670 | 8,670 | 8,470 | ||
Capital expenditures | 160 | 146 | 527 | 317 | |
Energy & Transportation | Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 417 | 570 | 1,418 | 1,706 | |
Financial Products Segment | Reportable Segments Including Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | 752 | 851 | 2,332 | 2,502 | |
Financial Products Segment | Reportable Segments | |||||
Reportable Segments | |||||
Sales and revenues | 752 | 851 | 2,332 | 2,502 | |
Depreciation and amortization | 210 | 229 | 638 | 665 | |
Consolidated profit before taxes | 207 | 220 | 618 | 704 | |
Segment assets | 35,414 | 35,414 | $ 37,011 | ||
Capital expenditures | 359 | 427 | 995 | 1,206 | |
Financial Products Segment | Intersegment Eliminations | |||||
Reportable Segments | |||||
Sales and revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Sales and revenues | ||||
Sales and revenues | $ 10,962 | $ 13,549 | $ 35,981 | $ 40,940 |
Reportable Segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 10,553 | 13,079 | 34,494 | 39,516 |
All Other operating segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 506 | 583 | 1,729 | 1,720 |
Other | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | (97) | (113) | (242) | (296) |
Consolidating Adjustments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | (95) | (84) | (238) | (259) |
Consolidating Adjustments | Reportable Segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 0 | 0 | 0 | 0 |
Consolidating Adjustments | All Other operating segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Other | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | (95) | (84) | (238) | (259) |
Machinery, Energy & Transportation | Reportable Segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 9,801 | 12,228 | 32,162 | 37,014 |
Machinery, Energy & Transportation | Business | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 10,285 | 12,758 | 33,829 | 38,642 |
Machinery, Energy & Transportation | Business | Reportable Segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 9,801 | 12,228 | 32,162 | 37,014 |
Machinery, Energy & Transportation | Business | All Other operating segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 506 | 583 | 1,729 | 1,720 |
Machinery, Energy & Transportation | Business | Other | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | (22) | (53) | (62) | (92) |
Financial Products | Business | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 772 | 875 | 2,390 | 2,557 |
Financial Products | Business | Reportable Segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 752 | 851 | 2,332 | 2,502 |
Financial Products | Business | All Other operating segments | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ||||
Reconciliation of Sales and revenues | ||||
Sales and revenues | $ 20 | $ 24 | $ 58 | $ 55 |
Segment Information (Details 3)
Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | $ 518 | $ 1,381 | $ 3,065 | $ 4,143 |
Reportable Segments | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 1,152 | 1,976 | 4,867 | 5,940 |
All Other operating segments | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 196 | 228 | 638 | 686 |
Cost Centers | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 58 | 31 | 139 | 105 |
Corporate Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (376) | (408) | (1,307) | (1,201) |
Timing | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 38 | (125) | 15 | (205) |
Restructuring Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (101) | (81) | (226) | (344) |
Inventory/cost of sales | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (22) | 6 | (30) | 29 |
Postretirement Benefits Expense | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (78) | (84) | (301) | (304) |
Financing Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (128) | (136) | (394) | (373) |
Equity in Profit/Loss of Unconsolidated Affiliated Companies | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 4 | (4) | 0 | (6) |
Currency | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (157) | 39 | (257) | 16 |
Other Income Expense Methodology Differences | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (51) | (55) | (48) | (186) |
Other | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (17) | (6) | (31) | (14) |
Business | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 1,348 | 2,204 | 5,505 | 6,626 |
Machinery, Energy & Transportation | Reportable Segments | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 945 | 1,756 | 4,249 | 5,236 |
Machinery, Energy & Transportation | Business | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 312 | 1,158 | 2,445 | 3,440 |
Machinery, Energy & Transportation | Business | Reportable Segments | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 945 | 1,756 | 4,249 | 5,236 |
Machinery, Energy & Transportation | Business | All Other operating segments | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 196 | 228 | 638 | 686 |
Machinery, Energy & Transportation | Business | Cost Centers | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 58 | 31 | 139 | 105 |
Machinery, Energy & Transportation | Business | Corporate Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (376) | (408) | (1,307) | (1,201) |
Machinery, Energy & Transportation | Business | Timing | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 38 | (125) | 15 | (205) |
Machinery, Energy & Transportation | Business | Restructuring Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (101) | (81) | (226) | (344) |
Machinery, Energy & Transportation | Business | Inventory/cost of sales | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (22) | 6 | (30) | 29 |
Machinery, Energy & Transportation | Business | Postretirement Benefits Expense | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (78) | (84) | (301) | (304) |
Machinery, Energy & Transportation | Business | Financing Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (128) | (136) | (394) | (373) |
Machinery, Energy & Transportation | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 4 | (4) | 0 | (6) |
Machinery, Energy & Transportation | Business | Currency | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (157) | 39 | (257) | 16 |
Machinery, Energy & Transportation | Business | Other Income Expense Methodology Differences | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (51) | (55) | (48) | (186) |
Machinery, Energy & Transportation | Business | Other | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | (16) | (9) | (33) | (13) |
Financial Products | Business | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 206 | 223 | 620 | 703 |
Financial Products | Business | Reportable Segments | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 207 | 220 | 618 | 704 |
