Caterpillar (CAT) 10-Q 3 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document	3 Months Ended
	Mar. 31, 2017shares
Document and Entity Information
Entity Registrant Name	CATERPILLAR INC
Entity Central Index Key	18,230
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
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	589,090,308
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Consolidated Statement of Resul

Consolidated Statement of Results of Operations - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Sales and revenues:
Sales of Machinery, Energy & Transportation		$ 9,130	$ 8,780
Revenues of Financial Products		692	681
Total sales and revenues		9,822	9,461
Operating costs:
Cost of goods sold		6,758	6,822
Selling, general and administrative expenses		1,045	1,088
Research and development expenses		418	508
Interest expense of Financial Products		159	152
Other operating (income) expenses		1,025	397
Total operating costs		9,405	8,967
Operating profit		417	494
Interest expense excluding Financial Products		123	129
Other income (expense)		(5)	0
Consolidated profit before taxes		289	365
Provision (benefit) for income taxes		90	92
Profit of consolidated companies		199	273
Equity in profit (loss) of unconsolidated affiliated companies		(5)	(1)
Profit of consolidated and affiliated companies		194	272
Less: Profit (loss) attributable to noncontrolling interests		2	1
Profit	[1]	$ 192	$ 271
Profit per common share (in dollars per share)		$ 0.33	$ 0.46
Profit per common share - diluted (in dollars per share)	[2]	$ 0.32	$ 0.46
Weighted-average common shares outstanding (millions)
Basic (in shares)		587.5	582.8
Diluted (in shares)	[2]	593.2	587.7
Cash dividends declared per common share (in dollars per share)		$ 0	$ 0
[1]	1 Profit attributable to common shareholders.
[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
	Mar. 31, 2017	Mar. 31, 2016
Profit of consolidated and affiliated companies	$ 194	$ 272
Other Comprehensive Income (Loss), Net of Tax:
Foreign currency translation, net of tax (provision)/benefit of: Three months ended: 2017-$7, 2016-$32	147	408
Pension and other postretirement benefits:
Current year prior service credit (cost), net of tax (provision)/benefit of: Three months ended: 2017-$(4), 2016-$(69)	8	118
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: Three months ended: 2017-$1, 2016-$5	(4)	(10)
Derivative financial instruments:
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2017-$(5), 2016-$(6)	10	9
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2017-$(22), 2016-$(5)	40	9
Available-for-sale securities:
Gains (losses) deferred, net of tax (provision)/benefit of: Three months ended: 2017-$(6), 2016-$(5)	8	6
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: Three months ended: 2017-$(1), 2016-$(1)	3	2
Total other comprehensive income (loss), net of tax	212	542
Comprehensive Income	406	814
Less: comprehensive income attributable to the noncontrolling interests	(2)	(1)
Comprehensive income attributable to stockholders	$ 404	$ 813

Consolidated Statement of Comp4

Consolidated Statement of Comprehensive Income (Parenthetical) (Parentheticals) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax (provision)/benefit	$ 7	$ 32
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit	(4)	(69)
Pension and other postretirement benefits, Amortization of prior service (credit) cost, tax (provision)/benefit	1	5
Derivative financial instruments, Gains (losses) deferred, tax (provision)/benefit	(5)	(6)
Derivative financial instruments, (Gains) losses reclassified to earnings, tax (provision)/benefit	(22)	(5)
Available-for-sale securities, Gains (losses) deferred, tax (provision)/benefit	(6)	(5)
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit	$ (1)	$ (1)

Consolidated Statement of Finan

Consolidated Statement of Financial Position - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and short-term investments	$ 9,472	$ 7,168
Receivables - trade and other	6,533	5,981
Receivables - finance	8,684	8,522
Prepaid expenses and other current assets	1,777	1,682
Inventories	9,082	8,614
Total current assets	35,548	31,967
Property, plant and equipment - net	14,727	15,322
Long-term receivables - trade and other	944	1,029
Long-term receivables - finance	13,426	13,556
Noncurrent deferred and refundable income taxes	2,940	2,790
Intangible assets	2,287	2,349
Goodwill	6,051	6,020
Other assets	1,626	1,671
Total assets	77,549	74,704
Short-term borrowings:
Machinery, Energy & Transportation	436	209
Financial Products	7,385	7,094
Accounts payable	5,302	4,614
Accrued expenses	3,086	3,003
Accrued wages, salaries and employee benefits	1,666	1,296
Customer advances	1,383	1,167
Dividends payable	0	452
Other current liabilities	1,641	1,635
Long-term debt due within one year:
Machinery, Energy & Transportation	505	507
Financial Products	6,231	6,155
Total current liabilities	27,635	26,132
Long-term debt due after one year:
Machinery, Energy & Transportation	8,804	8,436
Financial Products	14,921	14,382
Liability for postemployment benefits	9,291	9,357
Other liabilities	3,238	3,184
Total liabilities	63,889	61,491
Commitments and contingencies (Notes 10 and 13)
Stockholders' equity
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (3/31/17 and 12/31/16 – 814,894,624) at paid-in amount	5,222	5,277
Treasury stock (3/31/17 – 225,804,316 shares; 12/31/16 – 228,408,600 shares) at cost	(17,391)	(17,478)
Profit employed in the business	27,584	27,377
Accumulated other comprehensive income (loss)	(1,827)	(2,039)
Noncontrolling interests	72	76
Total stockholders' equity	13,660	13,213
Total liabilities and stockholders' equity	$ 77,549	$ 74,704

Consolidated Statement of Fina6

Consolidated Statement of Financial Position (Parenthetical) (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	225,804,316	228,408,600

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' 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, 2015	$ 14,885	$ 5,238	$ (17,640)	$ 29,246	$ (2,035)	$ 76
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies	272	0	0	271	0	1
Foreign currency translation, net of tax	408	0	0	0	408	0
Pension and other postretirement benefits, net of tax	108	0	0	0	108	0
Derivative financial instruments, net of tax	18	0	0	0	18	0
Available-for-sale securities, net of tax	8	0	0	0	8	0
Distribution to noncontrolling interests	(1)	0	0	0	0	(1)
Common shares issued from treasury stock for stock-based compensation: 1,546,856 and 2,604,284 for the three months ended March 31, 2017 and 2016, respectively	(45)	(90)	45	0	0	0
Stock-based compensation expense	101	101	0	0	0	0
Net excess tax benefits from stock-based compensation	(6)	(6)	0	0	0	0
Other	5	4	0	0	0	1
Balance at Mar. 31, 2016	15,753	5,247	(17,595)	29,517	(1,493)	77
Balance at Dec. 31, 2016	13,213	5,277	(17,478)	27,377	(2,039)	76
Increase (Decrease) in Shareholders' Equity
Adjustment to adopt stock-based compensation guidance	15	0	0	15	0	0
Balance at Jan. 01, 2017	13,228	5,277	(17,478)	27,392	(2,039)	76
Balance at Dec. 31, 2016	13,213	5,277	(17,478)	27,377	(2,039)	76
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies	194	0	0	192	0	2
Foreign currency translation, net of tax	147	0	0	0	147	0
Pension and other postretirement benefits, net of tax	4	0	0	0	4	0
Derivative financial instruments, net of tax	50	0	0	0	50	0
Available-for-sale securities, net of tax	11	0	0	0	11	0
Distribution to noncontrolling interests	(6)	0	0	0	0	(6)
Common shares issued from treasury stock for stock-based compensation: 1,546,856 and 2,604,284 for the three months ended March 31, 2017 and 2016, respectively	(19)	(106)	87	0	0	0
Stock-based compensation expense	49	49	0	0	0	0
Other	2	2	0	0	0	0
Balance at Mar. 31, 2017	$ 13,660	$ 5,222	$ (17,391)	$ 27,584	$ (1,827)	$ 72

Consolidated Statement of Chan8

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (Parentheticals) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Stockholders' Equity [Abstract]
Common shares issued from treasury stock for stock-based compensation (in shares)	2,604,284	1,546,856
Common shares repurchased (in shares)	0	0

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$ 194	$ 272
Adjustments for non-cash items:
Depreciation and amortization	710	740
Other	301	269
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	(353)	14
Inventories	(444)	(74)
Accounts payable	732	211
Accrued expenses	132	33
Accrued wages, salaries and employee benefits	360	(852)
Customer advances	193	174
Other assets - net	(261)	(145)
Other liabilities - net	(23)	(152)
Net cash provided by (used for) operating activities	1,541	490
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others	(204)	(357)
Expenditures for equipment leased to others	(305)	(383)
Proceeds from disposals of leased assets and property, plant and equipment	234	173
Additions to finance receivables	(2,122)	(2,014)
Collections of finance receivables	2,272	2,047
Proceeds from sale of finance receivables	17	10
Investments and acquisitions (net of cash acquired)	(18)	(12)
Proceeds from sale of securities	89	49
Investments in securities	(65)	(62)
Other - net	(23)	(23)
Net cash provided by (used for) investing activities	(125)	(572)
Cash flow from financing activities:
Dividends paid	(452)	(448)
Distribution to noncontrolling interests	(6)	(1)
Common stock issued, including treasury shares reissued	(19)	(45)
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	360	1
Financial Products	2,355	1,210
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(4)	(3)
Financial Products	(1,973)	(1,703)
Short-term borrowings - net (original maturities three months or less)	618	486
Net cash provided by (used for) financing activities	879	(503)
Effect of exchange rate changes on cash	9	11
Increase (decrease) in cash and short-term investments	2,304	(574)
Cash and short-term investments at beginning of period	7,168	6,460
Cash and short-term investments at end of period	$ 9,472	$ 5,886

Nature of Operations, Basis of

Nature of Operations, Basis of Presentation and Change in Accounting Principle	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 , (b) the consolidated comprehensive income for the three months ended March 31, 2017 and 2016 , (c) the consolidated financial position at March 31, 2017 and December 31, 2016 , (d) the consolidated changes in shareholders’ equity for the three months ended March 31, 2017 and 2016 and (e) the consolidated cash flow for the three months ended March 31, 2017 and 2016 . 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 (SEC). 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, 2016 ( 2016 Form 10-K). The December 31, 2016 financial position data included herein is derived from the audited consolidated financial statements included in the 2016 Form 10-K 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 2 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) March 31, 2017 December 31, 2016 Receivables - trade and other $ 64 $ 55 Receivables - finance 147 174 Long-term receivables - finance 233 246 Investments in unconsolidated affiliated companies 36 31 Guarantees 216 210 Total $ 696 $ 716 In addition, Cat Financial has end-user customers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.
Change in Accounting Principle	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 Shareholders' Equity. We plan to adopt the new guidance effective January 1, 2018. We have made substantial progress in our evaluation of the impact of the new standard. Under the new guidance, we anticipate sales of certain turbine machinery units will change to a point-in-time recognition model. Under current guidance, we account for these sales under an over-time model following the percentage-of-completion method as the product is manufactured. In addition, under the new guidance we will begin to recognize an asset for the value of expected replacement part returns. At this time we have not identified any impacts to our financial statements that we believe will be material in the year of adoption. We are still evaluating the impact to certain revenue streams within our Energy & Transportation and Resource Industries segments and expect that evaluation to be completed during the second quarter of 2017. Based on the current estimated impact to our financial statements, we plan to adopt the new guidance under the modified retrospective approach. 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 was effective January 1, 2017, and was applied prospectively. The adoption did not have a material impact on our financial statements. 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. Under the new guidance all excess tax benefits and deficiencies during the period are to be recognized in income (rather than equity) on a prospective basis. The guidance removes the requirement to delay recognition of excess tax benefits until it reduces income taxes currently payable. This change was required to be applied on a modified retrospective basis, resulting in a cumulative-effect adjustment to opening retained earnings in the period of adoption. In addition, Cash flows related to excess tax benefits will be included in Cash provided by operating activities and will no longer be separately classified as a financing activity. This change was adopted retrospectively. The guidance was effective January 1, 2017, and did not have a material impact 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. Classification for certain cash receipts and cash payments – In August 2016, the FASB issued accounting guidance related to the presentation and classification of certain transactions in the statement of cash flows where diversity in practice exists. The guidance is effective January 1, 2018, with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements. Tax accounting for intra-entity asset transfers – In October 2016, the FASB issued accounting guidance that will require the tax effects of intra-entity asset transfers to be recognized in the period when the transfer occurs. Under current guidance, the tax effects of intra-entity sales of assets are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance does not apply to intra-entity transfers of inventory. The guidance is effective January 1, 2018, and is required to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. We are in the process of evaluating the effect of the new guidance on our financial statements. Classification of restricted cash – In November 2016, the FASB issued accounting guidance related to the presentation and classification of changes in restricted cash on the statement of cash flows where diversity in practice exists. The new standard is required to be applied with a retrospective approach. The guidance is effective January 1, 2018, with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements. Clarification on the definition of a business – In January 2017, the FASB issued accounting guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective January 1, 2018, with early adoption permitted. We adopted the guidance effective January 1, 2017, and the adoption did not have a material impact on our financial statements. Simplifying the measurement for goodwill – In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance will be applied prospectively and is effective January 1, 2020, with early adoption permitted beginning January 1, 2017. We adopted the guidance effective January 1, 2017. The adoption did not have a material impact on our financial statements. Presentation of net periodic pension costs and net periodic postretirement benefit costs – In March 2017, the FASB issued accounting guidance that will require that an employer disaggregate the service cost component from the other components of net benefit cost. Service cost is required to be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be reported outside the subtotal for income from operations. Additionally, only the service cost component of net benefit costs are eligible for capitalization. The guidance is effective January 1, 2018, with early adoption permitted. We will adopt this guidance on January 1, 2018, and apply the presentation changes retrospectively and the capitalization change prospectively. The impact on our financial statements at the time of adoption will primarily be reclassification of other components of net periodic benefit cost outside of Operating profit in the Consolidated Statement of Results of Operations. Premium amortization on purchased callable debt securities – In March 2017, the FASB issued accounting guidance related to the amortization period for certain purchased callable debt securities held at a premium. Securities held at a premium will be required to be amortized to the earliest call date rather than the maturity date. The new standard is required to be applied with a modified retrospective approach through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The guidance is effective January 1, 2019, with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements.

