Caterpillar (CAT) 10-Q 3 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document	6 Months Ended
	Jun. 30, 2016shares
Document and Entity Information
Entity Registrant Name	CATERPILLAR INC
Entity Central Index Key	18,230
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	584,231,181
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Consolidated Statement of Resul

Consolidated Statement of Results of Operations - USD ($) shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Sales and revenues:
Sales of Machinery, Energy & Transportation		$ 9,645	$ 11,583	$ 18,425	$ 23,544
Revenues of Financial Products		697	734	1,378	1,475
Total sales and revenues		10,342	12,317	19,803	25,019
Operating costs:
Cost of goods sold		7,419	8,674	14,241	17,434
Selling, general and administrative expenses		1,123	1,318	2,211	2,567
Research and development expenses		468	510	976	1,034
Interest expense of Financial Products		148	148	300	298
Other operating (income) expenses		399	334	796	651
Total operating costs		9,557	10,984	18,524	21,984
Operating profit		785	1,333	1,279	3,035
Interest expense excluding Financial Products		130	125	259	254
Other income (expense)		84	(72)	84	122
Consolidated profit before taxes		739	1,136	1,104	2,903
Provision (benefit) for income taxes		184	335	276	856
Profit of consolidated companies		555	801	828	2,047
Equity in profit (loss) of unconsolidated affiliated companies		(2)	2	(3)	4
Profit of consolidated and affiliated companies		553	803	825	2,051
Less: Profit (loss) attributable to noncontrolling interests		3	1	4	4
Profit	[1]	$ 550	$ 802	$ 821	$ 2,047
Profit per common share (in dollars per share)		$ 0.94	$ 1.33	$ 1.41	$ 3.39
Profit per common share - diluted (in dollars per share)	[2]	$ 0.93	$ 1.31	$ 1.40	$ 3.34
Weighted-average common shares outstanding (millions)
Basic (in shares)		584.1	603.2	583.4	604.1
Diluted (in shares)	[2]	588.6	610.7	588.2	611.8
Cash dividends declared per common share (in dollars per share)		$ 1.54	$ 1.47	$ 1.54	$ 1.47
[1]	1 Profit attributable to common stockholders.
[2]	2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Profit of consolidated and affiliated companies	$ 553	$ 803	$ 825	$ 2,051
Other Comprehensive Income (Loss), Net of Tax:
Foreign currency translation, net of tax (provision)/benefit of: Three months ended: 2016-$(20), 2015-$30; Six months ended: 2016-$12, 2015-$(55)	(103)	216	305	(570)
Pension and other postretirement benefits:
Current year actuarial gain (loss), net of tax (provision)/benefit of: Three months ended: 2016-$0, 2015-$0; Six months ended: 2016-$0, 2015-$0	0	0	0	0
Amortization of actuarial (gain) loss, net of tax (provision)/benefit of: Three months ended: 2016-$0, 2015-$0; Six months ended: 2016-$0, 2015-$0	0	0	0	0
Current year prior service credit (cost), net of tax (provision)/benefit of: Three months ended: 2016-$0, 2015-$0; Six months ended: 2016-$(69), 2015-$0	(1)	0	117	0
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: Three months ended: 2016-$6, 2015-$5; Six months ended: 2016-$11, 2015-$9	(9)	(9)	(19)	(18)
Derivative financial instruments:
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2016-$11, 2015-$(7); Six months ended: 2016-$5, 2015-$2	(18)	11	(9)	(3)
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2016-$(1), 2015-$(15); Six months ended: 2016-$(6), 2015-$(29)	1	25	10	49
Available-for-sale securities:
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2016-$(3), 2015-$4; Six months ended: 2016-$(8), 2015-$0	10	(6)	16	2
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2016-$10, 2015-$0; Six months ended: 2016-$9, 2015-$1	(20)	(1)	(18)	(3)
Total other comprehensive income (loss), net of tax	(140)	236	402	(543)
Comprehensive Income	413	1,039	1,227	1,508
Less: comprehensive income attributable to the noncontrolling interests	(3)	7	(4)	4
Comprehensive income attributable to stockholders	$ 410	$ 1,046	$ 1,223	$ 1,512

Consolidated Statement of Comp4

Consolidated Statement of Comprehensive Income (Parenthetical) (Parentheticals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax (provision)/benefit	$ (20)	$ 30	$ 12	$ (55)
Pension and other postretirement benefits, Current year actuarial gain (loss), tax (provision)/benefit	0	0	0	0
Pension and other postretirement benefits, Amortization of actuarial (gain) loss, tax (provision)/benefit	0	0	0	0
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit	0	0	(69)	0
Pension and other postretirement benefits, Amortization of prior service (credit) cost, tax (provision)/benefit	6	5	11	9
Derivative financial instruments, Gains (losses) deferred, tax (provision)/benefit	11	(7)	5	2
Derivative financial instruments, (Gains) losses reclassified to earnings, tax (provision)/benefit	(1)	(15)	(6)	(29)
Available-for-sale securities, Gains (losses) deferred, tax (provision)/benefit	(3)	4	(8)	0
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit	$ 10	$ 0	$ 9	$ 1

Consolidated Statement of Finan

Consolidated Statement of Financial Position - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and short-term investments	$ 6,764	$ 6,460
Receivables - trade and other	6,326	6,695
Receivables - finance	9,201	8,991
Prepaid expenses and other current assets	1,857	1,662
Inventories	9,458	9,700
Total current assets	33,606	33,508
Property, plant and equipment - net	15,916	16,090
Long-term receivables - trade and other	1,180	1,170
Long-term receivables - finance	13,689	13,651
Noncurrent deferred and refundable income taxes	2,536	2,489
Intangible assets	2,652	2,821
Goodwill	6,677	6,615
Other assets	2,044	1,998
Total assets	78,300	78,342
Short-term borrowings:
Machinery, Energy & Transportation	263	9
Financial Products	7,220	6,958
Accounts payable	5,104	5,023
Accrued expenses	3,127	3,116
Accrued wages, salaries and employee benefits	1,265	1,994
Customer advances	1,259	1,146
Dividends payable	450	448
Other current liabilities	1,635	1,671
Long-term debt due within one year:
Machinery, Energy & Transportation	1,055	517
Financial Products	5,805	5,360
Total current liabilities	27,183	26,242
Long-term debt due after one year:
Machinery, Energy & Transportation	8,434	8,960
Financial Products	15,546	16,209
Liability for postemployment benefits	8,533	8,843
Other liabilities	3,301	3,203
Total liabilities	62,997	63,457
Commitments and contingencies (Notes 10 and 13)
Stockholders' equity
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (6/30/16 and 12/31/15 – 814,894,624) at paid-in amount	5,277	5,238
Treasury stock (6/30/16 – 230,663,443 shares; 12/31/15 – 232,572,734 shares) at cost	(17,579)	(17,640)
Profit employed in the business	29,167	29,246
Accumulated other comprehensive income (loss)	(1,633)	(2,035)
Noncontrolling interests	71	76
Total stockholders' equity	15,303	14,885
Total liabilities and stockholders' equity	$ 78,300	$ 78,342

Consolidated Statement of Fina6

Consolidated Statement of Financial Position (Parenthetical) (Parentheticals) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
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	230,663,443	232,572,734

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Millions		Total	Common stock	Treasury stock	Profit employed in the business	Accumulated other comprehensive income (loss)	Noncontrolling interests
Balance at Dec. 31, 2014		$ 16,826	$ 5,016	$ (15,726)	$ 28,515	$ (1,059)	$ 80
Increase (Decrease) in Stockholders' Equity
Profit of consolidated and affiliated companies		2,051	0	0	2,047	0	4
Foreign currency translation, net of tax		(570)	0	0	0	(562)	(8)
Pension and other postretirement benefits, net of tax		(18)	0	0	0	(18)	0
Derivative financial instruments, net of tax		46	0	0	0	46	0
Available-for-sale securities, net of tax		(1)	0	0	0	(1)	0
Dividends declared		(885)	0	0	(885)	0	0
Distribution to noncontrolling interests		(7)	0	0	0	0	(7)
Common shares issued from treasury stock for stock-based compensation: 1,909,291 and 2,674,058 for the six months ended June 30, 2016 and 2015, respectively		33	(74)	107	0	0	0
Stock-based compensation expense		193	193	0	0	0	0
Net excess tax benefits from stock-based compensation		7	7	0	0	0	0
Common shares repurchased: 6,208,074 for the six months ended June 30, 2015	[1]	(525)	0	(525)	0	0	0
Balance at Jun. 30, 2015		17,150	5,142	(16,144)	29,677	(1,594)	69
Balance at Dec. 31, 2015		14,885	5,238	(17,640)	29,246	(2,035)	76
Increase (Decrease) in Stockholders' Equity
Profit of consolidated and affiliated companies		825	0	0	821	0	4
Foreign currency translation, net of tax		305	0	0	0	305	0
Pension and other postretirement benefits, net of tax		98	0	0	0	98	0
Derivative financial instruments, net of tax		1	0	0	0	1	0
Available-for-sale securities, net of tax		(2)	0	0	0	(2)	0
Dividends declared		(900)	0	0	(900)	0	0
Distribution to noncontrolling interests		(9)	0	0	0	0	(9)
Common shares issued from treasury stock for stock-based compensation: 1,909,291 and 2,674,058 for the six months ended June 30, 2016 and 2015, respectively		(47)	(108)	61	0	0	0
Stock-based compensation expense		146	146	0	0	0	0
Net excess tax benefits from stock-based compensation		(5)	(5)	0	0	0	0
Other		6	6	0	0	0	0
Balance at Jun. 30, 2016		$ 15,303	$ 5,277	$ (17,579)	$ 29,167	$ (1,633)	$ 71
[1]	See Note 11 regarding shares repurchased.

Consolidated Statement of Chan8

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (Parentheticals) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Stockholders' Equity [Abstract]
Common shares issued from treasury stock for stock-based compensation (in shares)	1,909,291	2,674,058
Common shares repurchased (in shares)	0	6,208,074

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$ 825	$ 2,051
Adjustments for non-cash items:
Depreciation and amortization	1,494	1,514
Other	368	142
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	573	383
Inventories	305	332
Accounts payable	208	(326)
Accrued expenses	1	(71)
Accrued wages, salaries and employee benefits	(743)	(801)
Customer advances	93	98
Other assets - net	(127)	215
Other liabilities - net	(197)	(179)
Net cash provided by (used for) operating activities	2,800	3,358
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others	(580)	(656)
Expenditures for equipment leased to others	(1,025)	(815)
Proceeds from disposals of leased assets and property, plant and equipment	383	367
Additions to finance receivables	(4,643)	(4,577)
Collections of finance receivables	4,466	4,477
Proceeds from sale of finance receivables	42	74
Investments and acquisitions (net of cash acquired)	(38)	(63)
Proceeds from sale of businesses and investments (net of cash sold)	0	168
Proceeds from sale of securities	195	128
Investments in securities	(243)	(119)
Other - net	(14)	(75)
Net cash provided by (used for) investing activities	(1,457)	(1,091)
Cash flow from financing activities:
Dividends paid	(898)	(846)
Distribution to noncontrolling interests	0	(7)
Common stock issued, including treasury shares reissued	(47)	33
Treasury shares purchased	0	(525)
Excess tax benefit from stock-based compensation	4	18
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	1	3
Financial Products	2,840	3,688
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(7)	(509)
Financial Products	(3,324)	(5,580)
Short-term borrowings - net (original maturities three months or less)	391	1,972
Net cash provided by (used for) financing activities	(1,040)	(1,753)
Effect of exchange rate changes on cash	1	(34)
Increase (decrease) in cash and short-term investments	304	480
Cash and short-term investments at beginning of period	6,460	7,341
Cash and short-term investments at end of period	$ 6,764	$ 7,821

Nature of Operations, Basis of

Nature of Operations, Basis of Presentation and Change in Accounting Principle	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Basis of Presentation	A. Nature of operations Information in our financial statements and related commentary are presented in the following categories: Machinery, Energy & Transportation – Represents the aggregate total of Construction Industries, Resource Industries, Energy & Transportation and All Other operating segments and related corporate items and eliminations. Financial Products – Primarily includes the company’s Financial Products Segment. This category includes Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Financial Insurance Services (Insurance Services) and their respective subsidiaries. B. Basis of presentation In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and six months ended June 30, 2016 and 2015 , (b) the consolidated comprehensive income for the three and six months ended June 30, 2016 and 2015 , (c) the consolidated financial position at June 30, 2016 and December 31, 2015 , (d) the consolidated changes in stockholders’ equity for the six months ended June 30, 2016 and 2015 and (e) the consolidated cash flow for the six months ended June 30, 2016 and 2015 . The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our company’s annual report on Form 10-K for the year ended December 31, 2015 ( 2015 Form 10-K), which were retrospectively adjusted in the Current Report on Form 8-K filed with the SEC on May 16, 2016. The December 31, 2015 financial position data included herein is derived from the audited consolidated financial statements included in the 2015 Form 10-K, which were retrospectively adjusted in the Current Report on Form 8-K filed with the SEC on May 16, 2016, but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. See Note 1C., Note 2, Note 7 and Note 15 for more information. Unconsolidated Variable Interest Entities (VIEs) We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the economic performance of each entity. Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows: (Millions of dollars) June 30, 2016 December 31, 2015 Receivables - trade and other $ 39 $ 19 Receivables - finance 209 466 Long-term receivables - finance 262 62 Other assets 35 35 Guarantees 213 175 Total $ 758 $ 757
Change in Accounting Principle	C. Change in Accounting Principle Effective January 1, 2016, we changed our accounting principle for recognizing actuarial gains and losses and expected returns on plan assets for our defined benefit pension and other postretirement benefit plans. 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 net benefit cost upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. In addition, we have changed our policy for recognizing the 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 these changes are preferable as they accelerate the recognition of changes in fair value of plan assets and actuarial gains and losses in our Consolidated Statement of Results of Operations, provide greater transparency of our economic obligations in accounting results and better align with the fair value 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 have been applied retrospectively to prior years. As of January 1, 2015, the cumulative effect of the change resulted in a decrease of $5.4 billion in Profit employed in the business and a corresponding increase of $5.4 billion in Accumulated other comprehensive income (loss), both net of tax of $2.9 billion . Following are the changes to financial statement line items as a result of the accounting principle change for the periods presented in the accompanying unaudited consolidated financial statements: Consolidated Statement of Results of Operations (Dollars in millions except per share data) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Cost of goods sold $ 7,419 $ 7,480 $ (61 ) $ 8,674 $ 8,762 $ (88 ) Selling, general and administrative expenses $ 1,123 $ 1,156 $ (33 ) $ 1,318 $ 1,389 $ (71 ) Research and development expenses $ 468 $ 479 $ (11 ) $ 510 $ 532 $ (22 ) Other operating (income) expenses $ 399 $ 399 $ — $ 334 $ 356 $ (22 ) Total operating costs $ 9,557 $ 9,662 $ (105 ) $ 10,984 $ 11,187 $ (203 ) Operating profit $ 785 $ 680 $ 105 $ 1,333 $ 1,130 $ 203 Other income (expense) $ 84 $ 43 $ 41 $ (72 ) $ (13 ) $ (59 ) Consolidated profit before taxes $ 739 $ 593 $ 146 $ 1,136 $ 992 $ 144 Provision for income taxes $ 184 $ 136 $ 48 $ 335 $ 283 $ 52 Profit of consolidated companies $ 555 $ 457 $ 98 $ 801 $ 709 $ 92 Profit of consolidated and affiliated companies $ 553 $ 455 $ 98 $ 803 $ 711 $ 92 Profit $ 550 $ 452 $ 98 $ 802 $ 710 $ 92 Profit per common share $ 0.94 $ 0.77 $ 0.17 $ 1.33 $ 1.18 $ 0.15 Profit per common share - diluted $ 0.93 $ 0.77 $ 0.16 $ 1.31 $ 1.16 $ 0.15 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Cost of goods sold $ 14,241 $ 14,361 $ (120 ) $ 17,434 $ 17,605 $ (171 ) Selling, general and administrative expenses $ 2,211 $ 2,280 $ (69 ) $ 2,567 $ 2,707 $ (140 ) Research and development expenses $ 976 $ 997 $ (21 ) $ 1,034 $ 1,078 $ (44 ) Other operating (income) expenses $ 796 $ 796 $ — $ 651 $ 674 $ (23 ) Total operating costs $ 18,524 $ 18,734 $ (210 ) $ 21,984 $ 22,362 $ (378 ) Operating profit $ 1,279 $ 1,069 $ 210 $ 3,035 $ 2,657 $ 378 Other income (expense) $ 84 $ 47 $ 37 $ 122 $ 144 $ (22 ) Consolidated profit before taxes $ 1,104 $ 857 $ 247 $ 2,903 $ 2,547 $ 356 Provision for income taxes $ 276 $ 197 $ 79 $ 856 $ 726 $ 130 Profit of consolidated companies $ 828 $ 660 $ 168 $ 2,047 $ 1,821 $ 226 Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 $ 2,051 $ 1,825 $ 226 Profit $ 821 $ 653 $ 168 $ 2,047 $ 1,821 $ 226 Profit per common share $ 1.41 $ 1.12 $ 0.29 $ 3.39 $ 3.01 $ 0.38 Profit per common share - diluted $ 1.40 $ 1.11 $ 0.29 $ 3.34 $ 2.98 $ 0.36 Consolidated Statement of Comprehensive Income (Dollars in millions) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 553 $ 455 $ 98 $ 803 $ 711 $ 92 Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax $ — $ — $ — $ — $ 19 $ (19 ) Amortization of actuarial (gain) loss, net of tax $ — $ 79 $ (79 ) $ — $ 109 $ (109 ) Total other comprehensive income (loss), net of tax $ (140 ) $ (61 ) $ (79 ) $ 236 $ 364 $ (128 ) Comprehensive income $ 413 $ 394 $ 19 $ 1,039 $ 1,075 $ (36 ) Comprehensive income attributable to stockholders $ 410 $ 391 $ 19 $ 1,046 $ 1,082 $ (36 ) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 $ 2,051 $ 1,825 $ 226 Foreign currency translation, net of tax $ 305 $ 308 $ (3 ) $ (570 ) $ (575 ) $ 5 Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax $ — $ (3 ) $ 3 $ — $ 24 $ (24 ) Amortization of actuarial (gain) loss, net of tax $ — $ 158 $ (158 ) $ — $ 218 $ (218 ) Total other comprehensive income (loss), net of tax $ 402 $ 560 $ (158 ) $ (543 ) $ (306 ) $ (237 ) Comprehensive income $ 1,227 $ 1,217 $ 10 $ 1,508 $ 1,519 $ (11 ) Comprehensive income attributable to stockholders $ 1,223 $ 1,213 $ 10 $ 1,512 $ 1,523 $ (11 ) Consolidated Statement of Financial Position (Dollars in millions) June 30, 2016 As Reported Previous Accounting Method Effect of Accounting Change Noncurrent deferred and refundable income taxes $ 2,536 $ 2,543 $ (7 ) Liability for postemployment benefits $ 8,533 $ 8,550 $ (17 ) Profit employed in the business $ 29,167 $ 33,961 $ (4,794 ) Accumulated other comprehensive income (loss) $ (1,633 ) $ (6,437 ) $ 4,804 December 31, 2015 Recast Previously Reported Effect of Accounting Change Profit employed in the business $ 29,246 $ 34,208 $ (4,962 ) Accumulated other comprehensive income (loss) $ (2,035 ) $ (6,997 ) $ 4,962 Consolidated Statement of Changes in Stockholders' Equity (Dollars in millions) Six Months Ended June 30, 2016 As Reported Previous Accounting Method Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 Foreign currency translation, net of tax $ 305 $ 308 $ (3 ) Pension and other postretirement benefits, net of tax $ 98 $ 253 $ (155 ) Balance at June 30, 2016 $ 15,303 $ 15,293 $ 10 Six Months Ended June 30, 2015 Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 2,051 $ 1,825 $ 226 Foreign currency translation, net of tax $ (570 ) $ (575 ) $ 5 Pension and other postretirement benefits, net of tax $ (18 ) $ 224 $ (242 ) Balance at June 30, 2015 $ 17,150 $ 17,161 $ (11 ) Consolidated Statement of Cash Flow (Millions of dollars) Six Months Ended June 30, 2016 Cash flow from operating activities: As Reported Previous Accounting Method Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 Adjustments for non-cash items: Other $ 368 $ 405 $ (37 ) Other assets – net $ (127 ) $ (206 ) $ 79 Other liabilities – net $ (197 ) $ 13 $ (210 ) Six Months Ended June 30, 2015 Cash flow from operating activities: Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 2,051 $ 1,825 $ 226 Adjustments for non-cash items: Other $ 142 $ 120 $ 22 Other assets – net $ 215 $ 85 $ 130 Other liabilities – net $ (179 ) $ 199 $ (378 ) New accounting guidance Revenue recognition – In May 2014, the Financial Accounting Standards Board (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 plan to adopt the new guidance effective January 1, 2018 and are in the process of evaluating the effect of the new guidance on our financial statements. 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. The 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. The guidance was effective January 1, 2016 and was applied retrospectively. The adoption 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 was 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 was 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. Previous 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. We had 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 applied it retrospectively. The adoption resulted in the reclassification of current deferred tax assets and liabilities to noncurrent assets and liabilities on the Consolidated Statement of Financial Position. For the year ended December 31, 2015, Deferred and refundable income taxes were reduced by $910 million (the remaining balance of $616 million was reclassified to Prepaid expenses and other current assets), Noncurrent deferred and refundable income taxes were increased by $835 million , Other current liabilities were reduced by $59 million and Other liabilities were reduced by $16 million . 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 Consolidated Statement of Financial Position as of the beginning of the year of adoption. The impact on our financial statements at the time of adoption will primarily 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. Lease accounting - In February 2016, the FASB issued accounting guidance that revises the accounting for leases. Under the new guidance, lessees are required to recognize a right-of-use asset and a lease liability for all leases. The new guidance will continue to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. The accounting applied by a lessor under the new guidance will be substantially equivalent to current lease accounting guidance. The new guidance is effective January 1, 2019 with early adoption permitted. The new standard is required to be applied with a modified retrospective approach to each prior reporting period presented and provides for certain practical expedients. We are in the process of evaluating the effect of the new guidance on our financial statements. Stock-based compensation - In March 2016, the FASB issued accounting guidance to simplify several aspects of the accounting for share-based payments. The new guidance changes how reporting entities account for certain aspects of share-based payments, including the accounting for income taxes and the classification of the tax impact on the Consolidated Statement of Cash Flow. The new guidance is effective January 1, 2017 with early adoption permitted. We are in the process of evaluating the effect of the new guidance on our financial statements. Measurement of credit losses on financial instruments - In June 2016, the FASB issued accounting guidance to introduce a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new guidance will apply to loans, accounts receivable, trade receivables, other financial assets measured at amortized cost, loan commitments and other off-balance sheet credit exposures. The new guidance will also apply to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance is effective January 1, 2020, with early adoption permitted beginning January 1, 2019. We are in the process of evaluating the effect of the new guidance on our financial statements.