Financial Products | Business | All Other operating segments | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Corporate Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Timing | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Restructuring Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Inventory/cost of sales | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Postretirement Benefits Expense | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Financing Costs | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Currency | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Other Income Expense Methodology Differences | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ||||
Reconciliation of Consolidated profit (loss) before taxes | ||||
Consolidated profit before taxes | $ (1) | $ 3 | $ 2 | $ (1) |
Segment Information (Details 4)
Segment Information (Details 4) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | $ 518 | $ 1,381 | $ 3,065 | $ 4,143 | |
Restructuring costs | (89) | (81) | (214) | (344) | $ (441) |
Reportable Segments | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 1,152 | 1,976 | 4,867 | 5,940 | |
Reportable Segments | Construction Industries | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 378 | 483 | 1,705 | 1,845 | |
Reportable Segments | Resource Industries | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | (68) | 122 | 17 | 379 | |
Reportable Segments | Energy & Transportation | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 635 | 1,151 | 2,527 | 3,012 | |
Reportable Segments | Financial Products Segment | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 207 | 220 | 618 | 704 | |
All Other operating segments | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 196 | 228 | 638 | 686 | |
Business | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 1,348 | 2,204 | 5,505 | 6,626 | |
Restructuring costs | (88) | (78) | (203) | (338) | |
Consolidated profit before taxes with restructuring costs | 1,260 | 2,126 | 5,302 | 6,288 | |
Business | Reportable Segments | Construction Industries | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 378 | 483 | 1,705 | 1,845 | |
Restructuring costs | (22) | (30) | (61) | (257) | |
Consolidated profit before taxes with restructuring costs | 356 | 453 | 1,644 | 1,588 | |
Business | Reportable Segments | Resource Industries | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | (68) | 122 | 17 | 379 | |
Restructuring costs | (40) | (31) | (83) | (52) | |
Consolidated profit before taxes with restructuring costs | (108) | 91 | (66) | 327 | |
Business | Reportable Segments | Energy & Transportation | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 635 | 1,151 | 2,527 | 3,012 | |
Restructuring costs | (10) | (5) | (24) | (11) | |
Consolidated profit before taxes with restructuring costs | 625 | 1,146 | 2,503 | 3,001 | |
Business | Reportable Segments | Financial Products Segment | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 207 | 220 | 618 | 704 | |
Restructuring costs | 0 | 0 | 0 | 0 | |
Consolidated profit before taxes with restructuring costs | 207 | 220 | 618 | 704 | |
Business | All Other operating segments | All Other | |||||
Reconciliation of restructuring and related costs | |||||
Consolidated profit before taxes | 196 | 228 | 638 | 686 | |
Restructuring costs | (16) | (12) | (35) | (18) | |
Consolidated profit before taxes with restructuring costs | $ 180 | $ 216 | $ 603 | $ 668 |
Segment Information (Details 5)
Segment Information (Details 5) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Reconciliation of Assets | ||
Total assets | $ 78,969 | $ 84,681 |
Reportable Segments | ||
Reconciliation of Assets | ||
Total assets | 58,478 | 61,574 |
All Other operating segments | ||
Reconciliation of Assets | ||
Total assets | 2,675 | 2,810 |
Cash and Short Term Investments | ||
Reconciliation of Assets | ||
Total assets | 4,808 | 6,317 |
Intercompany Receivables | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Investment in Financial Products | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Deferred Income Taxes | ||
Reconciliation of Assets | ||
Total assets | 2,852 | 2,953 |
Goodwill and Intangible Assets | ||
Reconciliation of Assets | ||
Total assets | 3,583 | 3,492 |
Property Plant and Equipment-Net and Other Assets | ||
Reconciliation of Assets | ||
Total assets | 1,221 | 1,174 |
Operating Lease Methodology Difference | ||
Reconciliation of Assets | ||
Total assets | (211) | (213) |
Liabilities Included in Segment Assets | ||
Reconciliation of Assets | ||
Total assets | 8,608 | 9,837 |
Inventory Methodology Differences | ||
Reconciliation of Assets | ||
Total assets | (2,629) | (2,697) |
Other | ||
Reconciliation of Assets | ||
Total assets | (416) | (566) |
Consolidating Adjustments | ||
Reconciliation of Assets | ||
Total assets | (6,091) | (6,416) |
Consolidating Adjustments | Reportable Segments | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | All Other operating segments | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | Cash and Short Term Investments | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | Intercompany Receivables | ||
Reconciliation of Assets | ||
Total assets | (1,172) | (1,185) |
Consolidating Adjustments | Investment in Financial Products | ||
Reconciliation of Assets | ||
Total assets | (4,160) | (4,488) |
Consolidating Adjustments | Deferred Income Taxes | ||
Reconciliation of Assets | ||
Total assets | (700) | (674) |
Consolidating Adjustments | Goodwill and Intangible Assets | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | Property Plant and Equipment-Net and Other Assets | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | Operating Lease Methodology Difference | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | Liabilities Included in Segment Assets | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | Inventory Methodology Differences | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Consolidating Adjustments | Other | ||
Reconciliation of Assets | ||
Total assets | (59) | (69) |
Machinery, Energy & Transportation | Reportable Segments | ||
Reconciliation of Assets | ||
Total assets | 23,064 | 24,563 |
Machinery, Energy & Transportation | Business | ||
Reconciliation of Assets | ||
Total assets | 49,646 | 54,188 |
Machinery, Energy & Transportation | Business | Reportable Segments | ||
Reconciliation of Assets | ||
Total assets | 23,064 | 24,563 |
Machinery, Energy & Transportation | Business | All Other operating segments | ||
Reconciliation of Assets | ||
Total assets | 2,675 | 2,810 |
Machinery, Energy & Transportation | Business | Cash and Short Term Investments | ||
Reconciliation of Assets | ||
Total assets | 4,808 | 6,317 |
Machinery, Energy & Transportation | Business | Intercompany Receivables | ||
Reconciliation of Assets | ||
Total assets | 1,172 | 1,185 |
Machinery, Energy & Transportation | Business | Investment in Financial Products | ||
Reconciliation of Assets | ||
Total assets | 4,160 | 4,488 |
Machinery, Energy & Transportation | Business | Deferred Income Taxes | ||
Reconciliation of Assets | ||
Total assets | 3,552 | 3,627 |
Machinery, Energy & Transportation | Business | Goodwill and Intangible Assets | ||
Reconciliation of Assets | ||