New Accounting Guidance

New Accounting Guidance	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Guidance	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 Shareholders' Equity. We plan to adopt the new guidance effective January 1, 2018. We have made substantial progress in our evaluation of the impact of the new standard. Under the new guidance, we anticipate sales of certain turbine machinery units will change to a point-in-time recognition model. Under current guidance, we account for these sales under an over-time model following the percentage-of-completion method as the product is manufactured. In addition, under the new guidance we will begin to recognize an asset for the value of expected replacement part returns. At this time we have not identified any impacts to our financial statements that we believe will be material in the year of adoption. We are still evaluating the impact to certain revenue streams within our Energy & Transportation and Resource Industries segments and expect that evaluation to be completed during the second quarter of 2017. Based on the current estimated impact to our financial statements, we plan to adopt the new guidance under the modified retrospective approach. 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 was effective January 1, 2017, and was applied prospectively. The adoption did not have a material impact on our financial statements. 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. Under the new guidance all excess tax benefits and deficiencies during the period are to be recognized in income (rather than equity) on a prospective basis. The guidance removes the requirement to delay recognition of excess tax benefits until it reduces income taxes currently payable. This change was required to be applied on a modified retrospective basis, resulting in a cumulative-effect adjustment to opening retained earnings in the period of adoption. In addition, Cash flows related to excess tax benefits will be included in Cash provided by operating activities and will no longer be separately classified as a financing activity. This change was adopted retrospectively. The guidance was effective January 1, 2017, and did not have a material impact 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. Classification for certain cash receipts and cash payments – In August 2016, the FASB issued accounting guidance related to the presentation and classification of certain transactions in the statement of cash flows where diversity in practice exists. The guidance is effective January 1, 2018, with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements. Tax accounting for intra-entity asset transfers – In October 2016, the FASB issued accounting guidance that will require the tax effects of intra-entity asset transfers to be recognized in the period when the transfer occurs. Under current guidance, the tax effects of intra-entity sales of assets are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance does not apply to intra-entity transfers of inventory. The guidance is effective January 1, 2018, and is required to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. We are in the process of evaluating the effect of the new guidance on our financial statements. Classification of restricted cash – In November 2016, the FASB issued accounting guidance related to the presentation and classification of changes in restricted cash on the statement of cash flows where diversity in practice exists. The new standard is required to be applied with a retrospective approach. The guidance is effective January 1, 2018, with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements. Clarification on the definition of a business – In January 2017, the FASB issued accounting guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective January 1, 2018, with early adoption permitted. We adopted the guidance effective January 1, 2017, and the adoption did not have a material impact on our financial statements. Simplifying the measurement for goodwill – In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance will be applied prospectively and is effective January 1, 2020, with early adoption permitted beginning January 1, 2017. We adopted the guidance effective January 1, 2017. The adoption did not have a material impact on our financial statements. Presentation of net periodic pension costs and net periodic postretirement benefit costs – In March 2017, the FASB issued accounting guidance that will require that an employer disaggregate the service cost component from the other components of net benefit cost. Service cost is required to be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be reported outside the subtotal for income from operations. Additionally, only the service cost component of net benefit costs are eligible for capitalization. The guidance is effective January 1, 2018, with early adoption permitted. We will adopt this guidance on January 1, 2018, and apply the presentation changes retrospectively and the capitalization change prospectively. The impact on our financial statements at the time of adoption will primarily be reclassification of other components of net periodic benefit cost outside of Operating profit in the Consolidated Statement of Results of Operations. Premium amortization on purchased callable debt securities – In March 2017, the FASB issued accounting guidance related to the amortization period for certain purchased callable debt securities held at a premium. Securities held at a premium will be required to be amortized to the earliest call date rather than the maturity date. The new standard is required to be applied with a modified retrospective approach through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The guidance is effective January 1, 2019, with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
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). 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." Award terms for awards granted prior to 2017 allow for immediate vesting upon separation of all outstanding options and RSUs with no requisite service period for employees who meet the criteria for a "Long Service Separation." Compensation expense was fully recognized immediately on the grant date for these employees. Award terms for the 2017 grant allow for continued vesting as of each vesting date specified in the award document for employees who meet the criteria for a "Long Service Separation" and fulfill a requisite service period of six months. Compensation expense for eligible employees for the 2017 grant is recognized over the period from the grant date to the end date of the six-month requisite service period. For employees who become eligible for a "Long Service Separation" subsequent to the end date of the six-month requisite service period and prior to the completion of the vesting period, compensation expense is recognized over the period from the grant date to the date eligibility is achieved. Prior to 2017, all outstanding PRSU awards granted to employees with a "Long Service Separation" may vest at the end of the performance period based upon achievement of the performance target. For PRSU awards granted in 2017, only a prorated number of shares may vest at the end of the performance period based upon achievement of the performance target, with the proration based upon the number of months of continuous employment during the three-year performance period. Employees with a "Long Service Separation" must also fulfill a six-month requisite service period in order to be eligible for the prorated vesting of outstanding PRSU awards granted in 2017. We recognized pretax stock-based compensation expense in the amount of $49 million and $101 million for the three months ended March 31, 2017 and 2016 , respectively. The decrease in stock-based compensation expense was primarily due to the change in award terms for participants that meet the criteria for a "Long Service Separation", as the establishment of the six-month requisite service period results in lower expense in the first quarter (period of grant) and higher expense over the following two quarters. The following table illustrates the type and fair value of the stock-based compensation awards granted during the three months ended March 31, 2017 and 2016 , respectively: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 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 2,701,644 $ 25.01 $ 95.66 4,243,272 $ 20.64 $ 74.77 RSUs 906,068 $ 89.76 $ 95.63 1,085,505 $ 68.04 $ 74.77 PRSUs 437,385 $ 86.78 $ 95.66 614,347 $ 64.71 $ 74.77 The following table provides the assumptions used in determining the fair value of the stock-based awards for the three months ended March 31, 2017 and 2016 , respectively: Grant Year 2017 2016 Weighted-average dividend yield 3.42% 3.23% Weighted-average volatility 29.2% 31.1% Range of volatilities 22.1-33.0% 22.5-33.4% Range of risk-free interest rates 0.81-2.35% 0.62-1.73% Weighted-average expected lives 8 years 8 years As of March 31, 2017 , the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $306 million , which will be amortized over the weighted-average remaining requisite service periods of approximately 1.8 years.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	3 Months Ended
	Mar. 31, 2017
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 contracts 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 March 31, 2017 , 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 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 March 31, 2017 , $11 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 assets and liabilities, 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 assets and liabilities. 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 contracts 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 contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts 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. 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 contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts 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 contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both Machinery, Energy & Transportation and Financial Products. The gains or losses associated with these contracts 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 March 31, 2017 December 31, 2016 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 14 $ 13 Machinery, Energy & Transportation Accrued expenses (32 ) (93 ) Machinery, Energy & Transportation Other liabilities (27 ) (36 ) Financial Products Long-term receivables – trade and other 24 29 Financial Products Accrued expenses (16 ) (3 ) Interest rate contracts Financial Products Long-term receivables – trade and other 3 4 Financial Products Accrued expenses (1 ) (1 ) $ (35 ) $ (87 ) Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 4 $ — Machinery, Energy & Transportation Accrued expenses (15 ) (30 ) Financial Products Receivables – trade and other 28 39 Financial Products Accrued expenses (10 ) (4 ) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 7 10 $ 14 $ 15 The total notional amounts of the derivative instruments are as follows: (Millions of dollars) March 31, 2017 December 31, 2016 Machinery, Energy & Transportation $ 2,412 $ 2,530 Financial Products $ 3,008 $ 2,626 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) $ (1 ) $ 1 $ 3 $ (4 ) $ (1 ) $ 1 $ 3 $ (4 ) Cash Flow Hedges Three Months Ended March 31, 2017 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 $ 33 Other income (expense) $ (39 ) $ — Financial Products (18 ) Other income (expense) (22 ) — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (2 ) — Financial Products — Interest expense of Financial Products 1 — $ 15 $ (62 ) $ — Three Months Ended March 31, 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 $ 16 Other income (expense) $ (10 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (2 ) — Financial Products (1 ) Interest expense of Financial Products (2 ) — $ 15 $ (14 ) $ — 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) $ 13 $ 22 Financial Products Other income (expense) (7 ) (4 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) 1 — $ 7 $ 18 We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within Machinery, Energy & Transportation and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or of our company under the master netting agreements. As of March 31, 2017 and December 31, 2016 , 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: March 31, 2017 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 $ 25 $ — $ 25 $ (23 ) $ — $ 2 Financial Products 55 — 55 (5 ) — 50 Total $ 80 $ — $ 80 $ (28 ) $ — $ 52 March 31, 2017 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 $ (74 ) $ — $ (74 ) $ 23 $ — $ (51 ) Financial Products (27 ) — (27 ) 5 — (22 ) Total $ (101 ) $ — $ (101 ) $ 28 $ — $ (73 ) December 31, 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 $ 23 $ — $ 23 $ (21 ) $ — $ 2 Financial Products 72 — 72 (7 ) — 65 Total $ 95 $ — $ 95 $ (28 ) $ — $ 67 December 31, 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 $ (159 ) $ — $ (159 ) $ 21 $ — $ (138 ) Financial Products (8 ) — (8 ) 7 — (1 ) Total $ (167 ) $ — $ (167 ) $ 28 $ — $ (139 )

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following: (Millions of dollars) March 31, December 31, Raw materials $ 2,325 $ 2,102 Work-in-process 1,850 1,719 Finished goods 4,698 4,576 Supplies 209 217 Total inventories $ 9,082 $ 8,614

Investments in Unconsolidated A

Investments in Unconsolidated Affiliated Companies	3 Months Ended
	Mar. 31, 2017
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: (Millions of dollars) March 31, December 31, Investments in equity method companies $ 193 $ 192 Plus: Investments in cost method companies 37 57 Total investments in unconsolidated affiliated companies $ 230 $ 249

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible assets and goodwill A. Intangible assets Intangible assets are comprised of the following: March 31, 2017 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,388 $ (978 ) $ 1,410 Intellectual property 11 1,497 (729 ) 768 Other 13 191 (82 ) 109 Total finite-lived intangible assets 14 $ 4,076 $ (1,789 ) $ 2,287 December 31, 2016 Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,378 $ (934 ) $ 1,444 Intellectual property 11 1,496 (706 ) 790 Other 14 192 (77 ) 115 Total finite-lived intangible assets 14 $ 4,066 $ (1,717 ) $ 2,349 Amortization expense for the three months ended March 31, 2017 and 2016 was $79 million and $82 million , respectively. Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Nine Months of 2017 2018 2019 2020 2021 Thereafter $237 $311 $305 $295 $277 $862 B. Goodwill No goodwill was impaired during the three months ended March 31, 2017 or 2016 . The changes in carrying amount of goodwill by reportable segment for the three months ended March 31, 2017 were as follows: (Millions of dollars) December 31, Other Adjustments 1 March 31, Construction Industries Goodwill $ 296 $ 3 $ 299 Impairments (22 ) — (22 ) Net goodwill 274 3 277 Resource Industries Goodwill 4,110 21 4,131 Impairments (1,175 ) — (1,175 ) Net goodwill 2,935 21 2,956 Energy & Transportation Goodwill 2,756 7 2,763 All Other 2 Goodwill 55 — 55 Consolidated total Goodwill 7,217 31 7,248 Impairments (1,197 ) — (1,197 ) Net goodwill $ 6,020 $ 31 $ 6,051 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	3 Months Ended
	Mar. 31, 2017
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: March 31, 2017 December 31, 2016 (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 58 — 58 60 — 60 Corporate bonds Corporate bonds 479 3 482 489 3 492 Asset-backed securities 88 — 88 90 — 90 Mortgage-backed debt securities U.S. governmental agency 214 (2 ) 212 225 (2 ) 223 Residential 9 — 9 10 — 10 Commercial 31 — 31 36 — 36 Equity securities Large capitalization value 281 44 325 280 32 312 Real estate investment trust (REIT) 84 4 88 77 2 79 Smaller company growth 41 19 60 41 15 56 Total $ 1,294 $ 68 $ 1,362 $ 1,317 $ 50 $ 1,367 Available-for-sale investments in an unrealized loss position that are not other-than-temporarily impaired: March 31, 2017 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 $ 121 $ 1 $ 12 $ — $ 133 $ 1 Mortgage-backed debt securities U.S. governmental agency 140 2 12 — 152 2 Equity securities Large capitalization value 42 5 8 1 50 6 Small company growth 6 1 2 — 8 1 Total $ 309 $ 9 $ 34 $ 1 $ 343 $ 10 December 31, 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 Corporate bonds $ 131 $ 1 $ 13 $ — $ 144 $ 1 Mortgage-backed debt securities U.S. governmental agency 167 2 11 — 178 2 Equity securities Large capitalization value 68 6 11 2 79 8 Smaller company growth 10 1 3 1 13 2 Total $ 376 $ 10 $ 38 $ 3 $ 414 $ 13 1 Indicates length of time that individual securities have been in a continuous unrealized loss position. Corporate Bonds. The unrealized losses on our investments in corporate bonds relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. We do not consider these investments to be other-than-temporarily impaired as of March 31, 2017 . Mortgage-Backed Debt Securities. The unrealized losses on our investments in U.S. government agency mortgage-backed securities relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. We do not consider these investments to be other-than-temporarily impaired as of March 31, 2017 . 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 March 31, 2017 . The cost basis and fair value of the available-for-sale debt securities at March 31, 2017 , 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. March 31, 2017 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 198 $ 200 Due after one year through five years 386 387 Due after five years through ten years 24 24 Due after ten years 26 26 U.S. governmental agency mortgage-backed securities 214 212 Residential mortgage-backed securities 9 9 Commercial mortgage-backed securities 31 31 Total debt securities – available-for-sale $ 888 $ 889 Sales of Securities: Three Months Ended (Millions of dollars) 2017 2016 Proceeds from the sale of available-for-sale securities $ 89 $ 49 Gross gains from the sale of available-for-sale securities $ 1 $ 1 Gross losses from the sale of available-for-sale securities $ 1 $ 1

Postretirement Benefits

Postretirement Benefits	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Postretirement Benefits	Postretirement benefits A. Pension and postretirement benefit costs In the first quarter of 2017, we announced the closure of our Gosselies, Belgium, facility. This announcement impacted certain employees that participate in a defined benefit pension plan and resulted in a curtailment and the recognition of termination benefits. In March 2017, we recognized a net loss of $20 million for the curtailment and termination benefits. In addition, we announced the decision to phase out production at our Aurora, Illinois, facility which resulted in termination benefits of $9 million for certain hourly employees that participate in our U.S. hourly defined benefit pension plan. See Note 18 for more information on the Gosselies and Aurora announcements. U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) March 31 March 31 March 31 2017 2016 2017 2016 2017 2016 For the three months ended: Components of net periodic benefit cost: Service cost $ 29 $ 30 $ 23 $ 23 $ 19 $ 20 Interest cost 131 129 25 30 33 33 Expected return on plan assets (184 ) (189 ) (57 ) (58 ) (9 ) (11 ) Amortization of prior service cost (credit) 1 — — — — (5 ) (15 ) Net periodic benefit cost (benefit) (24 ) (30 ) (9 ) (5 ) 38 27 Curtailments and termination benefits 2 9 — 20 — — (2 ) Total cost (benefit) included in operating profit $ (15 ) $ (30 ) $ 11 $ (5 ) $ 38 $ 25 Weighted-average assumptions used to determine net cost: Discount rate used to measure service cost 4.2 % 4.5 % 2.3 % 2.9 % 3.9 % 4.4 % Discount rate used to measure interest cost 3.3 % 3.4 % 2.3 % 2.8 % 3.3 % 3.3 % Expected rate of return on plan assets 6.7 % 6.9 % 5.9 % 6.1 % 7.5 % 7.5 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 3.5 % 4.0 % 4.0 % 1 Prior service cost (credit) for both pension and other postretirement benefits is 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) is 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 $106 million of contributions to our pension and other postretirement plans during the three months ended March 31, 2017 . We currently anticipate full-year 2017 contributions of approximately $610 million . We made $115 million of contributions to our pension and other postretirement plans during the three months ended March 31, 2016 . B. Defined contribution benefit costs Total company costs related to our defined contribution plans were as follows: Three Months Ended (Millions of dollars) 2017 2016 U.S. Plans $ 80 $ 85 Non-U.S. Plans 16 18 $ 96 $ 103

Guarantees and Product Warranty

Guarantees and Product Warranty	3 Months Ended
	Mar. 31, 2017
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. In 2016, we provided a guarantee to an end user related to the performance of contractual obligations by a Caterpillar dealer. Under the guarantee, which expires in 2025, non-performance by the Caterpillar dealer could require Caterpillar to satisfy the contractual obligations by providing goods, services or financial compensation to the end user up to an annual designated cap. 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. 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. We have dealer performance guarantees and third party performance guarantees that do not limit potential payment to end users related to indemnities and other commercial contractual obligations. For these unlimited guarantees, we are unable to estimate a maximum potential amount of future payments that could result from claims made. No significant loss has been experienced or is anticipated under any of these guarantees. At both March 31, 2017 and December 31, 2016 , the related liability was $8 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) March 31, December 31, Caterpillar dealer performance guarantees $ 1,436 $ 1,384 Customer loan guarantees 42 51 Supplier consortium performance guarantee 282 278 Third party logistics business lease guarantees 82 87 Other guarantees 77 56 Total guarantees $ 1,919 $ 1,856 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 March 31, 2017 and December 31, 2016 , the SPC’s assets of $1,153 million and $1,088 million , respectively, were primarily comprised of loans to dealers and the SPC’s liabilities of $1,152 million and $1,087 million , respectively, were primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial's creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. 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) 2017 Warranty liability, January 1 $ 1,258 Reduction in liability (payments) (206 ) Increase in liability (new warranties) 220 Warranty liability, March 31 $ 1,272 (Millions of dollars) 2016 Warranty liability, January 1 $ 1,354 Reduction in liability (payments) (909 ) Increase in liability (new warranties) 813 Warranty liability, December 31 $ 1,258