New Accounting Guidance

New Accounting Guidance	6 Months Ended
	Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]
New Accounting Guidance	C. Change in Accounting Principle Effective January 1, 2016, we changed our accounting principle for recognizing actuarial gains and losses and expected returns on plan assets for our defined benefit pension and other postretirement benefit plans. 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 net benefit cost upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. In addition, we have changed our policy for recognizing the 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 these changes are preferable as they accelerate the recognition of changes in fair value of plan assets and actuarial gains and losses in our Consolidated Statement of Results of Operations, provide greater transparency of our economic obligations in accounting results and better align with the fair value 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 have been applied retrospectively to prior years. As of January 1, 2015, the cumulative effect of the change resulted in a decrease of $5.4 billion in Profit employed in the business and a corresponding increase of $5.4 billion in Accumulated other comprehensive income (loss), both net of tax of $2.9 billion . Following are the changes to financial statement line items as a result of the accounting principle change for the periods presented in the accompanying unaudited consolidated financial statements: Consolidated Statement of Results of Operations (Dollars in millions except per share data) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Cost of goods sold $ 7,419 $ 7,480 $ (61 ) $ 8,674 $ 8,762 $ (88 ) Selling, general and administrative expenses $ 1,123 $ 1,156 $ (33 ) $ 1,318 $ 1,389 $ (71 ) Research and development expenses $ 468 $ 479 $ (11 ) $ 510 $ 532 $ (22 ) Other operating (income) expenses $ 399 $ 399 $ — $ 334 $ 356 $ (22 ) Total operating costs $ 9,557 $ 9,662 $ (105 ) $ 10,984 $ 11,187 $ (203 ) Operating profit $ 785 $ 680 $ 105 $ 1,333 $ 1,130 $ 203 Other income (expense) $ 84 $ 43 $ 41 $ (72 ) $ (13 ) $ (59 ) Consolidated profit before taxes $ 739 $ 593 $ 146 $ 1,136 $ 992 $ 144 Provision for income taxes $ 184 $ 136 $ 48 $ 335 $ 283 $ 52 Profit of consolidated companies $ 555 $ 457 $ 98 $ 801 $ 709 $ 92 Profit of consolidated and affiliated companies $ 553 $ 455 $ 98 $ 803 $ 711 $ 92 Profit $ 550 $ 452 $ 98 $ 802 $ 710 $ 92 Profit per common share $ 0.94 $ 0.77 $ 0.17 $ 1.33 $ 1.18 $ 0.15 Profit per common share - diluted $ 0.93 $ 0.77 $ 0.16 $ 1.31 $ 1.16 $ 0.15 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Cost of goods sold $ 14,241 $ 14,361 $ (120 ) $ 17,434 $ 17,605 $ (171 ) Selling, general and administrative expenses $ 2,211 $ 2,280 $ (69 ) $ 2,567 $ 2,707 $ (140 ) Research and development expenses $ 976 $ 997 $ (21 ) $ 1,034 $ 1,078 $ (44 ) Other operating (income) expenses $ 796 $ 796 $ — $ 651 $ 674 $ (23 ) Total operating costs $ 18,524 $ 18,734 $ (210 ) $ 21,984 $ 22,362 $ (378 ) Operating profit $ 1,279 $ 1,069 $ 210 $ 3,035 $ 2,657 $ 378 Other income (expense) $ 84 $ 47 $ 37 $ 122 $ 144 $ (22 ) Consolidated profit before taxes $ 1,104 $ 857 $ 247 $ 2,903 $ 2,547 $ 356 Provision for income taxes $ 276 $ 197 $ 79 $ 856 $ 726 $ 130 Profit of consolidated companies $ 828 $ 660 $ 168 $ 2,047 $ 1,821 $ 226 Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 $ 2,051 $ 1,825 $ 226 Profit $ 821 $ 653 $ 168 $ 2,047 $ 1,821 $ 226 Profit per common share $ 1.41 $ 1.12 $ 0.29 $ 3.39 $ 3.01 $ 0.38 Profit per common share - diluted $ 1.40 $ 1.11 $ 0.29 $ 3.34 $ 2.98 $ 0.36 Consolidated Statement of Comprehensive Income (Dollars in millions) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 553 $ 455 $ 98 $ 803 $ 711 $ 92 Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax $ — $ — $ — $ — $ 19 $ (19 ) Amortization of actuarial (gain) loss, net of tax $ — $ 79 $ (79 ) $ — $ 109 $ (109 ) Total other comprehensive income (loss), net of tax $ (140 ) $ (61 ) $ (79 ) $ 236 $ 364 $ (128 ) Comprehensive income $ 413 $ 394 $ 19 $ 1,039 $ 1,075 $ (36 ) Comprehensive income attributable to stockholders $ 410 $ 391 $ 19 $ 1,046 $ 1,082 $ (36 ) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 $ 2,051 $ 1,825 $ 226 Foreign currency translation, net of tax $ 305 $ 308 $ (3 ) $ (570 ) $ (575 ) $ 5 Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax $ — $ (3 ) $ 3 $ — $ 24 $ (24 ) Amortization of actuarial (gain) loss, net of tax $ — $ 158 $ (158 ) $ — $ 218 $ (218 ) Total other comprehensive income (loss), net of tax $ 402 $ 560 $ (158 ) $ (543 ) $ (306 ) $ (237 ) Comprehensive income $ 1,227 $ 1,217 $ 10 $ 1,508 $ 1,519 $ (11 ) Comprehensive income attributable to stockholders $ 1,223 $ 1,213 $ 10 $ 1,512 $ 1,523 $ (11 ) Consolidated Statement of Financial Position (Dollars in millions) June 30, 2016 As Reported Previous Accounting Method Effect of Accounting Change Noncurrent deferred and refundable income taxes $ 2,536 $ 2,543 $ (7 ) Liability for postemployment benefits $ 8,533 $ 8,550 $ (17 ) Profit employed in the business $ 29,167 $ 33,961 $ (4,794 ) Accumulated other comprehensive income (loss) $ (1,633 ) $ (6,437 ) $ 4,804 December 31, 2015 Recast Previously Reported Effect of Accounting Change Profit employed in the business $ 29,246 $ 34,208 $ (4,962 ) Accumulated other comprehensive income (loss) $ (2,035 ) $ (6,997 ) $ 4,962 Consolidated Statement of Changes in Stockholders' Equity (Dollars in millions) Six Months Ended June 30, 2016 As Reported Previous Accounting Method Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 Foreign currency translation, net of tax $ 305 $ 308 $ (3 ) Pension and other postretirement benefits, net of tax $ 98 $ 253 $ (155 ) Balance at June 30, 2016 $ 15,303 $ 15,293 $ 10 Six Months Ended June 30, 2015 Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 2,051 $ 1,825 $ 226 Foreign currency translation, net of tax $ (570 ) $ (575 ) $ 5 Pension and other postretirement benefits, net of tax $ (18 ) $ 224 $ (242 ) Balance at June 30, 2015 $ 17,150 $ 17,161 $ (11 ) Consolidated Statement of Cash Flow (Millions of dollars) Six Months Ended June 30, 2016 Cash flow from operating activities: As Reported Previous Accounting Method Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 Adjustments for non-cash items: Other $ 368 $ 405 $ (37 ) Other assets – net $ (127 ) $ (206 ) $ 79 Other liabilities – net $ (197 ) $ 13 $ (210 ) Six Months Ended June 30, 2015 Cash flow from operating activities: Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 2,051 $ 1,825 $ 226 Adjustments for non-cash items: Other $ 142 $ 120 $ 22 Other assets – net $ 215 $ 85 $ 130 Other liabilities – net $ (179 ) $ 199 $ (378 ) New accounting guidance Revenue recognition – In May 2014, the Financial Accounting Standards Board (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 plan to adopt the new guidance effective January 1, 2018 and are in the process of evaluating the effect of the new guidance on our financial statements. 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. The 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. The guidance was effective January 1, 2016 and was applied retrospectively. The adoption 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 was 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 was 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. Previous 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. We had 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 applied it retrospectively. The adoption resulted in the reclassification of current deferred tax assets and liabilities to noncurrent assets and liabilities on the Consolidated Statement of Financial Position. For the year ended December 31, 2015, Deferred and refundable income taxes were reduced by $910 million (the remaining balance of $616 million was reclassified to Prepaid expenses and other current assets), Noncurrent deferred and refundable income taxes were increased by $835 million , Other current liabilities were reduced by $59 million and Other liabilities were reduced by $16 million . 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 Consolidated Statement of Financial Position as of the beginning of the year of adoption. The impact on our financial statements at the time of adoption will primarily 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. Lease accounting - In February 2016, the FASB issued accounting guidance that revises the accounting for leases. Under the new guidance, lessees are required to recognize a right-of-use asset and a lease liability for all leases. The new guidance will continue to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. The accounting applied by a lessor under the new guidance will be substantially equivalent to current lease accounting guidance. The new guidance is effective January 1, 2019 with early adoption permitted. The new standard is required to be applied with a modified retrospective approach to each prior reporting period presented and provides for certain practical expedients. We are in the process of evaluating the effect of the new guidance on our financial statements. Stock-based compensation - In March 2016, the FASB issued accounting guidance to simplify several aspects of the accounting for share-based payments. The new guidance changes how reporting entities account for certain aspects of share-based payments, including the accounting for income taxes and the classification of the tax impact on the Consolidated Statement of Cash Flow. The new guidance is effective January 1, 2017 with early adoption permitted. We are in the process of evaluating the effect of the new guidance on our financial statements. Measurement of credit losses on financial instruments - In June 2016, the FASB issued accounting guidance to introduce a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new guidance will apply to loans, accounts receivable, trade receivables, other financial assets measured at amortized cost, loan commitments and other off-balance sheet credit exposures. The new guidance will also apply to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance is effective January 1, 2020, with early adoption permitted beginning January 1, 2019. We are in the process of evaluating the effect of the new guidance on our financial statements.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-based compensation Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award. Our stock-based compensation primarily consists of stock options, restricted stock units (RSUs), performance-based restricted stock units (PRSUs) and stock-settled stock appreciation rights (SARs). Awards granted prior to 2015 generally vest three years after the date of grant (cliff vesting). The awards granted in 2015 and 2016 generally vest according to a three -year graded vesting schedule. Beginning in 2015, PRSUs were granted. PRSUs generally have a three -year performance period and cliff vest at the end of the period based upon achievement of performance targets established at the time of grant. 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" and all outstanding stock options, SARs and RSUs will vest. Outstanding PRSUs granted to employees with a "Long Service Separation" will vest at the end of the performance period based upon achievement of the performance target. For awards granted prior to 2016, 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. For awards granted in 2016, the vested options/SARs will have a life equal to ten years from the original grant date. We recognized pretax stock-based compensation expense in the amount of $45 million and $146 million for the three and six months ended June 30, 2016 , respectively and $58 million and $193 million for the three and six months ended June 30, 2015 , respectively. The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2016 and 2015 , respectively: Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Stock options 4,243,272 $ 20.64 $ 74.77 7,939,497 $ 23.61 $ 83.34 RSUs 1,085,505 $ 68.04 $ 74.77 1,690,661 $ 77.55 $ 83.02 PRSUs 614,347 $ 64.71 $ 74.77 132,068 $ 77.47 $ 82.90 The following table provides the assumptions used in determining the fair value of the stock-based awards for the six months ended June 30, 2016 and 2015 , respectively: Grant Year 2016 2015 Weighted-average dividend yield 3.23% 2.27% Weighted-average volatility 31.1% 28.4% Range of volatilities 22.5-33.4% 19.9-35.9% Range of risk-free interest rates 0.62-1.73% 0.22-2.08% Weighted-average expected lives 8 years 8 years As of June 30, 2016 , the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $261 million , which will be amortized over the weighted-average remaining requisite service periods of approximately 2.0 years.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments and Risk Management	Derivative financial instruments and risk management Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate swaps and commodity forward and option contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. Risk management practices, including the use of financial derivative instruments, are presented to the Audit Committee of the Board of Directors at least annually. All derivatives are recognized on the Consolidated Statement of Financial Position at their fair value. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income (loss) (AOCI), to the extent effective, on the Consolidated Statement of Financial Position until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged on the Consolidated Statement of Cash Flow. Cash flows from undesignated derivative financial instruments are included in the investing category on the Consolidated Statement of Cash Flow. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the Consolidated Statement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. Foreign Currency Exchange Rate Risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our Machinery, Energy & Transportation operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to five years. As of June 30, 2016 , the maximum term of these outstanding contracts was approximately 51 months . We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, euro, Indian rupee, Japanese yen, Mexican peso, 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 June 30, 2016 , $5 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings (Other income (expense) in the Consolidated Statement of Results of Operations) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward, option and cross currency contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed rate intercompany loans. 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 June 30, 2016 , $4 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate) of Cat Financial’s debt portfolio with the interest rate profile of their receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate swaps to meet the match-funding objective. We designate fixed-to-floating interest rate swaps as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate swaps as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. As of June 30, 2016 , less than $1 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery, Energy & Transportation and Financial Products. The gains or losses associated with these swaps at the time of liquidation are amortized into earnings over the original term of the previously designated hedged item. Commodity Price Risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw material. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our Machinery, Energy & Transportation operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five -year horizon. All such commodity forward and option contracts are undesignated. The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position are as follows: (Millions of dollars) Consolidated Statement of Financial Asset (Liability) Fair Value Position Location June 30, 2016 December 31, 2015 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 45 $ 12 Machinery, Energy & Transportation Accrued expenses (54 ) (25 ) Machinery, Energy & Transportation Other liabilities (7 ) — Financial Products Long-term receivables – trade and other 8 — Financial Products Accrued expenses (2 ) — Interest rate contracts Financial Products Receivables – trade and other — 1 Financial Products Long-term receivables – trade and other 50 51 Financial Products Accrued expenses (4 ) (4 ) $ 36 $ 35 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 4 $ 2 Machinery, Energy & Transportation Accrued expenses (6 ) (9 ) Financial Products Receivables – trade and other 6 3 Financial Products Long-term receivables – trade and other 26 36 Financial Products Accrued expenses (9 ) (6 ) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 4 — Machinery, Energy & Transportation Accrued expenses (2 ) (12 ) $ 23 $ 14 The total notional amounts of the derivative instruments are as follows: (Millions of dollars) June 30, 2016 December 31, 2015 Machinery, Energy & Transportation $ 2,442 $ 2,040 Financial Products $ 4,222 $ 3,539 The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. The amounts exchanged by the parties are calculated by reference to the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates or commodity prices. The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: Fair Value Hedges Three Months Ended Three Months Ended (Millions of dollars) Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (3 ) $ 3 $ (13 ) $ 12 $ (3 ) $ 3 $ (13 ) $ 12 Six Months Ended Six Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ — $ (1 ) $ (14 ) $ 13 $ — $ (1 ) $ (14 ) $ 13 Cash Flow Hedges Three Months Ended June 30, 2016 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (22 ) Other income (expense) $ 6 $ — Financial Products (6 ) Other income (expense) (6 ) — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products (1 ) Interest expense of Financial Products (1 ) — $ (29 ) $ (2 ) $ — Three Months Ended June 30, 2015 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ 18 Other income (expense) $ (37 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products — Interest expense of Financial Products (2 ) — $ 18 $ (40 ) $ — Six Months Ended June 30, 2016 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (6 ) Other income (expense) $ (4 ) $ — Financial Products (6 ) Other income (expense) (6 ) — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3 ) — Financial Products (2 ) Interest expense of Financial Products (3 ) — $ (14 ) $ (16 ) $ — Six Months Ended June 30, 2015 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (7 ) Other income (expense) $ (72 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3 ) — Financial Products 2 Interest expense of Financial Products (3 ) — $ (5 ) $ (78 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: (Millions of dollars) Classification of Gains (Losses) Three Months Ended Three Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ — $ 26 Financial Products Other income (expense) (24 ) 4 Commodity contracts Machinery, Energy & Transportation Other income (expense) 6 (1 ) $ (18 ) $ 29 Classification of Gains (Losses) Six Months Ended Six Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 22 $ (29 ) Financial Products Other income (expense) (28 ) (24 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) 6 (7 ) $ — $ (60 ) 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 June 30, 2016 and December 31, 2015 , 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: June 30, 2016 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 $ 53 $ — $ 53 $ (51 ) $ — $ 2 Financial Products 90 — 90 (11 ) — 79 Total $ 143 $ — $ 143 $ (62 ) $ — $ 81 June 30, 2016 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 $ (69 ) $ — $ (69 ) $ 51 $ — $ (18 ) Financial Products (15 ) — (15 ) 11 — (4 ) Total $ (84 ) $ — $ (84 ) $ 62 $ — $ (22 ) 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 )

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following: (Millions of dollars) June 30, December 31, Raw materials $ 2,394 $ 2,467 Work-in-process 1,906 1,857 Finished goods 4,916 5,122 Supplies 242 254 Total inventories $ 9,458 $ 9,700

Investments in Unconsolidated A

Investments in Unconsolidated Affiliated Companies	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated Affiliated Companies	Investments in unconsolidated affiliated companies Investments in unconsolidated affiliated companies, included in Other assets in the Consolidated Statement of Financial Position, were as follows: Caterpillar’s investments in unconsolidated affiliated companies: (Millions of dollars) June 30, December 31, Investments in equity method companies $ 197 $ 203 Plus: Investments in cost method companies 49 43 Total investments in unconsolidated affiliated companies $ 246 $ 246 In February 2015, we sold our 35 percent equity interest in the third party logistics business, formerly Caterpillar Logistics Services LLC, to an affiliate of The Goldman Sachs Group, Inc. and investment funds affiliated with Rhône Capital LLC for $177 million , which was comprised of $167 million in cash and a $10 million note receivable included in Long-term receivables - trade and other in the Consolidated Statement of Financial Position. As a result of the sale, we recognized a pretax gain of $120 million (included in Other income (expense)) and derecognized the carrying value of our noncontrolling interest of $57 million , which was previously included in Other assets in the Consolidated Statement of Financial Position. The gain on the disposal is included as a reconciling item between Segment profit and Consolidated profit before taxes. The sale of this investment supports Caterpillar's increased focus on growth opportunities in its core businesses.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible assets and goodwill A. Intangible assets Intangible assets are comprised of the following: June 30, 2016 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,511 $ (899 ) $ 1,612 Intellectual property 11 1,620 (693 ) 927 Other 14 182 (69 ) 113 Total finite-lived intangible assets 14 $ 4,313 $ (1,661 ) $ 2,652 December 31, 2015 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 Amortization expense for the three and six months ended June 30, 2016 was $82 million and $164 million , respectively. Amortization expense for the three and six months ended June 30, 2015 was $87 million and $174 million , respectively. Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Six Months of 2016 2017 2018 2019 2020 Thereafter $166 $331 $322 $320 $309 $1,204 B. Goodwill No goodwill was impaired during the three and six months ended June 30, 2016 or 2015 . As discussed in Note 15, effective January 1, 2016, we revised our reportable segments in line with the changes to our organization structure. As a result of these changes, $118 million of goodwill was reassigned to Energy & Transportation from All Other segments. The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2016 were as follows: (Millions of dollars) December 31, Other Adjustments 1 June 30, Construction Industries Goodwill $ 285 $ 17 $ 302 Impairments (22 ) — (22 ) Net goodwill 263 17 280 Resource Industries Goodwill 4,145 25 4,170 Impairments (580 ) — (580 ) Net goodwill 3,565 25 3,590 Energy & Transportation Goodwill 2,738 14 2,752 All Other 2 Goodwill 49 6 55 Consolidated total Goodwill 7,217 62 7,279 Impairments (602 ) — (602 ) Net goodwill $ 6,615 $ 62 $ 6,677 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segments (See Note 15).

Investments in Debt and Equity

Investments in Debt and Equity Securities	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Investments in Debt and Equity Securities	Investments in debt and equity 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. In addition, Insurance Services has an equity security investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment. These investments are primarily included in Other assets in the Consolidated Statement of Financial Position. Unrealized gains and losses arising from the revaluation of debt and equity securities are included, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position). Realized gains and losses on sales of investments are generally determined using the specific identification method for debt and equity securities and are included in Other income (expense) in the Consolidated Statement of Results of Operations. The cost basis and fair value of debt and equity securities were as follows: June 30, 2016 December 31, 2015 (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 $ 9 $ — $ 9 Other U.S. and non-U.S. government bonds 69 1 70 71 1 72 Corporate bonds Corporate bonds 718 16 734 701 7 708 Asset-backed securities 135 2 137 129 — 129 Mortgage-backed debt securities U.S. governmental agency 294 6 300 291 1 292 Residential 11 — 11 12 — 12 Commercial 57 1 58 59 2 61 Equity securities Large capitalization value 270 18 288 243 30 273 Real estate investment trust (REIT) 63 1 64 25 — 25 Smaller company growth 45 10 55 37 17 54 Total $ 1,671 $ 55 $ 1,726 $ 1,577 $ 58 $ 1,635 Available-for-sale investments in an unrealized loss position that are not other-than-temporarily impaired: June 30, 2016 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 Asset-backed securities $ — $ — $ 10 $ 1 $ 10 $ 1 Equity securities Large capitalization value 77 8 9 1 86 9 Small company growth 13 4 — — 13 4 Total $ 90 $ 12 $ 19 $ 2 $ 109 $ 14 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 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 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 June 30, 2016 . 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 June 30, 2016 . The cost basis and fair value of the available-for-sale debt securities at June 30, 2016 , 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. June 30, 2016 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 193 $ 194 Due after one year through five years 651 667 Due after five years through ten years 56 58 Due after ten years 31 31 U.S. governmental agency mortgage-backed securities 294 300 Residential mortgage-backed securities 11 11 Commercial mortgage-backed securities 57 58 Total debt securities – available-for-sale $ 1,293 $ 1,319 Sales of Securities: Three Months Ended Six Months Ended (Millions of dollars) 2016 2015 2016 2015 Proceeds from the sale of available-for-sale securities $ 146 $ 45 $ 195 $ 128 Gross gains from the sale of available-for-sale securities $ 32 $ 1 $ 33 $ 6 Gross losses from the sale of available-for-sale securities $ 1 $ — $ 2 $ 1

Postretirement Benefits

Postretirement Benefits	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Postretirement Benefits	Postretirement benefits A. Pension and postretirement benefit costs 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 the yield curve used to measure the benefit obligation at the beginning of the period. Beginning in 2016, we elected to utilize a full yield curve approach in the estimation of 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 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 our year-end pension and other postretirement liabilities and has been accounted for prospectively as a change in accounting estimate beginning in the first quarter of 2016. The discount rates used to measure the 2016 service and interest cost components of net periodic benefit cost are provided in the table below. Under the previous method the discount rate used for these components of cost would have been 4.2 percent for U.S. pensions, 3.2 percent for non-U.S. pensions and 4.1 percent for other postretirement benefits (OPEB). Compared to the method used in 2015, this change lowered pension and OPEB expense by $45 million and $90 million and increased profit per share by $0.05 and $0.10 for the three and six months ended June 30, 2016 , respectively. U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) June 30 June 30 June 30 2016 2015 2016 2015 2016 2015 For the three months ended: Components of net periodic benefit cost: Service cost $ 29 $ 45 $ 23 $ 28 $ 21 $ 25 Interest cost 130 152 30 36 32 46 Expected return on plan assets (189 ) (224 ) (59 ) (68 ) (11 ) (14 ) Amortization of prior service cost (credit) 1 — — — — (15 ) (14 ) Actuarial loss (gain) — (8 ) — — — — Net periodic benefit cost (benefit) (30 ) (35 ) (6 ) (4 ) 27 43 Curtailments and termination benefits 2 — (19 ) — — — — Total cost (benefit) included in operating profit $ (30 ) $ (54 ) $ (6 ) $ (4 ) $ 27 $ 43 For the six months ended: Components of net periodic benefit cost: Service cost $ 59 $ 91 $ 46 $ 57 $ 41 $ 50 Interest cost 259 303 60 75 65 92 Expected return on plan assets (378 ) (448 ) (117 ) (137 ) (22 ) (28 ) Amortization of prior service cost (credit) 1 — — — — (30 ) (27 ) Actuarial loss (gain) — (8 ) — — — — Net periodic benefit cost (benefit) (60 ) (62 ) (11 ) (5 ) 54 87 Curtailments and termination benefits 2 — (19 ) — — (2 ) — Total cost (benefit) included in operating profit $ (60 ) $ (81 ) $ (11 ) $ (5 ) $ 52 $ 87 Weighted-average assumptions used to determine net cost: Discount rate used to measure service cost 4.5 % 3.8 % 2.9 % 3.3 % 4.4 % 3.9 % Discount rate used to measure interest cost 3.4 % 3.8 % 2.8 % 3.3 % 3.3 % 3.9 % Expected rate of return on plan assets 6.9 % 7.4 % 6.1 % 6.8 % 7.5 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 3.5 % 4.0 % 4.0 % 4.0 % 1 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. 2 Curtailments and termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations. We made $33 million and $96 million of contributions to our pension plans during the three and six months ended June 30, 2016 , respectively. We currently anticipate full-year 2016 contributions of approximately $150 million , all of which are required. We made $36 million and $113 million of contributions to our pension plans during the three and six months ended June 30, 2015 , respectively. B. Defined contribution benefit costs Total company costs related to our defined contribution plans were as follows: Three Months Ended Six Months Ended (Millions of dollars) 2016 2015 2016 2015 U.S. Plans $ 67 $ 74 $ 152 $ 157 Non-U.S. Plans 17 21 35 39 $ 84 $ 95 $ 187 $ 196

Guarantees and Product Warranty

Guarantees and Product Warranty	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Guarantees and Product Warranty	Guarantees and product warranty Caterpillar dealer performance guarantees We have provided an indemnity to a third-party insurance company for potential losses related to performance bonds issued on behalf of Caterpillar dealers. The bonds have varying terms and are issued to insure governmental agencies against nonperformance by certain dealers. We also provided guarantees to third-parties related to the performance of contractual obligations by certain Caterpillar dealers. These guarantees have varying terms and cover potential financial losses incurred by the third-parties resulting from the dealers’ nonperformance. Customer loan guarantees We provide loan guarantees to third-party lenders for financing associated with machinery purchased by customers. These guarantees have varying terms and are secured by the machinery. In addition, Cat Financial participates in standby letters of credit issued to third parties on behalf of their customers. These standby letters of credit have varying terms and beneficiaries and are secured by customer assets. Supplier consortium performance guarantee We have provided a guarantee to one of our customers in Brazil related to the performance of contractual obligations by a supplier consortium to which one of our Caterpillar subsidiaries is a member. The guarantee covers potential damages (some of them capped) incurred by the customer resulting from the supplier consortium’s non-performance. The guarantee will expire when the supplier consortium performs all its contractual obligations, which is expected to be completed in 2025. Third party logistics business lease guarantees We have provided guarantees to third-party lessors for certain properties leased by a third party logistics business, formerly Caterpillar Logistics Services LCC, in which we sold our 35 percent equity interest in the first quarter of 2015 (see Note 6). The guarantees are for the possibility that the third party logistics business would default on real estate lease payments. The guarantees were granted at lease inception and generally will expire at the end of the lease terms. No significant loss has been experienced or is anticipated under any of these guarantees. At both June 30, 2016 and December 31, 2015 , 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 are as follows: (Millions of dollars) June 30, December 31, Caterpillar dealer performance guarantees $ 196 $ 216 Customer loan guarantees 72 47 Supplier consortium performance guarantee 293 286 Third party logistics business lease guarantees 97 107 Other guarantees 25 25 Total guarantees $ 683 $ 681 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 June 30, 2016 and December 31, 2015 , the SPC’s assets of $1,327 million and $1,211 million , respectively, are primarily comprised of loans to dealers and the SPC’s liabilities of $1,327 million and $1,210 million , respectively, are primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial's creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. Our product warranty liability is determined by applying historical claim rate experience to the current field population and dealer inventory. Generally, historical claim rates are based on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). Specific rates are developed for each product shipment month and are updated monthly based on actual warranty claim experience. (Millions of dollars) 2016 Warranty liability, January 1 $ 1,354 Reduction in liability (payments) (424 ) Increase in liability (new warranties) 403 Warranty liability, June 30 $ 1,333 (Millions of dollars) 2015 Warranty liability, January 1 $ 1,426 Reduction in liability (payments) (874 ) Increase in liability (new warranties) 802 Warranty liability, December 31 $ 1,354

