Caterpillar (CAT) 10-K 16 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Document And Entity Information1
Entity Registrant Name	CATERPILLAR INC
Entity Central Index Key	18,230
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$ 51
Entity Common Stock, Shares Outstanding	582,321,890
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

Consolidated Results of Operati

Consolidated Results of Operations - USD ($) shares in Millions, $ in Millions		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Sales and revenues:
Sales of Machinery, Energy & Transportation		$ 44,147	$ 52,142	$ 52,694
Revenues of Financial Products		2,864	3,042	2,962
Total sales and revenues		47,011	55,184	55,656
Operating costs:
Cost of goods sold		33,742	39,767	40,727
Selling, general and administrative expenses		5,199	5,697	5,547
Research and development expenses		2,165	2,135	2,046
Interest expense of Financial Products		587	624	727
Goodwill impairment charge		0	0	0
Other operating (income) expenses		2,062	1,633	981
Total operating costs		43,755	49,856	50,028
Operating profit		3,256	5,328	5,628
Interest expense excluding Financial Products		507	484	465
Other income (expense)		106	239	(35)
Consolidated profit before taxes		2,855	5,083	5,128
Provision (benefit) for income taxes		742	1,380	1,319
Profit of consolidated companies		2,113	3,703	3,809
Equity in profit (loss) of unconsolidated affiliated companies		0	8	(6)
Profit of consolidated and affiliated companies		2,113	3,711	3,803
Less: Profit (loss) attributable to noncontrolling interests		11	16	14
Profit	[1]	$ 2,102	$ 3,695	$ 3,789
Profit per common share (in dollars per share)		$ 3.54	$ 5.99	$ 5.87
Profit per common share - diluted (in dollars per share)	[2]	$ 3.50	$ 5.88	$ 5.75
Weighted-average common shares outstanding (millions)
Basic (in shares)		594.3	617.2	645.2
Diluted (in shares)	[2]	601.3	628.9	658.6
Cash dividends declared per common share (in dollars per share)		$ 3.01	$ 2.70	$ 2.32
[1]	1 Profit attributable to common stockholders.
[2]	2 Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method.

Consolidated Comprehensive Inco

Consolidated Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Profit of consolidated and affiliated companies	$ 2,113	$ 3,711	$ 3,803
Other comprehensive income (loss), Net of Tax:
Foreign currency translation, net of tax (provision)/benefit of: 2015 - $(82); 2014 - $(78); 2013 - $57	(977)	(1,164)	(277)
Pension and other postretirement benefits:
Current year actuarial gain (loss), net of tax (provision)/benefit of: 2015 - $19; 2014 - $838; 2013 - $(1,232)	(10)	(1,578)	2,277
Amortization of actuarial (gain) loss, net of tax (provision)/benefit of: 2015 - $(217); 2014 - $(175); 2013 - $(265)	424	344	516
Current year prior service credit (cost), net of tax (provision)/benefit of: 2015 - $5; 2014 - $(2); 2013 - $(2)	(3)	4	3
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2015 - $18; 2014 - $13; 2013 - $19	(35)	(25)	(35)
Amortization of transition (asset) obligation, net of tax (provision)/benefit of: 2015 - $0; 2014 - $0; 2013 - $(1)	0	0	1
Derivative financial instruments:
Gains (losses) deferred, net of tax (provision)/benefit of: 2015 - $11; 2014 - $69; 2013 - $2	(19)	(118)	(4)
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2015 - $(51); 2014 - $(2); 2013 - $(25)	88	4	41
Available-for-sale securities:
Gains (losses) deferred, net of tax (provision)/benefit of: 2015 - $9; 2014 - $(12); 2013 - $(15)	(10)	24	29
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2015 - $20 2014 - $11; 2013 - $6	(36)	(24)	(13)
Total other comprehensive income (loss), net of tax	(578)	(2,533)	2,538
Comprehensive income	1,535	1,178	6,341
Less: comprehensive income attributable to the noncontrolling interests	1	(16)	(17)
Comprehensive income attributable to stockholders	$ 1,536	$ 1,162	$ 6,324

Consolidated Comprehensive Inc4

Consolidated Comprehensive Income (Parenthetical) (Parentheticals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax (provision)/benefit	$ (82)	$ (78)	$ 57
Pension and other postretirement benefits, Current year actuarial gain (loss), tax (provision)/benefit	19	838	(1,232)
Pension and other postretirement benefits, Amortization of actuarial (gain) loss, tax (provision)/benefit	(217)	(175)	(265)
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit	5	(2)	(2)
Pension and other postretirement benefits, Amortization of prior service (credit) cost, tax (provision)/benefit	18	13	19
Pension and other postretirement benefits, Amortization of transition (asset) obligation, tax (provision)/benefit	0	0	(1)
Derivative financial instruments, Gains (losses) deferred, tax (provision)/benefit	11	69	2
Derivative financial instruments, (Gains) losses reclassified to earnings, tax (provision)/benefit	(51)	(2)	(25)
Available-for-sale securities, Gains (losses) deferred, tax (provision)/benefit	9	(12)	(15)
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit	$ 20	$ 11	$ 6

Consolidated Financial Position

Consolidated Financial Position - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and short-term investments	$ 6,460	$ 7,341
Receivables - trade and other	6,695	7,737
Receivables - finance	8,991	9,027
Deferred and refundable income taxes	1,526	1,739
Prepaid expenses and other current assets	1,046	818
Inventories	9,700	12,205
Total current assets	34,418	38,867
Property, plant and equipment - net	16,090	16,577
Long-term receivables - trade and other	1,170	1,364
Long-term receivables - finance	13,651	14,644
Investments in unconsolidated affiliated companies	246	257
Noncurrent deferred and refundable income taxes	1,654	1,404
Intangible assets	2,821	3,076
Goodwill	6,615	6,694
Other assets	1,832	1,798
Total assets	78,497	84,681
Short-term borrowings:
Machinery, Energy & Transportation	9	9
Financial Products	6,958	4,699
Accounts payable	5,023	6,515
Accrued expenses	3,116	3,548
Accrued wages, salaries and employee benefits	1,994	2,438
Customer advances	1,146	1,697
Dividends payable	448	424
Other current liabilities	1,730	1,754
Long-term debt due within one year:
Machinery, Energy & Transportation	517	510
Financial Products	5,362	6,283
Total current liabilities	26,303	27,877
Long-term debt due after one year:
Machinery, Energy & Transportation	9,004	9,493
Financial Products	16,243	18,291
Liability for postemployment benefits	8,843	8,963
Other liabilities	3,219	3,231
Total liabilities	$ 63,612	$ 67,855
Commitments and contingencies (Notes 21 and 22)
Stockholders' equity
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (2015 and 2014 – 814,894,624 shares) at paid-in amount	$ 5,238	$ 5,016
Treasury stock: (2015 – 232,572,734 shares; and 2014 – 208,728,065 shares) at cost	(17,640)	(15,726)
Profit employed in the business	34,208	33,887
Accumulated other comprehensive income (loss)	(6,997)	(6,431)
Noncontrolling interests	76	80
Total stockholders' equity	14,885	16,826
Total liabilities and stockholders' equity	$ 78,497	$ 84,681

Consolidated Financial Positio6

Consolidated Financial Position (Parenthetical) (Parentheticals) - $ / shares	Dec. 31, 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	232,572,734	208,728,065

Changes in Consolidated Stockho

Changes in Consolidated 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, 2012		$ 17,582	$ 4,481	$ (10,074)	$ 29,558	$ (6,433)	$ 50
Increase (Decrease) in Stockholders' Equity
Profit of consolidated and affiliated companies		3,803	0	0	3,789	0	14
Foreign currency translation, net of tax		(277)	0	0	0	(280)	3
Pension and other postretirement benefits, net of tax		2,762	0	0	0	2,762	0
Derivative financial instruments, net of tax		37	0	0	0	37	0
Available-for-sale securities, net of tax		16	0	0	0	16	0
Change in ownership from noncontrolling interests		7	(6)	0	0	0	13
Dividends declared		(1,493)	0	0	(1,493)	0	0
Distribution to noncontrolling interests		(13)	0	0	0	0	(13)
Common shares issued from treasury stock for stock-based compensation: 2,931,595, 10,106,542 and 6,258,692 for the years ended December 31, 2015, 2014 and 2013 respectively		128	(92)	220	0	0	0
Stock-based compensation expense		231	231	0	0	0	0
Net excess tax benefits from stock-based compensation		95	95	0	0	0	0
Common shares repurchased: 25,841,608, 41,762,325 and 23,484,843 shares for years ended December 31, 2015, 2014 and 2013, respectively	[1]	(2,000)	0	(2,000)	0	0	0
Balance at Dec. 31, 2013		20,878	4,709	(11,854)	31,854	(3,898)	67
Increase (Decrease) in Stockholders' Equity
Profit of consolidated and affiliated companies		3,711	0	0	3,695	0	16
Foreign currency translation, net of tax		(1,164)	0	0	0	(1,164)	0
Pension and other postretirement benefits, net of tax		(1,255)	0	0	0	(1,255)	0
Derivative financial instruments, net of tax		(114)	0	0	0	(114)	0
Available-for-sale securities, net of tax		0	0	0	0	0	0
Change in ownership from noncontrolling interests		4	0	0	0	0	4
Dividends declared		(1,662)	0	0	(1,662)	0	0
Distribution to noncontrolling interests		(7)	0	0	0	0	(7)
Common shares issued from treasury stock for stock-based compensation: 2,931,595, 10,106,542 and 6,258,692 for the years ended December 31, 2015, 2014 and 2013 respectively		239	(127)	366	0	0	0
Stock-based compensation expense		254	254	0	0	0	0
Net excess tax benefits from stock-based compensation		180	180	0	0	0	0
Common shares repurchased: 25,841,608, 41,762,325 and 23,484,843 shares for years ended December 31, 2015, 2014 and 2013, respectively	[1]	(4,238)	0	(4,238)	0	0	0
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		2,113	0	0	2,102	0	11
Foreign currency translation, net of tax		(977)	0	0	0	(965)	(12)
Pension and other postretirement benefits, net of tax		376	0	0	0	376	0
Derivative financial instruments, net of tax		69	0	0	0	69	0
Available-for-sale securities, net of tax		(46)	0	0	0	(46)	0
Dividends declared		(1,781)	0	0	(1,781)	0	0
Distribution to noncontrolling interests		(7)	0	0	0	0	(7)
Common shares issued from treasury stock for stock-based compensation: 2,931,595, 10,106,542 and 6,258,692 for the years ended December 31, 2015, 2014 and 2013 respectively		33	(78)	111	0	0	0
Stock-based compensation expense		283	283	0	0	0	0
Net excess tax benefits from stock-based compensation		10	10	0	0	0	0
Common shares repurchased: 25,841,608, 41,762,325 and 23,484,843 shares for years ended December 31, 2015, 2014 and 2013, respectively	[1]	(2,025)	0	(2,025)	0	0	0
Other		11	7	0	0	0	4
Balance at Dec. 31, 2015		$ 14,885	$ 5,238	$ (17,640)	$ 34,208	$ (6,997)	$ 76
[1]	See Note 16 regarding shares repurchased.

Changes in Consolidated Stockh8

Changes in Consolidated Stockholders' Equity (Parenthetical) (Parentheticals) - shares	3 Months Ended					12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
Common shares issued from treasury stock for stock-based compensation (in shares)						2,931,595	10,106,542	6,258,692
Common shares repurchased (in shares)	19,600,000	23,700,000	18,100,000	11,900,000	11,500,000	25,841,608	41,762,325	23,484,843

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$ 2,113	$ 3,711	$ 3,803
Adjustments for non-cash items:
Depreciation and amortization	3,046	3,163	3,087
Goodwill impairment charge	0	0	0
Other	508	553	482
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	764	163	835
Inventories	2,274	101	2,658
Accounts payable	(1,165)	222	134
Accrued expenses	(199)	(10)	(108)
Accrued wages, salaries and employee benefits	(389)	901	(279)
Customer advances	(501)	(593)	(301)
Other assets - net	(220)	(300)	(49)
Other liabilities - net	444	146	(71)
Net cash provided by (used for) operating activities	6,675	8,057	10,191
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others	(1,388)	(1,539)	(2,522)
Expenditures for equipment leased to others	(1,873)	(1,840)	(1,924)
Proceeds from disposals of leased assets and property, plant and equipment	760	904	844
Additions to finance receivables	(9,929)	(11,278)	(11,422)
Collections of finance receivables	9,247	9,841	9,567
Proceeds from sale of finance receivables	136	177	220
Investments and acquisitions (net of cash acquired)	(400)	(30)	(195)
Proceeds from sale of businesses and investments (net of cash sold)	178	199	365
Proceeds from sale of securities	351	810	449
Investments in securities	(485)	(825)	(402)
Other - net	(114)	(46)	(26)
Net cash provided by (used for) investing activities	(3,517)	(3,627)	(5,046)
Cash flow from financing activities:
Dividends paid	(1,757)	(1,620)	(1,111)
Distribution to noncontrolling interests	(7)	(7)	(13)
Contribution from noncontrolling interests	0	4	0
Common stock issued, including treasury shares reissued	33	239	128
Treasury shares purchased	(2,025)	(4,238)	(2,000)
Excess tax benefit from stock-based compensation	24	182	96
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	3	1,994	195
Financial Products	5,129	8,655	9,133
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(517)	(785)	(1,769)
Financial Products	(7,775)	(8,463)	(9,101)
Short-term borrowings - net (original maturities three months or less)	3,022	1,043	(69)
Net cash provided by (used for) financing activities	(3,870)	(2,996)	(4,511)
Effect of exchange rate changes on cash	(169)	(174)	(43)
Increase (decrease) in cash and short-term investments	(881)	1,260	591
Cash and short-term investments at beginning of period	7,341	6,081	5,490
Cash and short-term investments at end of period	$ 6,460	$ 7,341	$ 6,081

Operations and summary of signi

Operations and summary of significant accounting policies	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operations and summary of significant accounting policies	Operations and summary of significant accounting policies A. Nature of operations Information in our financial statements and related commentary are presented in the following categories: Machinery, Energy & Transportation – Represents the aggregate total of Construction Industries, Resource Industries, Energy & Transportation and All Other operating segments and related corporate items and eliminations. Financial Products – Primarily includes the company’s Financial Products Segment. This category includes Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Financial Insurance Services (Insurance Services) and their respective subsidiaries. Our products are sold primarily under the brands “Caterpillar,” “CAT,” design versions of “CAT” and “Caterpillar,” “Electro-Motive,” “FG Wilson,” “MaK,” “MWM,” “Perkins,” “Progress Rail,” “SEM” and “Solar Turbines”. We conduct operations in our Machinery, Energy & Transportation lines of business under highly competitive conditions, including intense price competition. We place great emphasis on the high quality and performance of our products and our dealers’ service support. Although no one competitor is believed to produce all of the same types of equipment that we do, there are numerous companies, large and small, which compete with us in the sale of each of our products. Our machines are distributed principally through a worldwide organization of dealers (dealer network), 48 located in the United States and 127 located outside the United States, serving 182 countries and operating 3,593 places of business, including 1,274 dealer rental outlets. Reciprocating engines are sold principally through the dealer network and to other manufacturers for use in products. Some of the reciprocating engines manufactured by our subsidiary Perkins Engines Company Limited, are also sold through its worldwide network of 97 distributors covering 180 countries. The FG Wilson branded electric power generation systems manufactured by our subsidiary Caterpillar Northern Ireland Limited are sold through its worldwide network of 290 distributors located in 145 countries. Some of the large, medium speed reciprocating engines are also sold under the MaK brand through a worldwide network of 19 distributors located in 130 countries. Our dealers do not deal exclusively with our products; however, in most cases sales and servicing of our products are the dealers’ principal business. Some products, primarily turbines and locomotives, are sold directly to end customers through sales forces employed by the company. At times, these employees are assisted by independent sales representatives. The Financial Products line of business also conducts operations under highly competitive conditions. Financing for users of Caterpillar products is available through a variety of competitive sources, principally commercial banks and finance and leasing companies. We offer various financing plans designed to increase the opportunity for sales of our products and generate financing income for our company. A significant portion of Financial Products activity is conducted in North America, with additional offices in Latin America, Europe and Asia/Pacific. B. Basis of presentation The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. See Note 9 for further discussion. We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the economic performance of each entity. Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: December 31, (Millions of dollars) 2015 2014 Receivables - trade and other $ 19 $ 36 Receivables - finance 466 216 Long-term receivables - finance 62 285 Investments in unconsolidated affiliated companies 35 83 Guarantees 175 129 Total $ 757 $ 749 Shipping and handling costs are included in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation of equipment leased to others, Insurance Services’ underwriting expenses, gains (losses) on disposal of long-lived assets and business divestitures, long-lived asset impairment charges, legal settlements and accruals, employee separation charges and benefit plan curtailments and settlement gains (losses). Prepaid expenses and other current assets in Statement 3 include prepaid rent, prepaid insurance, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments, and other prepaid items. Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation. C. Sales and revenue recognition Sales of Machinery, Energy & Transportation are recognized and earned when all the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) price is fixed and determinable; (c) collectibility is reasonably assured; and (d) delivery has occurred. Persuasive evidence of an arrangement and a fixed or determinable price exist once we receive an order or contract from a customer or independently owned and operated dealer. We assess collectibility at the time of the sale and if collectibility is not reasonably assured, the sale is deferred and not recognized until collectibility is probable or payment is received. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when the product is shipped. Products that are exported from a country for sale typically pass title and risk of ownership at the border of the destination country. Sales of certain turbine machinery units, draglines and long wall roof supports are recognized under accounting for construction-type contracts, primarily using the percentage-of-completion method. Revenue is recognized based upon progress towards completion, which is estimated and continually updated over the course of construction. We provide for any loss that we expect to incur on these contracts when that loss is probable. Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, used engines and related components (core) are inspected, cleaned and remanufactured. In connection with the sale of most of our remanufactured product, we collect a deposit from the dealer that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and customers. Revenue is recognized pursuant to the same criteria as Machinery, Energy & Transportation sales noted above (title to the entire remanufactured product passes to the dealer upon sale). At the time of sale, the deposit is recognized in Other current liabilities in Statement 3. In addition, the core to be returned is recognized as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with useable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. The returned core is then included in inventory. In the event that the deposit is forfeited (i.e. upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. No right of return exists on sales of equipment. Replacement part returns are estimable and accrued at the time a sale is recognized. We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. The cost of these discounts is estimated based on historical experience and known changes in merchandising programs and is reported as a reduction to sales when the product sale is recognized. Our standard dealer invoice terms are established by marketing region. Our invoice terms for end-user customer sales are established by the responsible business unit. When a sale is made to a dealer, the dealer is responsible for payment even if the product is not sold to an end customer. Dealers and customers must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In 2015 , 2014 and 2013 terms were extended to not more than one year for $635 million , $624 million and $706 million of receivables, respectively, which represent approximately 1 percent of consolidated sales. We establish a bad debt allowance for Machinery, Energy & Transportation receivables when it becomes probable that the receivable will not be collected. Our allowance for bad debts is not significant. Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and rental revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed, and previously suspended income is recognized, when the account becomes current and collection of remaining amounts is considered probable. See Note 6 for more information. Sales and revenues are presented net of sales and other related taxes. D. Inventories Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2015 and 2014 . If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,498 million and $2,430 million higher than reported at December 31, 2015 and 2014 , respectively. E. Depreciation and amortization Depreciation of plant and equipment is computed principally using accelerated methods. Depreciation on equipment leased to others, primarily for Financial Products, is computed using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2015 , 2014 and 2013 , Cat Financial depreciation on equipment leased to others was $836 million , $872 million and $768 million , respectively, and was included in Other operating (income) expenses in Statement 1. In 2015 , 2014 and 2013 , consolidated depreciation expense was $2,705 million , $2,795 million and $2,710 million , respectively. Amortization of purchased finite-lived intangibles is computed principally using the straight-line method, generally not to exceed a period of 20 years . F. Foreign currency translation The functional currency for most of our Machinery, Energy & Transportation consolidated companies is the U.S. dollar. The functional currency for most of our Financial Products and affiliates accounted for under the equity method is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in Statement 1. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income (loss) in Statement 3. G. Derivative financial instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option, and cross currency contracts, interest rate swaps, and commodity forward and option contracts. All derivatives are recorded at fair value. See Note 3 for more information. H. Income taxes The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. I. Goodwill For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate the fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, goodwill is reassigned to the affected reporting units based on their relative fair values. We test goodwill for impairment annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing either a qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit’s goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the two-step process, the first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, there is an indication that an impairment may exist and the second step is required. In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. See Note 10 for further details. J. Estimates in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets, fair values for goodwill impairment tests, impairment of available-for-sale securities, warranty liability, stock-based compensation and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes. K. New accounting guidance 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 was effective January 1, 2016 and did not 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 was effective January 1, 2016 and did not 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 was effective January 1, 2016 and will be applied retrospectively. The adoption did not 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 was effective January 1, 2016 and will be applied prospectively. The adoption did not have a material impact on our financial statements. Balance sheet classification of deferred taxes - In November 2015, the FASB issued accounting guidance that requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the Consolidated Statement of Financial Position. Current guidance requires the deferred taxes for each jurisdiction to be presented as a net current asset or liability and net noncurrent asset or liability. As a result of the new guidance, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that only permits offsetting deferred tax assets and liabilities within a single jurisdiction. Entities have the option to apply the new guidance prospectively or retrospectively. The new guidance is effective January 1, 2017, with early adoption permitted. We adopted the new guidance effective January 1, 2016 and will apply it retrospectively. The adoption results in the reclassification of current deferred tax assets and liabilities to noncurrent assets and liabilities. See Note 5 on page 93 for the deferred taxes included in Statement 3. Recognition and measurement of financial assets and financial liabilities - In January 2016, the FASB issued accounting guidance that affects the accounting for equity investments, financial liabilities accounted for under the fair value option and the presentation and disclosure requirements for financial instruments. Under the new guidance, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification for equity securities with readily determinable fair values. For financial liabilities when the fair value option has been elected, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new guidance is effective January 1, 2018, with the cumulative effect adjustment from initially applying the new guidance recognized in the Statement of Financial Position as of the beginning of the year of adoption. The impact from adoption on our financial statements will be based on changes in the fair value of our available-for-sale equity securities subsequent to January 1, 2018, which will be recorded through earnings.

Stock-based compensation

Stock-based compensation	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation	Stock-based compensation Our stock-based compensation plans primarily provide for the granting of stock options, stock-settled stock appreciation rights (SARs), restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stock’s price when the option was granted. SARs permit a holder the right to receive the value in shares of the appreciation in Caterpillar stock that occurred from the date the right was granted up to the date of exercise. RSUs are agreements to issue shares of Caterpillar stock at the time of vesting. PRSUs are similar to RSUs and include performance conditions in the vesting terms of the award. Our long-standing practices and policies specify all stock-based compensation awards are approved by the Compensation Committee (the Committee) of the Board of Directors on the date of grant. The stock-based award approval process specifies the number of awards granted, the terms of the award and the grant date. The same terms and conditions are consistently applied to all employee grants, including Officers. The Committee approves all individual Officer grants. The number of stock-based compensation awards included in an individual’s award is determined based on the methodology approved by the Committee. The exercise price methodology approved by the Committee is the closing price of the Company stock on the date of the grant. The 2013 and 2014 grants were issued under the Caterpillar Inc. 2006 Long-Term Incentive Plan (approved by stockholders in June of 2006). In June of 2014, stockholders approved the Caterpillar Inc. 2014 Long-Term Incentive Plan under which all new stock-based compensation awards are granted. Common stock issued from Treasury stock under the plans totaled 2,931,595 for 2015 , 10,106,542 for 2014 and 6,258,692 for 2013 . The total number of shares authorized for equity awards under the Caterpillar Inc. 2014 Long-Term Incentive Plan is 38,800,000 , of which 25,503,631 shares remained available for issuance as of December 31, 2015. Awards granted prior to 2015 generally vest three years after the date of grant (cliff vesting). The awards granted in 2015 generally 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. Beginning in 2015, PRSUs were granted. PRSUs generally have a three -year performance period and vest upon achievement of performance targets established at the time of grant. At grant, SARs and option awards have a term life of ten years . Upon separation from service, if the participant is 55 years of age or older with more than five years of service, the participant meets the criteria for a “Long Service Separation”. If the “Long Service Separation” criteria are met, the vested options/SARs will have a life that is the lesser of ten years from the original grant date or five years from the separation date. 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. 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. Accounting guidance on share-based payments requires companies to estimate the fair value of options/SARs on the date of grant using an option-pricing model. The fair value of our option/SAR grants was estimated using a lattice-based option-pricing model. The lattice-based option-pricing model considers a range of assumptions related to volatility, risk-free interest rate and historical employee behavior. Expected volatility was based on historical Caterpillar stock price movement and current implied volatilities from traded options on Caterpillar stock. The risk-free rate was based on U.S. Treasury security yields at the time of grant. The weighted-average dividend yield was based on historical information. The expected life was determined from the lattice-based model. The lattice-based model incorporated exercise and post vesting forfeiture assumptions based on analysis of historical data. The following table provides the assumptions used in determining the fair value of the stock-based awards for the years ended December 31, 2015 , 2014 and 2013 , respectively. Grant Year 2015 2014 2013 Weighted-average dividend yield 2.3 % 2.2 % 2.1 % Weighted-average volatility 28.4 % 28.2 % 30.6 % Range of volatilities 19.9-35.9% 18.4-36.2% 23.4-40.6% Range of risk-free interest rates 0.22-2.08% 0.12-2.60% 0.16-1.88% Weighted-average expected lives 8 years 8 years 8 years The fair value of RSU and PRSU grants was estimated by reducing the stock price on the date of grant by the present value of the estimated dividends to be paid during the vesting period. The estimated dividends are based on Caterpillar’s quarterly dividend per share at the time of the grant. Please refer to Tables I and II below for additional information on our stock-based awards. TABLE I — Financial Information Related to Stock-based Compensation Stock options / SARs RSUs PRSUs Shares Weighted- Average Exercise Price Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 34,581,083 $ 74.48 4,084,136 $ 91.92 — $ — Granted to officers and key employees 1 7,939,497 $ 83.34 1,690,661 $ 77.55 132,068 $ 77.47 Exercised (3,513,271 ) $ 57.37 — $ — — $ — Vested — $ — (1,350,457 ) $ 102.63 — $ — Forfeited / expired (668,784 ) $ 76.78 (93,827 ) $ 84.28 — $ — Outstanding at December 31, 2015 38,338,525 $ 77.84 4,330,513 $ 83.14 132,068 $ 77.47 Exercisable at December 31, 2015 24,807,381 $ 72.26 Stock options/SARs outstanding and exercisable as of December 31, 2015: Outstanding Exercisable Exercise Prices Shares Outstanding at 12/31/15 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 Shares Outstanding at 12/31/15 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 $22.17 - 57.85 8,293,122 3.79 $ 44.29 $ 196 8,293,122 3.79 $ 44.29 $ 196 $63.04 - 73.20 7,876,270 1.15 $ 70.12 10 7,876,270 1.15 $ 70.12 10 $83.00 - 86.77 7,433,988 9.08 $ 83.05 — 520,547 9.18 $ 83.00 — $88.51 - 96.31 8,872,548 7.49 $ 92.88 — 2,254,845 6.78 $ 91.53 — $102.13 - 110.09 5,862,597 5.71 $ 106.31 — 5,862,597 5.71 $ 106.31 — 38,338,525 $ 77.84 $ 206 24,807,381 $ 72.26 $ 206 1 No SARs were granted during the year ended December 31, 2015 . 2 The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2015 , for awards with market price greater than the exercise price. Amounts are in millions of dollars. The computations of weighted-average exercise prices and aggregate intrinsic values are not applicable to RSUs or PRSUs since these awards represent an agreement to issue shares of stock at the time of vesting. At December 31, 2015 , there were 4,330,513 outstanding RSUs with a weighted average remaining contractual life of 1.2 years and 132,068 outstanding PRSUs with a weighted-average remaining contractual life of 2.0 years . TABLE II— Additional Stock-based Award Information (Dollars in millions except per share data) 2015 2014 2013 Stock options/SARs activity: Weighted-average fair value per share of stock awards granted $ 23.61 $ 29.52 $ 28.34 Intrinsic value of stock awards exercised $ 93 $ 649 $ 312 Fair value of stock awards vested 1 $ 155 $ 108 $ 167 Cash received from stock awards exercised $ 59 $ 259 $ 152 RSUs activity: Weighted-average fair value per share of stock awards granted $ 77.55 $ 89.18 $ 84.05 Fair value of stock awards vested 2 $ 109 $ 106 $ 117 PRSUs activity: Weighted-average fair value per share of stock awards granted $ 77.47 $ — $ — Fair value of stock awards vested 2 $ — $ — $ — 1 Based on the grant date fair value. 2 Based on the underlying stock's closing market price on the vesting date. In accordance with guidance on share-based payments, stock-based compensation expense is based on the grant date fair value and is classified within Cost of goods sold, Selling, general and administrative expenses and Research and development expenses corresponding to the same line item as the cash compensation paid to respective employees, officers and non-employee directors. Stock-based compensation expense is 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. Stock-based compensation expense for PRSUs is based on the probable number of shares expected to vest and is recognized using the graded vesting method when the award terms specify a graded vesting schedule. Before tax, stock-based compensation expense for 2015 , 2014 and 2013 was $283 million , $254 million and $231 million , respectively, with a corresponding income tax benefit of $87 million , $79 million and $73 million , respectively. The amount of stock-based compensation expense capitalized for the years ended December 31, 2015 , 2014 and 2013 did not have a significant impact on our financial statements. At December 31, 2015 , there was $215 million of total unrecognized compensation cost from stock-based compensation arrangements granted under the plans, which is related to non-vested stock-based awards. The compensation expense is expected to be recognized over a weighted-average period of approximately 1.8 years. We currently use shares in treasury stock to satisfy share award exercises. The cash tax benefits realized from stock awards exercised for 2015 , 2014 and 2013 were $68 million , $253 million and $127 million , respectively. We use the direct only method and tax law ordering approach to calculate the tax effects of stock-based compensation. In certain jurisdictions, tax deductions for exercises of stock-based awards did not generate a cash benefit. A tax benefit of approximately $21 million will be recorded in additional paid-in capital when these deductions reduce our future income taxes payable.

Derivative financial instrument

Derivative financial instruments and risk management	12 Months Ended
	Dec. 31, 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 in Statement 3 at their fair value. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow to be paid (cash flow hedge) or (3) an undesignated instrument. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income (loss) (AOCI), to the extent effective, in Statement 3 until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. Cash flow from designated derivative financial instruments are classified within the same category as the item being hedged on Statement 5. Cash flow from undesignated derivative financial instruments are included in the investing category on Statement 5. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in Statement 3 and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. A. Foreign currency exchange rate risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our Machinery, Energy & Transportation operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to five years . As of December 31, 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, Swiss franc, or Thailand baht 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 December 31, 2015 , $8 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), are expected to be reclassified to current earnings (Other income (expense) in Statement 1) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Substantially all such foreign currency forward, option and cross currency contracts are undesignated. B. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate derivatives to manage our exposure to interest rate changes. Our Machinery, Energy & Transportation operations generally use fixed rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate swaps and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate swaps as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract. As of December 31, 2015 , $4 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in Statement 1) over the next twelve months. Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate) of Cat Financial’s debt portfolio with the interest rate profile of their receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate swaps to meet the match-funding objective. We designate fixed-to-floating interest rate swaps as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate swaps as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. As of December 31, 2015 , less than $1 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in Statement 1) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery, Energy & Transportation and Financial Products. The gains or losses associated with these swaps at the time of liquidation are amortized into earnings over the original term of the previously designated hedged item. C. Commodity price risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw material. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our Machinery, Energy & Transportation operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five -year horizon. All such commodity forward and option contracts are undesignated. The location and fair value of derivative instruments reported in Statement 3 are as follows: Consolidated Statement of Financial Position Location Asset (Liability) Fair Value (Millions of dollars) Years ended December 31, 2015 2014 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 12 $ 25 Machinery, Energy & Transportation Accrued expenses (25 ) (134 ) Interest rate contracts Financial Products Receivables — trade and other 1 6 Financial Products Long-term receivables — trade and other 51 73 Financial Products Accrued expenses (4 ) (8 ) $ 35 $ (38 ) Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 2 $ 2 Machinery, Energy & Transportation Accrued expenses (9 ) (43 ) Financial Products Receivables — trade and other 3 5 Financial Products Long-term receivables — trade and other 36 17 Financial Products Accrued expenses (6 ) (15 ) Commodity contracts Machinery, Energy & Transportation Accrued expenses (12 ) (14 ) $ 14 $ (48 ) The total notional amounts of the derivative instruments are as follows: Years ended December 31, (Millions of dollars) 2015 2014 Machinery, Energy & Transportation $ 2,040 $ 3,128 Financial Products $ 3,539 $ 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 Statement 1 is as follows: Fair Value Hedges Year ended December 31, 2015 (Millions of dollars) Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (27 ) $ 26 $ (27 ) $ 26 Year ended December 31, 2014 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (41 ) $ 23 $ (41 ) $ 23 Year ended December 31, 2013 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (107 ) $ 114 $ (107 ) $ 114 Cash Flow Hedges (Millions of dollars) Year ended December 31, 2015 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (33 ) Other income (expense) $ (128 ) $ — Financial Products — Other income (expense) 1 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (6 ) — Financial Products 3 Interest expense of Financial Products (6 ) — $ (30 ) $ (139 ) $ — Year ended December 31, 2014 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (118 ) Other income (expense) $ 5 $ — Interest rate contracts Machinery, Energy & Transportation (63 ) Interest expense excluding Financial Products (5 ) — Financial Products (6 ) Interest expense of Financial Products (6 ) — $ (187 ) $ (6 ) $ — Year ended December 31, 2013 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (4 ) Other income (expense) $ (57 ) 2 $ — Interest rate contracts Machinery, Energy & Transportation — Other income (expense) (3 ) — Financial Products (2 ) Interest expense of Financial Products (6 ) 1 1 $ (6 ) $ (66 ) $ 1 1 The ineffective portion recognized in earnings is included in Other income (expense). 2 Includes $3 million of losses reclassified from AOCI to Other income (expense) in 2013 as certain derivatives were dedesignated as the related transactions are no longer probable to occur. The effect of derivatives not designated as hedging instruments on Statement 1 is as follows: Years ended December 31, (Millions of dollars) Classification of Gains (Losses) 2015 2014 2013 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ (32 ) $ (60 ) $ 17 Financial Products Other income (expense) (34 ) (47 ) 8 Interest rate contracts Machinery, Energy & Transportation Other income (expense) 2 2 (1 ) Financial Products Other income (expense) — — (3 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (23 ) (15 ) (3 ) $ (87 ) $ (120 ) $ 18 We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within Machinery, Energy & Transportation and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or of our company under the master netting agreements. As of December 31, 2015 and 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: December 31, 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 $ 14 $ — $ 14 $ (14 ) $ — $ — Financial Products 91 — 91 (5 ) — 86 Total $ 105 $ — $ 105 $ (19 ) $ — $ 86 December 31, 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 $ (46 ) $ — $ (46 ) $ 14 $ — $ (32 ) Financial Products (10 ) — (10 ) 5 — (5 ) Total $ (56 ) $ — $ (56 ) $ 19 $ — $ (37 ) 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 )

Other income (expense)

Other income (expense)	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
Other income (expense)	Other income (expense) Years ended December 31, (Millions of dollars) 2015 2014 2013 Investment and interest income $ 65 $ 66 $ 84 Foreign exchange gains (losses) 1 (228 ) 54 (254 ) License fee income 111 128 114 Gains (losses) on sale of securities and affiliated companies 176 2 36 21 Miscellaneous income (loss) (18 ) (45 ) — Total $ 106 $ 239 $ (35 ) 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 3 for further details. 2 Includes pretax gain of $120 million related to the sale of Caterpillar's 35 percent equity interest in the third party logistics business. See Note 9 for further details.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The components of profit before taxes were: Years ended December 31, (Millions of dollars) 2015 2014 2013 U.S. $ 241 $ 2,022 $ 1,938 Non-U.S. 2,614 3,061 3,190 $ 2,855 $ 5,083 $ 5,128 Profit before taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. The components of the provision (benefit) for income taxes were: Years ended December 31, (Millions of dollars) 2015 2014 2013 Current tax provision (benefit): U.S. 1 $ 525 $ 715 $ 407 Non-U.S. 656 883 805 State (U.S.) 42 48 33 1,223 1,646 1,245 Deferred tax provision (benefit): U.S. 1 (501 ) (167 ) 79 Non-U.S. 38 (77 ) (7 ) State (U.S.) (18 ) (22 ) 2 (481 ) (266 ) 74 Total provision (benefit) for income taxes $ 742 $ 1,380 $ 1,319 1 Includes U.S. taxes related to non-U.S. profits. We paid net income tax and related interest of $1,143 million , $1,595 million and $1,544 million in 2015 , 2014 and 2013 , respectively. Reconciliation of the U.S. federal statutory rate to effective rate: Years ended December 31, (Millions of dollars) 2015 2014 2013 Taxes at U.S. statutory rate $ 999 35.0 % $ 1,779 35.0 % $ 1,795 35.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than 35% (198 ) (6.9 )% (249 ) (4.9 )% (268 ) (5.2 )% State and local taxes, net of federal 16 0.5 % 17 0.3 % 23 0.4 % Interest and penalties, net of tax 12 0.4 % 12 0.2 % 4 0.1 % U.S. research and production incentives (95 ) (3.3 )% (125 ) (2.4 )% (91 ) (1.8 )% Other—net (34 ) (1.2 )% (10 ) (0.2 )% (2 ) — % 700 24.5 % 1,424 28.0 % 1,461 28.5 % Prior year tax and interest adjustments 42 1.5 % (21 ) (0.4 )% (55 ) (1.1 )% Release of valuation allowances — — % (23 ) (0.5 )% — — % Tax law changes — — % — — % (87 ) (1.7 )% Provision (benefit) for income taxes $ 742 26.0 % $ 1,380 27.1 % $ 1,319 25.7 % Included within the effective tax rate reconciliation line item above labeled "Non-U.S. subsidiaries taxed at other than 35%" are the effects of indefinitely reinvested earnings of non-U.S. subsidiaries taxed at local tax rates, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and permanent differences between tax and U.S. GAAP results. The indefinitely reinvested profits of Caterpillar SARL, primarily taxable in Switzerland, contribute the most significant amount of this line item. Although not individually significant by jurisdiction, pre-tax permanent differences due to nondeductible net foreign exchange losses of non-U.S. subsidiaries were approximately $180 million , $90 million and $10 million in 2015 , 2014 and 2013 , respectively. The provision for income taxes for 2015 included a $42 million net charge to increase unrecognized tax benefits by $68 million as discussed on page 95 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 2014 included a benefit of $23 million for the release of a valuation allowance against the deferred tax assets of a non-U.S. subsidiary and a net benefit of $21 million to adjust prior years' U.S. taxes and interest. The net benefit for prior years' U.S. taxes and interest included a $33 million benefit to reflect a settlement with the U.S. Internal Revenue Service (IRS) related to 1992 through 1994 which resulted in a $16 million benefit to remeasure previously unrecognized tax benefits and a $17 million benefit to adjust related interest, net of tax. This benefit of $33 million was offset by a net charge of $12 million to adjust prior years' U.S. taxes that included a charge of $55 million to correct for an error which resulted in an understatement of tax liabilities for prior years. Management has concluded that the error was not material to any period presented. The provision for income taxes for 2013 included a $87 million benefit primarily related to the research and development tax credit that was retroactively extended in 2013 for 2012 and a benefit of $55 million resulting from true-up of estimated amounts used in the tax provision to the 2012 U.S. income tax return as filed in September 2013. We have recorded income tax expense at U.S. tax rates on all profits, except for undistributed profits of non-U.S. subsidiaries of approximately $17 billion which are considered indefinitely reinvested. Upon distribution of these profits in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and in some instances withholding taxes payable to the various non-U.S. jurisdictions. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible primarily due to our legal entity structure and the complexity of U.S. and local tax laws. If management intentions or U.S. tax law changes in the future, there may be a significant negative impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. At December 31, 2015, cash and short-term investments held by non-U.S. subsidiaries was approximately $5 billion . Accounting for income taxes under U.S. GAAP requires that individual tax-paying entities of the company offset all current deferred tax liabilities and assets within each particular tax jurisdiction and present them as a single amount in the Consolidated Financial Position. A similar procedure is followed for all noncurrent deferred tax liabilities and assets. Amounts in different tax jurisdictions cannot be offset against each other. The amount of deferred income taxes at December 31, included on the following lines in Statement 3, are as follows: December 31, (Millions of dollars) 2015 2014 Assets: Deferred and refundable income taxes $ 910 $ 992 Noncurrent deferred and refundable income taxes 1,532 1,267 2,442 2,259 Liabilities: Other current liabilities 59 62 Other liabilities 351 414 Deferred income taxes—net $ 2,032 $ 1,783 Deferred income tax assets and liabilities: December 31, (Millions of dollars) 2015 2014 Deferred income tax assets: Pension $ 1,694 $ 1,513 Postemployment benefits other than pensions 1,339 1,514 Tax carryforwards 1,098 826 Warranty reserves 359 346 Stock-based compensation 356 327 Inventory 129 123 Allowance for credit losses 203 198 Post sale discounts 185 175 Deferred compensation 124 132 Other—net 572 549 6,059 5,703 Deferred income tax liabilities: Capital and intangible assets (2,561 ) (2,625 ) Bond discount (225 ) (233 ) Translation (343 ) (252 ) Undistributed profits of non-U.S. subsidiaries (82 ) (69 ) (3,211 ) (3,179 ) Valuation allowance for deferred tax assets (816 ) (741 ) Deferred income taxes—net $ 2,032 $ 1,783 At December 31, 2015 , approximately $557 million of U.S. state tax net operating losses (NOLs) and $145 million of U.S. state tax credit carryforwards were available. The state NOLs primarily expire between 2016 and 2035. The state tax credit carryforwards primarily expire over the next five years with certain carryforwards set to expire over the next fifteen years. Of the total $189 million of deferred tax assets related to state NOLs and credit carryforwards, we established a valuation allowance of $164 million for those that are more likely than not to expire prior to utilization. At December 31, 2015 , approximately $307 million of U.S. foreign tax credits were available for carryforward. These credits expire in 2025 and 2026. At December 31, 2015 , amounts and expiration dates of net operating loss carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2016 2017 2018 2019-2021 2022-2036 Unlimited Total $ 1 $ 3 $ 84 $ 547 $ 222 $ 1,780 $ 2,637 At December 31, 2015 , non-U.S. entities that have not yet demonstrated consistent and/or sustainable profitability to support the realization of net deferred tax assets have recorded valuation allowances of $652 million , including certain entities in Luxembourg. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, follows. Reconciliation of unrecognized tax benefits: 1 Years ended December 31, (Millions of dollars) 2015 2014 Balance at January 1, $ 846 $ 759 Additions for tax positions related to current year 73 58 Additions for tax positions related to prior years 118 84 Reductions for tax positions related to prior years (30 ) (31 ) Reductions for settlements 2 (30 ) (18 ) Reductions for expiration of statute of limitations (9 ) (6 ) Balance at December 31, $ 968 $ 846 Amount that, if recognized, would impact the effective tax rate $ 934 $ 804 1 Foreign currency impacts are included within each line as applicable. 2 Includes cash payment or other reduction of assets to settle liability. We classify interest and penalties on income taxes as a component of the provision for income taxes. We recognized a net provision for interest and penalties of $20 million , $3 million and $7 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. The total amount of interest and penalties accrued was $79 million and $61 million as of December 31, 2015 and 2014 , respectively. 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. income 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. income 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. Decisions of the U.S. Court of Appeals for the Second Circuit involving other taxpayers in 2015 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. The IRS field examination of our U.S. income tax returns for 2010 to 2012 began in 2015. With the exception of a loss carryback to 2005, tax years prior to 2007 are generally no longer subject to U.S. tax assessment. In our major non-U.S. jurisdictions including Australia, Brazil, China, Germany, Japan, Switzerland, Singapore and the U.K., tax years are typically subject to examination for three to eight years. Due to the uncertainty related to the timing and potential outcome of audits, we cannot estimate the range of reasonably possible change in unrecognized tax benefits in the next 12 months.