Profit Per Share

Profit Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Profit Per Share	Profit per share Computations of profit per share: Three Months Ended (Dollars in millions except per share data) 2017 2016 Profit for the period (A) 1 $ 192 $ 271 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 587.5 582.8 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 5.7 4.9 Average common shares outstanding for fully diluted computation (C) 2 593.2 587.7 Profit per share of common stock: Assuming no dilution (A/B) $ 0.33 $ 0.46 Assuming full dilution (A/C) 2 $ 0.32 $ 0.46 Shares outstanding as of March 31 (in millions) 589.1 583.9 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. SARs and stock options to purchase 12,644,654 and 29,093,289 common shares were outstanding for the three months ended March 31, 2017 and 2016 , respectively, which were not included in the computation of diluted earnings per share because the effect would have been 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. As of March 31, 2017 , approximately $4.5 billion of the $10.0 billion authorization was spent.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2017
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 Shareholders’ 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 March 31, 2017 Balance at December 31, 2016 $ (1,970 ) $ 14 $ (115 ) $ 32 $ (2,039 ) Other comprehensive income (loss) before reclassifications 145 8 10 8 171 Amounts reclassified from accumulated other comprehensive (income) loss 2 (4 ) 40 3 41 Other comprehensive income (loss) 147 4 50 11 212 Balance at March 31, 2017 $ (1,823 ) $ 18 $ (65 ) $ 43 $ (1,827 ) Three Months Ended March 31, 2016 Balance at December 31, 2015 $ (1,953 ) $ (69 ) $ (50 ) $ 37 $ (2,035 ) Other comprehensive income (loss) before reclassifications 408 118 9 6 541 Amounts reclassified from accumulated other comprehensive (income) loss — (10 ) 9 2 1 Other comprehensive income (loss) 408 108 18 8 542 Balance at March 31, 2016 $ (1,545 ) $ 39 $ (32 ) $ 45 $ (1,493 ) 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 March 31 (Millions of dollars) Classification of income (expense) 2017 2016 Foreign currency translation Gain (loss) on foreign currency translation Other income (expense) $ (2 ) $ — Tax (provision) benefit — — Reclassifications net of tax $ (2 ) $ — Pension and other postretirement benefits: Amortization of prior service credit (cost) Note 9 1 $ 5 $ 15 Tax (provision) benefit (1 ) (5 ) Reclassifications net of tax $ 4 $ 10 Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (61 ) $ (10 ) Interest rate contracts Interest expense excluding Financial Products (2 ) (2 ) Interest rate contracts Interest expense of Financial Products 1 (2 ) Reclassifications before tax (62 ) (14 ) Tax (provision) benefit 22 5 Reclassifications net of tax $ (40 ) $ (9 ) Available-for-sale securities: Realized gain (loss) Other income (expense) $ (4 ) $ (3 ) Tax (provision) benefit 1 1 Reclassifications net of tax $ (3 ) $ (2 ) Total reclassifications from Accumulated other comprehensive income (loss) $ (41 ) $ (1 ) 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	3 Months Ended
	Mar. 31, 2017
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 7, 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. On March 2-3, 2017, agents with the Department of Commerce, the Federal Deposit Insurance Corporation and the Internal Revenue Service executed search and seizure warrants at three facilities of the Company in the Peoria, Illinois area, including its corporate headquarters. The warrants identify, and agents seized, documents and information related to, among other things, the export of products from the United States, the movement of products between the United States and Switzerland, the relationship between Caterpillar Inc. and Caterpillar SARL, and sales outside the United States. It is the Company’s understanding that the warrants, which concern both tax and export activities, are related to the ongoing grand jury investigation. The Company is continuing to cooperate 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. Beginning on September 10, 2014, the SEC issued to Caterpillar subpoenas seeking information concerning the Company’s accounting for the goodwill relating to its acquisition of Bucyrus International Inc. in 2011 and related matters. On February 17, 2017, the Company was notified by the SEC that it concluded its investigation and that it did not intend to recommend an enforcement action against Caterpillar in these matters. 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, intellectual property rights, and securities laws. 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	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes The provision for income taxes in the first quarter reflects an estimated annual tax rate of 32 percent , which excludes the discrete items discussed in the following paragraph, compared to 25 percent for the first quarter of 2016 . The increase is primarily due to higher non-U.S. restructuring costs in 2017 that are taxed at relatively lower non-U.S. tax rates, along with other changes in the geographic mix of profits from a tax perspective. Under the terms of a manufacturing service agreement, Caterpillar SARL (CSARL) will bear substantially all of the restructuring costs related to the closure of our Gosselies, Belgium, facility, reducing CSARL's profits taxable in Switzerland. In addition, during first quarter of 2017, a tax benefit of $17 million was recorded for the settlement of stock-based compensation awards with tax deductions in excess of cumulative U.S. GAAP compensation expense. This benefit was offset by a $15 million increase to prior year taxes related to Gosselies, Belgium restructuring costs. In January 2015, we received a Revenue Agent's Report from the Internal Revenue Service (IRS) indicating the end of the field examination of our U.S. income tax returns for 2007 to 2009 including the impact of a loss carryback to 2005. The IRS field examination for 2010 to 2012 that began in 2015 is expected to be completed in 2017. In November 2016, we received notices of proposed adjustments from the IRS for the 2010 to 2012 exam. In both these audits, the IRS has proposed to tax in the United States profits earned from certain parts transactions by CSARL, based on the IRS examination team's application of the "substance-over-form" or "assignment-of-income" judicial doctrines. We are vigorously contesting the proposed increases to tax and penalties for these years of approximately $2 billion . We believe that the relevant transactions complied with applicable tax laws and did not violate judicial doctrines. We have filed U.S. income tax returns on this same basis for years after 2012. Based on the information currently available, we do not anticipate a significant increase or decrease to our unrecognized tax benefits for this matter within the next 12 months. We currently believe the ultimate disposition of this matter will not have a material adverse effect on our consolidated financial position, liquidity or results of operations.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment information A. Basis for segment information Our Executive Office is comprised of five Group Presidents, an Executive Vice President and a CEO. Group Presidents are accountable for a related set of end-to-end businesses that they manage. 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 Law and Public Policy Division is a cost center and does not meet the definition of an operating segment. 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 and 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 products and services to provide customers fleet management, 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 and development, manufacturing, marketing and 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 and 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 alternatives to customers and dealers around the world for Caterpillar products, as well as financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of our equipment. All Other operating segments : Primarily includes activities such as: business strategy, product management and development, and manufacturing of filters and fluids, undercarriage, tires and rims, ground engaging tools, fluid transfer products, precision seals, and rubber 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 33 to 37 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, inventory write-downs, equipment relocation, and project management. A table, Reconciliation of Restructuring costs on page 35, 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 March 31 (Millions of dollars) 2017 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit (loss) Segment assets at March 31 Capital expenditures Construction Industries $ 4,091 $ 25 $ 4,116 $ 102 $ 635 $ 4,826 $ 21 Resource Industries 1,670 91 1,761 127 158 6,797 21 Energy & Transportation 3,356 780 4,136 158 552 7,490 116 Machinery, Energy & Transportation $ 9,117 $ 896 $ 10,013 $ 387 $ 1,345 $ 19,113 $ 158 Financial Products Segment 760 — 760 208 183 36,367 246 Total $ 9,877 $ 896 $ 10,773 $ 595 $ 1,528 $ 55,480 $ 404 2016 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit (loss) Segment assets at December 31 Capital expenditures Construction Industries $ 4,043 $ 8 $ 4,051 $ 113 $ 440 $ 5,367 $ 28 Resource Industries 1,449 71 1,520 155 (96 ) 7,135 35 Energy & Transportation 3,278 632 3,910 166 410 7,791 147 Machinery, Energy & Transportation $ 8,770 $ 711 $ 9,481 $ 434 $ 754 $ 20,293 $ 210 Financial Products Segment 743 — 743 205 168 35,224 297 Total $ 9,513 $ 711 $ 10,224 $ 639 $ 922 $ 55,517 $ 507 Reconciliation of Sales and revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended March 31, 2017 Total external sales and revenues from reportable segments $ 9,117 $ 760 $ — $ 9,877 All Other operating segments 37 — — 37 Other (24 ) 17 (85 ) 1 (92 ) Total sales and revenues $ 9,130 $ 777 $ (85 ) $ 9,822 Three Months Ended March 31, 2016 Total external sales and revenues from reportable segments $ 8,770 $ 743 $ — $ 9,513 All Other operating segments 38 — — 38 Other (28 ) 16 (78 ) 1 (90 ) Total sales and revenues $ 8,780 $ 759 $ (78 ) $ 9,461 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 March 31, 2017 Total profit from reportable segments $ 1,345 $ 183 $ 1,528 All Other operating segments (13 ) — (13 ) Cost centers 7 — 7 Corporate costs (115 ) — (115 ) Timing (38 ) — (38 ) Restructuring costs (751 ) (1 ) (752 ) Methodology differences: Inventory/cost of sales (68 ) — (68 ) Postretirement benefit expense 41 — 41 Stock-based compensation expense (47 ) (2 ) (49 ) Financing costs (130 ) — (130 ) Currency (39 ) — (39 ) Other income/expense methodology differences (55 ) — (55 ) Other methodology differences (32 ) 4 (28 ) Total consolidated profit before taxes $ 105 $ 184 $ 289 Three Months Ended March 31, 2016 Total profit from reportable segments $ 754 $ 168 $ 922 All Other operating segments (7 ) — (7 ) Cost centers 25 — 25 Corporate costs (159 ) — (159 ) Timing 32 — 32 Restructuring costs (159 ) (2 ) (161 ) Methodology differences: — Inventory/cost of sales (3 ) — (3 ) Postretirement benefit expense 55 — 55 Stock-based compensation expense (97 ) (4 ) (101 ) Financing costs (135 ) — (135 ) Currency (40 ) — (40 ) Other income/expense methodology differences (56 ) — (56 ) Other methodology differences (12 ) 5 (7 ) Total consolidated profit before taxes $ 198 $ 167 $ 365 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 (loss) Restructuring costs Segment profit (loss) with restructuring costs Three Months Ended March 31, 2017 Construction Industries $ 635 $ (667 ) $ (32 ) Resource Industries 158 (59 ) 99 Energy & Transportation 552 (14 ) 538 Financial Products Segment 183 (1 ) 182 All Other operating segments (13 ) (6 ) (19 ) Total $ 1,515 $ (747 ) $ 768 Three Months Ended March 31, 2016 Construction Industries $ 440 $ (22 ) $ 418 Resource Industries (96 ) (25 ) (121 ) Energy & Transportation 410 (100 ) 310 Financial Products Segment 168 (2 ) 166 All Other operating segments (7 ) (5 ) (12 ) Total $ 915 $ (154 ) $ 761 Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total March 31, 2017 Total assets from reportable segments $ 19,113 $ 36,367 $ — $ 55,480 All Other operating segments 1,355 — — 1,355 Items not included in segment assets: Cash and short-term investments 8,223 — — 8,223 Intercompany receivables 1,671 — (1,671 ) — Investment in Financial Products 3,863 — (3,863 ) — Deferred income taxes 3,766 — (920 ) 2,846 Goodwill and intangible assets 4,001 — — 4,001 Property, plant and equipment – net and other assets 1,885 — — 1,885 Operating lease methodology difference (179 ) — — (179 ) Inventory methodology differences (2,320 ) — — (2,320 ) Intercompany loan included in Financial Products' assets — — (1,500 ) (1,500 ) Liabilities included in segment assets 8,312 — — 8,312 Other (484 ) (21 ) (49 ) (554 ) Total assets $ 49,206 $ 36,346 $ (8,003 ) $ 77,549 December 31, 2016 Total assets from reportable segments $ 20,293 $ 35,224 $ — $ 55,517 All Other operating segments 1,381 — — 1,381 Items not included in segment assets: Cash and short-term investments 5,257 — — 5,257 Intercompany receivables 1,713 — (1,713 ) — Investment in Financial Products 3,638 — (3,638 ) — Deferred income taxes 3,648 — (947 ) 2,701 Goodwill and intangible assets 3,883 — — 3,883 Property, plant and equipment – net and other assets 1,645 — — 1,645 Operating lease methodology difference (186 ) — — (186 ) Inventory methodology differences (2,373 ) — — (2,373 ) Liabilities included in segment assets 7,400 — — 7,400 Other (436 ) (29 ) (56 ) (521 ) Total assets $ 45,863 $ 35,195 $ (6,354 ) $ 74,704 Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended March 31, 2017 Total depreciation and amortization from reportable segments $ 387 $ 208 $ 595 Items not included in segment depreciation and amortization: All Other operating segments 54 — 54 Cost centers 35 — 35 Other 15 11 26 Total depreciation and amortization $ 491 $ 219 $ 710 Three Months Ended March 31, 2016 Total depreciation and amortization from reportable segments $ 434 $ 205 $ 639 Items not included in segment depreciation and amortization: All Other operating segments 52 — 52 Cost centers 40 — 40 Other (1 ) 10 9 Total depreciation and amortization $ 525 $ 215 $ 740 Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended March 31, 2017 Total capital expenditures from reportable segments $ 158 $ 246 $ — $ 404 Items not included in segment capital expenditures: All Other operating segments 20 — — 20 Cost centers 9 — — 9 Timing 88 — — 88 Other (66 ) 57 (3 ) (12 ) Total capital expenditures $ 209 $ 303 $ (3 ) $ 509 Three Months Ended March 31, 2016 Total capital expenditures from reportable segments $ 210 $ 297 $ — $ 507 Items not included in segment capital expenditures: All Other operating segments 16 — — 16 Cost centers 12 — — 12 Timing 217 — — 217 Other (76 ) 73 (9 ) (12 ) Total capital expenditures $ 379 $ 370 $ (9 ) $ 740

Cat Financial Financing Activit

Cat Financial Financing Activities	3 Months Ended
	Mar. 31, 2017
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 - Includes finance receivables originated in the United States or Canada. • Europe - Includes finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States. • Asia Pacific - Includes finance receivables originated in Australia, New Zealand, China, Japan and Southeast Asia. • Mining - Includes finance receivables related to large mining customers worldwide and project financing in various countries. • Latin America - Includes finance receivables originated in Central and South American countries and Mexico. • Caterpillar Power Finance - Includes 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) March 31, 2017 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 331 $ 10 $ 341 Receivables written off (24 ) — (24 ) Recoveries on receivables previously written off 9 — 9 Provision for credit losses 12 2 14 Other 3 — 3 Balance at end of period $ 331 $ 12 $ 343 Individually evaluated for impairment $ 98 $ — $ 98 Collectively evaluated for impairment 233 12 245 Ending Balance $ 331 $ 12 $ 343 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 858 $ — $ 858 Collectively evaluated for impairment 18,027 3,537 21,564 Ending Balance $ 18,885 $ 3,537 $ 22,422 (Millions of dollars) December 31, 2016 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 327 $ 9 $ 336 Receivables written off (158 ) — (158 ) Recoveries on receivables previously written off 35 — 35 Provision for credit losses 132 1 133 Other (5 ) — (5 ) Balance at end of year $ 331 $ 10 $ 341 Individually evaluated for impairment $ 85 $ — $ 85 Collectively evaluated for impairment 246 10 256 Ending Balance $ 331 $ 10 $ 341 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 786 $ — $ 786 Collectively evaluated for impairment 18,236 3,375 21,611 Ending Balance $ 19,022 $ 3,375 $ 22,397 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 recorded investment in finance receivables past due when any installment is over 30 days past due. The tables below summarize the recorded investment in finance receivables by aging category. March 31, 2017 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 56 $ 17 $ 61 $ 134 $ 7,837 $ 7,971 $ 7 Europe 23 18 46 87 2,361 2,448 10 Asia Pacific 21 8 15 44 1,529 1,573 5 Mining 13 5 53 71 1,818 1,889 — Latin America 67 47 215 329 1,767 2,096 — Caterpillar Power Finance 30 7 66 103 2,805 2,908 6 Dealer North America — — — — 2,086 2,086 — Europe — — — — 153 153 — Asia Pacific — — — — 567 567 — Mining — — — — 3 3 — Latin America — — — — 726 726 — Caterpillar Power Finance — — — — 2 2 — Total $ 210 $ 102 $ 456 $ 768 $ 21,654 $ 22,422 $ 28 December 31, 2016 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 50 $ 16 $ 59 $ 125 $ 7,938 $ 8,063 $ 5 Europe 16 12 39 67 2,388 2,455 6 Asia Pacific 17 7 15 39 1,435 1,474 4 Mining 3 2 63 68 1,756 1,824 2 Latin America 40 33 214 287 1,808 2,095 — Caterpillar Power Finance 11 9 73 93 3,018 3,111 1 Dealer North America — — — — 1,916 1,916 — Europe — — — — 161 161 — Asia Pacific — — — — 541 541 — Mining — — — — 3 3 — Latin America — — — — 752 752 — Caterpillar Power Finance — — — — 2 2 — Total $ 137 $ 79 $ 463 $ 679 $ 21,718 $ 22,397 $ 18 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 March 31, 2017 or December 31, 2016 , 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: March 31, 2017 December 31, 2016 (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 $ 11 $ 11 $ — $ 10 $ 10 $ — Europe 48 47 — 49 48 — Asia Pacific 30 29 — 3 2 — Mining 133 132 — 129 129 — Latin America 67 67 — 68 68 — Caterpillar Power Finance 289 289 — 271 271 — Total $ 578 $ 575 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 56 $ 54 $ 22 $ 61 $ 60 $ 22 Europe 4 4 2 7 7 3 Asia Pacific 31 31 4 50 50 8 Mining — — — — — — Latin America 110 121 39 93 104 34 Caterpillar Power Finance 79 78 31 45 44 18 Total $ 280 $ 288 $ 98 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 67 $ 65 $ 22 $ 71 $ 70 $ 22 Europe 52 51 2 56 55 3 Asia Pacific 61 60 4 53 52 8 Mining 133 132 — 129 129 — Latin America 177 188 39 161 172 34 Caterpillar Power Finance 368 367 31 316 315 18 Total $ 858 $ 863 $ 98 $ 786 $ 793 $ 85 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 $ 10 $ — $ 14 $ — Europe 49 — 40 — Asia Pacific 9 — 2 — Mining 128 1 81 1 Latin America 72 1 27 — Caterpillar Power Finance 267 3 253 3 Total $ 535 $ 5 $ 417 $ 4 Impaired Finance Receivables With An Allowance Recorded North America $ 61 $ — $ 14 $ — Europe 6 — 12 — Asia Pacific 45 1 33 1 Mining — — 11 — Latin America 96 1 51 1 Caterpillar Power Finance 63 1 59 — Total $ 271 $ 3 $ 180 $ 2 Total Impaired Finance Receivables North America $ 71 $ — $ 28 $ — Europe 55 — 52 — Asia Pacific 54 1 35 1 Mining 128 1 92 1 Latin America 168 2 78 1 Caterpillar Power Finance 330 4 312 3 Total $ 806 $ 8 $ 597 $ 6 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 March 31, 2017 and December 31, 2016 , there were no finance receivables on non-accrual status for the Dealer portfolio segment. The recorded investment in customer finance receivables on non-accrual status was as follows: (Millions of dollars) March 31, 2017 December 31, 2016 North America $ 66 $ 66 Europe 37 35 Asia Pacific 15 12 Mining 56 69 Latin America 308 307 Caterpillar Power Finance 70 90 Total $ 552 $ 579 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 March 31, 2017 , there were no additional funds committed to lend to a borrower whose terms have been modified in a TDR. As of December 31, 2016 , there was $11 million 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 months ended March 31, 2017 or 2016 for the Dealer portfolio segment. Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the three months ended March 31, 2017 and 2016 , were as follows: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (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 9 $ 1 $ 1 11 $ 10 $ 10 Europe 1 — — — — — Asia Pacific 5 39 30 4 3 3 Mining 2 57 56 — — — Latin America 7 2 2 2 — — Caterpillar Power Finance 6 25 24 4 39 27 Total 30 $ 124 $ 113 21 $ 52 $ 40

Fair Value Disclosures

Fair Value Disclosures	3 Months Ended
	Mar. 31, 2017
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 contracts 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 March 31, 2017 and December 31, 2016 are summarized below: March 31, 2017 (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 — 58 — 58 Corporate bonds Corporate bonds — 482 — 482 Asset-backed securities — 88 — 88 Mortgage-backed debt securities U.S. governmental agency — 212 — 212 Residential — 9 — 9 Commercial — 31 — 31 Equity securities Large capitalization value 325 — — 325 Smaller company growth 60 — — 60 Total available-for-sale securities 394 880 — 1,274 REIT — — 88 88 Total Assets $ 394 $ 880 $ 88 $ 1,362 Liabilities Derivative financial instruments, net — 21 — 21 Total Liabilities $ — $ 21 $ — $ 21 December 31, 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 — 60 — 60 Corporate bonds Corporate bonds — 492 — 492 Asset-backed securities — 90 — 90 Mortgage-backed debt securities U.S. governmental agency — 223 — 223 Residential — 10 — 10 Commercial — 36 — 36 Equity securities Large capitalization value 312 — — 312 Smaller company growth 56 — — 56 Total available-for-sale securities 377 911 — 1,288 REIT — — 79 79 Total Assets $ 377 $ 911 $ 79 $ 1,367 Liabilities Derivative financial instruments, net $ — $ 72 $ — $ 72 Total Liabilities $ — $ 72 $ — $ 72 The fair value of our REIT investment is measured based on NAV, which is considered a Level 3 input. A roll-forward for the three months ended March 31, 2017 of our REIT investment is as follows. (Millions of dollars) REIT Balance at December 31, 2016 $ 79 Purchases of securities 7 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) 2 Balance at March 31, 2017 $ 88 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 $127 million and $137 million as of March 31, 2017 and December 31, 2016 , 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 March 31, 2017 December 31, 2016 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 9,472 $ 9,472 $ 7,168 $ 7,168 1 Restricted cash and short-term investments 63 63 31 31 1 Investments in debt and equity securities 1,362 1,362 1,367 1,367 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 16,002 15,983 16,172 16,056 3 Note 16 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,424 1,391 1,500 1,464 3 Note 16 Interest rate contracts – net 2 2 3 3 2 Note 4 Commodity contracts – net 7 7 10 10 2 Note 4 Liabilities Short-term borrowings 7,821 7,821 7,303 7,303 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,309 10,771 8,943 10,348 2 Financial Products 21,152 21,341 20,537 20,724 2 Foreign currency contracts – net 30 30 85 85 2 Note 4 Guarantees 8 8 8 8 3 Note 10 1 Total excluded items have a net carrying value at March 31, 2017 and December 31, 2016 of $6,301 million and $6,111 million , respectively.