Profit Per Share

Profit Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Profit Per Share	Profit per share Computations of profit per share: Three Months Ended Six Months Ended (Dollars in millions except per share data) 2016 2015 2016 2015 Profit for the period (A) 1 $ 550 $ 802 $ 821 $ 2,047 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 584.1 603.2 583.4 604.1 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 4.5 7.5 4.8 7.7 Average common shares outstanding for fully diluted computation (C) 2 588.6 610.7 588.2 611.8 Profit per share of common stock: Assuming no dilution (A/B) $ 0.94 $ 1.33 $ 1.41 $ 3.39 Assuming full dilution (A/C) 2 $ 0.93 $ 1.31 $ 1.40 $ 3.34 Shares outstanding as of June 30 (in millions) 584.2 602.6 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 26,168,384 and 28,919,076 common shares were outstanding for the three and six months ended June 30, 2016 , respectively, which were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. For the three and six months ended June 30, 2015 , there were outstanding SARs and stock options to purchase 22,329,106 common shares which were anti-dilutive. In January 2014, the Board authorized the repurchase of up to $10.0 billion of Caterpillar common stock, which will expire on December 31, 2018. For the three months ended June 30, 2015 , a total of approximately 1.4 million shares of our common stock were repurchased through the open market at an aggregate cost to Caterpillar of $125 million . For the six months ended June 30, 2015 , a total of 6.2 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $525 million . We did not purchase any Caterpillar common stock during the six months ended June 30, 2016. As of June 30, 2016 , approximately $4.5 billion of the $10.0 billion authorization was spent.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) Comprehensive income and its components are presented in the Consolidated Statement of Comprehensive Income. Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Stockholders’ Equity, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Three Months Ended June 30, 2016 Balance at March 31, 2016 $ (1,545 ) $ 39 $ (32 ) $ 45 $ (1,493 ) Other comprehensive income (loss) before reclassifications (103 ) (1 ) (18 ) 10 (112 ) Amounts reclassified from accumulated other comprehensive (income) loss — (9 ) 1 (20 ) (28 ) Other comprehensive income (loss) (103 ) (10 ) (17 ) (10 ) (140 ) Balance at June 30, 2016 $ (1,648 ) $ 29 $ (49 ) $ 35 $ (1,633 ) Three Months Ended June 30, 2015 Balance at March 31, 2015 $ (1,778 ) $ (40 ) $ (109 ) $ 89 $ (1,838 ) Other comprehensive income (loss) before reclassifications 224 — 11 (6 ) 229 Amounts reclassified from accumulated other comprehensive (income) loss — (9 ) 25 (1 ) 15 Other comprehensive income (loss) 224 (9 ) 36 (7 ) 244 Balance at June 30, 2015 $ (1,554 ) $ (49 ) $ (73 ) $ 82 $ (1,594 ) (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Six Months Ended June 30, 2016 Balance at December 31, 2015 $ (1,953 ) $ (69 ) $ (50 ) $ 37 $ (2,035 ) Other comprehensive income (loss) before reclassifications 305 117 (9 ) 16 429 Amounts reclassified from accumulated other comprehensive (income) loss — (19 ) 10 (18 ) (27 ) Other comprehensive income (loss) 305 98 1 (2 ) 402 Balance at June 30, 2016 $ (1,648 ) $ 29 $ (49 ) $ 35 $ (1,633 ) Six Months Ended June 30, 2015 Balance at December 31, 2014 $ (992 ) $ (31 ) $ (119 ) $ 83 $ (1,059 ) Other comprehensive income (loss) before reclassifications (562 ) — (3 ) 2 (563 ) Amounts reclassified from accumulated other comprehensive (income) loss — (18 ) 49 (3 ) 28 Other comprehensive income (loss) (562 ) (18 ) 46 (1 ) (535 ) Balance at June 30, 2015 $ (1,554 ) $ (49 ) $ (73 ) $ 82 $ (1,594 ) The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations is as follows: Three Months Ended June 30 (Millions of dollars) Classification of income (expense) 2016 2015 Pension and other postretirement benefits: Amortization of prior service credit (cost) Note 9 1 $ 15 $ 14 Tax (provision) benefit (6 ) (5 ) Reclassifications net of tax $ 9 $ 9 Derivative financial instruments: Foreign exchange contracts Other income (expense) $ — $ (37 ) Interest rate contracts Interest expense excluding Financial Products (1 ) (1 ) Interest rate contracts Interest expense of Financial Products (1 ) (2 ) Reclassifications before tax (2 ) (40 ) Tax (provision) benefit 1 15 Reclassifications net of tax $ (1 ) $ (25 ) Available-for-sale securities: Realized gain (loss) Other income (expense) $ 30 $ 1 Tax (provision) benefit (10 ) — Reclassifications net of tax $ 20 $ 1 Total reclassifications from Accumulated other comprehensive income (loss) $ 28 $ (15 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. Six Months Ended June 30 (Millions of dollars) Classification of income (expense) 2016 2015 Pension and other postretirement benefits: Amortization of prior service credit (cost) Note 9 1 $ 30 $ 27 Tax (provision) benefit (11 ) (9 ) Reclassifications net of tax $ 19 $ 18 Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (10 ) $ (72 ) Interest rate contracts Interest expense excluding Financial Products (3 ) (3 ) Interest rate contracts Interest expense of Financial Products (3 ) (3 ) Reclassifications before tax (16 ) (78 ) Tax (provision) benefit 6 29 Reclassifications net of tax $ (10 ) $ (49 ) Available-for-sale securities: Realized gain (loss) Other income (expense) $ 27 $ 4 Tax (provision) benefit (9 ) (1 ) Reclassifications net of tax $ 18 $ 3 Total reclassifications from Accumulated other comprehensive income (loss) $ 27 $ (28 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information.

Environmental and legal matters

Environmental and legal matters	6 Months Ended
	Jun. 30, 2016
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 10, 2014, the SEC issued to Caterpillar a subpoena seeking information concerning the Company’s accounting for the goodwill relating to its acquisition of Bucyrus International Inc. in 2011 and related matters. The Company has received additional subpoenas relating to this investigation, and the Company is cooperating with the SEC regarding its ongoing investigation. The Company is unable to predict the outcome or reasonably estimate any potential loss; however, we currently believe that this matter will not have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity. On March 20, 2014, Brazil’s Administrative Council for Economic Defense (CADE) published a Technical Opinion which named 18 companies and over 100 individuals as defendants, including two subsidiaries of Caterpillar Inc., MGE - Equipamentos e Serviços Ferroviários Ltda. (MGE) and Caterpillar Brasil Ltda. The publication of the Technical Opinion opened CADE's official administrative investigation into allegations that the defendants participated in anticompetitive bid activity for the construction and maintenance of metro and train networks in Brazil. While companies cannot be held criminally liable for anticompetitive conduct in Brazil, criminal charges have been brought against two current employees of MGE and one former employee of MGE involving the same conduct alleged by CADE. The Company has responded to all requests for information from the authorities. The Company is unable to predict the outcome or reasonably estimate the potential loss; however, we currently believe that this matter will not have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity. On October 24, 2013, Progress Rail received a grand jury subpoena from the U.S. District Court for the Central District of California. The subpoena requests documents and information from Progress Rail, United Industries Corporation, a wholly-owned subsidiary of Progress Rail, and Caterpillar Inc. relating to allegations that Progress Rail conducted improper or unnecessary railcar inspections and repairs and improperly disposed of parts, equipment, tools and other items. In connection with this subpoena, Progress Rail was informed by the U.S. Attorney for the Central District of California that it is a target of a criminal investigation into potential violations of environmental laws and alleged improper business practices. The Company is cooperating with the authorities and is currently in discussions regarding a potential resolution of the matter. Although the Company believes a loss is probable, we currently believe that this matter will not have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity. In addition, we are involved in other unresolved legal actions that arise in the normal course of business. The most prevalent of these unresolved actions involve disputes related to product design, manufacture and performance liability (including claimed asbestos and welding fumes exposure), contracts, employment issues, environmental matters or intellectual property rights. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal actions is not material. In some cases, we cannot reasonably estimate a range of loss because there is insufficient information regarding the matter. However, we believe there is no more than a remote chance that any liability arising from these matters would be material. Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes The provision for income taxes for the first six months of 2016 reflects an estimated annual tax rate of 25 percent , compared to 29.5 percent for the first six months of 2015 and 25.5 percent for the full-year 2015 excluding a $42 million discrete tax charge. The full-year rate for 2015 of 25.5 percent was lower than the rate for the first six months of 2015, primarily due to changes in the geographic mix of profits from a tax perspective along with the impact of the permanent renewal of the U.S. research and development tax credit in the fourth quarter. On January 30, 2015, we received a Revenue Agent's Report (RAR) from the Internal Revenue Service (IRS) indicating the end of the field examination of our U.S. tax returns for 2007 to 2009 including the impact of a loss carryback to 2005. The RAR proposed tax increases and penalties for these years of approximately $1 billion primarily related to two significant areas that we are vigorously contesting through the IRS Appeals process. In the first area, the IRS has proposed to tax in the United States profits earned from certain parts transactions by one of our non-U.S. subsidiaries, Caterpillar SARL (CSARL), based on the IRS examination team's application of the "substance-over-form" or "assignment-of-income" judicial doctrines. We believe that the relevant transactions complied with applicable tax laws and did not violate judicial doctrines. We have filed U.S. tax returns on this same basis for years after 2009. In the second area, the IRS disallowed approximately $125 million of foreign tax credits that arose as a result of certain financings unrelated to CSARL. Based on the information currently available, we do not anticipate a significant increase or decrease to our unrecognized tax benefits for these matters within the next 12 months. We currently believe the ultimate disposition of these matters will not have a material adverse effect on our consolidated financial position, liquidity or results of operations.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
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 two 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, 2016, we made the following changes to segment reporting. These changes were made to reflect changes in organizational accountabilities and refinements to our internal reporting. • Responsibility for remanufacturing of Cat engines and components and remanufacturing services for other companies moved from the All Other operating segments to Energy & Transportation. • Responsibility for business strategy, product management, development, manufacturing, marketing and product support for forestry and paving products moved from the All Other operating segments to Construction Industries. • Responsibility for business strategy, product management, development, manufacturing, marketing and product support for industrial and waste products moved from the All Other operating segments to Resource Industries. • Responsibility for sales and product support of on-highway vocational trucks for North America moved from the All Other operating segments to Energy & Transportation. • Internal charges for component manufacturing and logistics services provided by All Other operating segments to Construction Industries, Resource Industries and Energy & Transportation in excess of cost have been adjusted to approximate cost, resulting in a reduction in profit in the All Other operating segments and corresponding increases in profit in the other three segments. • Costs that previously had been included in Corporate costs, primarily for company-wide strategies such as information technology and manufacturing process transformation, have been included in the ME&T operating segments that benefit from the costs. Segment information for 2015 has been retrospectively adjusted to conform to the 2016 presentation. B. Description of segments We have six 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, forestry 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, forestry products, paving products and related parts. Inter-segment sales are a source of revenue for this segment. Resource Industries : A segment primarily responsible for supporting customers using machinery in mining, quarry, waste, and material handling 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, landfill compactors, soil compactors, material handlers, continuous miners, scoops and haulers, hardrock continuous mining systems, select work tools, machinery components, electronics and control systems and related parts. In addition to equipment, Resource Industries also develops and sells technology to provide customers fleet management systems, equipment management analytics and autonomous machine capabilities. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing and research and development. Inter-segment sales are a source of revenue for this segment. Energy & Transportation : A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related parts across industries serving power generation, industrial, oil and gas and transportation applications, including marine and rail-related businesses. Responsibilities include business strategy, product design, product management, development, manufacturing, marketing, sales and product support of turbines and turbine-related services, reciprocating engine powered generator sets, integrated systems used in the electric power generation industry, reciprocating engines and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines supplied to the industrial industry as well as Cat machinery; the remanufacturing of Cat engines and components and remanufacturing services for other companies; 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 and product support of on-highway vocational trucks for North America. 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 Cat 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 business strategy, product management, development, and manufacturing of filters and fluids, undercarriage, tires and rims, ground engaging tools, fluid transfer products, precision seals and rubber, and sealing and connecting components primarily for Cat products; 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; digital investments for new customer and dealer solutions that integrate data analytics with state-of-the art digital technologies while transforming the buying experience. 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. • Stock-based compensation expense is not included in segment profit. • 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 43 to 49 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 primarily for compliance and legal functions for the benefit of the entire organization. • Restructuring costs: Primarily costs for employee separation costs, long-lived asset impairments and contract terminations. These costs are included in Other Operating (Income) Expenses. Restructuring costs also include other exit-related costs primarily for accelerated depreciation, equipment relocation, inventory write-downs and sales discounts and payments to dealers and customers related to discontinued products. A table, Reconciliation of Restructuring costs on page 46, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 18 for more information. • Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting. • Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, certain costs are reported on the cash basis for segment reporting and the accrual basis for consolidated external reporting. Reportable Segments Three Months Ended June 30 (Millions of dollars) 2016 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at June 30 Capital expenditures Construction Industries $ 4,426 $ 12 $ 4,438 $ 116 $ 550 $ 5,515 $ 40 Resource Industries 1,457 57 1,514 153 (163 ) 8,193 59 Energy & Transportation 3,750 658 4,408 169 602 8,161 96 Machinery, Energy & Transportation $ 9,633 $ 727 $ 10,360 $ 438 $ 989 $ 21,869 $ 195 Financial Products Segment 759 — 759 213 202 37,001 612 Total $ 10,392 $ 727 $ 11,119 $ 651 $ 1,191 $ 58,870 $ 807 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 4,803 $ 26 $ 4,829 $ 140 $ 588 $ 6,176 $ 54 Resource Industries 2,048 75 2,123 150 27 8,931 44 Energy & Transportation 4,708 766 5,474 171 942 8,769 227 Machinery, Energy & Transportation $ 11,559 $ 867 $ 12,426 $ 461 $ 1,557 $ 23,876 $ 325 Financial Products Segment 785 — 785 213 184 35,729 342 Total $ 12,344 $ 867 $ 13,211 $ 674 $ 1,741 $ 59,605 $ 667 Reportable Segments Six Months Ended June 30 (Millions of dollars) 2016 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment Capital expenditures Construction Industries $ 8,469 $ 20 $ 8,489 $ 229 $ 990 $ 5,515 $ 68 Resource Industries 2,906 128 3,034 308 (259 ) 8,193 94 Energy & Transportation 7,028 1,290 8,318 335 1,012 8,161 243 Machinery, Energy & Transportation $ 18,403 $ 1,438 $ 19,841 $ 872 $ 1,743 $ 21,869 $ 405 Financial Products Segment 1,502 — 1,502 418 370 37,001 909 Total $ 19,905 $ 1,438 $ 21,343 $ 1,290 $ 2,113 $ 58,870 $ 1,314 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 9,817 $ 49 $ 9,866 $ 280 $ 1,333 $ 6,176 $ 94 Resource Industries 4,019 162 4,181 297 123 8,931 79 Energy & Transportation 9,623 1,560 11,183 338 1,966 8,769 386 Machinery, Energy & Transportation $ 23,459 $ 1,771 $ 25,230 $ 915 $ 3,422 $ 23,876 $ 559 Financial Products Segment 1,580 — 1,580 428 411 35,729 636 Total $ 25,039 $ 1,771 $ 26,810 $ 1,343 $ 3,833 $ 59,605 $ 1,195 Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended June 30, 2016 Total external sales and revenues from reportable segments $ 9,633 $ 759 $ — $ 10,392 All Other operating segments 41 — — 41 Other (29 ) 19 (81 ) 1 (91 ) Total sales and revenues $ 9,645 $ 778 $ (81 ) $ 10,342 Three Months Ended June 30, 2015 Total external sales and revenues from reportable segments $ 11,559 $ 785 $ — $ 12,344 All Other operating segments 55 — — 55 Other (31 ) 20 (71 ) 1 (82 ) Total sales and revenues $ 11,583 $ 805 $ (71 ) $ 12,317 1 Elimination of Financial Products revenues from Machinery, Energy & Transportation. Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Six Months Ended June 30, 2016 Total external sales and revenues from reportable segments $ 18,403 $ 1,502 $ — $ 19,905 All Other operating segments 79 — — 79 Other (57 ) 35 (159 ) 1 (181 ) Total sales and revenues $ 18,425 $ 1,537 $ (159 ) $ 19,803 Six Months Ended June 30, 2015 Total external sales and revenues from reportable segments $ 23,459 $ 1,580 $ — $ 25,039 All Other operating segments 127 — — 127 Other (42 ) 38 (143 ) 1 (147 ) Total sales and revenues $ 23,544 $ 1,618 $ (143 ) $ 25,019 1 Elimination of Financial Products revenues from Machinery, Energy & Transportation. Reconciliation of Consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended June 30, 2016 Total profit from reportable segments $ 989 $ 202 $ 1,191 All Other operating segments (14 ) — (14 ) Cost centers 14 — 14 Corporate costs (149 ) — (149 ) Timing 9 — 9 Restructuring costs (137 ) (2 ) (139 ) Methodology differences: Inventory/cost of sales (16 ) — (16 ) Postretirement benefit expense 56 — 56 Stock-based compensation expense (43 ) (2 ) (45 ) Financing costs (132 ) — (132 ) Equity in (profit) loss of unconsolidated affiliated companies (2 ) — (2 ) Currency 28 — 28 Other income/expense methodology differences (54 ) — (54 ) Other methodology differences (9 ) 1 (8 ) Total consolidated profit before taxes $ 540 $ 199 $ 739 Three Months Ended June 30, 2015 Total profit from reportable segments $ 1,557 $ 184 $ 1,741 All Other operating segments (18 ) — (18 ) Cost centers (10 ) — (10 ) Corporate costs (175 ) — (175 ) Timing (41 ) — (41 ) Restructuring costs (86 ) — (86 ) Methodology differences: — Inventory/cost of sales 27 — 27 Postretirement benefit expense 82 — 82 Stock-based compensation expense (55 ) (3 ) (58 ) Financing costs (130 ) — (130 ) Equity in (profit) loss of unconsolidated affiliated companies (2 ) — (2 ) Currency (132 ) — (132 ) Other income/expense methodology differences (56 ) — (56 ) Other methodology differences (10 ) 4 (6 ) Total consolidated profit before taxes $ 951 $ 185 $ 1,136 Reconciliation of Consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Six Months Ended June 30, 2016 Total profit from reportable segments $ 1,743 $ 370 $ 2,113 All Other operating segments (21 ) — (21 ) Cost centers 39 — 39 Corporate costs (308 ) — (308 ) Timing 41 — 41 Restructuring costs (296 ) (4 ) (300 ) Methodology differences: Inventory/cost of sales (19 ) — (19 ) Postretirement benefit expense 111 — 111 Stock-based compensation expense (140 ) (6 ) (146 ) Financing costs (267 ) — (267 ) Currency (12 ) — (12 ) Other income/expense methodology differences (110 ) — (110 ) Other methodology differences (23 ) 6 (17 ) Total consolidated profit before taxes $ 738 $ 366 $ 1,104 Six Months Ended June 30, 2015 Total profit from reportable segments $ 3,422 $ 411 $ 3,833 All Other operating segments (25 ) — (25 ) Cost centers 8 — 8 Corporate costs (315 ) — (315 ) Timing (22 ) — (22 ) Restructuring costs (121 ) — (121 ) Methodology differences: Inventory/cost of sales (8 ) — (8 ) Postretirement benefit expense 151 — 151 Stock-based compensation expense (184 ) (9 ) (193 ) Financing costs (266 ) — (266 ) Equity in (profit) loss of unconsolidated affiliated companies (4 ) — (4 ) Currency (122 ) — (122 ) Other income/expense methodology differences 3 — 3 Other methodology differences (28 ) 12 (16 ) Total consolidated profit before taxes $ 2,489 $ 414 $ 2,903 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 Three Months Ended June 30, 2016 Construction Industries $ 550 $ (3 ) $ 547 Resource Industries (163 ) (69 ) (232 ) Energy & Transportation 602 (55 ) 547 Financial Products Segment 202 (2 ) 200 All Other operating segments (14 ) (9 ) (23 ) Total $ 1,177 $ (138 ) $ 1,039 Three Months Ended June 30, 2015 Construction Industries $ 588 $ (32 ) $ 556 Resource Industries 27 (36 ) (9 ) Energy & Transportation 942 (11 ) 931 Financial Products Segment 184 — 184 All Other operating segments (18 ) (2 ) (20 ) Total $ 1,723 $ (81 ) $ 1,642 Reconciliation of Restructuring costs: (Millions of dollars) Segment profit Restructuring costs Segment profit with restructuring costs Six Months Ended June 30, 2016 Construction Industries $ 990 $ (25 ) $ 965 Resource Industries (259 ) (94 ) (353 ) Energy & Transportation 1,012 (155 ) 857 Financial Products Segment 370 (4 ) 366 All Other operating segments (21 ) (14 ) (35 ) Total $ 2,092 $ (292 ) $ 1,800 Six Months Ended June 30, 2015 Construction Industries $ 1,333 $ (55 ) $ 1,278 Resource Industries 123 (44 ) 79 Energy & Transportation 1,966 (14 ) 1,952 Financial Products Segment 411 — 411 All Other operating segments (25 ) (3 ) (28 ) Total $ 3,808 $ (116 ) $ 3,692 Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total June 30, 2016 Total assets from reportable segments $ 21,869 $ 37,001 $ — $ 58,870 All Other operating segments 1,346 — — 1,346 Items not included in segment assets: Cash and short-term investments 5,579 — — 5,579 Intercompany receivables 1,985 — (1,985 ) — Investment in Financial Products 4,253 — (4,253 ) — Deferred income taxes 3,223 — (774 ) 2,449 Goodwill and intangible assets 4,026 — — 4,026 Property, plant and equipment – net and other assets 2,038 — — 2,038 Operating lease methodology difference (178 ) — — (178 ) Inventory methodology differences (2,303 ) — — (2,303 ) Intercompany loan included in Financial Products' assets — — (1,000 ) (1,000 ) Liabilities included in segment assets 7,927 — — 7,927 Other (351 ) (33 ) (70 ) (454 ) Total assets $ 49,414 $ 36,968 $ (8,082 ) $ 78,300 December 31, 2015 Total assets from reportable segments $ 23,876 $ 35,729 $ — $ 59,605 All Other operating segments 1,405 — — 1,405 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 ) — Deferred income taxes 3,208 — (793 ) 2,415 Goodwill and intangible assets 3,571 — — 3,571 Property, plant and equipment – net and other assets 1,585 — — 1,585 Operating lease methodology difference (213 ) — — (213 ) Inventory methodology differences (2,646 ) — — (2,646 ) Liabilities included in segment assets 8,017 — — 8,017 Other (567 ) (93 ) (77 ) (737 ) Total assets $ 48,551 $ 35,636 $ (5,845 ) $ 78,342 Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended June 30, 2016 Total depreciation and amortization from reportable segments $ 438 $ 213 $ 651 Items not included in segment depreciation and amortization: All Other operating segments 53 — 53 Cost centers 38 — 38 Other 2 10 12 Total depreciation and amortization $ 531 $ 223 $ 754 Three Months Ended June 30, 2015 Total depreciation and amortization from reportable segments $ 461 $ 213 $ 674 Items not included in segment depreciation and amortization: All Other operating segments 51 — 51 Cost centers 38 — 38 Other (10 ) 8 (2 ) Total depreciation and amortization $ 540 $ 221 $ 761 Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Six Months Ended June 30, 2016 Total depreciation and amortization from reportable segments $ 872 $ 418 $ 1,290 Items not included in segment depreciation and amortization: All Other operating segments 105 — 105 Cost centers 78 — 78 Other 1 20 21 Total depreciation and amortization $ 1,056 $ 438 $ 1,494 Six Months Ended June 30, 2015 Total depreciation and amortization from reportable segments $ 915 $ 428 $ 1,343 Items not included in segment depreciation and amortization: All Other operating segments 100 — 100 Cost centers 75 — 75 Other (20 ) 16 (4 ) Total depreciation and amortization $ 1,070 $ 444 $ 1,514 Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended June 30, 2016 Total capital expenditures from reportable segments $ 195 $ 612 $ — $ 807 Items not included in segment capital expenditures: All Other operating segments 51 — — 51 Cost centers 16 — — 16 Other (23 ) 22 (8 ) (9 ) Total capital expenditures $ 239 $ 634 $ (8 ) $ 865 Three Months Ended June 30, 2015 Total capital expenditures from reportable segments $ 325 $ 342 $ — $ 667 Items not included in segment capital expenditures: All Other operating segments 28 — — 28 Cost centers 27 — — 27 Timing (19 ) — — (19 ) Other (79 ) 32 (11 ) (58 ) Total capital expenditures $ 282 $ 374 $ (11 ) $ 645 Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Six Months Ended June 30, 2016 Total capital expenditures from reportable segments $ 405 $ 909 $ — $ 1,314 Items not included in segment capital expenditures: All Other operating segments 67 — — 67 Cost centers 28 — — 28 Timing 217 — — 217 Other (99 ) 95 (17 ) (21 ) Total capital expenditures $ 618 $ 1,004 $ (17 ) $ 1,605 Six Months Ended June 30, 2015 Total capital expenditures from reportable segments $ 559 $ 636 $ — $ 1,195 Items not included in segment capital expenditures: All Other operating segments 53 — — 53 Cost centers 46 — — 46 Timing 234 — — 234 Other (133 ) 95 (19 ) (57 ) Total capital expenditures $ 759 $ 731 $ (19 ) $ 1,471