Total assets | 3,583 | 3,492 |
Machinery, Energy & Transportation | Business | Property Plant and Equipment-Net and Other Assets | ||
Reconciliation of Assets | ||
Total assets | 1,221 | 1,174 |
Machinery, Energy & Transportation | Business | Operating Lease Methodology Difference | ||
Reconciliation of Assets | ||
Total assets | (211) | (213) |
Machinery, Energy & Transportation | Business | Liabilities Included in Segment Assets | ||
Reconciliation of Assets | ||
Total assets | 8,608 | 9,837 |
Machinery, Energy & Transportation | Business | Inventory Methodology Differences | ||
Reconciliation of Assets | ||
Total assets | (2,629) | (2,697) |
Machinery, Energy & Transportation | Business | Other | ||
Reconciliation of Assets | ||
Total assets | (357) | (395) |
Financial Products | Business | ||
Reconciliation of Assets | ||
Total assets | 35,414 | 36,909 |
Financial Products | Business | Reportable Segments | ||
Reconciliation of Assets | ||
Total assets | 35,414 | 37,011 |
Financial Products | Business | All Other operating segments | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Cash and Short Term Investments | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Intercompany Receivables | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Investment in Financial Products | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Deferred Income Taxes | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Goodwill and Intangible Assets | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Property Plant and Equipment-Net and Other Assets | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Operating Lease Methodology Difference | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Liabilities Included in Segment Assets | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Inventory Methodology Differences | ||
Reconciliation of Assets | ||
Total assets | 0 | 0 |
Financial Products | Business | Other | ||
Reconciliation of Assets | ||
Total assets | $ 0 | $ (102) |
Segment Information (Details 6)
Segment Information (Details 6) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | $ 758 | $ 798 | $ 2,272 | $ 2,368 |
Reportable Segments | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 647 | 695 | 1,956 | 2,056 |
All Other operating segments | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 68 | 70 | 202 | 209 |
Cost Centers | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 39 | 37 | 115 | 111 |
Other | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 4 | (4) | (1) | (8) |
Machinery, Energy & Transportation | Reportable Segments | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 437 | 466 | 1,318 | 1,391 |
Machinery, Energy & Transportation | Business | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 538 | 563 | 1,608 | 1,685 |
Machinery, Energy & Transportation | Business | Reportable Segments | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 437 | 466 | 1,318 | 1,391 |
Machinery, Energy & Transportation | Business | All Other operating segments | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 68 | 70 | 202 | 209 |
Machinery, Energy & Transportation | Business | Cost Centers | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 39 | 37 | 115 | 111 |
Machinery, Energy & Transportation | Business | Other | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | (6) | (10) | (27) | (26) |
Financial Products | Business | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 220 | 235 | 664 | 683 |
Financial Products | Business | Reportable Segments | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 210 | 229 | 638 | 665 |
Financial Products | Business | All Other operating segments | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 0 | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ||||
Reconciliation of Depreciation and amortization | ||||
Total depreciation and amortization | $ 10 | $ 6 | $ 26 | $ 18 |
Segment Information (Details 7)
Segment Information (Details 7) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Capital expenditures | ||||
Total capital expenditures | $ 726 | $ 847 | $ 2,197 | $ 2,382 |
Reportable Segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 639 | 720 | 1,795 | 1,913 |
All Other operating segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 68 | 93 | 159 | 187 |
Cost Centers | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 52 | 17 | 98 | 66 |
Timing | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | (35) | 10 | 199 | 239 |
Other | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 2 | 7 | (54) | (23) |
Consolidating Adjustments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | (4) | (12) | (23) | (46) |
Consolidating Adjustments | Reportable Segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | All Other operating segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Cost Centers | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Timing | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 0 | 0 | 0 | 0 |
Consolidating Adjustments | Other | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | (4) | (12) | (23) | (46) |
Machinery, Energy & Transportation | Reportable Segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 280 | 293 | 800 | 707 |
Machinery, Energy & Transportation | Business | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 336 | 395 | 1,095 | 1,133 |
Machinery, Energy & Transportation | Business | Reportable Segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 280 | 293 | 800 | 707 |
Machinery, Energy & Transportation | Business | All Other operating segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 68 | 93 | 159 | 187 |
Machinery, Energy & Transportation | Business | Cost Centers | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 52 | 17 | 98 | 66 |
Machinery, Energy & Transportation | Business | Timing | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | (35) | 10 | 199 | 239 |
Machinery, Energy & Transportation | Business | Other | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | (29) | (18) | (161) | (66) |
Financial Products | Business | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 394 | 464 | 1,125 | 1,295 |
Financial Products | Business | Reportable Segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 359 | 427 | 995 | 1,206 |
Financial Products | Business | All Other operating segments | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 0 | 0 | 0 | 0 |
Financial Products | Business | Cost Centers | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 0 | 0 | 0 | 0 |
Financial Products | Business | Timing | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | 0 | 0 | 0 | 0 |
Financial Products | Business | Other | ||||
Reconciliation of Capital expenditures | ||||
Total capital expenditures | $ 35 | $ 37 | $ 130 | $ 89 |
Cat Financial Financing Activ76
Cat Financial Financing Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Receivables [Abstract] | |||||
Period after which collection of future income is considered as not probable (in days) | 120 days | ||||