Restructuring Costs

Restructuring Costs	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 were as follows: (Millions of dollars) Three Months Ended March 31 2017 2016 Employee separations 1 $ 464 $ 31 Contract terminations 1 9 11 Long-lived asset impairments 1 212 82 Defined benefit plan curtailments and termination benefits 1 29 — Other 2 38 37 Total restructuring costs $ 752 $ 161 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, inventory write-downs, equipment relocation and project management, which were recognized primarily in Cost of goods sold. In March 2017, Caterpillar informed Belgian authorities of the decision to proceed to a collective dismissal, which will lead to the closure of the Gosselies site, impacting about 2,000 employees. Production of Caterpillar products at the Gosselies site will be gradually phased out, with all production operations expected to end by mid-year 2017. The other operations and functions at the Gosselies site are expected to be gradually phased out until the end of 2017. We estimate restructuring costs incurred under this program to be about $750 million . For the three months ended March 31, 2017 , we recognized $671 million of restructuring costs which included $439 million of employee separation costs, $199 million for long-lived asset impairments and $33 million of other costs. The majority of the remaining costs are expected to be recognized in 2017 . The remaining restructuring costs in the first quarter of 2017 primarily related to our decision to move production from the Aurora, Illinois, facility into other U.S. manufacturing facilities by the end of 2018, as well as other ongoing manufacturing facility consolidations. The restructuring costs in the first quarter of 2016 were related to our decision to discontinue production of on-highway vocational trucks, as discussed below, and other restructuring actions 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 2016 and 2017 employee separation activity: (Millions of dollars) Liability balance at December 31, 2015 $ 483 Increase in liability (separation charges) 297 Reduction in liability (payments) (633 ) Liability balance at December 31, 2016 $ 147 Increase in liability (separation charges) 464 Reduction in liability (payments) (62 ) Liability balance at March 31, 2017 $ 549 Most of the liability balance at March 31, 2017 is expected to be paid in 2017 and primarily includes employee separation payments related to our decision to close the Gosselies facility. Restructuring costs for the year ended December 31, 2016 were $1,019 million . Throughout 2016 , we initiated the following restructuring plans: • 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 recognized $104 million of restructuring costs, primarily related to long-lived asset impairments and sales discounts and expect to recognize the remaining $6 million for this restructuring plan in 2017 . • In the second half of 2016, we took additional restructuring actions in Resource Industries, including ending the production of track drills; pursuing strategic alternatives, including a possible divestiture of room and pillar products; consolidation of two product development divisions; and additional actions in response to ongoing weakness in the mining industry. For the year ended December 31, 2016 , we incurred $369 million of restructuring costs for these plans primarily related to long-lived asset impairments, employee separation costs and inventory write-downs. For the three months ended March 31, 2017 , we recognized $5 million of restructuring costs for these plans and expect to recognize the remaining $12 million for these plans in 2017 . In September 2015, we announced a large scale restructuring plan (the Plan) including a voluntary retirement enhancement program for qualifying U.S. employees, several voluntary separation programs outside of the U.S., additional involuntary programs throughout the company and manufacturing facility consolidations and closures expected to occur through 2018. The largest action among those included in the Plan was related to our European manufacturing footprint, which led to the Gosselies facility closure as discussed above. In the first quarter of 2017 , we incurred $705 million of restructuring costs related to the Plan, and we incurred $281 million and $569 million in 2016 and 2015 , respectively, for a total of $1,555 million through March 31, 2017 . We expect to recognize approximately $265 million of additional restructuring costs related to the Plan in 2017 .

Derivative Financial Instrume28

Derivative Financial Instruments and Risk Management (Policies)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 , 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 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 March 31, 2017 , $11 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 assets and liabilities, 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 assets and liabilities. 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 contracts 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 contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts 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. 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 contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts 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 contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both Machinery, Energy & Transportation and Financial Products. The gains or losses associated with these contracts 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)	3 Months Ended
	Mar. 31, 2017
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) March 31, 2017 December 31, 2016 Receivables - trade and other $ 64 $ 55 Receivables - finance 147 174 Long-term receivables - finance 233 246 Investments in unconsolidated affiliated companies 36 31 Guarantees 216 210 Total $ 696 $ 716 In addition, Cat Financial has end-user customers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
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 three months ended March 31, 2017 and 2016 , respectively: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 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 2,701,644 $ 25.01 $ 95.66 4,243,272 $ 20.64 $ 74.77 RSUs 906,068 $ 89.76 $ 95.63 1,085,505 $ 68.04 $ 74.77 PRSUs 437,385 $ 86.78 $ 95.66 614,347 $ 64.71 $ 74.77
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 three months ended March 31, 2017 and 2016 , respectively: Grant Year 2017 2016 Weighted-average dividend yield 3.42% 3.23% Weighted-average volatility 29.2% 31.1% Range of volatilities 22.1-33.0% 22.5-33.4% Range of risk-free interest rates 0.81-2.35% 0.62-1.73% Weighted-average expected lives 8 years 8 years

Derivative Financial Instrume31

Derivative Financial Instruments and Risk Management (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 December 31, 2016 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 14 $ 13 Machinery, Energy & Transportation Accrued expenses (32 ) (93 ) Machinery, Energy & Transportation Other liabilities (27 ) (36 ) Financial Products Long-term receivables – trade and other 24 29 Financial Products Accrued expenses (16 ) (3 ) Interest rate contracts Financial Products Long-term receivables – trade and other 3 4 Financial Products Accrued expenses (1 ) (1 ) $ (35 ) $ (87 ) Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 4 $ — Machinery, Energy & Transportation Accrued expenses (15 ) (30 ) Financial Products Receivables – trade and other 28 39 Financial Products Accrued expenses (10 ) (4 ) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 7 10 $ 14 $ 15
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments are as follows: (Millions of dollars) March 31, 2017 December 31, 2016 Machinery, Energy & Transportation $ 2,412 $ 2,530 Financial Products $ 3,008 $ 2,626
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) $ (1 ) $ 1 $ 3 $ (4 ) $ (1 ) $ 1 $ 3 $ (4 ) Cash Flow Hedges Three Months Ended March 31, 2017 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 $ 33 Other income (expense) $ (39 ) $ — Financial Products (18 ) Other income (expense) (22 ) — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (2 ) — Financial Products — Interest expense of Financial Products 1 — $ 15 $ (62 ) $ — Three Months Ended March 31, 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 $ 16 Other income (expense) $ (10 ) $ — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (2 ) — Financial Products (1 ) Interest expense of Financial Products (2 ) — $ 15 $ (14 ) $ —
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) $ 13 $ 22 Financial Products Other income (expense) (7 ) (4 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) 1 — $ 7 $ 18
Effect of net settlement provisions of the master netting agreements on derivative assets	December 31, 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 $ 23 $ — $ 23 $ (21 ) $ — $ 2 Financial Products 72 — 72 (7 ) — 65 Total $ 95 $ — $ 95 $ (28 ) $ — $ 67 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: March 31, 2017 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 $ 25 $ — $ 25 $ (23 ) $ — $ 2 Financial Products 55 — 55 (5 ) — 50 Total $ 80 $ — $ 80 $ (28 ) $ — $ 52
Effect of net settlement provisions of the master netting agreements on derivative liabilities	March 31, 2017 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 $ (74 ) $ — $ (74 ) $ 23 $ — $ (51 ) Financial Products (27 ) — (27 ) 5 — (22 ) Total $ (101 ) $ — $ (101 ) $ 28 $ — $ (73 ) December 31, 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 $ (159 ) $ — $ (159 ) $ 21 $ — $ (138 ) Financial Products (8 ) — (8 ) 7 — (1 ) Total $ (167 ) $ — $ (167 ) $ 28 $ — $ (139 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following: (Millions of dollars) March 31, December 31, Raw materials $ 2,325 $ 2,102 Work-in-process 1,850 1,719 Finished goods 4,698 4,576 Supplies 209 217 Total inventories $ 9,082 $ 8,614

Investments in Unconsolidated33

Investments in Unconsolidated Affiliated Companies (Tables)	3 Months Ended
	Mar. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
Caterpillar's investments in unconsolidated affiliated companies	Investments in unconsolidated affiliated companies, included in Other assets in the Consolidated Statement of Financial Position, were as follows: (Millions of dollars) March 31, December 31, Investments in equity method companies $ 193 $ 192 Plus: Investments in cost method companies 37 57 Total investments in unconsolidated affiliated companies $ 230 $ 249

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets are comprised of the following: March 31, 2017 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,388 $ (978 ) $ 1,410 Intellectual property 11 1,497 (729 ) 768 Other 13 191 (82 ) 109 Total finite-lived intangible assets 14 $ 4,076 $ (1,789 ) $ 2,287 December 31, 2016 Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,378 $ (934 ) $ 1,444 Intellectual property 11 1,496 (706 ) 790 Other 14 192 (77 ) 115 Total finite-lived intangible assets 14 $ 4,066 $ (1,717 ) $ 2,349
Expected amortization expense related to intangible assets	Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Nine Months of 2017 2018 2019 2020 2021 Thereafter $237 $311 $305 $295 $277 $862
Goodwill acquired	The changes in carrying amount of goodwill by reportable segment for the three months ended March 31, 2017 were as follows: (Millions of dollars) December 31, Other Adjustments 1 March 31, Construction Industries Goodwill $ 296 $ 3 $ 299 Impairments (22 ) — (22 ) Net goodwill 274 3 277 Resource Industries Goodwill 4,110 21 4,131 Impairments (1,175 ) — (1,175 ) Net goodwill 2,935 21 2,956 Energy & Transportation Goodwill 2,756 7 2,763 All Other 2 Goodwill 55 — 55 Consolidated total Goodwill 7,217 31 7,248 Impairments (1,197 ) — (1,197 ) Net goodwill $ 6,020 $ 31 $ 6,051 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)	3 Months Ended
	Mar. 31, 2017
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: March 31, 2017 December 31, 2016 (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 58 — 58 60 — 60 Corporate bonds Corporate bonds 479 3 482 489 3 492 Asset-backed securities 88 — 88 90 — 90 Mortgage-backed debt securities U.S. governmental agency 214 (2 ) 212 225 (2 ) 223 Residential 9 — 9 10 — 10 Commercial 31 — 31 36 — 36 Equity securities Large capitalization value 281 44 325 280 32 312 Real estate investment trust (REIT) 84 4 88 77 2 79 Smaller company growth 41 19 60 41 15 56 Total $ 1,294 $ 68 $ 1,362 $ 1,317 $ 50 $ 1,367
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: March 31, 2017 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 $ 121 $ 1 $ 12 $ — $ 133 $ 1 Mortgage-backed debt securities U.S. governmental agency 140 2 12 — 152 2 Equity securities Large capitalization value 42 5 8 1 50 6 Small company growth 6 1 2 — 8 1 Total $ 309 $ 9 $ 34 $ 1 $ 343 $ 10 December 31, 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 Corporate bonds $ 131 $ 1 $ 13 $ — $ 144 $ 1 Mortgage-backed debt securities U.S. governmental agency 167 2 11 — 178 2 Equity securities Large capitalization value 68 6 11 2 79 8 Smaller company growth 10 1 3 1 13 2 Total $ 376 $ 10 $ 38 $ 3 $ 414 $ 13 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 March 31, 2017 , 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. March 31, 2017 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 198 $ 200 Due after one year through five years 386 387 Due after five years through ten years 24 24 Due after ten years 26 26 U.S. governmental agency mortgage-backed securities 214 212 Residential mortgage-backed securities 9 9 Commercial mortgage-backed securities 31 31 Total debt securities – available-for-sale $ 888 $ 889
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities	Sales of Securities: Three Months Ended (Millions of dollars) 2017 2016 Proceeds from the sale of available-for-sale securities $ 89 $ 49 Gross gains from the sale of available-for-sale securities $ 1 $ 1 Gross losses from the sale of available-for-sale securities $ 1 $ 1

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2017
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) March 31 March 31 March 31 2017 2016 2017 2016 2017 2016 For the three months ended: Components of net periodic benefit cost: Service cost $ 29 $ 30 $ 23 $ 23 $ 19 $ 20 Interest cost 131 129 25 30 33 33 Expected return on plan assets (184 ) (189 ) (57 ) (58 ) (9 ) (11 ) Amortization of prior service cost (credit) 1 — — — — (5 ) (15 ) Net periodic benefit cost (benefit) (24 ) (30 ) (9 ) (5 ) 38 27 Curtailments and termination benefits 2 9 — 20 — — (2 ) Total cost (benefit) included in operating profit $ (15 ) $ (30 ) $ 11 $ (5 ) $ 38 $ 25 Weighted-average assumptions used to determine net cost: Discount rate used to measure service cost 4.2 % 4.5 % 2.3 % 2.9 % 3.9 % 4.4 % Discount rate used to measure interest cost 3.3 % 3.4 % 2.3 % 2.8 % 3.3 % 3.3 % Expected rate of return on plan assets 6.7 % 6.9 % 5.9 % 6.1 % 7.5 % 7.5 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 3.5 % 4.0 % 4.0 % 1 Prior service cost (credit) for both pension and other postretirement benefits is 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) is 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) March 31 March 31 March 31 2017 2016 2017 2016 2017 2016 For the three months ended: Components of net periodic benefit cost: Service cost $ 29 $ 30 $ 23 $ 23 $ 19 $ 20 Interest cost 131 129 25 30 33 33 Expected return on plan assets (184 ) (189 ) (57 ) (58 ) (9 ) (11 ) Amortization of prior service cost (credit) 1 — — — — (5 ) (15 ) Net periodic benefit cost (benefit) (24 ) (30 ) (9 ) (5 ) 38 27 Curtailments and termination benefits 2 9 — 20 — — (2 ) Total cost (benefit) included in operating profit $ (15 ) $ (30 ) $ 11 $ (5 ) $ 38 $ 25 Weighted-average assumptions used to determine net cost: Discount rate used to measure service cost 4.2 % 4.5 % 2.3 % 2.9 % 3.9 % 4.4 % Discount rate used to measure interest cost 3.3 % 3.4 % 2.3 % 2.8 % 3.3 % 3.3 % Expected rate of return on plan assets 6.7 % 6.9 % 5.9 % 6.1 % 7.5 % 7.5 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 3.5 % 4.0 % 4.0 % 1 Prior service cost (credit) for both pension and other postretirement benefits is 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) is 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 (Millions of dollars) 2017 2016 U.S. Plans $ 80 $ 85 Non-U.S. Plans 16 18 $ 96 $ 103

Guarantees and Product Warran37

Guarantees and Product Warranty (Tables)	3 Months Ended
	Mar. 31, 2017
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) March 31, December 31, Caterpillar dealer performance guarantees $ 1,436 $ 1,384 Customer loan guarantees 42 51 Supplier consortium performance guarantee 282 278 Third party logistics business lease guarantees 82 87 Other guarantees 77 56 Total guarantees $ 1,919 $ 1,856
Product warranty	(Millions of dollars) 2017 Warranty liability, January 1 $ 1,258 Reduction in liability (payments) (206 ) Increase in liability (new warranties) 220 Warranty liability, March 31 $ 1,272 (Millions of dollars) 2016 Warranty liability, January 1 $ 1,354 Reduction in liability (payments) (909 ) Increase in liability (new warranties) 813 Warranty liability, December 31 $ 1,258