Cat Financial Financing Activit

Cat Financial Financing Activities	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Cat Financial Financing Activities	Cat Financial Financing Activities A. Wholesale inventory receivables Wholesale inventory receivables are receivables of Cat Financial that arise when Cat Financial provides financing for a dealer’s purchase of inventory. These receivables are included in Receivables—trade and other and Long-term receivables—trade and other in Statement 3 and were $2,165 million and $2,170 million , at December 31, 2015 and 2014 , respectively. Contractual maturities of outstanding wholesale inventory receivables: (Millions of dollars) December 31, 2015 Amounts Due In Wholesale Installment Contracts Wholesale Finance Leases Wholesale Notes Total 2016 $ 174 $ 88 $ 1,030 $ 1,292 2017 98 78 236 412 2018 71 55 161 287 2019 37 28 5 70 2020 15 10 2 27 Thereafter 2 2 — 4 397 261 1,434 2,092 Guaranteed residual value — 62 — 62 Unguaranteed residual value — 50 — 50 Less: Unearned income (7 ) (29 ) (3 ) (39 ) Total $ 390 $ 344 $ 1,431 $ 2,165 Cat Financial’s wholesale inventory receivables generally may be repaid or refinanced without penalty prior to contractual maturity. Accordingly, this presentation should not be regarded as a forecast of future cash collections. Please refer to Note 18 and Table III for fair value information. B. Finance receivables Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses. Contractual maturities of outstanding finance receivables: (Millions of dollars) December 31, 2015 Amounts Due In Retail Installment Contracts Retail Finance Leases Retail Notes Total 2016 $ 2,472 $ 2,508 $ 4,132 $ 9,112 2017 1,923 1,634 1,937 5,494 2018 1,300 922 1,447 3,669 2019 662 415 1,022 2,099 2020 188 166 926 1,280 Thereafter 8 98 976 1,082 6,553 5,743 10,440 22,736 Guaranteed residual value — 307 — 307 Unguaranteed residual value — 642 — 642 Less: Unearned income (133 ) (505 ) (88 ) (726 ) Total $ 6,420 $ 6,187 $ 10,352 $ 22,959 Cat Financial’s finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity. Accordingly, this presentation should not be regarded as a forecast of future cash collections. Please refer to Note 18 and Table III for fair value information. C. Allowance for credit losses The allowance for credit losses is an estimate of the losses inherent in Cat Financial’s finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and using information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which Cat Financial’s customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated and determined to be impaired is based either on the present value of expected future cash flows discounted at the receivables' effective interest rate or the fair value of the collateral for collateral-dependent receivables. In determining collateral value, Cat Financial estimates the current fair market value of the collateral less selling costs. Cat Financial also considers credit enhancements such as additional collateral and contractual third-party guarantees. The allowance for credit losses attributable to the remaining accounts not yet individually identified as impaired is estimated based on loss forecast models utilizing probabilities of default, our estimate of the loss emergence period and the estimated loss given default. In addition, qualitative factors not able to be fully captured in the loss forecast models including industry trends, macroeconomic factors and model imprecision are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Cat Financial’s allowance for credit losses is segregated into two portfolio segments: • Customer - Finance receivables with retail customers. • Dealer - Finance receivables with Caterpillar dealers. A portfolio segment is the level at which the Company develops a systematic methodology for determining its allowance for credit losses. 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. An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2015 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 388 $ 10 $ 398 Receivables written off (196 ) — (196 ) Recoveries on receivables previously written off 41 — 41 Provision for credit losses 119 (1 ) 118 Other (25 ) — (25 ) Balance at end of year $ 327 $ 9 $ 336 Individually evaluated for impairment $ 65 $ — $ 65 Collectively evaluated for impairment 262 9 271 Ending Balance $ 327 $ 9 $ 336 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 601 $ — $ 601 Collectively evaluated for impairment 18,788 3,570 22,358 Ending Balance $ 19,389 $ 3,570 $ 22,959 (Millions of dollars) December 31, 2014 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 365 $ 10 $ 375 Receivables written off (151 ) — (151 ) Recoveries on receivables previously written off 47 — 47 Provision for credit losses 150 — 150 Other (23 ) — (23 ) Balance at end of year $ 388 $ 10 $ 398 Individually evaluated for impairment $ 75 $ — $ 75 Collectively evaluated for impairment 313 10 323 Ending Balance $ 388 $ 10 $ 398 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 613 $ — $ 613 Collectively evaluated for impairment 19,899 3,554 23,453 Ending Balance $ 20,512 $ 3,554 $ 24,066 Credit quality of finance receivables At origination, Cat Financial evaluates credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, Cat Financial monitors credit quality based on past-due status and collection experience as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, Cat Financial considers the entire finance receivable balance past due when any installment is over 30 days past due. The tables below summarize the recorded investment of finance receivables by aging category. (Millions of dollars) December 31, 2015 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 $ 45 $ 12 $ 30 $ 87 $ 7,850 $ 7,937 $ 4 Europe 18 7 44 69 2,358 2,427 9 Asia Pacific 21 12 21 54 1,647 1,701 6 Mining 6 1 68 75 1,793 1,868 1 Latin America 45 31 199 275 1,998 2,273 — Caterpillar Power Finance — 1 35 36 3,147 3,183 2 Dealer North America — — — — 2,209 2,209 — Europe — — — — 149 149 — Asia Pacific — — — — 552 552 — Mining — — — — 4 4 — Latin America — — — — 653 653 — Caterpillar Power Finance — — — — 3 3 — Total $ 135 $ 64 $ 397 $ 596 $ 22,363 $ 22,959 $ 22 (Millions of dollars) December 31, 2014 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 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. Impaired finance receivables include finance receivables that have been restructured and are considered to be troubled debt restructurings. There were no impaired finance receivables as of December 31, 2015 , 2014 and 2013 for the Dealer portfolio segment. Cat Financial’s recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: December 31, 2015 December 31, 2014 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Unpaid Principal Balance Related Impaired Finance Receivables With No Allowance Recorded North America $ 12 $ 12 $ — $ 14 $ 14 $ — Europe 41 41 — 44 43 — Asia Pacific 1 1 — 1 1 — Mining 84 84 — 29 29 — Latin America 28 28 — 34 34 — Caterpillar Power Finance 242 241 — 129 128 — Total $ 408 $ 407 $ — $ 251 $ 249 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 14 $ 13 $ 4 $ 6 $ 6 $ 1 Europe 11 10 5 12 12 4 Asia Pacific 34 34 4 29 29 8 Mining 11 11 3 138 137 9 Latin America 53 53 21 42 42 12 Caterpillar Power Finance 70 70 28 135 134 41 Total $ 193 $ 191 $ 65 $ 362 $ 360 $ 75 Total Impaired Finance Receivables North America $ 26 $ 25 $ 4 $ 20 $ 20 $ 1 Europe 52 51 5 56 55 4 Asia Pacific 35 35 4 30 30 8 Mining 95 95 3 167 166 9 Latin America 81 81 21 76 76 12 Caterpillar Power Finance 312 311 28 264 262 41 Total $ 601 $ 598 $ 65 $ 613 $ 609 $ 75 Years ended December 31, 2015 2014 2013 (Millions of dollars) Average Recorded Investment Interest Average Recorded Investment Interest Average Recorded Investment Interest Impaired Finance Receivables With No Allowance Recorded North America $ 12 $ 1 $ 20 $ 1 $ 25 $ 3 Europe 42 1 47 1 49 1 Asia Pacific 2 — 3 — 4 — Mining 75 3 69 3 61 3 Latin America 31 — 30 — 11 — Caterpillar Power Finance 170 5 164 6 271 5 Total $ 332 $ 10 $ 333 $ 11 $ 421 $ 12 Impaired Finance Receivables With An Allowance Recorded North America $ 9 $ — $ 9 $ — $ 18 $ 1 Europe 14 1 21 1 22 1 Asia Pacific 35 2 22 1 18 1 Mining 39 1 90 7 1 — Latin America 56 3 36 1 44 2 Caterpillar Power Finance 115 3 96 2 135 1 Total $ 268 $ 10 $ 274 $ 12 $ 238 $ 6 Total Impaired Finance Receivables North America $ 21 $ 1 $ 29 $ 1 $ 43 $ 4 Europe 56 2 68 2 71 2 Asia Pacific 37 2 25 1 22 1 Mining 114 4 159 10 62 3 Latin America 87 3 66 1 55 2 Caterpillar Power Finance 285 8 260 8 406 6 Total $ 600 $ 20 $ 607 $ 23 $ 659 $ 18 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). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. As of December 31, 2015 and 2014 there were no finance receivable on non-accrual status for the Dealer portfolio segment. The investment in customer finance receivable on non-accrual status was as follows: December 31, (Millions of dollars) 2015 2014 North America $ 31 $ 27 Europe 39 28 Asia Pacific 15 54 Mining 106 62 Latin America 217 201 Caterpillar Power Finance 77 96 Total $ 485 $ 468 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. There were no finance receivables modified as TDRs during the years ended December 31, 2015 , 2014 or 2013 for the Dealer portfolio segment. Finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2015 , 2014 and 2013 were as follows: (Millions of dollars) Year ended December 31, 2015 Number of Contracts Pre-TDR Post-TDR North America 14 $ 1 $ 1 Europe 23 2 2 Asia Pacific 21 26 26 Mining 4 65 65 Latin America 11 1 2 Caterpillar Power Finance 21 259 242 Total 94 $ 354 $ 338 Year ended December 31, 2014 Number of Contracts Pre-TDR Post-TDR North America 34 $ 12 $ 7 Europe 8 7 7 Asia Pacific 2 — — Mining 51 185 176 Latin America 51 32 31 Caterpillar Power Finance 18 137 139 Total 164 $ 373 $ 360 Year ended December 31, 2013 Number of Contracts Pre-TDR Post-TDR North America 62 $ 9 $ 9 Europe 51 7 7 Asia Pacific 3 1 1 Mining 45 123 123 Latin America 16 2 2 Caterpillar Power Finance 1 17 153 157 Total 194 $ 295 $ 299 1 During the year ended December 31, 2013, $25 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented. TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2015 , 2014 and 2013 which had been modified within twelve months prior to the default date, were as follows: (Millions of dollars) Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Number Post-TDR Number Post-TDR Number Post-TDR North America 12 $ 1 11 $ 1 19 $ 4 Europe — — 46 2 5 — Latin America 12 1 11 1 — — Caterpillar Power Finance — — — — 2 3 Total 24 $ 2 68 $ 4 26 $ 7

Inventories

Inventories	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories (principally using the LIFO method) are comprised of the following: December 31, (Millions of dollars) 2015 2014 Raw materials $ 2,467 $ 2,986 Work-in-process 1,857 2,455 Finished goods 5,122 6,504 Supplies 254 260 Total inventories $ 9,700 $ 12,205 We had long-term material purchase obligations of approximately $1,407 million at December 31, 2015 . During 2013 inventory quantities were reduced. This reduction resulted in a liquidation of LIFO inventory layers carried at lower costs prevailing in prior years as compared with current costs. In 2013, the effect of this reduction of inventory decreased Cost of goods sold by approximately $115 million and increased Profit by approximately $81 million or $0.12 per share. The impact of LIFO liquidations during 2015 and 2014 was not significant to Statement 1.

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property, plant and equipment	Property, plant and equipment December 31, (Millions of dollars) Useful Lives (Years) 2015 2014 Land — $ 644 $ 665 Buildings and land improvements 20-45 7,242 7,119 Machinery, equipment and other 3-10 15,686 15,516 Software 3-7 1,636 1,455 Equipment leased to others 1-10 5,728 5,596 Construction-in-process — 1,041 1,221 Total property, plant and equipment, at cost 31,977 31,572 Less: Accumulated depreciation (15,887 ) (14,995 ) Property, plant and equipment–net $ 16,090 $ 16,577 We had commitments for the purchase or construction of capital assets of approximately $224 million at December 31, 2015 . Assets recorded under capital leases: 1 December 31, (Millions of dollars) 2015 2014 Gross capital leases 2 $ 124 $ 111 Less: Accumulated depreciation (44 ) (52 ) Net capital leases $ 80 $ 59 1 Included in Property, plant and equipment table above. 2 Consists primarily of machinery and equipment. At December 31, 2015 , scheduled minimum rental payments on assets recorded under capital leases were: (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter $ 7 $ 24 $ 7 $ 7 $ 8 $ 31 Equipment leased to others (primarily by Cat Financial): December 31, (Millions of dollars) 2015 2014 Equipment leased to others–at original cost $ 5,728 $ 5,596 Less: Accumulated depreciation (1,571 ) (1,565 ) Equipment leased to others–net $ 4,157 $ 4,031 At December 31, 2015 , scheduled minimum rental payments to be received for equipment leased to others were: (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter $ 886 $ 573 $ 352 $ 177 $ 75 $ 61

Investments in unconsolidated a

Investments in unconsolidated affiliated companies	12 Months Ended
	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Investments in unconsolidated affiliated companies	Investments in unconsolidated affiliated companies Caterpillar’s investments in unconsolidated affiliated companies: December 31, (Millions of dollars) 2015 2014 Investments in equity method companies $ 203 $ 248 Plus: Investments in cost method companies 43 9 Total investments in unconsolidated affiliated companies $ 246 $ 257 The changes in 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 Statement 3. 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 Statement 3. 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	12 Months Ended
	Dec. 31, 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: December 31, 2015 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,489 $ (809 ) $ 1,680 Intellectual property 11 1,660 (626 ) 1,034 Other 12 174 (67 ) 107 Total finite-lived intangible assets 14 $ 4,323 $ (1,502 ) $ 2,821 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 During 2015, we acquired finite-lived intangible assets of $82 million due to the purchase of Rail Product Solutions, Inc. See Note 24 for details on this acquisition. Gross customer relationship intangibles of $48 million and related accumulated amortization of $9 million were divested during 2014, and are not included in the December 31, 2014 balances in the table above. These transactions were related to the divestiture of portions of the Bucyrus distribution business. See Note 25 for additional information on divestitures. In-process research & development indefinite-lived intangibles of $18 million from the Energy & Transportation segment were impaired during 2014. Fair value of the intangibles was determined using an income approach based on the present value of discounted cash flows. The impairment of $18 million was recognized in Other operating (income) expenses in Statement 1 and included in the Energy & Transportation segment. Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired. Amortization expense related to intangible assets was $337 million , $365 million and $371 million for 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , amortization expense related to intangible assets is expected to be: (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter $ 341 $ 330 $ 324 $ 321 $ 314 $ 1,191 B. Goodwill During 2015, we acquired net assets with related goodwill aggregating $133 million primarily related to the purchases of Rail Product Solutions, Inc. ( $53 million ) and RDS Manufacturing, Inc. ( $59 million ). See Note 24 for details on these acquisitions. During 2013, we acquired net assets with related goodwill of $106 million due to the purchase of Johan Walter Berg AB (Berg). In 2014, we finalized the allocation of the Berg purchase price to identifiable assets and liabilities, adjusting goodwill from our December 31, 2013 preliminary allocation by an increase of $7 million . See Note 24 for details on this acquisition. There were no goodwill impairments during 2015 , 2014 or 2013 . Goodwill of $15 million was reclassified to held for sale and/or divested during 2014 and is not included in the December 31, 2015 and 2014 balances in the table below. The reclassified/divested amount in 2014 primarily related to the divestiture of portions of the Bucyrus distribution business. See Note 25 for additional information on divestitures. The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2015 and 2014 were as follows: (Millions of dollars) December 31, 2014 Acquisitions 1 Held for Sale and Business Divestitures 2 Impairment Loss Other Adjustments 3 December 31, 2015 Construction Industries Goodwill $ 275 $ — $ — $ — $ (12 ) $ 263 Resource Industries Goodwill 4,287 — — — (142 ) 4,145 Impairment (580 ) — — — — (580 ) Net goodwill 3,707 — — — (142 ) 3,565 Energy & Transportation Goodwill 2,542 133 — — (55 ) 2,620 All Other 4 Goodwill 192 — — — (3 ) 189 Impairment (22 ) — — — — (22 ) Net goodwill 170 — — — (3 ) 167 Consolidated total Goodwill 7,296 133 — — (212 ) 7,217 Impairment (602 ) — — — — (602 ) Net goodwill $ 6,694 $ 133 $ — $ — $ (212 ) $ 6,615 December 31, 2013 Acquisitions 1 Held for Sale and Business Divestitures 2 Impairment Loss Other Adjustments 3 December 31, 2014 Construction Industries Goodwill $ 291 $ — $ — $ — $ (16 ) $ 275 Resource Industries Goodwill 4,468 — (15 ) — (166 ) 4,287 Impairment (580 ) — — — — (580 ) Net goodwill 3,888 — (15 ) — (166 ) 3,707 Energy & Transportation Goodwill 2,600 7 — — (65 ) 2,542 All Other 4 Goodwill 199 — — — (7 ) 192 Impairment (22 ) — — — — (22 ) Net goodwill 177 — — — (7 ) 170 Consolidated total Goodwill 7,558 7 (15 ) — (254 ) 7,296 Impairment (602 ) — — — — (602 ) Net goodwill $ 6,956 $ 7 $ (15 ) $ — $ (254 ) $ 6,694 1 See Note 24 for additional information. 2 See Note 25 for additional information. 3 Other adjustments are comprised primarily of foreign currency translation. 4 Includes All Other operating segments (See Note 23).

Available-for-sale securities

Available-for-sale securities	12 Months Ended
	Dec. 31, 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 Statement 3. Unrealized gains and losses arising from the revaluation of available-for-sale securities are included, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in Statement 3). Realized gains and losses on sales of investments are generally determined using the specific identification method for debt and equity securities and are included in Other income (expense) in Statement 1. The cost basis and fair value of available-for-sale securities were as follows: December 31, 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 $ 9 $ — $ 9 $ 10 $ — $ 10 Other U.S. and non-U.S. government bonds 71 1 72 94 — 94 Corporate bonds Corporate bonds 701 7 708 677 16 693 Asset-backed securities 129 — 129 103 2 105 Mortgage-backed debt securities U.S. governmental agency 291 1 292 292 2 294 Residential 12 — 12 15 — 15 Commercial 59 2 61 63 4 67 Equity securities Large capitalization value 243 30 273 150 83 233 Real estate investment trust (REIT) 25 — 25 — — — Smaller company growth 37 17 54 17 26 43 Total $ 1,577 $ 58 $ 1,635 $ 1,421 $ 133 $ 1,554 Investments in an unrealized loss position that are not other-than-temporarily impaired: December 31, 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 $ 242 $ 3 $ 27 $ 1 $ 269 $ 4 Asset-backed securities 84 1 10 1 94 2 Mortgage-backed debt securities U.S. governmental agency 135 1 57 1 192 2 Equity securities Large capitalization value 97 8 2 — 99 8 Smaller company growth 14 1 — — 14 1 Total $ 572 $ 14 $ 96 $ 3 $ 668 $ 17 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 and asset-backed securities relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. We do not consider these investments to be other-than-temporarily impaired as of December 31, 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 December 31, 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 December 31, 2015 . The cost basis and fair value of the available-for-sale debt securities at December 31, 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. December 31, 2015 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 124 $ 124 Due after one year through five years 709 716 Due after five years through ten years 49 50 Due after ten years 28 28 U.S. governmental agency mortgage-backed securities 291 292 Residential mortgage-backed securities 12 12 Commercial mortgage-backed securities 59 61 Total debt securities – available-for-sale $ 1,272 $ 1,283 Sales of Securities: Years Ended December 31, (Millions of dollars) 2015 2014 2013 Proceeds from the sale of available-for-sale securities $ 351 $ 434 $ 449 Gross gains from the sale of available-for-sale securities $ 64 $ 38 $ 22 Gross losses from the sale of available-for-sale securities $ 2 $ 2 $ 2

Postemployment benefit plans

Postemployment benefit plans	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Postemployment benefit plans	Postemployment benefit plans We provide defined benefit pension plans, defined contribution plans and/or other postretirement benefit plans (retirement health care and life insurance) to employees in many of our locations throughout the world. Our defined benefit pension plans provide a benefit based on years of service and/or the employee’s average earnings near retirement. Our defined contribution plans allow employees to contribute a portion of their salary to help save for retirement, and in certain cases, we provide a matching contribution. The benefit obligation related to our non-U.S. defined benefit pension plans are for employees located primarily in Europe, Japan and Brazil. For other postretirement benefits, substantially all of our benefit obligation is for employees located in the United States. Our U.S. defined benefit pension plans for support and management employees were frozen for certain employees on December 31, 2010, and will freeze for remaining employees on December 31, 2019. On the respective transition dates employees move to a retirement benefit that provides a frozen pension benefit and a 401(k) plan that will include a matching contribution and a new annual employer contribution. As discussed in Note 26, during 2015 the company offered a voluntary retirement enhancement program to qualifying U.S. employees. This voluntary program impacted employees participating in certain U.S. pension and other postretirement benefit plans and resulted in a curtailment loss of $86 million , recognized in Other operating (income) expenses in Statement 1. At December 31, 2015, we changed our method for calculating the service and interest cost components of net periodic benefit cost. Historically, these components were determined utilizing a single weighted-average discount rate based on a yield curve used to measure the benefit obligation at the beginning of the period. Beginning in 2016, we have elected to utilize a full yield curve approach in the estimation of the service and interest costs by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. We have made this change to provide a more precise measurement of service and interest costs by improving the correlation between the projected cash flows to the corresponding spot rates along the yield curve. This change will have no impact on pension and other postretirement benefit liabilities and will be accounted for prospectively as a change in accounting estimate. At January 1, 2016, we changed our accounting principle for recognizing actuarial gains and losses and expected return on plan assets for our pension and other postretirement benefit plans to a more preferable policy under U.S. GAAP. Prior to 2016, actuarial gains and losses were recognized as a component of Accumulated other comprehensive income (loss), and were generally amortized into earnings in future periods. Under the new principle, actuarial gains and losses will be immediately recognized through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. In addition, we changed our policy for recognizing expected returns on plan assets from a market-related value method (based on a three-year smoothing of asset returns) to a fair value method. We believe that these changes are preferable as they provide greater transparency of our economic obligations in accounting results and better align with the fair value accounting principles by recognizing the effects of economic and interest rate changes on pension and other postretirement benefit assets and liabilities in the year in which the gains and losses are incurred. These changes will be applied retrospectively to prior years. A. Benefit obligations U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2015 2014 2015 2014 Change in benefit obligation: Benefit obligation, beginning of year $ 16,249 $ 14,419 $ 4,801 $ 4,609 $ 4,938 $ 4,784 Service cost 181 157 110 109 101 82 Interest cost 608 648 146 185 181 213 Plan amendments — — — — 3 (1 ) Actuarial losses (gains) (384 ) 1,994 (167 ) 604 (626 ) 196 Foreign currency exchange rates — — (292 ) (436 ) (42 ) (30 ) Participant contributions — — 8 9 52 61 Benefits paid - gross (890 ) (963 ) (191 ) (206 ) (345 ) (377 ) Less: federal subsidy on benefits paid — — — — 11 14 Curtailments, settlements and termination benefits 28 (6 ) (60 ) (53 ) 40 (4 ) Acquisitions, divestitures and other — — — (20 ) — — Benefit obligation, end of year $ 15,792 $ 16,249 $ 4,355 $ 4,801 $ 4,313 $ 4,938 Accumulated benefit obligation, end of year $ 15,550 $ 15,701 $ 4,024 $ 4,408 Weighted-average assumptions used to determine benefit obligation: Discount rate 4.2 % 3.8 % 3.2 % 3.3 % 4.1 % 3.9 % Rate of compensation increase 4.0 % 4.0 % 3.8 % 4.0 % 4.0 % 4.0 % Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: (Millions of dollars) One-percentage- point increase One-percentage- point decrease Effect on 2015 service and interest cost components of other postretirement benefit cost $ 37 $ (6 ) Effect on accumulated postretirement benefit obligation $ 244 $ (202 ) B. Plan assets U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2015 2014 2015 2014 Change in plan assets: Fair value of plan assets, beginning of year $ 12,530 $ 12,395 $ 4,100 $ 3,949 $ 776 $ 822 Actual return on plan assets (225 ) 849 105 507 3 75 Foreign currency exchange rates — — (232 ) (352 ) — — Company contributions 30 255 156 265 164 195 Participant contributions — — 8 9 52 61 Benefits paid (890 ) (963 ) (191 ) (206 ) (345 ) (377 ) Settlements and termination benefits (5 ) (6 ) (56 ) (50 ) — — Acquisitions, divestitures and other — — — (22 ) — — Fair value of plan assets, end of year $ 11,440 $ 12,530 $ 3,890 $ 4,100 $ 650 $ 776 In general, our strategy for both the U.S. and non-U.S. pensions includes further aligning our investments to our liabilities, while reducing risk in our portfolio. The current U.S. pension target asset allocations are 45 percent equities and 55 percent fixed income. These target allocations will be revisited periodically to ensure that they reflect our overall objectives. The non-U.S. pension weighted-average target allocations are 41 percent equities, 51 percent fixed income, 5 percent real estate and 3 percent other. The target allocations for each plan vary based upon local statutory requirements, demographics of plan participants and funded status. The non-U.S. plan assets are primarily invested in non-U.S. securities. Our target allocations for the other postretirement benefit plans are 70 percent equities and 30 percent fixed income. The U.S. plans are rebalanced to plus or minus 5 percentage points of the target asset allocation ranges on a monthly basis. The frequency of rebalancing for the non-U.S. plans varies depending on the plan. As a result of our diversification strategies, there are no significant concentrations of risk within the portfolio of investments. The use of certain derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. The plans do not engage in derivative contracts for speculative purposes. The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2 and 3). See Note 18 for a discussion of the fair value hierarchy. Fair values are determined as follows: • Equity securities are primarily based on valuations for identical instruments in active markets. • Fixed income securities are primarily based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds. • Real estate is stated at the fund’s net asset value or at appraised value. • Cash, short-term instruments and other are based on the carrying amount, which approximates fair value, or the fund’s net asset value. The fair value of the pension and other postretirement benefit plan assets by category is summarized below: December 31, 2015 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,976 $ — $ 172 $ 3,148 Non-U.S. equities 2,044 5 1 2,050 Fixed income securities: U.S. corporate bonds — 4,004 42 4,046 Non-U.S. corporate bonds — 575 — 575 U.S. government bonds — 526 — 526 U.S. governmental agency mortgage-backed securities — 627 — 627 Non-U.S. government bonds — 65 — 65 Real estate — — 9 9 Cash, short-term instruments and other 157 234 3 394 Total U.S. pension assets $ 5,177 $ 6,036 $ 227 $ 11,440 December 31, 2014 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value U.S. Pension Equity securities: U.S. equities $ 3,713 $ 1 $ 161 $ 3,875 Non-U.S. equities 2,291 12 1 2,304 Fixed income securities: U.S. corporate bonds — 3,985 25 4,010 Non-U.S. corporate bonds — 552 — 552 U.S. government bonds — 528 — 528 U.S. governmental agency mortgage-backed securities — 752 2 754 Non-U.S. government bonds — 62 2 64 Real estate — — 9 9 Cash, short-term instruments and other 37 397 — 434 Total U.S. pension assets $ 6,041 $ 6,289 $ 200 $ 12,530 December 31, 2015 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 426 $ 118 $ — $ 544 Non-U.S. equities 680 152 2 834 Global equities 1 155 49 — 204 Fixed income securities: U.S. corporate bonds — 135 3 138 Non-U.S. corporate bonds — 400 2 402 U.S. government bonds — 64 — 64 Non-U.S. government bonds — 1,083 — 1,083 Global fixed income 1 — 341 — 341 Real estate — 172 — 172 Cash, short-term instruments and other 2 61 47 — 108 Total non-U.S. pension assets $ 1,322 $ 2,561 $ 7 $ 3,890 December 31, 2014 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 552 $ — $ — $ 552 Non-U.S. equities 794 250 — 1,044 Global equities 1 218 52 — 270 Fixed income securities: U.S. corporate bonds — 81 9 90 Non-U.S. corporate bonds — 503 2 505 U.S. government bonds — 1 — 1 Non-U.S. government bonds — 836 — 836 Global fixed income 1 — 363 — 363 Real estate — 182 48 230 Cash, short-term instruments and other 2 159 50 — 209 Total non-U.S. pension assets $ 1,723 $ 2,318 $ 59 $ 4,100 1 Includes funds that invest in both U.S. and non-U.S. securities. 2 Includes funds that invest in multiple asset classes, hedge funds and other. December 31, 2015 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 296 $ 1 $ — $ 297 Non-U.S. equities 136 — — 136 Fixed income securities: U.S. corporate bonds — 87 — 87 Non-U.S. corporate bonds — 18 — 18 U.S. government bonds — 31 — 31 U.S. governmental agency mortgage-backed securities — 45 — 45 Non-U.S. government bonds — 4 — 4 Cash, short-term instruments and other 17 15 — 32 Total other postretirement benefit assets $ 449 $ 201 $ — $ 650 December 31, 2014 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 392 $ — $ — $ 392 Non-U.S. equities 158 1 — 159 Fixed income securities: U.S. corporate bonds — 103 — 103 Non-U.S. corporate bonds — 17 — 17 U.S. government bonds — 30 — 30 U.S. governmental agency mortgage-backed securities — 50 — 50 Non-U.S. government bonds — 3 — 3 Cash, short-term instruments and other 9 13 — 22 Total other postretirement benefit assets $ 559 $ 217 $ — $ 776 Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2015 and 2014 . These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. (Millions of dollars) Equities Fixed Income Real Estate Other U.S. Pension Balance at December 31, 2013 $ 129 $ 54 $ 8 $ — Unrealized gains (losses) 1 — 1 — Realized gains (losses) 19 3 — — Purchases, issuances and settlements, net 13 (23 ) — — Transfers in and/or out of Level 3 — (5 ) — — Balance at December 31, 2014 $ 162 $ 29 $ 9 $ — Unrealized gains (losses) (1 ) (1 ) — — Realized gains (losses) 14 — — — Purchases, issuances and settlements, net (2 ) 16 — 2 Transfers in and/or out of Level 3 — (2 ) — 1 Balance at December 31, 2015 $ 173 $ 42 $ 9 $ 3 Non-U.S. Pension Balance at December 31, 2013 $ — $ 21 $ 111 $ — Unrealized gains (losses) — (1 ) (23 ) — Realized gains (losses) — — 22 — Purchases, issuances and settlements, net — (1 ) (62 ) — Transfers in and/or out of Level 3 — (8 ) — — Balance at December 31, 2014 $ — $ 11 $ 48 $ — Unrealized gains (losses) — (1 ) (18 ) — Realized gains (losses) — — 15 — Purchases, issuances and settlements, net — — (45 ) — Transfers in and/or out of Level 3 2 (5 ) — — Balance at December 31, 2015 $ 2 $ 5 $ — $ — C. Funded status The funded status of the plans, reconciled to the amount reported on Statement 3, is as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2015 2014 2015 2014 End of Year Fair value of plan assets $ 11,440 $ 12,530 $ 3,890 $ 4,100 $ 650 $ 776 Benefit obligations 15,792 16,249 4,355 4,801 4,313 4,938 Over (under) funded status recognized in financial position $ (4,352 ) $ (3,719 ) $ (465 ) $ (701 ) $ (3,663 ) $ (4,162 ) Components of net amount recognized in financial position: Other assets (non-current asset) $ 6 $ 3 $ 163 $ 144 $ — $ — Accrued wages, salaries and employee benefits (current liability) (32 ) (28 ) (19 ) (24 ) (161 ) (160 ) Liability for postemployment benefits (non-current liability) (4,326 ) (3,694 ) (609 ) (821 ) (3,502 ) (4,002 ) Net liability recognized $ (4,352 ) $ (3,719 ) $ (465 ) $ (701 ) $ (3,663 ) $ (4,162 ) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Net actuarial loss (gain) $ 6,245 $ 6,034 $ 1,300 $ 1,494 $ 171 $ 800 Prior service cost (credit) 1 2 1 9 39 (31 ) Total $ 6,246 $ 6,036 $ 1,301 $ 1,503 $ 210 $ 769 In 2016, we elected to make a change in accounting principle related to the recognition of actuarial gains and losses. Actuarial gains and losses will be immediately recognized upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. Accordingly, there will be no actuarial gains and losses amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost in 2016. This change will be effective in reporting periods after December 31, 2015 and will be applied retrospectively to prior years. The estimated amount of prior service cost (credit) that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2015 into net periodic benefit cost (pre-tax) in 2016 are as follows: (Millions of dollars) U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits Prior service cost (credit) $ — $ — $ (30 ) Total $ — $ — $ (30 ) The following amounts relate to our pension plans with projected benefit obligations in excess of plan assets: U.S. Pension Benefits at Year-end Non-U.S. Pension Benefits at Year-end (Millions of dollars) 2015 2014 2015 2014 Projected benefit obligation $ 15,734 $ 16,182 $ 1,818 $ 4,539 Accumulated benefit obligation $ 15,493 $ 15,634 $ 1,657 $ 4,148 Fair value of plan assets $ 11,377 $ 12,460 $ 1,190 $ 3,695 The following amounts relate to our pension plans with accumulated benefit obligations in excess of plan assets: U.S. Pension Benefits at Year-end Non-U.S. Pension Benefits at Year-end (Millions of dollars) 2015 2014 2015 2014 Projected benefit obligation $ 15,734 $ 16,182 $ 1,363 $ 1,879 Accumulated benefit obligation $ 15,493 $ 15,634 $ 1,320 $ 1,734 Fair value of plan assets $ 11,377 $ 12,460 $ 793 $ 1,068 The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented. D. Expected cash flow Information about the expected cash flow for the pension and other postretirement benefit plans is as follows: (Millions of dollars) U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits Employer contributions: 2016 (expected) $ 30 $ 120 $ 200 Expected benefit payments: 2016 $ 990 $ 220 $ 310 2017 990 170 320 2018 980 170 310 2019 980 170 310 2020 980 170 300 2021-2025 4,890 990 1,480 Total $ 9,810 $ 1,890 $ 3,030 The above table reflects the total employer contributions and benefits expected to be paid from the plan or from company assets and does not include the participants’ share of the cost. The expected benefit payments for our other postretirement benefits include payments for prescription drug benefits. Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments are as follows: (Millions of dollars) 2016 2017 2018 2019 2020 2021-2025 Total Other postretirement benefits $ 15 $ 15 $ 20 $ 20 $ 20 $ 100 $ 190 E. Net periodic cost U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 181 $ 157 $ 196 $ 110 $ 109 $ 120 $ 101 $ 82 $ 108 Interest cost 608 648 581 146 185 166 181 213 195 Expected return on plan assets 1 (879 ) (885 ) (832 ) (260 ) (258 ) (225 ) (53 ) (52 ) (56 ) Other adjustments 2 — — 31 — — — — — (22 ) Curtailments, settlements and termination benefits 3 52 — — 14 14 2 32 (2 ) — Amortization of: Transition obligation (asset) — — — — — — — — 2 Prior service cost (credit) 4 1 17 18 — — 1 (54 ) (55 ) (73 ) Net actuarial loss (gain) 5 490 392 546 99 86 128 52 41 107 Total cost included in operating profit $ 453 $ 329 $ 540 $ 109 $ 136 $ 192 $ 259 $ 227 $ 261 Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): Current year actuarial loss (gain) $ 701 $ 2,030 $ (2,344 ) $ (95 ) $ 207 $ (406 ) $ (577 ) $ 179 $ (759 ) Amortization of actuarial (loss) gain (490 ) (392 ) (546 ) (99 ) (86 ) (128 ) (52 ) (41 ) (107 ) Current year prior service cost (credit) — — — (8 ) (4 ) (7 ) 16 (2 ) 2 Amortization of prior service (cost) credit (1 ) (17 ) (18 ) — — (1 ) 54 55 73 Amortization of transition (obligation) asset — — — — — — — — (2 ) Total recognized in other comprehensive income 210 1,621 (2,908 ) (202 ) 117 (542 ) (559 ) 191 (793 ) Total recognized in net periodic cost and other comprehensive income $ 663 $ 1,950 $ (2,368 ) $ (93 ) $ 253 $ (350 ) $ (300 ) $ 418 $ (532 ) Weighted-average assumptions used to determine net cost: Discount rate 3.8 % 4.6 % 3.7 % 3.3 % 4.1 % 3.7 % 3.9 % 4.6 % 3.7 % Expected rate of return on plan assets 6 7.4 % 7.8 % 7.8 % 6.8 % 6.9 % 6.8 % 7.8 % 7.8 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 4.5 % 4.0 % 4.2 % 3.9 % 4.0 % 4.0 % 4.4 % 1 Expected return on plan assets developed using calculated market-related value of plan assets which recognizes differences in expected and actual returns over a three-year period. 2 Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits. 3 Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in Statement 1. 4 Prior service cost (credit) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) are amortized using the straight-line method over the remaining life expectancy of those participants. 5 Net actuarial loss (gain) for pension and other postretirement benefit plans are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For plans in which all or almost all of the plan’s participants are inactive, net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of the inactive participants. 6 The weighted-average rates for 2016 are 6.9 percent and 6.1 percent for U.S. and non-U.S. pension plans, respectively. The assumed discount rate is used to discount future benefit obligations back to today’s dollars. The U.S. discount rate is based on a benefit cash flow-matching approach and represents the rate at which our benefit obligations could effectively be settled as of our measurement date, December 31. The benefit cash flow-matching approach involves analyzing Caterpillar’s projected cash flows against a high quality bond yield curve, calculated using a wide population of corporate Aa bonds available on the measurement date. The very highest and lowest yielding bonds (top and bottom 10 percent ) are excluded from the analysis. A similar process is used to determine the assumed discount rate for our most significant non-U.S. plans. This rate is sensitive to changes in interest rates. A decrease in the discount rate would increase our obligation and future expense. Our U.S. expected long-term rate of return on plan assets is based on our estimate of long-term passive returns for equities and fixed income securities weighted by the allocation of our pension assets. Based on historical performance, we increase the passive returns due to our active management of the plan assets. To arrive at our expected long-term return, the amount added for active management was 0.95 percent for 2015 and 1 percent for 2014 and 2013 . A similar process is used to determine this rate for our non-U.S. plans. The assumed health care trend rate represents the rate at which health care costs are assumed to increase. We assumed a weighted-average increase of 6.6 percent in our calculation of 2015 benefit expense. We expect a weighted-average increase of 6.5 percent during 2016. The 2016 rates are assumed to decrease gradually to the ultimate health care trend rate of 5 percent in 2021 . This rate represents 3 percent general inflation plus 2 percent additional health care inflation. F. Other postemployment benefit plans We offer long-term disability benefits, continued health care for disabled employees, survivor income benefit insurance and supplemental unemployment benefits to substantially all U.S. employees. G. Defined contribution plans We have both U.S. and non-U.S. employee defined contribution plans to help employees save for retirement. Our primary U.S. 401(k) plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis. Employees with frozen defined benefit pension accruals are eligible for matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age). Employees that are still accruing benefits under a defined benefit pension plan are eligible for matching contributions equal to 50 percent of employee contributions up to 6 percent of cash compensation. These 401(k) plans include various investments funds, including a non-leveraged employee stock ownership plan (ESOP). As of December 31, 2015 and 2014 the ESOP held 26.4 million and 26.2 million shares, respectively. All of the shares held by the ESOP were allocated to participant accounts. Dividends paid to participants are automatically reinvested into company shares unless the participant elects to have all or a portion of the dividend paid to the participant. Various other U.S. and non-U.S. defined contribution plans allow eligible employees to contribute a portion of their salary to the plans, and in some cases, we provide a matching contribution to the funds. Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: (Millions of dollars) 2015 2014 2013 U.S. plans $ 267 $ 301 $ 308 Non-U.S. plans 76 85 64 $ 343 $ 386 $ 372 H. Summary of long-term liability: December 31, (Millions of dollars) 2015 2014 Pensions: U.S. pensions $ 4,326 $ 3,694 Non-U.S. pensions 609 821 Total pensions 4,935 4,515 Postretirement benefits other than pensions 3,502 4,002 Other postemployment benefits 104 112 Defined contribution 302 334 $ 8,843 $ 8,963