Customer | |||||
Impaired finance receivables | |||||
Recorded Investment With No Allowance Recorded | $ 333 | $ 333 | $ 251 | ||
Unpaid Principal Balance With No Allowance Recorded | 331 | 331 | 249 | ||
Related Allowance With No Allowance Recorded | 0 | 0 | 0 | ||
Recorded Investment With An Allowance Recorded | 220 | 220 | 362 | ||
Unpaid Principal Balance With An Allowance Recorded | 218 | 218 | 360 | ||
Related Allowance With An Allowance Recorded | 78 | 78 | 75 | ||
Recorded Investment, Total | 553 | 553 | 613 | ||
Unpaid Principal Balance, Total | 549 | 549 | 609 | ||
Related Allowance, Total | 78 | 78 | 75 | ||
Average Recorded Investment With No Allowance Recorded | 314 | $ 275 | 326 | $ 358 | |
Interest Income Recognized With No Allowance Recorded | 2 | 2 | 7 | 9 | |
Average Recorded Investment With An Allowance Recorded | 269 | 314 | 286 | 232 | |
Interest Income Recognized With An Allowance Recorded | 3 | 5 | 8 | 9 | |
Average Recorded Investment, Total | 583 | 589 | 612 | 590 | |
Interest Income Recognized, Total | 5 | 7 | 15 | 18 | |
Customer | North America | |||||
Impaired finance receivables | |||||
Recorded Investment With No Allowance Recorded | 10 | 10 | 14 | ||
Unpaid Principal Balance With No Allowance Recorded | 10 | 10 | 14 | ||
Related Allowance With No Allowance Recorded | 0 | 0 | 0 | ||
Recorded Investment With An Allowance Recorded | 13 | 13 | 6 | ||
Unpaid Principal Balance With An Allowance Recorded | 13 | 13 | 6 | ||
Related Allowance With An Allowance Recorded | 3 | 3 | 1 | ||
Recorded Investment, Total | 23 | 23 | 20 | ||
Unpaid Principal Balance, Total | 23 | 23 | 20 | ||
Related Allowance, Total | 3 | 3 | 1 | ||
Average Recorded Investment With No Allowance Recorded | 10 | 19 | 12 | 22 | |
Interest Income Recognized With No Allowance Recorded | 1 | 0 | 1 | 1 | |
Average Recorded Investment With An Allowance Recorded | 10 | 10 | 7 | 10 | |
Interest Income Recognized With An Allowance Recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, Total | 20 | 29 | 19 | 32 | |
Interest Income Recognized, Total | 1 | 0 | 1 | 1 | |
Customer | Europe | |||||
Impaired finance receivables | |||||
Recorded Investment With No Allowance Recorded | 43 | 43 | 44 | ||
Unpaid Principal Balance With No Allowance Recorded | 42 | 42 | 43 | ||
Related Allowance With No Allowance Recorded | 0 | 0 | 0 | ||
Recorded Investment With An Allowance Recorded | 9 | 9 | 12 | ||
Unpaid Principal Balance With An Allowance Recorded | 8 | 8 | 12 | ||
Related Allowance With An Allowance Recorded | 4 | 4 | 4 | ||
Recorded Investment, Total | 52 | 52 | 56 | ||
Unpaid Principal Balance, Total | 50 | 50 | 55 | ||
Related Allowance, Total | 4 | 4 | 4 | ||
Average Recorded Investment With No Allowance Recorded | 43 | 47 | 43 | 47 | |
Interest Income Recognized With No Allowance Recorded | 0 | 1 | 0 | 1 | |
Average Recorded Investment With An Allowance Recorded | 15 | 24 | 15 | 21 | |
Interest Income Recognized With An Allowance Recorded | 0 | 1 | 1 | 1 | |
Average Recorded Investment, Total | 58 | 71 | 58 | 68 | |
Interest Income Recognized, Total | 0 | 2 | 1 | 2 | |
Customer | Asia Pacific | |||||
Impaired finance receivables | |||||
Recorded Investment With No Allowance Recorded | 2 | 2 | 1 | ||
Unpaid Principal Balance With No Allowance Recorded | 1 | 1 | 1 | ||
Related Allowance With No Allowance Recorded | 0 | 0 | 0 | ||
Recorded Investment With An Allowance Recorded | 36 | 36 | 29 | ||
Unpaid Principal Balance With An Allowance Recorded | 36 | 36 | 29 | ||
Related Allowance With An Allowance Recorded | 5 | 5 | 8 | ||
Recorded Investment, Total | 38 | 38 | 30 | ||
Unpaid Principal Balance, Total | 37 | 37 | 30 | ||
Related Allowance, Total | 5 | 5 | 8 | ||
Average Recorded Investment With No Allowance Recorded | 1 | 0 | 2 | 4 | |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment With An Allowance Recorded | 41 | 26 | 33 | 18 | |
Interest Income Recognized With An Allowance Recorded | 0 | 0 | 1 | 1 | |
Average Recorded Investment, Total | 42 | 26 | 35 | 22 | |
Interest Income Recognized, Total | 0 | 0 | 1 | 1 | |
Customer | Mining | |||||
Impaired finance receivables | |||||
Recorded Investment With No Allowance Recorded | 56 | 56 | 29 | ||
Unpaid Principal Balance With No Allowance Recorded | 56 | 56 | 29 | ||
Related Allowance With No Allowance Recorded | 0 | 0 | 0 | ||
Recorded Investment With An Allowance Recorded | 13 | 13 | 138 | ||
Unpaid Principal Balance With An Allowance Recorded | 13 | 13 | 137 | ||
Related Allowance With An Allowance Recorded | 5 | 5 | 9 | ||
Recorded Investment, Total | 69 | 69 | 167 | ||
Unpaid Principal Balance, Total | 69 | 69 | 166 | ||
Related Allowance, Total | 5 | 5 | 9 | ||
Average Recorded Investment With No Allowance Recorded | 63 | 29 | 80 | 82 | |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 3 | 3 | |
Average Recorded Investment With An Allowance Recorded | 9 | 127 | 47 | 75 | |
Interest Income Recognized With An Allowance Recorded | 0 | 2 | 1 | 4 | |
Average Recorded Investment, Total | 72 | 156 | 127 | 157 | |
Interest Income Recognized, Total | 0 | 2 | 4 | 7 | |
Customer | Latin America | |||||
Impaired finance receivables | |||||
Recorded Investment With No Allowance Recorded | 31 | 31 | 34 | ||
Unpaid Principal Balance With No Allowance Recorded | 31 | 31 | 34 | ||
Related Allowance With No Allowance Recorded | 0 | 0 | 0 | ||
Recorded Investment With An Allowance Recorded | 60 | 60 | 42 | ||
Unpaid Principal Balance With An Allowance Recorded | 60 | 60 | 42 | ||
Related Allowance With An Allowance Recorded | 22 | 22 | 12 | ||
Recorded Investment, Total | 91 | 91 | 76 | ||
Unpaid Principal Balance, Total | 91 | 91 | 76 | ||
Related Allowance, Total | 22 | 22 | 12 | ||
Average Recorded Investment With No Allowance Recorded | 32 | 37 | 32 | 29 | |
Interest Income Recognized With No Allowance Recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment With An Allowance Recorded | 69 | 27 | 56 | 24 | |
Interest Income Recognized With An Allowance Recorded | 1 | 1 | 2 | 1 | |
Average Recorded Investment, Total | 101 | 64 | 88 | 53 | |
Interest Income Recognized, Total | 1 | 1 | 2 | 1 | |
Customer | Caterpillar Power Finance | |||||
Impaired finance receivables | |||||
Recorded Investment With No Allowance Recorded | 191 | 191 | 129 | ||
Unpaid Principal Balance With No Allowance Recorded | 191 | 191 | 128 | ||
Related Allowance With No Allowance Recorded | 0 | 0 | 0 | ||
Recorded Investment With An Allowance Recorded | 89 | 89 | 135 | ||
Unpaid Principal Balance With An Allowance Recorded | 88 | 88 | 134 | ||
Related Allowance With An Allowance Recorded | 39 | 39 | 41 | ||
Recorded Investment, Total | 280 | 280 | 264 | ||
Unpaid Principal Balance, Total | 279 | 279 | 262 | ||
Related Allowance, Total | 39 | 39 | 41 | ||
Average Recorded Investment With No Allowance Recorded | 165 | 143 | 157 | 174 | |
Interest Income Recognized With No Allowance Recorded | 1 | 1 | 3 | 4 | |
Average Recorded Investment With An Allowance Recorded | 125 | 100 | 128 | 84 | |