Profit Per Share (Tables)

Profit Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computations of profit per share	Computations of profit per share: Three Months Ended (Dollars in millions except per share data) 2017 2016 Profit for the period (A) 1 $ 192 $ 271 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 587.5 582.8 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 5.7 4.9 Average common shares outstanding for fully diluted computation (C) 2 593.2 587.7 Profit per share of common stock: Assuming no dilution (A/B) $ 0.33 $ 0.46 Assuming full dilution (A/C) 2 $ 0.32 $ 0.46 Shares outstanding as of March 31 (in millions) 589.1 583.9 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Accumulated Other Comprehensi39

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2017
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 Shareholders’ 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 March 31, 2017 Balance at December 31, 2016 $ (1,970 ) $ 14 $ (115 ) $ 32 $ (2,039 ) Other comprehensive income (loss) before reclassifications 145 8 10 8 171 Amounts reclassified from accumulated other comprehensive (income) loss 2 (4 ) 40 3 41 Other comprehensive income (loss) 147 4 50 11 212 Balance at March 31, 2017 $ (1,823 ) $ 18 $ (65 ) $ 43 $ (1,827 ) Three Months Ended March 31, 2016 Balance at December 31, 2015 $ (1,953 ) $ (69 ) $ (50 ) $ 37 $ (2,035 ) Other comprehensive income (loss) before reclassifications 408 118 9 6 541 Amounts reclassified from accumulated other comprehensive (income) loss — (10 ) 9 2 1 Other comprehensive income (loss) 408 108 18 8 542 Balance at March 31, 2016 $ (1,545 ) $ 39 $ (32 ) $ 45 $ (1,493 )
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 March 31 (Millions of dollars) Classification of income (expense) 2017 2016 Foreign currency translation Gain (loss) on foreign currency translation Other income (expense) $ (2 ) $ — Tax (provision) benefit — — Reclassifications net of tax $ (2 ) $ — Pension and other postretirement benefits: Amortization of prior service credit (cost) Note 9 1 $ 5 $ 15 Tax (provision) benefit (1 ) (5 ) Reclassifications net of tax $ 4 $ 10 Derivative financial instruments: Foreign exchange contracts Other income (expense) $ (61 ) $ (10 ) Interest rate contracts Interest expense excluding Financial Products (2 ) (2 ) Interest rate contracts Interest expense of Financial Products 1 (2 ) Reclassifications before tax (62 ) (14 ) Tax (provision) benefit 22 5 Reclassifications net of tax $ (40 ) $ (9 ) Available-for-sale securities: Realized gain (loss) Other income (expense) $ (4 ) $ (3 ) Tax (provision) benefit 1 1 Reclassifications net of tax $ (3 ) $ (2 ) Total reclassifications from Accumulated other comprehensive income (loss) $ (41 ) $ (1 ) 1 Amounts are included in the calculation of net periodic benefit cost. See Note 9 for additional information.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Reportable Segments	Reportable Segments Three Months Ended March 31 (Millions of dollars) 2017 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit (loss) Segment assets at March 31 Capital expenditures Construction Industries $ 4,091 $ 25 $ 4,116 $ 102 $ 635 $ 4,826 $ 21 Resource Industries 1,670 91 1,761 127 158 6,797 21 Energy & Transportation 3,356 780 4,136 158 552 7,490 116 Machinery, Energy & Transportation $ 9,117 $ 896 $ 10,013 $ 387 $ 1,345 $ 19,113 $ 158 Financial Products Segment 760 — 760 208 183 36,367 246 Total $ 9,877 $ 896 $ 10,773 $ 595 $ 1,528 $ 55,480 $ 404 2016 External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit (loss) Segment assets at December 31 Capital expenditures Construction Industries $ 4,043 $ 8 $ 4,051 $ 113 $ 440 $ 5,367 $ 28 Resource Industries 1,449 71 1,520 155 (96 ) 7,135 35 Energy & Transportation 3,278 632 3,910 166 410 7,791 147 Machinery, Energy & Transportation $ 8,770 $ 711 $ 9,481 $ 434 $ 754 $ 20,293 $ 210 Financial Products Segment 743 — 743 205 168 35,224 297 Total $ 9,513 $ 711 $ 10,224 $ 639 $ 922 $ 55,517 $ 507
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 March 31, 2017 Total external sales and revenues from reportable segments $ 9,117 $ 760 $ — $ 9,877 All Other operating segments 37 — — 37 Other (24 ) 17 (85 ) 1 (92 ) Total sales and revenues $ 9,130 $ 777 $ (85 ) $ 9,822 Three Months Ended March 31, 2016 Total external sales and revenues from reportable segments $ 8,770 $ 743 $ — $ 9,513 All Other operating segments 38 — — 38 Other (28 ) 16 (78 ) 1 (90 ) Total sales and revenues $ 8,780 $ 759 $ (78 ) $ 9,461 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 March 31, 2017 Total profit from reportable segments $ 1,345 $ 183 $ 1,528 All Other operating segments (13 ) — (13 ) Cost centers 7 — 7 Corporate costs (115 ) — (115 ) Timing (38 ) — (38 ) Restructuring costs (751 ) (1 ) (752 ) Methodology differences: Inventory/cost of sales (68 ) — (68 ) Postretirement benefit expense 41 — 41 Stock-based compensation expense (47 ) (2 ) (49 ) Financing costs (130 ) — (130 ) Currency (39 ) — (39 ) Other income/expense methodology differences (55 ) — (55 ) Other methodology differences (32 ) 4 (28 ) Total consolidated profit before taxes $ 105 $ 184 $ 289 Three Months Ended March 31, 2016 Total profit from reportable segments $ 754 $ 168 $ 922 All Other operating segments (7 ) — (7 ) Cost centers 25 — 25 Corporate costs (159 ) — (159 ) Timing 32 — 32 Restructuring costs (159 ) (2 ) (161 ) Methodology differences: — Inventory/cost of sales (3 ) — (3 ) Postretirement benefit expense 55 — 55 Stock-based compensation expense (97 ) (4 ) (101 ) Financing costs (135 ) — (135 ) Currency (40 ) — (40 ) Other income/expense methodology differences (56 ) — (56 ) Other methodology differences (12 ) 5 (7 ) Total consolidated profit before taxes $ 198 $ 167 $ 365
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 (loss) Restructuring costs Segment profit (loss) with restructuring costs Three Months Ended March 31, 2017 Construction Industries $ 635 $ (667 ) $ (32 ) Resource Industries 158 (59 ) 99 Energy & Transportation 552 (14 ) 538 Financial Products Segment 183 (1 ) 182 All Other operating segments (13 ) (6 ) (19 ) Total $ 1,515 $ (747 ) $ 768 Three Months Ended March 31, 2016 Construction Industries $ 440 $ (22 ) $ 418 Resource Industries (96 ) (25 ) (121 ) Energy & Transportation 410 (100 ) 310 Financial Products Segment 168 (2 ) 166 All Other operating segments (7 ) (5 ) (12 ) Total $ 915 $ (154 ) $ 761
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total March 31, 2017 Total assets from reportable segments $ 19,113 $ 36,367 $ — $ 55,480 All Other operating segments 1,355 — — 1,355 Items not included in segment assets: Cash and short-term investments 8,223 — — 8,223 Intercompany receivables 1,671 — (1,671 ) — Investment in Financial Products 3,863 — (3,863 ) — Deferred income taxes 3,766 — (920 ) 2,846 Goodwill and intangible assets 4,001 — — 4,001 Property, plant and equipment – net and other assets 1,885 — — 1,885 Operating lease methodology difference (179 ) — — (179 ) Inventory methodology differences (2,320 ) — — (2,320 ) Intercompany loan included in Financial Products' assets — — (1,500 ) (1,500 ) Liabilities included in segment assets 8,312 — — 8,312 Other (484 ) (21 ) (49 ) (554 ) Total assets $ 49,206 $ 36,346 $ (8,003 ) $ 77,549 December 31, 2016 Total assets from reportable segments $ 20,293 $ 35,224 $ — $ 55,517 All Other operating segments 1,381 — — 1,381 Items not included in segment assets: Cash and short-term investments 5,257 — — 5,257 Intercompany receivables 1,713 — (1,713 ) — Investment in Financial Products 3,638 — (3,638 ) — Deferred income taxes 3,648 — (947 ) 2,701 Goodwill and intangible assets 3,883 — — 3,883 Property, plant and equipment – net and other assets 1,645 — — 1,645 Operating lease methodology difference (186 ) — — (186 ) Inventory methodology differences (2,373 ) — — (2,373 ) Liabilities included in segment assets 7,400 — — 7,400 Other (436 ) (29 ) (56 ) (521 ) Total assets $ 45,863 $ 35,195 $ (6,354 ) $ 74,704
Reconciliation of Depreciation and amortization:	Reconciliations of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total Three Months Ended March 31, 2017 Total depreciation and amortization from reportable segments $ 387 $ 208 $ 595 Items not included in segment depreciation and amortization: All Other operating segments 54 — 54 Cost centers 35 — 35 Other 15 11 26 Total depreciation and amortization $ 491 $ 219 $ 710 Three Months Ended March 31, 2016 Total depreciation and amortization from reportable segments $ 434 $ 205 $ 639 Items not included in segment depreciation and amortization: All Other operating segments 52 — 52 Cost centers 40 — 40 Other (1 ) 10 9 Total depreciation and amortization $ 525 $ 215 $ 740
Reconciliation of Capital expenditures:	Reconciliations of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total Three Months Ended March 31, 2017 Total capital expenditures from reportable segments $ 158 $ 246 $ — $ 404 Items not included in segment capital expenditures: All Other operating segments 20 — — 20 Cost centers 9 — — 9 Timing 88 — — 88 Other (66 ) 57 (3 ) (12 ) Total capital expenditures $ 209 $ 303 $ (3 ) $ 509 Three Months Ended March 31, 2016 Total capital expenditures from reportable segments $ 210 $ 297 $ — $ 507 Items not included in segment capital expenditures: All Other operating segments 16 — — 16 Cost centers 12 — — 12 Timing 217 — — 217 Other (76 ) 73 (9 ) (12 ) Total capital expenditures $ 379 $ 370 $ (9 ) $ 740

Cat Financial Financing Activ41

Cat Financial Financing Activities (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Allowance for credit losses	An analysis of the allowance for credit losses was as follows: (Millions of dollars) March 31, 2017 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 331 $ 10 $ 341 Receivables written off (24 ) — (24 ) Recoveries on receivables previously written off 9 — 9 Provision for credit losses 12 2 14 Other 3 — 3 Balance at end of period $ 331 $ 12 $ 343 Individually evaluated for impairment $ 98 $ — $ 98 Collectively evaluated for impairment 233 12 245 Ending Balance $ 331 $ 12 $ 343 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 858 $ — $ 858 Collectively evaluated for impairment 18,027 3,537 21,564 Ending Balance $ 18,885 $ 3,537 $ 22,422 (Millions of dollars) December 31, 2016 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 327 $ 9 $ 336 Receivables written off (158 ) — (158 ) Recoveries on receivables previously written off 35 — 35 Provision for credit losses 132 1 133 Other (5 ) — (5 ) Balance at end of year $ 331 $ 10 $ 341 Individually evaluated for impairment $ 85 $ — $ 85 Collectively evaluated for impairment 246 10 256 Ending Balance $ 331 $ 10 $ 341 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 786 $ — $ 786 Collectively evaluated for impairment 18,236 3,375 21,611 Ending Balance $ 19,022 $ 3,375 $ 22,397
Aging related to finance receivables	The tables below summarize the recorded investment in finance receivables by aging category. March 31, 2017 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 56 $ 17 $ 61 $ 134 $ 7,837 $ 7,971 $ 7 Europe 23 18 46 87 2,361 2,448 10 Asia Pacific 21 8 15 44 1,529 1,573 5 Mining 13 5 53 71 1,818 1,889 — Latin America 67 47 215 329 1,767 2,096 — Caterpillar Power Finance 30 7 66 103 2,805 2,908 6 Dealer North America — — — — 2,086 2,086 — Europe — — — — 153 153 — Asia Pacific — — — — 567 567 — Mining — — — — 3 3 — Latin America — — — — 726 726 — Caterpillar Power Finance — — — — 2 2 — Total $ 210 $ 102 $ 456 $ 768 $ 21,654 $ 22,422 $ 28 December 31, 2016 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 50 $ 16 $ 59 $ 125 $ 7,938 $ 8,063 $ 5 Europe 16 12 39 67 2,388 2,455 6 Asia Pacific 17 7 15 39 1,435 1,474 4 Mining 3 2 63 68 1,756 1,824 2 Latin America 40 33 214 287 1,808 2,095 — Caterpillar Power Finance 11 9 73 93 3,018 3,111 1 Dealer North America — — — — 1,916 1,916 — Europe — — — — 161 161 — Asia Pacific — — — — 541 541 — Mining — — — — 3 3 — Latin America — — — — 752 752 — Caterpillar Power Finance — — — — 2 2 — Total $ 137 $ 79 $ 463 $ 679 $ 21,718 $ 22,397 $ 18
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: March 31, 2017 December 31, 2016 (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 $ 11 $ 11 $ — $ 10 $ 10 $ — Europe 48 47 — 49 48 — Asia Pacific 30 29 — 3 2 — Mining 133 132 — 129 129 — Latin America 67 67 — 68 68 — Caterpillar Power Finance 289 289 — 271 271 — Total $ 578 $ 575 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 56 $ 54 $ 22 $ 61 $ 60 $ 22 Europe 4 4 2 7 7 3 Asia Pacific 31 31 4 50 50 8 Mining — — — — — — Latin America 110 121 39 93 104 34 Caterpillar Power Finance 79 78 31 45 44 18 Total $ 280 $ 288 $ 98 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 67 $ 65 $ 22 $ 71 $ 70 $ 22 Europe 52 51 2 56 55 3 Asia Pacific 61 60 4 53 52 8 Mining 133 132 — 129 129 — Latin America 177 188 39 161 172 34 Caterpillar Power Finance 368 367 31 316 315 18 Total $ 858 $ 863 $ 98 $ 786 $ 793 $ 85 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 $ 10 $ — $ 14 $ — Europe 49 — 40 — Asia Pacific 9 — 2 — Mining 128 1 81 1 Latin America 72 1 27 — Caterpillar Power Finance 267 3 253 3 Total $ 535 $ 5 $ 417 $ 4 Impaired Finance Receivables With An Allowance Recorded North America $ 61 $ — $ 14 $ — Europe 6 — 12 — Asia Pacific 45 1 33 1 Mining — — 11 — Latin America 96 1 51 1 Caterpillar Power Finance 63 1 59 — Total $ 271 $ 3 $ 180 $ 2 Total Impaired Finance Receivables North America $ 71 $ — $ 28 $ — Europe 55 — 52 — Asia Pacific 54 1 35 1 Mining 128 1 92 1 Latin America 168 2 78 1 Caterpillar Power Finance 330 4 312 3 Total $ 806 $ 8 $ 597 $ 6
Investment in finance receivables on non-accrual status	The recorded investment in customer finance receivables on non-accrual status was as follows: (Millions of dollars) March 31, 2017 December 31, 2016 North America $ 66 $ 66 Europe 37 35 Asia Pacific 15 12 Mining 56 69 Latin America 308 307 Caterpillar Power Finance 70 90 Total $ 552 $ 579
Finance receivables modified as TDRs	Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the three months ended March 31, 2017 and 2016 , were as follows: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (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 9 $ 1 $ 1 11 $ 10 $ 10 Europe 1 — — — — — Asia Pacific 5 39 30 4 3 3 Mining 2 57 56 — — — Latin America 7 2 2 2 — — Caterpillar Power Finance 6 25 24 4 39 27 Total 30 $ 124 $ 113 21 $ 52 $ 40