Short-term borrowings

Short-term borrowings	12 Months Ended
	Dec. 31, 2015
Short-term Borrowings Disclosure [Abstract]
Short-term borrowings	Short-term borrowings December 31, (Millions of dollars) 2015 2014 Machinery, Energy & Transportation: Notes payable to banks $ 9 $ 9 Commercial paper — — 9 9 Financial Products: Notes payable to banks 440 411 Commercial paper 5,811 3,688 Demand notes 707 600 6,958 4,699 Total short-term borrowings $ 6,967 $ 4,708 The weighted-average interest rates on short-term borrowings outstanding were: December 31, 2015 2014 Notes payable to banks 9.2 % 6.8 % Commercial paper 0.5 % 0.3 % Demand notes 0.8 % 0.8 % Please refer to Note 18 and Table III for fair value information on short-term borrowings.

Long-term debt

Long-term debt	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Long-term debt	Long-term debt December 31, (Millions of dollars) 2015 2014 Machinery, Energy & Transportation: Notes—5.700% due 2016 3 $ — $ 504 Notes—3.900% due 2021 3 1,247 1,246 Notes—5.200% due 2041 3 757 757 Debentures—1.500% due 2017 3 500 500 Debentures—7.900% due 2018 3 900 899 Debentures—9.375% due 2021 120 120 Debentures—2.600% due 2022 3 499 498 Debentures—8.000% due 2023 82 82 Debentures—3.400% due 2024 1,000 1,000 Debentures—6.625% due 2028 3 193 193 Debentures—7.300% due 2031 3 241 241 Debentures—5.300% due 2035 1, 3 213 211 Debentures—6.050% due 2036 3 459 459 Debentures—8.250% due 2038 3 65 65 Debentures—6.950% due 2042 3 160 160 Debentures—3.803% due 2042 2, 3 1,207 1,188 Debentures—4.300% due 2044 497 497 Debentures—4.750% due 2064 498 498 Debentures—7.375% due 2097 3 244 244 Capital lease obligations 77 85 Other 45 46 Total Machinery, Energy & Transportation 9,004 9,493 Financial Products: Medium-term notes 15,713 17,295 Other 530 996 Total Financial Products 16,243 18,291 Total long-term debt due after one year $ 25,247 $ 27,784 1 Debentures due in 2035 have a face value of $307 million and an effective yield to maturity of 8.55% . 2 Debentures due in 2042 have a face value of $1,722 million and an effective yield to maturity of 6.33% . 3 Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures. All outstanding notes and debentures are unsecured and rank equally with one another. On May 8, 2014, we issued $1.0 billion of 3.400% Senior Notes due 2024, $500 million of 4.300% Senior Notes due 2044, and $500 million of 4.750% Senior Notes due 2064. Cat Financial's medium term notes are offered by prospectus and are issued through agents at fixed and floating rates. These notes have a weighted average interest rate of 2.4% with remaining maturities up to 12 years at December 31, 2015 . The aggregate amounts of maturities of long-term debt during each of the years 2016 through 2020, including amounts due within one year and classified as current, are: December 31, (Millions of dollars) 2016 2017 2018 2019 2020 Machinery, Energy & Transportation $ 517 $ 531 $ 907 $ 7 $ 8 Financial Products 5,362 5,866 4,154 2,531 1,125 $ 5,879 $ 6,397 $ 5,061 $ 2,538 $ 1,133 Interest paid on short-term and long-term borrowings for 2015 , 2014 and 2013 was $1,047 million , $1,109 million and $1,141 million respectively. Please refer to Note 18 and Table III for fair value information on long-term debt.

Credit commitments

Credit commitments	12 Months Ended
	Dec. 31, 2015
Credit Commitments [Abstract]
Credit commitments	Credit commitments December 31, 2015 (Millions of dollars) Consolidated Machinery, Energy & Transportation Financial Products Credit lines available: Global credit facilities $ 10,500 $ 2,750 $ 7,750 Other external 3,745 176 3,569 Total credit lines available 14,245 2,926 11,319 Less: Commercial paper outstanding (5,811 ) — (5,811 ) Less: Utilized credit (1,444 ) (9 ) (1,435 ) Available credit $ 6,990 $ 2,917 $ 4,073 We have three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and Cat Financial for general liquidity purposes. Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to Machinery, Energy & Transportation as of December 31, 2015 was $2.75 billion . Our three Global Credit Facilities are: • The 364 -day facility of $3.15 billion (of which $0.82 billion is available to Machinery, Energy & Transportation) expires in September 2016. • The three -year facility, as amended and restated in September 2015, of $2.73 billion (of which $0.72 billion is available to Machinery, Energy & Transportation) expires in September 2018. • The five -year facility, as amended and restated in September 2015, of $4.62 billion (of which $1.21 billion is available to Machinery, Energy & Transportation) expires in September 2020. Other consolidated credit lines with banks as of December 31, 2015 totaled $3.75 billion . These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our subsidiaries for local funding requirements. Caterpillar or Cat Financial may guarantee subsidiary borrowings under these lines. At December 31, 2015 , Caterpillar's consolidated net worth was $19.92 billion , which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined as the consolidated stockholder's equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income (loss). At December 31, 2015 , Cat Financial's covenant interest coverage ratio was 2.05 to 1 . This is above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. In addition, at December 31, 2015 , Cat Financial's six-month covenant leverage ratio was 7.49 to 1 and year-end covenant leverage ratio was 7.93 to 1 . This is below the maximum ratio of debt to net worth of 10 to 1 , calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. In the event Caterpillar or Cat Financial does not meet one or more of their respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of Cat Financial's other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable, may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2015 , there were no borrowings under the Credit Facility.

Profit per share

Profit per share	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Profit per share	Profit per share Computations of profit per share: (Dollars in millions except per share data) 2015 2014 2013 Profit for the period (A) 1 $ 2,102 $ 3,695 $ 3,789 Determination of shares (in millions): Weighted average number of common shares outstanding (B) 594.3 617.2 645.2 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 7.0 11.7 13.4 Average common shares outstanding for fully diluted computation (C) 2 601.3 628.9 658.6 Profit per share of common stock: Assuming no dilution (A/B) $ 3.54 $ 5.99 $ 5.87 Assuming full dilution (A/C) 2 $ 3.50 $ 5.88 $ 5.75 Shares outstanding as of December 31 (in millions) 582.3 606.2 637.8 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 22,169,133 , 10,266,682 and 10,152,448 common shares were outstanding in 2015 , 2014 and 2013 , respectively, which were not included in the computation of diluted earnings per share because the effect would have been antidilutive. In February 2007, the Board of Directors authorized the repurchase of $7.5 billion of Caterpillar common stock (the 2007 Authorization), and in December 2011, the 2007 Authorization was extended through December 2015. In April 2013, we entered into a definitive agreement with Citibank, N.A. to purchase shares of our common stock under an accelerated stock repurchase transaction (April 2013 ASR Agreement), which was completed in June 2013. In accordance with the terms of the April 2013 ASR Agreement, a total of 11.5 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $1.0 billion . In July 2013, we entered into a definitive agreement with Société Générale to purchase shares of our common stock under an accelerated stock repurchase transaction (July 2013 ASR Agreement), which was completed in September 2013. In accordance with the terms of the July 2013 ASR Agreement, a total of 11.9 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $1.0 billion . In January 2014, we completed the 2007 Authorization and entered into a definitive agreement with Citibank, N.A. to purchase shares of our common stock under an accelerated stock repurchase transaction (January 2014 ASR Agreement), which was completed in March 2014. In accordance with the terms of the January 2014 ASR Agreement, a total of approximately 18.1 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of approximately $1.7 billion . In January 2014, the Board approved a new authorization to repurchase up to $10.0 billion of Caterpillar common stock, which will expire on December 31, 2018. In July 2014, we entered into definitive agreements with Société Générale to purchase shares of our common stock under accelerated stock repurchase transactions (July 2014 ASR Agreements) which were completed in September 2014. In accordance with the terms of the July 2014 ASR Agreements, a total of approximately 23.7 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $2.5 billion . 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 year ended December 31, 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 2015, approximately $4.5 billion of the $10.0 billion authorization was spent.

Accumulated other comprehensive

Accumulated other comprehensive income (loss)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) Comprehensive income and its components are presented in Statement 2. Changes in Accumulated other comprehensive income (loss), net of tax, included in Statement 4, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Balance at December 31, 2012 $ 456 $ (6,914 ) $ (42 ) $ 67 $ (6,433 ) Other comprehensive income (loss) before reclassifications (280 ) 2,280 (4 ) 29 2,025 Amounts reclassified from accumulated other comprehensive (income) loss — 482 41 (13 ) 510 Other comprehensive income (loss) (280 ) 2,762 37 16 2,535 Balance at December 31, 2013 $ 176 $ (4,152 ) $ (5 ) $ 83 $ (3,898 ) Other comprehensive income (loss) before reclassifications (1,164 ) (1,574 ) (118 ) 24 (2,832 ) Amounts reclassified from accumulated other comprehensive (income) loss — 319 4 (24 ) 299 Other comprehensive income (loss) (1,164 ) (1,255 ) (114 ) — (2,533 ) Balance at December 31, 2014 $ (988 ) $ (5,407 ) $ (119 ) $ 83 $ (6,431 ) Other comprehensive income (loss) before reclassifications (965 ) (13 ) (19 ) (10 ) (1,007 ) Amounts reclassified from accumulated other comprehensive (income) loss — 389 88 (36 ) 441 Other comprehensive income (loss) (965 ) 376 69 (46 ) (566 ) Balance at December 31, 2015 $ (1,953 ) $ (5,031 ) $ (50 ) $ 37 $ (6,997 ) The effect of the reclassifications out of Accumulated other comprehensive income (loss) on Statement 1 is as follows: Year ended December 31, (Millions of dollars) Classification of income (expense) 2015 2014 2013 Pension and other postretirement benefits: Amortization of actuarial gain (loss) Note 12 1 $ (641 ) $ (519 ) $ (781 ) Amortization of prior service credit (cost) Note 12 1 53 38 54 Amortization of transition asset (obligation) Note 12 1 — — (2 ) Reclassifications before tax (588 ) (481 ) (729 ) Tax (provision) benefit 199 162 247 Reclassifications net of tax $ (389 ) $ (319 ) $ (482 ) Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (127 ) $ 5 $ (57 ) Interest rate contracts Interest expense excluding Financial Products (6 ) (5 ) — Interest rate contracts Other income (expense) — — (3 ) Interest rate contracts Interest expense of Financial Products (6 ) (6 ) (6 ) Reclassifications before tax (139 ) (6 ) (66 ) Tax (provision) benefit 51 2 25 Reclassifications net of tax $ (88 ) $ (4 ) $ (41 ) Available-for-sale securities: Realized gain (loss) on sale of securities Other income (expense) $ 56 $ 35 $ 19 Tax (provision) benefit (20 ) (11 ) (6 ) Reclassifications net of tax $ 36 $ 24 $ 13 Total reclassifications from Accumulated other comprehensive income (loss) $ (441 ) $ (299 ) $ (510 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 12 for additional information.

Fair value disclosures

Fair value disclosures	12 Months Ended
	Dec. 31, 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 11 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 Statement 3 as of December 31, 2015 and 2014 are summarized below: December 31, 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 $ 9 $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 72 — 72 Corporate bonds Corporate bonds — 708 — 708 Asset-backed securities — 129 — 129 Mortgage-backed debt securities U.S. governmental agency — 292 — 292 Residential — 12 — 12 Commercial — 61 — 61 Equity securities Large capitalization value 273 — — 273 REIT — — 25 25 Smaller company growth 54 — — 54 Total available-for-sale securities 336 1,274 25 1,635 Derivative financial instruments, net — 49 — 49 Total Assets $ 336 $ 1,323 $ 25 $ 1,684 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 year ended December 31, 2015 is as follows: (Millions of dollars) REIT Balance at December 31, 2014 $ — Purchases of securities 25 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) — Balance at December 31, 2015 $ 25 In addition to the amounts above, Cat Financial impaired loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. 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 either on the present value of expected future cash flows discounted at the receivables' effective interest rate, or the fair value of the collateral for collateral-dependent receivables. In determining collateral value, Cat Financial estimates the current fair market value of the collateral less selling costs. Cat Financial had impaired loans with a fair value of $91 million and $248 million for the years ended December 31, 2015 and 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 Statement 3. Finance receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Wholesale inventory receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Short-term borrowings Carrying amount approximated fair value. Long-term debt Fair value for fixed and floating rate debt was estimated based on quoted market prices. 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. TABLE III—Fair Values of Financial Instruments 2015 2014 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets at December 31, Cash and short-term investments $ 6,460 $ 6,460 $ 7,341 $ 7,341 1 Statement 3 Restricted cash and short-term investments 52 52 62 62 1 Statement 3 Available-for-sale securities 1,635 1,635 1,554 1,554 1, 2 & 3 Notes 11 & 19 Finance receivables–net (excluding finance leases 1 ) 16,515 16,551 16,426 16,159 3 Notes 6 & 19 Wholesale inventory receivables–net (excluding finance leases 1 ) 1,821 1,775 1,774 1,700 3 Notes 6 & 19 Foreign currency contracts–net 13 13 — — 2 Notes 3 & 19 Interest rate swaps–net 48 48 71 71 2 Notes 3 & 19 Liabilities at December 31, Short-term borrowings 6,967 6,967 4,708 4,708 1 Note 13 Long-term debt (including amounts due within one year): Machinery, Energy & Transportation 9,521 10,691 10,003 11,973 2 Note 14 Financial Products 21,605 21,904 24,574 25,103 2 Note 14 Foreign currency contracts–net — — 143 143 2 Notes 3 & 19 Commodity contracts–net 12 12 14 14 2 Notes 3 & 19 Guarantees 12 12 12 12 3 Note 21 1 Total excluded items have a net carrying value at December 31, 2015 and 2014 of $6,452 million and $7,638 million , respectively.

Concentration of credit risk

Concentration of credit risk	12 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
Concentration of credit risk	Concentration of credit risk Financial instruments with potential credit risk consist primarily of trade and finance receivables and short-term and long-term investments. Additionally, to a lesser extent, we have a potential credit risk associated with counterparties to derivative contracts. Trade receivables are primarily short-term receivables from independently owned and operated dealers and customers which arise in the normal course of business. We perform regular credit evaluations of our dealers and customers. Collateral generally is not required, and the majority of our trade receivables are unsecured. We do, however, when deemed necessary, make use of various devices such as security agreements and letters of credit to protect our interests. No single dealer or customer represents a significant concentration of credit risk. Finance receivables and wholesale inventory receivables primarily represent receivables under installment sales contracts, receivables arising from leasing transactions and notes receivable. We generally maintain a secured interest in the equipment financed. No single customer or dealer represents a significant concentration of credit risk. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited. Long-term investments, primarily included in Other assets in Statement 3, are comprised primarily of available-for-sale securities at Insurance Services. For derivative contracts, collateral is generally not required of the counterparties or of our company. The company generally enters into International Swaps and Derivatives Association (ISDA) master netting agreements within Machinery, Energy & Transportation and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2015 and 2014 , the maximum exposure to credit loss was $105 million and $128 million , respectively, before the application of any master netting agreements. Please refer to Note 18 and Table III above for fair value information.

Operating leases

Operating leases	12 Months Ended
	Dec. 31, 2015
Leases [Abstract]
Operating leases	Operating leases We lease certain computer and communications equipment, transportation equipment and other property through operating leases. Total rental expense for operating leases was $371 million , $391 million and $436 million for 2015 , 2014 and 2013 , respectively. Minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year are: Years ended December 31, (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter Total $ 237 $ 183 $ 140 $ 93 $ 68 $ 205 $ 926

Guarantees and product warranty

Guarantees and product warranty	12 Months Ended
	Dec. 31, 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 9). 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 December 31, 2015 and 2014 , the related liability was $12 million . The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees at December 31 are as follows: (Millions of dollars) 2015 2014 Caterpillar dealer performance guarantees $ 216 $ 209 Customer loan guarantees 47 49 Supplier consortium performance guarantee 286 321 Third party logistics business lease guarantees 107 129 Other guarantees 25 32 Total guarantees $ 681 $ 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 December 31, 2015 and 2014 , the SPC’s assets of $1,211 million and $1,086 million , respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1,210 million and $1,085 million , respectively, were primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial's creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. Cat Financial is party to agreements in the normal course of business with selected customers and Caterpillar dealers in which they commit to provide a set dollar amount of financing on a pre-approved basis. They also provide lines of credit to certain customers and Caterpillar dealers, of which a portion remains unused as of the end of the period. Commitments and lines of credit generally have fixed expiration dates or other termination clauses. It has been Cat Financial's experience that not all commitments and lines of credit will be used. Management applies the same credit policies when making commitments and granting lines of credit as it does for any other financing. Cat Financial does not require collateral for these commitments/lines, but if credit is extended, collateral may be required upon funding. The amount of the unused commitments and lines of credit for dealers as of December 31, 2015 and 2014 was $12,920 million and $12,412 million , respectively. The amount of the unused commitments and lines of credit for customers as of December 31, 2015 and 2014 was $3,567 million and $4,005 million , respectively. Our product warranty liability is determined by applying historical claim rate experience to the current field population and dealer inventory. Generally, historical claim rates are based on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). Specific rates are developed for each product shipment month and are updated monthly based on actual warranty claim experience. (Millions of dollars) 2015 2014 Warranty liability, January 1 $ 1,426 $ 1,367 Reduction in liability (payments) (874 ) (1,071 ) Increase in liability (new warranties) 802 1,130 1 Warranty liability, December 31 $ 1,354 $ 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.

Environmental and legal matters

Environmental and legal matters	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [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. 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. On December 8, 2015, the Company was notified by the SEC that it concluded its investigation relating to Caterpillar SARL and related structures and that it did not intend to recommend an enforcement action. 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.

Segment information

Segment information	12 Months Ended
	Dec. 31, 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 and 2013 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, mid-tier soil compactors and related parts. 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, track and rotary drills, highwall miners, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, continuous miners, scoops and haulers, hardrock continuous mining systems, select work tools, machinery components, electronics and control systems and related parts. 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, centrifugal gas compressors and 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 139 to 144 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows: • Corporate costs: These costs are related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. • Restructuring costs: Primarily costs for employee separations, long-lived asset impairments and contract terminations. In 2015, restructuring costs also include costs related to our restructuring programs. These costs were primarily for accelerated depreciation and inventory write-downs. A table, Reconciliation of Restructuring costs on page 141, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 26 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. Segment Information (Millions of dollars) Reportable Segments: 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 2015 Construction Industries $ 16,568 $ 193 $ 16,761 $ 481 $ 1,925 $ 5,480 $ 246 Resource Industries 7,551 353 7,904 641 (88 ) 8,602 281 Energy & Transportation 17,938 1,800 19,738 645 3,239 8,547 814 Machinery, Energy & Transportation $ 42,057 $ 2,346 $ 44,403 $ 1,767 $ 5,076 $ 22,629 $ 1,341 Financial Products Segment 3,078 — 3,078 848 809 35,765 1,465 Total $ 45,135 $ 2,346 $ 47,481 $ 2,615 $ 5,885 $ 58,394 $ 2,806 2014 Construction Industries $ 19,362 $ 250 $ 19,612 $ 522 $ 2,207 $ 6,596 $ 369 Resource Industries 8,921 431 9,352 685 404 9,497 277 Energy & Transportation 21,727 2,248 23,975 652 4,135 8,470 608 Machinery, Energy & Transportation $ 50,010 $ 2,929 $ 52,939 $ 1,859 $ 6,746 $ 24,563 $ 1,254 Financial Products Segment 3,313 — 3,313 885 901 37,011 1,634 Total $ 53,323 $ 2,929 $ 56,252 $ 2,744 $ 7,647 $ 61,574 $ 2,888 2013 Construction Industries $ 18,532 $ 330 $ 18,862 $ 493 $ 1,374 $ 7,607 $ 551 Resource Industries 11,805 432 12,237 693 1,572 10,340 499 Energy & Transportation 20,155 1,895 22,050 647 3,415 8,542 677 Machinery, Energy & Transportation $ 50,492 $ 2,657 $ 53,149 $ 1,833 $ 6,361 $ 26,489 $ 1,727 Financial Products Segment 3,224 — 3,224 789 990 36,980 1,806 Total $ 53,716 $ 2,657 $ 56,373 $ 2,622 $ 7,351 $ 63,469 $ 3,533 Reconciliation of Sales and Revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2015 Total external sales and revenues from reportable segments $ 42,057 $ 3,078 $ — $ 45,135 All Other operating segments 2,197 — — 2,197 Other (107 ) 101 (315 ) 1 (321 ) Total sales and revenues $ 44,147 $ 3,179 $ (315 ) $ 47,011 2014 Total external sales and revenues from reportable segments $ 50,010 $ 3,313 $ — $ 53,323 All Other operating segments 2,251 — — 2,251 Other (119 ) 73 (344 ) 1 (390 ) Total sales and revenues $ 52,142 $ 3,386 $ (344 ) $ 55,184 2013 Total external sales and revenues from reportable segments $ 50,492 $ 3,224 $ — $ 53,716 All Other operating segments 2,263 — — 2,263 Other (61 ) 78 (340 ) 1 (323 ) Total sales and revenues $ 52,694 $ 3,302 $ (340 ) $ 55,656 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 2015 Total profit from reportable segments $ 5,076 $ 809 $ 5,885 All Other operating segments 779 — 779 Cost centers 145 — 145 Corporate costs (1,682 ) — (1,682 ) Timing 94 — 94 Restructuring costs (891 ) (17 ) (908 ) Methodology differences: Inventory/cost of sales (100 ) — (100 ) Postretirement benefit expense (386 ) — (386 ) Financing costs (524 ) — (524 ) Equity in (profit) loss of unconsolidated affiliated companies (3 ) — (3 ) Currency (316 ) — (316 ) Other income/expense methodology differences (95 ) — (95 ) Other methodology differences (64 ) 30 (34 ) Total consolidated profit before taxes $ 2,033 $ 822 $ 2,855 2014 Total profit from reportable segments $ 6,746 $ 901 $ 7,647 All Other operating segments 850 — 850 Cost centers 38 — 38 Corporate costs (1,584 ) — (1,584 ) Timing (244 ) — (244 ) Restructuring costs (441 ) — (441 ) Methodology differences: Inventory/cost of sales 55 — 55 Postretirement benefit expense (411 ) — (411 ) Financing costs (502 ) — (502 ) Equity in (profit) loss of unconsolidated affiliated companies (8 ) — (8 ) Currency (52 ) — (52 ) Other income/expense methodology differences (249 ) — (249 ) Other methodology differences (24 ) 8 (16 ) Total consolidated profit before taxes $ 4,174 $ 909 $ 5,083 2013 Total profit from reportable segments $ 6,361 $ 990 $ 7,351 All Other operating segments 736 — 736 Cost centers 119 — 119 Corporate costs (1,368 ) — (1,368 ) Timing 116 — 116 Restructuring costs (200 ) — (200 ) Methodology differences: Inventory/cost of sales (112 ) — (112 ) Postretirement benefit expense (685 ) — (685 ) Financing costs (469 ) — (469 ) Equity in (profit) loss of unconsolidated affiliated companies 6 — 6 Currency (110 ) — (110 ) Other income/expense methodology differences (238 ) — (238 ) Other methodology differences (48 ) 30 (18 ) Total consolidated profit before taxes $ 4,108 $ 1,020 $ 5,128 Reconciliation of Restructuring costs: As noted above, restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. Had we included the amounts in the segments' results, the profit would have been as shown below: Reconciliation of Restructuring costs: (Millions of dollars) Segment profit Restructuring costs Segment profit with restructuring costs 2015 Construction Industries $ 1,925 $ (95 ) $ 1,830 Resource Industries (88 ) (305 ) (393 ) Energy & Transportation 3,239 (109 ) 3,130 Financial Products Segment 809 (17 ) 792 All Other operating segments 779 (157 ) 622 Total $ 6,664 $ (683 ) $ 5,981 2014 Construction Industries $ 2,207 $ (293 ) $ 1,914 Resource Industries 404 (72 ) 332 Energy & Transportation 4,135 (31 ) 4,104 Financial Products Segment 901 — 901 All Other operating segments 850 (36 ) 814 Total $ 8,497 $ (432 ) $ 8,065 2013 Construction Industries $ 1,374 $ (33 ) $ 1,341 Resource Industries 1,572 (105 ) 1,467 Energy & Transportation 3,415 (32 ) 3,383 Financial Products Segment 990 — 990 All Other operating segments 736 (27 ) 709 Total $ 8,087 $ (197 ) $ 7,890 Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2015 Total assets from reportable segments $ 22,629 $ 35,765 $ — $ 58,394 All Other operating segments 2,616 — — 2,616 Items not included in segment assets: Cash and short-term investments 5,340 — — 5,340 Intercompany receivables 1,087 — (1,087 ) — Investment in Financial Products 3,888 — (3,888 ) — Income taxes 3,775 — (852 ) 2,923 Goodwill and intangible assets 3,572 — — 3,572 Property, plant and equipment – net and other assets 1,184 — — 1,184 Operating lease methodology difference (213 ) — — (213 ) Liabilities included in segment assets 8,004 — — 8,004 Inventory methodology differences (2,646 ) — — (2,646 ) Other (566 ) (34 ) (77 ) (677 ) Total assets $ 48,670 $ 35,731 $ (5,904 ) $ 78,497 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 ) — Income taxes 3,627 — (674 ) 2,953 Goodwill and intangible assets 3,492 — — 3,492 Property, plant and equipment – net and other assets 1,174 — — 1,174 Operating lease methodology difference (213 ) — — (213 ) Liabilities included in segment assets 9,837 — — 9,837 Inventory methodology differences (2,697 ) — — (2,697 ) Other (395 ) (102 ) (69 ) (566 ) Total assets $ 54,188 $ 36,909 $ (6,416 ) $ 84,681 2013 Total assets from reportable segments $ 26,489 $ 36,980 $ — $ 63,469 All Other operating segments 2,973 — — 2,973 Items not included in segment assets: Cash and short-term investments 4,597 — — 4,597 Intercompany receivables 1,219 — (1,219 ) — Investment in Financial Products 4,798 — (4,798 ) — Income taxes 2,541 — (525 ) 2,016 Goodwill and intangible assets 3,582 — — 3,582 Property, plant and equipment – net and other assets 1,174 — — 1,174 Operating lease methodology difference (273 ) — — (273 ) Liabilities included in segment assets 10,357 — — 10,357 Inventory methodology differences (2,539 ) — — (2,539 ) Other (214 ) (135 ) (111 ) (460 ) Total assets $ 54,704 $ 36,845 $ (6,653 ) $ 84,896 Reconciliation of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total 2015 Total depreciation and amortization from reportable segments $ 1,767 $ 848 $ 2,615 Items not included in segment depreciation and amortization: All Other operating segments 276 — 276 Cost centers 156 — 156 Other (35 ) 34 (1 ) Total depreciation and amortization $ 2,164 $ 882 $ 3,046 2014 Total depreciation and amortization from reportable segments $ 1,859 $ 885 $ 2,744 Items not included in segment depreciation and amortization: All Other operating segments 279 — 279 Cost centers 149 — 149 Other (34 ) 25 (9 ) Total depreciation and amortization $ 2,253 $ 910 $ 3,163 2013 Total depreciation and amortization from reportable segments $ 1,833 $ 789 $ 2,622 Items not included in segment depreciation and amortization: All Other operating segments 305 — 305 Cost centers 151 — 151 Other (16 ) 25 9 Total depreciation and amortization $ 2,273 $ 814 $ 3,087 Reconciliation of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2015 Total capital expenditures from reportable segments $ 1,341 $ 1,465 $ — $ 2,806 Items not included in segment capital expenditures: All Other operating segments 276 — — 276 Cost centers 195 — — 195 Timing 37 — — 37 Other (219 ) 194 (28 ) (53 ) Total capital expenditures $ 1,630 $ 1,659 $ (28 ) $ 3,261 2014 Total capital expenditures from reportable segments $ 1,254 $ 1,634 $ — $ 2,888 Items not included in segment capital expenditures: All Other operating segments 331 — — 331 Cost centers 181 — — 181 Timing 21 — — 21 Other (146 ) 183 (79 ) (42 ) Total capital expenditures $ 1,641 $ 1,817 $ (79 ) $ 3,379 2013 Total capital expenditures from reportable segments $ 1,727 $ 1,806 $ — $ 3,533 Items not included in segment capital expenditures: All Other operating segments 452 — — 452 Cost centers 191 — — 191 Timing 363 — — 363 Other (128 ) 105 (70 ) (93 ) Total capital expenditures $ 2,605 $ 1,911 $ (70 ) $ 4,446 Enterprise-wide Disclosures: Information about Geographic Areas: Property, plant and equipment - net External sales and revenues 1 December 31, (Millions of dollars) 2015 2014 2013 2015 2014 Inside United States $ 19,218 $ 21,122 $ 18,579 $ 8,842 $ 8,714 Outside United States 27,793 34,062 37,077 7,248 7,863 Total $ 47,011 $ 55,184 $ 55,656 $ 16,090 $ 16,577 1 Sales of Machinery, Energy & Transportation are based on dealer or customer location. Revenues from services provided are based on where service is rendered.

Acquisitions

Acquisitions	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Acquisitions	Acquisitions RDS Manufacturing, Inc. In December 2015, we acquired 100 percent of the stock of RDS Manufacturing, Inc. (RDS). RDS, located in Broken Arrow, Oklahoma, is a privately owned manufacturer of highly engineered turbomachinery parts, primarily for the turbine engine and aerospace markets. The acquisition of RDS is expected to help grow our turbine business and deepen our manufacturing expertise. The purchase price, net of $1 million of acquired cash and $5 million of trade receivables due from Caterpillar, was approximately $85 million . We paid $74 million at closing with an additional $11 million to be paid in December 2017. The transaction was financed with available cash. Tangible assets acquired of $28 million , recorded at their fair values, were primarily inventories of $12 million and property, plant and equipment of $16 million . Liabilities assumed as of the acquisition date were $2 million , which represented their fair values. Goodwill of $59 million , substantially all of which is deductible for income tax purposes, represented the excess of the consideration transferred over the net assets recognized and represented the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Factors that contributed to a purchase price resulting in the recognition of goodwill include RDS’s strategic fit into our manufacturing and product portfolio and the acquired assembled workforce. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the Energy & Transportation segment. Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results. Rail Product Solutions, Inc. In October 2015, we acquired 100 percent of the stock in privately owned Rail Product Solutions, Inc. (RPS) from Amsted Rail Company, Inc. RPS is a leading North American provider of mission critical track fastening products and integrated fastening systems. The acquisition of RPS expands our portfolio of track related products and allows us to provide more comprehensive solutions to our customers. The purchase price was approximately $165 million , consisting of $166 million paid at closing less an estimated net working capital adjustment of $1 million anticipated to be finalized in 2016. The transaction was financed with available cash. Tangible assets acquired of $41 million , recorded at their fair values, were primarily receivables of $9 million , inventories of $6 million , property, plant and equipment of $17 million and an investment in an unconsolidated affiliated company of $9 million . Finite-lived intangible assets acquired of $82 million were primarily customer relationships and are being amortized on a straight-line basis over a weighted average period of approximately 15 years . Liabilities assumed as of the acquisition date were $11 million , which represented their fair values. Goodwill of $53 million , substantially all of which is deductible for income tax purposes, represented the excess of the consideration transferred over the net assets recognized and represented the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Factors that contributed to a purchase price resulting in the recognition of goodwill include RPS’s strategic fit into our product and services portfolio and the acquired assembled workforce. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the Energy & Transportation segment. Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results. Johan Walter Berg AB In September 2013, we acquired 100 percent of the stock of Johan Walter Berg AB (Berg). Berg is a leading manufacturer of mechanically and electrically driven propulsion systems and marine controls for ships. Headquartered in Öckerö Islands, Sweden, Berg has designed and manufactured heavy-duty marine thrusters and controllable pitch propellers since 1929. Its proprietary systems are employed in maritime applications throughout the world that require precise maneuvering and positioning. With the acquisition, Caterpillar will transition from selling only engines and generators to providing complete marine propulsion package systems. The purchase price, net of $9 million of acquired cash, was approximately $169 million . The purchase price included contingent consideration, payable in 2016. The contingent consideration was based on the revenues achieved by Berg in the period from January 1, 2013 to December 31, 2015 and had a fair value of approximately $7 million on the acquisition date. As of December 31, 2015, no payment is expected to be made. The transaction was financed with available cash. Tangible assets as of the acquisition date were $82 million , recorded at their fair values, and primarily included cash of $9 million , receivables of $13 million , inventories of $32 million and property, plant and equipment of $28 million . Finite-lived intangible assets acquired of $70 million included developed technology, customer relationships and trade names. The finite lived intangible assets are being amortized on a straight-line basis over a weighted-average amortization period of approximately 11 years . Liabilities assumed as of the acquisition date were $87 million , recorded at their fair values, and primarily included accounts payable of $19 million , customer advances of $31 million and net deferred tax liabilities of $15 million . Goodwill of $113 million , non-deductible for income tax purposes, represented the excess of the consideration transferred over the net assets recognized and represented the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Factors that contributed to a purchase price resulting in the recognition of goodwill include Berg’s strategic fit into our product portfolio, the opportunity to provide worldwide support to marine operators for a complete, optimized propulsion package, and the acquired assembled workforce. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the Energy & Transportation segment. Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results.