Cat Financial Financing Activit

Cat Financial Financing Activities	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Cat Financial Financing Activities	Cat Financial financing activities 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) June 30, 2016 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 327 $ 9 $ 336 Receivables written off (79 ) — (79 ) Recoveries on receivables previously written off 15 — 15 Provision for credit losses 64 1 65 Other 7 — 7 Balance at end of period $ 334 $ 10 $ 344 Individually evaluated for impairment $ 69 $ — $ 69 Collectively evaluated for impairment 265 10 275 Ending Balance $ 334 $ 10 $ 344 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 676 $ — $ 676 Collectively evaluated for impairment 18,870 3,666 22,536 Ending Balance $ 19,546 $ 3,666 $ 23,212 (Millions of dollars) December 31, 2015 Allowance for Credit Losses: Customer Dealer Total 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 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. June 30, 2016 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 64 $ 18 $ 70 $ 152 $ 7,968 $ 8,120 $ 8 Europe 18 9 79 106 2,381 2,487 46 Asia Pacific 29 12 26 67 1,567 1,634 8 Mining 8 4 72 84 1,765 1,849 10 Latin America 57 27 305 389 1,956 2,345 — Caterpillar Power Finance 20 17 39 76 3,035 3,111 1 Dealer North America — — — — 2,304 2,304 — Europe — — — — 126 126 — Asia Pacific — — — — 585 585 — Mining — — — — 4 4 — Latin America — — — — 645 645 — Caterpillar Power Finance — — — — 2 2 — Total $ 196 $ 87 $ 591 $ 874 $ 22,338 $ 23,212 $ 73 December 31, 2015 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 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 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 June 30, 2016 or December 31, 2015 , 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: June 30, 2016 December 31, 2015 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Impaired Finance Receivables With No Allowance Recorded North America $ 33 $ 33 $ — $ 12 $ 12 $ — Europe 49 48 — 41 41 — Asia Pacific — — — 1 1 — Mining 81 81 — 84 84 — Latin America 38 38 — 28 28 — Caterpillar Power Finance 280 279 — 242 241 — Total $ 481 $ 479 $ — $ 408 $ 407 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 33 $ 31 $ 11 $ 14 $ 13 $ 4 Europe 12 11 7 11 10 5 Asia Pacific 36 36 5 34 34 4 Mining 10 10 3 11 11 3 Latin America 61 61 27 53 53 21 Caterpillar Power Finance 43 43 16 70 70 28 Total $ 195 $ 192 $ 69 $ 193 $ 191 $ 65 Total Impaired Finance Receivables North America $ 66 $ 64 $ 11 $ 26 $ 25 $ 4 Europe 61 59 7 52 51 5 Asia Pacific 36 36 5 35 35 4 Mining 91 91 3 95 95 3 Latin America 99 99 27 81 81 21 Caterpillar Power Finance 323 322 16 312 311 28 Total $ 676 $ 671 $ 69 $ 601 $ 598 $ 65 Three Months Ended Three Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded North America $ 24 $ 1 $ 12 $ — Europe 44 — 42 — Asia Pacific 3 — 2 — Mining 80 — 80 1 Latin America 29 — 32 — Caterpillar Power Finance 273 2 176 1 Total $ 453 $ 3 $ 344 $ 2 Impaired Finance Receivables With An Allowance Recorded North America $ 25 $ — $ 6 $ — Europe 12 — 15 1 Asia Pacific 36 1 41 1 Mining 13 — 62 — Latin America 57 — 51 — Caterpillar Power Finance 45 1 132 1 Total $ 188 $ 2 $ 307 $ 3 Total Impaired Finance Receivables North America $ 49 $ 1 $ 18 $ — Europe 56 — 57 1 Asia Pacific 39 1 43 1 Mining 93 — 142 1 Latin America 86 — 83 — Caterpillar Power Finance 318 3 308 2 Total $ 641 $ 5 $ 651 $ 5 Six Months Ended Six Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded Customer North America $ 19 $ 1 $ 13 $ — Europe 43 — 43 — Asia Pacific 2 — 2 — Mining 80 1 87 3 Latin America 29 — 32 — Caterpillar Power Finance 262 5 151 2 Total $ 435 $ 7 $ 328 $ 5 Impaired Finance Receivables With An Allowance Recorded Customer North America $ 20 $ — $ 6 $ — Europe 12 — 14 1 Asia Pacific 35 2 34 1 Mining 12 — 66 1 Latin America 54 1 49 1 Caterpillar Power Finance 53 1 131 1 Total $ 186 $ 4 $ 300 $ 5 Total Impaired Finance Receivables Customer North America $ 39 $ 1 $ 19 $ — Europe 55 — 57 1 Asia Pacific 37 2 36 1 Mining 92 1 153 4 Latin America 83 1 81 1 Caterpillar Power Finance 315 6 282 3 Total $ 621 $ 11 $ 628 $ 10 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 June 30, 2016 and December 31, 2015 , there were no finance receivables on non-accrual status for the Dealer portfolio segment. The investment in customer finance receivables on non-accrual status was as follows: (Millions of dollars) June 30, 2016 December 31, 2015 North America $ 70 $ 31 Europe 33 39 Asia Pacific 18 15 Mining 122 106 Latin America 311 217 Caterpillar Power Finance 59 77 Total $ 613 $ 485 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. As of June 30, 2016 and December 31, 2015, there were $12 million and $3 million , respectively, of additional funds committed to lend to a borrower whose terms have been modified in a TDR. There were no finance receivables modified as TDRs during the three and six months ended June 30, 2016 or 2015 for the Dealer portfolio segment. Finance receivables in the Customer portfolio segment modified as TDRs during the three and six months ended June 30, 2016 and 2015 , were as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Millions of dollars) Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 2 $ 6 $ 6 1 $ — $ — Europe 3 11 8 19 2 2 Asia Pacific — — — 20 25 25 Mining 1 10 5 — — — Latin America 88 12 13 — — — Caterpillar Power Finance 26 144 137 2 21 21 Total 120 $ 183 $ 169 42 $ 48 $ 48 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 13 $ 16 $ 16 4 $ 1 $ 1 Europe 3 11 8 19 2 2 Asia Pacific 4 3 3 20 25 25 Mining 1 10 5 — — — Latin America 90 12 13 — — — Caterpillar Power Finance 30 183 164 4 104 101 Total 141 $ 235 $ 209 47 $ 132 $ 129 TDRs in the Customer portfolio segment with a payment default during the three and six months ended June 30, 2016 and 2015 , which had been modified within twelve months prior to the default date, were as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Millions of dollars) Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 9 $ 3 1 $ — Latin America 1 — — — Total 10 $ 3 1 $ — Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 13 $ 3 5 $ 1 Europe 13 1 — — Asia Pacific 3 — — — Latin America 2 — 1 — Total 31 $ 4 6 $ 1

Fair Value Disclosures

Fair Value Disclosures	6 Months Ended
	Jun. 30, 2016
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. Investments in debt and equity securities Investments in certain debt and equity securities, primarily at Insurance Services, have been classified as available-for-sale and recorded at fair value. 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. 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. In addition, Insurance Services has an equity investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment. See Note 8 for additional information on our investments in debt and equity securities. Derivative financial instruments The fair value of interest rate swap derivatives is primarily based on models that utilize the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency and commodity forward, option and cross currency contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of June 30, 2016 and December 31, 2015 are summarized below: June 30, 2016 (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 — 70 — 70 Corporate bonds Corporate bonds — 734 — 734 Asset-backed securities — 137 — 137 Mortgage-backed debt securities U.S. governmental agency — 300 — 300 Residential — 11 — 11 Commercial — 58 — 58 Equity securities Large capitalization value 288 — — 288 Smaller company growth 55 — — 55 Total available-for-sale securities 352 1,310 — 1,662 REIT — — 64 64 Derivative financial instruments, net — 59 — 59 Total Assets $ 352 $ 1,369 $ 64 $ 1,785 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 Smaller company growth 54 — — 54 Total available-for-sale securities 336 1,274 — 1,610 REIT — — 25 25 Derivative financial instruments, net — 49 — 49 Total Assets $ 336 $ 1,323 $ 25 $ 1,684 The fair value of our REIT investment is measured based on NAV, which is considered a Level 3 input. A roll-forward for the six months ended June 30, 2016 of our REIT investment, which was purchased during the fourth quarter of 2015, is as follows. (Millions of dollars) REIT Balance at December 31, 2015 $ 25 Purchases of securities 38 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) 1 Balance at June 30, 2016 $ 64 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 $81 million and $91 million as of June 30, 2016 and December 31, 2015 , respectively. B. Fair values of financial instruments In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair value measurements section above, we used the following methods and assumptions to estimate the fair value of our financial instruments: Cash and short-term investments Carrying amount approximated fair value. Restricted cash and short-term investments Carrying amount approximated fair value. Restricted cash and short-term investments are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Finance receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Wholesale inventory receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Short-term borrowings Carrying amount approximated fair value. Long-term debt Fair value for fixed and floating rate debt was estimated based on quoted market prices. Guarantees The fair value of guarantees is based upon our estimate of the premium a market participant would require to issue the same guarantee in a stand-alone arms-length transaction with an unrelated party. If quoted or observable market prices are not available, fair value is based upon internally developed models that utilize current market-based assumptions. Please refer to the table below for the fair values of our financial instruments. Fair Value of Financial Instruments June 30, 2016 December 31, 2015 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 6,764 $ 6,764 $ 6,460 $ 6,460 1 Restricted cash and short-term investments 45 45 52 52 1 Investments in debt and equity securities 1,726 1,726 1,635 1,635 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 16,777 16,809 16,515 16,551 3 Note 16 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,761 1,724 1,821 1,775 3 Note 16 Foreign currency contracts – net 11 11 13 13 2 Note 4 Interest rate swaps – net 46 46 48 48 2 Note 4 Commodity contracts – net 2 2 — — 2 Note 4 Liabilities Short-term borrowings 7,483 7,483 6,967 6,967 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,489 11,531 9,477 10,691 2 Financial Products 21,351 21,954 21,569 21,904 2 Commodity contracts – net — — 12 12 2 Note 4 Guarantees 12 12 12 12 3 Note 10 1 Total excluded items have a net carrying value at June 30, 2016 and December 31, 2015 of $6,416 million and $6,452 million , respectively.

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jun. 30, 2016
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 the three and six months ended June 30, 2016 and 2015 were as follows: (Millions of dollars) Three Months Ended June 30 2016 2015 Employee separations 1 $ 45 $ 86 Contract terminations 1 36 — Long-lived asset impairments 1 14 — Other 2 44 — Total restructuring costs $ 139 $ 86 Six Months Ended June 30 2016 2015 Employee separations 1 $ 76 $ 120 Contract terminations 1 46 — Long-lived asset impairments 1 96 1 Other 2 82 — Total restructuring costs $ 300 $ 121 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, equipment relocation and inventory write-downs and were recognized primarily in Cost of goods sold. The restructuring costs in 2016 were related to our decision to discontinue production of on-highway vocational trucks and other restructuring actions across the company, most of which were related to our September 2015 announcement regarding significant restructuring and cost reduction actions to lower our operating costs in response to weak economic and business conditions. For the first six months of 2015, the restructuring costs were related to several restructuring programs across the company. Restructuring costs for the year ended December 31, 2015 were $898 million which included $641 million of employee separation costs, $127 million of long-lived asset impairments and $82 million of defined benefit retirement plan curtailment 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 restructuring costs in 2015 were related to several restructuring programs across the company. Restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. See Note 15 for more information. The following table summarizes the 2015 and 2016 employee separation activity: (Millions of dollars) Total 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 Increase in liability (separation charges) 76 Reduction in liability (payments) (440 ) Liability balance at June 30, 2016 $ 119 As part of our September 2015 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. As of December 31, 2015, we incurred $379 million of employee separation costs and $82 million of defined benefit retirement plan curtailment losses related to these programs. Additionally, for the three and six months ended June 30, 2016 we incurred $45 million and $76 million of employee separation costs, respectively. Substantially all of the employee separation costs included in the December 31, 2015 liability balance were paid in the first quarter of 2016. The majority of the June 30, 2016 liability balance is expected to be paid in 2016. In February 2016, we made the decision to discontinue production of on-highway vocational trucks. Based on the business climate in the truck industry and a thorough evaluation of the business, the company decided it would withdraw from this market. We estimate restructuring costs incurred under the restructuring plan to be $120 million . For the three and six months ended June 30, 2016, we recognized $8 million and $82 million , respectively, of restructuring costs primarily for long-lived asset impairments related to this restructuring plan. The remaining costs are expected to be recognized in 2016.

Derivative Financial Instrume28

Derivative Financial Instruments and Risk Management (Policies)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Risk Management Policy	Foreign Currency Exchange Rate Risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our Machinery, Energy & Transportation operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to five years. As of June 30, 2016 , the maximum term of these outstanding contracts was approximately 51 months . We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, euro, Indian rupee, Japanese yen, Mexican peso, 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 June 30, 2016 , $5 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings (Other income (expense) in the Consolidated Statement of Results of Operations) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions, and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our receivables and debt, and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward, option and cross currency contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed rate intercompany loans. 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 June 30, 2016 , $4 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Machinery, Energy & Transportation forward rate agreements, are expected to be reclassified to current earnings (Interest expense excluding Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate) of Cat Financial’s debt portfolio with the interest rate profile of their receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate swaps to meet the match-funding objective. We designate fixed-to-floating interest rate swaps as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate swaps as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. As of June 30, 2016 , less than $1 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), related to Financial Products floating-to-fixed interest rate swaps, are expected to be reclassified to current earnings (Interest expense of Financial Products in the Consolidated Statement of Results of Operations) over the next twelve months. The actual amount recorded in Interest expense of Financial Products will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate swaps at both Machinery, Energy & Transportation and Financial Products. The gains or losses associated with these swaps at the time of liquidation are amortized into earnings over the original term of the previously designated hedged item. Commodity Price Risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw material. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our Machinery, Energy & Transportation operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five -year horizon. All such commodity forward and option contracts are undesignated.

Nature of Operations, Basis o29

Nature of Operations, Basis of Presentation and Change in Accounting Principle (Tables)	6 Months Ended
	Jun. 30, 2016
Nature of Operations and Basis of Presentation [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: (Millions of dollars) June 30, 2016 December 31, 2015 Receivables - trade and other $ 39 $ 19 Receivables - finance 209 466 Long-term receivables - finance 262 62 Other assets 35 35 Guarantees 213 175 Total $ 758 $ 757
Schedule of Change in Accounting Principle	Following are the changes to financial statement line items as a result of the accounting principle change for the periods presented in the accompanying unaudited consolidated financial statements: Consolidated Statement of Results of Operations (Dollars in millions except per share data) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Cost of goods sold $ 7,419 $ 7,480 $ (61 ) $ 8,674 $ 8,762 $ (88 ) Selling, general and administrative expenses $ 1,123 $ 1,156 $ (33 ) $ 1,318 $ 1,389 $ (71 ) Research and development expenses $ 468 $ 479 $ (11 ) $ 510 $ 532 $ (22 ) Other operating (income) expenses $ 399 $ 399 $ — $ 334 $ 356 $ (22 ) Total operating costs $ 9,557 $ 9,662 $ (105 ) $ 10,984 $ 11,187 $ (203 ) Operating profit $ 785 $ 680 $ 105 $ 1,333 $ 1,130 $ 203 Other income (expense) $ 84 $ 43 $ 41 $ (72 ) $ (13 ) $ (59 ) Consolidated profit before taxes $ 739 $ 593 $ 146 $ 1,136 $ 992 $ 144 Provision for income taxes $ 184 $ 136 $ 48 $ 335 $ 283 $ 52 Profit of consolidated companies $ 555 $ 457 $ 98 $ 801 $ 709 $ 92 Profit of consolidated and affiliated companies $ 553 $ 455 $ 98 $ 803 $ 711 $ 92 Profit $ 550 $ 452 $ 98 $ 802 $ 710 $ 92 Profit per common share $ 0.94 $ 0.77 $ 0.17 $ 1.33 $ 1.18 $ 0.15 Profit per common share - diluted $ 0.93 $ 0.77 $ 0.16 $ 1.31 $ 1.16 $ 0.15 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Cost of goods sold $ 14,241 $ 14,361 $ (120 ) $ 17,434 $ 17,605 $ (171 ) Selling, general and administrative expenses $ 2,211 $ 2,280 $ (69 ) $ 2,567 $ 2,707 $ (140 ) Research and development expenses $ 976 $ 997 $ (21 ) $ 1,034 $ 1,078 $ (44 ) Other operating (income) expenses $ 796 $ 796 $ — $ 651 $ 674 $ (23 ) Total operating costs $ 18,524 $ 18,734 $ (210 ) $ 21,984 $ 22,362 $ (378 ) Operating profit $ 1,279 $ 1,069 $ 210 $ 3,035 $ 2,657 $ 378 Other income (expense) $ 84 $ 47 $ 37 $ 122 $ 144 $ (22 ) Consolidated profit before taxes $ 1,104 $ 857 $ 247 $ 2,903 $ 2,547 $ 356 Provision for income taxes $ 276 $ 197 $ 79 $ 856 $ 726 $ 130 Profit of consolidated companies $ 828 $ 660 $ 168 $ 2,047 $ 1,821 $ 226 Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 $ 2,051 $ 1,825 $ 226 Profit $ 821 $ 653 $ 168 $ 2,047 $ 1,821 $ 226 Profit per common share $ 1.41 $ 1.12 $ 0.29 $ 3.39 $ 3.01 $ 0.38 Profit per common share - diluted $ 1.40 $ 1.11 $ 0.29 $ 3.34 $ 2.98 $ 0.36 Consolidated Statement of Comprehensive Income (Dollars in millions) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 553 $ 455 $ 98 $ 803 $ 711 $ 92 Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax $ — $ — $ — $ — $ 19 $ (19 ) Amortization of actuarial (gain) loss, net of tax $ — $ 79 $ (79 ) $ — $ 109 $ (109 ) Total other comprehensive income (loss), net of tax $ (140 ) $ (61 ) $ (79 ) $ 236 $ 364 $ (128 ) Comprehensive income $ 413 $ 394 $ 19 $ 1,039 $ 1,075 $ (36 ) Comprehensive income attributable to stockholders $ 410 $ 391 $ 19 $ 1,046 $ 1,082 $ (36 ) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 As Reported Previous Accounting Method Effect of Accounting Change Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 $ 2,051 $ 1,825 $ 226 Foreign currency translation, net of tax $ 305 $ 308 $ (3 ) $ (570 ) $ (575 ) $ 5 Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax $ — $ (3 ) $ 3 $ — $ 24 $ (24 ) Amortization of actuarial (gain) loss, net of tax $ — $ 158 $ (158 ) $ — $ 218 $ (218 ) Total other comprehensive income (loss), net of tax $ 402 $ 560 $ (158 ) $ (543 ) $ (306 ) $ (237 ) Comprehensive income $ 1,227 $ 1,217 $ 10 $ 1,508 $ 1,519 $ (11 ) Comprehensive income attributable to stockholders $ 1,223 $ 1,213 $ 10 $ 1,512 $ 1,523 $ (11 ) Consolidated Statement of Financial Position (Dollars in millions) June 30, 2016 As Reported Previous Accounting Method Effect of Accounting Change Noncurrent deferred and refundable income taxes $ 2,536 $ 2,543 $ (7 ) Liability for postemployment benefits $ 8,533 $ 8,550 $ (17 ) Profit employed in the business $ 29,167 $ 33,961 $ (4,794 ) Accumulated other comprehensive income (loss) $ (1,633 ) $ (6,437 ) $ 4,804 December 31, 2015 Recast Previously Reported Effect of Accounting Change Profit employed in the business $ 29,246 $ 34,208 $ (4,962 ) Accumulated other comprehensive income (loss) $ (2,035 ) $ (6,997 ) $ 4,962 Consolidated Statement of Changes in Stockholders' Equity (Dollars in millions) Six Months Ended June 30, 2016 As Reported Previous Accounting Method Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 Foreign currency translation, net of tax $ 305 $ 308 $ (3 ) Pension and other postretirement benefits, net of tax $ 98 $ 253 $ (155 ) Balance at June 30, 2016 $ 15,303 $ 15,293 $ 10 Six Months Ended June 30, 2015 Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 2,051 $ 1,825 $ 226 Foreign currency translation, net of tax $ (570 ) $ (575 ) $ 5 Pension and other postretirement benefits, net of tax $ (18 ) $ 224 $ (242 ) Balance at June 30, 2015 $ 17,150 $ 17,161 $ (11 ) Consolidated Statement of Cash Flow (Millions of dollars) Six Months Ended June 30, 2016 Cash flow from operating activities: As Reported Previous Accounting Method Effect of Accounting Change Profit of consolidated and affiliated companies $ 825 $ 657 $ 168 Adjustments for non-cash items: Other $ 368 $ 405 $ (37 ) Other assets – net $ (127 ) $ (206 ) $ 79 Other liabilities – net $ (197 ) $ 13 $ (210 ) Six Months Ended June 30, 2015 Cash flow from operating activities: Recast Previously Reported Effect of Accounting Change Profit of consolidated and affiliated companies $ 2,051 $ 1,825 $ 226 Adjustments for non-cash items: Other $ 142 $ 120 $ 22 Other assets – net $ 215 $ 85 $ 130 Other liabilities – net $ (179 ) $ 199 $ (378 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of type and fair value of the stock-based compensation awards granted during the period	The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2016 and 2015 , respectively: Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Stock options 4,243,272 $ 20.64 $ 74.77 7,939,497 $ 23.61 $ 83.34 RSUs 1,085,505 $ 68.04 $ 74.77 1,690,661 $ 77.55 $ 83.02 PRSUs 614,347 $ 64.71 $ 74.77 132,068 $ 77.47 $ 82.90
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 six months ended June 30, 2016 and 2015 , respectively: Grant Year 2016 2015 Weighted-average dividend yield 3.23% 2.27% Weighted-average volatility 31.1% 28.4% Range of volatilities 22.5-33.4% 19.9-35.9% Range of risk-free interest rates 0.62-1.73% 0.22-2.08% Weighted-average expected lives 8 years 8 years

Derivative Financial Instrume31

Derivative Financial Instruments and Risk Management (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position are as follows: (Millions of dollars) Consolidated Statement of Financial Asset (Liability) Fair Value Position Location June 30, 2016 December 31, 2015 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 45 $ 12 Machinery, Energy & Transportation Accrued expenses (54 ) (25 ) Machinery, Energy & Transportation Other liabilities (7 ) — Financial Products Long-term receivables – trade and other 8 — Financial Products Accrued expenses (2 ) — Interest rate contracts Financial Products Receivables – trade and other — 1 Financial Products Long-term receivables – trade and other 50 51 Financial Products Accrued expenses (4 ) (4 ) $ 36 $ 35 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 4 $ 2 Machinery, Energy & Transportation Accrued expenses (6 ) (9 ) Financial Products Receivables – trade and other 6 3 Financial Products Long-term receivables – trade and other 26 36 Financial Products Accrued expenses (9 ) (6 ) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 4 — Machinery, Energy & Transportation Accrued expenses (2 ) (12 ) $ 23 $ 14
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments are as follows: (Millions of dollars) June 30, 2016 December 31, 2015 Machinery, Energy & Transportation $ 2,442 $ 2,040 Financial Products $ 4,222 $ 3,539
Effect of derivatives designated as hedging instruments on Consolidated Statement of Results of Operations	The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: Fair Value Hedges Three Months Ended Three Months Ended (Millions of dollars) Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ (3 ) $ 3 $ (13 ) $ 12 $ (3 ) $ 3 $ (13 ) $ 12 Six Months Ended Six Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Financial Products Other income (expense) $ — $ (1 ) $ (14 ) $ 13 $ — $ (1 ) $ (14 ) $ 13 Cash Flow Hedges Three Months Ended June 30, 2016 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (22 ) Other income (expense) $ 6 $ — Financial Products (6 ) Other income (expense) (6 ) — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products (1 ) Interest expense of Financial Products (1 ) — $ (29 ) $ (2 ) $ — Three Months Ended June 30, 2015 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ 18 Other income (expense) $ (37 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) — Financial Products — Interest expense of Financial Products (2 ) — $ 18 $ (40 ) $ — Six Months Ended June 30, 2016 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (6 ) Other income (expense) $ (4 ) $ — Financial Products (6 ) Other income (expense) (6 ) — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3 ) — Financial Products (2 ) Interest expense of Financial Products (3 ) — $ (14 ) $ (16 ) $ — Six Months Ended June 30, 2015 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (7 ) Other income (expense) $ (72 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3 ) — Financial Products 2 Interest expense of Financial Products (3 ) — $ (5 ) $ (78 ) $ —
Effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations	The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows: (Millions of dollars) Classification of Gains (Losses) Three Months Ended Three Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ — $ 26 Financial Products Other income (expense) (24 ) 4 Commodity contracts Machinery, Energy & Transportation Other income (expense) 6 (1 ) $ (18 ) $ 29 Classification of Gains (Losses) Six Months Ended Six Months Ended Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 22 $ (29 ) Financial Products Other income (expense) (28 ) (24 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) 6 (7 ) $ — $ (60 )
Effect of net settlement provisions of the master netting agreements on derivative assets	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 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: June 30, 2016 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 $ 53 $ — $ 53 $ (51 ) $ — $ 2 Financial Products 90 — 90 (11 ) — 79 Total $ 143 $ — $ 143 $ (62 ) $ — $ 81
Effect of net settlement provisions of the master netting agreements on derivative liabilities	June 30, 2016 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 $ (69 ) $ — $ (69 ) $ 51 $ — $ (18 ) Financial Products (15 ) — (15 ) 11 — (4 ) Total $ (84 ) $ — $ (84 ) $ 62 $ — $ (22 ) 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 )

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following: (Millions of dollars) June 30, December 31, Raw materials $ 2,394 $ 2,467 Work-in-process 1,906 1,857 Finished goods 4,916 5,122 Supplies 242 254 Total inventories $ 9,458 $ 9,700

Investments in Unconsolidated33

Investments in Unconsolidated Affiliated Companies (Tables)	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Caterpillar's investments in unconsolidated affiliated companies	Caterpillar’s investments in unconsolidated affiliated companies: (Millions of dollars) June 30, December 31, Investments in equity method companies $ 197 $ 203 Plus: Investments in cost method companies 49 43 Total investments in unconsolidated affiliated companies $ 246 $ 246

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets are comprised of the following: June 30, 2016 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,511 $ (899 ) $ 1,612 Intellectual property 11 1,620 (693 ) 927 Other 14 182 (69 ) 113 Total finite-lived intangible assets 14 $ 4,313 $ (1,661 ) $ 2,652 December 31, 2015 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
Expected amortization expense related to intangible assets	Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Six Months of 2016 2017 2018 2019 2020 Thereafter $166 $331 $322 $320 $309 $1,204
Goodwill acquired	The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2016 were as follows: (Millions of dollars) December 31, Other Adjustments 1 June 30, Construction Industries Goodwill $ 285 $ 17 $ 302 Impairments (22 ) — (22 ) Net goodwill 263 17 280 Resource Industries Goodwill 4,145 25 4,170 Impairments (580 ) — (580 ) Net goodwill 3,565 25 3,590 Energy & Transportation Goodwill 2,738 14 2,752 All Other 2 Goodwill 49 6 55 Consolidated total Goodwill 7,217 62 7,279 Impairments (602 ) — (602 ) Net goodwill $ 6,615 $ 62 $ 6,677 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segments (See Note 15).