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 are summarized below: March 31, 2017 (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 — 58 — 58 Corporate bonds Corporate bonds — 482 — 482 Asset-backed securities — 88 — 88 Mortgage-backed debt securities U.S. governmental agency — 212 — 212 Residential — 9 — 9 Commercial — 31 — 31 Equity securities Large capitalization value 325 — — 325 Smaller company growth 60 — — 60 Total available-for-sale securities 394 880 — 1,274 REIT — — 88 88 Total Assets $ 394 $ 880 $ 88 $ 1,362 Liabilities Derivative financial instruments, net — 21 — 21 Total Liabilities $ — $ 21 $ — $ 21 December 31, 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 — 60 — 60 Corporate bonds Corporate bonds — 492 — 492 Asset-backed securities — 90 — 90 Mortgage-backed debt securities U.S. governmental agency — 223 — 223 Residential — 10 — 10 Commercial — 36 — 36 Equity securities Large capitalization value 312 — — 312 Smaller company growth 56 — — 56 Total available-for-sale securities 377 911 — 1,288 REIT — — 79 79 Total Assets $ 377 $ 911 $ 79 $ 1,367 Liabilities Derivative financial instruments, net $ — $ 72 $ — $ 72 Total Liabilities $ — $ 72 $ — $ 72
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 three months ended March 31, 2017 of our REIT investment is as follows. (Millions of dollars) REIT Balance at December 31, 2016 $ 79 Purchases of securities 7 Sale of securities — Gains (losses) included in Accumulated other comprehensive income (loss) 2 Balance at March 31, 2017 $ 88
Fair values of financial instruments	Please refer to the table below for the fair values of our financial instruments. Fair Value of Financial Instruments March 31, 2017 December 31, 2016 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 9,472 $ 9,472 $ 7,168 $ 7,168 1 Restricted cash and short-term investments 63 63 31 31 1 Investments in debt and equity securities 1,362 1,362 1,367 1,367 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 16,002 15,983 16,172 16,056 3 Note 16 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,424 1,391 1,500 1,464 3 Note 16 Interest rate contracts – net 2 2 3 3 2 Note 4 Commodity contracts – net 7 7 10 10 2 Note 4 Liabilities Short-term borrowings 7,821 7,821 7,303 7,303 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,309 10,771 8,943 10,348 2 Financial Products 21,152 21,341 20,537 20,724 2 Foreign currency contracts – net 30 30 85 85 2 Note 4 Guarantees 8 8 8 8 3 Note 10 1 Total excluded items have a net carrying value at March 31, 2017 and December 31, 2016 of $6,301 million and $6,111 million , respectively.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring Charges [Abstract]
Restructuring and related costs	Restructuring costs for the three months ended March 31, 2017 and 2016 were as follows: (Millions of dollars) Three Months Ended March 31 2017 2016 Employee separations 1 $ 464 $ 31 Contract terminations 1 9 11 Long-lived asset impairments 1 212 82 Defined benefit plan curtailments and termination benefits 1 29 — Other 2 38 37 Total restructuring costs $ 752 $ 161 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, inventory write-downs, equipment relocation and project management, which were recognized primarily in Cost of goods sold.
Summary of separation activity	The following table summarizes the 2016 and 2017 employee separation activity: (Millions of dollars) Liability balance at December 31, 2015 $ 483 Increase in liability (separation charges) 297 Reduction in liability (payments) (633 ) Liability balance at December 31, 2016 $ 147 Increase in liability (separation charges) 464 Reduction in liability (payments) (62 ) Liability balance at March 31, 2017 $ 549

Nature of Operations, Basis o44

Nature of Operations, Basis of Presentation and Change in Accounting Principle (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Variable Interest Entity Maximum Exposure
Receivables - trade and other	$ 6,533	$ 5,981
Receivables - finance	8,684	8,522
Long-term receivables - finance	13,426	13,556
Investments in unconsolidated affiliated companies	230	249
Guarantees	1,919	1,856
Variable Interest Entity
Variable Interest Entity Maximum Exposure
Receivables - trade and other	64	55
Receivables - finance	147	174
Long-term receivables - finance	233	246
Investments in unconsolidated affiliated companies	36	31
Guarantees	216	210
Total	$ 696	$ 716

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
		Mar. 31, 2017	Mar. 31, 2016	Jan. 01, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Results of Operations
Cost of goods sold		$ 6,758	$ 6,822
Selling, general and administrative expenses		1,045	1,088
Research and development expenses		418	508
Other operating (income) expenses		1,025	397
Total operating costs		9,405	8,967
Operating profit		417	494
Other income (expense)		(5)	0
Consolidated profit before taxes		289	365
Provision (benefit) for income taxes		90	92
Profit of consolidated companies		199	273
Profit of consolidated and affiliated companies		194	272
Profit	[1]	$ 192	$ 271
Profit per common share (in dollars per share)		$ 0.33	$ 0.46
Profit per common share - diluted (in dollars per share)	[2]	$ 0.32	$ 0.46
Statement of Comprehensive Income
Profit of consolidated and affiliated companies		$ 194	$ 272
Foreign currency translation, net of tax		147	408
Total other comprehensive income (loss), net of tax		212	542
Comprehensive income		406	814
Comprehensive income attributable to stockholders		404	813
Statement of Financial Position
Noncurrent deferred and refundable income taxes		2,940			$ 2,790
Liability for postemployment benefits		9,291			9,357
Profit employed in the business		27,584			27,377
Accumulated other comprehensive income (loss)		(1,827)	(1,493)		(2,039)	$ (2,035)
Statement of Shareholders' Equity
Profit of consolidated and affiliated companies		194	272
Foreign currency translation, net of tax		147	408
Pension and other postretirement benefits, net of tax		4	108
Total stockholders' equity		13,660	15,753	$ 13,228	$ 13,213	$ 14,885
Statement of Cash Flow
Profit of consolidated and affiliated companies		194	272
Adjustments for non-cash items: Other		301	269
Other assets - net		(261)	(145)
Other liabilities - net		$ (23)	$ (152)
[1]	1 Profit attributable to common shareholders.
[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	Mar. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements
Prepaid expenses and other current assets	$ 1,777	$ 1,682
Noncurrent deferred and refundable income taxes	2,940	2,790
Other current liabilities	(1,641)	(1,635)
Other liabilities	$ (3,238)	$ (3,184)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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
Stock-based compensation expense, before tax (in dollars)	$ 49	$ 101
Assumptions used in determining the fair value of the stock-based awards
Weighted-average dividend yield (as a percent)	3.42%	3.23%
Weighted-average volatility (as a percent)	29.20%	31.10%
Volatilities, low end of range (as a percent)	22.10%	22.50%
Volatilities, high end of range (as a percent)	33.00%	33.40%
Risk-free interest rates, low end of range (as a percent)	0.81%	0.62%
Risk-free interest rates, high end of range (as a percent)	2.35%	1.73%
Weighted-average expected lives (in years)	8 years	8 years
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars)	$ 306
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)	1 year 9 months
Stock Options
Stock-based compensation awards
Shares Granted (in shares)	2,701,644	4,243,272
Weighted-Average Fair Value Per Share (in dollars per share)	$ 25.01	$ 20.64
Weighted-Average Grant Date Stock Price (in dollars per share)	95.66	74.77
RSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 95.63	$ 74.77
Shares Granted (in shares)	906,068	1,085,505
Weighted-Average Fair Value Per Share (in dollars per share)	$ 89.76	$ 68.04
PRSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 95.66	$ 74.77
Shares Granted (in shares)	437,385	614,347
Weighted-Average Fair Value Per Share (in dollars per share)	$ 86.78	$ 64.71

Derivative Financial Instrume48

Derivative Financial Instruments and Risk Management (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
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 months)	51 months
Deferred net losses, foreign currency exchange rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 11
Derivative
Commodity forward and option contracts, maximum period (in years)	5 years

Derivative Financial Instrume49

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Derivatives Fair Value
Asset Fair Value	$ 80	$ 95
Liability Fair Value	(101)	(167)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	25	23
Liability Fair Value	(74)	(159)
Financial Products
Derivatives Fair Value
Asset Fair Value	55	72
Liability Fair Value	(27)	(8)
Designated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	(35)	(87)
Designated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	14	13
Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	24	29
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(32)	(93)
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(16)	(3)
Designated Derivatives | Foreign exchange contracts | Other Liabilities | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(27)	(36)
Designated Derivatives | Interest rate contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	3	4
Designated Derivatives | Interest rate contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(1)	(1)
Undesignated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	14	15
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	4	0
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	28	39
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(15)	(30)
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(10)	(4)
Undesignated Derivatives | Commodity contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	$ 7	$ 10

Derivative Financial Instrume50

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Machinery, Energy & Transportation
Derivative notional amounts
Derivative instruments notional amount	$ 2,412	$ 2,530
Financial Products
Derivative notional amounts
Derivative instruments notional amount	$ 3,008	$ 2,626

Derivative Financial Instrume51

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Designated Derivatives | Fair Value Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ (1)	$ 3
Gains (Losses) on Borrowings	1	(4)
Designated Derivatives | Fair Value Hedges | Interest rate contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	(1)	3
Gains (Losses) on Borrowings	1	(4)
Designated Derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	15	15
Amount of Gains (Losses) Reclassified from AOCI to Earnings	(62)	(14)
Recognized in Earnings (Ineffective Portion)	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)	33	16
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	(39)	(10)
Recognized in Earnings (Ineffective Portion)	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)	(18)
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	(22)
Recognized in Earnings (Ineffective Portion)	0
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	0	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	(2)	(2)
Recognized in Earnings (Ineffective Portion)	0	0
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI (Effective Portion)	0	(1)
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings	1	(2)
Recognized in Earnings (Ineffective Portion)	0	0
Undesignated Derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	7	18
Undesignated Derivatives | Foreign exchange contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	13	22
Undesignated Derivatives | Foreign exchange contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(7)	(4)
Undesignated Derivatives | Commodity contracts | Machinery, Energy & Transportation | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 1	$ 0

Derivative Financial Instrume52

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Offsetting Assets
Gross Amount of Recognized Assets	$ 80	$ 95
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	80	95
Financial Instruments	(28)	(28)
Cash Collateral Received	0	0
Net Amount of Assets	52	67
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	25	23
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	25	23
Financial Instruments	(23)	(21)
Cash Collateral Received	0	0
Net Amount of Assets	2	2
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	55	72
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	55	72
Financial Instruments	(5)	(7)
Cash Collateral Received	0	0
Net Amount of Assets	$ 50	$ 65

Derivative Financial Instrume53

Derivative Financial Instruments and Risk Management (Details 6) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Offsetting Liabilities
Gross Amount of Recognized Liabilities	$ (101)	$ (167)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(101)	(167)
Financial Instruments	28	28
Cash Collateral Pledged	0	0
Net Amount of Liabilities	(73)	(139)
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(74)	(159)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(74)	(159)
Financial Instruments	23	21
Cash Collateral Pledged	0	0
Net Amount of Liabilities	(51)	(138)
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(27)	(8)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(27)	(8)
Financial Instruments	5	7
Cash Collateral Pledged	0	0
Net Amount of Liabilities	$ (22)	$ (1)

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 2,325	$ 2,102
Work-in-process	1,850	1,719
Finished goods	4,698	4,576
Supplies	209	217
Total inventories	$ 9,082	$ 8,614

Investments in Unconsolidated55

Investments in Unconsolidated Affiliated Companies (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Caterpillar's investments in unconsolidated affiliated companies:
Investments in equity method companies	$ 193	$ 192
Plus: Investments in cost method companies	37	57
Total investments in unconsolidated affiliated companies	$ 230	$ 249

Intangible Assets and Goodwil56

Intangible Assets and Goodwill (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Intangible assets
Finite-Lived Intangible Assets, Accumulated Amortization	$ 1,789		$ 1,717
Weighted Amortizable Life (in years)	14 years		14 years
Finite-Lived Intangible Assets, Gross	$ 4,076		$ 4,066
Net	2,287		2,349
Intangible assets	2,287		2,349
Amortization expense	79	$ 82
Remaining Nine Months of 2017	237
2,018	311
2,019	305
2,020	295
2,021	277
Thereafter	862
Customer Relationships
Intangible assets
Finite-Lived Intangible Assets, Accumulated Amortization	$ 978		$ 934
Weighted Amortizable Life (in years)	15 years		15 years
Finite-Lived Intangible Assets, Gross	$ 2,388		$ 2,378
Net	1,410		1,444
Intellectual Property
Intangible assets
Finite-Lived Intangible Assets, Accumulated Amortization	$ 729		$ 706
Weighted Amortizable Life (in years)	11 years		11 years
Finite-Lived Intangible Assets, Gross	$ 1,497		$ 1,496
Net	768		790
Other
Intangible assets
Finite-Lived Intangible Assets, Accumulated Amortization	$ 82		$ 77
Weighted Amortizable Life (in years)	13 years		14 years
Finite-Lived Intangible Assets, Gross	$ 191		$ 192
Net	$ 109		$ 115

Intangible Assets and Goodwil57

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	$ 7,217
Impairments, beginning of period	(1,197)
Net goodwill, beginning of period	6,020
Goodwill impairment charge	0	$ 0
Other adjustments	31
Goodwill, end of period	7,248
Impairments, end of period	(1,197)
Net goodwill, end of period	6,051
Construction Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	296
Impairments, beginning of period	(22)
Net goodwill, beginning of period	274
Other adjustments	3
Goodwill, end of period	299
Impairments, end of period	(22)
Net goodwill, end of period	277
Resource Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	4,110
Impairments, beginning of period	(1,175)
Net goodwill, beginning of period	2,935
Other adjustments	21
Goodwill, end of period	4,131
Impairments, end of period	(1,175)
Net goodwill, end of period	2,956
Energy & Transportation
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	2,756
Other adjustments	7
Goodwill, end of period	2,763
All Other
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	55
Other adjustments	0
Goodwill, end of period	$ 55

Investments in Debt and Equit58

Investments in Debt and Equity Securities (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Schedule of Investments in Debt and Equity Securities
Cost Basis	$ 1,294	$ 1,317
Unrealized Pretax Net Gains (Losses)	68	50
Fair Value	1,362	1,367
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	58	60
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	58	60
Corporate bonds
Schedule of Investments in Debt and Equity Securities
Cost Basis	479	489
Unrealized Pretax Net Gains (Losses)	3	3
Fair Value	482	492
Asset-backed securities
Schedule of Investments in Debt and Equity Securities
Cost Basis	88	90
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	88	90
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Cost Basis	214	225
Unrealized Pretax Net Gains (Losses)	(2)	(2)
Fair Value	212	223
Residential
Schedule of Investments in Debt and Equity Securities
Cost Basis	9	10
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	9	10
Commercial
Schedule of Investments in Debt and Equity Securities
Cost Basis	31	36
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	31	36
Large capitalization value
Schedule of Investments in Debt and Equity Securities
Cost Basis	281	280
Unrealized Pretax Net Gains (Losses)	44	32
Fair Value	325	312
Real estate investment trust (REIT)
Schedule of Investments in Debt and Equity Securities
Cost Basis	84	77
Unrealized Pretax Net Gains (Losses)	4	2
Fair Value	88	79
Smaller company growth
Schedule of Investments in Debt and Equity Securities
Cost Basis	41	41
Unrealized Pretax Net Gains (Losses)	19	15
Fair Value	$ 60	$ 56

Investments in Debt and Equit59

Investments in Debt and Equity Securities (Details 2) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Less than 12 months
Fair Value	$ 309	$ 376
Unrealized Losses	9	10
12 months or more
Fair Value	34	38
Unrealized Losses	1	3
Total
Fair Value	343	414
Unrealized Losses	10	13
Corporate bonds
Less than 12 months
Fair Value	121	131
Unrealized Losses	1	1
12 months or more
Fair Value	12	13
Unrealized Losses	0	0
Total
Fair Value	133	144
Unrealized Losses	1	1
U.S. governmental agency mortgage-backed securities
Less than 12 months
Fair Value	140	167
Unrealized Losses	2	2
12 months or more
Fair Value	12	11
Unrealized Losses	0	0
Total
Fair Value	152	178
Unrealized Losses	2	2
Large capitalization value
Less than 12 months
Fair Value	42	68
Unrealized Losses	5	6
12 months or more
Fair Value	8	11
Unrealized Losses	1	2
Total
Fair Value	50	79
Unrealized Losses	6	8
Smaller company growth
Less than 12 months
Fair Value	6	10
Unrealized Losses	1	1
12 months or more
Fair Value	2	3
Unrealized Losses	0	1
Total
Fair Value	8	13
Unrealized Losses	$ 1	$ 2

Investments in Debt and Equit60

Investments in Debt and Equity Securities (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost Basis	$ 198
Due after one year through five years, Cost Basis	386
Due after five through ten years, Cost Basis	24
Due after ten years, Cost Basis	26
Due in one year or less, Fair Value	200
Due after one year through five years, Fair Value	387
Due after five years through ten years, Fair Value	24
Due after ten years, Fair Value	26
Cost Basis	888
Fair Value	889
Schedule of Investments in Debt and Equity Securities
Cost Basis	1,294		$ 1,317
Available-for-sale securities, Fair Value	1,362		1,367
Available-for-sale Securities, Proceeds, Gains and Losses
Proceeds from the sale of available-for-sale securities	89	$ 49
Gross gains from the sale of available-for-sale securities	1	1
Gross losses from the sale of available-for-sale securities	1	$ 1
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Cost Basis	214		225
Available-for-sale securities, Fair Value	212		223
Residential
Schedule of Investments in Debt and Equity Securities
Cost Basis	9		10
Available-for-sale securities, Fair Value	9		10
Commercial
Schedule of Investments in Debt and Equity Securities
Cost Basis	31		36
Available-for-sale securities, Fair Value	$ 31		$ 36

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Pension and Other Postretirement Benefits
Pension and other postretirement benefit contributions
Contributions to pension and other postretirement benefit plans	$ 106	$ 115
Expected full year contributions to pension and other postretirement benefit plans during the year	610
U.S. Pension Benefits
Components of net periodic benefit cost:
Service cost	29	30
Interest cost	131	129
Expected return on plan assets	(184)	(189)
Amortization of prior service cost / (credit)	0	0
Net periodic benefit cost (benefit), excluding curtailments, settlements and termination benefits	(24)	(30)
Curtailments, settlements and termination benefits	9	0
Total cost (benefit) included in operating profit	$ (15)	$ (30)
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost	4.20%	4.50%
Discount rate used to measure interest cost	3.30%	3.40%
Expected return on plan assets (as a percent)	6.70%	6.90%
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	$ 23
Interest cost	25	30
Expected return on plan assets	(57)	(58)
Amortization of prior service cost / (credit)	0	0
Net periodic benefit cost (benefit), excluding curtailments, settlements and termination benefits	(9)	(5)
Curtailments, settlements and termination benefits	20	0
Total cost (benefit) included in operating profit	$ 11	$ (5)
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost	2.30%	2.90%
Discount rate used to measure interest cost	2.30%	2.80%
Expected return on plan assets (as a percent)	5.90%	6.10%
Rate of compensation increase (as a percent)	4.00%	3.50%
Other Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$ 19	$ 20
Interest cost	33	33
Expected return on plan assets	(9)	(11)
Amortization of prior service cost / (credit)	(5)	(15)
Net periodic benefit cost (benefit), excluding curtailments, settlements and termination benefits	38	27
Curtailments, settlements and termination benefits	0	(2)
Total cost (benefit) included in operating profit	$ 38	$ 25
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost	3.90%	4.40%
Discount rate used to measure interest cost	3.30%	3.30%
Expected return on plan assets (as a percent)	7.50%	7.50%
Rate of compensation increase (as a percent)	4.00%	4.00%