Divestitures

Divestitures	12 Months Ended
	Dec. 31, 2015
Divestitures
Divestitures	Divestitures Bucyrus Distribution Business Divestitures In conjunction with our acquisition of Bucyrus in July 2011, we announced our intention to sell the Bucyrus distribution business to Caterpillar dealers that support mining customers around the world in a series of individual transactions. Bucyrus predominantly employed a direct to end customer model to sell and support products. These transitions occurred in phases based on the mining business opportunity within each dealer territory and were substantially complete by the end of 2014. The portions of the Bucyrus distribution business that were sold did not qualify as discontinued operations because Caterpillar has significant continuing direct cash flows from the Caterpillar dealers after the divestitures. The gain or loss on disposal, along with the continuing operations of these disposal groups, has been reported in the Resource Industries segment. Goodwill was allocated to each disposal group using the relative fair value method. The value of the customer relationship intangibles related to each portion of the Bucyrus distribution business was included in the disposal groups. The disposal groups were recorded at the lower of their carrying value or fair value less cost to sell. In 2014 and 2013, we recorded asset impairment charges of $4 million and $11 million respectively, related to disposal groups being sold to Caterpillar dealers. Fair value was determined based upon the negotiated sales price. The impairments were recorded in Other operating (income) expenses and included in the Resource Industries segment. The portions of the distribution business that were sold were not material to our results of operations, financial position or cash flow. In 2014, we completed 32 sale transactions whereby we sold portions of the Bucyrus distribution business to Caterpillar dealers for an aggregate price of $199 million . For the full year 2014, after-tax profit was unfavorably impacted by $22 million as a result of the Bucyrus distribution divestiture activities. This is comprised of $21 million of income related to sales transactions, a net unfavorable adjustment of $14 million related to prior sale transactions (both included in Other operating (income) expenses), costs incurred related to the Bucyrus distribution divestiture activities of $25 million (included in Selling, general and administrative expenses) and income tax of $4 million . Assets sold in 2014 included customer relationship intangibles of $82 million , other assets of $24 million , which consisted primarily of inventory and fixed assets, and allocated goodwill of $63 million related to the divested portions of the Bucyrus distribution business. As part of the 2014 divestitures, Cat Financial provided $20 million of financing to two of the Caterpillar dealers. In 2013, we completed 19 sale transactions whereby we sold portions of the Bucyrus distribution business to Caterpillar dealers for an aggregate price of $467 million . For the full year 2013, after-tax profit was unfavorably impacted by $39 million as a result of the Bucyrus distribution divestiture activities. This is comprised of $95 million of income related to sales transactions, a $34 million unfavorable adjustment due to a change in estimate to increase the reserve for parts returns related to prior sale transactions (both included in Other operating (income) expenses), costs incurred related to the Bucyrus distribution divestiture activities of $104 million (included in Selling, general and administrative expenses) and an income tax benefit of $4 million . Assets sold in 2013 included customer relationship intangibles of $127 million , other assets of $65 million , which consisted primarily of inventory and fixed assets, and allocated goodwill of $56 million related to the divested portions of the Bucyrus distribution business. As part of the 2013 divestitures, Cat Financial provided $132 million of financing to five of the Caterpillar dealers.

Restructuring Costs

Restructuring Costs	12 Months Ended
	Dec. 31, 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. Restructuring costs for 2015 , 2014 and 2013 were $908 million , $441 million and $200 million , respectively. The 2015 restructuring costs included $641 million of employee separation costs, $127 million of long-lived asset impairments and $92 million of defined benefit retirement plan curtailment and settlement losses and were recognized in Other operating (income) expense. In addition, in 2015 we incurred costs related to our restructuring programs of $48 million . These costs were primarily for accelerated depreciation and inventory write-downs and were recognized primarily in Cost of goods sold. The 2014 restructuring costs included $382 million of employee separation costs, $48 million of long-lived asset impairments and $11 million of defined benefit retirement plan curtailment and settlement losses. The 2013 restructuring costs included $151 million of employee separation costs, $41 million of long-lived asset impairments and $8 million of other costs. Restructuring costs for 2014 and 2013 were recognized in Other operating (income) expense. The restructuring costs in 2015 were primarily related to several restructuring programs across the company. The restructuring costs in 2014 were primarily related to a reduction in workforce at our Gosselies, Belgium, facility. The most significant charges in 2013 were for the restructuring of management and support functions and the closure or downsizing of several facilities related to our mining business. Restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. See Note 23 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) (289 ) Liability balance at December 31, 2014 $ 182 Increase in liability (separation charges) 641 Reduction in liability (payments) (340 ) Liability balance at December 31, 2015 $ 483 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. In 2015, we recognized $24 million of employee separation costs relating to this restructuring plan. We do not expect any further costs associated with this program. In September 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, various voluntary separation programs outside of the U.S. and implemented additional involuntary separation programs throughout the company. We have eliminated approximately 5,000 positions since then, with about 3,000 employees separated by December 31, 2015 and the other 2,100 employees electing to take the voluntary retirement enhancement program in the U.S. and leave the company January 1, 2016. We incurred $379 million of employee separation costs and $86 million of defined benefit retirement plan curtailment losses related to these programs. Substantially all of the employee separation costs related to this program are included in the liability balance above and will be paid in the first quarter of 2016. The remaining liability balance as of December 31, 2015 represents costs for other employee separation programs, most of which are expected to be paid in 2016 . The remaining restructuring costs incurred during 2015 were primarily related to closure and consolidation of numerous manufacturing facilities throughout the company.

Selected quarterly financial re

Selected quarterly financial results (unaudited)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial results (unaudited)	Selected quarterly financial results (unaudited) 2015 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 12,702 $ 12,317 $ 10,962 $ 11,030 Less: Revenues (741 ) (734 ) (677 ) (712 ) Sales 11,961 11,583 10,285 10,318 Cost of goods sold 8,843 8,762 7,954 8,183 Gross margin 3,118 2,821 2,331 2,135 Profit (loss) 1 $ 1,111 $ 710 $ 368 $ (87 ) 4 Profit (loss) per common share $ 1.84 $ 1.18 $ 0.63 $ (0.15 ) Profit (loss) per common share–diluted 2,3 $ 1.81 $ 1.16 $ 0.62 $ (0.15 ) 2014 Quarter 1st 2nd 3rd 4th Sales and revenues $ 13,241 $ 14,150 $ 13,549 $ 14,244 Less: Revenues (748 ) (759 ) (791 ) (744 ) Sales 12,493 13,391 12,758 13,500 Cost of goods sold 9,437 10,197 9,634 10,499 Gross margin 3,056 3,194 3,124 3,001 Profit (loss) 1 $ 922 $ 999 $ 1,017 $ 757 Profit (loss) per common share $ 1.47 $ 1.60 $ 1.66 $ 1.25 Profit (loss) per common share–diluted 2 $ 1.44 $ 1.57 $ 1.63 $ 1.23 1 Profit (loss) attributable to common stockholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. 3 In the fourth quarter 2015, the assumed exercise of stock-based compensation awards was not considered because the impact would be anti-dilutive. 4 The fourth quarter of 2015 includes restructuring costs of $682 million . See Note 26 for additional information on these costs.

Operations and summary of sig37

Operations and summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation, Policy	B. Basis of presentation The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. See Note 9 for further discussion. We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the economic performance of each entity. Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: December 31, (Millions of dollars) 2015 2014 Receivables - trade and other $ 19 $ 36 Receivables - finance 466 216 Long-term receivables - finance 62 285 Investments in unconsolidated affiliated companies 35 83 Guarantees 175 129 Total $ 757 $ 749 Shipping and handling costs are included in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation of equipment leased to others, Insurance Services’ underwriting expenses, gains (losses) on disposal of long-lived assets and business divestitures, long-lived asset impairment charges, legal settlements and accruals, employee separation charges and benefit plan curtailments and settlement gains (losses). Prepaid expenses and other current assets in Statement 3 include prepaid rent, prepaid insurance, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments, and other prepaid items. Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation.
Sales and Revenue Recognition, Policy	C. Sales and revenue recognition Sales of Machinery, Energy & Transportation are recognized and earned when all the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) price is fixed and determinable; (c) collectibility is reasonably assured; and (d) delivery has occurred. Persuasive evidence of an arrangement and a fixed or determinable price exist once we receive an order or contract from a customer or independently owned and operated dealer. We assess collectibility at the time of the sale and if collectibility is not reasonably assured, the sale is deferred and not recognized until collectibility is probable or payment is received. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when the product is shipped. Products that are exported from a country for sale typically pass title and risk of ownership at the border of the destination country. Sales of certain turbine machinery units, draglines and long wall roof supports are recognized under accounting for construction-type contracts, primarily using the percentage-of-completion method. Revenue is recognized based upon progress towards completion, which is estimated and continually updated over the course of construction. We provide for any loss that we expect to incur on these contracts when that loss is probable. Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, used engines and related components (core) are inspected, cleaned and remanufactured. In connection with the sale of most of our remanufactured product, we collect a deposit from the dealer that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and customers. Revenue is recognized pursuant to the same criteria as Machinery, Energy & Transportation sales noted above (title to the entire remanufactured product passes to the dealer upon sale). At the time of sale, the deposit is recognized in Other current liabilities in Statement 3. In addition, the core to be returned is recognized as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with useable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. The returned core is then included in inventory. In the event that the deposit is forfeited (i.e. upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. No right of return exists on sales of equipment. Replacement part returns are estimable and accrued at the time a sale is recognized. We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. The cost of these discounts is estimated based on historical experience and known changes in merchandising programs and is reported as a reduction to sales when the product sale is recognized. Our standard dealer invoice terms are established by marketing region. Our invoice terms for end-user customer sales are established by the responsible business unit. When a sale is made to a dealer, the dealer is responsible for payment even if the product is not sold to an end customer. Dealers and customers must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In 2015 , 2014 and 2013 terms were extended to not more than one year for $635 million , $624 million and $706 million of receivables, respectively, which represent approximately 1 percent of consolidated sales. We establish a bad debt allowance for Machinery, Energy & Transportation receivables when it becomes probable that the receivable will not be collected. Our allowance for bad debts is not significant. Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and rental revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed, and previously suspended income is recognized, when the account becomes current and collection of remaining amounts is considered probable. See Note 6 for more information. Sales and revenues are presented net of sales and other related taxes.
Inventories, Policy	D. Inventories Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2015 and 2014 . If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,498 million and $2,430 million higher than reported at December 31, 2015 and 2014 , respectively.
Depreciation and Amortization, Policy	E. Depreciation and amortization Depreciation of plant and equipment is computed principally using accelerated methods. Depreciation on equipment leased to others, primarily for Financial Products, is computed using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2015 , 2014 and 2013 , Cat Financial depreciation on equipment leased to others was $836 million , $872 million and $768 million , respectively, and was included in Other operating (income) expenses in Statement 1. In 2015 , 2014 and 2013 , consolidated depreciation expense was $2,705 million , $2,795 million and $2,710 million , respectively. Amortization of purchased finite-lived intangibles is computed principally using the straight-line method, generally not to exceed a period of 20 years .
Foreign Currency Translation, Policy	F. Foreign currency translation The functional currency for most of our Machinery, Energy & Transportation consolidated companies is the U.S. dollar. The functional currency for most of our Financial Products and affiliates accounted for under the equity method is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in Statement 1. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income (loss) in Statement 3.
Derivative Financial Instruments, Policy	G. Derivative financial instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option, and cross currency contracts, interest rate swaps, and commodity forward and option contracts. All derivatives are recorded at fair value. See Note 3 for more information.
Income Taxes, Policy	H. Income taxes The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.
Goodwill, Policy	I. Goodwill For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate the fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, goodwill is reassigned to the affected reporting units based on their relative fair values. We test goodwill for impairment annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing either a qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit’s goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the two-step process, the first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, there is an indication that an impairment may exist and the second step is required. In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. See Note 10 for further details.
Estimates in Financial Statements, Policy	J. Estimates in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets, fair values for goodwill impairment tests, impairment of available-for-sale securities, warranty liability, stock-based compensation and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes.

Derivative financial instrume38

Derivative financial instruments and risk management (Policies)	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Risk Management, Policy	A. Foreign currency exchange rate risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our Machinery, Energy & Transportation operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to five years . As of December 31, 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, Swiss franc, or Thailand baht 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 December 31, 2015 , $8 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), are expected to be reclassified to current earnings (Other income (expense) in Statement 1) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Substantially all such foreign currency forward, option and cross currency contracts are undesignated. B. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate derivatives to manage our exposure to interest rate changes. Our Machinery, Energy & Transportation operations generally use fixed rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate swaps and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate swaps as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract. As of December 31, 2015 , $4 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in Statement 1) over the next twelve months. Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate) of Cat Financial’s debt portfolio with the interest rate profile of their receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate swaps to meet the match-funding objective. We designate fixed-to-floating interest rate swaps as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate swaps as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. As of December 31, 2015 , less than $1 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in Statement 1) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery, Energy & Transportation and Financial Products. The gains or losses associated with these swaps at the time of liquidation are amortized into earnings over the original term of the previously designated hedged item. C. Commodity price risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw material. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our Machinery, Energy & Transportation operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five -year horizon. All such commodity forward and option contracts are undesignated.

Operations and summary of sig39

Operations and summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2015
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]
Schedule of Maximum Exposure to Loss from Variable Interest Entities	Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: December 31, (Millions of dollars) 2015 2014 Receivables - trade and other $ 19 $ 36 Receivables - finance 466 216 Long-term receivables - finance 62 285 Investments in unconsolidated affiliated companies 35 83 Guarantees 175 129 Total $ 757 $ 749

Stock-based compensation (Table

Stock-based compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule providing assumptions used in determining the fair value of stock-based awards	The following table provides the assumptions used in determining the fair value of the stock-based awards for the years ended December 31, 2015 , 2014 and 2013 , respectively. Grant Year 2015 2014 2013 Weighted-average dividend yield 2.3 % 2.2 % 2.1 % Weighted-average volatility 28.4 % 28.2 % 30.6 % Range of volatilities 19.9-35.9% 18.4-36.2% 23.4-40.6% Range of risk-free interest rates 0.22-2.08% 0.12-2.60% 0.16-1.88% Weighted-average expected lives 8 years 8 years 8 years
Schedule of stock-based compensation activity	Please refer to Tables I and II below for additional information on our stock-based awards. TABLE I — Financial Information Related to Stock-based Compensation Stock options / SARs RSUs PRSUs Shares Weighted- Average Exercise Price Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 34,581,083 $ 74.48 4,084,136 $ 91.92 — $ — Granted to officers and key employees 1 7,939,497 $ 83.34 1,690,661 $ 77.55 132,068 $ 77.47 Exercised (3,513,271 ) $ 57.37 — $ — — $ — Vested — $ — (1,350,457 ) $ 102.63 — $ — Forfeited / expired (668,784 ) $ 76.78 (93,827 ) $ 84.28 — $ — Outstanding at December 31, 2015 38,338,525 $ 77.84 4,330,513 $ 83.14 132,068 $ 77.47 Exercisable at December 31, 2015 24,807,381 $ 72.26 Stock options/SARs outstanding and exercisable as of December 31, 2015: Outstanding Exercisable Exercise Prices Shares Outstanding at 12/31/15 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 Shares Outstanding at 12/31/15 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 $22.17 - 57.85 8,293,122 3.79 $ 44.29 $ 196 8,293,122 3.79 $ 44.29 $ 196 $63.04 - 73.20 7,876,270 1.15 $ 70.12 10 7,876,270 1.15 $ 70.12 10 $83.00 - 86.77 7,433,988 9.08 $ 83.05 — 520,547 9.18 $ 83.00 — $88.51 - 96.31 8,872,548 7.49 $ 92.88 — 2,254,845 6.78 $ 91.53 — $102.13 - 110.09 5,862,597 5.71 $ 106.31 — 5,862,597 5.71 $ 106.31 — 38,338,525 $ 77.84 $ 206 24,807,381 $ 72.26 $ 206 1 No SARs were granted during the year ended December 31, 2015 . 2 The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2015 , for awards with market price greater than the exercise price. Amounts are in millions of dollars.
Schedule of financial information related to stock-based compensation	TABLE II— Additional Stock-based Award Information (Dollars in millions except per share data) 2015 2014 2013 Stock options/SARs activity: Weighted-average fair value per share of stock awards granted $ 23.61 $ 29.52 $ 28.34 Intrinsic value of stock awards exercised $ 93 $ 649 $ 312 Fair value of stock awards vested 1 $ 155 $ 108 $ 167 Cash received from stock awards exercised $ 59 $ 259 $ 152 RSUs activity: Weighted-average fair value per share of stock awards granted $ 77.55 $ 89.18 $ 84.05 Fair value of stock awards vested 2 $ 109 $ 106 $ 117 PRSUs activity: Weighted-average fair value per share of stock awards granted $ 77.47 $ — $ — Fair value of stock awards vested 2 $ — $ — $ — 1 Based on the grant date fair value. 2 Based on the underlying stock's closing market price on the vesting date.

Derivative financial instrume41

Derivative financial instruments and risk management (Tables)	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Financial Position	The location and fair value of derivative instruments reported in Statement 3 are as follows: Consolidated Statement of Financial Position Location Asset (Liability) Fair Value (Millions of dollars) Years ended December 31, 2015 2014 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 12 $ 25 Machinery, Energy & Transportation Accrued expenses (25 ) (134 ) Interest rate contracts Financial Products Receivables — trade and other 1 6 Financial Products Long-term receivables — trade and other 51 73 Financial Products Accrued expenses (4 ) (8 ) $ 35 $ (38 ) Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 2 $ 2 Machinery, Energy & Transportation Accrued expenses (9 ) (43 ) Financial Products Receivables — trade and other 3 5 Financial Products Long-term receivables — trade and other 36 17 Financial Products Accrued expenses (6 ) (15 ) Commodity contracts Machinery, Energy & Transportation Accrued expenses (12 ) (14 ) $ 14 $ (48 )
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments are as follows: Years ended December 31, (Millions of dollars) 2015 2014 Machinery, Energy & Transportation $ 2,040 $ 3,128 Financial Products $ 3,539 $ 5,249
Effect of derivatives designated as hedging instruments on Consolidated Results of Operations	The effect of derivatives designated as hedging instruments on Statement 1 is as follows: Fair Value Hedges Year ended December 31, 2015 (Millions of dollars) Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (27 ) $ 26 $ (27 ) $ 26 Year ended December 31, 2014 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (41 ) $ 23 $ (41 ) $ 23 Year ended December 31, 2013 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (107 ) $ 114 $ (107 ) $ 114 Cash Flow Hedges (Millions of dollars) Year ended December 31, 2015 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (33 ) Other income (expense) $ (128 ) $ — Financial Products — Other income (expense) 1 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (6 ) — Financial Products 3 Interest expense of Financial Products (6 ) — $ (30 ) $ (139 ) $ — Year ended December 31, 2014 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (118 ) Other income (expense) $ 5 $ — Interest rate contracts Machinery, Energy & Transportation (63 ) Interest expense excluding Financial Products (5 ) — Financial Products (6 ) Interest expense of Financial Products (6 ) — $ (187 ) $ (6 ) $ — Year ended December 31, 2013 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (4 ) Other income (expense) $ (57 ) 2 $ — Interest rate contracts Machinery, Energy & Transportation — Other income (expense) (3 ) — Financial Products (2 ) Interest expense of Financial Products (6 ) 1 1 $ (6 ) $ (66 ) $ 1 1 The ineffective portion recognized in earnings is included in Other income (expense). 2 Includes $3 million of losses reclassified from AOCI to Other income (expense) in 2013 as certain derivatives were dedesignated as the related transactions are no longer probable to occur.
Effect of derivatives not designated as hedging instruments on the Consolidated Results of Operations	The effect of derivatives not designated as hedging instruments on Statement 1 is as follows: Years ended December 31, (Millions of dollars) Classification of Gains (Losses) 2015 2014 2013 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ (32 ) $ (60 ) $ 17 Financial Products Other income (expense) (34 ) (47 ) 8 Interest rate contracts Machinery, Energy & Transportation Other income (expense) 2 2 (1 ) Financial Products Other income (expense) — — (3 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (23 ) (15 ) (3 ) $ (87 ) $ (120 ) $ 18
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: December 31, 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 $ 14 $ — $ 14 $ (14 ) $ — $ — Financial Products 91 — 91 (5 ) — 86 Total $ 105 $ — $ 105 $ (19 ) $ — $ 86 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, 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 $ (46 ) $ — $ (46 ) $ 14 $ — $ (32 ) Financial Products (10 ) — (10 ) 5 — (5 ) Total $ (56 ) $ — $ (56 ) $ 19 $ — $ (37 ) December 31, 2014 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amount of Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Pledged Net Amount of Liabilities Derivatives Machinery, Energy & Transportation $ (191 ) $ — $ (191 ) $ 27 $ — $ (164 ) Financial Products (23 ) — (23 ) 8 — (15 ) Total $ (214 ) $ — $ (214 ) $ 35 $ — $ (179 )

Other income (expense) (Tables)

Other income (expense) (Tables)	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
Other income (expense)	Years ended December 31, (Millions of dollars) 2015 2014 2013 Investment and interest income $ 65 $ 66 $ 84 Foreign exchange gains (losses) 1 (228 ) 54 (254 ) License fee income 111 128 114 Gains (losses) on sale of securities and affiliated companies 176 2 36 21 Miscellaneous income (loss) (18 ) (45 ) — Total $ 106 $ 239 $ (35 ) 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 3 for further details. 2 Includes pretax gain of $120 million related to the sale of Caterpillar's 35 percent equity interest in the third party logistics business. See Note 9 for further details.

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Components of profit (loss) before taxes	The components of profit before taxes were: Years ended December 31, (Millions of dollars) 2015 2014 2013 U.S. $ 241 $ 2,022 $ 1,938 Non-U.S. 2,614 3,061 3,190 $ 2,855 $ 5,083 $ 5,128
Components of the provision (benefit) for income taxes	The components of the provision (benefit) for income taxes were: Years ended December 31, (Millions of dollars) 2015 2014 2013 Current tax provision (benefit): U.S. 1 $ 525 $ 715 $ 407 Non-U.S. 656 883 805 State (U.S.) 42 48 33 1,223 1,646 1,245 Deferred tax provision (benefit): U.S. 1 (501 ) (167 ) 79 Non-U.S. 38 (77 ) (7 ) State (U.S.) (18 ) (22 ) 2 (481 ) (266 ) 74 Total provision (benefit) for income taxes $ 742 $ 1,380 $ 1,319 1 Includes U.S. taxes related to non-U.S. profits.
Reconciliation of the U.S. federal statutory rate to effective rate	Reconciliation of the U.S. federal statutory rate to effective rate: Years ended December 31, (Millions of dollars) 2015 2014 2013 Taxes at U.S. statutory rate $ 999 35.0 % $ 1,779 35.0 % $ 1,795 35.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than 35% (198 ) (6.9 )% (249 ) (4.9 )% (268 ) (5.2 )% State and local taxes, net of federal 16 0.5 % 17 0.3 % 23 0.4 % Interest and penalties, net of tax 12 0.4 % 12 0.2 % 4 0.1 % U.S. research and production incentives (95 ) (3.3 )% (125 ) (2.4 )% (91 ) (1.8 )% Other—net (34 ) (1.2 )% (10 ) (0.2 )% (2 ) — % 700 24.5 % 1,424 28.0 % 1,461 28.5 % Prior year tax and interest adjustments 42 1.5 % (21 ) (0.4 )% (55 ) (1.1 )% Release of valuation allowances — — % (23 ) (0.5 )% — — % Tax law changes — — % — — % (87 ) (1.7 )% Provision (benefit) for income taxes $ 742 26.0 % $ 1,380 27.1 % $ 1,319 25.7 %
Deferred income tax assets and liabilities	The amount of deferred income taxes at December 31, included on the following lines in Statement 3, are as follows: December 31, (Millions of dollars) 2015 2014 Assets: Deferred and refundable income taxes $ 910 $ 992 Noncurrent deferred and refundable income taxes 1,532 1,267 2,442 2,259 Liabilities: Other current liabilities 59 62 Other liabilities 351 414 Deferred income taxes—net $ 2,032 $ 1,783 Deferred income tax assets and liabilities: December 31, (Millions of dollars) 2015 2014 Deferred income tax assets: Pension $ 1,694 $ 1,513 Postemployment benefits other than pensions 1,339 1,514 Tax carryforwards 1,098 826 Warranty reserves 359 346 Stock-based compensation 356 327 Inventory 129 123 Allowance for credit losses 203 198 Post sale discounts 185 175 Deferred compensation 124 132 Other—net 572 549 6,059 5,703 Deferred income tax liabilities: Capital and intangible assets (2,561 ) (2,625 ) Bond discount (225 ) (233 ) Translation (343 ) (252 ) Undistributed profits of non-U.S. subsidiaries (82 ) (69 ) (3,211 ) (3,179 ) Valuation allowance for deferred tax assets (816 ) (741 ) Deferred income taxes—net $ 2,032 $ 1,783
Summary of net operating loss carryforwards	At December 31, 2015 , amounts and expiration dates of net operating loss carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2016 2017 2018 2019-2021 2022-2036 Unlimited Total $ 1 $ 3 $ 84 $ 547 $ 222 $ 1,780 $ 2,637
Reconciliation of unrecognized tax benefits	Reconciliation of unrecognized tax benefits: 1 Years ended December 31, (Millions of dollars) 2015 2014 Balance at January 1, $ 846 $ 759 Additions for tax positions related to current year 73 58 Additions for tax positions related to prior years 118 84 Reductions for tax positions related to prior years (30 ) (31 ) Reductions for settlements 2 (30 ) (18 ) Reductions for expiration of statute of limitations (9 ) (6 ) Balance at December 31, $ 968 $ 846 Amount that, if recognized, would impact the effective tax rate $ 934 $ 804 1 Foreign currency impacts are included within each line as applicable. 2 Includes cash payment or other reduction of assets to settle liability.

Cat Financial Financing Activ44

Cat Financial Financing Activities (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Contractual maturities of outstanding wholesale inventory receivables	Contractual maturities of outstanding wholesale inventory receivables: (Millions of dollars) December 31, 2015 Amounts Due In Wholesale Installment Contracts Wholesale Finance Leases Wholesale Notes Total 2016 $ 174 $ 88 $ 1,030 $ 1,292 2017 98 78 236 412 2018 71 55 161 287 2019 37 28 5 70 2020 15 10 2 27 Thereafter 2 2 — 4 397 261 1,434 2,092 Guaranteed residual value — 62 — 62 Unguaranteed residual value — 50 — 50 Less: Unearned income (7 ) (29 ) (3 ) (39 ) Total $ 390 $ 344 $ 1,431 $ 2,165
Contractual maturities of outstanding finance receivables	Contractual maturities of outstanding finance receivables: (Millions of dollars) December 31, 2015 Amounts Due In Retail Installment Contracts Retail Finance Leases Retail Notes Total 2016 $ 2,472 $ 2,508 $ 4,132 $ 9,112 2017 1,923 1,634 1,937 5,494 2018 1,300 922 1,447 3,669 2019 662 415 1,022 2,099 2020 188 166 926 1,280 Thereafter 8 98 976 1,082 6,553 5,743 10,440 22,736 Guaranteed residual value — 307 — 307 Unguaranteed residual value — 642 — 642 Less: Unearned income (133 ) (505 ) (88 ) (726 ) Total $ 6,420 $ 6,187 $ 10,352 $ 22,959
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2015 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 388 $ 10 $ 398 Receivables written off (196 ) — (196 ) Recoveries on receivables previously written off 41 — 41 Provision for credit losses 119 (1 ) 118 Other (25 ) — (25 ) Balance at end of year $ 327 $ 9 $ 336 Individually evaluated for impairment $ 65 $ — $ 65 Collectively evaluated for impairment 262 9 271 Ending Balance $ 327 $ 9 $ 336 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 601 $ — $ 601 Collectively evaluated for impairment 18,788 3,570 22,358 Ending Balance $ 19,389 $ 3,570 $ 22,959 (Millions of dollars) December 31, 2014 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 365 $ 10 $ 375 Receivables written off (151 ) — (151 ) Recoveries on receivables previously written off 47 — 47 Provision for credit losses 150 — 150 Other (23 ) — (23 ) Balance at end of year $ 388 $ 10 $ 398 Individually evaluated for impairment $ 75 $ — $ 75 Collectively evaluated for impairment 313 10 323 Ending Balance $ 388 $ 10 $ 398 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 613 $ — $ 613 Collectively evaluated for impairment 19,899 3,554 23,453 Ending Balance $ 20,512 $ 3,554 $ 24,066
Aging related to loans and finance leases	In determining past-due status, Cat Financial considers the entire finance receivable balance past due when any installment is over 30 days past due. The tables below summarize the recorded investment of finance receivables by aging category. (Millions of dollars) December 31, 2015 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 $ 45 $ 12 $ 30 $ 87 $ 7,850 $ 7,937 $ 4 Europe 18 7 44 69 2,358 2,427 9 Asia Pacific 21 12 21 54 1,647 1,701 6 Mining 6 1 68 75 1,793 1,868 1 Latin America 45 31 199 275 1,998 2,273 — Caterpillar Power Finance — 1 35 36 3,147 3,183 2 Dealer North America — — — — 2,209 2,209 — Europe — — — — 149 149 — Asia Pacific — — — — 552 552 — Mining — — — — 4 4 — Latin America — — — — 653 653 — Caterpillar Power Finance — — — — 3 3 — Total $ 135 $ 64 $ 397 $ 596 $ 22,363 $ 22,959 $ 22 (Millions of dollars) December 31, 2014 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
Impaired finance receivables	Cat Financial’s recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: December 31, 2015 December 31, 2014 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Unpaid Principal Balance Related Impaired Finance Receivables With No Allowance Recorded North America $ 12 $ 12 $ — $ 14 $ 14 $ — Europe 41 41 — 44 43 — Asia Pacific 1 1 — 1 1 — Mining 84 84 — 29 29 — Latin America 28 28 — 34 34 — Caterpillar Power Finance 242 241 — 129 128 — Total $ 408 $ 407 $ — $ 251 $ 249 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 14 $ 13 $ 4 $ 6 $ 6 $ 1 Europe 11 10 5 12 12 4 Asia Pacific 34 34 4 29 29 8 Mining 11 11 3 138 137 9 Latin America 53 53 21 42 42 12 Caterpillar Power Finance 70 70 28 135 134 41 Total $ 193 $ 191 $ 65 $ 362 $ 360 $ 75 Total Impaired Finance Receivables North America $ 26 $ 25 $ 4 $ 20 $ 20 $ 1 Europe 52 51 5 56 55 4 Asia Pacific 35 35 4 30 30 8 Mining 95 95 3 167 166 9 Latin America 81 81 21 76 76 12 Caterpillar Power Finance 312 311 28 264 262 41 Total $ 601 $ 598 $ 65 $ 613 $ 609 $ 75 Years ended December 31, 2015 2014 2013 (Millions of dollars) Average Recorded Investment Interest Average Recorded Investment Interest Average Recorded Investment Interest Impaired Finance Receivables With No Allowance Recorded North America $ 12 $ 1 $ 20 $ 1 $ 25 $ 3 Europe 42 1 47 1 49 1 Asia Pacific 2 — 3 — 4 — Mining 75 3 69 3 61 3 Latin America 31 — 30 — 11 — Caterpillar Power Finance 170 5 164 6 271 5 Total $ 332 $ 10 $ 333 $ 11 $ 421 $ 12 Impaired Finance Receivables With An Allowance Recorded North America $ 9 $ — $ 9 $ — $ 18 $ 1 Europe 14 1 21 1 22 1 Asia Pacific 35 2 22 1 18 1 Mining 39 1 90 7 1 — Latin America 56 3 36 1 44 2 Caterpillar Power Finance 115 3 96 2 135 1 Total $ 268 $ 10 $ 274 $ 12 $ 238 $ 6 Total Impaired Finance Receivables North America $ 21 $ 1 $ 29 $ 1 $ 43 $ 4 Europe 56 2 68 2 71 2 Asia Pacific 37 2 25 1 22 1 Mining 114 4 159 10 62 3 Latin America 87 3 66 1 55 2 Caterpillar Power Finance 285 8 260 8 406 6 Total $ 600 $ 20 $ 607 $ 23 $ 659 $ 18
Investment in loans and finance leases on non-accrual status	The investment in customer finance receivable on non-accrual status was as follows: December 31, (Millions of dollars) 2015 2014 North America $ 31 $ 27 Europe 39 28 Asia Pacific 15 54 Mining 106 62 Latin America 217 201 Caterpillar Power Finance 77 96 Total $ 485 $ 468
Loans and finance receivables modified as TDRs	TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2015 , 2014 and 2013 which had been modified within twelve months prior to the default date, were as follows: (Millions of dollars) Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Number Post-TDR Number Post-TDR Number Post-TDR North America 12 $ 1 11 $ 1 19 $ 4 Europe — — 46 2 5 — Latin America 12 1 11 1 — — Caterpillar Power Finance — — — — 2 3 Total 24 $ 2 68 $ 4 26 $ 7 Finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2015 , 2014 and 2013 were as follows: (Millions of dollars) Year ended December 31, 2015 Number of Contracts Pre-TDR Post-TDR North America 14 $ 1 $ 1 Europe 23 2 2 Asia Pacific 21 26 26 Mining 4 65 65 Latin America 11 1 2 Caterpillar Power Finance 21 259 242 Total 94 $ 354 $ 338 Year ended December 31, 2014 Number of Contracts Pre-TDR Post-TDR North America 34 $ 12 $ 7 Europe 8 7 7 Asia Pacific 2 — — Mining 51 185 176 Latin America 51 32 31 Caterpillar Power Finance 18 137 139 Total 164 $ 373 $ 360 Year ended December 31, 2013 Number of Contracts Pre-TDR Post-TDR North America 62 $ 9 $ 9 Europe 51 7 7 Asia Pacific 3 1 1 Mining 45 123 123 Latin America 16 2 2 Caterpillar Power Finance 1 17 153 157 Total 194 $ 295 $ 299 1 During the year ended December 31, 2013, $25 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented.
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 years ended December 31, 2015 , 2014 and 2013 which had been modified within twelve months prior to the default date, were as follows: (Millions of dollars) Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Number Post-TDR Number Post-TDR Number Post-TDR North America 12 $ 1 11 $ 1 19 $ 4 Europe — — 46 2 5 — Latin America 12 1 11 1 — — Caterpillar Power Finance — — — — 2 3 Total 24 $ 2 68 $ 4 26 $ 7 Finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2015 , 2014 and 2013 were as follows: (Millions of dollars) Year ended December 31, 2015 Number of Contracts Pre-TDR Post-TDR North America 14 $ 1 $ 1 Europe 23 2 2 Asia Pacific 21 26 26 Mining 4 65 65 Latin America 11 1 2 Caterpillar Power Finance 21 259 242 Total 94 $ 354 $ 338 Year ended December 31, 2014 Number of Contracts Pre-TDR Post-TDR North America 34 $ 12 $ 7 Europe 8 7 7 Asia Pacific 2 — — Mining 51 185 176 Latin America 51 32 31 Caterpillar Power Finance 18 137 139 Total 164 $ 373 $ 360 Year ended December 31, 2013 Number of Contracts Pre-TDR Post-TDR North America 62 $ 9 $ 9 Europe 51 7 7 Asia Pacific 3 1 1 Mining 45 123 123 Latin America 16 2 2 Caterpillar Power Finance 1 17 153 157 Total 194 $ 295 $ 299 1 During the year ended December 31, 2013, $25 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented.

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories (principally using the LIFO method) are comprised of the following: December 31, (Millions of dollars) 2015 2014 Raw materials $ 2,467 $ 2,986 Work-in-process 1,857 2,455 Finished goods 5,122 6,504 Supplies 254 260 Total inventories $ 9,700 $ 12,205

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property, plant and equipment	December 31, (Millions of dollars) Useful Lives (Years) 2015 2014 Land — $ 644 $ 665 Buildings and land improvements 20-45 7,242 7,119 Machinery, equipment and other 3-10 15,686 15,516 Software 3-7 1,636 1,455 Equipment leased to others 1-10 5,728 5,596 Construction-in-process — 1,041 1,221 Total property, plant and equipment, at cost 31,977 31,572 Less: Accumulated depreciation (15,887 ) (14,995 ) Property, plant and equipment–net $ 16,090 $ 16,577
Assets recorded under capital leases	Assets recorded under capital leases: 1 December 31, (Millions of dollars) 2015 2014 Gross capital leases 2 $ 124 $ 111 Less: Accumulated depreciation (44 ) (52 ) Net capital leases $ 80 $ 59 1 Included in Property, plant and equipment table above. 2 Consists primarily of machinery and equipment.
Scheduled minimum rental payments on assets recorded under capital leases	At December 31, 2015 , scheduled minimum rental payments on assets recorded under capital leases were: (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter $ 7 $ 24 $ 7 $ 7 $ 8 $ 31
Equipment leased to others	Equipment leased to others (primarily by Cat Financial): December 31, (Millions of dollars) 2015 2014 Equipment leased to others–at original cost $ 5,728 $ 5,596 Less: Accumulated depreciation (1,571 ) (1,565 ) Equipment leased to others–net $ 4,157 $ 4,031
Scheduled minimum rental payments to be received for equipment leased to others	At December 31, 2015 , scheduled minimum rental payments to be received for equipment leased to others were: (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter $ 886 $ 573 $ 352 $ 177 $ 75 $ 61

Investments in unconsolidated47

Investments in unconsolidated affiliated companies (Tables)	12 Months Ended
	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Investments in unconsolidated affiliated companies	Caterpillar’s investments in unconsolidated affiliated companies: December 31, (Millions of dollars) 2015 2014 Investments in equity method companies $ 203 $ 248 Plus: Investments in cost method companies 43 9 Total investments in unconsolidated affiliated companies $ 246 $ 257

Intangible assets and goodwill

Intangible assets and goodwill (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets are comprised of the following: December 31, 2015 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,489 $ (809 ) $ 1,680 Intellectual property 11 1,660 (626 ) 1,034 Other 12 174 (67 ) 107 Total finite-lived intangible assets 14 $ 4,323 $ (1,502 ) $ 2,821 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	As of December 31, 2015 , amortization expense related to intangible assets is expected to be: (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter $ 341 $ 330 $ 324 $ 321 $ 314 $ 1,191
Goodwill	The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2015 and 2014 were as follows: (Millions of dollars) December 31, 2014 Acquisitions 1 Held for Sale and Business Divestitures 2 Impairment Loss Other Adjustments 3 December 31, 2015 Construction Industries Goodwill $ 275 $ — $ — $ — $ (12 ) $ 263 Resource Industries Goodwill 4,287 — — — (142 ) 4,145 Impairment (580 ) — — — — (580 ) Net goodwill 3,707 — — — (142 ) 3,565 Energy & Transportation Goodwill 2,542 133 — — (55 ) 2,620 All Other 4 Goodwill 192 — — — (3 ) 189 Impairment (22 ) — — — — (22 ) Net goodwill 170 — — — (3 ) 167 Consolidated total Goodwill 7,296 133 — — (212 ) 7,217 Impairment (602 ) — — — — (602 ) Net goodwill $ 6,694 $ 133 $ — $ — $ (212 ) $ 6,615 December 31, 2013 Acquisitions 1 Held for Sale and Business Divestitures 2 Impairment Loss Other Adjustments 3 December 31, 2014 Construction Industries Goodwill $ 291 $ — $ — $ — $ (16 ) $ 275 Resource Industries Goodwill 4,468 — (15 ) — (166 ) 4,287 Impairment (580 ) — — — — (580 ) Net goodwill 3,888 — (15 ) — (166 ) 3,707 Energy & Transportation Goodwill 2,600 7 — — (65 ) 2,542 All Other 4 Goodwill 199 — — — (7 ) 192 Impairment (22 ) — — — — (22 ) Net goodwill 177 — — — (7 ) 170 Consolidated total Goodwill 7,558 7 (15 ) — (254 ) 7,296 Impairment (602 ) — — — — (602 ) Net goodwill $ 6,956 $ 7 $ (15 ) $ — $ (254 ) $ 6,694 1 See Note 24 for additional information. 2 See Note 25 for additional information. 3 Other adjustments are comprised primarily of foreign currency translation. 4 Includes All Other operating segments (See Note 23).