Investments in Debt and Equit35

Investments in Debt and Equity Securities (Tables)	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Cost basis and fair value of available-for-sale securities	The cost basis and fair value of debt and equity securities were as follows: June 30, 2016 December 31, 2015 (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 $ 9 $ — $ 9 Other U.S. and non-U.S. government bonds 69 1 70 71 1 72 Corporate bonds Corporate bonds 718 16 734 701 7 708 Asset-backed securities 135 2 137 129 — 129 Mortgage-backed debt securities U.S. governmental agency 294 6 300 291 1 292 Residential 11 — 11 12 — 12 Commercial 57 1 58 59 2 61 Equity securities Large capitalization value 270 18 288 243 30 273 Real estate investment trust (REIT) 63 1 64 25 — 25 Smaller company growth 45 10 55 37 17 54 Total $ 1,671 $ 55 $ 1,726 $ 1,577 $ 58 $ 1,635
Investments in an unrealized loss position that are not other-than-temporarily impaired:	Available-for-sale investments in an unrealized loss position that are not other-than-temporarily impaired: June 30, 2016 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 Asset-backed securities $ — $ — $ 10 $ 1 $ 10 $ 1 Equity securities Large capitalization value 77 8 9 1 86 9 Small company growth 13 4 — — 13 4 Total $ 90 $ 12 $ 19 $ 2 $ 109 $ 14 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 1 Indicates length of time that individual securities have been in a continuous unrealized loss position.
Cost basis and fair value of the available-for-sale debt securities by contractual maturity	The cost basis and fair value of the available-for-sale debt securities at June 30, 2016 , 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. June 30, 2016 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 193 $ 194 Due after one year through five years 651 667 Due after five years through ten years 56 58 Due after ten years 31 31 U.S. governmental agency mortgage-backed securities 294 300 Residential mortgage-backed securities 11 11 Commercial mortgage-backed securities 57 58 Total debt securities – available-for-sale $ 1,293 $ 1,319
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities	Sales of Securities: Three Months Ended Six Months Ended (Millions of dollars) 2016 2015 2016 2015 Proceeds from the sale of available-for-sale securities $ 146 $ 45 $ 195 $ 128 Gross gains from the sale of available-for-sale securities $ 32 $ 1 $ 33 $ 6 Gross losses from the sale of available-for-sale securities $ 1 $ — $ 2 $ 1

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Components of net periodic cost and weighted-average assumptions used to determine net cost	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) June 30 June 30 June 30 2016 2015 2016 2015 2016 2015 For the three months ended: Components of net periodic benefit cost: Service cost $ 29 $ 45 $ 23 $ 28 $ 21 $ 25 Interest cost 130 152 30 36 32 46 Expected return on plan assets (189 ) (224 ) (59 ) (68 ) (11 ) (14 ) Amortization of prior service cost (credit) 1 — — — — (15 ) (14 ) Actuarial loss (gain) — (8 ) — — — — Net periodic benefit cost (benefit) (30 ) (35 ) (6 ) (4 ) 27 43 Curtailments and termination benefits 2 — (19 ) — — — — Total cost (benefit) included in operating profit $ (30 ) $ (54 ) $ (6 ) $ (4 ) $ 27 $ 43 For the six months ended: Components of net periodic benefit cost: Service cost $ 59 $ 91 $ 46 $ 57 $ 41 $ 50 Interest cost 259 303 60 75 65 92 Expected return on plan assets (378 ) (448 ) (117 ) (137 ) (22 ) (28 ) Amortization of prior service cost (credit) 1 — — — — (30 ) (27 ) Actuarial loss (gain) — (8 ) — — — — Net periodic benefit cost (benefit) (60 ) (62 ) (11 ) (5 ) 54 87 Curtailments and termination benefits 2 — (19 ) — — (2 ) — Total cost (benefit) included in operating profit $ (60 ) $ (81 ) $ (11 ) $ (5 ) $ 52 $ 87 Weighted-average assumptions used to determine net cost: Discount rate used to measure service cost 4.5 % 3.8 % 2.9 % 3.3 % 4.4 % 3.9 % Discount rate used to measure interest cost 3.4 % 3.8 % 2.8 % 3.3 % 3.3 % 3.9 % Expected rate of return on plan assets 6.9 % 7.4 % 6.1 % 6.8 % 7.5 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 3.5 % 4.0 % 4.0 % 4.0 % 1 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. 2 Curtailments and termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.
Components of net periodic cost and weighted-average assumptions used to determine net cost	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) June 30 June 30 June 30 2016 2015 2016 2015 2016 2015 For the three months ended: Components of net periodic benefit cost: Service cost $ 29 $ 45 $ 23 $ 28 $ 21 $ 25 Interest cost 130 152 30 36 32 46 Expected return on plan assets (189 ) (224 ) (59 ) (68 ) (11 ) (14 ) Amortization of prior service cost (credit) 1 — — — — (15 ) (14 ) Actuarial loss (gain) — (8 ) — — — — Net periodic benefit cost (benefit) (30 ) (35 ) (6 ) (4 ) 27 43 Curtailments and termination benefits 2 — (19 ) — — — — Total cost (benefit) included in operating profit $ (30 ) $ (54 ) $ (6 ) $ (4 ) $ 27 $ 43 For the six months ended: Components of net periodic benefit cost: Service cost $ 59 $ 91 $ 46 $ 57 $ 41 $ 50 Interest cost 259 303 60 75 65 92 Expected return on plan assets (378 ) (448 ) (117 ) (137 ) (22 ) (28 ) Amortization of prior service cost (credit) 1 — — — — (30 ) (27 ) Actuarial loss (gain) — (8 ) — — — — Net periodic benefit cost (benefit) (60 ) (62 ) (11 ) (5 ) 54 87 Curtailments and termination benefits 2 — (19 ) — — (2 ) — Total cost (benefit) included in operating profit $ (60 ) $ (81 ) $ (11 ) $ (5 ) $ 52 $ 87 Weighted-average assumptions used to determine net cost: Discount rate used to measure service cost 4.5 % 3.8 % 2.9 % 3.3 % 4.4 % 3.9 % Discount rate used to measure interest cost 3.4 % 3.8 % 2.8 % 3.3 % 3.3 % 3.9 % Expected rate of return on plan assets 6.9 % 7.4 % 6.1 % 6.8 % 7.5 % 7.8 % Rate of compensation increase 4.0 % 4.0 % 3.5 % 4.0 % 4.0 % 4.0 % 1 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. 2 Curtailments and termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.
Company costs related to U.S. and non-U.S. defined contribution plans	Total company costs related to our defined contribution plans were as follows: Three Months Ended Six Months Ended (Millions of dollars) 2016 2015 2016 2015 U.S. Plans $ 67 $ 74 $ 152 $ 157 Non-U.S. Plans 17 21 35 39 $ 84 $ 95 $ 187 $ 196

Guarantees and Product Warran37

Guarantees and Product Warranty (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Guarantees	The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees are as follows: (Millions of dollars) June 30, December 31, Caterpillar dealer performance guarantees $ 196 $ 216 Customer loan guarantees 72 47 Supplier consortium performance guarantee 293 286 Third party logistics business lease guarantees 97 107 Other guarantees 25 25 Total guarantees $ 683 $ 681
Product warranty	(Millions of dollars) 2016 Warranty liability, January 1 $ 1,354 Reduction in liability (payments) (424 ) Increase in liability (new warranties) 403 Warranty liability, June 30 $ 1,333 (Millions of dollars) 2015 Warranty liability, January 1 $ 1,426 Reduction in liability (payments) (874 ) Increase in liability (new warranties) 802 Warranty liability, December 31 $ 1,354

Profit Per Share (Tables)

Profit Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Computations of profit per share	Computations of profit per share: Three Months Ended Six Months Ended (Dollars in millions except per share data) 2016 2015 2016 2015 Profit for the period (A) 1 $ 550 $ 802 $ 821 $ 2,047 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 584.1 603.2 583.4 604.1 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 4.5 7.5 4.8 7.7 Average common shares outstanding for fully diluted computation (C) 2 588.6 610.7 588.2 611.8 Profit per share of common stock: Assuming no dilution (A/B) $ 0.94 $ 1.33 $ 1.41 $ 3.39 Assuming full dilution (A/C) 2 $ 0.93 $ 1.31 $ 1.40 $ 3.34 Shares outstanding as of June 30 (in millions) 584.2 602.6 1 Profit attributable to common stockholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Accumulated Other Comprehensi39

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Changes in Accumulated other comprehensive income (loss), net of tax	Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Stockholders’ Equity, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Three Months Ended June 30, 2016 Balance at March 31, 2016 $ (1,545 ) $ 39 $ (32 ) $ 45 $ (1,493 ) Other comprehensive income (loss) before reclassifications (103 ) (1 ) (18 ) 10 (112 ) Amounts reclassified from accumulated other comprehensive (income) loss — (9 ) 1 (20 ) (28 ) Other comprehensive income (loss) (103 ) (10 ) (17 ) (10 ) (140 ) Balance at June 30, 2016 $ (1,648 ) $ 29 $ (49 ) $ 35 $ (1,633 ) Three Months Ended June 30, 2015 Balance at March 31, 2015 $ (1,778 ) $ (40 ) $ (109 ) $ 89 $ (1,838 ) Other comprehensive income (loss) before reclassifications 224 — 11 (6 ) 229 Amounts reclassified from accumulated other comprehensive (income) loss — (9 ) 25 (1 ) 15 Other comprehensive income (loss) 224 (9 ) 36 (7 ) 244 Balance at June 30, 2015 $ (1,554 ) $ (49 ) $ (73 ) $ 82 $ (1,594 ) (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Six Months Ended June 30, 2016 Balance at December 31, 2015 $ (1,953 ) $ (69 ) $ (50 ) $ 37 $ (2,035 ) Other comprehensive income (loss) before reclassifications 305 117 (9 ) 16 429 Amounts reclassified from accumulated other comprehensive (income) loss — (19 ) 10 (18 ) (27 ) Other comprehensive income (loss) 305 98 1 (2 ) 402 Balance at June 30, 2016 $ (1,648 ) $ 29 $ (49 ) $ 35 $ (1,633 ) Six Months Ended June 30, 2015 Balance at December 31, 2014 $ (992 ) $ (31 ) $ (119 ) $ 83 $ (1,059 ) Other comprehensive income (loss) before reclassifications (562 ) — (3 ) 2 (563 ) Amounts reclassified from accumulated other comprehensive (income) loss — (18 ) 49 (3 ) 28 Other comprehensive income (loss) (562 ) (18 ) 46 (1 ) (535 ) Balance at June 30, 2015 $ (1,554 ) $ (49 ) $ (73 ) $ 82 $ (1,594 )
Reclassifications out of Accumulated other comprehensive income (loss)	The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations is as follows: Three Months Ended June 30 (Millions of dollars) Classification of income (expense) 2016 2015 Pension and other postretirement benefits: Amortization of prior service credit (cost) Note 9 1 $ 15 $ 14 Tax (provision) benefit (6 ) (5 ) Reclassifications net of tax $ 9 $ 9 Derivative financial instruments: Foreign exchange contracts Other income (expense) $ — $ (37 ) Interest rate contracts Interest expense excluding Financial Products (1 ) (1 ) Interest rate contracts Interest expense of Financial Products (1 ) (2 ) Reclassifications before tax (2 ) (40 ) Tax (provision) benefit 1 15 Reclassifications net of tax $ (1 ) $ (25 ) Available-for-sale securities: Realized gain (loss) Other income (expense) $ 30 $ 1 Tax (provision) benefit (10 ) — Reclassifications net of tax $ 20 $ 1 Total reclassifications from Accumulated other comprehensive income (loss) $ 28 $ (15 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information. Six Months Ended June 30 (Millions of dollars) Classification of income (expense) 2016 2015 Pension and other postretirement benefits: Amortization of prior service credit (cost) Note 9 1 $ 30 $ 27 Tax (provision) benefit (11 ) (9 ) Reclassifications net of tax $ 19 $ 18 Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (10 ) $ (72 ) Interest rate contracts Interest expense excluding Financial Products (3 ) (3 ) Interest rate contracts Interest expense of Financial Products (3 ) (3 ) Reclassifications before tax (16 ) (78 ) Tax (provision) benefit 6 29 Reclassifications net of tax $ (10 ) $ (49 ) Available-for-sale securities: Realized gain (loss) Other income (expense) $ 27 $ 4 Tax (provision) benefit (9 ) (1 ) Reclassifications net of tax $ 18 $ 3 Total reclassifications from Accumulated other comprehensive income (loss) $ 27 $ (28 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Reportable Segments	Reportable Segments Three Months Ended June 30 (Millions of dollars) 2016 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at June 30 Capital expenditures Construction Industries $ 4,426 $ 12 $ 4,438 $ 116 $ 550 $ 5,515 $ 40 Resource Industries 1,457 57 1,514 153 (163 ) 8,193 59 Energy & Transportation 3,750 658 4,408 169 602 8,161 96 Machinery, Energy & Transportation $ 9,633 $ 727 $ 10,360 $ 438 $ 989 $ 21,869 $ 195 Financial Products Segment 759 — 759 213 202 37,001 612 Total $ 10,392 $ 727 $ 11,119 $ 651 $ 1,191 $ 58,870 $ 807 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 4,803 $ 26 $ 4,829 $ 140 $ 588 $ 6,176 $ 54 Resource Industries 2,048 75 2,123 150 27 8,931 44 Energy & Transportation 4,708 766 5,474 171 942 8,769 227 Machinery, Energy & Transportation $ 11,559 $ 867 $ 12,426 $ 461 $ 1,557 $ 23,876 $ 325 Financial Products Segment 785 — 785 213 184 35,729 342 Total $ 12,344 $ 867 $ 13,211 $ 674 $ 1,741 $ 59,605 $ 667 Reportable Segments Six Months Ended June 30 (Millions of dollars) 2016 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment Capital expenditures Construction Industries $ 8,469 $ 20 $ 8,489 $ 229 $ 990 $ 5,515 $ 68 Resource Industries 2,906 128 3,034 308 (259 ) 8,193 94 Energy & Transportation 7,028 1,290 8,318 335 1,012 8,161 243 Machinery, Energy & Transportation $ 18,403 $ 1,438 $ 19,841 $ 872 $ 1,743 $ 21,869 $ 405 Financial Products Segment 1,502 — 1,502 418 370 37,001 909 Total $ 19,905 $ 1,438 $ 21,343 $ 1,290 $ 2,113 $ 58,870 $ 1,314 2015 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures Construction Industries $ 9,817 $ 49 $ 9,866 $ 280 $ 1,333 $ 6,176 $ 94 Resource Industries 4,019 162 4,181 297 123 8,931 79 Energy & Transportation 9,623 1,560 11,183 338 1,966 8,769 386 Machinery, Energy & Transportation $ 23,459 $ 1,771 $ 25,230 $ 915 $ 3,422 $ 23,876 $ 559 Financial Products Segment 1,580 — 1,580 428 411 35,729 636 Total $ 25,039 $ 1,771 $ 26,810 $ 1,343 $ 3,833 $ 59,605 $ 1,195
Reconciliation of Sales and revenues:	Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended June 30, 2016 Total external sales and revenues from reportable segments $ 9,633 $ 759 $ — $ 10,392 All Other operating segments 41 — — 41 Other (29 ) 19 (81 ) 1 (91 ) Total sales and revenues $ 9,645 $ 778 $ (81 ) $ 10,342 Three Months Ended June 30, 2015 Total external sales and revenues from reportable segments $ 11,559 $ 785 $ — $ 12,344 All Other operating segments 55 — — 55 Other (31 ) 20 (71 ) 1 (82 ) Total sales and revenues $ 11,583 $ 805 $ (71 ) $ 12,317 1 Elimination of Financial Products revenues from Machinery, Energy & Transportation. Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Six Months Ended June 30, 2016 Total external sales and revenues from reportable segments $ 18,403 $ 1,502 $ — $ 19,905 All Other operating segments 79 — — 79 Other (57 ) 35 (159 ) 1 (181 ) Total sales and revenues $ 18,425 $ 1,537 $ (159 ) $ 19,803 Six Months Ended June 30, 2015 Total external sales and revenues from reportable segments $ 23,459 $ 1,580 $ — $ 25,039 All Other operating segments 127 — — 127 Other (42 ) 38 (143 ) 1 (147 ) Total sales and revenues $ 23,544 $ 1,618 $ (143 ) $ 25,019 1 Elimination of Financial Products revenues from Machinery, Energy & Transportation.
Reconciliation of Consolidated profit before taxes:	Reconciliation of Consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended June 30, 2016 Total profit from reportable segments $ 989 $ 202 $ 1,191 All Other operating segments (14 ) — (14 ) Cost centers 14 — 14 Corporate costs (149 ) — (149 ) Timing 9 — 9 Restructuring costs (137 ) (2 ) (139 ) Methodology differences: Inventory/cost of sales (16 ) — (16 ) Postretirement benefit expense 56 — 56 Stock-based compensation expense (43 ) (2 ) (45 ) Financing costs (132 ) — (132 ) Equity in (profit) loss of unconsolidated affiliated companies (2 ) — (2 ) Currency 28 — 28 Other income/expense methodology differences (54 ) — (54 ) Other methodology differences (9 ) 1 (8 ) Total consolidated profit before taxes $ 540 $ 199 $ 739 Three Months Ended June 30, 2015 Total profit from reportable segments $ 1,557 $ 184 $ 1,741 All Other operating segments (18 ) — (18 ) Cost centers (10 ) — (10 ) Corporate costs (175 ) — (175 ) Timing (41 ) — (41 ) Restructuring costs (86 ) — (86 ) Methodology differences: — Inventory/cost of sales 27 — 27 Postretirement benefit expense 82 — 82 Stock-based compensation expense (55 ) (3 ) (58 ) Financing costs (130 ) — (130 ) Equity in (profit) loss of unconsolidated affiliated companies (2 ) — (2 ) Currency (132 ) — (132 ) Other income/expense methodology differences (56 ) — (56 ) Other methodology differences (10 ) 4 (6 ) Total consolidated profit before taxes $ 951 $ 185 $ 1,136 Reconciliation of Consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Six Months Ended June 30, 2016 Total profit from reportable segments $ 1,743 $ 370 $ 2,113 All Other operating segments (21 ) — (21 ) Cost centers 39 — 39 Corporate costs (308 ) — (308 ) Timing 41 — 41 Restructuring costs (296 ) (4 ) (300 ) Methodology differences: Inventory/cost of sales (19 ) — (19 ) Postretirement benefit expense 111 — 111 Stock-based compensation expense (140 ) (6 ) (146 ) Financing costs (267 ) — (267 ) Currency (12 ) — (12 ) Other income/expense methodology differences (110 ) — (110 ) Other methodology differences (23 ) 6 (17 ) Total consolidated profit before taxes $ 738 $ 366 $ 1,104 Six Months Ended June 30, 2015 Total profit from reportable segments $ 3,422 $ 411 $ 3,833 All Other operating segments (25 ) — (25 ) Cost centers 8 — 8 Corporate costs (315 ) — (315 ) Timing (22 ) — (22 ) Restructuring costs (121 ) — (121 ) Methodology differences: Inventory/cost of sales (8 ) — (8 ) Postretirement benefit expense 151 — 151 Stock-based compensation expense (184 ) (9 ) (193 ) Financing costs (266 ) — (266 ) Equity in (profit) loss of unconsolidated affiliated companies (4 ) — (4 ) Currency (122 ) — (122 ) Other income/expense methodology differences 3 — 3 Other methodology differences (28 ) 12 (16 ) Total consolidated profit before taxes $ 2,489 $ 414 $ 2,903
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 Three Months Ended June 30, 2016 Construction Industries $ 550 $ (3 ) $ 547 Resource Industries (163 ) (69 ) (232 ) Energy & Transportation 602 (55 ) 547 Financial Products Segment 202 (2 ) 200 All Other operating segments (14 ) (9 ) (23 ) Total $ 1,177 $ (138 ) $ 1,039 Three Months Ended June 30, 2015 Construction Industries $ 588 $ (32 ) $ 556 Resource Industries 27 (36 ) (9 ) Energy & Transportation 942 (11 ) 931 Financial Products Segment 184 — 184 All Other operating segments (18 ) (2 ) (20 ) Total $ 1,723 $ (81 ) $ 1,642 Reconciliation of Restructuring costs: (Millions of dollars) Segment profit Restructuring costs Segment profit with restructuring costs Six Months Ended June 30, 2016 Construction Industries $ 990 $ (25 ) $ 965 Resource Industries (259 ) (94 ) (353 ) Energy & Transportation 1,012 (155 ) 857 Financial Products Segment 370 (4 ) 366 All Other operating segments (21 ) (14 ) (35 ) Total $ 2,092 $ (292 ) $ 1,800 Six Months Ended June 30, 2015 Construction Industries $ 1,333 $ (55 ) $ 1,278 Resource Industries 123 (44 ) 79 Energy & Transportation 1,966 (14 ) 1,952 Financial Products Segment 411 — 411 All Other operating segments (25 ) (3 ) (28 ) Total $ 3,808 $ (116 ) $ 3,692
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total June 30, 2016 Total assets from reportable segments $ 21,869 $ 37,001 $ — $ 58,870 All Other operating segments 1,346 — — 1,346 Items not included in segment assets: Cash and short-term investments 5,579 — — 5,579 Intercompany receivables 1,985 — (1,985 ) — Investment in Financial Products 4,253 — (4,253 ) — Deferred income taxes 3,223 — (774 ) 2,449 Goodwill and intangible assets 4,026 — — 4,026 Property, plant and equipment – net and other assets 2,038 — — 2,038 Operating lease methodology difference (178 ) — — (178 ) Inventory methodology differences (2,303 ) — — (2,303 ) Intercompany loan included in Financial Products' assets — — (1,000 ) (1,000 ) Liabilities included in segment assets 7,927 — — 7,927 Other (351 ) (33 ) (70 ) (454 ) Total assets $ 49,414 $ 36,968 $ (8,082 ) $ 78,300 December 31, 2015 Total assets from reportable segments $ 23,876 $ 35,729 $ — $ 59,605 All Other operating segments 1,405 — — 1,405 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 ) — Deferred income taxes 3,208 — (793 ) 2,415 Goodwill and intangible assets 3,571 — — 3,571 Property, plant and equipment – net and other assets 1,585 — — 1,585 Operating lease methodology difference (213 ) — — (213 ) Inventory methodology differences (2,646 ) — — (2,646 ) Liabilities included in segment assets 8,017 — — 8,017 Other (567 ) (93 ) (77 ) (737 ) Total assets $ 48,551 $ 35,636 $ (5,845 ) $ 78,342
Reconciliation of Depreciation and amortization:	Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended June 30, 2016 Total depreciation and amortization from reportable segments $ 438 $ 213 $ 651 Items not included in segment depreciation and amortization: All Other operating segments 53 — 53 Cost centers 38 — 38 Other 2 10 12 Total depreciation and amortization $ 531 $ 223 $ 754 Three Months Ended June 30, 2015 Total depreciation and amortization from reportable segments $ 461 $ 213 $ 674 Items not included in segment depreciation and amortization: All Other operating segments 51 — 51 Cost centers 38 — 38 Other (10 ) 8 (2 ) Total depreciation and amortization $ 540 $ 221 $ 761 Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Six Months Ended June 30, 2016 Total depreciation and amortization from reportable segments $ 872 $ 418 $ 1,290 Items not included in segment depreciation and amortization: All Other operating segments 105 — 105 Cost centers 78 — 78 Other 1 20 21 Total depreciation and amortization $ 1,056 $ 438 $ 1,494 Six Months Ended June 30, 2015 Total depreciation and amortization from reportable segments $ 915 $ 428 $ 1,343 Items not included in segment depreciation and amortization: All Other operating segments 100 — 100 Cost centers 75 — 75 Other (20 ) 16 (4 ) Total depreciation and amortization $ 1,070 $ 444 $ 1,514
Reconciliation of Capital expenditures:	Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended June 30, 2016 Total capital expenditures from reportable segments $ 195 $ 612 $ — $ 807 Items not included in segment capital expenditures: All Other operating segments 51 — — 51 Cost centers 16 — — 16 Other (23 ) 22 (8 ) (9 ) Total capital expenditures $ 239 $ 634 $ (8 ) $ 865 Three Months Ended June 30, 2015 Total capital expenditures from reportable segments $ 325 $ 342 $ — $ 667 Items not included in segment capital expenditures: All Other operating segments 28 — — 28 Cost centers 27 — — 27 Timing (19 ) — — (19 ) Other (79 ) 32 (11 ) (58 ) Total capital expenditures $ 282 $ 374 $ (11 ) $ 645 Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Six Months Ended June 30, 2016 Total capital expenditures from reportable segments $ 405 $ 909 $ — $ 1,314 Items not included in segment capital expenditures: All Other operating segments 67 — — 67 Cost centers 28 — — 28 Timing 217 — — 217 Other (99 ) 95 (17 ) (21 ) Total capital expenditures $ 618 $ 1,004 $ (17 ) $ 1,605 Six Months Ended June 30, 2015 Total capital expenditures from reportable segments $ 559 $ 636 $ — $ 1,195 Items not included in segment capital expenditures: All Other operating segments 53 — — 53 Cost centers 46 — — 46 Timing 234 — — 234 Other (133 ) 95 (19 ) (57 ) Total capital expenditures $ 759 $ 731 $ (19 ) $ 1,471