Postretirement Benefits (Deta62

Postretirement Benefits (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined contribution plans
Costs related to defined contribution plans	$ 96	$ 103
U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	80	85
Non-U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	$ 16	$ 18

Guarantees and Product Warran63

Guarantees and Product Warranty (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016	Feb. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 8	$ 8
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,919	1,856
Special-Purpose Corporation assets in Consolidated Statement of Financial Position	1,153	1,088
Special-Purpose Corporation liabilities in Consolidated Statement of Financial Position	1,152	1,087
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,436	1,384
Customer loan guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	42	51
Supplier consortium performance guarantee
Guarantor Obligations
Guarantees, maximum potential amount of future payments	282	278
Third party logistics business lease guarantees
Guarantor Obligations
Percentage of equity interest sold			35.00%
Guarantees, maximum potential amount of future payments	82	87
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 77	$ 56

Guarantees and Product Warran64

Guarantees and Product Warranty (Details 2) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,258	$ 1,354
Reduction in liability (payments)	(206)	(909)
Increase in liability (new warranties)	220	813
Warranty liability, ending balance	$ 1,272	$ 1,258

Profit Per Share (Details)

Profit Per Share (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Jan. 31, 2014
Earnings Per Share [Abstract]
Profit for the period (A) (in dollars)	[1]	$ 192	$ 271
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)		587,500,000	582,800,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)		5,700,000	4,900,000
Average common shares outstanding for fully diluted computation (C) (in shares)	[2]	593,200,000	587,700,000
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)		$ 0.33	$ 0.46
Assuming full dilution (A/C) (in dollars per share)	[2]	$ 0.32	$ 0.46
Shares outstanding as of March 31 (in shares)		589,100,000	583,900,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)		12,644,654	29,093,289
Common stock repurchase
Stock repurchase program, authorized amount				$ 10,000
Common shares repurchased (in shares)		0	0
Stock repurchase program, amount of authorized repurchase spent to date		$ 4,500
[1]	1 Profit attributable to common shareholders.
[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
	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	$ (2,039)	$ (2,035)
Other comprehensive income (loss) before reclassifications	171	541
Amounts reclassified from accumulated other comprehensive (income) loss	41	1
Other comprehensive income (loss)	212	542
Accumulated other comprehensive income (loss), end of period	(1,827)	(1,493)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	(1,970)	(1,953)
Other comprehensive income (loss) before reclassifications	145	408
Amounts reclassified from accumulated other comprehensive (income) loss	2	0
Other comprehensive income (loss)	147	408
Accumulated other comprehensive income (loss), end of period	(1,823)	(1,545)
Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	14	(69)
Other comprehensive income (loss) before reclassifications	8	118
Amounts reclassified from accumulated other comprehensive (income) loss	(4)	(10)
Other comprehensive income (loss)	4	108
Accumulated other comprehensive income (loss), end of period	18	39
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	(115)	(50)
Other comprehensive income (loss) before reclassifications	10	9
Amounts reclassified from accumulated other comprehensive (income) loss	40	9
Other comprehensive income (loss)	50	18
Accumulated other comprehensive income (loss), end of period	(65)	(32)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period	32	37
Other comprehensive income (loss) before reclassifications	8	6
Amounts reclassified from accumulated other comprehensive (income) loss	3	2
Other comprehensive income (loss)	11	8
Accumulated other comprehensive income (loss), end of period	$ 43	$ 45

Accumulated Other Comprehensi67

Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)		$ (5)	$ 0
Interest expense excluding Financial Products		(123)	(129)
Interest expense of Financial Products		(159)	(152)
Reclassifications before tax		289	365
Tax (provision) benefit		(90)	(92)
Reclassifications net of tax	[1]	192	271
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications net of tax		(41)	(1)
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)		(2)	0
Tax (provision) benefit		0	0
Reclassifications net of tax		(2)	0
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)		5	15
Tax (provision) benefit		(1)	(5)
Reclassifications net of tax		4	10
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications before tax		(62)	(14)
Tax (provision) benefit		22	5
Reclassifications net of tax		(40)	(9)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)		(61)	(10)
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		(2)	(2)
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)
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)		(4)	(3)
Tax (provision) benefit		1	1
Reclassifications net of tax		$ (3)	$ (2)
[1]	1 Profit attributable to common shareholders.

Environmental and legal matte68

Environmental and legal matters Environmental and legal matters (Details)	Mar. 20, 2014	Mar. 31, 2017
Loss Contingencies
Number of facilities served search and seizure warrants		3
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	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Estimated annual effective tax rate (as a percent)	32.00%	25.00%
Settlement of stock-based compensation awards, tax benefit	$ 17
Prior year tax adjustment expense (benefit)	15
Tax Year Prior Years
Income Tax Contingency
Income tax examination, proposed liability increase/(decrease)	$ 2,000

Segment Information (Details)

Segment Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)group_presidentssegmentsdealers	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
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	$ 9,822	$ 9,461
Depreciation and amortization	710	740
Consolidated profit before taxes	289	365
Segment assets	77,549		$ 74,704
Capital expenditures	$ 509	740
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	$ 37	38
Depreciation and amortization	54	52
Consolidated profit before taxes	(13)	(7)
Segment assets	1,355		1,381
Capital expenditures	20	16
Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	$ 10,773	10,224
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	$ 9,877	9,513
Depreciation and amortization	595	639
Consolidated profit before taxes	1,528	922
Segment assets	55,480		55,517
Capital expenditures	404	507
Intersegment Eliminations
Reportable Segments
Sales and revenues	896	711
Machinery, Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	10,013	9,481
Machinery, Energy & Transportation | Reportable Segments
Reportable Segments
Sales and revenues	9,117	8,770
Depreciation and amortization	387	434
Consolidated profit before taxes	1,345	754
Segment assets	19,113		20,293
Capital expenditures	158	210
Machinery, Energy & Transportation | Intersegment Eliminations
Reportable Segments
Sales and revenues	896	711
Construction Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	4,116	4,051
Construction Industries | Reportable Segments
Reportable Segments
Sales and revenues	4,091	4,043
Depreciation and amortization	102	113
Consolidated profit before taxes	635	440
Segment assets	4,826		5,367
Capital expenditures	21	28
Construction Industries | Intersegment Eliminations
Reportable Segments
Sales and revenues	25	8
Resource Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	1,761	1,520
Resource Industries | Reportable Segments
Reportable Segments
Sales and revenues	1,670	1,449
Depreciation and amortization	127	155
Consolidated profit before taxes	158	(96)
Segment assets	6,797		7,135
Capital expenditures	21	35
Resource Industries | Intersegment Eliminations
Reportable Segments
Sales and revenues	91	71
Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	4,136	3,910
Energy & Transportation | Reportable Segments
Reportable Segments
Sales and revenues	3,356	3,278
Depreciation and amortization	158	166
Consolidated profit before taxes	552	410
Segment assets	7,490		7,791
Capital expenditures	116	147
Energy & Transportation | Intersegment Eliminations
Reportable Segments
Sales and revenues	780	632
Financial Products Segment | Reportable Segments Including Intersegment Eliminations
Reportable Segments
Sales and revenues	760	743
Financial Products Segment | Reportable Segments
Reportable Segments
Sales and revenues	760	743
Depreciation and amortization	208	205
Consolidated profit before taxes	183	168
Segment assets	36,367		$ 35,224
Capital expenditures	246	297
Financial Products Segment | Intersegment Eliminations
Reportable Segments
Sales and revenues	$ 0	$ 0

Segment Information (Details 2)

Segment Information (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of Sales and revenues
Sales and revenues	$ 9,822	$ 9,461
Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	9,877	9,513
All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	37	38
Other
Reconciliation of Sales and revenues
Sales and revenues	(92)	(90)
Consolidating Adjustments
Reconciliation of Sales and revenues
Sales and revenues	(85)	(78)
Consolidating Adjustments | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	0	0
Consolidating Adjustments | Other
Reconciliation of Sales and revenues
Sales and revenues	(85)	(78)
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	9,117	8,770
Machinery, Energy & Transportation | Business
Reconciliation of Sales and revenues
Sales and revenues	9,130	8,780
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	9,117	8,770
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	37	38
Machinery, Energy & Transportation | Business | Other
Reconciliation of Sales and revenues
Sales and revenues	(24)	(28)
Financial Products | Business
Reconciliation of Sales and revenues
Sales and revenues	777	759
Financial Products | Business | Reportable Segments
Reconciliation of Sales and revenues
Sales and revenues	760	743
Financial Products | Business | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues	0	0
Financial Products | Business | Other
Reconciliation of Sales and revenues
Sales and revenues	$ 17	$ 16

Segment Information (Details 3)

Segment Information (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 289	$ 365
Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	1,528	922
All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(13)	(7)
Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	7	25
Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(115)	(159)
Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(38)	32
Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(752)	(161)
Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(68)	(3)
Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	41	55
Stock-Based Compensation Expense [Member]
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(49)	(101)
Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(130)	(135)
Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(39)	(40)
Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(55)	(56)
Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(28)	(7)
Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	1,515	915
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	1,345	754
Machinery, Energy & Transportation | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	105	198
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	1,345	754
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(13)	(7)
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	7	25
Machinery, Energy & Transportation | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(115)	(159)
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(38)	32
Machinery, Energy & Transportation | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(751)	(159)
Machinery, Energy & Transportation | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(68)	(3)
Machinery, Energy & Transportation | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	41	55
Machinery, Energy & Transportation | Business | Stock-Based Compensation Expense [Member]
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(47)	(97)
Machinery, Energy & Transportation | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(130)	(135)
Machinery, Energy & Transportation | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(39)	(40)
Machinery, Energy & Transportation | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(55)	(56)
Machinery, Energy & Transportation | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(32)	(12)
Financial Products | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	184	167
Financial Products | Business | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	183	168
Financial Products | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(1)	(2)
Financial Products | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Stock-Based Compensation Expense [Member]
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(2)	(4)
Financial Products | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0
Financial Products | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 4	$ 5

Segment Information (Details 4)

Segment Information (Details 4) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Reconciliation of restructuring
Consolidated profit before taxes	$ 289	$ 365
Restructuring costs	(752)	(161)	$ (1,019)
Reportable Segments
Reconciliation of restructuring
Consolidated profit before taxes	1,528	922
Reportable Segments | Construction Industries
Reconciliation of restructuring
Consolidated profit before taxes	635	440
Reportable Segments | Resource Industries
Reconciliation of restructuring
Consolidated profit before taxes	158	(96)
Reportable Segments | Energy & Transportation
Reconciliation of restructuring
Consolidated profit before taxes	552	410
Reportable Segments | Financial Products Segment
Reconciliation of restructuring
Consolidated profit before taxes	183	168
All Other operating segments
Reconciliation of restructuring
Consolidated profit before taxes	(13)	(7)
Business
Reconciliation of restructuring
Consolidated profit before taxes	1,515	915
Restructuring costs	(747)	(154)
Consolidated profit before taxes with restructuring costs	768	761
Business | Reportable Segments | Construction Industries
Reconciliation of restructuring
Consolidated profit before taxes	635	440
Restructuring costs	(667)	(22)
Consolidated profit before taxes with restructuring costs	(32)	418
Business | Reportable Segments | Resource Industries
Reconciliation of restructuring
Consolidated profit before taxes	158	(96)
Restructuring costs	(59)	(25)
Consolidated profit before taxes with restructuring costs	99	(121)
Business | Reportable Segments | Energy & Transportation
Reconciliation of restructuring
Consolidated profit before taxes	552	410
Restructuring costs	(14)	(100)
Consolidated profit before taxes with restructuring costs	538	310
Business | Reportable Segments | Financial Products Segment
Reconciliation of restructuring
Consolidated profit before taxes	183	168
Restructuring costs	(1)	(2)
Consolidated profit before taxes with restructuring costs	182	166
Business | All Other operating segments | All Other
Reconciliation of restructuring
Consolidated profit before taxes	(13)	(7)
Restructuring costs	(6)	(5)
Consolidated profit before taxes with restructuring costs	$ (19)	$ (12)

Segment Information (Details 5)

Segment Information (Details 5) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Reconciliation of Assets
Total assets	$ 77,549	$ 74,704
Reportable Segments
Reconciliation of Assets
Total assets	55,480	55,517
All Other operating segments
Reconciliation of Assets
Total assets	1,355	1,381
Cash and Short Term Investments
Reconciliation of Assets
Total assets	8,223	5,257
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	2,846	2,701
Goodwill and Intangible Assets
Reconciliation of Assets
Total assets	4,001	3,883
Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Total assets	1,885	1,645
Operating Lease Methodology Difference
Reconciliation of Assets
Total assets	(179)	(186)
Inventory Methodology Differences
Reconciliation of Assets
Total assets	(2,320)	(2,373)
Intercompany Loan Included in Financial Products' Assets
Reconciliation of Assets
Total assets	(1,500)
Liabilities Included in Segment Assets
Reconciliation of Assets
Total assets	8,312	7,400
Other
Reconciliation of Assets
Total assets	(554)	(521)
Consolidating Adjustments
Reconciliation of Assets
Total assets	(8,003)	(6,354)
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	(1,671)	(1,713)
Consolidating Adjustments | Investment in Financial Products
Reconciliation of Assets
Total assets	(3,863)	(3,638)
Consolidating Adjustments | Deferred Income Taxes
Reconciliation of Assets
Total assets	(920)	(947)
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	(1,500)
Consolidating Adjustments | Liabilities Included in Segment Assets
Reconciliation of Assets
Total assets	0	0
Consolidating Adjustments | Other
Reconciliation of Assets
Total assets	(49)	(56)
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Assets
Total assets	19,113	20,293
Machinery, Energy & Transportation | Business
Reconciliation of Assets
Total assets	49,206	45,863
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Assets
Total assets	19,113	20,293
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Assets
Total assets	1,355	1,381
Machinery, Energy & Transportation | Business | Cash and Short Term Investments
Reconciliation of Assets
Total assets	8,223	5,257
Machinery, Energy & Transportation | Business | Intercompany Receivables
Reconciliation of Assets
Total assets	1,671	1,713
Machinery, Energy & Transportation | Business | Investment in Financial Products
Reconciliation of Assets
Total assets	3,863	3,638
Machinery, Energy & Transportation | Business | Deferred Income Taxes
Reconciliation of Assets
Total assets	3,766	3,648
Machinery, Energy & Transportation | Business | Goodwill and Intangible Assets
Reconciliation of Assets
Total assets	4,001	3,883
Machinery, Energy & Transportation | Business | Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Total assets	1,885	1,645
Machinery, Energy & Transportation | Business | Operating Lease Methodology Difference
Reconciliation of Assets
Total assets	(179)	(186)
Machinery, Energy & Transportation | Business | Inventory Methodology Differences
Reconciliation of Assets
Total assets	(2,320)	(2,373)
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	8,312	7,400
Machinery, Energy & Transportation | Business | Other
Reconciliation of Assets
Total assets	(484)	(436)
Financial Products | Business
Reconciliation of Assets
Total assets	36,346	35,195
Financial Products | Business | Reportable Segments
Reconciliation of Assets
Total assets	36,367	35,224
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	$ (21)	$ (29)

Segment Information (Details 6)

Segment Information (Details 6) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of Depreciation and amortization
Total depreciation and amortization	$ 710	$ 740
Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	595	639
All Other operating segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	54	52
Cost Centers
Reconciliation of Depreciation and amortization
Total depreciation and amortization	35	40
Other
Reconciliation of Depreciation and amortization
Total depreciation and amortization	26	9
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	387	434
Machinery, Energy & Transportation | Business
Reconciliation of Depreciation and amortization
Total depreciation and amortization	491	525
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	387	434
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	54	52
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Depreciation and amortization
Total depreciation and amortization	35	40
Machinery, Energy & Transportation | Business | Other
Reconciliation of Depreciation and amortization
Total depreciation and amortization	15	(1)
Financial Products | Business
Reconciliation of Depreciation and amortization
Total depreciation and amortization	219	215
Financial Products | Business | Reportable Segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	208	205
Financial Products | Business | All Other operating segments
Reconciliation of Depreciation and amortization
Total depreciation and amortization	0	0
Financial Products | Business | Cost Centers
Reconciliation of Depreciation and amortization
Total depreciation and amortization	0	0
Financial Products | Business | Other
Reconciliation of Depreciation and amortization
Total depreciation and amortization	$ 11	$ 10

Segment Information (Details 7)

Segment Information (Details 7) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of Capital expenditures
Total capital expenditures	$ 509	$ 740
Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	404	507
All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	20	16
Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	9	12
Timing
Reconciliation of Capital expenditures
Total capital expenditures	88	217
Other
Reconciliation of Capital expenditures
Total capital expenditures	(12)	(12)
Consolidating Adjustments
Reconciliation of Capital expenditures
Total capital expenditures	(3)	(9)
Consolidating Adjustments | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0
Consolidating Adjustments | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0
Consolidating Adjustments | Timing
Reconciliation of Capital expenditures
Total capital expenditures	0	0
Consolidating Adjustments | Other
Reconciliation of Capital expenditures
Total capital expenditures	(3)	(9)
Machinery, Energy & Transportation | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	158	210
Machinery, Energy & Transportation | Business
Reconciliation of Capital expenditures
Total capital expenditures	209	379
Machinery, Energy & Transportation | Business | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	158	210
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	20	16
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	9	12
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures	88	217
Machinery, Energy & Transportation | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	(66)	(76)
Financial Products | Business
Reconciliation of Capital expenditures
Total capital expenditures	303	370
Financial Products | Business | Reportable Segments
Reconciliation of Capital expenditures
Total capital expenditures	246	297
Financial Products | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0
Financial Products | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0
Financial Products | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures	0	0
Financial Products | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	$ 57	$ 73