Available-for-sale securities (

Available-for-sale securities (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale securities	The cost basis and fair value of available-for-sale securities were as follows: December 31, 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 $ 9 $ — $ 9 $ 10 $ — $ 10 Other U.S. and non-U.S. government bonds 71 1 72 94 — 94 Corporate bonds Corporate bonds 701 7 708 677 16 693 Asset-backed securities 129 — 129 103 2 105 Mortgage-backed debt securities U.S. governmental agency 291 1 292 292 2 294 Residential 12 — 12 15 — 15 Commercial 59 2 61 63 4 67 Equity securities Large capitalization value 243 30 273 150 83 233 Real estate investment trust (REIT) 25 — 25 — — — Smaller company growth 37 17 54 17 26 43 Total $ 1,577 $ 58 $ 1,635 $ 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: December 31, 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 $ 242 $ 3 $ 27 $ 1 $ 269 $ 4 Asset-backed securities 84 1 10 1 94 2 Mortgage-backed debt securities U.S. governmental agency 135 1 57 1 192 2 Equity securities Large capitalization value 97 8 2 — 99 8 Smaller company growth 14 1 — — 14 1 Total $ 572 $ 14 $ 96 $ 3 $ 668 $ 17 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	December 31, 2015 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 124 $ 124 Due after one year through five years 709 716 Due after five years through ten years 49 50 Due after ten years 28 28 U.S. governmental agency mortgage-backed securities 291 292 Residential mortgage-backed securities 12 12 Commercial mortgage-backed securities 59 61 Total debt securities – available-for-sale $ 1,272 $ 1,283
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities	Sales of Securities: Years Ended December 31, (Millions of dollars) 2015 2014 2013 Proceeds from the sale of available-for-sale securities $ 351 $ 434 $ 449 Gross gains from the sale of available-for-sale securities $ 64 $ 38 $ 22 Gross losses from the sale of available-for-sale securities $ 2 $ 2 $ 2

Postemployment benefit plans (T

Postemployment benefit plans (Tables)	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of changes in projected benefit obligations	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2015 2014 2015 2014 Change in benefit obligation: Benefit obligation, beginning of year $ 16,249 $ 14,419 $ 4,801 $ 4,609 $ 4,938 $ 4,784 Service cost 181 157 110 109 101 82 Interest cost 608 648 146 185 181 213 Plan amendments — — — — 3 (1 ) Actuarial losses (gains) (384 ) 1,994 (167 ) 604 (626 ) 196 Foreign currency exchange rates — — (292 ) (436 ) (42 ) (30 ) Participant contributions — — 8 9 52 61 Benefits paid - gross (890 ) (963 ) (191 ) (206 ) (345 ) (377 ) Less: federal subsidy on benefits paid — — — — 11 14 Curtailments, settlements and termination benefits 28 (6 ) (60 ) (53 ) 40 (4 ) Acquisitions, divestitures and other — — — (20 ) — — Benefit obligation, end of year $ 15,792 $ 16,249 $ 4,355 $ 4,801 $ 4,313 $ 4,938 Accumulated benefit obligation, end of year $ 15,550 $ 15,701 $ 4,024 $ 4,408 Weighted-average assumptions used to determine benefit obligation: Discount rate 4.2 % 3.8 % 3.2 % 3.3 % 4.1 % 3.9 % Rate of compensation increase 4.0 % 4.0 % 3.8 % 4.0 % 4.0 % 4.0 %
Schedule of assumptions used to determine benefit obligation	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2015 2014 2015 2014 Change in benefit obligation: Benefit obligation, beginning of year $ 16,249 $ 14,419 $ 4,801 $ 4,609 $ 4,938 $ 4,784 Service cost 181 157 110 109 101 82 Interest cost 608 648 146 185 181 213 Plan amendments — — — — 3 (1 ) Actuarial losses (gains) (384 ) 1,994 (167 ) 604 (626 ) 196 Foreign currency exchange rates — — (292 ) (436 ) (42 ) (30 ) Participant contributions — — 8 9 52 61 Benefits paid - gross (890 ) (963 ) (191 ) (206 ) (345 ) (377 ) Less: federal subsidy on benefits paid — — — — 11 14 Curtailments, settlements and termination benefits 28 (6 ) (60 ) (53 ) 40 (4 ) Acquisitions, divestitures and other — — — (20 ) — — Benefit obligation, end of year $ 15,792 $ 16,249 $ 4,355 $ 4,801 $ 4,313 $ 4,938 Accumulated benefit obligation, end of year $ 15,550 $ 15,701 $ 4,024 $ 4,408 Weighted-average assumptions used to determine benefit obligation: Discount rate 4.2 % 3.8 % 3.2 % 3.3 % 4.1 % 3.9 % Rate of compensation increase 4.0 % 4.0 % 3.8 % 4.0 % 4.0 % 4.0 %
Effects of one-percentage point change in the assumed health care cost trend rates	A one-percentage-point change in assumed health care cost trend rates would have the following effects: (Millions of dollars) One-percentage- point increase One-percentage- point decrease Effect on 2015 service and interest cost components of other postretirement benefit cost $ 37 $ (6 ) Effect on accumulated postretirement benefit obligation $ 244 $ (202 )
Change in plan assets	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2015 2014 2015 2014 Change in plan assets: Fair value of plan assets, beginning of year $ 12,530 $ 12,395 $ 4,100 $ 3,949 $ 776 $ 822 Actual return on plan assets (225 ) 849 105 507 3 75 Foreign currency exchange rates — — (232 ) (352 ) — — Company contributions 30 255 156 265 164 195 Participant contributions — — 8 9 52 61 Benefits paid (890 ) (963 ) (191 ) (206 ) (345 ) (377 ) Settlements and termination benefits (5 ) (6 ) (56 ) (50 ) — — Acquisitions, divestitures and other — — — (22 ) — — Fair value of plan assets, end of year $ 11,440 $ 12,530 $ 3,890 $ 4,100 $ 650 $ 776
Fair value of pension and other postretirement benefit plan assets, by category	The fair value of the pension and other postretirement benefit plan assets by category is summarized below: December 31, 2015 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,976 $ — $ 172 $ 3,148 Non-U.S. equities 2,044 5 1 2,050 Fixed income securities: U.S. corporate bonds — 4,004 42 4,046 Non-U.S. corporate bonds — 575 — 575 U.S. government bonds — 526 — 526 U.S. governmental agency mortgage-backed securities — 627 — 627 Non-U.S. government bonds — 65 — 65 Real estate — — 9 9 Cash, short-term instruments and other 157 234 3 394 Total U.S. pension assets $ 5,177 $ 6,036 $ 227 $ 11,440 December 31, 2014 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value U.S. Pension Equity securities: U.S. equities $ 3,713 $ 1 $ 161 $ 3,875 Non-U.S. equities 2,291 12 1 2,304 Fixed income securities: U.S. corporate bonds — 3,985 25 4,010 Non-U.S. corporate bonds — 552 — 552 U.S. government bonds — 528 — 528 U.S. governmental agency mortgage-backed securities — 752 2 754 Non-U.S. government bonds — 62 2 64 Real estate — — 9 9 Cash, short-term instruments and other 37 397 — 434 Total U.S. pension assets $ 6,041 $ 6,289 $ 200 $ 12,530 December 31, 2015 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 426 $ 118 $ — $ 544 Non-U.S. equities 680 152 2 834 Global equities 1 155 49 — 204 Fixed income securities: U.S. corporate bonds — 135 3 138 Non-U.S. corporate bonds — 400 2 402 U.S. government bonds — 64 — 64 Non-U.S. government bonds — 1,083 — 1,083 Global fixed income 1 — 341 — 341 Real estate — 172 — 172 Cash, short-term instruments and other 2 61 47 — 108 Total non-U.S. pension assets $ 1,322 $ 2,561 $ 7 $ 3,890 December 31, 2014 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 552 $ — $ — $ 552 Non-U.S. equities 794 250 — 1,044 Global equities 1 218 52 — 270 Fixed income securities: U.S. corporate bonds — 81 9 90 Non-U.S. corporate bonds — 503 2 505 U.S. government bonds — 1 — 1 Non-U.S. government bonds — 836 — 836 Global fixed income 1 — 363 — 363 Real estate — 182 48 230 Cash, short-term instruments and other 2 159 50 — 209 Total non-U.S. pension assets $ 1,723 $ 2,318 $ 59 $ 4,100 1 Includes funds that invest in both U.S. and non-U.S. securities. 2 Includes funds that invest in multiple asset classes, hedge funds and other. December 31, 2015 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 296 $ 1 $ — $ 297 Non-U.S. equities 136 — — 136 Fixed income securities: U.S. corporate bonds — 87 — 87 Non-U.S. corporate bonds — 18 — 18 U.S. government bonds — 31 — 31 U.S. governmental agency mortgage-backed securities — 45 — 45 Non-U.S. government bonds — 4 — 4 Cash, short-term instruments and other 17 15 — 32 Total other postretirement benefit assets $ 449 $ 201 $ — $ 650 December 31, 2014 (Millions of dollars) Level 1 Level 2 Level 3 Total Assets, at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 392 $ — $ — $ 392 Non-U.S. equities 158 1 — 159 Fixed income securities: U.S. corporate bonds — 103 — 103 Non-U.S. corporate bonds — 17 — 17 U.S. government bonds — 30 — 30 U.S. governmental agency mortgage-backed securities — 50 — 50 Non-U.S. government bonds — 3 — 3 Cash, short-term instruments and other 9 13 — 22 Total other postretirement benefit assets $ 559 $ 217 $ — $ 776
Roll forward of assets measured at fair value using level 3 inputs	Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2015 and 2014 . These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. (Millions of dollars) Equities Fixed Income Real Estate Other U.S. Pension Balance at December 31, 2013 $ 129 $ 54 $ 8 $ — Unrealized gains (losses) 1 — 1 — Realized gains (losses) 19 3 — — Purchases, issuances and settlements, net 13 (23 ) — — Transfers in and/or out of Level 3 — (5 ) — — Balance at December 31, 2014 $ 162 $ 29 $ 9 $ — Unrealized gains (losses) (1 ) (1 ) — — Realized gains (losses) 14 — — — Purchases, issuances and settlements, net (2 ) 16 — 2 Transfers in and/or out of Level 3 — (2 ) — 1 Balance at December 31, 2015 $ 173 $ 42 $ 9 $ 3 Non-U.S. Pension Balance at December 31, 2013 $ — $ 21 $ 111 $ — Unrealized gains (losses) — (1 ) (23 ) — Realized gains (losses) — — 22 — Purchases, issuances and settlements, net — (1 ) (62 ) — Transfers in and/or out of Level 3 — (8 ) — — Balance at December 31, 2014 $ — $ 11 $ 48 $ — Unrealized gains (losses) — (1 ) (18 ) — Realized gains (losses) — — 15 — Purchases, issuances and settlements, net — — (45 ) — Transfers in and/or out of Level 3 2 (5 ) — — Balance at December 31, 2015 $ 2 $ 5 $ — $ —
Defined benefit plan funded status, components of net amount recognized in financial position and accumulated other comprehensive income	The funded status of the plans, reconciled to the amount reported on Statement 3, is as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2015 2014 2015 2014 End of Year Fair value of plan assets $ 11,440 $ 12,530 $ 3,890 $ 4,100 $ 650 $ 776 Benefit obligations 15,792 16,249 4,355 4,801 4,313 4,938 Over (under) funded status recognized in financial position $ (4,352 ) $ (3,719 ) $ (465 ) $ (701 ) $ (3,663 ) $ (4,162 ) Components of net amount recognized in financial position: Other assets (non-current asset) $ 6 $ 3 $ 163 $ 144 $ — $ — Accrued wages, salaries and employee benefits (current liability) (32 ) (28 ) (19 ) (24 ) (161 ) (160 ) Liability for postemployment benefits (non-current liability) (4,326 ) (3,694 ) (609 ) (821 ) (3,502 ) (4,002 ) Net liability recognized $ (4,352 ) $ (3,719 ) $ (465 ) $ (701 ) $ (3,663 ) $ (4,162 ) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Net actuarial loss (gain) $ 6,245 $ 6,034 $ 1,300 $ 1,494 $ 171 $ 800 Prior service cost (credit) 1 2 1 9 39 (31 ) Total $ 6,246 $ 6,036 $ 1,301 $ 1,503 $ 210 $ 769
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost (pre-tax) in the next fiscal year	The estimated amount of prior service cost (credit) that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2015 into net periodic benefit cost (pre-tax) in 2016 are as follows: (Millions of dollars) U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits Prior service cost (credit) $ — $ — $ (30 ) Total $ — $ — $ (30 )
Schedule of pension plans with projected benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits	The following amounts relate to our pension plans with projected benefit obligations in excess of plan assets: U.S. Pension Benefits at Year-end Non-U.S. Pension Benefits at Year-end (Millions of dollars) 2015 2014 2015 2014 Projected benefit obligation $ 15,734 $ 16,182 $ 1,818 $ 4,539 Accumulated benefit obligation $ 15,493 $ 15,634 $ 1,657 $ 4,148 Fair value of plan assets $ 11,377 $ 12,460 $ 1,190 $ 3,695
Schedule of pension plans with accumulated benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits	The following amounts relate to our pension plans with accumulated benefit obligations in excess of plan assets: U.S. Pension Benefits at Year-end Non-U.S. Pension Benefits at Year-end (Millions of dollars) 2015 2014 2015 2014 Projected benefit obligation $ 15,734 $ 16,182 $ 1,363 $ 1,879 Accumulated benefit obligation $ 15,493 $ 15,634 $ 1,320 $ 1,734 Fair value of plan assets $ 11,377 $ 12,460 $ 793 $ 1,068
Information about the expected cash flow for the pension and other postretirement benefit plans	Information about the expected cash flow for the pension and other postretirement benefit plans is as follows: (Millions of dollars) U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits Employer contributions: 2016 (expected) $ 30 $ 120 $ 200 Expected benefit payments: 2016 $ 990 $ 220 $ 310 2017 990 170 320 2018 980 170 310 2019 980 170 310 2020 980 170 300 2021-2025 4,890 990 1,480 Total $ 9,810 $ 1,890 $ 3,030
Expected Medicare Part D subsidy receipts	Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments are as follows: (Millions of dollars) 2016 2017 2018 2019 2020 2021-2025 Total Other postretirement benefits $ 15 $ 15 $ 20 $ 20 $ 20 $ 100 $ 190
Components of net periodic benefit cost, other changes in plan assets and benefits obligations recognized in other comprehensive income and weighted-average assumptions used to determine net cost	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 181 $ 157 $ 196 $ 110 $ 109 $ 120 $ 101 $ 82 $ 108 Interest cost 608 648 581 146 185 166 181 213 195 Expected return on plan assets 1 (879 ) (885 ) (832 ) (260 ) (258 ) (225 ) (53 ) (52 ) (56 ) Other adjustments 2 — — 31 — — — — — (22 ) Curtailments, settlements and termination benefits 3 52 — — 14 14 2 32 (2 ) — Amortization of: Transition obligation (asset) — — — — — — — — 2 Prior service cost (credit) 4 1 17 18 — — 1 (54 ) (55 ) (73 ) Net actuarial loss (gain) 5 490 392 546 99 86 128 52 41 107 Total cost included in operating profit $ 453 $ 329 $ 540 $ 109 $ 136 $ 192 $ 259 $ 227 $ 261 Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): Current year actuarial loss (gain) $ 701 $ 2,030 $ (2,344 ) $ (95 ) $ 207 $ (406 ) $ (577 ) $ 179 $ (759 ) Amortization of actuarial (loss) gain (490 ) (392 ) (546 ) (99 ) (86 ) (128 ) (52 ) (41 ) (107 ) Current year prior service cost (credit) — — — (8 ) (4 ) (7 ) 16 (2 ) 2 Amortization of prior service (cost) credit (1 ) (17 ) (18 ) — — (1 ) 54 55 73 Amortization of transition (obligation) asset — — — — — — — — (2 ) Total recognized in other comprehensive income 210 1,621 (2,908 ) (202 ) 117 (542 ) (559 ) 191 (793 ) Total recognized in net periodic cost and other comprehensive income $ 663 $ 1,950 $ (2,368 ) $ (93 ) $ 253 $ (350 ) $ (300 ) $ 418 $ (532 ) Weighted-average assumptions used to determine net cost: Discount rate 3.8 % 4.6 % 3.7 % 3.3 % 4.1 % 3.7 % 3.9 % 4.6 % 3.7 % Expected rate of return on plan assets 6 7.4 % 7.8 % 7.8 % 6.8 % 6.9 % 6.8 % 7.8 % 7.8 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 4.5 % 4.0 % 4.2 % 3.9 % 4.0 % 4.0 % 4.4 % 1 Expected return on plan assets developed using calculated market-related value of plan assets which recognizes differences in expected and actual returns over a three-year period. 2 Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits. 3 Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in Statement 1. 4 Prior service cost (credit) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) are amortized using the straight-line method over the remaining life expectancy of those participants. 5 Net actuarial loss (gain) for pension and other postretirement benefit plans are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For plans in which all or almost all of the plan’s participants are inactive, net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of the inactive participants. 6 The weighted-average rates for 2016 are 6.9 percent and 6.1 percent for U.S. and non-U.S. pension plans, respectively.
Company costs related to U.S. and non-U.S. defined contribution plans	Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: (Millions of dollars) 2015 2014 2013 U.S. plans $ 267 $ 301 $ 308 Non-U.S. plans 76 85 64 $ 343 $ 386 $ 372
Summary of long-term liability for postemployment benefit plans	December 31, (Millions of dollars) 2015 2014 Pensions: U.S. pensions $ 4,326 $ 3,694 Non-U.S. pensions 609 821 Total pensions 4,935 4,515 Postretirement benefits other than pensions 3,502 4,002 Other postemployment benefits 104 112 Defined contribution 302 334 $ 8,843 $ 8,963

Short-term borrowings (Tables)

Short-term borrowings (Tables)	12 Months Ended
	Dec. 31, 2015
Short-term Borrowings Disclosure [Abstract]
Short-term borrowings	December 31, (Millions of dollars) 2015 2014 Machinery, Energy & Transportation: Notes payable to banks $ 9 $ 9 Commercial paper — — 9 9 Financial Products: Notes payable to banks 440 411 Commercial paper 5,811 3,688 Demand notes 707 600 6,958 4,699 Total short-term borrowings $ 6,967 $ 4,708 The weighted-average interest rates on short-term borrowings outstanding were: December 31, 2015 2014 Notes payable to banks 9.2 % 6.8 % Commercial paper 0.5 % 0.3 % Demand notes 0.8 % 0.8 %

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Long-term debt	December 31, (Millions of dollars) 2015 2014 Machinery, Energy & Transportation: Notes—5.700% due 2016 3 $ — $ 504 Notes—3.900% due 2021 3 1,247 1,246 Notes—5.200% due 2041 3 757 757 Debentures—1.500% due 2017 3 500 500 Debentures—7.900% due 2018 3 900 899 Debentures—9.375% due 2021 120 120 Debentures—2.600% due 2022 3 499 498 Debentures—8.000% due 2023 82 82 Debentures—3.400% due 2024 1,000 1,000 Debentures—6.625% due 2028 3 193 193 Debentures—7.300% due 2031 3 241 241 Debentures—5.300% due 2035 1, 3 213 211 Debentures—6.050% due 2036 3 459 459 Debentures—8.250% due 2038 3 65 65 Debentures—6.950% due 2042 3 160 160 Debentures—3.803% due 2042 2, 3 1,207 1,188 Debentures—4.300% due 2044 497 497 Debentures—4.750% due 2064 498 498 Debentures—7.375% due 2097 3 244 244 Capital lease obligations 77 85 Other 45 46 Total Machinery, Energy & Transportation 9,004 9,493 Financial Products: Medium-term notes 15,713 17,295 Other 530 996 Total Financial Products 16,243 18,291 Total long-term debt due after one year $ 25,247 $ 27,784 1 Debentures due in 2035 have a face value of $307 million and an effective yield to maturity of 8.55% . 2 Debentures due in 2042 have a face value of $1,722 million and an effective yield to maturity of 6.33% . 3 Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.
Aggregate amounts of maturities of long-term debt	The aggregate amounts of maturities of long-term debt during each of the years 2016 through 2020, including amounts due within one year and classified as current, are: December 31, (Millions of dollars) 2016 2017 2018 2019 2020 Machinery, Energy & Transportation $ 517 $ 531 $ 907 $ 7 $ 8 Financial Products 5,362 5,866 4,154 2,531 1,125 $ 5,879 $ 6,397 $ 5,061 $ 2,538 $ 1,133

Credit commitments (Tables)

Credit commitments (Tables)	12 Months Ended
	Dec. 31, 2015
Credit Commitments [Abstract]
Credit commitments	December 31, 2015 (Millions of dollars) Consolidated Machinery, Energy & Transportation Financial Products Credit lines available: Global credit facilities $ 10,500 $ 2,750 $ 7,750 Other external 3,745 176 3,569 Total credit lines available 14,245 2,926 11,319 Less: Commercial paper outstanding (5,811 ) — (5,811 ) Less: Utilized credit (1,444 ) (9 ) (1,435 ) Available credit $ 6,990 $ 2,917 $ 4,073

Profit per share (Tables)

Profit per share (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Computations of Profit Per Share	Computations of profit per share: (Dollars in millions except per share data) 2015 2014 2013 Profit for the period (A) 1 $ 2,102 $ 3,695 $ 3,789 Determination of shares (in millions): Weighted average number of common shares outstanding (B) 594.3 617.2 645.2 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 7.0 11.7 13.4 Average common shares outstanding for fully diluted computation (C) 2 601.3 628.9 658.6 Profit per share of common stock: Assuming no dilution (A/B) $ 3.54 $ 5.99 $ 5.87 Assuming full dilution (A/C) 2 $ 3.50 $ 5.88 $ 5.75 Shares outstanding as of December 31 (in millions) 582.3 606.2 637.8 1 Profit attributable to common stockholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Accumulated other comprehensi55

Accumulated other comprehensive income (loss) (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Schedule of Accumulated other comprehensive income (loss)	Changes in Accumulated other comprehensive income (loss), net of tax, included in Statement 4, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Balance at December 31, 2012 $ 456 $ (6,914 ) $ (42 ) $ 67 $ (6,433 ) Other comprehensive income (loss) before reclassifications (280 ) 2,280 (4 ) 29 2,025 Amounts reclassified from accumulated other comprehensive (income) loss — 482 41 (13 ) 510 Other comprehensive income (loss) (280 ) 2,762 37 16 2,535 Balance at December 31, 2013 $ 176 $ (4,152 ) $ (5 ) $ 83 $ (3,898 ) Other comprehensive income (loss) before reclassifications (1,164 ) (1,574 ) (118 ) 24 (2,832 ) Amounts reclassified from accumulated other comprehensive (income) loss — 319 4 (24 ) 299 Other comprehensive income (loss) (1,164 ) (1,255 ) (114 ) — (2,533 ) Balance at December 31, 2014 $ (988 ) $ (5,407 ) $ (119 ) $ 83 $ (6,431 ) Other comprehensive income (loss) before reclassifications (965 ) (13 ) (19 ) (10 ) (1,007 ) Amounts reclassified from accumulated other comprehensive (income) loss — 389 88 (36 ) 441 Other comprehensive income (loss) (965 ) 376 69 (46 ) (566 ) Balance at December 31, 2015 $ (1,953 ) $ (5,031 ) $ (50 ) $ 37 $ (6,997 )
Reclassification out of Accumulated other comprehensive income (loss)	The effect of the reclassifications out of Accumulated other comprehensive income (loss) on Statement 1 is as follows: Year ended December 31, (Millions of dollars) Classification of income (expense) 2015 2014 2013 Pension and other postretirement benefits: Amortization of actuarial gain (loss) Note 12 1 $ (641 ) $ (519 ) $ (781 ) Amortization of prior service credit (cost) Note 12 1 53 38 54 Amortization of transition asset (obligation) Note 12 1 — — (2 ) Reclassifications before tax (588 ) (481 ) (729 ) Tax (provision) benefit 199 162 247 Reclassifications net of tax $ (389 ) $ (319 ) $ (482 ) Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (127 ) $ 5 $ (57 ) Interest rate contracts Interest expense excluding Financial Products (6 ) (5 ) — Interest rate contracts Other income (expense) — — (3 ) Interest rate contracts Interest expense of Financial Products (6 ) (6 ) (6 ) Reclassifications before tax (139 ) (6 ) (66 ) Tax (provision) benefit 51 2 25 Reclassifications net of tax $ (88 ) $ (4 ) $ (41 ) Available-for-sale securities: Realized gain (loss) on sale of securities Other income (expense) $ 56 $ 35 $ 19 Tax (provision) benefit (20 ) (11 ) (6 ) Reclassifications net of tax $ 36 $ 24 $ 13 Total reclassifications from Accumulated other comprehensive income (loss) $ (441 ) $ (299 ) $ (510 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 12 for additional information.

Fair value disclosures (Tables)

Fair value disclosures (Tables)	12 Months Ended
	Dec. 31, 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 Statement 3 as of December 31, 2015 and 2014 are summarized below: December 31, 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 $ 9 $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 72 — 72 Corporate bonds Corporate bonds — 708 — 708 Asset-backed securities — 129 — 129 Mortgage-backed debt securities U.S. governmental agency — 292 — 292 Residential — 12 — 12 Commercial — 61 — 61 Equity securities Large capitalization value 273 — — 273 REIT — — 25 25 Smaller company growth 54 — — 54 Total available-for-sale securities 336 1,274 25 1,635 Derivative financial instruments, net — 49 — 49 Total Assets $ 336 $ 1,323 $ 25 $ 1,684 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 REIT investments	A roll-forward of our REIT investment for the year ended December 31, 2015 is as follows: (Millions of dollars) REIT Balance at December 31, 2014 $ — Purchases of securities 25 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) — Balance at December 31, 2015 $ 25
Fair values of financial instruments	Please refer to the table below for the fair values of our financial instruments. TABLE III—Fair Values of Financial Instruments 2015 2014 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets at December 31, Cash and short-term investments $ 6,460 $ 6,460 $ 7,341 $ 7,341 1 Statement 3 Restricted cash and short-term investments 52 52 62 62 1 Statement 3 Available-for-sale securities 1,635 1,635 1,554 1,554 1, 2 & 3 Notes 11 & 19 Finance receivables–net (excluding finance leases 1 ) 16,515 16,551 16,426 16,159 3 Notes 6 & 19 Wholesale inventory receivables–net (excluding finance leases 1 ) 1,821 1,775 1,774 1,700 3 Notes 6 & 19 Foreign currency contracts–net 13 13 — — 2 Notes 3 & 19 Interest rate swaps–net 48 48 71 71 2 Notes 3 & 19 Liabilities at December 31, Short-term borrowings 6,967 6,967 4,708 4,708 1 Note 13 Long-term debt (including amounts due within one year): Machinery, Energy & Transportation 9,521 10,691 10,003 11,973 2 Note 14 Financial Products 21,605 21,904 24,574 25,103 2 Note 14 Foreign currency contracts–net — — 143 143 2 Notes 3 & 19 Commodity contracts–net 12 12 14 14 2 Notes 3 & 19 Guarantees 12 12 12 12 3 Note 21 1 Total excluded items have a net carrying value at December 31, 2015 and 2014 of $6,452 million and $7,638 million , respectively.

Operating leases (Tables)

Operating leases (Tables)	12 Months Ended
	Dec. 31, 2015
Leases [Abstract]
Minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year	Minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year are: Years ended December 31, (Millions of dollars) 2016 2017 2018 2019 2020 Thereafter Total $ 237 $ 183 $ 140 $ 93 $ 68 $ 205 $ 926

Guarantees and product warran58

Guarantees and product warranty (Tables)	12 Months Ended
	Dec. 31, 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 at December 31 are as follows: (Millions of dollars) 2015 2014 Caterpillar dealer performance guarantees $ 216 $ 209 Customer loan guarantees 47 49 Supplier consortium performance guarantee 286 321 Third party logistics business lease guarantees 107 129 Other guarantees 25 32 Total guarantees $ 681 $ 740
Product warranty	(Millions of dollars) 2015 2014 Warranty liability, January 1 $ 1,426 $ 1,367 Reduction in liability (payments) (874 ) (1,071 ) Increase in liability (new warranties) 802 1,130 1 Warranty liability, December 31 $ 1,354 $ 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.

Segment information (Tables)

Segment information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Reportable Segments	Segment Information (Millions of dollars) Reportable Segments: 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 2015 Construction Industries $ 16,568 $ 193 $ 16,761 $ 481 $ 1,925 $ 5,480 $ 246 Resource Industries 7,551 353 7,904 641 (88 ) 8,602 281 Energy & Transportation 17,938 1,800 19,738 645 3,239 8,547 814 Machinery, Energy & Transportation $ 42,057 $ 2,346 $ 44,403 $ 1,767 $ 5,076 $ 22,629 $ 1,341 Financial Products Segment 3,078 — 3,078 848 809 35,765 1,465 Total $ 45,135 $ 2,346 $ 47,481 $ 2,615 $ 5,885 $ 58,394 $ 2,806 2014 Construction Industries $ 19,362 $ 250 $ 19,612 $ 522 $ 2,207 $ 6,596 $ 369 Resource Industries 8,921 431 9,352 685 404 9,497 277 Energy & Transportation 21,727 2,248 23,975 652 4,135 8,470 608 Machinery, Energy & Transportation $ 50,010 $ 2,929 $ 52,939 $ 1,859 $ 6,746 $ 24,563 $ 1,254 Financial Products Segment 3,313 — 3,313 885 901 37,011 1,634 Total $ 53,323 $ 2,929 $ 56,252 $ 2,744 $ 7,647 $ 61,574 $ 2,888 2013 Construction Industries $ 18,532 $ 330 $ 18,862 $ 493 $ 1,374 $ 7,607 $ 551 Resource Industries 11,805 432 12,237 693 1,572 10,340 499 Energy & Transportation 20,155 1,895 22,050 647 3,415 8,542 677 Machinery, Energy & Transportation $ 50,492 $ 2,657 $ 53,149 $ 1,833 $ 6,361 $ 26,489 $ 1,727 Financial Products Segment 3,224 — 3,224 789 990 36,980 1,806 Total $ 53,716 $ 2,657 $ 56,373 $ 2,622 $ 7,351 $ 63,469 $ 3,533
Reconciliation of Sales and revenues:	Reconciliation of Sales and Revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2015 Total external sales and revenues from reportable segments $ 42,057 $ 3,078 $ — $ 45,135 All Other operating segments 2,197 — — 2,197 Other (107 ) 101 (315 ) 1 (321 ) Total sales and revenues $ 44,147 $ 3,179 $ (315 ) $ 47,011 2014 Total external sales and revenues from reportable segments $ 50,010 $ 3,313 $ — $ 53,323 All Other operating segments 2,251 — — 2,251 Other (119 ) 73 (344 ) 1 (390 ) Total sales and revenues $ 52,142 $ 3,386 $ (344 ) $ 55,184 2013 Total external sales and revenues from reportable segments $ 50,492 $ 3,224 $ — $ 53,716 All Other operating segments 2,263 — — 2,263 Other (61 ) 78 (340 ) 1 (323 ) Total sales and revenues $ 52,694 $ 3,302 $ (340 ) $ 55,656 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 2015 Total profit from reportable segments $ 5,076 $ 809 $ 5,885 All Other operating segments 779 — 779 Cost centers 145 — 145 Corporate costs (1,682 ) — (1,682 ) Timing 94 — 94 Restructuring costs (891 ) (17 ) (908 ) Methodology differences: Inventory/cost of sales (100 ) — (100 ) Postretirement benefit expense (386 ) — (386 ) Financing costs (524 ) — (524 ) Equity in (profit) loss of unconsolidated affiliated companies (3 ) — (3 ) Currency (316 ) — (316 ) Other income/expense methodology differences (95 ) — (95 ) Other methodology differences (64 ) 30 (34 ) Total consolidated profit before taxes $ 2,033 $ 822 $ 2,855 2014 Total profit from reportable segments $ 6,746 $ 901 $ 7,647 All Other operating segments 850 — 850 Cost centers 38 — 38 Corporate costs (1,584 ) — (1,584 ) Timing (244 ) — (244 ) Restructuring costs (441 ) — (441 ) Methodology differences: Inventory/cost of sales 55 — 55 Postretirement benefit expense (411 ) — (411 ) Financing costs (502 ) — (502 ) Equity in (profit) loss of unconsolidated affiliated companies (8 ) — (8 ) Currency (52 ) — (52 ) Other income/expense methodology differences (249 ) — (249 ) Other methodology differences (24 ) 8 (16 ) Total consolidated profit before taxes $ 4,174 $ 909 $ 5,083 2013 Total profit from reportable segments $ 6,361 $ 990 $ 7,351 All Other operating segments 736 — 736 Cost centers 119 — 119 Corporate costs (1,368 ) — (1,368 ) Timing 116 — 116 Restructuring costs (200 ) — (200 ) Methodology differences: Inventory/cost of sales (112 ) — (112 ) Postretirement benefit expense (685 ) — (685 ) Financing costs (469 ) — (469 ) Equity in (profit) loss of unconsolidated affiliated companies 6 — 6 Currency (110 ) — (110 ) Other income/expense methodology differences (238 ) — (238 ) Other methodology differences (48 ) 30 (18 ) Total consolidated profit before taxes $ 4,108 $ 1,020 $ 5,128
Reconciliation of Restructuring costs:	As noted above, restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. Had we included the amounts in the segments' results, the profit would have been as shown below: Reconciliation of Restructuring costs: (Millions of dollars) Segment profit Restructuring costs Segment profit with restructuring costs 2015 Construction Industries $ 1,925 $ (95 ) $ 1,830 Resource Industries (88 ) (305 ) (393 ) Energy & Transportation 3,239 (109 ) 3,130 Financial Products Segment 809 (17 ) 792 All Other operating segments 779 (157 ) 622 Total $ 6,664 $ (683 ) $ 5,981 2014 Construction Industries $ 2,207 $ (293 ) $ 1,914 Resource Industries 404 (72 ) 332 Energy & Transportation 4,135 (31 ) 4,104 Financial Products Segment 901 — 901 All Other operating segments 850 (36 ) 814 Total $ 8,497 $ (432 ) $ 8,065 2013 Construction Industries $ 1,374 $ (33 ) $ 1,341 Resource Industries 1,572 (105 ) 1,467 Energy & Transportation 3,415 (32 ) 3,383 Financial Products Segment 990 — 990 All Other operating segments 736 (27 ) 709 Total $ 8,087 $ (197 ) $ 7,890
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2015 Total assets from reportable segments $ 22,629 $ 35,765 $ — $ 58,394 All Other operating segments 2,616 — — 2,616 Items not included in segment assets: Cash and short-term investments 5,340 — — 5,340 Intercompany receivables 1,087 — (1,087 ) — Investment in Financial Products 3,888 — (3,888 ) — Income taxes 3,775 — (852 ) 2,923 Goodwill and intangible assets 3,572 — — 3,572 Property, plant and equipment – net and other assets 1,184 — — 1,184 Operating lease methodology difference (213 ) — — (213 ) Liabilities included in segment assets 8,004 — — 8,004 Inventory methodology differences (2,646 ) — — (2,646 ) Other (566 ) (34 ) (77 ) (677 ) Total assets $ 48,670 $ 35,731 $ (5,904 ) $ 78,497 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 ) — Income taxes 3,627 — (674 ) 2,953 Goodwill and intangible assets 3,492 — — 3,492 Property, plant and equipment – net and other assets 1,174 — — 1,174 Operating lease methodology difference (213 ) — — (213 ) Liabilities included in segment assets 9,837 — — 9,837 Inventory methodology differences (2,697 ) — — (2,697 ) Other (395 ) (102 ) (69 ) (566 ) Total assets $ 54,188 $ 36,909 $ (6,416 ) $ 84,681 2013 Total assets from reportable segments $ 26,489 $ 36,980 $ — $ 63,469 All Other operating segments 2,973 — — 2,973 Items not included in segment assets: Cash and short-term investments 4,597 — — 4,597 Intercompany receivables 1,219 — (1,219 ) — Investment in Financial Products 4,798 — (4,798 ) — Income taxes 2,541 — (525 ) 2,016 Goodwill and intangible assets 3,582 — — 3,582 Property, plant and equipment – net and other assets 1,174 — — 1,174 Operating lease methodology difference (273 ) — — (273 ) Liabilities included in segment assets 10,357 — — 10,357 Inventory methodology differences (2,539 ) — — (2,539 ) Other (214 ) (135 ) (111 ) (460 ) Total assets $ 54,704 $ 36,845 $ (6,653 ) $ 84,896
Reconciliation of Depreciation and amortization:	Reconciliation of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total 2015 Total depreciation and amortization from reportable segments $ 1,767 $ 848 $ 2,615 Items not included in segment depreciation and amortization: All Other operating segments 276 — 276 Cost centers 156 — 156 Other (35 ) 34 (1 ) Total depreciation and amortization $ 2,164 $ 882 $ 3,046 2014 Total depreciation and amortization from reportable segments $ 1,859 $ 885 $ 2,744 Items not included in segment depreciation and amortization: All Other operating segments 279 — 279 Cost centers 149 — 149 Other (34 ) 25 (9 ) Total depreciation and amortization $ 2,253 $ 910 $ 3,163 2013 Total depreciation and amortization from reportable segments $ 1,833 $ 789 $ 2,622 Items not included in segment depreciation and amortization: All Other operating segments 305 — 305 Cost centers 151 — 151 Other (16 ) 25 9 Total depreciation and amortization $ 2,273 $ 814 $ 3,087
Reconciliation of Capital expenditures:	Reconciliation of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2015 Total capital expenditures from reportable segments $ 1,341 $ 1,465 $ — $ 2,806 Items not included in segment capital expenditures: All Other operating segments 276 — — 276 Cost centers 195 — — 195 Timing 37 — — 37 Other (219 ) 194 (28 ) (53 ) Total capital expenditures $ 1,630 $ 1,659 $ (28 ) $ 3,261 2014 Total capital expenditures from reportable segments $ 1,254 $ 1,634 $ — $ 2,888 Items not included in segment capital expenditures: All Other operating segments 331 — — 331 Cost centers 181 — — 181 Timing 21 — — 21 Other (146 ) 183 (79 ) (42 ) Total capital expenditures $ 1,641 $ 1,817 $ (79 ) $ 3,379 2013 Total capital expenditures from reportable segments $ 1,727 $ 1,806 $ — $ 3,533 Items not included in segment capital expenditures: All Other operating segments 452 — — 452 Cost centers 191 — — 191 Timing 363 — — 363 Other (128 ) 105 (70 ) (93 ) Total capital expenditures $ 2,605 $ 1,911 $ (70 ) $ 4,446
Information about Geographic Areas	Information about Geographic Areas: Property, plant and equipment - net External sales and revenues 1 December 31, (Millions of dollars) 2015 2014 2013 2015 2014 Inside United States $ 19,218 $ 21,122 $ 18,579 $ 8,842 $ 8,714 Outside United States 27,793 34,062 37,077 7,248 7,863 Total $ 47,011 $ 55,184 $ 55,656 $ 16,090 $ 16,577 1 Sales of Machinery, Energy & Transportation are based on dealer or customer location. Revenues from services provided are based on where service is rendered.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	12 Months Ended
	Dec. 31, 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) (289 ) Liability balance at December 31, 2014 $ 182 Increase in liability (separation charges) 641 Reduction in liability (payments) (340 ) Liability balance at December 31, 2015 $ 483

Selected quarterly financial 61

Selected quarterly financial results (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial results	2015 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 12,702 $ 12,317 $ 10,962 $ 11,030 Less: Revenues (741 ) (734 ) (677 ) (712 ) Sales 11,961 11,583 10,285 10,318 Cost of goods sold 8,843 8,762 7,954 8,183 Gross margin 3,118 2,821 2,331 2,135 Profit (loss) 1 $ 1,111 $ 710 $ 368 $ (87 ) 4 Profit (loss) per common share $ 1.84 $ 1.18 $ 0.63 $ (0.15 ) Profit (loss) per common share–diluted 2,3 $ 1.81 $ 1.16 $ 0.62 $ (0.15 ) 2014 Quarter 1st 2nd 3rd 4th Sales and revenues $ 13,241 $ 14,150 $ 13,549 $ 14,244 Less: Revenues (748 ) (759 ) (791 ) (744 ) Sales 12,493 13,391 12,758 13,500 Cost of goods sold 9,437 10,197 9,634 10,499 Gross margin 3,056 3,194 3,124 3,001 Profit (loss) 1 $ 922 $ 999 $ 1,017 $ 757 Profit (loss) per common share $ 1.47 $ 1.60 $ 1.66 $ 1.25 Profit (loss) per common share–diluted 2 $ 1.44 $ 1.57 $ 1.63 $ 1.23 1 Profit (loss) attributable to common stockholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. 3 In the fourth quarter 2015, the assumed exercise of stock-based compensation awards was not considered because the impact would be anti-dilutive. 4 The fourth quarter of 2015 includes restructuring costs of $682 million . See Note 26 for additional information on these costs.