Cat Financial Financing Activ41

Cat Financial Financing Activities (Tables)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Allowance for credit losses	An analysis of the allowance for credit losses was as follows: (Millions of dollars) June 30, 2016 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 327 $ 9 $ 336 Receivables written off (79 ) — (79 ) Recoveries on receivables previously written off 15 — 15 Provision for credit losses 64 1 65 Other 7 — 7 Balance at end of period $ 334 $ 10 $ 344 Individually evaluated for impairment $ 69 $ — $ 69 Collectively evaluated for impairment 265 10 275 Ending Balance $ 334 $ 10 $ 344 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 676 $ — $ 676 Collectively evaluated for impairment 18,870 3,666 22,536 Ending Balance $ 19,546 $ 3,666 $ 23,212 (Millions of dollars) December 31, 2015 Allowance for Credit Losses: Customer Dealer Total 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
Aging related to finance receivables	The tables below summarize the recorded investment of finance receivables by aging category. June 30, 2016 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 64 $ 18 $ 70 $ 152 $ 7,968 $ 8,120 $ 8 Europe 18 9 79 106 2,381 2,487 46 Asia Pacific 29 12 26 67 1,567 1,634 8 Mining 8 4 72 84 1,765 1,849 10 Latin America 57 27 305 389 1,956 2,345 — Caterpillar Power Finance 20 17 39 76 3,035 3,111 1 Dealer North America — — — — 2,304 2,304 — Europe — — — — 126 126 — Asia Pacific — — — — 585 585 — Mining — — — — 4 4 — Latin America — — — — 645 645 — Caterpillar Power Finance — — — — 2 2 — Total $ 196 $ 87 $ 591 $ 874 $ 22,338 $ 23,212 $ 73 December 31, 2015 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 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
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: June 30, 2016 December 31, 2015 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Impaired Finance Receivables With No Allowance Recorded North America $ 33 $ 33 $ — $ 12 $ 12 $ — Europe 49 48 — 41 41 — Asia Pacific — — — 1 1 — Mining 81 81 — 84 84 — Latin America 38 38 — 28 28 — Caterpillar Power Finance 280 279 — 242 241 — Total $ 481 $ 479 $ — $ 408 $ 407 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 33 $ 31 $ 11 $ 14 $ 13 $ 4 Europe 12 11 7 11 10 5 Asia Pacific 36 36 5 34 34 4 Mining 10 10 3 11 11 3 Latin America 61 61 27 53 53 21 Caterpillar Power Finance 43 43 16 70 70 28 Total $ 195 $ 192 $ 69 $ 193 $ 191 $ 65 Total Impaired Finance Receivables North America $ 66 $ 64 $ 11 $ 26 $ 25 $ 4 Europe 61 59 7 52 51 5 Asia Pacific 36 36 5 35 35 4 Mining 91 91 3 95 95 3 Latin America 99 99 27 81 81 21 Caterpillar Power Finance 323 322 16 312 311 28 Total $ 676 $ 671 $ 69 $ 601 $ 598 $ 65 Three Months Ended Three Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded North America $ 24 $ 1 $ 12 $ — Europe 44 — 42 — Asia Pacific 3 — 2 — Mining 80 — 80 1 Latin America 29 — 32 — Caterpillar Power Finance 273 2 176 1 Total $ 453 $ 3 $ 344 $ 2 Impaired Finance Receivables With An Allowance Recorded North America $ 25 $ — $ 6 $ — Europe 12 — 15 1 Asia Pacific 36 1 41 1 Mining 13 — 62 — Latin America 57 — 51 — Caterpillar Power Finance 45 1 132 1 Total $ 188 $ 2 $ 307 $ 3 Total Impaired Finance Receivables North America $ 49 $ 1 $ 18 $ — Europe 56 — 57 1 Asia Pacific 39 1 43 1 Mining 93 — 142 1 Latin America 86 — 83 — Caterpillar Power Finance 318 3 308 2 Total $ 641 $ 5 $ 651 $ 5 Six Months Ended Six Months Ended (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded Customer North America $ 19 $ 1 $ 13 $ — Europe 43 — 43 — Asia Pacific 2 — 2 — Mining 80 1 87 3 Latin America 29 — 32 — Caterpillar Power Finance 262 5 151 2 Total $ 435 $ 7 $ 328 $ 5 Impaired Finance Receivables With An Allowance Recorded Customer North America $ 20 $ — $ 6 $ — Europe 12 — 14 1 Asia Pacific 35 2 34 1 Mining 12 — 66 1 Latin America 54 1 49 1 Caterpillar Power Finance 53 1 131 1 Total $ 186 $ 4 $ 300 $ 5 Total Impaired Finance Receivables Customer North America $ 39 $ 1 $ 19 $ — Europe 55 — 57 1 Asia Pacific 37 2 36 1 Mining 92 1 153 4 Latin America 83 1 81 1 Caterpillar Power Finance 315 6 282 3 Total $ 621 $ 11 $ 628 $ 10
Investment in finance receivables on non-accrual status	The investment in customer finance receivables on non-accrual status was as follows: (Millions of dollars) June 30, 2016 December 31, 2015 North America $ 70 $ 31 Europe 33 39 Asia Pacific 18 15 Mining 122 106 Latin America 311 217 Caterpillar Power Finance 59 77 Total $ 613 $ 485
Finance receivables modified as TDRs	TDRs in the Customer portfolio segment with a payment default during the three and six months ended June 30, 2016 and 2015 , which had been modified within twelve months prior to the default date, were as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Millions of dollars) Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 9 $ 3 1 $ — Latin America 1 — — — Total 10 $ 3 1 $ — Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 13 $ 3 5 $ 1 Europe 13 1 — — Asia Pacific 3 — — — Latin America 2 — 1 — Total 31 $ 4 6 $ 1 Finance receivables in the Customer portfolio segment modified as TDRs during the three and six months ended June 30, 2016 and 2015 , were as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Millions of dollars) Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 2 $ 6 $ 6 1 $ — $ — Europe 3 11 8 19 2 2 Asia Pacific — — — 20 25 25 Mining 1 10 5 — — — Latin America 88 12 13 — — — Caterpillar Power Finance 26 144 137 2 21 21 Total 120 $ 183 $ 169 42 $ 48 $ 48 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 13 $ 16 $ 16 4 $ 1 $ 1 Europe 3 11 8 19 2 2 Asia Pacific 4 3 3 20 25 25 Mining 1 10 5 — — — Latin America 90 12 13 — — — Caterpillar Power Finance 30 183 164 4 104 101 Total 141 $ 235 $ 209 47 $ 132 $ 129
TDRs with a payment default which had been modified within twelve months prior to the default date	TDRs in the Customer portfolio segment with a payment default during the three and six months ended June 30, 2016 and 2015 , which had been modified within twelve months prior to the default date, were as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Millions of dollars) Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 9 $ 3 1 $ — Latin America 1 — — — Total 10 $ 3 1 $ — Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Customer North America 13 $ 3 5 $ 1 Europe 13 1 — — Asia Pacific 3 — — — Latin America 2 — 1 — Total 31 $ 4 6 $ 1 Finance receivables in the Customer portfolio segment modified as TDRs during the three and six months ended June 30, 2016 and 2015 , were as follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Millions of dollars) Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 2 $ 6 $ 6 1 $ — $ — Europe 3 11 8 19 2 2 Asia Pacific — — — 20 25 25 Mining 1 10 5 — — — Latin America 88 12 13 — — — Caterpillar Power Finance 26 144 137 2 21 21 Total 120 $ 183 $ 169 42 $ 48 $ 48 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 13 $ 16 $ 16 4 $ 1 $ 1 Europe 3 11 8 19 2 2 Asia Pacific 4 3 3 20 25 25 Mining 1 10 5 — — — Latin America 90 12 13 — — — Caterpillar Power Finance 30 183 164 4 104 101 Total 141 $ 235 $ 209 47 $ 132 $ 129

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Assets and liabilities measured on a recurring basis at fair value	Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of June 30, 2016 and December 31, 2015 are summarized below: June 30, 2016 (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 — 70 — 70 Corporate bonds Corporate bonds — 734 — 734 Asset-backed securities — 137 — 137 Mortgage-backed debt securities U.S. governmental agency — 300 — 300 Residential — 11 — 11 Commercial — 58 — 58 Equity securities Large capitalization value 288 — — 288 Smaller company growth 55 — — 55 Total available-for-sale securities 352 1,310 — 1,662 REIT — — 64 64 Derivative financial instruments, net — 59 — 59 Total Assets $ 352 $ 1,369 $ 64 $ 1,785 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 Smaller company growth 54 — — 54 Total available-for-sale securities 336 1,274 — 1,610 REIT — — 25 25 Derivative financial instruments, net — 49 — 49 Total Assets $ 336 $ 1,323 $ 25 $ 1,684
Roll-forward of assets measured at fair value using Level 3 inputs	The fair value of our REIT investment is measured based on NAV, which is considered a Level 3 input. A roll-forward for the six months ended June 30, 2016 of our REIT investment, which was purchased during the fourth quarter of 2015, is as follows. (Millions of dollars) REIT Balance at December 31, 2015 $ 25 Purchases of securities 38 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) 1 Balance at June 30, 2016 $ 64
Fair values of financial instruments	Please refer to the table below for the fair values of our financial instruments. Fair Value of Financial Instruments June 30, 2016 December 31, 2015 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 6,764 $ 6,764 $ 6,460 $ 6,460 1 Restricted cash and short-term investments 45 45 52 52 1 Investments in debt and equity securities 1,726 1,726 1,635 1,635 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 16,777 16,809 16,515 16,551 3 Note 16 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,761 1,724 1,821 1,775 3 Note 16 Foreign currency contracts – net 11 11 13 13 2 Note 4 Interest rate swaps – net 46 46 48 48 2 Note 4 Commodity contracts – net 2 2 — — 2 Note 4 Liabilities Short-term borrowings 7,483 7,483 6,967 6,967 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,489 11,531 9,477 10,691 2 Financial Products 21,351 21,954 21,569 21,904 2 Commodity contracts – net — — 12 12 2 Note 4 Guarantees 12 12 12 12 3 Note 10 1 Total excluded items have a net carrying value at June 30, 2016 and December 31, 2015 of $6,416 million and $6,452 million , respectively.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	6 Months Ended
	Jun. 30, 2016
Restructuring Charges [Abstract]
Restructuring and related costs	Restructuring costs for the three and six months ended June 30, 2016 and 2015 were as follows: (Millions of dollars) Three Months Ended June 30 2016 2015 Employee separations 1 $ 45 $ 86 Contract terminations 1 36 — Long-lived asset impairments 1 14 — Other 2 44 — Total restructuring costs $ 139 $ 86 Six Months Ended June 30 2016 2015 Employee separations 1 $ 76 $ 120 Contract terminations 1 46 — Long-lived asset impairments 1 96 1 Other 2 82 — Total restructuring costs $ 300 $ 121 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, equipment relocation and inventory write-downs and were recognized primarily in Cost of goods sold.
Summary of separation activity	The following table summarizes the 2015 and 2016 employee separation activity: (Millions of dollars) Total 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 Increase in liability (separation charges) 76 Reduction in liability (payments) (440 ) Liability balance at June 30, 2016 $ 119

Nature of Operations, Basis o44

Nature of Operations, Basis of Presentation and Change in Accounting Principle (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Variable Interest Entity Maximum Exposure
Receivables - trade and other	$ 6,326	$ 6,695
Receivables - finance	9,201	8,991
Long-term receivables - finance	13,689	13,651
Other assets	246	246
Guarantees	683	681
Variable Interest Entity
Variable Interest Entity Maximum Exposure
Receivables - trade and other	39	19
Receivables - finance	209	466
Long-term receivables - finance	262	62
Other assets	35	35
Guarantees	213	175
Total	$ 758	$ 757

Nature of Operations, Basis o45

Nature of Operations, Basis of Presentation and Change in Accounting Principle (Details 2) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2014	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Jan. 01, 2015
Statement of Result of Operations
Cost of goods sold		$ 7,419	$ 8,674	$ 14,241	$ 17,434
Selling, general and administrative expenses		1,123	1,318	2,211	2,567
Research and development expenses		468	510	976	1,034
Other operating (income) expenses		399	334	796	651
Total operating costs		9,557	10,984	18,524	21,984
Operating profit		785	1,333	1,279	3,035
Other income (expense)		84	(72)	84	122
Consolidated profit before taxes		739	1,136	1,104	2,903
Provision (benefit) for income taxes		184	335	276	856
Profit of consolidated companies		555	801	828	2,047
Profit of consolidated and affiliated companies		553	803	825	2,051
Profit	[1]	$ 550	$ 802	$ 821	$ 2,047
Profit per common share (in dollars per share)		$ 0.94	$ 1.33	$ 1.41	$ 3.39
Profit per common share - diluted (in dollars per share)	[2]	$ 0.93	$ 1.31	$ 1.40	$ 3.34
Statement of Comprehensive Income
Profit of consolidated and affiliated companies		$ 553	$ 803	$ 825	$ 2,051
Foreign currency translation, net of tax		(103)	216	305	(570)
Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax		0	0	0	0
Pension and other postretirement benefits: Amortization of actuarial (gain) loss, net of tax		0	0	0	0
Total other comprehensive income (loss), net of tax		(140)	236	402	(543)
Comprehensive Income		413	1,039	1,227	1,508
Comprehensive income attributable to stockholders		410	1,046	1,223	1,512
Statement of Financial Position
Noncurrent deferred and refundable income taxes		2,536		2,536				$ 2,489
Liability for postemployment benefits		8,533		8,533				8,843
Profit employed in the business		29,167		29,167				29,246
Accumulated other comprehensive income (loss)		(1,633)	(1,594)	(1,633)	(1,594)	$ (1,059)	$ (1,493)	(2,035)	$ (1,838)
Statement of Stockholders' Equity
Profit of consolidated and affiliated companies		553	803	825	2,051
Foreign currency translation, net of tax		(103)	216	305	(570)
Pension and other postretirement benefits, net of tax				98	(18)
Total stockholders' equity		15,303	17,150	15,303	17,150	16,826		14,885
Statement of Cash Flows
Profit of consolidated and affiliated companies		553	803	825	2,051
Adjustments for non-cash items: Other				368	142
Other assets - net				(127)	215
Other liabilities - net				(197)	(179)
Effect of Accounting Change
Change in Accounting Principle
Cumulative effect of change on equity										$ 5,400
Cumulative effect of change on equity, net of tax						$ 2,900
Statement of Result of Operations
Cost of goods sold		(61)	(88)	(120)	(171)
Selling, general and administrative expenses		(33)	(71)	(69)	(140)
Research and development expenses		(11)	(22)	(21)	(44)
Other operating (income) expenses		0	(22)	0	(23)
Total operating costs		(105)	(203)	(210)	(378)
Operating profit		105	203	210	378
Other income (expense)		41	(59)	37	(22)
Consolidated profit before taxes		146	144	247	356
Provision (benefit) for income taxes		48	52	79	130
Profit of consolidated companies		98	92	168	226
Profit of consolidated and affiliated companies		98	92	168	226
Profit		$ 98	$ 92	$ 168	$ 226
Profit per common share (in dollars per share)		$ 0.17	$ 0.15	$ 0.29	$ 0.38
Profit per common share - diluted (in dollars per share)		$ 0.16	$ 0.15	$ 0.29	$ 0.36
Statement of Comprehensive Income
Profit of consolidated and affiliated companies		$ 98	$ 92	$ 168	$ 226
Foreign currency translation, net of tax				(3)	5
Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax		0	(19)	3	(24)
Pension and other postretirement benefits: Amortization of actuarial (gain) loss, net of tax		(79)	(109)	(158)	(218)
Total other comprehensive income (loss), net of tax		(79)	(128)	(158)	(237)
Comprehensive Income		19	(36)	10	(11)
Comprehensive income attributable to stockholders		19	(36)	10	(11)
Statement of Financial Position
Noncurrent deferred and refundable income taxes		(7)		(7)
Liability for postemployment benefits		(17)		(17)
Profit employed in the business		(4,794)		(4,794)				(4,962)
Accumulated other comprehensive income (loss)		4,804		4,804				4,962
Statement of Stockholders' Equity
Profit of consolidated and affiliated companies		98	92	168	226
Foreign currency translation, net of tax				(3)	5
Pension and other postretirement benefits, net of tax				(155)	(242)
Total stockholders' equity		10	(11)	10	(11)
Statement of Cash Flows
Profit of consolidated and affiliated companies		98	92	168	226
Adjustments for non-cash items: Other				(37)	22
Other assets - net				79	130
Other liabilities - net				(210)	(378)
Previous Accounting Method
Statement of Result of Operations
Cost of goods sold		7,480		14,361
Selling, general and administrative expenses		1,156		2,280
Research and development expenses		479		997
Other operating (income) expenses		399		796
Total operating costs		9,662		18,734
Operating profit		680		1,069
Other income (expense)		43		47
Consolidated profit before taxes		593		857
Provision (benefit) for income taxes		136		197
Profit of consolidated companies		457		660
Profit of consolidated and affiliated companies		455		657
Profit		$ 452		$ 653
Profit per common share (in dollars per share)		$ 0.77		$ 1.12
Profit per common share - diluted (in dollars per share)		$ 0.77		$ 1.11
Statement of Comprehensive Income
Profit of consolidated and affiliated companies		$ 455		$ 657
Foreign currency translation, net of tax				308
Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax		0		(3)
Pension and other postretirement benefits: Amortization of actuarial (gain) loss, net of tax		79		158
Total other comprehensive income (loss), net of tax		(61)		560
Comprehensive Income		394		1,217
Comprehensive income attributable to stockholders		391		1,213
Statement of Financial Position
Noncurrent deferred and refundable income taxes		2,543		2,543
Liability for postemployment benefits		8,550		8,550
Profit employed in the business		33,961		33,961
Accumulated other comprehensive income (loss)		(6,437)		(6,437)
Statement of Stockholders' Equity
Profit of consolidated and affiliated companies		455		657
Foreign currency translation, net of tax				308
Pension and other postretirement benefits, net of tax				253
Total stockholders' equity		15,293		15,293
Statement of Cash Flows
Profit of consolidated and affiliated companies		$ 455		657
Adjustments for non-cash items: Other				405
Other assets - net				(206)
Other liabilities - net				$ 13
Previously Reported
Statement of Result of Operations
Cost of goods sold			8,762		17,605
Selling, general and administrative expenses			1,389		2,707
Research and development expenses			532		1,078
Other operating (income) expenses			356		674
Total operating costs			11,187		22,362
Operating profit			1,130		2,657
Other income (expense)			(13)		144
Consolidated profit before taxes			992		2,547
Provision (benefit) for income taxes			283		726
Profit of consolidated companies			709		1,821
Profit of consolidated and affiliated companies			711		1,825
Profit			$ 710		$ 1,821
Profit per common share (in dollars per share)			$ 1.18		$ 3.01
Profit per common share - diluted (in dollars per share)			$ 1.16		$ 2.98
Statement of Comprehensive Income
Profit of consolidated and affiliated companies			$ 711		$ 1,825
Foreign currency translation, net of tax					(575)
Pension and other postretirement benefits: Current year actuarial gain (loss), net of tax			19		24
Pension and other postretirement benefits: Amortization of actuarial (gain) loss, net of tax			109		218
Total other comprehensive income (loss), net of tax			364		(306)
Comprehensive Income			1,075		1,519
Comprehensive income attributable to stockholders			1,082		1,523
Statement of Financial Position
Profit employed in the business								34,208
Accumulated other comprehensive income (loss)								$ (6,997)
Statement of Stockholders' Equity
Profit of consolidated and affiliated companies			711		1,825
Foreign currency translation, net of tax					(575)
Pension and other postretirement benefits, net of tax					224
Total stockholders' equity			17,161		17,161
Statement of Cash Flows
Profit of consolidated and affiliated companies			$ 711		1,825
Adjustments for non-cash items: Other					120
Other assets - net					85
Other liabilities - net					$ 199
[1]	1 Profit attributable to common stockholders.
[2]	2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

New Accounting Guidance (Detail

New Accounting Guidance (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements
Prepaid expenses and other current assets	$ 1,857	$ 1,662
Noncurrent deferred and refundable income taxes	2,536	2,489
Other current liabilities	(1,635)	(1,671)
Other liabilities	$ (3,301)	(3,203)
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncements
Deferred and refundable income taxes		910
Prepaid expenses and other current assets		616
Noncurrent deferred and refundable income taxes		835
Other current liabilities		59
Other liabilities		$ 16

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Stock-based compensation awards
Required minimum age of a participant upon separation from service to meet the criteria for Long Service Separation (in years)	55 years
Minimum term of service to meet criteria for Long Service Separation (in years)	5 years
Term life of SARs and option awards (in years)	10 years
Term life of vested options/SARs from separation date (in years)					5 years
Stock-based compensation expense, before tax (in dollars)	$ 45	$ 58	$ 146	$ 193
Assumptions used in determining the fair value of the stock-based awards
Weighted-average dividend yield (as a percent)			3.23%	2.27%
Weighted-average volatility (as a percent)			31.10%	28.40%
Volatilities, low end of range (as a percent)			22.50%	19.90%
Volatilities, high end of range (as a percent)			33.40%	35.90%
Risk-free interest rates, low end of range (as a percent)			0.62%	0.22%
Risk-free interest rates, high end of range (as a percent)			1.73%	2.08%
Weighted-average expected lives (in years)			8 years	8 years
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars)	$ 261		$ 261
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)			2 years
Stock Options
Stock-based compensation awards
Shares Granted (in shares)			4,243,272	7,939,497
Weighted-Average Fair Value Per Share (in dollars per share)			$ 20.64	$ 23.61
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 74.77	$ 83.34	74.77	83.34
RSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	74.77	83.02	$ 74.77	$ 83.02
Shares Granted (in shares)			1,085,505	1,690,661
Weighted-Average Fair Value Per Share (in dollars per share)			$ 68.04	$ 77.55
PRSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 74.77	$ 82.90	$ 74.77	$ 82.90
Shares Granted (in shares)			614,347	132,068
Weighted-Average Fair Value Per Share (in dollars per share)			$ 64.71	$ 77.47
Grants prior to 2015
Stock-based compensation awards
Vesting period of awards, after the date of grant (in years)	3 years
2015 and 2016 Grants
Stock-based compensation awards
Graded vesting period of awards granted (in years)	3 years
2015 and 2016 Grants | PRSUs
Stock-based compensation awards
Vesting period of awards, after the date of grant (in years)	3 years

Derivative Financial Instrume48

Derivative Financial Instruments and Risk Management (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign currency cash flow hedges, maximum allowable period (in years)	5 years
Foreign currency cash flow hedges, maximum period (in years)	51 months
Deferred net losses, foreign currency exchange rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 5
Derivative
Commodity forward and option contracts, maximum period (in years)	5 years
Machinery, Energy & Transportation
Derivative
Deferred net gains (losses), interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ (4)
Financial Products
Derivative
Deferred net gains (losses), interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 1

Derivative Financial Instrume49

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Derivatives Fair Value
Asset Fair Value	$ 143	$ 105
Liability Fair Value	(84)	(56)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	53	14
Liability Fair Value	(69)	(46)
Financial Products
Derivatives Fair Value
Asset Fair Value	90	91
Liability Fair Value	(15)	(10)
Designated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	36	35
Designated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	45	12
Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	8	0
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(54)	(25)
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(2)	0
Designated Derivatives | Foreign exchange contracts | Other Liabilities | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(7)	0
Designated Derivatives | Interest rate contracts | Receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	0	1
Designated Derivatives | Interest rate contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	50	51
Designated Derivatives | Interest rate contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(4)	(4)
Undesignated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	23	14
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	4	2
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	6	3
Undesignated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	26	36
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(6)	(9)
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(9)	(6)
Undesignated Derivatives | Commodity contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	4	0
Undesignated Derivatives | Commodity contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	$ (2)	$ (12)

Derivative Financial Instrume50

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Machinery, Energy & Transportation
Derivative notional amounts
Derivative instruments notional amount	$ 2,442	$ 2,040
Financial Products
Derivative notional amounts
Derivative instruments notional amount	$ 4,222	$ 3,539

Derivative Financial Instrume51

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Designated Derivatives | Fair Value Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ (3)	$ (13)	$ 0	$ (14)
Gains (Losses) on Borrowings	3	12	(1)	13
Designated Derivatives | Fair Value Hedges | Interest rate contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	(3)	(13)	0	(14)
Gains (Losses) on Borrowings	3	12	(1)	13
Designated Derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	(29)	18	(14)	(5)
Amount of Gains (Losses) Reclassified from AOCI to Earnings	(2)	(40)	(16)	(78)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	(22)	18	(6)	(7)
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	6	(37)	(4)	(72)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	(6)		(6)
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	(6)		(6)
Recognized in Earnings (Ineffective Portion)	0		0
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	0	0	0	0
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings	(1)	(1)	(3)	(3)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	(1)	0	(2)	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	(1)	(2)	(3)	(3)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Undesignated Derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(18)	29	0	(60)
Undesignated Derivatives | Foreign exchange contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	0	26	22	(29)
Undesignated Derivatives | Foreign exchange contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(24)	4	(28)	(24)
Undesignated Derivatives | Commodity contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 6	$ (1)	$ 6	$ (7)

Derivative Financial Instrume52

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Offsetting Assets
Gross Amount of Recognized Assets	$ 143	$ 105
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	143	105
Financial Instruments	(62)	(19)
Cash Collateral Received	0	0
Net Amount of Assets	81	86
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	53	14
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	53	14
Financial Instruments	(51)	(14)
Cash Collateral Received	0	0
Net Amount of Assets	2	0
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	90	91
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	90	91
Financial Instruments	(11)	(5)
Cash Collateral Received	0	0
Net Amount of Assets	$ 79	$ 86

Derivative Financial Instrume53

Derivative Financial Instruments and Risk Management (Details 6) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Offsetting Liabilities
Gross Amount of Recognized Liabilities	$ (84)	$ (56)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	(84)	(56)
Financial Instruments	62	19
Cash Collateral Pledged	0	0
Net Amount of Liabilities	(22)	(37)
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(69)	(46)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	(69)	(46)
Financial Instruments	51	14
Cash Collateral Pledged	0	0
Net Amount of Liabilities	(18)	(32)
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(15)	(10)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	(15)	(10)
Financial Instruments	11	5
Cash Collateral Pledged	0	0
Net Amount of Liabilities	$ (4)	$ (5)

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 2,394	$ 2,467
Work-in-process	1,906	1,857
Finished goods	4,916	5,122
Supplies	242	254
Total inventories	$ 9,458	$ 9,700

Investments in Unconsolidated55

Investments in Unconsolidated Affiliated Companies (Details) - USD ($) $ in Millions	1 Months Ended
	Feb. 28, 2015	Jun. 30, 2016	Dec. 31, 2015
Caterpillar's investments in unconsolidated affiliated companies:
Investments in equity method companies		$ 197	$ 203
Plus: Investments in cost method companies		49	43
Total investments in unconsolidated affiliated companies		$ 246	$ 246
Third party logistics business, investment
Schedule of Equity Method Investments [Line Items]
Percentage of equity interest sold	35.00%
Sale price of investment	$ 177
Cash proceeds from sale	167
Note receivable from sale	10
Realized gain on disposal	120
Carrying value of noncontrolling interest	$ 57

Intangible Assets and Goodwil56

Intangible Assets and Goodwill (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Intangible assets
Weighted Amortizable Life (in years)			14 years		14 years
Gross Carrying Amount	$ 4,313		$ 4,313		$ 4,323
Accumulated Amortization	(1,661)		(1,661)		(1,502)
Net	2,652		2,652		2,821
Total intangible assets, net	2,652		2,652		$ 2,821
Amortization expense	82	$ 87	164	$ 174
Remaining Six Months of 2016	166		166
2,017	331		331
2,018	322		322
2,019	320		320
2,020	309		309
Thereafter	1,204		$ 1,204
Customer Relationships
Intangible assets
Weighted Amortizable Life (in years)			15 years		15 years
Gross Carrying Amount	2,511		$ 2,511		$ 2,489
Accumulated Amortization	(899)		(899)		(809)
Net	1,612		$ 1,612		$ 1,680
Intellectual Property
Intangible assets
Weighted Amortizable Life (in years)			11 years		11 years
Gross Carrying Amount	1,620		$ 1,620		$ 1,660
Accumulated Amortization	(693)		(693)		(626)
Net	927		$ 927		$ 1,034
Other
Intangible assets
Weighted Amortizable Life (in years)			14 years		12 years
Gross Carrying Amount	182		$ 182		$ 174
Accumulated Amortization	(69)		(69)		(67)
Net	$ 113		$ 113		$ 107