Cat Financial Financing Activ77

Cat Financial Financing Activities (Details) - Finance Receivables - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Allowance for Credit Loss Activity
Balance at beginning of year	$ 341	$ 336
Receivables written off	(24)	(158)
Recoveries on receivables previously written off	9	35
Provision for credit losses	14	133
Other	3	(5)
Balance at end of period	343	341
Allowance for Credit Losses
Individually evaluated for impairment			$ 98	$ 85
Collectively evaluated for impairment			245	256
Ending Balance	341	336	343	341
Recorded Investment in Finance Receivables
Individually evaluated for impairment			858	786
Collectively evaluated for impairment			21,564	21,611
Ending balance-recorded investment in finance receivables			22,422	22,397
Customer
Allowance for Credit Loss Activity
Balance at beginning of year	331	327
Receivables written off	(24)	(158)
Recoveries on receivables previously written off	9	35
Provision for credit losses	12	132
Other	3	(5)
Balance at end of period	331	331
Allowance for Credit Losses
Individually evaluated for impairment			98	85
Collectively evaluated for impairment			233	246
Ending Balance	331	327	331	331
Recorded Investment in Finance Receivables
Individually evaluated for impairment			858	786
Collectively evaluated for impairment			18,027	18,236
Ending balance-recorded investment in finance receivables			18,885	19,022
Dealer
Allowance for Credit Loss Activity
Balance at beginning of year	10	9
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	2	1
Other	0	0
Balance at end of period	12	10
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			12	10
Ending Balance	$ 10	$ 9	12	10
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			3,537	3,375
Ending balance-recorded investment in finance receivables			$ 3,537	$ 3,375

Cat Financial Financing Activ78

Cat Financial Financing Activities (Details 2) - Finance Receivables - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	$ 768	$ 679
Current	21,654	21,718
Total Finance Receivables	22,422	22,397
91+ Still Accruing	28	18
31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	210	137
61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	102	79
91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	456	463
Customer
Aging related to loans and finance leases
Total Finance Receivables	18,885	19,022
Customer | North America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	134	125
Current	7,837	7,938
Total Finance Receivables	7,971	8,063
91+ Still Accruing	7	5
Customer | North America | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	56	50
Customer | North America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	17	16
Customer | North America | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	61	59
Customer | Europe
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	87	67
Current	2,361	2,388
Total Finance Receivables	2,448	2,455
91+ Still Accruing	10	6
Customer | Europe | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	23	16
Customer | Europe | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	18	12
Customer | Europe | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	46	39
Customer | Asia Pacific
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	44	39
Current	1,529	1,435
Total Finance Receivables	1,573	1,474
91+ Still Accruing	5	4
Customer | Asia Pacific | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	21	17
Customer | Asia Pacific | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	8	7
Customer | Asia Pacific | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	15	15
Customer | Mining
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	71	68
Current	1,818	1,756
Total Finance Receivables	1,889	1,824
91+ Still Accruing	0	2
Customer | Mining | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	13	3
Customer | Mining | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	5	2
Customer | Mining | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	53	63
Customer | Latin America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	329	287
Current	1,767	1,808
Total Finance Receivables	2,096	2,095
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	67	40
Customer | Latin America | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	47	33
Customer | Latin America | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	215	214
Customer | Caterpillar Power Finance
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	103	93
Current	2,805	3,018
Total Finance Receivables	2,908	3,111
91+ Still Accruing	6	1
Customer | Caterpillar Power Finance | 31 to 60 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	30	11
Customer | Caterpillar Power Finance | 61 to 90 Days Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	7	9
Customer | Caterpillar Power Finance | 91 Days of More Past Due
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	66	73
Dealer
Aging related to loans and finance leases
Total Finance Receivables	3,537	3,375
Dealer | North America
Aging related to loans and finance leases
Financing Receivable, Recorded Investment, Past Due	0	0
Current	2,086	1,916
Total Finance Receivables	2,086	1,916
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	153	161
Total Finance Receivables	153	161
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	567	541
Total Finance Receivables	567	541
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	3	3
Total Finance Receivables	3	3
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	726	752
Total Finance Receivables	726	752
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	2
Total Finance Receivables	2	2
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
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Dealer
Impaired finance receivables
Recorded Investment, Total	$ 0		$ 0
Finance Receivables | Customer
Impaired finance receivables
Recorded Investment With No Allowance Recorded	578		530
Unpaid Principal Balance With No Allowance Recorded	575		528
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	280		256
Unpaid Principal Balance With An Allowance Recorded	288		265
Related Allowance With An Allowance Recorded	98		85
Recorded Investment, Total	858		786
Unpaid Principal Balance, Total	863		793
Related Allowance, Total	98		85
Average Recorded Investment With No Allowance Recorded	535	$ 417
Interest Income Recognized With No Allowance Recorded	5	4
Average Recorded Investment With An Allowance Recorded	271	180
Interest Income Recognized With An Allowance Recorded	3	2
Average Recorded Investment, Total	806	597
Interest Income Recognized, Total	8	6
Finance Receivables | Customer | North America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	11		10
Unpaid Principal Balance With No Allowance Recorded	11		10
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	56		61
Unpaid Principal Balance With An Allowance Recorded	54		60
Related Allowance With An Allowance Recorded	22		22
Recorded Investment, Total	67		71
Unpaid Principal Balance, Total	65		70
Related Allowance, Total	22		22
Average Recorded Investment With No Allowance Recorded	10	14
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	61	14
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	71	28
Interest Income Recognized, Total	0	0
Finance Receivables | Customer | Europe
Impaired finance receivables
Recorded Investment With No Allowance Recorded	48		49
Unpaid Principal Balance With No Allowance Recorded	47		48
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	4		7
Unpaid Principal Balance With An Allowance Recorded	4		7
Related Allowance With An Allowance Recorded	2		3
Recorded Investment, Total	52		56
Unpaid Principal Balance, Total	51		55
Related Allowance, Total	2		3
Average Recorded Investment With No Allowance Recorded	49	40
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	6	12
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	55	52
Interest Income Recognized, Total	0	0
Finance Receivables | Customer | Asia Pacific
Impaired finance receivables
Recorded Investment With No Allowance Recorded	30		3
Unpaid Principal Balance With No Allowance Recorded	29		2
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	31		50
Unpaid Principal Balance With An Allowance Recorded	31		50
Related Allowance With An Allowance Recorded	4		8
Recorded Investment, Total	61		53
Unpaid Principal Balance, Total	60		52
Related Allowance, Total	4		8
Average Recorded Investment With No Allowance Recorded	9	2
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	45	33
Interest Income Recognized With An Allowance Recorded	1	1
Average Recorded Investment, Total	54	35
Interest Income Recognized, Total	1	1
Finance Receivables | Customer | Mining
Impaired finance receivables
Recorded Investment With No Allowance Recorded	133		129
Unpaid Principal Balance With No Allowance Recorded	132		129
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	0		0
Unpaid Principal Balance With An Allowance Recorded	0		0
Related Allowance With An Allowance Recorded	0		0
Recorded Investment, Total	133		129
Unpaid Principal Balance, Total	132		129
Related Allowance, Total	0		0
Average Recorded Investment With No Allowance Recorded	128	81
Interest Income Recognized With No Allowance Recorded	1	1
Average Recorded Investment With An Allowance Recorded	0	11
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	128	92
Interest Income Recognized, Total	1	1
Finance Receivables | Customer | Latin America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	67		68
Unpaid Principal Balance With No Allowance Recorded	67		68
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	110		93
Unpaid Principal Balance With An Allowance Recorded	121		104
Related Allowance With An Allowance Recorded	39		34
Recorded Investment, Total	177		161
Unpaid Principal Balance, Total	188		172
Related Allowance, Total	39		34
Average Recorded Investment With No Allowance Recorded	72	27
Interest Income Recognized With No Allowance Recorded	1	0
Average Recorded Investment With An Allowance Recorded	96	51
Interest Income Recognized With An Allowance Recorded	1	1
Average Recorded Investment, Total	168	78
Interest Income Recognized, Total	2	1
Finance Receivables | Customer | Caterpillar Power Finance
Impaired finance receivables
Recorded Investment With No Allowance Recorded	289		271
Unpaid Principal Balance With No Allowance Recorded	289		271
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	79		45
Unpaid Principal Balance With An Allowance Recorded	78		44
Related Allowance With An Allowance Recorded	31		18
Recorded Investment, Total	368		316
Unpaid Principal Balance, Total	367		315
Related Allowance, Total	31		$ 18
Average Recorded Investment With No Allowance Recorded	267	253
Interest Income Recognized With No Allowance Recorded	3	3
Average Recorded Investment With An Allowance Recorded	63	59
Interest Income Recognized With An Allowance Recorded	1	0
Average Recorded Investment, Total	330	312
Interest Income Recognized, Total	$ 4	$ 3

Cat Financial Financing Activ80

Cat Financial Financing Activities (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
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	552	579
Finance Receivables | Customer | North America
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	66	66
Finance Receivables | Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	37	35
Finance Receivables | Customer | Asia Pacific
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	15	12
Finance Receivables | Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	56	69
Finance Receivables | Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	308	307
Finance Receivables | Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 70	$ 90

Cat Financial Financing Activ81

Cat Financial Financing Activities (Details 5) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)Contracts	Mar. 31, 2016USD ($)Contracts	Dec. 31, 2016USD ($)
Customer
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	30	21
Pre-TDR Outstanding Recorded Investment	$ 124	$ 52
Post-TDR Outstanding Recorded Investment	$ 113	$ 40
Customer | North America
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	9	11
Pre-TDR Outstanding Recorded Investment	$ 1	$ 10
Post-TDR Outstanding Recorded Investment	$ 1	$ 10
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	1	0
Pre-TDR Outstanding Recorded Investment	$ 0	$ 0
Post-TDR Outstanding Recorded Investment	$ 0	$ 0
Customer | Asia Pacific
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	5	4
Pre-TDR Outstanding Recorded Investment	$ 39	$ 3
Post-TDR Outstanding Recorded Investment	$ 30	$ 3
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	2	0
Pre-TDR Outstanding Recorded Investment	$ 57	$ 0
Post-TDR Outstanding Recorded Investment	$ 56	$ 0
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	7	2
Pre-TDR Outstanding Recorded Investment	$ 2	$ 0
Post-TDR Outstanding Recorded Investment	$ 2	$ 0
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	6	4
Pre-TDR Outstanding Recorded Investment	$ 25	$ 39
Post-TDR Outstanding Recorded Investment	$ 24	$ 27
Dealer
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	0	0
Finance Receivables | Customer
Finance receivables modified as TDRs
Remaining Commitments	$ 0		$ 11

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Assets
Investments in debt and equity securities	$ 1,362	$ 1,367
Recurring basis
Assets
Investments in debt and equity securities	1,274	1,288
Total Assets	1,362	1,367
Liabilities
Derivative Liabilities, at Fair Value, Net	21	72
Total Liabilities	21	72
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	58	60
Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Investments in debt and equity securities	58	60
Corporate bonds
Assets
Investments in debt and equity securities	482	492
Corporate bonds | Recurring basis
Assets
Investments in debt and equity securities	482	492
Asset-backed securities
Assets
Investments in debt and equity securities	88	90
Asset-backed securities | Recurring basis
Assets
Investments in debt and equity securities	88	90
U.S. governmental agency | Recurring basis
Assets
Investments in debt and equity securities	212	223
Residential
Assets
Investments in debt and equity securities	9	10
Residential | Recurring basis
Assets
Investments in debt and equity securities	9	10
Commercial
Assets
Investments in debt and equity securities	31	36
Commercial | Recurring basis
Assets
Investments in debt and equity securities	31	36
Large capitalization value
Assets
Investments in debt and equity securities	325	312
Large capitalization value | Recurring basis
Assets
Investments in debt and equity securities	325	312
Smaller company growth
Assets
Investments in debt and equity securities	60	56
Smaller company growth | Recurring basis
Assets
Investments in debt and equity securities	60	56
REIT
Assets
Investments in debt and equity securities	88	79
REIT | Recurring basis
Assets
Investments in debt and equity securities	88	79
Level 1 | Recurring basis
Assets
Investments in debt and equity securities	394	377
Total Assets	394	377
Liabilities
Derivative Liabilities, at Fair Value, Net	0	0
Total Liabilities	0	0
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	325	312
Level 1 | Smaller company growth | Recurring basis
Assets
Investments in debt and equity securities	60	56
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	880	911
Total Assets	880	911
Liabilities
Derivative Liabilities, at Fair Value, Net	21	72
Total Liabilities	21	72
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	58	60
Level 2 | Corporate bonds | Recurring basis
Assets
Investments in debt and equity securities	482	492
Level 2 | Asset-backed securities | Recurring basis
Assets
Investments in debt and equity securities	88	90
Level 2 | U.S. governmental agency | Recurring basis
Assets
Investments in debt and equity securities	212	223
Level 2 | Residential | Recurring basis
Assets
Investments in debt and equity securities	9	10
Level 2 | Commercial | Recurring basis
Assets
Investments in debt and equity securities	31	36
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
Total Assets	88	79
Liabilities
Derivative Liabilities, at Fair Value, Net	0	0
Total Liabilities	0	0
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	$ 88	$ 79

Fair Value Disclosures (Detai83

Fair Value Disclosures (Details 2) - Level 3 - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
REIT | Recurring basis
Roll-forward of assets measured at fair value using Level 3 inputs
Balance at beginning of period	$ 79
Purchases of securities	7
Sale of securities	0
Gains (losses) included in Accumulated other comprehensive income (loss)	2
Balance at end of period	88
Financial Products | Nonrecurring basis
Fair value of impaired loans
Impaired loans	$ 127	$ 137

Fair Value Disclosures (Detai84

Fair Value Disclosures (Details 3) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and short-term investments	$ 9,472	$ 7,168	$ 5,886	$ 6,460
Investments in debt and equity securities	1,362	1,367
Carrying Amount
Assets
Cash and short-term investments	9,472	7,168
Restricted cash and short-term investments	63	31
Investments in debt and equity securities	1,362	1,367
Finance receivables-net (excluding finance leases)	16,002	16,172
Wholesale inventory receivables-net (excluding finance leases)	1,424	1,500
Interest rate contracts-net	2	3
Commodity contracts-net	7	10
Liabilities
Short-term borrowings	7,821	7,303
Foreign currency contracts-net	30	85
Guarantees	8	8
Carrying Amount | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	9,309	8,943
Carrying Amount | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	21,152	20,537
Carrying amount of assets excluded from measurement at fair value
Assets
Finance leases	6,301	6,111
Level 1 | Fair Value
Assets
Cash and short-term investments	9,472	7,168
Restricted cash and short-term investments	63	31
Liabilities
Short-term borrowings	7,821	7,303
Level 1, 2 & 3 | Fair Value
Assets
Investments in debt and equity securities	1,362	1,367
Level 2 | Fair Value
Assets
Interest rate contracts-net	2	3
Commodity contracts-net	7	10
Liabilities
Foreign currency contracts-net	30	85
Level 2 | Fair Value | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	10,771	10,348
Level 2 | Fair Value | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	21,341	20,724
Level 3 | Fair Value
Assets
Finance receivables-net (excluding finance leases)	15,983	16,056
Wholesale inventory receivables-net (excluding finance leases)	1,391	1,464
Liabilities
Guarantees	$ 8	$ 8

Restructuring Costs (Details)

Restructuring Costs (Details) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended		19 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2017USD ($)
Restructuring and Related Cost [Abstract]
Restructuring costs		$ 752	$ 161	$ 1,019
Employee Separation Charges [Roll Forward]
Liability balance at beginning of period		147	483	483
Increase in liability (separation charges)		464		297
Reduction in liability (payments)		(62)		(633)
Liability balance at end of period	$ 549	549		147	$ 483	$ 549
September 2015 announcement
Restructuring and Related Cost [Abstract]
Restructuring costs		705		281	$ 569	1,555
Estimated restructuring costs	265	265				265
Discontinue production on-highway vocational trucks
Restructuring and Related Cost [Abstract]
Restructuring costs				104
Estimated restructuring costs	6	6				6
Q3 2016 announcement
Restructuring and Related Cost [Abstract]
Restructuring costs		5		$ 369
Estimated restructuring costs	12	12				12
Gosselies closure announcement
Restructuring and Related Cost [Abstract]
Restructuring costs		671
Estimated restructuring costs	$ 750	750				$ 750
Positions eliminated	2,000
Employee separations | Gosselies closure announcement
Restructuring and Related Cost [Abstract]
Restructuring costs		439
Employee separations | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs		464	31
Contract terminations | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs		9	11
Long-lived asset impairments | Gosselies closure announcement
Restructuring and Related Cost [Abstract]
Restructuring costs		199
Long-lived asset impairments | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs		212	82
Defined benefit retirement plan curtailments and termination benefits | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs		29	0
Other | Gosselies closure announcement
Restructuring and Related Cost [Abstract]
Restructuring costs		33
Other | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs		$ 38	$ 37