Operations and summary of sig62

Operations and summary of significant accounting policies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)places_of_businessdealerscountriesdealer_rental_outletsdistributors	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Operations and Summary of Significant Accounting Policies
Number of countries served by dealers | countries	182
Number of dealer places of business | places_of_business	3,593
Number of dealer rental outlets | dealer_rental_outlets	1,274
Maximum amortizable period of purchased intangibles (in years)	14 years	14 years
Ownership percentage of investments in companies below which the entity must exercise significant influence in order to be accounted for under the equity method	20.00%
Standard invoice terms, maximum extension period (in years)	1 year	1 year	1 year
Standard invoice terms, amount of extension allowed to receivables | $	$ 635	$ 624	$ 706
Percentage of consolidated sales representing extension to standard invoice terms not more than one year	1.00%	1.00%	1.00%
Period after which collection of future income is considered as not probable (in days)	120 days
Percentage of value of inventories on the LIFO basis to total inventories	60.00%	60.00%
Incremental value of inventory if FIFO method had been in use | $	$ 2,498	$ 2,430
Depreciation on equipment leased to others | $	836	872	$ 768
Consolidated depreciation expense | $	$ 2,705	$ 2,795	$ 2,710
Maximum
Operations and Summary of Significant Accounting Policies
Maximum amortizable period of purchased intangibles (in years)	20 years
Minimum
Operations and Summary of Significant Accounting Policies
Ownership percentage of investments in companies accounted for under the equity method (as a percent)	20.00%
Inside United States
Operations and Summary of Significant Accounting Policies
Number of dealers | dealers	48
Outside the United States
Operations and Summary of Significant Accounting Policies
Number of dealers | dealers	127
Perkins
Operations and Summary of Significant Accounting Policies
Number of distributors | distributors	97
Number of countries where distributors are located | countries	180
Caterpillar Northern Ireland Ltd (F.G. Wilson)
Operations and Summary of Significant Accounting Policies
Number of distributors | distributors	290
Number of countries where distributors are located | countries	145
MaK
Operations and Summary of Significant Accounting Policies
Number of distributors | distributors	19
Number of countries where distributors are located | countries	130

Operations and summary of sig63

Operations and summary of significant accounting policies (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Receivables - trade and other	$ 6,695	$ 7,737
Receivables - finance	8,991	9,027
Long-term receivables - finance	13,651	14,644
Investments in unconsolidated affiliated companies	246	257
Guarantees	681	740
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Receivables - trade and other	19	36
Receivables - finance	466	216
Long-term receivables - finance	62	285
Investments in unconsolidated affiliated companies	35	83
Guarantees	175	129
Total	$ 757	$ 749

Stock-based compensation (Detai

Stock-based compensation (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares issued from treasury stock for stock-based compensation (in shares)	2,931,595	10,106,542	6,258,692
Number of shares authorized under the plans (in shares)	38,800,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	25,503,631
Vesting period of prior awards granted (in years)	3 years
Term life of SARs and option awards (in years)	10 years
Required minimum age of a participant upon separation from service to meet the criteria for Long Service Separation (in years)	55 years
Minimum term of service to meet criteria for Long Service Separation (in years)	5 years
Term life of vested options/SARs from separation date (in years)	5 years
Requisite service period (in months)	6 months
Assumptions used in determining the fair value of the stock-based awards
Weighted-average dividend yield (as a percent)	2.30%	2.20%	2.10%
Weighted-average volatility (as a percent)	28.40%	28.20%	30.60%
Volatilities, low end of range (as a percent)	19.90%	18.40%	23.40%
Volatilities, high end of range (as a percent)	35.90%	36.20%	40.60%
Risk-free interest rates, low end of range (as a percent)	0.22%	0.12%	0.16%
Risk-free interest rates, high end of range (as a percent)	2.08%	2.60%	1.88%
Weighted-average expected lives (in years)	8 years	8 years	8 years
Stock Options and Stock Appreciation Rights (SARs)
Stock options/SARs activity
Outstanding at beginning of year (in shares)	34,581,083
Granted to officers and key employees (in shares)	7,939,497
Exercised (in shares)	(3,513,271)
Forfeited / expired (in shares)	(668,784)
Outstanding at end of year (in shares)	38,338,525	34,581,083
Number of stock awards exercisable at end of the period (in shares)	24,807,381
Weighted- Average Exercise Price for Stock options/SARs
Outstanding at beginning of year (in dollars per shares)	$ 74.48
Granted to officers and key employees (in dollars per shares)	83.34
Exercised (in dollars per shares)	57.37
Forfeited / expired (in dollars per shares)	76.78
Outstanding at end of year (in dollars per shares)	77.84	$ 74.48
Exercisable at year-end (in dollars per share)	$ 72.26
Stock Appreciation Rights (SARs)
Stock options/SARs activity
Granted to officers and key employees (in shares)	0
Restricted Stock Units (RSUs)
RSUs/PSUs activity
Outstanding at beginning of year (in shares)	4,084,136
Granted to officers and key employees (in shares)	1,690,661
Vested (in shares)	(1,350,457)
Forfeited (in shares)	(93,827)
Outstanding at end of year (in shares)	4,330,513	4,084,136
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Outstanding at beginning of year (in dollars per shares)	$ 91.92
Granted to officers and key employees (in dollars per shares)	77.55	$ 89.18	$ 84.05
Vested (in dollars per shares)	102.63
Forfeited (in dollars per shares)	84.28
Outstanding at end of year (in dollars per shares)	$ 83.14	$ 91.92
Performance Restricted Stock Units (PRSUs)
RSUs/PSUs activity
Outstanding at beginning of year (in shares)	0
Granted to officers and key employees (in shares)	132,068
Vested (in shares)	0
Forfeited (in shares)	0
Outstanding at end of year (in shares)	132,068	0
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Outstanding at beginning of year (in dollars per shares)	$ 0
Granted to officers and key employees (in dollars per shares)	77.47	$ 0	$ 0
Vested (in dollars per shares)	0
Forfeited (in dollars per shares)	0
Outstanding at end of year (in dollars per shares)	$ 77.47	$ 0
2015 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Graded vesting period of awards granted (in years)	3 years
2015 Grant | Performance Restricted Stock Units (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Graded vesting period of awards granted (in years)	3 years
Percentage of award vested on first anniversary of grant date | 2015 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%
Percentage of award vested on second anniversary of grant date | 2015 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%
Percentage of award vested on third anniversary of grant date | 2015 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%

Stock-based compensation (Det65

Stock-based compensation (Details 2) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Additional Stock-based Award Information under Restricted Stock Units Activity
Stock-based compensation expense, before tax (in dollars)	$ 283	$ 254	$ 231
Income tax benefit corresponding to stock-based compensation expense	87	79	73
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars)	$ 215
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)	1 year 9 months
Cash tax benefits realized from stock awards exercised	$ 68	$ 253	$ 127
Tax benefit recordable in APIC on reduction of future income taxes payable	$ 21
Exercise Price Range 22.17 To 57.85
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	$ 22.17
Exercise Price Range, Maximum (in dollars per share)	57.85
Exercise Price Range 63.04 To 73.20
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	63.04
Exercise Price Range, Maximum (in dollars per share)	73.20
Exercise Price Range 83.00 To 86.77
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	83
Exercise Price Range, Maximum (in dollars per share)	86.77
Exercise Price Range 88.51 To 96.31
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	88.51
Exercise Price Range, Maximum (in dollars per share)	96.31
Exercise Price Range 102.13 To 110.09
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	102.13
Exercise Price Range, Maximum (in dollars per share)	$ 110.09
Stock Options and Stock Appreciation Rights (SARs)
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	38,338,525
Weighted Average Exercise Price (in dollars per share)	$ 77.84
Aggregate Intrinsic Value outstanding	$ 206
Number of stock awards exercisable at end of the period (in shares)	24,807,381
Weighted Average Exercise Price (in dollars per share)	$ 72.26
Aggregate Intrinsic Value exercisable	$ 206
Additional Stock-based Award Information under Stock Option and Stock Appreciation Rights
Weighted-average fair value per share of stock awards granted (in dollars per share)	$ 23.61	$ 29.52	$ 28.34
Intrinsic value of stock awards exercised	$ 93	$ 649	$ 312
Fair value of stock awards vested	155	108	167
Cash received from stock awards exercised	$ 59	$ 259	$ 152
Stock Options and Stock Appreciation Rights (SARs) | Exercise Price Range 22.17 To 57.85
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	8,293,122
Weighted Average Remaining Contractual Life outstanding (in years)	3 years 9 months 15 days
Weighted Average Exercise Price (in dollars per share)	$ 44.29
Aggregate Intrinsic Value outstanding	$ 196
Number of stock awards exercisable at end of the period (in shares)	8,293,122
Weighted-Average Remaining Contractual Life exercisable (in years)	3 years 9 months 15 days
Weighted Average Exercise Price (in dollars per share)	$ 44.29
Aggregate Intrinsic Value exercisable	$ 196
Stock Options and Stock Appreciation Rights (SARs) | Exercise Price Range 63.04 To 73.20
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	7,876,270
Weighted Average Remaining Contractual Life outstanding (in years)	1 year 1 month 25 days
Weighted Average Exercise Price (in dollars per share)	$ 70.12
Aggregate Intrinsic Value outstanding	$ 10
Number of stock awards exercisable at end of the period (in shares)	7,876,270
Weighted-Average Remaining Contractual Life exercisable (in years)	1 year 1 month 25 days
Weighted Average Exercise Price (in dollars per share)	$ 70.12
Aggregate Intrinsic Value exercisable	$ 10
Stock Options and Stock Appreciation Rights (SARs) | Exercise Price Range 83.00 To 86.77
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	7,433,988
Weighted Average Remaining Contractual Life outstanding (in years)	9 years 29 days
Weighted Average Exercise Price (in dollars per share)	$ 83.05
Aggregate Intrinsic Value outstanding	$ 0
Number of stock awards exercisable at end of the period (in shares)	520,547
Weighted-Average Remaining Contractual Life exercisable (in years)	9 years 2 months 6 days
Weighted Average Exercise Price (in dollars per share)	$ 83
Aggregate Intrinsic Value exercisable	$ 0
Stock Options and Stock Appreciation Rights (SARs) | Exercise Price Range 88.51 To 96.31
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	8,872,548
Weighted Average Remaining Contractual Life outstanding (in years)	7 years 5 months 26 days
Weighted Average Exercise Price (in dollars per share)	$ 92.88
Aggregate Intrinsic Value outstanding	$ 0
Number of stock awards exercisable at end of the period (in shares)	2,254,845
Weighted-Average Remaining Contractual Life exercisable (in years)	6 years 9 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 91.53
Aggregate Intrinsic Value exercisable	$ 0
Stock Options and Stock Appreciation Rights (SARs) | Exercise Price Range 102.13 To 110.09
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	5,862,597
Weighted Average Remaining Contractual Life outstanding (in years)	5 years 8 months 15 days
Weighted Average Exercise Price (in dollars per share)	$ 106.31
Aggregate Intrinsic Value outstanding	$ 0
Number of stock awards exercisable at end of the period (in shares)	5,862,597
Weighted-Average Remaining Contractual Life exercisable (in years)	5 years 8 months 15 days
Weighted Average Exercise Price (in dollars per share)	$ 106.31
Aggregate Intrinsic Value exercisable	$ 0
Restricted Stock Units (RSUs)
Additional Stock-based Award Information under Restricted Stock Units Activity
Weighted-average fair value per share of stock awards granted	$ 77.55	$ 89.18	$ 84.05
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 109	$ 106	$ 117
Outstanding at end of year (in shares)	4,330,513	4,084,136
Weighted average remaining contractual life (in years)	1 year 2 months
Performance Restricted Stock Units (PRSUs)
Additional Stock-based Award Information under Restricted Stock Units Activity
Weighted-average fair value per share of stock awards granted	$ 77.47	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 0	$ 0	$ 0
Outstanding at end of year (in shares)	132,068	0
Weighted average remaining contractual life (in years)	2 years

Derivative financial instrume66

Derivative financial instruments and risk management (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Derivative [Line Items]
Maximum length of time policy, foreign currency cash flow hedge	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	$ 8
Commodity forward and option contracts, maximum period (in years)	5 years
Machinery, Energy & Transportation
Derivative [Line Items]
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 4
Financial Products
Derivative [Line Items]
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 1

Derivative financial instrume67

Derivative financial instruments and risk management (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Derivatives Fair Value
Asset Fair Value	$ 105	$ 128
Liability Fair Value	(56)	(214)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	14	27
Liability Fair Value	(46)	(191)
Financial Products
Derivatives Fair Value
Asset Fair Value	91	101
Liability Fair Value	(10)	(23)
Designated derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	35	(38)
Designated derivatives | Foreign exchange contracts | Receivables - trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	12	25
Designated derivatives | Foreign exchange contracts | Accrued expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(25)	(134)
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	51	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	14	(48)
Undesignated derivatives | Foreign exchange contracts | Receivables - trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	2	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	36	17
Undesignated derivatives | Foreign exchange contracts | Accrued expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(9)	(43)
Undesignated derivatives | Foreign exchange contracts | Accrued expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(6)	(15)
Undesignated derivatives | Commodity contracts | Accrued expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	$ (12)	$ (14)

Derivative financial instrume68

Derivative financial instruments and risk management (Details 3) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Machinery, Energy & Transportation
Derivative notional amounts
Derivative instruments notional amount	$ 2,040	$ 3,128
Financial Products
Derivative notional amounts
Derivative instruments notional amount	$ 3,539	$ 5,249

Derivative financial instrume69

Derivative financial instruments and risk management (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Designated derivatives | Fair Value Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ (27)	$ (41)	$ (107)
Gains (Losses) on Borrowings	26	23	114
Designated derivatives | Fair Value Hedges | Interest rate contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	(27)	(41)	(107)
Gains (Losses) on Borrowings	26	23	114
Designated derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	(30)	(187)	(6)
Amount of Gains (Losses) Reclassified from AOCI to Earnings	(139)	(6)	(66)
Recognized in Earnings (Ineffective Portion)	0	0	1
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	(33)	(118)	(4)
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	(128)	5	(57)
Recognized in Earnings (Ineffective Portion)	0	0	0
Gains (Losses) reclassified from AOCI to earnings for derivatives dedesignated as related transactions are no longer probable to occur			(3)
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	0
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings	1
Recognized in Earnings (Ineffective Portion)	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	(63)	0
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings			(3)
Recognized in Earnings (Ineffective Portion)			0
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings	(6)	(5)
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)	3	(6)	(2)
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings	(6)	(6)	(6)
Recognized in Earnings (Ineffective Portion)	0	0	1
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(87)	(120)	18
Undesignated derivatives | Foreign exchange contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(32)	(60)	17
Undesignated derivatives | Foreign exchange contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(34)	(47)	8
Undesignated derivatives | Interest rate contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	2	2	(1)
Undesignated derivatives | Interest rate contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	0	0	(3)
Undesignated derivatives | Commodity contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ (23)	$ (15)	$ (3)

Derivative financial instrume70

Derivative financial instruments and risk management (Details 5) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Offsetting Assets
Gross Amount of Recognized Assets	$ 105	$ 128
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	105	128
Financial Instruments	(19)	(35)
Cash Collateral Received	0	0
Net Amount of Assets	86	93
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	14	27
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	14	27
Financial Instruments	(14)	(27)
Cash Collateral Received	0	0
Net Amount of Assets	0	0
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	91	101
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	91	101
Financial Instruments	(5)	(8)
Cash Collateral Received	0	0
Net Amount of Assets	$ 86	$ 93

Derivative financial instrume71

Derivative financial instruments and risk management (Details 6) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Offsetting Liabilities
Gross Amount of Recognized Liabilities	$ (56)	$ (214)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	(56)	(214)
Financial Instruments	19	35
Cash Collateral Pledged	0	0
Net Amount of Liabilities	(37)	(179)
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(46)	(191)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	(46)	(191)
Financial Instruments	14	27
Cash Collateral Pledged	0	0
Net Amount of Liabilities	(32)	(164)
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(10)	(23)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	(10)	(23)
Financial Instruments	5	8
Cash Collateral Pledged	0	0
Net Amount of Liabilities	$ (5)	$ (15)

Other income (expense) (Details

Other income (expense) (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Income and Expenses [Abstract]
Investment and interest income		$ 65	$ 66	$ 84
Foreign exchange gains (losses)		(228)	54	(254)
License fee income		111	128	114
Gains (losses) on sale of securities and affiliated companies		176	36	21
Miscellaneous income (loss)		(18)	(45)	0
Other income (expense)		$ 106	$ 239	$ (35)
Third party logistics business, investment
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Realized Gain (Loss) on Disposal	$ 120
Equity Method Investment, Percentage Sold	35.00%

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income taxes paid	$ 1,143	$ 1,595	$ 1,544
Components of profit (loss) before taxes
U.S	241	2,022	1,938
Non-U.S	2,614	3,061	3,190
Consolidated profit before taxes	2,855	5,083	5,128
Current tax provision (benefit):
U.S.	525	715	407
Non-U.S.	656	883	805
State (U.S.)	42	48	33
Current tax provision (benefit)	1,223	1,646	1,245
Deferred tax provision (benefit):
U.S.	(501)	(167)	79
Non-U.S.	38	(77)	(7)
State (U.S.)	(18)	(22)	2
Deferred tax provision (benefit)	(481)	(266)	74
Provision (benefit) for income taxes	$ 742	$ 1,380	$ 1,319

Income taxes (Details 2)

Income taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of the U.S. federal statutory rate to effective rate:
Taxes at U.S. statutory rate	$ 999	$ 1,779	$ 1,795
U. S. statutory tax rate (as a percent)	35.00%	35.00%	35.00%
(Decreases) increases in taxes resulting from:
Non-U.S. subsidiaries taxed at other than 35%	$ (198)	$ (249)	$ (268)
Non-U.S. subsidiaries taxed at other than 35% (as a percent)	(6.90%)	(4.90%)	(5.20%)
State and local taxes, net of federal	$ 16	$ 17	$ 23
State and local taxes, net of federal (as a percent)	0.50%	0.30%	0.40%
Interest and penalties, net of tax	$ 12	$ 12	$ 4
Interest and penalties, net of tax (as a percent)	0.40%	0.20%	0.10%
U.S. research and production incentives	$ (95)	$ (125)	$ (91)
U.S. research and production incentives (as a percent)	(3.30%)	(2.40%)	(1.80%)
Other-net	$ (34)	$ (10)	$ (2)
Other-net (as a percent)	(1.20%)	(0.20%)	0.00%
Total of taxes at statutory rate plus increases and decreases	$ 700	$ 1,424	$ 1,461
Total of tax rates at statutory rate plus increases and decreases in the rate (as a percent)	24.50%	28.00%	28.50%
Prior year tax and interest adjustments	$ 42	$ (21)	$ (55)
Prior year tax and interest adjustments (as a percent)	1.50%	(0.40%)	(1.10%)
Release of valuation allowances	$ 0	$ (23)	$ 0
Release of valuation allowances (as a percent)	0.00%	(0.50%)	0.00%
Tax law changes	$ 0	$ 0	$ (87)
Tax law changes (as a percent)	(0.00%)	(0.00%)	(1.70%)
Provision (benefit) for income taxes	$ 742	$ 1,380	$ 1,319
Provision (benefit) for income taxes (as a percent)	26.00%	27.10%	25.70%
Benefit from research and development tax credit retroactively extended	$ 0	$ 0	$ (87)
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	118	84
Cash, Cash Equivalents, and Short-term Investments	6,460	7,341	6,081	$ 5,490
Pre-tax foreign currency permanent difference	180	90	$ 10
Other Tax Expense (Benefit)	(26)	12
Income Tax Reconciliation Settlement Benefit Including Interest		(33)
Tax Adjustments, Settlements, and Unusual Provisions		(16)
Settlement benefit, interest and penalties		(17)
Tax Correction Prior Years		$ 55
Undistributed profits of non-U.S. subsidiaries considered indefinitely reinvested	17,000
Tax Year Prior Years
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	68
Non-US
Income Tax Contingency [Line Items]
Cash, Cash Equivalents, and Short-term Investments	$ 5,000

Income taxes (Details 3)

Income taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets
Deferred and refundable income taxes	$ 910	$ 992
Noncurrent deferred and refundable income taxes	1,532	1,267
Total deferred tax assets	2,442	2,259
Deferred tax liabilities
Other current liabilities	59	62
Other liabilities	351	414
Deferred income taxes-net	$ 2,032	$ 1,783

Income taxes (Details 4)

Income taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deferred income tax assets:
Pension	$ 1,694	$ 1,513
Postemployment benefits other than pensions	1,339	1,514
Tax carryforwards	1,098	826
Warranty reserves	359	346
Stock based compensation	356	327
Inventory	129	123
Allowance for credit losses	203	198
Post sale discounts	185	175
Deferred compensation	124	132
Other-net	572	549
Deferred income tax assets, Total	6,059	5,703
Deferred income tax liabilities:
Capital and intangible assets	(2,561)	(2,625)
Bond discount	(225)	(233)
Translation	(343)	(252)
Undistributed profits of non-U.S. subsidiaries	(82)	(69)
Deferred income tax liabilities, Total	(3,211)	(3,179)
Valuation allowance for deferred tax assets	(816)	(741)
Deferred income taxes-net	$ 2,032	$ 1,783

Income taxes (Details 5)

Income taxes (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating loss and Tax credit carryforwards
Valuation allowance for deferred tax assets	$ (816)	$ (741)
Deferred tax assets, operating loss and tax credit carryforwards	189
U.S foreign tax credit carryforwards	307
U.S. state taxing jurisdictions
Operating loss and Tax credit carryforwards
Valuation allowance for deferred tax assets	(164)
U.S. state taxing jurisdictions | 2016-2035
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	557
U.S. state taxing jurisdictions | Over the next five to fifteen years
Operating loss and Tax credit carryforwards
Tax credit carryforwards	$ 145
State tax credit carryforward expiration date, minimum	5 years
State tax credit carryforwards expiration date, maximum	15 years
Non-U.S. taxing jurisdictions
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	$ 2,637
Valuation allowance for deferred tax assets	(652)
Non-U.S. taxing jurisdictions | Expiring in 2016
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	1
Non-U.S. taxing jurisdictions | Expiring in 2017
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	3
Non-U.S. taxing jurisdictions | Expiring in 2018
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	84
Non-U.S. taxing jurisdictions | Expire between 2019-2021
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	547
Non-U.S. taxing jurisdictions | Expire between 2022-2036
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	222
Non-U.S. taxing jurisdictions | Unlimited
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	$ 1,780

Income taxes (Details 6)

Income taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Unrecognized tax benefits, beginning	$ 846	$ 759
Additions for tax positions related to current year	73	58
Unrecognized tax benefits, increase resulting from prior period tax positions	118	84
Reductions for tax positions related to prior years	(30)	(31)
Reductions for settlements	(30)	(18)
Reductions for expiration of statute of limitations	(9)	(6)
Unrecognized tax benefits, ending	968	846	$ 759
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	934	804
Net provision for interest and penalties	20	3	$ 7
Interest and penalties, accrued	79	61
Income tax examination, proposed liability increase/(decrease)	1,000
Income tax adjustment	125
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	$ 118	$ 84
Length of time tax years subject to examination, minimum	3 years
Length of time tax years subject to examination, maximum	8 years
Tax Year Prior Years
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Unrecognized tax benefits, increase resulting from prior period tax positions	$ 68
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	$ 68

Cat Financial Financing Activ79

Cat Financial Financing Activities (Details) - Wholesale Receivables - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Contractual maturities of wholesale inventory receivables
2,016	$ 1,292
2,017	412
2,018	287
2,019	70
2,020	27
Thereafter	4
Total Amounts Due	2,092
Guaranteed residual value	62
Unguaranteed residual value	50
Less: Unearned Income	(39)
Total	2,165	$ 2,170
Wholesale Installment Contracts
Contractual maturities of wholesale inventory receivables
2,016	174
2,017	98
2,018	71
2,019	37
2,020	15
Thereafter	2
Total Amounts Due	397
Guaranteed residual value	0
Unguaranteed residual value	0
Less: Unearned Income	(7)
Total	390
Wholesale Finance Leases
Contractual maturities of wholesale inventory receivables
2,016	88
2,017	78
2,018	55
2,019	28
2,020	10
Thereafter	2
Total Amounts Due	261
Guaranteed residual value	62
Unguaranteed residual value	50
Less: Unearned Income	(29)
Total	344
Wholesale Notes
Contractual maturities of wholesale inventory receivables
2,016	1,030
2,017	236
2,018	161
2,019	5
2,020	2
Thereafter	0
Total Amounts Due	1,434
Guaranteed residual value	0
Unguaranteed residual value	0
Less: Unearned Income	(3)
Total	$ 1,431

Cat Financial Financing Activ80

Cat Financial Financing Activities (Details 2) - Finance Receivables - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Contractual maturities of outstanding finance receivables
2,016	$ 9,112
2,017	5,494
2,018	3,669
2,019	2,099
2,020	1,280
Thereafter	1,082
Total Amounts Due	22,736
Guaranteed residual value	307
Unguaranteed residual value	642
Less: Unearned Income	(726)
Total	22,959	$ 24,066
Retail Installment Contracts
Contractual maturities of outstanding finance receivables
2,016	2,472
2,017	1,923
2,018	1,300
2,019	662
2,020	188
Thereafter	8
Total Amounts Due	6,553
Guaranteed residual value	0
Unguaranteed residual value	0
Less: Unearned Income	(133)
Total	6,420
Retail Finance Leases
Contractual maturities of outstanding finance receivables
2,016	2,508
2,017	1,634
2,018	922
2,019	415
2,020	166
Thereafter	98
Total Amounts Due	5,743
Guaranteed residual value	307
Unguaranteed residual value	642
Less: Unearned Income	(505)
Total	6,187
Retail Notes
Contractual maturities of outstanding finance receivables
2,016	4,132
2,017	1,937
2,018	1,447
2,019	1,022
2,020	926
Thereafter	976
Total Amounts Due	10,440
Guaranteed residual value	0
Unguaranteed residual value	0
Less: Unearned Income	(88)
Total	$ 10,352

Cat Financial Financing Activ81

Cat Financial Financing Activities (Details 3) - Finance Receivables - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Allowance for credit loss activity:
Balance at beginning of year	$ 398	$ 375
Receivables written off	(196)	(151)
Recoveries on receivables previously written off	41	47
Provision for credit losses	118	150
Other	(25)	(23)
Balance at end of year	336	398
Allowance for Credit Losses:
Individually evaluated for impairment			$ 65	$ 75
Collectively evaluated for impairment			271	323
Ending Balance	398	375	336	398
Recorded Investment in Finance Receivables:
Individually evaluated for impairment			601	613
Collectively evaluated for impairment			22,358	23,453
Ending balance-recorded investment in finance receivables			22,959	24,066
Customer
Allowance for credit loss activity:
Balance at beginning of year	388	365
Receivables written off	(196)	(151)
Recoveries on receivables previously written off	41	47
Provision for credit losses	119	150
Other	(25)	23
Balance at end of year	327	388
Allowance for Credit Losses:
Individually evaluated for impairment			65	75
Collectively evaluated for impairment			262	313
Ending Balance	388	365	327	388
Recorded Investment in Finance Receivables:
Individually evaluated for impairment			601	613
Collectively evaluated for impairment			18,788	19,899
Ending balance-recorded investment in finance receivables			19,389	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 year	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			3,570	3,554
Ending balance-recorded investment in finance receivables			$ 3,570	$ 3,554

Cat Financial Financing Activ82

Cat Financial Financing Activities (Details 4) - Finance Receivables - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	$ 596	$ 651
Current	22,363	23,415
Total	22,959	24,066
91 Days or More Past Due and Still Accruing	22	35
31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	135	175
61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	64	80
91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	397	396
Customer
Aging related to loans and finance leases
Total	19,389	20,512
Customer | North America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	87	81
Current	7,850	7,192
Total	7,937	7,273
91 Days or More Past Due and Still Accruing	4	4
Customer | North America | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	45	46
Customer | North America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	12	8
Customer | North America | 91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	30	27
Customer | Europe
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	69	68
Current	2,358	2,607
Total	2,427	2,675
91 Days or More Past Due and Still Accruing	9	6
Customer | Europe | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	18	16
Customer | Europe | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	7	23
Customer | Europe | 91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	44	29
Customer | Asia Pacific
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	54	120
Current	1,647	2,316
Total	1,701	2,436
91 Days or More Past Due and Still Accruing	6	16
Customer | Asia Pacific | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	21	29
Customer | Asia Pacific | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	12	22
Customer | Asia Pacific | 91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	21	69
Customer | Mining
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	75	39
Current	1,793	2,084
Total	1,868	2,123
91 Days or More Past Due and Still Accruing	1	0
Customer | Mining | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	6	28
Customer | Mining | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	1	0
Customer | Mining | 91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	68	11
Customer | Latin America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	275	274
Current	1,998	2,583
Total	2,273	2,857
91 Days or More Past Due and Still Accruing	0	8
Customer | Latin America | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	45	55
Customer | Latin America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	31	23
Customer | Latin America | 91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	199	196
Customer | Caterpillar Power Finance
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	36	69
Current	3,147	3,079
Total	3,183	3,148
91 Days or More Past Due and Still Accruing	2	1
Customer | Caterpillar Power Finance | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	1
Customer | Caterpillar Power Finance | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	1	4
Customer | Caterpillar Power Finance | 91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	35	64
Dealer
Aging related to loans and finance leases
Total	3,570	3,554
Dealer | North America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Current	2,209	2,189
Total	2,209	2,189
91 Days or More Past Due and Still Accruing	0	0
Dealer | North America | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | North America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | North America | 91 Days or More Past Due
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	149	153
91 Days or More Past Due and Still Accruing	0	0
Dealer | Europe | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Europe | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Europe | 91 Days or More Past Due
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	552	566
Total	552	566
91 Days or More Past Due and Still Accruing	0	0
Dealer | Asia Pacific | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Asia Pacific | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Asia Pacific | 91 Days or More Past Due
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	4	0
91 Days or More Past Due and Still Accruing	0	0
Dealer | Mining | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Mining | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Mining | 91 Days or More Past Due
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	653	646
Total	653	646
91 Days or More Past Due and Still Accruing	0	0
Dealer | Latin America | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Latin America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Latin America | 91 Days or More Past Due
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	3	0
91 Days or More Past Due and Still Accruing	0	0
Dealer | Caterpillar Power Finance | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Caterpillar Power Finance | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Dealer | Caterpillar Power Finance | 91 Days or More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	$ 0	$ 0

Cat Financial Financing Activ83

Cat Financial Financing Activities (Details 5) - Finance Receivables - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Customer
Impaired finance receivables
Recorded Investment With No Allowance Recorded	$ 408	$ 251
Unpaid Principal Balance With No Allowance Recorded	407	249
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	193	362
Unpaid Principal Balance With An Allowance Recorded	191	360
Related Allowance With An Allowance Recorded	65	75
Recorded Investment, Total	601	613
Unpaid Principal Balance, Total	598	609
Related Allowance, Total	65	75
Average Recorded Investment With No Allowance Recorded	332	333	$ 421
Interest Income Recognized With No Allowance Recorded	10	11	12
Average Recorded Investment With An Allowance Recorded	268	274	238
Interest Income Recognized With An Allowance Recorded	10	12	6
Average Recorded Investment, Total	600	607	659
Interest Income Recognized, Total	20	23	18
Customer | North America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	12	14
Unpaid Principal Balance With No Allowance Recorded	12	14
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	14	6
Unpaid Principal Balance With An Allowance Recorded	13	6
Related Allowance With An Allowance Recorded	4	1
Recorded Investment, Total	26	20
Unpaid Principal Balance, Total	25	20
Related Allowance, Total	4	1
Average Recorded Investment With No Allowance Recorded	12	20	25
Interest Income Recognized With No Allowance Recorded	1	1	3
Average Recorded Investment With An Allowance Recorded	9	9	18
Interest Income Recognized With An Allowance Recorded	0	0	1
Average Recorded Investment, Total	21	29	43
Interest Income Recognized, Total	1	1	4
Customer | Europe
Impaired finance receivables
Recorded Investment With No Allowance Recorded	41	44
Unpaid Principal Balance With No Allowance Recorded	41	43
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	11	12
Unpaid Principal Balance With An Allowance Recorded	10	12
Related Allowance With An Allowance Recorded	5	4
Recorded Investment, Total	52	56
Unpaid Principal Balance, Total	51	55
Related Allowance, Total	5	4
Average Recorded Investment With No Allowance Recorded	42	47	49
Interest Income Recognized With No Allowance Recorded	1	1	1
Average Recorded Investment With An Allowance Recorded	14	21	22
Interest Income Recognized With An Allowance Recorded	1	1	1
Average Recorded Investment, Total	56	68	71
Interest Income Recognized, Total	2	2	2
Customer | Asia Pacific
Impaired finance receivables
Recorded Investment With No Allowance Recorded	1	1
Unpaid Principal Balance With No Allowance Recorded	1	1
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	34	29
Unpaid Principal Balance With An Allowance Recorded	34	29
Related Allowance With An Allowance Recorded	4	8
Recorded Investment, Total	35	30
Unpaid Principal Balance, Total	35	30
Related Allowance, Total	4	8
Average Recorded Investment With No Allowance Recorded	2	3	4
Interest Income Recognized With No Allowance Recorded	0	0	0
Average Recorded Investment With An Allowance Recorded	35	22	18
Interest Income Recognized With An Allowance Recorded	2	1	1
Average Recorded Investment, Total	37	25	22
Interest Income Recognized, Total	2	1	1
Customer | Mining
Impaired finance receivables
Recorded Investment With No Allowance Recorded	84	29
Unpaid Principal Balance With No Allowance Recorded	84	29
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	11	138
Unpaid Principal Balance With An Allowance Recorded	11	137
Related Allowance With An Allowance Recorded	3	9
Recorded Investment, Total	95	167
Unpaid Principal Balance, Total	95	166
Related Allowance, Total	3	9
Average Recorded Investment With No Allowance Recorded	75	69	61
Interest Income Recognized With No Allowance Recorded	3	3	3
Average Recorded Investment With An Allowance Recorded	39	90	1
Interest Income Recognized With An Allowance Recorded	1	7	0
Average Recorded Investment, Total	114	159	62
Interest Income Recognized, Total	4	10	3
Customer | Latin America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	28	34
Unpaid Principal Balance With No Allowance Recorded	28	34
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	53	42
Unpaid Principal Balance With An Allowance Recorded	53	42
Related Allowance With An Allowance Recorded	21	12
Recorded Investment, Total	81	76
Unpaid Principal Balance, Total	81	76
Related Allowance, Total	21	12
Average Recorded Investment With No Allowance Recorded	31	30	11
Interest Income Recognized With No Allowance Recorded	0	0	0
Average Recorded Investment With An Allowance Recorded	56	36	44
Interest Income Recognized With An Allowance Recorded	3	1	2
Average Recorded Investment, Total	87	66	55
Interest Income Recognized, Total	3	1	2
Customer | Caterpillar Power Finance
Impaired finance receivables
Recorded Investment With No Allowance Recorded	242	129
Unpaid Principal Balance With No Allowance Recorded	241	128
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	70	135
Unpaid Principal Balance With An Allowance Recorded	70	134
Related Allowance With An Allowance Recorded	28	41
Recorded Investment, Total	312	264
Unpaid Principal Balance, Total	311	262
Related Allowance, Total	28	41
Average Recorded Investment With No Allowance Recorded	170	164	271
Interest Income Recognized With No Allowance Recorded	5	6	5
Average Recorded Investment With An Allowance Recorded	115	96	135
Interest Income Recognized With An Allowance Recorded	3	2	1
Average Recorded Investment, Total	285	260	406
Interest Income Recognized, Total	8	8	6
Dealer
Impaired finance receivables
Recorded Investment, Total	$ 0	0
Average Recorded Investment, Total		$ 0	$ 0

Cat Financial Finacning Activit

Cat Financial Finacning Activities (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Period after which collection of future income is considered as not probable (in days)	120 days
Finance Receivables
Financing Receivable, Recorded Investment, Past Due [Line Items]
Period after which collection of future income is considered as not probable (in days)	120 days
Finance Receivables | Dealer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 0	$ 0
Finance Receivables | Customer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	485	468
Finance Receivables | Customer | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	31	27
Finance Receivables | Customer | EMEA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	39	28
Finance Receivables | Customer | Asia Pacific
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	15	54
Finance Receivables | Customer | Mining
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	106	62
Finance Receivables | Customer | Latin America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	217	201
Finance Receivables | Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 77	$ 96

Cat Financial Financing Activ85

Cat Financial Financing Activities (Details 7) - Finance Receivables $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)Contracts	Dec. 31, 2014USD ($)Contracts	Dec. 31, 2013USD ($)Contracts
Customer
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	94	164	194
Pre-TDR Outstanding Recorded Investment	$ 354	$ 373	$ 295
Post-TDR Outstanding Recorded Investment	$ 338	$ 360	$ 299
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	24	68	26
Post-TDR Recorded Investment	$ 2	$ 4	$ 7
Customer | North America
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	14	34	62
Pre-TDR Outstanding Recorded Investment	$ 1	$ 12	$ 9
Post-TDR Outstanding Recorded Investment	$ 1	$ 7	$ 9
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	12	11	19
Post-TDR Recorded Investment	$ 1	$ 1	$ 4
Customer | Europe
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	23	8	51
Pre-TDR Outstanding Recorded Investment	$ 2	$ 7	$ 7
Post-TDR Outstanding Recorded Investment	$ 2	$ 7	$ 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	46	5
Post-TDR Recorded Investment	$ 0	$ 2	$ 0
Customer | Asia Pacific
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	21	2	3
Pre-TDR Outstanding Recorded Investment	$ 26	$ 0	$ 1
Post-TDR Outstanding Recorded Investment	$ 26	$ 0	$ 1
Customer | Mining
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	4	51	45
Pre-TDR Outstanding Recorded Investment	$ 65	$ 185	$ 123
Post-TDR Outstanding Recorded Investment	$ 65	$ 176	$ 123
Customer | Latin America
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	11	51	16
Pre-TDR Outstanding Recorded Investment	$ 1	$ 32	$ 2
Post-TDR Outstanding Recorded Investment	$ 2	$ 31	$ 2
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	12	11	0
Post-TDR Recorded Investment	$ 1	$ 1	$ 0
Customer | Caterpillar Power Finance
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	21	18	17
Pre-TDR Outstanding Recorded Investment	$ 259	$ 137	$ 153
Post-TDR Outstanding Recorded Investment	$ 242	$ 139	157
Additional funds loaned not recorded as TDRs			$ 25
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	0	0	2
Post-TDR Recorded Investment	$ 0	$ 0	$ 3
Dealer
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts)	0	0	0