Intangible Assets and Goodwil57

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period			$ 7,217
Impairments, beginning of period			(602)
Net goodwill, beginning of period			6,615
Goodwill impairment charge	$ 0	$ 0	0	$ 0
Other adjustments			62
Goodwill, end of period	7,279		7,279
Impairments, end of period	(602)		(602)
Net goodwill, end of period	6,677		6,677
Construction Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period			285
Impairments, beginning of period			(22)
Net goodwill, beginning of period			263
Other adjustments			17
Goodwill, end of period	302		302
Impairments, end of period	(22)		(22)
Net goodwill, end of period	280		280
Resource Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period			4,145
Impairments, beginning of period			(580)
Net goodwill, beginning of period			3,565
Other adjustments			25
Goodwill, end of period	4,170		4,170
Impairments, end of period	(580)		(580)
Net goodwill, end of period	3,590		3,590
Energy & Transportation
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period			2,738
Other adjustments			14
Goodwill, end of period	2,752		2,752
Reassigned goodwill			118
All Other
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period			49
Other adjustments			6
Goodwill, end of period	$ 55		$ 55

Investments in Debt and Equit58

Investments in Debt and Equity Securities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Schedule of Investments in Debt and Equity Securities
Cost Basis	$ 1,671	$ 1,577
Unrealized Pretax Net Gains (Losses)	55	58
Fair Value	1,726	1,635
U.S. treasury bonds
Schedule of Investments in Debt and Equity Securities
Cost Basis	9	9
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	9	9
Other U.S. and non-U.S. government bonds
Schedule of Investments in Debt and Equity Securities
Cost Basis	69	71
Unrealized Pretax Net Gains (Losses)	1	1
Fair Value	70	72
Corporate bonds
Schedule of Investments in Debt and Equity Securities
Cost Basis	718	701
Unrealized Pretax Net Gains (Losses)	16	7
Fair Value	734	708
Asset-backed securities
Schedule of Investments in Debt and Equity Securities
Cost Basis	135	129
Unrealized Pretax Net Gains (Losses)	2	0
Fair Value	137	129
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Cost Basis	294	291
Unrealized Pretax Net Gains (Losses)	6	1
Fair Value	300	292
Residential
Schedule of Investments in Debt and Equity Securities
Cost Basis	11	12
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	11	12
Commercial
Schedule of Investments in Debt and Equity Securities
Cost Basis	57	59
Unrealized Pretax Net Gains (Losses)	1	2
Fair Value	58	61
Large capitalization value
Schedule of Investments in Debt and Equity Securities
Cost Basis	270	243
Unrealized Pretax Net Gains (Losses)	18	30
Fair Value	288	273
Real estate investment trust (REIT)
Schedule of Investments in Debt and Equity Securities
Cost Basis	63	25
Unrealized Pretax Net Gains (Losses)	1	0
Fair Value	64	25
Smaller company growth
Schedule of Investments in Debt and Equity Securities
Cost Basis	45	37
Unrealized Pretax Net Gains (Losses)	10	17
Fair Value	$ 55	$ 54

Investments in Debt and Equit59

Investments in Debt and Equity Securities (Details 2) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Less than 12 months
Fair Value	$ 90	$ 572
Unrealized Losses	12	14
12 months or more
Fair Value	19	96
Unrealized Losses	2	3
Total
Fair Value	109	668
Unrealized Losses	14	17
Corporate bonds
Less than 12 months
Fair Value		242
Unrealized Losses		3
12 months or more
Fair Value		27
Unrealized Losses		1
Total
Fair Value		269
Unrealized Losses		4
Asset-backed securities
Less than 12 months
Fair Value	0	84
Unrealized Losses	0	1
12 months or more
Fair Value	10	10
Unrealized Losses	1	1
Total
Fair Value	10	94
Unrealized Losses	1	2
U.S. governmental agency mortgage-backed securities
Less than 12 months
Fair Value		135
Unrealized Losses		1
12 months or more
Fair Value		57
Unrealized Losses		1
Total
Fair Value		192
Unrealized Losses		2
Large capitalization value
Less than 12 months
Fair Value	77	97
Unrealized Losses	8	8
12 months or more
Fair Value	9	2
Unrealized Losses	1	0
Total
Fair Value	86	99
Unrealized Losses	9	8
Smaller company growth
Less than 12 months
Fair Value	13	14
Unrealized Losses	4	1
12 months or more
Fair Value	0	0
Unrealized Losses	0	0
Total
Fair Value	13	14
Unrealized Losses	$ 4	$ 1

Investments in Debt and Equit60

Investments in Debt and Equity Securities (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost Basis	$ 193		$ 193
Due after one year through five years, Cost Basis	651		651
Due after five through ten years, Cost Basis	56		56
Due after ten years, Cost Basis	31		31
Due in one year or less, Fair Value	194		194
Due after one year through five years, Fair Value	667		667
Due after five years through ten years, Fair Value	58		58
Due after ten years, Fair Value	31		31
Cost Basis	1,293		1,293
Fair Value	1,319		1,319
Schedule of Investments in Debt and Equity Securities
Cost Basis	1,671		1,671		$ 1,577
Available-for-sale securities, Fair Value	1,726		1,726		1,635
Available-for-sale Securities, Proceeds, Gains and Losses
Proceeds from the sale of available-for-sale securities	146	$ 45	195	$ 128
Gross gains from the sale of available-for-sale securities	32	1	33	6
Gross losses from the sale of available-for-sale securities	1	$ 0	2	$ 1
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Cost Basis	294		294		291
Available-for-sale securities, Fair Value	300		300		292
Residential
Schedule of Investments in Debt and Equity Securities
Cost Basis	11		11		12
Available-for-sale securities, Fair Value	11		11		12
Commercial
Schedule of Investments in Debt and Equity Securities
Cost Basis	57		57		59
Available-for-sale securities, Fair Value	$ 58		$ 58		$ 61

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension Benefits
Pension contributions
Contributions to pension plans	$ 33	$ 36	$ 96	$ 113
Expected full year contributions to pension plans during the year	150		150
U.S. Pension Benefits
Components of net periodic benefit cost:
Service cost	29	45	59	91
Interest cost	130	152	259	303
Expected return on plan assets	(189)	(224)	(378)	(448)
Amortization of prior service cost / (credit)	0	0	0	0
Net actuarial loss / (gain)	0	(8)	0	(8)
Net periodic benefit cost (benefit), excluding curtailments, settlements and termination benefits	(30)	(35)	(60)	(62)
Curtailments, settlements and termination benefits	0	(19)	0	(19)
Total cost (benefit) included in operating profit	(30)	(54)	$ (60)	$ (81)
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost			4.50%	3.80%
Discount rate used to measure interest cost			3.40%	3.80%
Expected return on plan assets (as a percent)			6.90%	7.40%
Rate of compensation increase (as a percent)			4.00%	4.00%
Non-U.S. Pension Benefits
Components of net periodic benefit cost:
Service cost	23	28	$ 46	$ 57
Interest cost	30	36	60	75
Expected return on plan assets	(59)	(68)	(117)	(137)
Amortization of prior service cost / (credit)	0	0	0	0
Net actuarial loss / (gain)	0	0	0	0
Net periodic benefit cost (benefit), excluding curtailments, settlements and termination benefits	(6)	(4)	(11)	(5)
Curtailments, settlements and termination benefits	0	0	0	0
Total cost (benefit) included in operating profit	(6)	(4)	$ (11)	$ (5)
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost			2.90%	3.30%
Discount rate used to measure interest cost			2.80%	3.30%
Expected return on plan assets (as a percent)			6.10%	6.80%
Rate of compensation increase (as a percent)			3.50%	4.00%
Other Postretirement Benefits
Components of net periodic benefit cost:
Service cost	21	25	$ 41	$ 50
Interest cost	32	46	65	92
Expected return on plan assets	(11)	(14)	(22)	(28)
Amortization of prior service cost / (credit)	(15)	(14)	(30)	(27)
Net actuarial loss / (gain)	0	0	0	0
Net periodic benefit cost (benefit), excluding curtailments, settlements and termination benefits	27	43	54	87
Curtailments, settlements and termination benefits	0	0	(2)	0
Total cost (benefit) included in operating profit	27	$ 43	$ 52	$ 87
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost			4.40%	3.90%
Discount rate used to measure interest cost			3.30%	3.90%
Expected return on plan assets (as a percent)			7.50%	7.80%
Rate of compensation increase (as a percent)			4.00%	4.00%
Restatement Adjustment
Defined Benefit Plan Disclosure
Pension and other postretirement benefits (OPEB) expense	$ 45		$ 90
Change in Accounting Estimate, Effect of Change on Diluted Earnings Per Share	$ 0.05		$ 0.10
Previous Accounting Method | U.S. Pension Benefits
Defined Benefit Plan Disclosure
Discount rate (as a percent)			4.20%
Previous Accounting Method | Non-U.S. Pension Benefits
Defined Benefit Plan Disclosure
Discount rate (as a percent)			3.20%
Previous Accounting Method | Other Postretirement Benefits
Defined Benefit Plan Disclosure
Discount rate (as a percent)			4.10%

Postretirement Benefits (Deta62

Postretirement Benefits (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Defined contribution plans
Costs related to defined contribution plans	$ 84	$ 95	$ 187	$ 196
U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	67	74	152	157
Non-U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	$ 17	$ 21	$ 35	$ 39

Guarantees and Product Warran63

Guarantees and Product Warranty (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Feb. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 12	$ 12
Guarantor Obligations
Guarantees, maximum potential amount of future payments	683	681
Special-Purpose Corporation assets in Consolidated Statement of Financial Position	1,327	1,211
Special-Purpose Corporation liabilities in Consolidated Statement of Financial Position	1,327	1,210
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	196	216
Customer loan guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	72	47
Supplier consortium performance guarantee
Guarantor Obligations
Guarantees, maximum potential amount of future payments	293	286
Third party logistics business lease guarantees
Guarantor Obligations
Percentage of equity interest sold			35.00%
Guarantees, maximum potential amount of future payments	97	107
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 25	$ 25

Guarantees and Product Warran64

Guarantees and Product Warranty (Details 2) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,354	$ 1,426
Reduction in liability (payments)	(424)	(874)
Increase in liability (new warranties)	403	802
Warranty liability, ending balance	$ 1,333	$ 1,354

Profit Per Share (Details)

Profit Per Share (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jan. 31, 2014
Earnings Per Share [Abstract]
Profit for the period (A) (in dollars)	[1]	$ 550	$ 802	$ 821	$ 2,047
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)		584,100,000	603,200,000	583,400,000	604,100,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)		4,500,000	7,500,000	4,800,000	7,700,000
Average common shares outstanding for fully diluted computation (C) (in shares)	[2]	588,600,000	610,700,000	588,200,000	611,800,000
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)		$ 0.94	$ 1.33	$ 1.41	$ 3.39
Assuming full dilution (A/C) (in dollars per share)	[2]	$ 0.93	$ 1.31	$ 1.40	$ 3.34
Shares outstanding as of June 30 (in shares)		584,200,000	602,600,000	584,200,000	602,600,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)		26,168,384	22,329,106	28,919,076	22,329,106
Common stock repurchase
Stock repurchase program, authorized amount						$ 10,000
Common shares repurchased (in shares)			1,400,000	0	6,208,074
Payments for repurchase of common stock			$ 125	$ 0	$ 525
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 Comprehensi66

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	$ (1,493)	$ (1,838)	$ (2,035)	$ (1,059)
Other comprehensive income (loss) before reclassifications	(112)	229	429	(563)
Amounts reclassified from accumulated other comprehensive (income) loss	(28)	15	(27)	28
Other comprehensive income (loss)	(140)	244	402	(535)
Accumulated other comprehensive income (loss), end of period	(1,633)	(1,594)	(1,633)	(1,594)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	(1,545)	(1,778)	(1,953)	(992)
Other comprehensive income (loss) before reclassifications	(103)	224	305	(562)
Amounts reclassified from accumulated other comprehensive (income) loss	0	0	0	0
Other comprehensive income (loss)	(103)	224	305	(562)
Accumulated other comprehensive income (loss), end of period	(1,648)	(1,554)	(1,648)	(1,554)
Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	39	(40)	(69)	(31)
Other comprehensive income (loss) before reclassifications	(1)	0	117	0
Amounts reclassified from accumulated other comprehensive (income) loss	(9)	(9)	(19)	(18)
Other comprehensive income (loss)	(10)	(9)	98	(18)
Accumulated other comprehensive income (loss), end of period	29	(49)	29	(49)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	(32)	(109)	(50)	(119)
Other comprehensive income (loss) before reclassifications	(18)	11	(9)	(3)
Amounts reclassified from accumulated other comprehensive (income) loss	1	25	10	49
Other comprehensive income (loss)	(17)	36	1	46
Accumulated other comprehensive income (loss), end of period	(49)	(73)	(49)	(73)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	45	89	37	83
Other comprehensive income (loss) before reclassifications	10	(6)	16	2
Amounts reclassified from accumulated other comprehensive (income) loss	(20)	(1)	(18)	(3)
Other comprehensive income (loss)	(10)	(7)	(2)	(1)
Accumulated other comprehensive income (loss), end of period	$ 35	$ 82	$ 35	$ 82

Accumulated Other Comprehensi67

Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)		$ 84	$ (72)	$ 84	$ 122
Interest expense excluding Financial Products		(130)	(125)	(259)	(254)
Interest expense of Financial Products		(148)	(148)	(300)	(298)
Tax (provision) benefit		(184)	(335)	(276)	(856)
Reclassifications net of tax	[1]	550	802	821	2,047
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications net of tax		28	(15)	27	(28)
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Amortization of prior service credit (cost)		15	14	30	27
Tax (provision) benefit		(6)	(5)	(11)	(9)
Reclassifications net of tax		9	9	19	18
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications before tax		(2)	(40)	(16)	(78)
Tax (provision) benefit		1	15	6	29
Reclassifications net of tax		(1)	(25)	(10)	(49)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)		0	(37)	(10)	(72)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Machinery, Energy & Transportation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Interest expense excluding Financial Products		(1)	(1)	(3)	(3)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Financial Products
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Interest expense of Financial Products		(1)	(2)	(3)	(3)
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)		30	1	27	4
Tax (provision) benefit		(10)	0	(9)	(1)
Reclassifications net of tax		$ 20	$ 1	$ 18	$ 3
[1]	1 Profit attributable to common stockholders.

Environmental and legal matte68

Environmental and legal matters Environmental and legal matters (Details)	Mar. 20, 2014
Companies
Loss Contingencies
Number of Defendants	18
Individuals
Loss Contingencies
Number of Defendants	100
Subsidiaries
Loss Contingencies
Number of Defendants	2
Current employees
Loss Contingencies
Number of Defendants	2
Former employees
Loss Contingencies
Number of Defendants	1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Estimated annual effective tax rate (as a percent)	25.00%	29.50%	25.50%
Prior year tax adjustment expense (benefit)			$ 42
Tax Year Prior Years
Income Tax Contingency
Income tax examination, proposed liability increase/(decrease)	$ 1,000
Income tax adjustment	$ 125

Segment Information (Details)

Segment Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)group_presidentssegmentsdealers	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting Information
Number of group presidents | group_presidents			5
Number of operating segments | segments			6
Useful life to amortize goodwill for segment assets			20 years
Reportable Segments
Sales and revenues	$ 10,342	$ 12,317	$ 19,803	$ 25,019
Depreciation and amortization	754	761	1,494	1,514
Consolidated profit before taxes	739	1,136	1,104	2,903
Segment assets	78,300		78,300		$ 78,342
Capital expenditures	865	645	$ 1,605	1,471
All Other operating segments
Segment Reporting Information
Number of group presidents | group_presidents			1
Number of smaller operating segments led by Group President | group_presidents			2
Number of wholly-owned dealers involved in segment reallocation | dealers			1
Reportable Segments
Sales and revenues	41	55	$ 79	127
Depreciation and amortization	53	51	105	100
Consolidated profit before taxes	(14)	(18)	(21)	(25)
Segment assets	1,346		1,346		1,405
Capital expenditures	51	28	67	53
Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	11,119	13,211	$ 21,343	26,810
Reportable Segments
Segment Reporting Information
Number of operating segments led by Group Presidents | segments			3
Number of operating segments led by Group President responsible for corporate services | segments			1
Reportable Segments
Number of reportable segments | segments			4
Sales and revenues	10,392	12,344	$ 19,905	25,039
Depreciation and amortization	651	674	1,290	1,343
Consolidated profit before taxes	1,191	1,741	2,113	3,833
Segment assets	58,870		58,870		59,605
Capital expenditures	807	667	1,314	1,195
Intersegment Eliminations
Reportable Segments
Sales and revenues	727	867	1,438	1,771
Machinery, Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	10,360	12,426	19,841	25,230
Machinery, Energy & Transportation | Reportable Segments
Reportable Segments
Sales and revenues	9,633	11,559	18,403	23,459
Depreciation and amortization	438	461	872	915
Consolidated profit before taxes	989	1,557	1,743	3,422
Segment assets	21,869		21,869		23,876
Capital expenditures	195	325	405	559
Machinery, Energy & Transportation | Intersegment Eliminations
Reportable Segments
Sales and revenues	727	867	1,438	1,771
Construction Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	4,438	4,829	8,489	9,866
Construction Industries | Reportable Segments
Reportable Segments
Sales and revenues	4,426	4,803	8,469	9,817
Depreciation and amortization	116	140	229	280
Consolidated profit before taxes	550	588	990	1,333
Segment assets	5,515		5,515		6,176
Capital expenditures	40	54	68	94
Construction Industries | Intersegment Eliminations
Reportable Segments
Sales and revenues	12	26	20	49
Resource Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	1,514	2,123	3,034	4,181
Resource Industries | Reportable Segments
Reportable Segments
Sales and revenues	1,457	2,048	2,906	4,019
Depreciation and amortization	153	150	308	297
Consolidated profit before taxes	(163)	27	(259)	123
Segment assets	8,193		8,193		8,931
Capital expenditures	59	44	94	79
Resource Industries | Intersegment Eliminations
Reportable Segments
Sales and revenues	57	75	128	162
Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	4,408	5,474	8,318	11,183
Energy & Transportation | Reportable Segments
Reportable Segments
Sales and revenues	3,750	4,708	7,028	9,623
Depreciation and amortization	169	171	335	338
Consolidated profit before taxes	602	942	1,012	1,966
Segment assets	8,161		8,161		8,769
Capital expenditures	96	227	243	386
Energy & Transportation | Intersegment Eliminations
Reportable Segments
Sales and revenues	658	766	1,290	1,560
Financial Products Segment | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	759	785	1,502	1,580
Financial Products Segment | Reportable Segments
Reportable Segments
Sales and revenues	759	785	1,502	1,580
Depreciation and amortization	213	213	418	428
Consolidated profit before taxes	202	184	370	411
Segment assets	37,001		37,001		$ 35,729
Capital expenditures	612	342	909	636
Financial Products Segment | Intersegment Eliminations
Reportable Segments
Sales and revenues	$ 0	$ 0	$ 0	$ 0

Segment Information (Details 2)

Segment Information (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of Sales and revenues
Sales and revenues	$ 10,342	$ 12,317	$ 19,803	$ 25,019
Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	10,392	12,344	19,905	25,039
All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	41	55	79	127
Other
Reconciliation of Sales and revenues
Sales and revenues	(91)	(82)	(181)	(147)
Consolidating Adjustments
Reconciliation of Sales and revenues
Sales and revenues	(81)	(71)	(159)	(143)
Consolidating Adjustments | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	0	0	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	0	0	0	0
Consolidating Adjustments | Other
Reconciliation of Sales and revenues
Sales and revenues	(81)	(71)	(159)	(143)
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	9,633	11,559	18,403	23,459
Machinery, Energy & Transportation | Business
Reconciliation of Sales and revenues
Sales and revenues	9,645	11,583	18,425	23,544
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	9,633	11,559	18,403	23,459
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	41	55	79	127
Machinery, Energy & Transportation | Business | Other
Reconciliation of Sales and revenues
Sales and revenues	(29)	(31)	(57)	(42)
Financial Products | Business
Reconciliation of Sales and revenues
Sales and revenues	778	805	1,537	1,618
Financial Products | Business | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	759	785	1,502	1,580
Financial Products | Business | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	0	0	0	0
Financial Products | Business | Other
Reconciliation of Sales and revenues
Sales and revenues	$ 19	$ 20	$ 35	$ 38

Segment Information (Details 3)

Segment Information (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 739	$ 1,136	$ 1,104	$ 2,903
Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	1,191	1,741	2,113	3,833
All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(14)	(18)	(21)	(25)
Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	14	(10)	39	8
Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(149)	(175)	(308)	(315)
Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	9	(41)	41	(22)
Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(139)	(86)	(300)	(121)
Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(16)	27	(19)	(8)
Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	56	82	111	151
Stock-Based Compensation Expense [Member]
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(45)	(58)	(146)	(193)
Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(132)	(130)	(267)	(266)
Equity in Profit/Loss of Unconsolidated Affiliated Companies
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(2)	(2)		(4)
Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	28	(132)	(12)	(122)
Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(54)	(56)	(110)	3
Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(8)	(6)	(17)	(16)
Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	1,177	1,723	2,092	3,808
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	989	1,557	1,743	3,422
Machinery, Energy & Transportation | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	540	951	738	2,489
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	989	1,557	1,743	3,422
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(14)	(18)	(21)	(25)
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	14	(10)	39	8
Machinery, Energy & Transportation | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(149)	(175)	(308)	(315)
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	9	(41)	41	(22)
Machinery, Energy & Transportation | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(137)	(86)	(296)	(121)
Machinery, Energy & Transportation | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(16)	27	(19)	(8)
Machinery, Energy & Transportation | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	56	82	111	151
Machinery, Energy & Transportation | Business | Stock-Based Compensation Expense [Member]
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(43)	(55)	(140)	(184)
Machinery, Energy & Transportation | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(132)	(130)	(267)	(266)
Machinery, Energy & Transportation | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(2)	(2)		(4)
Machinery, Energy & Transportation | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	28	(132)	(12)	(122)
Machinery, Energy & Transportation | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(54)	(56)	(110)	3
Machinery, Energy & Transportation | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(9)	(10)	(23)	(28)
Financial Products | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	199	185	366	414
Financial Products | Business | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	202	184	370	411
Financial Products | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(2)	0	(4)	0
Financial Products | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Stock-Based Compensation Expense [Member]
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(2)	(3)	(6)	(9)
Financial Products | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Equity in Profit/Loss of Unconsolidated Affiliated Companies
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0		0
Financial Products | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0	0
Financial Products | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 1	$ 4	$ 6	$ 12

Segment Information (Details 4)

Segment Information (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Reconciliation of restructuring
Consolidated profit before taxes	$ 739	$ 1,136	$ 1,104	$ 2,903
Restructuring costs	(139)	(86)	(300)	(121)	$ (898)
Reportable Segments
Reconciliation of restructuring
Consolidated profit before taxes	1,191	1,741	2,113	3,833
Reportable Segments | Construction Industries
Reconciliation of restructuring
Consolidated profit before taxes	550	588	990	1,333
Reportable Segments | Resource Industries
Reconciliation of restructuring
Consolidated profit before taxes	(163)	27	(259)	123
Reportable Segments | Energy & Transportation
Reconciliation of restructuring
Consolidated profit before taxes	602	942	1,012	1,966
Reportable Segments | Financial Products Segment
Reconciliation of restructuring
Consolidated profit before taxes	202	184	370	411
All Other operating segments
Reconciliation of restructuring
Consolidated profit before taxes	(14)	(18)	(21)	(25)
Business
Reconciliation of restructuring
Consolidated profit before taxes	1,177	1,723	2,092	3,808
Restructuring costs	(138)	(81)	(292)	(116)
Consolidated profit before taxes with restructuring costs	1,039	1,642	1,800	3,692
Business | Reportable Segments | Construction Industries
Reconciliation of restructuring
Consolidated profit before taxes	550	588	990	1,333
Restructuring costs	(3)	(32)	(25)	(55)
Consolidated profit before taxes with restructuring costs	547	556	965	1,278
Business | Reportable Segments | Resource Industries
Reconciliation of restructuring
Consolidated profit before taxes	(163)	27	(259)	123
Restructuring costs	(69)	(36)	(94)	(44)
Consolidated profit before taxes with restructuring costs	(232)	(9)	(353)	79
Business | Reportable Segments | Energy & Transportation
Reconciliation of restructuring
Consolidated profit before taxes	602	942	1,012	1,966
Restructuring costs	(55)	(11)	(155)	(14)
Consolidated profit before taxes with restructuring costs	547	931	857	1,952
Business | Reportable Segments | Financial Products Segment
Reconciliation of restructuring
Consolidated profit before taxes	202	184	370	411
Restructuring costs	(2)	0	(4)	0
Consolidated profit before taxes with restructuring costs	200	184	366	411
Business | All Other operating segments | All Other
Reconciliation of restructuring
Consolidated profit before taxes	(14)	(18)	(21)	(25)
Restructuring costs	(9)	(2)	(14)	(3)
Consolidated profit before taxes with restructuring costs	$ (23)	$ (20)	$ (35)	$ (28)

Segment Information (Details 5)