Interest Income Recognized With An Allowance Recorded | 2 | 1 | 3 | 2 | |
Average Recorded Investment, Total | 290 | 243 | 285 | 258 | |
Interest Income Recognized, Total | 3 | 2 | 6 | 6 | |
Dealer | |||||
Impaired finance receivables | |||||
Recorded Investment, Total | 0 | 0 | $ 0 | ||
Average Recorded Investment, Total | $ 0 | $ 0 | $ 0 | $ 0 |
Cat Financial Financing Activ77
Cat Financial Financing Activities (Details 2) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Period after which Unpaid Installments are Considered as Past Due (in days) | 30 days | |
Period after which collection of future income is considered as not probable (in days) | 120 days | |
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | $ 701 | $ 651 |
Current | 22,038 | 23,415 |
Total Finance Receivables | 22,739 | 24,066 |
91+ Still Accruing | 27 | 35 |
FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 186 | 175 |
FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 95 | 80 |
FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 420 | 396 |
North America | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 9,938 | 9,462 |
Europe | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 2,636 | 2,828 |
Asia Pacific | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 2,372 | 3,002 |
Mining | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 1,852 | 2,123 |
Latin America | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 2,766 | 3,503 |
Caterpillar Power Finance | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 3,175 | 3,148 |
Customer | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 19,216 | 20,512 |
Investment in loans and finance leases on non-accrual status | 608 | 468 |
Customer | North America | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 93 | 81 |
Current | 7,562 | 7,192 |
Total Finance Receivables | 7,655 | 7,273 |
91+ Still Accruing | 4 | 4 |
Investment in loans and finance leases on non-accrual status | 30 | 27 |
Customer | North America | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 46 | 46 |
Customer | North America | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 18 | 8 |
Customer | North America | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 29 | 27 |
Customer | Europe | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 88 | 68 |
Current | 2,399 | 2,607 |
Total Finance Receivables | 2,487 | 2,675 |
91+ Still Accruing | 7 | 6 |
Investment in loans and finance leases on non-accrual status | 46 | 28 |
Customer | Europe | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 29 | 16 |
Customer | Europe | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 11 | 23 |
Customer | Europe | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 48 | 29 |
Customer | Asia Pacific | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 102 | 120 |
Current | 1,745 | 2,316 |
Total Finance Receivables | 1,847 | 2,436 |
91+ Still Accruing | 10 | 16 |
Investment in loans and finance leases on non-accrual status | 25 | 54 |
Customer | Asia Pacific | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 45 | 29 |
Customer | Asia Pacific | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 23 | 22 |
Customer | Asia Pacific | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 34 | 69 |
Customer | Mining | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 77 | 39 |
Current | 1,771 | 2,084 |
Total Finance Receivables | 1,848 | 2,123 |
91+ Still Accruing | 0 | 0 |
Investment in loans and finance leases on non-accrual status | 133 | 62 |
Customer | Mining | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 18 | 28 |
Customer | Mining | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 1 | 0 |
Customer | Mining | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 58 | 11 |
Customer | Latin America | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 288 | 274 |
Current | 1,919 | 2,583 |
Total Finance Receivables | 2,207 | 2,857 |
91+ Still Accruing | 0 | 8 |
Investment in loans and finance leases on non-accrual status | 260 | 201 |
Customer | Latin America | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 42 | 55 |
Customer | Latin America | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 42 | 23 |
Customer | Latin America | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 204 | 196 |
Customer | Caterpillar Power Finance | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 53 | 69 |
Current | 3,119 | 3,079 |
Total Finance Receivables | 3,172 | 3,148 |
91+ Still Accruing | 6 | 1 |
Investment in loans and finance leases on non-accrual status | 114 | 96 |
Customer | Caterpillar Power Finance | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 6 | 1 |
Customer | Caterpillar Power Finance | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 4 |
Customer | Caterpillar Power Finance | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 47 | 64 |
Dealer | ||
Aging related to loans and finance leases | ||
Total Finance Receivables | 3,523 | 3,554 |
Investment in loans and finance leases on non-accrual status | 0 | 0 |
Dealer | North America | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Current | 2,283 | 2,189 |
Total Finance Receivables | 2,283 | 2,189 |
91+ Still Accruing | 0 | 0 |
Dealer | North America | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | North America | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | North America | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Europe | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Current | 149 | 153 |
Total Finance Receivables | 149 | 153 |
91+ Still Accruing | 0 | 0 |
Dealer | Europe | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Europe | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Europe | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Asia Pacific | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Current | 525 | 566 |
Total Finance Receivables | 525 | 566 |
91+ Still Accruing | 0 | 0 |
Dealer | Asia Pacific | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Asia Pacific | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Asia Pacific | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Mining | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Current | 4 | 0 |
Total Finance Receivables | 4 | 0 |
91+ Still Accruing | 0 | 0 |
Dealer | Mining | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Mining | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Mining | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Latin America | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Current | 559 | 646 |
Total Finance Receivables | 559 | 646 |
91+ Still Accruing | 0 | 0 |
Dealer | Latin America | FinancingReceivables31to60DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Latin America | FinancingReceivables61to90DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Latin America | FinancingReceivablesEqualtoGreaterthan91DaysPastDue [Member] | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Dealer | Caterpillar Power Finance | ||