Inventories (Details)

Inventories (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2014
Inventory Disclosure [Abstract]
Percentage of LIFO Inventory	60.00%		60.00%
Raw materials	$ 2,467		$ 2,986
Work-in-process	1,857		2,455
Finished goods	5,122		6,504
Supplies	254		260
Total inventories	9,700		$ 12,205
Long-term material purchase obligations	$ 1,407
Effect of LIFO Inventory Liquidation on Cost of goods sold		$ 115
Effect of LIFO Inventory Liquidation on Income		$ 81
Effect of LIFO Inventory Liquidation on Profit Per Share		$ 0.12

Property, plant and equipment87

Property, plant and equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, plant and equipment
Total property, plant and equipment, at cost	$ 31,977	$ 31,572
Less: Accumulated depreciation	(15,887)	(14,995)
Property, plant and equipment - net	16,090	16,577
Commitments for the purchase or construction of capital assets	224
Assets recorded under capital leases
Gross capital leases	124	111
Less: Accumulated depreciation	(44)	(52)
Net capital leases	80	59
Minimum rental payments on assets recorded under capital leases were:
2,016	7
2,017	24
2,018	7
2,019	7
2,020	8
Thereafter	31
Minimum rental payments to be received for equipment leased to others were:
2,016	886
2,017	573
2,018	352
2,019	177
2,020	75
Thereafter	61
Land
Property, plant and equipment
Total property, plant and equipment, at cost	644	665
Buildings and land improvements
Property, plant and equipment
Total property, plant and equipment, at cost	7,242	7,119
Machinery, equipment and other
Property, plant and equipment
Total property, plant and equipment, at cost	15,686	15,516
Software
Property, plant and equipment
Total property, plant and equipment, at cost	1,636	1,455
Equipment leased to others
Property, plant and equipment
Total property, plant and equipment, at cost	5,728	5,596
Less: Accumulated depreciation	(1,571)	(1,565)
Property, plant and equipment - net	4,157	4,031
Construction-in-process
Property, plant and equipment
Total property, plant and equipment, at cost	$ 1,041	$ 1,221
Minimum | Buildings and land improvements
Property, plant and equipment
Useful Lives (Years)	20 years
Minimum | Machinery, equipment and other
Property, plant and equipment
Useful Lives (Years)	3 years
Minimum | Software
Property, plant and equipment
Useful Lives (Years)	3 years
Minimum | Equipment leased to others
Property, plant and equipment
Useful Lives (Years)	1 year
Maximum | Buildings and land improvements
Property, plant and equipment
Useful Lives (Years)	45 years
Maximum | Machinery, equipment and other
Property, plant and equipment
Useful Lives (Years)	10 years
Maximum | Software
Property, plant and equipment
Useful Lives (Years)	7 years
Maximum | Equipment leased to others
Property, plant and equipment
Useful Lives (Years)	10 years

Investments in unconsolidated88

Investments in unconsolidated affiliated companies (Details) - USD ($) $ in Millions	1 Months Ended
	Feb. 28, 2015	Dec. 31, 2015	Dec. 31, 2014
Caterpillar's investments in unconsolidated affiliated companies:
Investments in equity method companies		$ 203	$ 248
Plus: Investments in cost method companies		43	9
Total investments in unconsolidated affiliated companies		$ 246	$ 257
Third party logistics business, investment
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Percentage Sold	35.00%
Equity Method Investment, Net Sales Proceeds	$ 177
Equity Method Investment, Cash Proceeds from Sale	167
Equity Method Investment, Note Receivable from Sale	10
Equity Method Investment, Realized Gain (Loss) on Disposal	120
Equity Method Investment, Noncontrolling Interest	$ 57

Intangible assets and goodwil89

Intangible assets and goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Oct. 31, 2015	Sep. 30, 2013
Intangible assets
Weighted Amortizable Life (in years)	14 years	14 years
Gross Carrying Amount	$ 4,323	$ 4,452
Accumulated Amortization	(1,502)	(1,376)
Net	2,821	3,076
Total intangible assets, net	2,821	3,076
Impaired indefinite-lived intangible assets		18
Amortization expense	337	$ 365	$ 371
2,016	341
2,017	330
2,018	324
2,019	321
2,020	314
Thereafter	1,191
Rail Product Solutions Inc.
Intangible assets
Finite-lived intangible assets	$ 82			$ 82
Johan Walter Berg AB
Intangible assets
Finite-lived intangible assets					$ 70
Customer relationships
Intangible assets
Weighted Amortizable Life (in years)	15 years	15 years
Gross Carrying Amount	$ 2,489	$ 2,489
Accumulated Amortization	(809)	(669)
Net	$ 1,680	1,820
Gross intangible assets reclassified to held for sale and/or divested		48
Current period accumulated amortization on held for sale or disposed of intangible assets		$ 9
Intellectual property
Intangible assets
Weighted Amortizable Life (in years)	11 years	11 years
Gross Carrying Amount	$ 1,660	$ 1,724
Accumulated Amortization	(626)	(578)
Net	$ 1,034	$ 1,146
Other
Intangible assets
Weighted Amortizable Life (in years)	12 years	11 years
Gross Carrying Amount	$ 174	$ 239
Accumulated Amortization	(67)	(129)
Net	$ 107	$ 110

Intangible assets and goodwil90

Intangible assets and goodwill (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Carrying amount of goodwill by reportable segment
Goodwill acquired	$ 133	$ 7
Goodwill reclassified to held for sale and/or divested		15
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	7,296	7,558
Impairments, beginning of year	(602)	(602)
Goodwill acquired	133	7
Held for Sale and Business Divestitures	0	(15)
Impairment Loss	0	0	$ 0
Other Adjustments	(212)	(254)
Goodwill, end of year	7,217	7,296	7,558
Impairments, end of year	(602)	(602)	(602)
Net Goodwill, end of year	6,615	6,694	6,956
Rail Product Solutions Inc.
Carrying amount of goodwill by reportable segment
Goodwill acquired	53
Changes in carrying amount of goodwill by reportable segment:
Goodwill acquired	53
RDS Manufacturing Inc.
Carrying amount of goodwill by reportable segment
Goodwill acquired	59
Changes in carrying amount of goodwill by reportable segment:
Goodwill acquired	59
Net Goodwill, end of year	59
Johan Walter Berg AB
Carrying amount of goodwill by reportable segment
Goodwill acquired			106
Goodwill, Purchase Accounting Adjustments		7
Changes in carrying amount of goodwill by reportable segment:
Goodwill acquired			106
Construction Industries
Carrying amount of goodwill by reportable segment
Goodwill acquired	0	0
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	275	291
Goodwill acquired	0	0
Held for Sale and Business Divestitures	0	0
Impairment Loss	0	0
Other Adjustments	(12)	(16)
Goodwill, end of year	263	275	291
Net Goodwill, end of year	263	275
Resource Industries
Carrying amount of goodwill by reportable segment
Goodwill acquired	0	0
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	4,287	4,468
Impairments, beginning of year	(580)	(580)
Goodwill acquired	0	0
Held for Sale and Business Divestitures	0	(15)
Impairment Loss	0	0
Other Adjustments	(142)	(166)
Goodwill, end of year	4,145	4,287	4,468
Impairments, end of year	(580)	(580)	(580)
Net Goodwill, end of year	3,565	3,707	3,888
Energy & Transportation
Carrying amount of goodwill by reportable segment
Goodwill acquired	133	7
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	2,542	2,600
Goodwill acquired	133	7
Held for Sale and Business Divestitures	0	0
Impairment Loss	0	0
Other Adjustments	(55)	(65)
Goodwill, end of year	2,620	2,542	2,600
Net Goodwill, end of year	2,620	2,542
All Other
Carrying amount of goodwill by reportable segment
Goodwill acquired	0	0
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	192	199
Impairments, beginning of year	(22)	(22)
Goodwill acquired	0	0
Held for Sale and Business Divestitures	0	0
Impairment Loss	0	0
Other Adjustments	(3)	(7)
Goodwill, end of year	189	192	199
Impairments, end of year	(22)	(22)	(22)
Net Goodwill, end of year	$ 167	$ 170	$ 177

Available-for-sale securities91

Available-for-sale securities (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities
Cost Basis	$ 1,577	$ 1,421
Unrealized pretax net gains (losses)	58	133
Fair Value	1,635	1,554
U.S. treasury bonds
Schedule of Available-for-sale Securities
Cost Basis	9	10
Unrealized pretax net gains (losses)	0	0
Fair Value	9	10
Other U.S. and non-U.S. government bonds
Schedule of Available-for-sale Securities
Cost Basis	71	94
Unrealized pretax net gains (losses)	1	0
Fair Value	72	94
Corporate bonds
Schedule of Available-for-sale Securities
Cost Basis	701	677
Unrealized pretax net gains (losses)	7	16
Fair Value	708	693
Asset-backed securities
Schedule of Available-for-sale Securities
Cost Basis	129	103
Unrealized pretax net gains (losses)	0	2
Fair Value	129	105
U.S. governmental agency mortgage-backed securities
Schedule of Available-for-sale Securities
Cost Basis	291	292
Unrealized pretax net gains (losses)	1	2
Fair Value	292	294
Residential
Schedule of Available-for-sale Securities
Cost Basis	12	15
Unrealized pretax net gains (losses)	0	0
Fair Value	12	15
Commercial
Schedule of Available-for-sale Securities
Cost Basis	59	63
Unrealized pretax net gains (losses)	2	4
Fair Value	61	67
Large capitalization value
Schedule of Available-for-sale Securities
Cost Basis	243	150
Unrealized pretax net gains (losses)	30	83
Fair Value	273	233
REIT
Schedule of Available-for-sale Securities
Cost Basis	25	0
Unrealized pretax net gains (losses)	0	0
Fair Value	25	0
Smaller company growth
Schedule of Available-for-sale Securities
Cost Basis	37	17
Unrealized pretax net gains (losses)	17	26
Fair Value	$ 54	$ 43

Available-for-sale securities92

Available-for-sale securities (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Less than 12 months
Fair Value	$ 572	$ 244
Unrealized Losses	14	3
12 months or more
Fair Value	96	173
Unrealized Losses	3	3
Total
Fair Value	668	417
Unrealized Losses	17	6
Corporate bonds
Less than 12 months
Fair Value	242	195
Unrealized Losses	3	1
12 months or more
Fair Value	27	32
Unrealized Losses	1	0
Total
Fair Value	269	227
Unrealized Losses	4	1
Asset-backed securities
Less than 12 months
Fair Value	84
Unrealized Losses	1
12 months or more
Fair Value	10
Unrealized Losses	1
Total
Fair Value	94
Unrealized Losses	2
U.S. governmental agency mortgage-backed securities
Less than 12 months
Fair Value	135	34
Unrealized Losses	1	0
12 months or more
Fair Value	57	140
Unrealized Losses	1	3
Total
Fair Value	192	174
Unrealized Losses	2	3
Large capitalization value
Less than 12 months
Fair Value	97	15
Unrealized Losses	8	2
12 months or more
Fair Value	2	1
Unrealized Losses	0	0
Total
Fair Value	99	16
Unrealized Losses	8	$ 2
Smaller company growth
Less than 12 months
Fair Value	14
Unrealized Losses	1
12 months or more
Fair Value	0
Unrealized Losses	0
Total
Fair Value	14
Unrealized Losses	$ 1

Available-for-sale securities93

Available-for-sale securities (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost Basis	$ 124
Due after one year through five years, Cost Basis	709
Due after five years through ten years, Cost Basis	49
Due after ten years, Cost Basis	28
Due in one year or less, Fair Value	124
Due after one year through five years, Fair Value	716
Due after five years through ten years, Fair Value	50
Due after ten years, Fair Value	28
Cost Basis	1,272
Fair Value	1,283
Schedule of Available-for-sale Securities
Cost Basis	1,577	$ 1,421
Fair Value	1,635	1,554
Available-for-sale Securities, Proceeds, Gains and Losses
Proceeds from the sale of available-for-sale securities	351	434	$ 449
Gross gains from the sale of available-for-sale securities	64	38	22
Gross losses from the sale of available-for-sale securities	2	2	$ 2
U.S. governmental agency mortgage-backed securities
Schedule of Available-for-sale Securities
Cost Basis	291	292
Fair Value	292	294
Residential
Schedule of Available-for-sale Securities
Cost Basis	12	15
Fair Value	12	15
Commercial
Schedule of Available-for-sale Securities
Cost Basis	59	63
Fair Value	$ 61	$ 67

Postemployment benefit plans (D

Postemployment benefit plans (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Voluntary retirement enhancement program
Defined Benefit Plan Disclosure
Curtailment expense	$ 86

Postemployment benefit plans 95

Postemployment benefit plans (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
U.S. Pension Benefits
Change in benefit obligation:
Benefit obligation, beginning of year	$ 16,249	$ 14,419
Service cost	181	157	$ 196
Interest cost	608	648	581
Plan amendments	0	0
Actuarial losses (gains)	(384)	1,994
Foreign currency exchange rates	0	0
Participant contributions	0	0
Benefits paid - gross	(890)	(963)
Less: federal subsidy on benefits paid	0	0
Curtailments, settlements and termination benefits	28	(6)
Acquisitions, divestitures and other	0	0
Benefit obligation, end of year	15,792	16,249	14,419
Accumulated benefit obligation, end of year	$ 15,550	$ 15,701
Weighted-average assumptions used to determine benefit obligation:
Discount rate (as a percent)	4.20%	3.80%
Rate of compensation increase (as a percent)	4.00%	4.00%
Non-U.S. Pension Benefits
Change in benefit obligation:
Benefit obligation, beginning of year	$ 4,801	$ 4,609
Service cost	110	109	120
Interest cost	146	185	166
Plan amendments	0	0
Actuarial losses (gains)	(167)	604
Foreign currency exchange rates	(292)	(436)
Participant contributions	8	9
Benefits paid - gross	(191)	(206)
Less: federal subsidy on benefits paid	0	0
Curtailments, settlements and termination benefits	(60)	(53)
Acquisitions, divestitures and other	0	(20)
Benefit obligation, end of year	4,355	4,801	4,609
Accumulated benefit obligation, end of year	$ 4,024	$ 4,408
Weighted-average assumptions used to determine benefit obligation:
Discount rate (as a percent)	3.20%	3.30%
Rate of compensation increase (as a percent)	3.80%	4.00%
Other Postretirement Benefits
Change in benefit obligation:
Benefit obligation, beginning of year	$ 4,938	$ 4,784
Service cost	101	82	108
Interest cost	181	213	195
Plan amendments	3	(1)
Actuarial losses (gains)	(626)	196
Foreign currency exchange rates	(42)	(30)
Participant contributions	52	61
Benefits paid - gross	(345)	(377)
Less: federal subsidy on benefits paid	11	14
Curtailments, settlements and termination benefits	40	(4)
Acquisitions, divestitures and other	0	0
Benefit obligation, end of year	$ 4,313	$ 4,938	$ 4,784
Weighted-average assumptions used to determine benefit obligation:
Discount rate (as a percent)	4.10%	3.90%
Rate of compensation increase (as a percent)	4.00%	4.00%
Effect of a one-percentage-point change in assumed health care cost trend
Effect of a one-percentage-point increase in current year service and interest cost components of other postretirement benefit cost	$ 37
Effect of a one-percentage-point decrease in current year service and interest cost components of other postretirement benefit cost	(6)
Effect of a one-percentage-point increase on accumulated postretirement benefit obligation	244
Effect of a one-percentage-point decrease on accumulated postretirement benefit obligation	$ (202)

Postemployment benefit plans 96

Postemployment benefit plans (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
U.S. Pension Benefits
Change in plan assets:
Fair value of plan assets, beginning of year	$ 12,530	$ 12,395
Actual return on plan assets	(225)	849
Foreign currency exchange rates	0	0
Company contributions	30	255
Participant contributions	0	0
Benefits paid	(890)	(963)
Settlements and termination benefits	(5)	(6)
Acquisitions, divestitures and other	0	0
Fair value of plan assets, end of year	$ 11,440	12,530
Information about plan asset allocations
Rebalancing of plan assets outside of target allocation (as a percent)	5.00%
U.S. Pension Benefits | Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	45.00%
U.S. Pension Benefits | Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	55.00%
U.S. Pension Benefits | Real estate
Change in plan assets:
Fair value of plan assets, beginning of year	$ 9
Fair value of plan assets, end of year	9	9
Non-U.S. Pension Benefits
Change in plan assets:
Fair value of plan assets, beginning of year	4,100	3,949
Actual return on plan assets	105	507
Foreign currency exchange rates	(232)	(352)
Company contributions	156	265
Participant contributions	8	9
Benefits paid	(191)	(206)
Settlements and termination benefits	(56)	(50)
Acquisitions, divestitures and other	0	(22)
Fair value of plan assets, end of year	$ 3,890	4,100
Non-U.S. Pension Benefits | Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	41.00%
Non-U.S. Pension Benefits | Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	51.00%
Non-U.S. Pension Benefits | Real estate
Change in plan assets:
Fair value of plan assets, beginning of year	$ 230
Fair value of plan assets, end of year	$ 172	230
Information about plan asset allocations
Target allocation of plan assets (as a percent)	5.00%
Non-U.S. Pension Benefits | Other
Information about plan asset allocations
Target allocation of plan assets (as a percent)	3.00%
Other Postretirement Benefits
Change in plan assets:
Fair value of plan assets, beginning of year	$ 776	822
Actual return on plan assets	3	75
Foreign currency exchange rates	0	0
Company contributions	164	195
Participant contributions	52	61
Benefits paid	(345)	(377)
Settlements and termination benefits	0	0
Acquisitions, divestitures and other	0	0
Fair value of plan assets, end of year	$ 650	$ 776
Other Postretirement Benefits | Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	70.00%
Other Postretirement Benefits | Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	30.00%

Postemployment benefit plans 97

Postemployment benefit plans (Details 4) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
U.S. Pension Benefits
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	$ 11,440	$ 12,530	$ 12,395
U.S. Pension Benefits | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	3,148	3,875
U.S. Pension Benefits | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	2,050	2,304
U.S. Pension Benefits | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	4,046	4,010
U.S. Pension Benefits | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	575	552
U.S. Pension Benefits | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	526	528
U.S. Pension Benefits | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	627	754
U.S. Pension Benefits | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	65	64
U.S. Pension Benefits | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	9	9
U.S. Pension Benefits | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	394	434
U.S. Pension Benefits | Level 1
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	5,177	6,041
U.S. Pension Benefits | Level 1 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	2,976	3,713
U.S. Pension Benefits | Level 1 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	2,044	2,291
U.S. Pension Benefits | Level 1 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 1 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 1 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 1 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 1 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 1 | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 1 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	157	37
U.S. Pension Benefits | Level 2
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	6,036	6,289
U.S. Pension Benefits | Level 2 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	1
U.S. Pension Benefits | Level 2 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	5	12
U.S. Pension Benefits | Level 2 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	4,004	3,985
U.S. Pension Benefits | Level 2 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	575	552
U.S. Pension Benefits | Level 2 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	526	528
U.S. Pension Benefits | Level 2 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	627	752
U.S. Pension Benefits | Level 2 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	65	62
U.S. Pension Benefits | Level 2 | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 2 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	234	397
U.S. Pension Benefits | Level 3
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	227	200
U.S. Pension Benefits | Level 3 | Equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	173	162	129
U.S. Pension Benefits | Level 3 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	172	161
U.S. Pension Benefits | Level 3 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	1	1
U.S. Pension Benefits | Level 3 | Fixed income securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	42	29	54
U.S. Pension Benefits | Level 3 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	42	25
U.S. Pension Benefits | Level 3 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 3 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
U.S. Pension Benefits | Level 3 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	2
U.S. Pension Benefits | Level 3 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	2
U.S. Pension Benefits | Level 3 | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	9	9	8
U.S. Pension Benefits | Level 3 | Other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	3	0	0
U.S. Pension Benefits | Level 3 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	3	0
Non-U.S. Pension Benefits
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	3,890	4,100	3,949
Non-U.S. Pension Benefits | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	544	552
Non-U.S. Pension Benefits | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	834	1,044
Non-U.S. Pension Benefits | Global equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	204	270
Non-U.S. Pension Benefits | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	138	90
Non-U.S. Pension Benefits | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	402	505
Non-U.S. Pension Benefits | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	64	1
Non-U.S. Pension Benefits | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	1,083	836
Non-U.S. Pension Benefits | Global fixed income
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	341	363
Non-U.S. Pension Benefits | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	172	230
Non-U.S. Pension Benefits | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	108	209
Non-U.S. Pension Benefits | Level 1
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	1,322	1,723
Non-U.S. Pension Benefits | Level 1 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	426	552
Non-U.S. Pension Benefits | Level 1 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	680	794
Non-U.S. Pension Benefits | Level 1 | Global equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	155	218
Non-U.S. Pension Benefits | Level 1 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 1 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 1 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 1 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 1 | Global fixed income
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 1 | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 1 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	61	159
Non-U.S. Pension Benefits | Level 2
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	2,561	2,318
Non-U.S. Pension Benefits | Level 2 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	118	0
Non-U.S. Pension Benefits | Level 2 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	152	250
Non-U.S. Pension Benefits | Level 2 | Global equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	49	52
Non-U.S. Pension Benefits | Level 2 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	135	81
Non-U.S. Pension Benefits | Level 2 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	400	503
Non-U.S. Pension Benefits | Level 2 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	64	1
Non-U.S. Pension Benefits | Level 2 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	1,083	836
Non-U.S. Pension Benefits | Level 2 | Global fixed income
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	341	363
Non-U.S. Pension Benefits | Level 2 | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	172	182
Non-U.S. Pension Benefits | Level 2 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	47	50
Non-U.S. Pension Benefits | Level 3
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	7	59
Non-U.S. Pension Benefits | Level 3 | Equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	2	0	0
Non-U.S. Pension Benefits | Level 3 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 3 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	2	0
Non-U.S. Pension Benefits | Level 3 | Global equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 3 | Fixed income securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	5	11	21
Non-U.S. Pension Benefits | Level 3 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	3	9
Non-U.S. Pension Benefits | Level 3 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	2	2
Non-U.S. Pension Benefits | Level 3 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 3 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 3 | Global fixed income
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Non-U.S. Pension Benefits | Level 3 | Real estate
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	48	111
Non-U.S. Pension Benefits | Level 3 | Other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0	0
Non-U.S. Pension Benefits | Level 3 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	650	776	$ 822
Other Postretirement Benefits | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	297	392
Other Postretirement Benefits | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	136	159
Other Postretirement Benefits | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	87	103
Other Postretirement Benefits | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	18	17
Other Postretirement Benefits | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	31	30
Other Postretirement Benefits | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	45	50
Other Postretirement Benefits | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	4	3
Other Postretirement Benefits | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	32	22
Other Postretirement Benefits | Level 1
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	449	559
Other Postretirement Benefits | Level 1 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	296	392
Other Postretirement Benefits | Level 1 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	136	158
Other Postretirement Benefits | Level 1 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 1 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 1 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 1 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 1 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 1 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	17	9
Other Postretirement Benefits | Level 2
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	201	217
Other Postretirement Benefits | Level 2 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	1	0
Other Postretirement Benefits | Level 2 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	1
Other Postretirement Benefits | Level 2 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	87	103
Other Postretirement Benefits | Level 2 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	18	17
Other Postretirement Benefits | Level 2 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	31	30
Other Postretirement Benefits | Level 2 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	45	50
Other Postretirement Benefits | Level 2 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	4	3
Other Postretirement Benefits | Level 2 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	15	13
Other Postretirement Benefits | Level 3
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | Non-U.S. equities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	0	0
Other Postretirement Benefits | Level 3 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Total Assets, at Fair Value	$ 0	$ 0

Postemployment benefit plans 98

Postemployment benefit plans (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
U.S. Pension Benefits
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 12,530	$ 12,395
Fair value of plan assets, end of year	11,440	12,530
U.S. Pension Benefits | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	9
Fair value of plan assets, end of year	9	9
U.S. Pension Benefits | Level 3
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	200
Fair value of plan assets, end of year	227	200
U.S. Pension Benefits | Level 3 | Equities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	162	129
Unrealized gains (losses)	(1)	1
Realized gains (losses)	14	19
Purchases, issuances and settlements	(2)	13
Transfers in and/or out of Level 3	0	0
Fair value of plan assets, end of year	173	162
U.S. Pension Benefits | Level 3 | Fixed income securities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	29	54
Unrealized gains (losses)	(1)	0
Realized gains (losses)	0	3
Purchases, issuances and settlements	16	(23)
Transfers in and/or out of Level 3	(2)	(5)
Fair value of plan assets, end of year	42	29
U.S. Pension Benefits | Level 3 | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	9	8
Unrealized gains (losses)	0	1
Realized gains (losses)	0	0
Purchases, issuances and settlements	0	0
Transfers in and/or out of Level 3	0	0
Fair value of plan assets, end of year	9	9
U.S. Pension Benefits | Level 3 | Other
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0	0
Unrealized gains (losses)	0	0
Realized gains (losses)	0	0
Purchases, issuances and settlements	2	0
Transfers in and/or out of Level 3	1	0
Fair value of plan assets, end of year	3	0
Non-U.S. Pension Benefits
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	4,100	3,949
Fair value of plan assets, end of year	3,890	4,100
Non-U.S. Pension Benefits | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	230
Fair value of plan assets, end of year	172	230
Non-U.S. Pension Benefits | Level 3
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	59
Fair value of plan assets, end of year	7	59
Non-U.S. Pension Benefits | Level 3 | Equities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0	0
Unrealized gains (losses)	0	0
Realized gains (losses)	0	0
Purchases, issuances and settlements	0	0
Transfers in and/or out of Level 3	2	0
Fair value of plan assets, end of year	2	0
Non-U.S. Pension Benefits | Level 3 | Fixed income securities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	11	21
Unrealized gains (losses)	(1)	(1)
Realized gains (losses)	0	0
Purchases, issuances and settlements	0	(1)
Transfers in and/or out of Level 3	(5)	(8)
Fair value of plan assets, end of year	5	11
Non-U.S. Pension Benefits | Level 3 | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	48	111
Unrealized gains (losses)	(18)	(23)
Realized gains (losses)	15	22
Purchases, issuances and settlements	(45)	(62)
Transfers in and/or out of Level 3	0	0
Fair value of plan assets, end of year	0	48
Non-U.S. Pension Benefits | Level 3 | Other
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0	0
Unrealized gains (losses)	0	0
Realized gains (losses)	0	0
Purchases, issuances and settlements	0	0
Transfers in and/or out of Level 3	0	0
Fair value of plan assets, end of year	0	0
Other Postretirement Benefits
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	776	822
Fair value of plan assets, end of year	650	776
Other Postretirement Benefits | Level 3
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	$ 0	$ 0

Postemployment benefit plans 99

Postemployment benefit plans (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
U.S. Pension Benefits
Funded Status, end of year
Fair value of plan assets, end of year	$ 11,440	$ 12,530	$ 12,395
Benefit obligations, end of year	15,792	16,249	14,419
Over (under) funded status recognized in financial position	(4,352)	(3,719)
Components of net amount recognized in financial position:
Other assets (non-current asset)	6	3
Accrued wages, salaries and employee benefits (current liability)	(32)	(28)
Liability for postemployment benefits (non-current liability)	(4,326)	(3,694)
Net liability recognized	(4,352)	(3,719)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Net actuarial loss (gain)	6,245	6,034
Prior service cost (credit)	1	2
Total	6,246	6,036
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year
Prior service cost (credit)	0
Total	0
Pension plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	15,734	16,182
Accumulated benefit obligation	15,493	15,634
Fair value of plan assets	11,377	12,460
Pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	15,734	16,182
Accumulated benefit obligation	15,493	15,634
Fair value of plan assets	11,377	12,460
Non-U.S. Pension Benefits
Funded Status, end of year
Fair value of plan assets, end of year	3,890	4,100	3,949
Benefit obligations, end of year	4,355	4,801	4,609
Over (under) funded status recognized in financial position	(465)	(701)
Components of net amount recognized in financial position:
Other assets (non-current asset)	163	144
Accrued wages, salaries and employee benefits (current liability)	(19)	(24)
Liability for postemployment benefits (non-current liability)	(609)	(821)
Net liability recognized	(465)	(701)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Net actuarial loss (gain)	1,300	1,494
Prior service cost (credit)	1	9
Total	1,301	1,503
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year
Prior service cost (credit)	0
Total	0
Pension plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	1,818	4,539
Accumulated benefit obligation	1,657	4,148
Fair value of plan assets	1,190	3,695
Pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	1,363	1,879
Accumulated benefit obligation	1,320	1,734
Fair value of plan assets	793	1,068
Other Postretirement Benefits
Funded Status, end of year
Fair value of plan assets, end of year	650	776	822
Benefit obligations, end of year	4,313	4,938	$ 4,784
Over (under) funded status recognized in financial position	(3,663)	(4,162)
Components of net amount recognized in financial position:
Other assets (non-current asset)	0	0
Accrued wages, salaries and employee benefits (current liability)	(161)	(160)
Liability for postemployment benefits (non-current liability)	(3,502)	(4,002)
Net liability recognized	(3,663)	(4,162)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Net actuarial loss (gain)	171	800
Prior service cost (credit)	39	(31)
Total	210	$ 769
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year
Prior service cost (credit)	(30)
Total	$ (30)

Postemployment benefit plans100

Postemployment benefit plans (Details 7) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
U.S. Pension Benefits
Expected cash flow for pension and other Postretirement benefit plans
Employer contribution expected for 2016	$ 30
Expected benefit payments for 2016	990
Expected benefit payments for 2017	990
Expected benefit payments for 2018	980
Expected benefit payments for 2019	980
Expected benefit payments for 2020	980
Expected benefit payments from 2021-2025	4,890
Total expected benefit payments	9,810
Non-U.S. Pension Benefits
Expected cash flow for pension and other Postretirement benefit plans
Employer contribution expected for 2016	120
Expected benefit payments for 2016	220
Expected benefit payments for 2017	170
Expected benefit payments for 2018	170
Expected benefit payments for 2019	170
Expected benefit payments for 2020	170
Expected benefit payments from 2021-2025	990
Total expected benefit payments	1,890
Other Postretirement Benefits
Expected cash flow for pension and other Postretirement benefit plans
Employer contribution expected for 2016	200
Expected benefit payments for 2016	310
Expected benefit payments for 2017	320
Expected benefit payments for 2018	310
Expected benefit payments for 2019	310
Expected benefit payments for 2020	300
Expected benefit payments from 2021-2025	1,480
Total expected benefit payments	3,030
Other postretirement benefits, Medicare Part D subsidy expected
Other postretirement benefits, Medicare Part D subsidy expected in 2016	15
Other postretirement benefits, Medicare Part D subsidy expected in 2017	15
Other postretirement benefits, Medicare Part D subsidy expected in 2018	20
Other postretirement benefits, Medicare Part D subsidy expected in 2019	20
Other postretirement benefits, Medicare Part D subsidy expected in 2020	20
Other postretirement benefits, Medicare Part D subsidy expected from 2021-2025	100
Total expected Medicare D subsidy receipts	$ 190

Postemployment benefit plans101

Postemployment benefit plans (Details 8) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of net periodic benefit cost:
Defined benefit plan curtailment and settlement losses	$ (92)	$ (11)
U.S. Pension Benefits
Components of net periodic benefit cost:
Service cost	181	157	$ 196
Interest cost	608	648	581
Expected return on plan assets	(879)	(885)	(832)
Other adjustments	0	0	31
Defined benefit plan curtailment and settlement losses	52	0	0
Amortization of:
Transition obligation / (asset)	0	0	0
Prior service cost / (credit)	1	17	18
Net actuarial loss / (gain)	490	392	546
Total cost included in operating profit	453	329	540
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year actuarial loss (gain)	701	2,030	(2,344)
Amortization of actuarial (loss) gain	(490)	(392)	(546)
Current year prior service cost (credit)	0	0	0
Amortization of prior service (cost) credit	(1)	(17)	(18)
Amortization of transition (obligation) asset	0	0	0
Total recognized in other comprehensive income	210	1,621	(2,908)
Total recognized in net periodic cost and other comprehensive income	$ 663	$ 1,950	$ (2,368)
Weighted-average assumptions used to determine net cost:
Discount rate (as a percent)	3.80%	4.60%	3.70%
Expected return on plan assets (as a percent)	7.40%	7.80%	7.80%
Rate of compensation increase (as a percent)	4.00%	4.00%	4.50%
Expected return on plan assets, next fiscal year (as a percent)	6.90%
Percentage of the highest and lowest yielding bonds that were excluded from the discount rate calculation (as a percent)	10.00%
Additional percentage amount added to long-term passive rate of returns to arrive at the long-term expected rate of return (as a percent)	0.95%	1.00%	1.00%
Non-U.S. Pension Benefits
Components of net periodic benefit cost:
Service cost	$ 110	$ 109	$ 120
Interest cost	146	185	166
Expected return on plan assets	(260)	(258)	(225)
Other adjustments	0	0	0
Defined benefit plan curtailment and settlement losses	14	14	2
Amortization of:
Transition obligation / (asset)	0	0	0
Prior service cost / (credit)	0	0	1
Net actuarial loss / (gain)	99	86	128
Total cost included in operating profit	109	136	192
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year actuarial loss (gain)	(95)	207	(406)
Amortization of actuarial (loss) gain	(99)	(86)	(128)
Current year prior service cost (credit)	(8)	(4)	(7)
Amortization of prior service (cost) credit	0	0	(1)
Amortization of transition (obligation) asset	0	0	0
Total recognized in other comprehensive income	(202)	117	(542)
Total recognized in net periodic cost and other comprehensive income	$ (93)	$ 253	$ (350)
Weighted-average assumptions used to determine net cost:
Discount rate (as a percent)	3.30%	4.10%	3.70%
Expected return on plan assets (as a percent)	6.80%	6.90%	6.80%
Rate of compensation increase (as a percent)	4.00%	4.20%	3.90%
Expected return on plan assets, next fiscal year (as a percent)	6.10%
Other Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$ 101	$ 82	$ 108
Interest cost	181	213	195
Expected return on plan assets	(53)	(52)	(56)
Other adjustments	0	0	(22)
Defined benefit plan curtailment and settlement losses	32	(2)	0
Amortization of:
Transition obligation / (asset)	0	0	2
Prior service cost / (credit)	(54)	(55)	(73)
Net actuarial loss / (gain)	52	41	107
Total cost included in operating profit	259	227	261
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year actuarial loss (gain)	(577)	179	(759)
Amortization of actuarial (loss) gain	(52)	(41)	(107)
Current year prior service cost (credit)	16	(2)	2
Amortization of prior service (cost) credit	54	55	73
Amortization of transition (obligation) asset	0	0	(2)
Total recognized in other comprehensive income	(559)	191	(793)
Total recognized in net periodic cost and other comprehensive income	$ (300)	$ 418	$ (532)
Weighted-average assumptions used to determine net cost:
Discount rate (as a percent)	3.90%	4.60%	3.70%
Expected return on plan assets (as a percent)	7.80%	7.80%	7.80%
Rate of compensation increase (as a percent)	4.00%	4.00%	4.40%
Assumed increase in health care trend rate
Assumed increase in health care trend rate over the current period to calculate benefit expenses (as a percent)	6.60%
Assumed increase in health care trend rate for the next year to calculate benefit expenses (as a percent)	6.50%
Year that heath care trend rate is assumed to reach ultimate trend rate (year)	2,021
Ultimate health care cost trend rate (as a percent)	5.00%
General inflation rate that forms a part of ultimate health care trend rate (as a percent)	3.00%
Additional healthcare inflation rate that forms a part of ultimate health care trend rate (as a percent)	2.00%

Postemployment benefit plans102

Postemployment benefit plans (Details 9) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined contribution plans
ESOP, number of allocated shares	26.4	26.2
Costs related to defined contribution plans	$ 343	$ 386	$ 372
U.S. Plans
Defined contribution plans
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans	100.00%
Employee compensation percentage contributed to defined contribution plan eligible for employer matching contributions	6.00%
New annual employer contribution, percentage of compensation, low end of range	3.00%
New annual employer contribution, percentage of compensation, high end of range	5.00%
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans for employees accruing benefits under a defined benefit plan	50.00%
Compensation percentage contributed to defined contribution plan eligible for employer matching contributions, for employees accruing benefits under defined benefit pension plan	6.00%
Costs related to defined contribution plans	$ 267	301	308
Non-U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	$ 76	$ 85	$ 64

Postemployment benefit plans103

Postemployment benefit plans (Details 10) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Summary of long-term liability:
Postretirement benefits other than pensions	$ 3,502	$ 4,002
Other postemployment benefits	104	112
Defined contribution	302	334
Liability for postemployment benefits, long term	8,843	8,963
Pension plans
Summary of long-term liability:
Pensions	4,935	4,515
U.S. Pension Benefits
Summary of long-term liability:
Pensions	4,326	3,694
Non-U.S. Pension Benefits
Summary of long-term liability:
Pensions	$ 609	$ 821

Short-term borrowings (Details)

Short-term borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Short-term borrowings:
Short-term borrowings	$ 6,967	$ 4,708
Notes payable to banks
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	9.20%	6.80%
Commercial paper
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	0.50%	0.30%
Demand notes
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	0.80%	0.80%
Machinery, Energy & Transportation
Short-term borrowings:
Short-term borrowings	$ 9	$ 9
Machinery, Energy & Transportation | Notes payable to banks
Short-term borrowings:
Short-term borrowings	9	9
Machinery, Energy & Transportation | Commercial paper
Short-term borrowings:
Short-term borrowings	0	0
Financial Products
Short-term borrowings:
Short-term borrowings	6,958	4,699
Financial Products | Notes payable to banks
Short-term borrowings:
Short-term borrowings	440	411
Financial Products | Commercial paper
Short-term borrowings:
Short-term borrowings	5,811	3,688
Financial Products | Demand notes
Short-term borrowings:
Short-term borrowings	$ 707	$ 600

Long-term debt (Details)