Segment Information (Details 5) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Reconciliation of Assets
Total assets	$ 78,300	$ 78,342
Reportable Segments
Reconciliation of Assets
Total assets	58,870	59,605
All Other operating segments
Reconciliation of Assets
Total assets	1,346	1,405
Cash and Short Term Investments
Reconciliation of Assets
Total assets	5,579	5,340
Intercompany Receivables
Reconciliation of Assets
Total assets	0	0
Investment in Financial Products
Reconciliation of Assets
Total assets	0	0
Deferred Income Taxes
Reconciliation of Assets
Total assets	2,449	2,415
Goodwill and Intangible Assets
Reconciliation of Assets
Total assets	4,026	3,571
Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Total assets	2,038	1,585
Operating Lease Methodology Difference
Reconciliation of Assets
Total assets	(178)	(213)
Inventory Methodology Differences
Reconciliation of Assets
Total assets	(2,303)	(2,646)
Intercompany Loan Included in Financial Products' Assets
Reconciliation of Assets
Total assets	(1,000)
Liabilities Included in Segment Assets
Reconciliation of Assets
Total assets	7,927	8,017
Other
Reconciliation of Assets
Total assets	(454)	(737)
Consolidating Adjustments
Reconciliation of Assets
Total assets	(8,082)	(5,845)
Consolidating Adjustments | Reportable Segments
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Cash and Short Term Investments
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Intercompany Receivables
Reconciliation of Assets
Total assets	(1,985)	(1,087)
Consolidating Adjustments | Investment in Financial Products
Reconciliation of Assets
Total assets	(4,253)	(3,888)
Consolidating Adjustments | Deferred Income Taxes
Reconciliation of Assets
Total assets	(774)	(793)
Consolidating Adjustments | Goodwill and Intangible Assets
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Operating Lease Methodology Difference
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Inventory Methodology Differences
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Intercompany Loan Included in Financial Products' Assets
Reconciliation of Assets
Total assets	(1,000)
Consolidating Adjustments | Liabilities Included in Segment Assets
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Other
Reconciliation of Assets
Total assets	(70)	(77)
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Assets
Total assets	21,869	23,876
Machinery, Energy & Transportation | Business
Reconciliation of Assets
Total assets	49,414	48,551
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Assets
Total assets	21,869	23,876
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Assets
Total assets	1,346	1,405
Machinery, Energy & Transportation | Business | Cash and Short Term Investments
Reconciliation of Assets
Total assets	5,579	5,340
Machinery, Energy & Transportation | Business | Intercompany Receivables
Reconciliation of Assets
Total assets	1,985	1,087
Machinery, Energy & Transportation | Business | Investment in Financial Products
Reconciliation of Assets
Total assets	4,253	3,888
Machinery, Energy & Transportation | Business | Deferred Income Taxes
Reconciliation of Assets
Total assets	3,223	3,208
Machinery, Energy & Transportation | Business | Goodwill and Intangible Assets
Reconciliation of Assets
Total assets	4,026	3,571
Machinery, Energy & Transportation | Business | Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Total assets	2,038	1,585
Machinery, Energy & Transportation | Business | Operating Lease Methodology Difference
Reconciliation of Assets
Total assets	(178)	(213)
Machinery, Energy & Transportation | Business | Inventory Methodology Differences
Reconciliation of Assets
Total assets	(2,303)	(2,646)
Machinery, Energy & Transportation | Business | Intercompany Loan Included in Financial Products' Assets
Reconciliation of Assets
Total assets	0
Machinery, Energy & Transportation | Business | Liabilities Included in Segment Assets
Reconciliation of Assets
Total assets	7,927	8,017
Machinery, Energy & Transportation | Business | Other
Reconciliation of Assets
Total assets	(351)	(567)
Financial Products | Business
Reconciliation of Assets
Total assets	36,968	35,636
Financial Products | Business | Reportable Segments
Reconciliation of Assets
Total assets	37,001	35,729
Financial Products | Business | All Other operating segments
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Cash and Short Term Investments
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Intercompany Receivables
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Investment in Financial Products
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Deferred Income Taxes
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Goodwill and Intangible Assets
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Operating Lease Methodology Difference
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Inventory Methodology Differences
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Intercompany Loan Included in Financial Products' Assets
Reconciliation of Assets
Total assets	0
Financial Products | Business | Liabilities Included in Segment Assets
Reconciliation of Assets
Total assets	0	0
Financial Products | Business | Other
Reconciliation of Assets
Total assets	$ (33)	$ (93)

Segment Information (Details 6)

Segment Information (Details 6) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of Depreciation and amortization
Total depreciation and amortization	$ 754	$ 761	$ 1,494	$ 1,514
Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	651	674	1,290	1,343
All Other operating segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	53	51	105	100
Cost Centers
Reconciliation of Depreciation and amortization
Total depreciation and amortization	38	38	78	75
Other
Reconciliation of Depreciation and amortization
Total depreciation and amortization	12	(2)	21	(4)
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	438	461	872	915
Machinery, Energy & Transportation | Business
Reconciliation of Depreciation and amortization
Total depreciation and amortization	531	540	1,056	1,070
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	438	461	872	915
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	53	51	105	100
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Depreciation and amortization
Total depreciation and amortization	38	38	78	75
Machinery, Energy & Transportation | Business | Other
Reconciliation of Depreciation and amortization
Total depreciation and amortization	2	(10)	1	(20)
Financial Products | Business
Reconciliation of Depreciation and amortization
Total depreciation and amortization	223	221	438	444
Financial Products | Business | Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	213	213	418	428
Financial Products | Business | All Other operating segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	0	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Depreciation and amortization
Total depreciation and amortization	0	0	0	0
Financial Products | Business | Other
Reconciliation of Depreciation and amortization
Total depreciation and amortization	$ 10	$ 8	$ 20	$ 16

Segment Information (Details 7)

Segment Information (Details 7) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of Capital expenditures
Total capital expenditures	$ 865	$ 645	$ 1,605	$ 1,471
Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	807	667	1,314	1,195
All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	51	28	67	53
Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	16	27	28	46
Timing
Reconciliation of Capital expenditures
Total capital expenditures		(19)	217	234
Other
Reconciliation of Capital expenditures
Total capital expenditures	(9)	(58)	(21)	(57)
Consolidating Adjustments
Reconciliation of Capital expenditures
Total capital expenditures	(8)	(11)	(17)	(19)
Consolidating Adjustments | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0	0
Consolidating Adjustments | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0	0
Consolidating Adjustments | Timing
Reconciliation of Capital expenditures
Total capital expenditures		0	0	0
Consolidating Adjustments | Other
Reconciliation of Capital expenditures
Total capital expenditures	(8)	(11)	(17)	(19)
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	195	325	405	559
Machinery, Energy & Transportation | Business
Reconciliation of Capital expenditures
Total capital expenditures	239	282	618	759
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	195	325	405	559
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	51	28	67	53
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	16	27	28	46
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures		(19)	217	234
Machinery, Energy & Transportation | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	(23)	(79)	(99)	(133)
Financial Products | Business
Reconciliation of Capital expenditures
Total capital expenditures	634	374	1,004	731
Financial Products | Business | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	612	342	909	636
Financial Products | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0	0
Financial Products | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures		0	0	0
Financial Products | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	$ 22	$ 32	$ 95	$ 95

Cat Financial Financing Activ77

Cat Financial Financing Activities (Details) - Finance Receivables - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2016	Dec. 31, 2015
Allowance for Credit Loss Activity
Balance at beginning of year	$ 336	$ 398
Receivables written off	(79)	(196)
Recoveries on receivables previously written off	15	41
Provision for credit losses	65	118
Other	7	(25)
Balance at end of period	344	336
Allowance for Credit Losses
Individually evaluated for impairment			$ 69	$ 65
Collectively evaluated for impairment			275	271
Ending Balance	336	398	344	336
Recorded Investment in Finance Receivables
Individually evaluated for impairment			676	601
Collectively evaluated for impairment			22,536	22,358
Ending balance-recorded investment in finance receivables			23,212	22,959
Customer
Allowance for Credit Loss Activity
Balance at beginning of year	327	388
Receivables written off	(79)	(196)
Recoveries on receivables previously written off	15	41
Provision for credit losses	64	119
Other	7	(25)
Balance at end of period	334	327
Allowance for Credit Losses
Individually evaluated for impairment			69	65
Collectively evaluated for impairment			265	262
Ending Balance	327	388	334	327
Recorded Investment in Finance Receivables
Individually evaluated for impairment			676	601
Collectively evaluated for impairment			18,870	18,788
Ending balance-recorded investment in finance receivables			19,546	19,389
Dealer
Allowance for Credit Loss Activity
Balance at beginning of year	9	10
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	1	(1)
Other	0	0
Balance at end of period	10	9
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			10	9
Ending Balance	$ 9	$ 10	10	9
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			3,666	3,570
Ending balance-recorded investment in finance receivables			$ 3,666	$ 3,570

Cat Financial Financing Activ78

Cat Financial Financing Activities (Details 2) - Finance Receivables - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	$ 874	$ 596
Current	22,338	22,363
Total Finance Receivables	23,212	22,959
91+ Still Accruing	73	22
31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	196	135
61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	87	64
91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	591	397
Customer
Aging related to loans and finance leases
Total Finance Receivables	19,546	19,389
Customer | North America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	152	87
Current	7,968	7,850
Total Finance Receivables	8,120	7,937
91+ Still Accruing	8	4
Customer | North America | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	64	45
Customer | North America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	18	12
Customer | North America | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	70	30
Customer | Europe
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	106	69
Current	2,381	2,358
Total Finance Receivables	2,487	2,427
91+ Still Accruing	46	9
Customer | Europe | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	18	18
Customer | Europe | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	9	7
Customer | Europe | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	79	44
Customer | Asia Pacific
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	67	54
Current	1,567	1,647
Total Finance Receivables	1,634	1,701
91+ Still Accruing	8	6
Customer | Asia Pacific | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	29	21
Customer | Asia Pacific | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	12	12
Customer | Asia Pacific | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	26	21
Customer | Mining
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	84	75
Current	1,765	1,793
Total Finance Receivables	1,849	1,868
91+ Still Accruing	10	1
Customer | Mining | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	8	6
Customer | Mining | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	4	1
Customer | Mining | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	72	68
Customer | Latin America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	389	275
Current	1,956	1,998
Total Finance Receivables	2,345	2,273
91+ Still Accruing	0	0
Customer | Latin America | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	57	45
Customer | Latin America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	27	31
Customer | Latin America | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	305	199
Customer | Caterpillar Power Finance
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	76	36
Current	3,035	3,147
Total Finance Receivables	3,111	3,183
91+ Still Accruing	1	2
Customer | Caterpillar Power Finance | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	20	0
Customer | Caterpillar Power Finance | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	17	1
Customer | Caterpillar Power Finance | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	39	35
Dealer
Aging related to loans and finance leases
Total Finance Receivables	3,666	3,570
Dealer | North America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Current	2,304	2,209
Total Finance Receivables	2,304	2,209
91+ 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 of 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	126	149
Total Finance Receivables	126	149
91+ 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 of 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	585	552
Total Finance Receivables	585	552
91+ 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 of 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	4
Total Finance Receivables	4	4
91+ 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 of 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	645	653
Total Finance Receivables	645	653
91+ 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 of 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	2	3
Total Finance Receivables	2	3
91+ 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 of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	$ 0	$ 0

Cat Financial Financing Activ79

Cat Financial Financing Activities (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Dealer
Impaired finance receivables
Recorded Investment, Total	$ 0		$ 0		$ 0
Finance Receivables | Customer
Impaired finance receivables
Recorded Investment With No Allowance Recorded	481		481		408
Unpaid Principal Balance With No Allowance Recorded	479		479		407
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	195		195		193
Unpaid Principal Balance With An Allowance Recorded	192		192		191
Related Allowance With An Allowance Recorded	69		69		65
Recorded Investment, Total	676		676		601
Unpaid Principal Balance, Total	671		671		598
Related Allowance, Total	69		69		65
Average Recorded Investment With No Allowance Recorded	453	$ 344	435	$ 328
Interest Income Recognized With No Allowance Recorded	3	2	7	5
Average Recorded Investment With An Allowance Recorded	188	307	186	300
Interest Income Recognized With An Allowance Recorded	2	3	4	5
Average Recorded Investment, Total	641	651	621	628
Interest Income Recognized, Total	5	5	11	10
Finance Receivables | Customer | North America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	33		33		12
Unpaid Principal Balance With No Allowance Recorded	33		33		12
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	33		33		14
Unpaid Principal Balance With An Allowance Recorded	31		31		13
Related Allowance With An Allowance Recorded	11		11		4
Recorded Investment, Total	66		66		26
Unpaid Principal Balance, Total	64		64		25
Related Allowance, Total	11		11		4
Average Recorded Investment With No Allowance Recorded	24	12	19	13
Interest Income Recognized With No Allowance Recorded	1	0	1	0
Average Recorded Investment With An Allowance Recorded	25	6	20	6
Interest Income Recognized With An Allowance Recorded	0	0	0	0
Average Recorded Investment, Total	49	18	39	19
Interest Income Recognized, Total	1	0	1	0
Finance Receivables | Customer | Europe
Impaired finance receivables
Recorded Investment With No Allowance Recorded	49		49		41
Unpaid Principal Balance With No Allowance Recorded	48		48		41
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	12		12		11
Unpaid Principal Balance With An Allowance Recorded	11		11		10
Related Allowance With An Allowance Recorded	7		7		5
Recorded Investment, Total	61		61		52
Unpaid Principal Balance, Total	59		59		51
Related Allowance, Total	7		7		5
Average Recorded Investment With No Allowance Recorded	44	42	43	43
Interest Income Recognized With No Allowance Recorded	0	0	0	0
Average Recorded Investment With An Allowance Recorded	12	15	12	14
Interest Income Recognized With An Allowance Recorded	0	1	0	1
Average Recorded Investment, Total	56	57	55	57
Interest Income Recognized, Total	0	1	0	1
Finance Receivables | Customer | Asia Pacific
Impaired finance receivables
Recorded Investment With No Allowance Recorded	0		0		1
Unpaid Principal Balance With No Allowance Recorded	0		0		1
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	36		36		34
Unpaid Principal Balance With An Allowance Recorded	36		36		34
Related Allowance With An Allowance Recorded	5		5		4
Recorded Investment, Total	36		36		35
Unpaid Principal Balance, Total	36		36		35
Related Allowance, Total	5		5		4
Average Recorded Investment With No Allowance Recorded	3	2	2	2
Interest Income Recognized With No Allowance Recorded	0	0	0	0
Average Recorded Investment With An Allowance Recorded	36	41	35	34
Interest Income Recognized With An Allowance Recorded	1	1	2	1
Average Recorded Investment, Total	39	43	37	36
Interest Income Recognized, Total	1	1	2	1
Finance Receivables | Customer | Mining
Impaired finance receivables
Recorded Investment With No Allowance Recorded	81		81		84
Unpaid Principal Balance With No Allowance Recorded	81		81		84
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	10		10		11
Unpaid Principal Balance With An Allowance Recorded	10		10		11
Related Allowance With An Allowance Recorded	3		3		3
Recorded Investment, Total	91		91		95
Unpaid Principal Balance, Total	91		91		95
Related Allowance, Total	3		3		3
Average Recorded Investment With No Allowance Recorded	80	80	80	87
Interest Income Recognized With No Allowance Recorded	0	1	1	3
Average Recorded Investment With An Allowance Recorded	13	62	12	66
Interest Income Recognized With An Allowance Recorded	0	0	0	1
Average Recorded Investment, Total	93	142	92	153
Interest Income Recognized, Total	0	1	1	4
Finance Receivables | Customer | Latin America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	38		38		28
Unpaid Principal Balance With No Allowance Recorded	38		38		28
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	61		61		53
Unpaid Principal Balance With An Allowance Recorded	61		61		53
Related Allowance With An Allowance Recorded	27		27		21
Recorded Investment, Total	99		99		81
Unpaid Principal Balance, Total	99		99		81
Related Allowance, Total	27		27		21
Average Recorded Investment With No Allowance Recorded	29	32	29	32
Interest Income Recognized With No Allowance Recorded	0	0	0	0
Average Recorded Investment With An Allowance Recorded	57	51	54	49
Interest Income Recognized With An Allowance Recorded	0	0	1	1
Average Recorded Investment, Total	86	83	83	81
Interest Income Recognized, Total	0	0	1	1
Finance Receivables | Customer | Caterpillar Power Finance
Impaired finance receivables
Recorded Investment With No Allowance Recorded	280		280		242
Unpaid Principal Balance With No Allowance Recorded	279		279		241
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	43		43		70
Unpaid Principal Balance With An Allowance Recorded	43		43		70
Related Allowance With An Allowance Recorded	16		16		28
Recorded Investment, Total	323		323		312
Unpaid Principal Balance, Total	322		322		311
Related Allowance, Total	16		16		$ 28
Average Recorded Investment With No Allowance Recorded	273	176	262	151
Interest Income Recognized With No Allowance Recorded	2	1	5	2
Average Recorded Investment With An Allowance Recorded	45	132	53	131
Interest Income Recognized With An Allowance Recorded	1	1	1	1
Average Recorded Investment, Total	318	308	315	282
Interest Income Recognized, Total	$ 3	$ 2	$ 6	$ 3

Cat Financial Financing Activ80

Cat Financial Financing Activities (Details 4) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due
Period after which Collection of Future Income is Considered as Not Probable	120 days
Dealer
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 0	$ 0
Finance Receivables | Customer
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	613	485
Finance Receivables | Customer | North America
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	70	31
Finance Receivables | Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	33	39
Finance Receivables | Customer | Asia Pacific
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	18	15
Finance Receivables | Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	122	106
Finance Receivables | Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	311	217
Finance Receivables | Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 59	$ 77

Cat Financial Financing Activ81

Cat Financial Financing Activities (Details 5) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)Contracts	Jun. 30, 2015USD ($)Contracts	Jun. 30, 2016USD ($)Contracts	Jun. 30, 2015USD ($)Contracts	Dec. 31, 2015USD ($)
Customer
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	120	42	141	47
Pre-TDR Outstanding Recorded Investment	$ 183	$ 48	$ 235	$ 132
Post-TDR Outstanding Recorded Investment	$ 169	$ 48	$ 209	$ 129
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	10	1	31	6
Post-TDR Recorded Investment	$ 3	$ 0	$ 4	$ 1
Customer | North America
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	2	1	13	4
Pre-TDR Outstanding Recorded Investment	$ 6	$ 0	$ 16	$ 1
Post-TDR Outstanding Recorded Investment	$ 6	$ 0	$ 16	$ 1
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	9	1	13	5
Post-TDR Recorded Investment	$ 3	$ 0	$ 3	$ 1
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	3	19	3	19
Pre-TDR Outstanding Recorded Investment	$ 11	$ 2	$ 11	$ 2
Post-TDR Outstanding Recorded Investment	$ 8	$ 2	$ 8	$ 2
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts			13	0
Post-TDR Recorded Investment			$ 1	$ 0
Customer | Asia Pacific
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	0	20	4	20
Pre-TDR Outstanding Recorded Investment	$ 0	$ 25	$ 3	$ 25
Post-TDR Outstanding Recorded Investment	$ 0	$ 25	$ 3	$ 25
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts			3	0
Post-TDR Recorded Investment			$ 0	$ 0
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	1	0	1	0
Pre-TDR Outstanding Recorded Investment	$ 10	$ 0	$ 10	$ 0
Post-TDR Outstanding Recorded Investment	$ 5	$ 0	$ 5	$ 0
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	88	0	90	0
Pre-TDR Outstanding Recorded Investment	$ 12	$ 0	$ 12	$ 0
Post-TDR Outstanding Recorded Investment	$ 13	$ 0	$ 13	$ 0
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	1	0	2	1
Post-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 0
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	26	2	30	4
Pre-TDR Outstanding Recorded Investment	$ 144	$ 21	$ 183	$ 104
Post-TDR Outstanding Recorded Investment	$ 137	$ 21	$ 164	$ 101
Dealer
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	0	0	0	0
Finance Receivables | Customer
Finance receivables modified as TDRs
Remaining Commitments	$ 12		$ 12		$ 3

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Assets
Investments in debt and equity securities	$ 1,726	$ 1,635
Recurring basis
Assets
Investments in debt and equity securities	1,662	1,610
Derivative Assets (Liabilities), at Fair Value, Net	59	49
Total Assets	1,785	1,684
U.S. treasury bonds
Assets
Investments in debt and equity securities	9	9
U.S. treasury bonds | Recurring basis
Assets
Investments in debt and equity securities	9	9
Other U.S. and non-U.S. government bonds
Assets
Investments in debt and equity securities	70	72
Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Investments in debt and equity securities	70	72
Corporate bonds
Assets
Investments in debt and equity securities	734	708
Corporate bonds | Recurring basis
Assets
Investments in debt and equity securities	734	708
Asset-backed securities
Assets
Investments in debt and equity securities	137	129
Asset-backed securities | Recurring basis
Assets
Investments in debt and equity securities	137	129
U.S. governmental agency | Recurring basis
Assets
Investments in debt and equity securities	300	292
Residential
Assets
Investments in debt and equity securities	11	12
Residential | Recurring basis
Assets
Investments in debt and equity securities	11	12
Commercial
Assets
Investments in debt and equity securities	58	61
Commercial | Recurring basis
Assets
Investments in debt and equity securities	58	61
Large capitalization value
Assets
Investments in debt and equity securities	288	273
Large capitalization value | Recurring basis
Assets
Investments in debt and equity securities	288	273
Smaller company growth
Assets
Investments in debt and equity securities	55	54
Smaller company growth | Recurring basis
Assets
Investments in debt and equity securities	55	54
REIT
Assets
Investments in debt and equity securities	64	25
REIT | Recurring basis
Assets
Investments in debt and equity securities	64	25
Level 1 | Recurring basis
Assets
Investments in debt and equity securities	352	336
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Total Assets	352	336
Level 1 | U.S. treasury bonds | Recurring basis
Assets
Investments in debt and equity securities	9	9
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 1 | Corporate bonds | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 1 | Asset-backed securities | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 1 | U.S. governmental agency | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 1 | Residential | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 1 | Commercial | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 1 | Large capitalization value | Recurring basis
Assets
Investments in debt and equity securities	288	273
Level 1 | Smaller company growth | Recurring basis
Assets
Investments in debt and equity securities	55	54
Level 1 | REIT | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 2 | Recurring basis
Assets
Investments in debt and equity securities	1,310	1,274
Derivative Assets (Liabilities), at Fair Value, Net	59	49
Total Assets	1,369	1,323
Level 2 | U.S. treasury bonds | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Investments in debt and equity securities	70	72
Level 2 | Corporate bonds | Recurring basis
Assets
Investments in debt and equity securities	734	708
Level 2 | Asset-backed securities | Recurring basis
Assets
Investments in debt and equity securities	137	129
Level 2 | U.S. governmental agency | Recurring basis
Assets
Investments in debt and equity securities	300	292
Level 2 | Residential | Recurring basis
Assets
Investments in debt and equity securities	11	12
Level 2 | Commercial | Recurring basis
Assets
Investments in debt and equity securities	58	61
Level 2 | Large capitalization value | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 2 | Smaller company growth | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 2 | REIT | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Recurring basis
Assets
Investments in debt and equity securities	0	0
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Total Assets	64	25
Level 3 | U.S. treasury bonds | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Corporate bonds | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Asset-backed securities | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | U.S. governmental agency | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Residential | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Commercial | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Large capitalization value | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | Smaller company growth | Recurring basis
Assets
Investments in debt and equity securities	0	0
Level 3 | REIT | Recurring basis
Assets
Investments in debt and equity securities	$ 64	$ 25

Fair Value Disclosures (Detai83

Fair Value Disclosures (Details 2) - Level 3 - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
REIT | Recurring basis
Roll-forward of assets measured at fair value using Level 3 inputs
Balance at beginning of period	$ 25
Purchases of securities	38
Sale of securities	0
Gains (losses) included in Accumulated other comprehensive income (loss)	1
Balance at end of period	64
Financial Products | Nonrecurring basis
Fair value of impaired loans
Impaired loans	$ 81	$ 91

Fair Value Disclosures (Detai84

Fair Value Disclosures (Details 3) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and short-term investments	$ 6,764	$ 6,460	$ 7,821	$ 7,341
Investments in debt and equity securities	1,726	1,635
Carrying Amount
Assets
Cash and short-term investments	6,764	6,460
Restricted cash and short-term investments	45	52
Investments in debt and equity securities	1,726	1,635
Finance receivables-net (excluding finance leases)	16,777	16,515
Wholesale inventory receivables-net (excluding finance leases)	1,761	1,821
Foreign currency contracts-net	11	13
Interest rate swaps-net	46	48
Commodity contracts-net	2	0
Liabilities
Short-term borrowings	7,483	6,967
Commodity contracts-net	0	12
Guarantees	12	12
Carrying Amount | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	9,489	9,477
Carrying Amount | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	21,351	21,569
Carrying amount of assets excluded from measurement at fair value
Assets
Finance leases	6,416	6,452
Level 1 | Fair Value
Assets
Cash and short-term investments	6,764	6,460
Restricted cash and short-term investments	45	52
Liabilities
Short-term borrowings	7,483	6,967
Level 1, 2 & 3 | Fair Value
Assets
Investments in debt and equity securities	1,726	1,635
Level 2 | Fair Value
Assets
Foreign currency contracts-net	11	13
Interest rate swaps-net	46	48
Commodity contracts-net	2	0
Liabilities
Commodity contracts-net	0	12
Level 2 | Fair Value | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	11,531	10,691
Level 2 | Fair Value | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	21,954	21,904
Level 3 | Fair Value
Assets
Finance receivables-net (excluding finance leases)	16,809	16,551
Wholesale inventory receivables-net (excluding finance leases)	1,724	1,775
Liabilities
Guarantees	$ 12	$ 12

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Restructuring and Related Cost [Abstract]
Restructuring costs	$ 139	$ 86	$ 300	$ 121	$ 898
Employee Separation Charges [Roll Forward]
Liability balance at beginning of period			483	182	182
Increase in liability (separation charges)			76		641
Reduction in liability (payments)			(440)		(340)
Liability balance at end of period	119		119		483
Discontinue production on-highway vocational trucks
Restructuring and Related Cost [Abstract]
Restructuring costs	8		82
Estimated restructuring costs	120		120
Employee separations | September 2015 announcement
Restructuring and Related Cost [Abstract]
Restructuring costs	45		76		379
Employee separations | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs	45	86	76	120	641
Contract terminations | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs	36	0	46	0
Long-lived asset impairments | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs	14	0	96	1	127
Other
Restructuring and Related Cost [Abstract]
Restructuring costs	$ 44	$ 0	$ 82	$ 0	48
Defined benefit retirement plan curtailment losses | September 2015 announcement
Restructuring and Related Cost [Abstract]
Restructuring costs					82
Defined benefit retirement plan curtailment losses | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs					$ 82