Aging related to loans and finance leases | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Current | 3 | 0 |
Total Finance Receivables | $ 3 | $ 0 |
Cat Financial Financing Activ78
Cat Financial Financing Activities (Details 3) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Allowance for Credit Loss Activity | ||||
Balance at beginning of year | $ 398 | $ 375 | ||
Receivables written off | (151) | (151) | ||
Recoveries on receivables previously written off | 32 | 47 | ||
Provision for credit losses | 88 | 150 | ||
Other | (22) | (23) | ||
Balance at end of period | 345 | 398 | ||
Allowance for Credit Losses | ||||
Individually evaluated for impairment | $ 78 | $ 75 | ||
Collectively evaluated for impairment | 267 | 323 | ||
Ending Balance | 398 | 375 | 345 | 398 |
Recorded Investment in Finance Receivables | ||||
Individually evaluated for impairment | 553 | 613 | ||
Collectively evaluated for impairment | 22,186 | 23,453 | ||
Ending balance-recorded investment in finance receivables | 22,739 | 24,066 | ||
Customer | ||||
Allowance for Credit Loss Activity | ||||
Balance at beginning of year | 388 | 365 | ||
Receivables written off | (151) | (151) | ||
Recoveries on receivables previously written off | 32 | 47 | ||
Provision for credit losses | 89 | 150 | ||
Other | (22) | (23) | ||
Balance at end of period | 336 | 388 | ||
Allowance for Credit Losses | ||||
Individually evaluated for impairment | 78 | 75 | ||
Collectively evaluated for impairment | 258 | 313 | ||
Ending Balance | 388 | 365 | 336 | 388 |
Recorded Investment in Finance Receivables | ||||
Individually evaluated for impairment | 553 | 613 | ||
Collectively evaluated for impairment | 18,663 | 19,899 | ||
Ending balance-recorded investment in finance receivables | 19,216 | 20,512 | ||
Dealer | ||||
Allowance for Credit Loss Activity | ||||
Balance at beginning of year | 10 | 10 | ||
Receivables written off | 0 | 0 | ||
Recoveries on receivables previously written off | 0 | 0 | ||
Provision for credit losses | (1) | 0 | ||
Other | 0 | 0 | ||
Balance at end of period | 9 | 10 | ||
Allowance for Credit Losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 9 | 10 | ||
Ending Balance | $ 10 | $ 10 | 9 | 10 |
Recorded Investment in Finance Receivables | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 3,523 | 3,554 | ||
Ending balance-recorded investment in finance receivables | $ 3,523 | $ 3,554 |
Cat Financial Financing Activ79
Cat Financial Financing Activities (Details 4) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Period after which finance receivables are considered non-performing (in days) | 120 days | |
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | $ 22,739 | $ 24,066 |
Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 22,131 | 23,598 |
Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 608 | 468 |
North America | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 9,938 | 9,462 |
North America | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 9,908 | 9,435 |
North America | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 30 | 27 |
Europe | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,636 | 2,828 |
Europe | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,590 | 2,800 |
Europe | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 46 | 28 |
Asia Pacific | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,372 | 3,002 |
Asia Pacific | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,347 | 2,948 |
Asia Pacific | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 25 | 54 |
Mining | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 1,852 | 2,123 |
Mining | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 1,719 | 2,061 |
Mining | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 133 | 62 |
Latin America | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,766 | 3,503 |
Latin America | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,506 | 3,302 |
Latin America | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 260 | 201 |
Caterpillar Power Finance | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3,175 | 3,148 |
Caterpillar Power Finance | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3,061 | 3,052 |
Caterpillar Power Finance | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 114 | 96 |
Dealer | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3,523 | 3,554 |
Dealer | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3,523 | 3,554 |
Dealer | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | North America | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,283 | 2,189 |
Dealer | North America | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,283 | 2,189 |
Dealer | North America | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | Europe | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 149 | 153 |
Dealer | Europe | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 149 | 153 |
Dealer | Europe | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | Asia Pacific | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 525 | 566 |
Dealer | Asia Pacific | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 525 | 566 |
Dealer | Asia Pacific | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | Mining | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 4 | 0 |
Dealer | Mining | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 4 | 0 |
Dealer | Mining | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | Latin America | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 559 | 646 |
Dealer | Latin America | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 559 | 646 |
Dealer | Latin America | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 0 | 0 |
Dealer | Caterpillar Power Finance | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3 | 0 |
Dealer | Caterpillar Power Finance | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3 | 0 |
Dealer | Caterpillar Power Finance | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 0 | 0 |
Customer | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 19,216 | 20,512 |
Customer | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 18,608 | 20,044 |
Customer | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 608 | 468 |
Customer | North America | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 7,655 | 7,273 |
Customer | North America | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 7,625 | 7,246 |
Customer | North America | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 30 | 27 |
Customer | Europe | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,487 | 2,675 |
Customer | Europe | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,441 | 2,647 |
Customer | Europe | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 46 | 28 |
Customer | Asia Pacific | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 1,847 | 2,436 |
Customer | Asia Pacific | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 1,822 | 2,382 |