Long-term debt (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Long-term Debt
Total Machinery, Energy & Transportation	$ 9,004	$ 9,493
Total Financial Products	16,243	18,291
Total long-term debt due after one year	25,247	27,784
Machinery, Energy & Transportation
Long-term Debt
Total Machinery, Energy & Transportation	9,004	9,493
Other	45	46
Machinery, Energy & Transportation | Notes-5.700% due 2016
Long-term Debt
Notes	$ 0	504
Debt instrument, interest rate (as a percent)	5.70%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Notes-3.900% due 2021
Long-term Debt
Notes	$ 1,247	1,246
Debt instrument, interest rate (as a percent)	3.90%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Notes-5.200% due 2041
Long-term Debt
Notes	$ 757	757
Debt instrument, interest rate (as a percent)	5.20%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-1.500% due 2017
Long-term Debt
Debentures	$ 500	500
Debt instrument, interest rate (as a percent)	1.50%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-7.900% due 2018
Long-term Debt
Debentures	$ 900	899
Debt instrument, interest rate (as a percent)	7.90%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-9.375% due 2021
Long-term Debt
Debentures	$ 120	120
Debt instrument, interest rate (as a percent)	9.375%
Machinery, Energy & Transportation | Debentures-2.600% due 2022
Long-term Debt
Debentures	$ 499	498
Debt instrument, interest rate (as a percent)	2.60%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-8.000% due 2023
Long-term Debt
Debentures	$ 82	82
Debt instrument, interest rate (as a percent)	8.00%
Machinery, Energy & Transportation | Debentures-3.400% due 2024
Long-term Debt
Debentures	$ 1,000	1,000
Debt instrument, interest rate (as a percent)	3.40%
Machinery, Energy & Transportation | Debentures-6.625% due 2028
Long-term Debt
Debentures	$ 193	193
Debt instrument, interest rate (as a percent)	6.625%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-7.300% due 2031
Long-term Debt
Debentures	$ 241	241
Debt instrument, interest rate (as a percent)	7.30%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-5.300% due 2035
Long-term Debt
Debentures	$ 213	211
Debt instrument, interest rate (as a percent)	5.30%
Debentures, face value	$ 307
Debentures' effective yield to maturity (as a percent)	8.55%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-6.050% due 2036
Long-term Debt
Debentures	$ 459	459
Debt instrument, interest rate (as a percent)	6.05%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-8.250% due 2038
Long-term Debt
Debentures	$ 65	65
Debt instrument, interest rate (as a percent)	8.25%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-6.950% due 2042
Long-term Debt
Debentures	$ 160	160
Debt instrument, interest rate (as a percent)	6.95%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-3.803% due 2042
Long-term Debt
Debentures	$ 1,207	1,188
Debt instrument, interest rate (as a percent)	3.803%
Debentures, face value	$ 1,722
Debentures' effective yield to maturity (as a percent)	6.33%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-4.300% due 2044
Long-term Debt
Debentures	$ 497	497
Debt instrument, interest rate (as a percent)	4.30%
Machinery, Energy & Transportation | Debentures-4.750% due 2064
Long-term Debt
Debentures	$ 498	498
Debt instrument, interest rate (as a percent)	4.75%
Machinery, Energy & Transportation | Debentures-7.375% due 2097
Long-term Debt
Debentures	$ 244	244
Debt instrument, interest rate (as a percent)	7.375%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Capital lease obligations
Long-term Debt
Capital lease obligations	$ 77	85
Financial Products
Long-term Debt
Medium-term notes	15,713	17,295
Other	530	996
Total Financial Products	$ 16,243	$ 18,291

Long-term debt (Details 2)

Long-term debt (Details 2) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	May. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Long-term Debt
2,016		$ 5,879
2,017		6,397
2,018		5,061
2,019		2,538
2,020		1,133
Interest paid on short-term and long-term borrowings		1,047	$ 1,109	$ 1,141
3.400% Senior Notes due in 2024
Long-term Debt
Notes	$ 1,000
Debt instrument, interest rate (as a percent)	3.40%
4.300% Senior Notes due in 2044
Long-term Debt
Notes	$ 500
Debt instrument, interest rate (as a percent)	4.30%
4.750% Senior Notes due in 2064
Long-term Debt
Notes	$ 500
Debt instrument, interest rate (as a percent)	4.75%
Machinery, Energy & Transportation
Long-term Debt
2,016		517
2,017		531
2,018		907
2,019		7
2,020		$ 8
Financial Products
Long-term Debt
Medium-term notes, weighted-average interest rate (as a percent)		2.40%
Medium-term notes, maximum remaining maturity (in years)		12 years
2,016		$ 5,362
2,017		5,866
2,018		4,154
2,019		2,531
2,020		$ 1,125

Credit commitments (Details)

Credit commitments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)facilities
Credit lines available:
Global credit facilities	$ 10,500
Other external	3,745
Total credit lines available	14,245
Less: Commercial paper outstanding	(5,811)
Less: Utilized credit	(1,444)
Available credit	$ 6,990
Number of global credit facilities | facilities	3
Consolidated net worth	$ 19,920
Minimum consolidated net worth required under credit facilities	9,000
Utilized credit	$ (1,444)
Cat Financial
Credit lines available:
Interest coverage ratio, numerator	2.05
Interest coverage ratio, denominator	1
Minimum interest coverage ratio required under credit facilities, numerator	1.15
Minimum interest coverage ratio required under credit facilities, denominator	1
Six-month leverage ratio, numerator	7.49
Six month leverage ratio, denominator	1
Year-end leverage ratio, numerator	7.93
Year-end leverage ratio denominator	1
Maximum leverage ratio permissible under credit facility, numerator	10
Maximum leverage ratio permissible under credit facility, denominator	1
Credit Facility
Credit lines available:
Global credit facilities	$ 10,500
Less: Utilized credit	0
Utilized credit	0
364-day facility expires in September 2016
Credit lines available:
Global credit facilities	$ 3,150
Duration of credit facility (in years or days)	364 days
Three-year facility expires in September 2018
Credit lines available:
Global credit facilities	$ 2,730
Duration of credit facility (in years or days)	3 years
Five-year facility expires in September 2020
Credit lines available:
Global credit facilities	$ 4,620
Duration of credit facility (in years or days)	5 years
Consolidated credit lines with banks
Credit lines available:
Other external	$ 3,750
Machinery, Energy & Transportation
Credit lines available:
Global credit facilities	2,750
Other external	176
Total credit lines available	2,926
Less: Commercial paper outstanding	0
Less: Utilized credit	(9)
Available credit	2,917
Utilized credit	(9)
Machinery, Energy & Transportation | Credit Facility
Credit lines available:
Global credit facilities	2,750
Machinery, Energy & Transportation | 364-day facility expires in September 2016
Credit lines available:
Global credit facilities	820
Machinery, Energy & Transportation | Three-year facility expires in September 2018
Credit lines available:
Global credit facilities	720
Machinery, Energy & Transportation | Five-year facility expires in September 2020
Credit lines available:
Global credit facilities	1,210
Financial Products
Credit lines available:
Global credit facilities	7,750
Other external	3,569
Total credit lines available	11,319
Less: Commercial paper outstanding	(5,811)
Less: Utilized credit	(1,435)
Available credit	4,073
Utilized credit	$ (1,435)

Profit per share (Details)

Profit per share (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended										12 Months Ended
		Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013		Jan. 31, 2014	Feb. 28, 2007
Earnings Per Share [Abstract]
Profit for the period (A) (in millions of dollars)		$ (87)	$ 368	$ 710	$ 1,111	$ 757	$ 1,017	$ 999	$ 922			$ 2,102	[1]	$ 3,695	[1]	$ 3,789	[1]
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)												594,300,000		617,200,000		645,200,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)												7,000,000		11,700,000		13,400,000
Average common shares outstanding for fully diluted computation (C) (in shares)	[2]											601,300,000		628,900,000		658,600,000
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)		$ (0.15)	$ 0.63	$ 1.18	$ 1.84	$ 1.25	$ 1.66	$ 1.60	$ 1.47			$ 3.54		$ 5.99		$ 5.87
Assuming full dilution (A/C) (in dollars per share)		$ (0.15)	$ 0.62	$ 1.16	$ 1.81	$ 1.23	$ 1.63	$ 1.57	$ 1.44			$ 3.50	[2]	$ 5.88	[2]	$ 5.75	[2]
Shares outstanding as of December 31		582,300,000				606,200,000						582,300,000		606,200,000		637,800,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)												22,169,133		10,266,682		10,152,448
Common Stock Repurchase
Stock Repurchase Program, Authorized Amount																		$ 10,000	$ 7,500
Common shares repurchased (in shares)			19,600,000				23,700,000		18,100,000	11,900,000	11,500,000	25,841,608		41,762,325		23,484,843
Payments for repurchase of common stock			$ 1,500				$ 2,500		$ 1,700	$ 1,000	$ 1,000	$ 2,025		$ 4,238		$ 2,000
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 comprehens109

Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	$ (6,431)	$ (3,898)	$ (6,433)
Other comprehensive income (loss), before reclassifications	(1,007)	(2,832)	2,025
Amounts reclassified from accumulated other comprehensive (income) loss	441	299	510
Other comprehensive income (loss)	(566)	(2,533)	2,535
Accumulated other comprehensive income (loss), end of period	(6,997)	(6,431)	(3,898)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	(988)	176	456
Other comprehensive income (loss), before reclassifications	(965)	(1,164)	(280)
Amounts reclassified from accumulated other comprehensive (income) loss	0	0	0
Other comprehensive income (loss)	(965)	(1,164)	(280)
Accumulated other comprehensive income (loss), end of period	(1,953)	(988)	176
Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	(5,407)	(4,152)	(6,914)
Other comprehensive income (loss), before reclassifications	(13)	(1,574)	2,280
Amounts reclassified from accumulated other comprehensive (income) loss	389	319	482
Other comprehensive income (loss)	376	(1,255)	2,762
Accumulated other comprehensive income (loss), end of period	(5,031)	(5,407)	(4,152)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	(119)	(5)	(42)
Other comprehensive income (loss), before reclassifications	(19)	(118)	(4)
Amounts reclassified from accumulated other comprehensive (income) loss	88	4	41
Other comprehensive income (loss)	69	(114)	37
Accumulated other comprehensive income (loss), end of period	(50)	(119)	(5)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	83	83	67
Other comprehensive income (loss), before reclassifications	(10)	24	29
Amounts reclassified from accumulated other comprehensive (income) loss	(36)	(24)	(13)
Other comprehensive income (loss)	(46)	0	16
Accumulated other comprehensive income (loss), end of period	$ 37	$ 83	$ 83

Accumulated other comprehens110

Accumulated other comprehensive income (loss) (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									$ 106		$ 239		$ (35)
Interest expense excluding Financial Products									(507)		(484)		(465)
Interest expense of Financial Products									(587)		(624)		(727)
Tax (provision) benefit									(742)		(1,380)		(1,319)
Reclassifications net of tax	$ (87)	$ 368	$ 710	$ 1,111	$ 757	$ 1,017	$ 999	$ 922	2,102	[1]	3,695	[1]	3,789	[1]
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications net of tax									(441)		(299)		(510)
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Amortization of actuarial gain (loss)									(641)		(519)		(781)
Amortization of prior service credit (cost)									53		38		54
Amortization of transition asset (obligation)									0		0		(2)
Reclassifications before tax									(588)		(481)		(729)
Tax (provision) benefit									199		162		247
Reclassifications net of tax									(389)		(319)		(482)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications before tax									(139)		(6)		(66)
Tax (provision) benefit									51		2		25
Reclassifications net of tax									(88)		(4)		(41)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									(127)		5		(57)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Machinery, Energy & Transportation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									0		0		(3)
Interest expense excluding Financial Products									(6)		(5)		0
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Financial Products
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Interest expense of Financial Products									(6)		(6)		(6)
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									56		35		19
Tax (provision) benefit									(20)		(11)		(6)
Reclassifications net of tax									$ 36		$ 24		$ 13
[1]	1 Profit attributable to common stockholders.

Fair value disclosures (Details

Fair value disclosures (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets
Available-for-sale securities	$ 1,635	$ 1,554
Recurring basis
Assets
Available-for-sale securities	1,635	1,554
Derivative Asset, at Fair Value, Net	49
Total Assets	1,684	1,554
Liabilities
Derivative Liabilities, at Fair Value, Net		86
Total Liabilities		86
U.S. treasury bonds
Assets
Available-for-sale securities	9	10
U.S. treasury bonds | Recurring basis
Assets
Available-for-sale securities	9	10
Other U.S. and non-U.S. government bonds
Assets
Available-for-sale securities	72	94
Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities	72	94
Corporate bonds
Assets
Available-for-sale securities	708	693
Corporate bonds | Recurring basis
Assets
Available-for-sale securities	708	693
Asset-backed securities
Assets
Available-for-sale securities	129	105
Asset-backed securities | Recurring basis
Assets
Available-for-sale securities	129	105
U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities	292	294
Residential
Assets
Available-for-sale securities	12	15
Residential | Recurring basis
Assets
Available-for-sale securities	12	15
Commercial
Assets
Available-for-sale securities	61	67
Commercial | Recurring basis
Assets
Available-for-sale securities	61	67
Large capitalization value
Assets
Available-for-sale securities	273	233
Large capitalization value | Recurring basis
Assets
Available-for-sale securities	273	233
REIT
Assets
Available-for-sale securities	25	0
REIT | Recurring basis
Assets
Available-for-sale securities	25
Smaller company growth
Assets
Available-for-sale securities	54	43
Smaller company growth | Recurring basis
Assets
Available-for-sale securities	54	43
Level 1 | Recurring basis
Assets
Available-for-sale securities	336	286
Derivative Asset, at Fair Value, Net	0
Total Assets	336	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	9	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	273	233
Level 1 | REIT | Recurring basis
Assets
Available-for-sale securities	0
Level 1 | Smaller company growth | Recurring basis
Assets
Available-for-sale securities	54	43
Level 2 | Recurring basis
Assets
Available-for-sale securities	1,274	1,268
Derivative Asset, at Fair Value, Net	49
Total Assets	1,323	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	72	94
Level 2 | Corporate bonds | Recurring basis
Assets
Available-for-sale securities	708	693
Level 2 | Asset-backed securities | Recurring basis
Assets
Available-for-sale securities	129	105
Level 2 | U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities	292	294
Level 2 | Residential | Recurring basis
Assets
Available-for-sale securities	12	15
Level 2 | Commercial | Recurring basis
Assets
Available-for-sale securities	61	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	25	0
Derivative Asset, at Fair Value, Net	0
Total Assets	25	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	25
Level 3 | Smaller company growth | Recurring basis
Assets
Available-for-sale securities	$ 0	$ 0

Fair value disclosures (Deta112

Fair value disclosures (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Level 2 | Financial Products | Nonrecurring basis
Fair value of impaired loans
Impaired loans	$ 91	$ 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	25
Sale of securities	0
Gains (losses) included in Accumulated other comprehensive income (loss)	0
Balance at end of period	$ 25

Fair value disclosures (Deta113

Fair value disclosures (Details 3) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Carrying Amount
Assets
Cash and short-term investments	$ 6,460	$ 7,341
Restricted cash and short-term investments	52	62
Available-for-sale securities	1,635	1,554
Finance receivables-net (excluding finance leases)	16,515	16,426
Wholesale inventory receivables-net (excluding finance leases)	1,821	1,774
Foreign currency contracts-net	13	0
Interest rate swaps-net	48	71
Liabilities
Short-term borrowings	6,967	4,708
Foreign currency contracts-net	0	143
Commodity contracts-net	12	14
Guarantees	12	12
Carrying Amount | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	9,521	10,003
Carrying Amount | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	21,605	24,574
Carrying amount of assets excluded from measurement at fair value
Liabilities
Finance leases	6,452	7,638
Level 1 | Fair Value
Assets
Cash and short-term investments	6,460	7,341
Restricted cash and short-term investments	52	62
Liabilities
Short-term borrowings	6,967	4,708
Level 1, 2 & 3 | Fair Value
Assets
Available-for-sale securities	1,635	1,554
Level 2 | Fair Value
Assets
Foreign currency contracts-net	13	0
Interest rate swaps-net	48	71
Liabilities
Foreign currency contracts-net	0	143
Commodity contracts-net	12	14
Level 2 | Fair Value | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	10,691	11,973
Level 2 | Fair Value | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	21,904	25,103
Level 3 | Fair Value
Assets
Finance receivables-net (excluding finance leases)	16,551	16,159
Wholesale inventory receivables-net (excluding finance leases)	1,775	1,700
Liabilities
Guarantees	$ 12	$ 12

Concentration of credit risk (D

Concentration of credit risk (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Risks and Uncertainties [Abstract]
Derivative contracts, maximum exposure to credit loss	$ 105	$ 128

Operating leases (Details)

Operating leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Leases [Abstract]
Rental expense for operating leases	$ 371	$ 391	$ 436
Minimum payments for operating leases having initial or remaining non-cancelable terms
2,015	237
2,016	183
2,017	140
2,018	93
2,019	68
Thereafter	205
Total	$ 926

Guarantees and product warra116

Guarantees and product warranty (Details) - USD ($) $ in Millions	Dec. 31, 2015	Feb. 28, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 12		$ 12
Guarantor Obligations
Guarantees, maximum potential amount of future payments	681		740
Special-Purpose Company's assets in Consolidated Statement of Financial Position	1,211		1,086
Special-Purpose Company's liabilities in Consolidated Statement of Financial Position	1,210		1,085
Unused commitments and lines of credit for dealers	12,920		12,412
Unused commitments and lines of credit for customers	3,567		4,005
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	216		209
Customer loan guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	47		49
Supplier consortium performance guarantee
Guarantor Obligations
Guarantees, maximum potential amount of future payments	286		321
Third party logistics business guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	107		129
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 25		$ 32
Third party logistics business, investment
Commitments and Contingencies Disclosure [Abstract]
Equity Method Investment, Percentage Sold		35.00%

Guarantees and product warra117

Guarantees and product warranty (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,426	$ 1,367
Reduction in liability (payments)	(874)	(1,071)
Increase in liability (new warranties)	802	1,130
Warranty liability, ending balance	$ 1,354	1,426
Product Warranty Accrual, Preexisting, Increase (Decrease)		$ 170

Environmental and legal matt118

Environmental and legal matters (Details)	Mar. 20, 2014
Number of defendants, companies
Loss Contingencies [Line Items]
Loss Contingency, Number of Defendants	18
Number of defendants, individuals
Loss Contingencies [Line Items]
Loss Contingency, Number of Defendants	100
Number of defendants, subsidiaries
Loss Contingencies [Line Items]
Loss Contingency, Number of Defendants	2
Number of defendants, current employee
Loss Contingencies [Line Items]
Loss Contingency, Number of Defendants	2
Number of defendants, former employee
Loss Contingencies [Line Items]
Loss Contingency, Number of Defendants	1

Segment information (Details)

Segment information (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)group_presidentssegments	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
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	$ 11,030	$ 10,962	$ 12,317	$ 12,702	$ 14,244	$ 13,549	$ 14,150	$ 13,241	$ 47,011	$ 55,184	$ 55,656
Depreciation and amortization									3,046	3,163	3,087
Consolidated profit before taxes									2,855	5,083	5,128
Segment assets	78,497				84,681				78,497	84,681	84,896
Capital expenditures									$ 3,261	3,379	4,446
All Other operating segments
Segment Reporting Information
Number of group presidents | group_presidents									1
Number of smaller operating segments led by Group President | segments									3
Reportable Segments
Sales and revenues									$ 2,197	2,251	2,263
Depreciation and amortization									276	279	305
Consolidated profit before taxes									779	850	736
Segment assets	2,616				2,810				2,616	2,810	2,973
Capital expenditures									276	331	452
Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues									$ 47,481	56,252	56,373
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
Number of reportable segments | segments									4
Reportable Segments
Sales and revenues									$ 45,135	53,323	53,716
Depreciation and amortization									2,615	2,744	2,622
Consolidated profit before taxes									5,885	7,647	7,351
Segment assets	58,394				61,574				58,394	61,574	63,469
Capital expenditures									2,806	2,888	3,533
Intersegment Eliminations
Reportable Segments
Sales and revenues									2,346	2,929	2,657
Machinery, Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues									44,403	52,939	53,149
Machinery, Energy & Transportation | Reportable segments
Reportable Segments
Sales and revenues									42,057	50,010	50,492
Depreciation and amortization									1,767	1,859	1,833
Consolidated profit before taxes									5,076	6,746	6,361
Segment assets	22,629				24,563				22,629	24,563	26,489
Capital expenditures									1,341	1,254	1,727
Machinery, Energy & Transportation | Intersegment Eliminations
Reportable Segments
Sales and revenues									2,346	2,929	2,657
Construction Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues									16,761	19,612	18,862
Construction Industries | Reportable segments
Reportable Segments
Sales and revenues									16,568	19,362	18,532
Depreciation and amortization									481	522	493
Consolidated profit before taxes									1,925	2,207	1,374
Segment assets	5,480				6,596				5,480	6,596	7,607
Capital expenditures									246	369	551
Construction Industries | Intersegment Eliminations
Reportable Segments
Sales and revenues									193	250	330
Resource Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues									7,904	9,352	12,237
Resource Industries | Reportable segments
Reportable Segments
Sales and revenues									7,551	8,921	11,805
Depreciation and amortization									641	685	693
Consolidated profit before taxes									(88)	404	1,572
Segment assets	8,602				9,497				8,602	9,497	10,340
Capital expenditures									281	277	499
Resource Industries | Intersegment Eliminations
Reportable Segments
Sales and revenues									353	431	432
Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues									19,738	23,975	22,050
Energy & Transportation | Reportable segments
Reportable Segments
Sales and revenues									17,938	21,727	20,155
Depreciation and amortization									645	652	647
Consolidated profit before taxes									3,239	4,135	3,415
Segment assets	8,547				8,470				8,547	8,470	8,542
Capital expenditures									814	608	677
Energy & Transportation | Intersegment Eliminations
Reportable Segments
Sales and revenues									1,800	2,248	1,895
Financial Products Segment | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues									3,078	3,313	3,224
Financial Products Segment | Reportable segments
Reportable Segments
Sales and revenues									3,078	3,313	3,224
Depreciation and amortization									848	885	789
Consolidated profit before taxes									809	901	990
Segment assets	$ 35,765				$ 37,011				35,765	37,011	36,980
Capital expenditures									1,465	1,634	1,806
Financial Products Segment | Intersegment Eliminations
Reportable Segments
Sales and revenues									$ 0	$ 0	$ 0

Segment information (Details 2)

Segment information (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Sales and revenues
Sales and revenues	$ 11,030	$ 10,962	$ 12,317	$ 12,702	$ 14,244	$ 13,549	$ 14,150	$ 13,241	$ 47,011	$ 55,184	$ 55,656
Reportable segments
Reconciliation of Sales and revenues
Sales and revenues									45,135	53,323	53,716
All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues									2,197	2,251	2,263
Other
Reconciliation of Sales and revenues
Sales and revenues									(321)	(390)	(323)
Consolidating Adjustments
Reconciliation of Sales and revenues
Sales and revenues									(315)	(344)	(340)
Consolidating Adjustments | Reportable segments
Reconciliation of Sales and revenues
Sales and revenues									0	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues									0	0	0
Consolidating Adjustments | Other
Reconciliation of Sales and revenues
Sales and revenues									(315)	(344)	(340)
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Sales and revenues
Sales and revenues									42,057	50,010	50,492
Machinery, Energy & Transportation | Business
Reconciliation of Sales and revenues
Sales and revenues									44,147	52,142	52,694
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Sales and revenues
Sales and revenues									42,057	50,010	50,492
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues									2,197	2,251	2,263
Machinery, Energy & Transportation | Business | Other
Reconciliation of Sales and revenues
Sales and revenues									(107)	(119)	(61)
Financial Products | Business
Reconciliation of Sales and revenues
Sales and revenues									3,179	3,386	3,302
Financial Products | Business | Reportable segments
Reconciliation of Sales and revenues
Sales and revenues									3,078	3,313	3,224
Financial Products | Business | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues									0	0	0
Financial Products | Business | Other
Reconciliation of Sales and revenues
Sales and revenues									$ 101	$ 73	$ 78

Segment information (Details 3)

Segment information (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 2,855	$ 5,083	$ 5,128
Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	5,885	7,647	7,351
All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	779	850	736
Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	145	38	119
Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(1,682)	(1,584)	(1,368)
Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	94	(244)	116
Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(908)	(441)	(200)
Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(100)	55	(112)
Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(386)	(411)	(685)
Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(524)	(502)	(469)
Equity in Profit/Loss of Unconsolidated Affiliated Companies
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(3)	(8)	6
Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(316)	(52)	(110)
Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(95)	(249)	(238)
Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(34)	(16)	(18)
Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	6,664	8,497	8,087
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	5,076	6,746	6,361
Machinery, Energy & Transportation | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	2,033	4,174	4,108
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	5,076	6,746	6,361
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	779	850	736
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	145	38	119
Machinery, Energy & Transportation | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(1,682)	(1,584)	(1,368)
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	94	(244)	116
Machinery, Energy & Transportation | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(891)	(441)	(200)
Machinery, Energy & Transportation | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(100)	55	(112)
Machinery, Energy & Transportation | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(386)	(411)	(685)
Machinery, Energy & Transportation | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(524)	(502)	(469)
Machinery, Energy & Transportation | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(3)	(8)	6
Machinery, Energy & Transportation | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(316)	(52)	(110)
Machinery, Energy & Transportation | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(95)	(249)	(238)
Machinery, Energy & Transportation | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(64)	(24)	(48)
Financial Products | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	822	909	1,020
Financial Products | Business | Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	809	901	990
Financial Products | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(17)	0	0
Financial Products | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 30	$ 8	$ 30

Segment information (Details 4)

Segment information (Details 4) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information
Consolidated profit before taxes		$ 2,855	$ 5,083	$ 5,128
Restructuring costs	$ (682)	(908)	(441)	(200)
Reportable segments
Segment Reporting Information
Consolidated profit before taxes		5,885	7,647	7,351
Reportable segments | Construction Industries
Segment Reporting Information
Consolidated profit before taxes		1,925	2,207	1,374
Reportable segments | Resource Industries
Segment Reporting Information
Consolidated profit before taxes		(88)	404	1,572
Reportable segments | Energy & Transportation
Segment Reporting Information
Consolidated profit before taxes		3,239	4,135	3,415
Reportable segments | Financial Products Segment
Segment Reporting Information
Consolidated profit before taxes		809	901	990
All Other operating segments
Segment Reporting Information
Consolidated profit before taxes		779	850	736
Business
Segment Reporting Information
Consolidated profit before taxes		6,664	8,497	8,087
Restructuring costs		(683)	(432)	197
Consolidated profit before taxes with restructuring costs		5,981	8,065	7,890
Business | Reportable segments | Construction Industries
Segment Reporting Information
Consolidated profit before taxes		1,925	2,207	1,374
Restructuring costs		(95)	(293)	(33)
Consolidated profit before taxes with restructuring costs		1,830	1,914	1,341
Business | Reportable segments | Resource Industries
Segment Reporting Information
Consolidated profit before taxes		(88)	404	1,572
Restructuring costs		(305)	(72)	(105)
Consolidated profit before taxes with restructuring costs		(393)	332	1,467
Business | Reportable segments | Energy & Transportation
Segment Reporting Information
Consolidated profit before taxes		3,239	4,135	3,415
Restructuring costs		(109)	(31)	(32)
Consolidated profit before taxes with restructuring costs		3,130	4,104	3,383
Business | Reportable segments | Financial Products Segment
Segment Reporting Information
Consolidated profit before taxes		809	901	990
Restructuring costs		(17)	0	0
Consolidated profit before taxes with restructuring costs		792	901	990
Business | All Other operating segments | All Other
Segment Reporting Information
Consolidated profit before taxes		779	850	736
Restructuring costs		(157)	(36)	(27)
Consolidated profit before taxes with restructuring costs		$ 622	$ 814	$ 709

Segment information (Details 5)

Segment information (Details 5) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of assets
Total assets	$ 78,497	$ 84,681	$ 84,896
Reportable segments
Reconciliation of assets
Total assets	58,394	61,574	63,469
All Other operating segments
Reconciliation of assets
Total assets	2,616	2,810	2,973
Cash and Short Term Investments
Reconciliation of assets
Total assets	5,340	6,317	4,597
Intercompany Receivables
Reconciliation of assets
Total assets	0	0	0
Investment in Financial Products
Reconciliation of assets
Total assets	0	0	0
Income Taxes
Reconciliation of assets
Total assets	2,923	2,953	2,016
Goodwill and Intangible Assets
Reconciliation of assets
Total assets	3,572	3,492	3,582
Property Plant and Equipment-Net and Other Assets
Reconciliation of assets
Total assets	1,184	1,174	1,174
Operating Lease Methodology Difference
Reconciliation of assets
Total assets	(213)	(213)	(273)
Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	8,004	9,837	10,357
Inventory Methodology Differences
Reconciliation of assets
Total assets	(2,646)	(2,697)	(2,539)
Other
Reconciliation of assets
Total assets	(677)	(566)	(460)
Consolidating Adjustments
Reconciliation of assets
Total assets	(5,904)	(6,416)	(6,653)
Consolidating Adjustments | Reportable segments
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | Cash and Short Term Investments
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | Intercompany Receivables
Reconciliation of assets
Total assets	(1,087)	(1,185)	(1,219)
Consolidating Adjustments | Investment in Financial Products
Reconciliation of assets
Total assets	(3,888)	(4,488)	(4,798)
Consolidating Adjustments | Income Taxes
Reconciliation of assets
Total assets	(852)	(674)	(525)
Consolidating Adjustments | Goodwill and Intangible Assets
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | Property Plant and Equipment-Net and Other Assets
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | Operating Lease Methodology Difference
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | Inventory Methodology Differences
Reconciliation of assets
Total assets	0	0	0
Consolidating Adjustments | Other
Reconciliation of assets
Total assets	(77)	(69)	(111)
Machinery, Energy & Transportation | Reportable segments
Reconciliation of assets
Total assets	22,629	24,563	26,489
Machinery, Energy & Transportation | Business
Reconciliation of assets
Total assets	48,670	54,188	54,704
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of assets
Total assets	22,629	24,563	26,489
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of assets
Total assets	2,616	2,810	2,973
Machinery, Energy & Transportation | Business | Cash and Short Term Investments
Reconciliation of assets
Total assets	5,340	6,317	4,597
Machinery, Energy & Transportation | Business | Intercompany Receivables
Reconciliation of assets
Total assets	1,087	1,185	1,219
Machinery, Energy & Transportation | Business | Investment in Financial Products
Reconciliation of assets
Total assets	3,888	4,488	4,798
Machinery, Energy & Transportation | Business | Income Taxes
Reconciliation of assets
Total assets	3,775	3,627	2,541
Machinery, Energy & Transportation | Business | Goodwill and Intangible Assets
Reconciliation of assets
Total assets	3,572	3,492	3,582
Machinery, Energy & Transportation | Business | Property Plant and Equipment-Net and Other Assets
Reconciliation of assets
Total assets	1,184	1,174	1,174
Machinery, Energy & Transportation | Business | Operating Lease Methodology Difference
Reconciliation of assets
Total assets	(213)	(213)	(273)
Machinery, Energy & Transportation | Business | Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	8,004	9,837	10,357
Machinery, Energy & Transportation | Business | Inventory Methodology Differences
Reconciliation of assets
Total assets	(2,646)	(2,697)	(2,539)
Machinery, Energy & Transportation | Business | Other
Reconciliation of assets
Total assets	(566)	(395)	(214)
Financial Products | Business
Reconciliation of assets
Total assets	35,731	36,909	36,845
Financial Products | Business | Reportable segments
Reconciliation of assets
Total assets	35,765	37,011	36,980
Financial Products | Business | All Other operating segments
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Cash and Short Term Investments
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Intercompany Receivables
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Investment in Financial Products
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Income Taxes
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Goodwill and Intangible Assets
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Property Plant and Equipment-Net and Other Assets
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Operating Lease Methodology Difference
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Inventory Methodology Differences
Reconciliation of assets
Total assets	0	0	0
Financial Products | Business | Other
Reconciliation of assets
Total assets	$ (34)	$ (102)	$ (135)

Segment information (Details 6)

Segment information (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	$ 3,046	$ 3,163	$ 3,087
Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	2,615	2,744	2,622
All Other operating segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	276	279	305
Cost Centers
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	156	149	151
Other
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	(1)	(9)	9
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	1,767	1,859	1,833
Machinery, Energy & Transportation | Business
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	2,164	2,253	2,273
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	1,767	1,859	1,833
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	276	279	305
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	156	149	151
Machinery, Energy & Transportation | Business | Other
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	(35)	(34)	(16)
Financial Products | Business
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	882	910	814
Financial Products | Business | Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	848	885	789
Financial Products | Business | All Other operating segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	0	0	0
Financial Products | Business | Other
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	$ 34	$ 25	$ 25

Segment information (Details 7)

Segment information (Details 7) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Capital expenditures
Total capital expenditures	$ 3,261	$ 3,379	$ 4,446
Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	2,806	2,888	3,533
All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	276	331	452
Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	195	181	191
Timing
Reconciliation of Capital expenditures
Total capital expenditures	37	21	363
Other
Reconciliation of Capital expenditures
Total capital expenditures	(53)	(42)	(93)
Consolidating Adjustments
Reconciliation of Capital expenditures
Total capital expenditures	(28)	(79)	(70)
Consolidating Adjustments | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | Timing
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | Other
Reconciliation of Capital expenditures
Total capital expenditures	(28)	(79)	(70)
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	1,341	1,254	1,727
Machinery, Energy & Transportation | Business
Reconciliation of Capital expenditures
Total capital expenditures	1,630	1,641	2,605
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	1,341	1,254	1,727
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	276	331	452
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	195	181	191
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures	37	21	363
Machinery, Energy & Transportation | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	(219)	(146)	(128)
Financial Products | Business
Reconciliation of Capital expenditures
Total capital expenditures	1,659	1,817	1,911
Financial Products | Business | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	1,465	1,634	1,806
Financial Products | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Financial Products | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Financial Products | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	$ 194	$ 183	$ 105

Segment information (Details 8)

Segment information (Details 8) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information
External sales and revenues	$ 11,030	$ 10,962	$ 12,317	$ 12,702	$ 14,244	$ 13,549	$ 14,150	$ 13,241	$ 47,011	$ 55,184	$ 55,656
Net property, plant and equipment	16,090				16,577				16,090	16,577
Inside United States
Segment Reporting Information
External sales and revenues									19,218	21,122	18,579
Net property, plant and equipment	8,842				8,714				8,842	8,714
Outside the United States
Segment Reporting Information
External sales and revenues									27,793	34,062	$ 37,077
Net property, plant and equipment	$ 7,248				$ 7,863				$ 7,248	$ 7,863

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Millions	1 Months Ended			12 Months Ended
	Dec. 31, 2015	Oct. 31, 2015	Sep. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Acquisitions
Net cash paid for acquisition				$ 400	$ 30	$ 195
Assets acquired
Investments in equity method companies	$ 203			203	248
Goodwill	$ 6,615			$ 6,615	$ 6,694	$ 6,956
RDS Manufacturing Inc.
Acquisitions
Percentage of equity acquired (as a percent)	100.00%			100.00%
Net cash paid for acquisition	$ 85
Trade receivable due from acquirer	5
Payments to acquire businesses, gross	74
Payments to acquire business, to be paid	11
Assets acquired
Tangible assets acquired	28			$ 28
Cash	1			1
Inventory	12			12
Property, plant and equipment	16			16
Goodwill	59			59
Liabilities assumed
Total liabilities assumed	2			2
Rail Product Solutions Inc.
Acquisitions
Percentage of equity acquired (as a percent)		100.00%
Net cash paid for acquisition		$ 165
Payments to acquire businesses, gross		166
Estimated net working capital adjustment		1
Assets acquired
Tangible assets acquired		41
Receivables		9
Inventory		6
Property, plant and equipment		17
Investments in equity method companies		9
Finite-lived intangible assets	$ 82	$ 82		$ 82
Finite-lived intangible assets, weighed average useful life (in years)		15 years
Goodwill		$ 53
Liabilities assumed
Total liabilities assumed		$ 11
Johan Walter Berg AB
Acquisitions
Percentage of equity acquired (as a percent)			100.00%
Net cash paid for acquisition			$ 169
Fair value of contingent consideration			7
Assets acquired
Tangible assets acquired			82
Cash			9
Receivables			13
Inventory			32
Property, plant and equipment			28
Finite-lived intangible assets			$ 70
Finite-lived intangible assets, weighed average useful life (in years)			11 years
Goodwill			$ 113
Liabilities assumed
Total liabilities assumed			87
Accounts payable			19
Customer advances			31
Noncurrent deferred income tax liabilities			$ 15

Divestitures (Details)

Divestitures (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)dealersTransaction	Dec. 31, 2013USD ($)dealersTransaction
Disposal groups
Cat Financial financing of transactions	$ 9,929	$ 11,278	$ 11,422
Bucyrus Distribution Business | Disposal group, not discontinued operations
Disposal groups
Asset impairment charges		$ 4	$ 11
Number of sales transactions completed | Transaction		32	19
Sales price of business		$ 199	$ 467
After-tax profit (loss) impact		(22)	(39)
Other operating income related to sales transactions		21	95
Unfavorable prior sale transaction adjustment		(14)
Increase (Decrease) in Parts Returns Reserve			34
Selling, general and administrative expenses		25	104
Income tax		4	(4)
Customer relationship intangible assets sold		82	127
Other assets sold		24	65
Allocated goodwill		$ 63	$ 56
Number of dealers receiving financing | dealers		2	5
Cat Financial | Bucyrus Distribution Business | Disposal group, not discontinued operations
Disposal groups
Cat Financial financing of transactions		$ 20	$ 132

Restructuring Costs (Details)

Restructuring Costs (Details) $ in Millions	Jan. 01, 2016USD ($)former_employee	Dec. 31, 2015USD ($)	Dec. 31, 2015USD ($)former_employee	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Restructuring Cost [Abstract]
Restructuring costs		$ 682		$ 908	$ 441	$ 200
Employee separation costs				641	382	151
Restructuring fixed asset impairments				127	48	41
Defined benefit plan curtailment and settlement losses				92	11
Other restructuring costs				48		8
Positions eliminated | former_employee			5,000
Employee Separation Activity
Liability balance at beginning of period	$ 483			182	89
Employee separation costs				641	382	151
Reduction in liability (payments and other adjustments)				340	289
Liability balance at end of period		$ 483	$ 483	483	182	$ 89
Gosselies, Belgium facility
Restructuring Cost [Abstract]
Employee separation costs				24	273
Employee Separation Activity
Employee separation costs				24	$ 273
Employee separation
Restructuring Cost [Abstract]
Positions eliminated | former_employee			3,000
Voluntary retirement enhancement program
Restructuring Cost [Abstract]
Employee separation costs				379
Positions eliminated | former_employee	2,100
Curtailment expense				86
Employee Separation Activity
Employee separation costs				$ 379

Selected quarterly financial130

Selected quarterly financial results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Sales and revenues	$ 11,030	$ 10,962	$ 12,317	$ 12,702	$ 14,244	$ 13,549	$ 14,150	$ 13,241	$ 47,011		$ 55,184		$ 55,656
Less: Revenues	(712)	(677)	(734)	(741)	(744)	(791)	(759)	(748)	(2,864)		(3,042)		(2,962)
Sales	10,318	10,285	11,583	11,961	13,500	12,758	13,391	12,493	44,147		52,142		52,694
Cost of goods sold	8,183	7,954	8,762	8,843	10,499	9,634	10,197	9,437	33,742		39,767		40,727
Gross margin	2,135	2,331	2,821	3,118	3,001	3,124	3,194	3,056
Profit	$ (87)	$ 368	$ 710	$ 1,111	$ 757	$ 1,017	$ 999	$ 922	$ 2,102	[1]	$ 3,695	[1]	$ 3,789	[1]
Profit (loss) per common share	$ (0.15)	$ 0.63	$ 1.18	$ 1.84	$ 1.25	$ 1.66	$ 1.60	$ 1.47	$ 3.54		$ 5.99		$ 5.87
Profit (loss) per common share - diluted	$ (0.15)	$ 0.62	$ 1.16	$ 1.81	$ 1.23	$ 1.63	$ 1.57	$ 1.44	$ 3.50	[2]	$ 5.88	[2]	$ 5.75	[2]
Restructuring costs	$ 682								$ 908		$ 441		$ 200
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Receivables - trade and other									764		163		835
Accounts payable									$ (1,165)		$ 222		$ 134
[1]	1 Profit attributable to common stockholders.
[2]	2 Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method.