Customer | Asia Pacific | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 25 | 54 |
Customer | Mining | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 1,848 | 2,123 |
Customer | Mining | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 1,715 | 2,061 |
Customer | Mining | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 133 | 62 |
Customer | Latin America | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 2,207 | 2,857 |
Customer | Latin America | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 1,947 | 2,656 |
Customer | Latin America | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 260 | 201 |
Customer | Caterpillar Power Finance | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3,172 | 3,148 |
Customer | Caterpillar Power Finance | Performing | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | 3,058 | 3,052 |
Customer | Caterpillar Power Finance | Nonperforming | ||
Finance Receivables | ||
Ending balance-recorded investment in finance receivables | $ 114 | $ 96 |
Cat Financial Financing Activ80
Cat Financial Financing Activities (Details 5) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)Contracts | Sep. 30, 2014USD ($)Contracts | Sep. 30, 2015USD ($)Contracts | Sep. 30, 2014USD ($)Contracts | Dec. 31, 2014USD ($) | |
Customer | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 31 | 117 | 76 | 139 | |
Pre-TDR Outstanding Recorded Investment | $ 110 | $ 178 | $ 217 | $ 295 | |
Post-TDR Outstanding Recorded Investment | $ 96 | $ 176 | $ 200 | $ 281 | |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||||
Number of Contracts (in contracts) | Contracts | 5 | 8 | 11 | 22 | |
Post-TDR Recorded Investment | $ 0 | $ 1 | $ 1 | $ 3 | |
Customer | North America | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 6 | 20 | 10 | 24 | |
Pre-TDR Outstanding Recorded Investment | $ 0 | $ 9 | $ 1 | $ 11 | |
Post-TDR Outstanding Recorded Investment | $ 0 | $ 3 | $ 1 | $ 5 | |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||||
Number of Contracts (in contracts) | Contracts | 5 | 3 | 10 | 10 | |
Post-TDR Recorded Investment | $ 0 | $ 0 | $ 1 | $ 1 | |
Customer | Europe | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 4 | 0 | 23 | 8 | |
Pre-TDR Outstanding Recorded Investment | $ 0 | $ 0 | $ 2 | $ 7 | |
Post-TDR Outstanding Recorded Investment | $ 0 | $ 0 | $ 2 | $ 7 | |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||||
Number of Contracts (in contracts) | Contracts | 0 | 5 | 0 | 12 | |
Post-TDR Recorded Investment | $ 0 | $ 1 | $ 0 | $ 2 | |
Customer | Asia Pacific | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 1 | 0 | 19 | 0 | |
Pre-TDR Outstanding Recorded Investment | $ 1 | $ 0 | $ 1 | $ 0 | |
Post-TDR Outstanding Recorded Investment | $ 1 | $ 0 | $ 1 | $ 0 | |
Customer | Mining | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 2 | 45 | 2 | 47 | |
Pre-TDR Outstanding Recorded Investment | $ 15 | $ 122 | $ 15 | $ 165 | |
Post-TDR Outstanding Recorded Investment | $ 14 | $ 124 | $ 14 | $ 157 | |
Customer | Latin America | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 10 | 45 | 10 | 47 | |
Pre-TDR Outstanding Recorded Investment | $ 1 | $ 3 | $ 1 | $ 32 | |
Post-TDR Outstanding Recorded Investment | $ 2 | $ 3 | $ 2 | $ 31 | |
TDRs with a payment default which had been modified within twelve months prior to the default date | |||||
Number of Contracts (in contracts) | Contracts | 1 | 0 | |||
Post-TDR Recorded Investment | $ 0 | $ 0 | |||
Customer | Caterpillar Power Finance | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 8 | 7 | 12 | 13 | |
Pre-TDR Outstanding Recorded Investment | $ 93 | $ 44 | $ 197 | $ 80 | |
Post-TDR Outstanding Recorded Investment | $ 79 | $ 46 | 180 | $ 81 | |
Additional funds loaned not recorded as TDRs | $ 0 | ||||
Dealer | |||||
Finance receivables modified as TDRs | |||||
Number of Contracts (in contracts) | Contracts | 0 | 0 | 0 | 0 | |
Finance Receivable [Member] | Customer | |||||
Finance receivables modified as TDRs | |||||
Remaining Commitments | $ 0 | $ 0 | |||
Finance Receivable [Member] | Dealer | |||||
Finance receivables modified as TDRs | |||||
Remaining Commitments | $ 0 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Available-for-sale securities | $ 1,563 | $ 1,554 |
Recurring basis | ||
Assets | ||
Available-for-sale securities | 1,563 | 1,554 |
Derivative Asset, at Fair Value, Net | 45 | |
Total Assets | 1,608 | 1,554 |
Liabilities | ||
Derivative Liabilities, at Fair Value, Net | 86 | |
Total Liabilities | 86 | |
U.S. treasury bonds | ||
Assets | ||
Available-for-sale securities | 13 | 10 |
U.S. treasury bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 13 | 10 |
Other U.S. and non-U.S. government bonds | ||
Assets | ||
Available-for-sale securities | 83 | 94 |
Other U.S. and non-U.S. government bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 83 | 94 |
Corporate bonds | ||
Assets | ||
Available-for-sale securities | 713 | 693 |
Corporate bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 713 | 693 |
Asset-backed securities | ||
Assets | ||
Available-for-sale securities | 97 | 105 |
Asset-backed securities | Recurring basis | ||
Assets | ||
Available-for-sale securities | 97 | 105 |
U.S. governmental agency | Recurring basis | ||
Assets | ||
Available-for-sale securities | 274 | 294 |
Residential | ||
Assets | ||
Available-for-sale securities | 13 | 15 |
Residential | Recurring basis | ||
Assets | ||
Available-for-sale securities | 13 | 15 |
Commercial | ||
Assets | ||
Available-for-sale securities | 62 | 67 |
Commercial | Recurring basis | ||
Assets | ||
Available-for-sale securities | 62 | 67 |
Large capitalization value | ||
Assets | ||
Available-for-sale securities | 250 | 233 |
Large capitalization value | Recurring basis | ||
Assets | ||
Available-for-sale securities | 250 | 233 |
REIT | ||
Assets | ||
Available-for-sale securities | 8 | 0 |
REIT | Recurring basis | ||
Assets | ||
Available-for-sale securities | 8 | |
Smaller company growth | ||
Assets | ||
Available-for-sale securities | 50 | 43 |
Smaller company growth | Recurring basis | ||
Assets | ||
Available-for-sale securities | 50 | 43 |
Level 1 | Recurring basis | ||
Assets | ||
Available-for-sale securities | 313 | 286 |
Derivative Asset, at Fair Value, Net | 0 | |
Total Assets | 313 | 286 |
Liabilities | ||
Derivative Liabilities, at Fair Value, Net | 0 | |
Total Liabilities | 0 | |
Level 1 | U.S. treasury bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 13 | 10 |
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Corporate bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Asset-backed securities | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 1 | U.S. governmental agency | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Residential | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Commercial | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Large capitalization value | Recurring basis | ||
Assets | ||
Available-for-sale securities | 250 | 233 |
Level 1 | REIT | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | |
Level 1 | Smaller company growth | Recurring basis | ||
Assets | ||
Available-for-sale securities | 50 | 43 |
Level 2 | Recurring basis | ||
Assets | ||
Available-for-sale securities | 1,242 | 1,268 |
Derivative Asset, at Fair Value, Net | 45 | |
Total Assets | 1,287 | 1,268 |
Liabilities | ||
Derivative Liabilities, at Fair Value, Net | 86 | |
Total Liabilities | 86 | |
Level 2 | U.S. treasury bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 83 | 94 |
Level 2 | Corporate bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 713 | 693 |
Level 2 | Asset-backed securities | Recurring basis | ||
Assets | ||
Available-for-sale securities | 97 | 105 |
Level 2 | U.S. governmental agency | Recurring basis | ||
Assets | ||
Available-for-sale securities | 274 | 294 |
Level 2 | Residential | Recurring basis | ||
Assets | ||
Available-for-sale securities | 13 | 15 |
Level 2 | Commercial | Recurring basis | ||
Assets | ||
Available-for-sale securities | 62 | 67 |
Level 2 | Large capitalization value | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 2 | REIT | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | |
Level 2 | Smaller company growth | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Recurring basis | ||
Assets | ||
Available-for-sale securities | 8 | 0 |
Derivative Asset, at Fair Value, Net | 0 | |
Total Assets | 8 | 0 |
Liabilities | ||
Derivative Liabilities, at Fair Value, Net | 0 | |
Total Liabilities | 0 | |
Level 3 | U.S. treasury bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Corporate bonds | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Asset-backed securities | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | U.S. governmental agency | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Residential | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Commercial | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Large capitalization value | Recurring basis | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Level 3 | REIT | Recurring basis | ||
Assets | ||
Available-for-sale securities | 8 | |
Level 3 | Smaller company growth | Recurring basis | ||
Assets | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair Value Disclosures (Detai82
Fair Value Disclosures (Details 2) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Level 2 | Financial Products | Nonrecurring basis | ||
Fair value of impaired loans | ||
Impaired loans | $ 94 | $ 248 |
Level 3 | REIT | Recurring basis | ||
Roll-forward of assets measured at fair value using Level 3 inputs | ||
Balance at beginning of period | 0 | |
Purchases of securities | 8 | |
Sale of securities | 0 | |
Gains (losses) included in Accumulated other comprehensive income (loss) | 0 | |
Balance at end of period | $ 8 |
Fair Value Disclosures (Detai83
Fair Value Disclosures (Details 3) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and short-term investments | $ 6,046 | $ 7,341 | $ 6,082 | $ 6,081 |
Available-for-sale securities | 1,563 | 1,554 | ||
Carrying Amount | ||||
Assets | ||||
Cash and short-term investments | 6,046 | 7,341 | ||
Restricted cash and short-term investments | 44 | 62 | ||
Available-for-sale securities | 1,563 | 1,554 | ||
Finance receivables-net (excluding finance leases) | 16,153 | 16,426 | ||
Wholesale inventory receivables-net (excluding finance leases) | 1,885 | 1,774 | ||
Interest rate swaps-net | 62 | 71 | ||
Liabilities | ||||
Short-term borrowings | 6,080 | 4,708 | ||
Foreign currency contracts-net | 5 | 143 | ||
Commodity contracts-net | 12 | 14 | ||
Guarantees | 13 | 12 | ||
Carrying Amount | Machinery, Energy & Transportation | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 9,513 | 10,003 | ||
Carrying Amount | Financial Products | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 21,950 | 24,574 | ||
Carrying amount of assets excluded from measurement at fair value | ||||
Assets | ||||
Finance leases | 6,670 | 7,638 | ||
Level 1 | Fair Value | ||||
Assets | ||||
Cash and short-term investments | 6,046 | 7,341 | ||
Restricted cash and short-term investments | 44 | 62 | ||
Liabilities | ||||
Short-term borrowings | 6,080 | 4,708 | ||
Level 1, 2 & 3 | Fair Value | ||||
Assets | ||||
Available-for-sale securities | 1,563 | 1,554 | ||
Level 2 | Fair Value | ||||
Assets | ||||
Interest rate swaps-net | 62 | 71 | ||
Liabilities | ||||
Foreign currency contracts-net | 5 | 143 | ||
Commodity contracts-net | 12 | 14 | ||
Level 2 | Fair Value | Machinery, Energy & Transportation | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 10,838 | 11,973 | ||
Level 2 | Fair Value | Financial Products | ||||
Liabilities | ||||
Long-term debt (including amounts due within one year) | 22,311 | 25,103 | ||
Level 3 | Fair Value | ||||
Assets | ||||
Finance receivables-net (excluding finance leases) | 15,995 | 16,159 | ||
Wholesale inventory receivables-net (excluding finance leases) | 1,816 | 1,700 | ||
Liabilities | ||||
Guarantees | $ 13 | $ 12 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Acquisitions | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 140 | $ 18 | |
Goodwill | $ 6,546 | $ 6,694 |
Divestitures (Details)
Divestitures (Details) - Third party logistics business, investment $ in Millions | 1 Months Ended |
Feb. 28, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of equity interest sold | 35.00% |
Sale price of investment | $ 177 |
Cash proceeds from sale | 167 |
Note receivable from sale | 10 |
Realized gain on disposal | 120 |
Carrying value of noncontrolling interest | $ 57 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Restructuring and Related Cost [Abstract] | |||||
Restructuring costs total | $ 89 | $ 81 | $ 214 | $ 344 | $ 441 |
Employee separation costs | 60 | 46 | 180 | 295 | 382 |
Long-lived asset impairments and other restructuring costs | 29 | 35 | 34 | 49 | |
Long-lived asset impairments | 33 | ||||
Other restructuring costs | 26 | ||||
Estimated cash separation costs | 800 | 800 | |||
Employee Separation Charges [Roll Forward] | |||||
Liability balance at beginning of period | 182 | 89 | 89 | ||
Increase in liability (separation charges) | 60 | $ 46 | 180 | $ 295 | 382 |
Reduction in liability (payments and other adjustments) | (197) | (289) | |||
Liability balance at end of period | 165 | 165 | 182 | ||
Gosselies, Belgium facility | |||||
Restructuring and Related Cost [Abstract] | |||||
Employee separation costs | 0 | 24 | 273 | ||
Employee Separation Charges [Roll Forward] | |||||
Increase in liability (separation charges) | 0 | 24 | $ 273 | ||
Liability balance at end of period | 49 | 49 | |||
Special termination benefits | |||||
Restructuring and Related Cost [Abstract] | |||||
Estimated cash separation costs | $ 400 | $ 400 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Subsequent Event [Line Items] | |||||
Amount of common stock agreed to repurchase | $ 1,500 | $ 2,500 | $ 1,700 | $ 2,025 | $ 4,238 |
Immediate delivery of stock (in shares) | 19,600,000 | 23,700,000 | 18,110,735 | 25,841,608 | 41,762,325 |